Florida Senate - 2014                          SENATOR AMENDMENT
       Bill No. CS/CS/SB 1114, 1st Eng.
       
       
       
       
       
       
                                Ì860600hÎ860600                         
       
                              LEGISLATIVE ACTION                        
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       Senator Bradley moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 1550 and 1551
    4  insert:
    5         Section 13. Subsection (2) of section 175.021, Florida
    6  Statutes, is amended to read:
    7         175.021 Legislative declaration.—
    8         (2) This chapter hereby establishes, for all municipal and
    9  special district pension plans existing now or hereafter under
   10  this chapter, including chapter plans and local law plans,
   11  minimum benefits and minimum standards for the operation and
   12  funding of such plans, hereinafter referred to as firefighters’
   13  pension trust funds, which must be met as a condition precedent
   14  to the plan or plan sponsor receiving a distribution of
   15  insurance premium tax revenues under s. 175.121. The minimum
   16  benefits and minimum standards for each plan as set forth in
   17  this chapter may not be diminished by local charter, ordinance,
   18  or resolution or by special act of the Legislature and may not,
   19  nor may the minimum benefits or minimum standards be reduced or
   20  offset by any other local, state, or federal law that includes
   21  may include firefighters in its operation, except as provided
   22  under s. 112.65.
   23         Section 14. Section 175.032, Florida Statutes, is amended
   24  to read:
   25         175.032 Definitions.—For any municipality, special fire
   26  control district, chapter plan, local law municipality, local
   27  law special fire control district, or local law plan under this
   28  chapter, the term following words and phrases have the following
   29  meanings:
   30         (1) “Additional premium tax revenues” means revenues
   31  received by a municipality or special fire control district
   32  pursuant to s. 175.121 which exceed base premium tax revenues.
   33         (2)(1)(a) “Average final compensation” for:
   34         (a) A full-time firefighter means one-twelfth of the
   35  average annual compensation of the 5 best years of the last 10
   36  years of creditable service before prior to retirement,
   37  termination, or death, or the career average as a full-time
   38  firefighter since July 1, 1953, whichever is greater. A year is
   39  shall be 12 consecutive months or such other consecutive period
   40  of time as is used and consistently applied.
   41         (b) “Average final compensation” for A volunteer
   42  firefighter means the average salary of the 5 best years of the
   43  last 10 best contributing years before prior to change in status
   44  to a permanent full-time firefighter or retirement as a
   45  volunteer firefighter or the career average of a volunteer
   46  firefighter, since July 1, 1953, whichever is greater.
   47         (3) “Base premium tax revenues” means:
   48         (a) For a local law plan in effect on October 1, 1998, the
   49  revenues received by a municipality or special fire control
   50  district pursuant to s. 175.121 for calendar year 1997.
   51         (b) For a local law plan created between October 1, 1998,
   52  and March 1, 2014, inclusive, the revenues received by a
   53  municipality or special fire control district pursuant to s.
   54  175.121 based upon the tax collections during the second
   55  calendar year of participation.
   56         (4)(2) “Chapter plan” means a separate defined benefit
   57  pension plan for firefighters which incorporates by reference
   58  the provisions of this chapter and has been adopted by the
   59  governing body of a municipality or special district. Except as
   60  may be specifically authorized in this chapter, the provisions
   61  of a chapter plan may not differ from the plan provisions set
   62  forth in ss. 175.021-175.341 and ss. 175.361-175.401. Actuarial
   63  valuations of chapter plans shall be conducted by the division
   64  as provided by s. 175.261(1).
   65         (5)(3) “Compensation” or “salary” means, for
   66  noncollectively bargained service earned before July 1, 2011, or
   67  for service earned under collective bargaining agreements in
   68  place before July 1, 2011, the fixed monthly remuneration paid a
   69  firefighter. If remuneration is based on actual services
   70  rendered, as in the case of a volunteer firefighter, the term
   71  means the total cash remuneration received yearly for such
   72  services, prorated on a monthly basis. For noncollectively
   73  bargained service earned on or after July 1, 2011, or for
   74  service earned under collective bargaining agreements entered
   75  into on or after July 1, 2011, the term has the same meaning
   76  except that when calculating retirement benefits, up to 300
   77  hours per year in overtime compensation may be included as
   78  specified in the plan or collective bargaining agreement, but
   79  payments for accrued unused sick or annual leave may not be
   80  included.
   81         (a) Any retirement trust fund or plan that meets the
   82  requirements of this chapter does not, solely by virtue of this
   83  subsection, reduce or diminish the monthly retirement income
   84  otherwise payable to each firefighter covered by the retirement
   85  trust fund or plan.
   86         (b) The member’s compensation or salary contributed as
   87  employee-elective salary reductions or deferrals to any salary
   88  reduction, deferred compensation, or tax-sheltered annuity
   89  program authorized under the Internal Revenue Code shall be
   90  deemed to be the compensation or salary the member would receive
   91  if he or she were not participating in such program and shall be
   92  treated as compensation for retirement purposes under this
   93  chapter.
   94         (c) For any person who first becomes a member in any plan
   95  year beginning on or after January 1, 1996, compensation for
   96  that plan year may not include any amounts in excess of the
   97  Internal Revenue Code s. 401(a)(17) limitation, as amended by
   98  the Omnibus Budget Reconciliation Act of 1993, which limitation
   99  of $150,000 shall be adjusted as required by federal law for
  100  qualified government plans and shall be further adjusted for
  101  changes in the cost of living in the manner provided by Internal
  102  Revenue Code s. 401(a)(17)(B). For any person who first became a
  103  member before the first plan year beginning on or after January
  104  1, 1996, the limitation on compensation may not be less than the
  105  maximum compensation amount that was allowed to be taken into
  106  account under the plan in effect on July 1, 1993, which
  107  limitation shall be adjusted for changes in the cost of living
  108  since 1989 in the manner provided by Internal Revenue Code s.
  109  401(a)(17)(1991).
  110         (6)(4) “Creditable service” or “credited service” means the
  111  aggregate number of years of service, and fractional parts of
  112  years of service, of any firefighter, omitting intervening years
  113  and fractional parts of years when such firefighter may not have
  114  been employed by the municipality or special fire control
  115  district, subject to the following conditions:
  116         (a) A No firefighter may not will receive credit for years
  117  or fractional parts of years of service if he or she has
  118  withdrawn his or her contributions to the fund for those years
  119  or fractional parts of years of service, unless the firefighter
  120  repays into the fund the amount he or she has withdrawn, plus
  121  interest determined by the board. The member shall have at least
  122  90 days after his or her reemployment to make repayment.
  123         (b) A firefighter may voluntarily leave his or her
  124  contributions in the fund for a period of 5 years after leaving
  125  the employ of the fire department, pending the possibility of
  126  being rehired by the same department, without losing credit for
  127  the time he or she has participated actively as a firefighter.
  128  If the firefighter is not reemployed as a firefighter, with the
  129  same department, within 5 years, his or her contributions shall
  130  be returned without interest.
  131         (c) Credited service under this chapter shall be provided
  132  only for service as a firefighter, as defined in subsection (8),
  133  or for military service and does not include credit for any
  134  other type of service. A municipality may, by local ordinance,
  135  or a special fire control district may, by resolution, may
  136  provide for the purchase of credit for military service prior to
  137  employment as well as for prior service as a firefighter for
  138  some other employer as long as a firefighter is not entitled to
  139  receive a benefit for such prior service as a firefighter. For
  140  purposes of determining credit for prior service as a
  141  firefighter, in addition to service as a firefighter in this
  142  state, credit may be given for federal, other state, or county
  143  service if the prior service is recognized by the Division of
  144  State Fire Marshal as provided in under chapter 633, or the
  145  firefighter provides proof to the board of trustees that his or
  146  her service is equivalent to the service required to meet the
  147  definition of a firefighter under subsection (11) (8).
  148         (d) In determining the creditable service of any
  149  firefighter, credit for up to 5 years of the time spent in the
  150  military service of the Armed Forces of the United States shall
  151  be added to the years of actual service if:
  152         1. The firefighter is in the active employ of an employer
  153  immediately prior to such service and leaves a position, other
  154  than a temporary position, for the purpose of voluntary or
  155  involuntary service in the Armed Forces of the United States.
  156         2. The firefighter is entitled to reemployment under the
  157  provisions of the Uniformed Services Employment and Reemployment
  158  Rights Act.
  159         3. The firefighter returns to his or her employment as a
  160  firefighter of the municipality or special fire control district
  161  within 1 year from the date of release from such active service.
  162         (7)(5) “Deferred Retirement Option Plan” or “DROP” means a
  163  local law plan retirement option in which a firefighter may
  164  elect to participate. A firefighter may retire for all purposes
  165  of the plan and defer receipt of retirement benefits into a DROP
  166  account while continuing employment with his or her employer.
  167  However, a firefighter who enters the DROP and who is otherwise
  168  eligible to participate may shall not thereby be precluded from
  169  participation or continued participation participating, or
  170  continuing to participate, in a supplemental plan in existence
  171  on, or created after, March 12, 1999 the effective date of this
  172  act.
  173         (8) “Defined contribution plan” means the component of a
  174  local law plan, as provided in s. 175.351(1), to which deposits,
  175  if any, are made to provide benefits for firefighters, or for
  176  firefighters and police officers if both are included. Such
  177  component is an element of a local law plan and exists in
  178  conjunction with the defined benefit component that meets the
  179  minimum benefits and minimum standards of this chapter. The
  180  retirement benefits, if any, of the defined contribution plan
  181  shall be provided through individual member accounts in
  182  accordance with the applicable provisions of the Internal
  183  Revenue Code and related regulations and are limited to the
  184  contributions, if any, made into each member’s account and the
  185  actual accumulated earnings, net of expenses, earned on the
  186  member’s account.
  187         (9)(6) “Division” means the Division of Retirement of the
  188  Department of Management Services.
  189         (10)(7) “Enrolled actuary” means an actuary who is enrolled
  190  under Subtitle C of Title III of the Employee Retirement Income
  191  Security Act of 1974 and who is a member of the Society of
  192  Actuaries or the American Academy of Actuaries.
  193         (11)(8)(a) “Firefighter” means a person employed solely by
  194  a constituted fire department of any municipality or special
  195  fire control district who is certified as a firefighter as a
  196  condition of employment in accordance with s. 633.408 and whose
  197  duty it is to extinguish fires, to protect life, or to protect
  198  property. The term includes all certified, supervisory, and
  199  command personnel whose duties include, in whole or in part, the
  200  supervision, training, guidance, and management responsibilities
  201  of full-time firefighters, part-time firefighters, or auxiliary
  202  firefighters but does not include part-time firefighters or
  203  auxiliary firefighters. However, for purposes of this chapter
  204  only, the term also includes public safety officers who are
  205  responsible for performing both police and fire services, who
  206  are certified as police officers or firefighters, and who are
  207  certified by their employers to the Chief Financial Officer as
  208  participating in this chapter before October 1, 1979. Effective
  209  October 1, 1979, public safety officers who have not been
  210  certified as participating in this chapter are considered police
  211  officers for retirement purposes and are eligible to participate
  212  in chapter 185. Any plan may provide that the fire chief has an
  213  option to participate, or not, in that plan.
  214         (b) “Volunteer firefighter” means any person whose name is
  215  carried on the active membership roll of a constituted volunteer
  216  fire department or a combination of a paid and volunteer fire
  217  department of any municipality or special fire control district
  218  and whose duty it is to extinguish fires, to protect life, and
  219  to protect property. Compensation for services rendered by a
  220  volunteer firefighter does shall not disqualify him or her as a
  221  volunteer. A person may shall not be disqualified as a volunteer
  222  firefighter solely because he or she has other gainful
  223  employment. Any person who volunteers assistance at a fire but
  224  is not an active member of a department described herein is not
  225  a volunteer firefighter within the meaning of this paragraph.
  226         (12)(9) “Firefighters’ Pension Trust Fund” means a trust
  227  fund, by whatever name known, as provided under s. 175.041, for
  228  the purpose of assisting municipalities and special fire control
  229  districts in establishing and maintaining a retirement plan for
  230  firefighters.
  231         (13)(10) “Local law municipality” is any municipality in
  232  which there exists a local law plan exists.
  233         (14)(11) “Local law plan” means a retirement defined
  234  benefit pension plan, that includes both a defined benefit plan
  235  component and a defined contribution plan component, for
  236  firefighters, or for firefighters and or police officers if both
  237  are where included, as described in s. 175.351, established by
  238  municipal ordinance, special district resolution, or special act
  239  of the Legislature, which enactment sets forth all plan
  240  provisions. Local law plan provisions may vary from the
  241  provisions of this chapter if the, provided that required
  242  minimum benefits and minimum standards of this chapter are met.
  243  However, any such variance must shall provide a greater benefit
  244  for firefighters. Actuarial valuations of local law plans shall
  245  be conducted by an enrolled actuary as provided in s.
  246  175.261(2).
  247         (15)(12) “Local law special fire control district” means is
  248  any special fire control district in which there exists a local
  249  law plan exists.
  250         (16) “Minimum benefits” means the benefits set forth in ss.
  251  175.021-175.341 and ss. 175.361-175.401.
  252         (17) “Minimum standards” means the standards set forth in
  253  ss. 175.021-175.401.
  254         (18)(13) “Property insurance” means property insurance as
  255  defined in s. 624.604 and covers real and personal property
  256  within the corporate limits of a any municipality, or within the
  257  boundaries of a any special fire control district, within the
  258  state. The term “multiple peril” means a combination or package
  259  policy that includes both property and casualty coverage for a
  260  single premium.
  261         (19)(14) “Retiree” or “retired firefighter” means a
  262  firefighter who has entered retirement status. For the purposes
  263  of a plan that includes a Deferred Retirement Option Plan
  264  (DROP), a firefighter who enters the DROP is shall be considered
  265  a retiree for all purposes of the plan. However, a firefighter
  266  who enters the DROP and who is otherwise eligible to participate
  267  may shall not thereby be precluded from participation or
  268  continued participation participating, or continuing to
  269  participate, in a supplemental plan in existence on, or created
  270  after, March 12, 1999 the effective date of this act.
  271         (20)(15) “Retirement” means a firefighter’s separation from
  272  municipal city or fire district employment as a firefighter with
  273  immediate eligibility for receipt of benefits under the plan.
  274  For purposes of a plan that includes a Deferred Retirement
  275  Option Plan (DROP), “retirement” means the date a firefighter
  276  enters the DROP.
  277         (21) “Special act plan” means a plan subject to the
  278  provisions of this chapter which was created by an act of the
  279  Legislature and continues to require an act of the Legislature
  280  to alter plan benefits.
  281         (22) “Special benefits” means benefits provided in a
  282  defined contribution plan for firefighters.
  283         (23)(16) “Special fire control district” means a special
  284  district, as defined in s. 189.403(1), established for the
  285  purposes of extinguishing fires, protecting life, and protecting
  286  property within the incorporated or unincorporated portions of a
  287  any county or combination of counties, or within any combination
  288  of incorporated and unincorporated portions of a any county or
  289  combination of counties. The term does not include any dependent
  290  or independent special district, as those terms are defined in
  291  s. 189.403, whose s. 189.403(2) and (3), respectively, the
  292  employees of which are members of the Florida Retirement System
  293  pursuant to s. 121.051(1) or (2).
  294         (24)(17) “Supplemental plan” means a plan to which deposits
  295  are made to provide special extra benefits for firefighters, or
  296  for firefighters and police officers if both are where included
  297  under this chapter. Such a plan is an element of a local law
  298  plan and exists in conjunction with a defined benefit component
  299  plan that meets the minimum benefits and minimum standards of
  300  this chapter. Any supplemental plan in existence on March 1,
  301  2014, shall be deemed to be a defined contribution plan in
  302  compliance with s. 175.351(6).
  303         (25)(18) “Supplemental plan municipality” means a any local
  304  law municipality in which any there existed a supplemental plan
  305  existed, of any type or nature, as of December 1, 2000.
  306         Section 15. Subsection (7) of section 175.071, Florida
  307  Statutes, is amended to read:
  308         175.071 General powers and duties of board of trustees.—For
  309  any municipality, special fire control district, chapter plan,
  310  local law municipality, local law special fire control district,
  311  or local law plan under this chapter:
  312         (7) To assist the board in meeting its responsibilities
  313  under this chapter, the board, if it so elects, may:
  314         (a) Employ independent legal counsel at the pension fund’s
  315  expense.
  316         (b) Employ an independent enrolled actuary, as defined in
  317  s. 175.032(7), at the pension fund’s expense.
  318         (c) Employ such independent professional, technical, or
  319  other advisers as it deems necessary at the pension fund’s
  320  expense.
  321  
  322  If the board chooses to use the municipality’s or special
  323  district’s legal counsel or actuary, or chooses to use any of
  324  the municipality’s or special district’s other professional,
  325  technical, or other advisers, it must do so only under terms and
  326  conditions acceptable to the board.
  327         Section 16. Paragraph (d) of subsection (1) of section
  328  175.091, Florida Statutes, is amended to read:
  329         175.091 Creation and maintenance of fund.—For any
  330  municipality, special fire control district, chapter plan, local
  331  law municipality, local law special fire control district, or
  332  local law plan under this chapter:
  333         (1) The firefighters’ pension trust fund in each
  334  municipality and in each special fire control district shall be
  335  created and maintained in the following manner:
  336         (d) By mandatory payment by the municipality or special
  337  fire control district of a sum equal to the normal cost of and
  338  the amount required to fund any actuarial deficiency shown by an
  339  actuarial valuation conducted under as provided in part VII of
  340  chapter 112 after taking into account the amounts described in
  341  paragraphs (b), (c), (e), (f), and (g) and the tax proceeds
  342  described in paragraph (a) which are used to fund defined
  343  benefit plan benefits.
  344  
  345  Nothing in this section shall be construed to require adjustment
  346  of member contribution rates in effect on the date this act
  347  becomes a law, including rates that exceed 5 percent of salary,
  348  provided that such rates are at least one-half of 1 percent of
  349  salary.
  350         Section 17. Paragraph (a) of subsection (2) of section
  351  175.162, Florida Statutes, is amended to read:
  352         175.162 Requirements for retirement.—For any municipality,
  353  special fire control district, chapter plan, local law
  354  municipality, local law special fire control district, or local
  355  law plan under this chapter, any firefighter who completes 10 or
  356  more years of creditable service as a firefighter and attains
  357  age 55, or completes 25 years of creditable service as a
  358  firefighter and attains age 52, and who for such minimum period
  359  has been a member of the firefighters’ pension trust fund
  360  operating under a chapter plan or local law plan, is eligible
  361  for normal retirement benefits. Normal retirement under the plan
  362  is retirement from the service of the municipality or special
  363  fire control district on or after the normal retirement date. In
  364  such event, payment of retirement income will be governed by the
  365  following provisions of this section:
  366         (2)(a)1. The amount of monthly retirement income payable to
  367  a full-time firefighter who retires on or after his or her
  368  normal retirement date shall be an amount equal to the number of
  369  his or her years of credited service multiplied by 2.75 2
  370  percent of his or her average final compensation as a full-time
  371  firefighter. However, if current state contributions pursuant to
  372  this chapter are not adequate to fund the additional benefits to
  373  meet the minimum requirements in this chapter, only such
  374  incremental increases shall be required as state moneys are
  375  adequate to provide. Such increments shall be provided as state
  376  moneys become available.
  377         2. Effective July 1, 2014, a plan that is in compliance
  378  with this chapter except that the plan provides a benefit that
  379  is less than 2.75 percent of the average final compensation of a
  380  full-time firefighter for all years of credited service, as
  381  provided in subparagraph 1., or provides an effective benefit
  382  that is below 2.75 percent as a result of a maximum benefit
  383  limitation, must maintain, at a minimum, the percentage amount
  384  or maximum benefit limitation in effect on July 1, 2014, and is
  385  not required to increase the benefit to 2.75 percent of the
  386  average final compensation of a full-time firefighter for all
  387  years of credited service.
  388         3. Effective July 1, 2014, a plan that is in compliance
  389  with this chapter except that the plan provides a benefit that
  390  is less than 2.75 percent of the average final compensation of a
  391  full-time firefighter for all years of credited service, as
  392  provided in subparagraph 1., or provides an effective benefit
  393  that is below 2.75 percent as a result of a maximum benefit
  394  limitation, and which changes the percentage amount or maximum
  395  benefit limitation to 2.75 percent, or greater, of the average
  396  final compensation of a full-time firefighter for all years of
  397  credited service, as provided in subparagraph 1., may not
  398  thereafter decrease the percentage amount or maximum benefit
  399  limitation to less than 2.75 percent of the average final
  400  compensation of a full-time firefighter for all years of
  401  credited service, as provided in subparagraph 1.
  402         Section 18. Section 175.351, Florida Statutes, is amended
  403  to read:
  404         175.351 Municipalities and special fire control districts
  405  that have having their own retirement pension plans for
  406  firefighters.—For any municipality, special fire control
  407  district, local law municipality, local law special fire control
  408  district, or local law plan under this chapter, In order for a
  409  municipality or municipalities and special fire control district
  410  that has its districts with their own retirement plan pension
  411  plans for firefighters, or for firefighters and police officers
  412  if both are included, to participate in the distribution of the
  413  tax fund established under pursuant to s. 175.101, a local law
  414  plan plans must meet the minimum benefits and minimum standards
  415  set forth in this chapter, except as provided in the mutual
  416  consent provisions in paragraph (1)(g) with respect to the
  417  minimum benefits not met as of October 1, 2012.
  418         (1) If a municipality has a retirement pension plan for
  419  firefighters, or a pension plan for firefighters and police
  420  officers if both are included, which in the opinion of the
  421  division meets the minimum benefits and minimum standards set
  422  forth in this chapter, the board of trustees of the pension plan
  423  must, as approved by a majority of firefighters of the
  424  municipality, may:
  425         (a) place the income from the premium tax in s. 175.101 in
  426  such pension plan for the sole and exclusive use of its
  427  firefighters, or for firefighters and police officers if both
  428  are included, where it shall become an integral part of that
  429  pension plan and shall be used to fund benefits as provided
  430  herein. Effective October 1, 2014, for noncollectively bargained
  431  service or upon entering into a collective bargaining agreement
  432  on or after July 1, 2014:
  433         (a) The base premium tax revenues must be used to fund
  434  minimum benefits or other retirement benefits in excess of the
  435  minimum benefits as determined by the municipality or special
  436  fire control district.
  437         (b) Of the additional premium tax revenues received which
  438  are in excess of the amount received for the 2012 calendar year,
  439  50 percent must be used to fund minimum benefits or other
  440  retirement benefits in excess of the minimum benefits as
  441  determined by the municipality or special fire control district,
  442  and 50 percent must be placed in a defined contribution plan to
  443  fund special benefits.
  444         (c) Additional premium tax revenues not described in
  445  paragraph (b) must be used to fund benefits that are not
  446  included in the minimum benefits. If the additional premium tax
  447  revenues subject to this paragraph exceed the full annual cost
  448  of benefits provided through the plan which are in excess of the
  449  minimum benefits, any amount in excess of the full annual cost
  450  must be used as provided in paragraph (b).
  451         (d) Of any accumulations of additional premium tax revenues
  452  which have not been allocated to fund benefits in excess of the
  453  minimum benefits, 50 percent of the amount of the accumulations
  454  must be used to fund special benefits, and 50 percent must be
  455  applied to fund any unfunded actuarial liabilities of the plan;
  456  provided that any amount of accumulations in excess of the
  457  amount required to fund the unfunded actuarial liabilities must
  458  be used to fund special benefits to pay extra benefits to the
  459  firefighters included in that pension plan; or
  460         (b) Place the income from the premium tax in s. 175.101 in
  461  a separate supplemental plan to pay extra benefits to
  462  firefighters, or to firefighters and police officers if
  463  included, participating in such separate supplemental plan.
  464         (e) For a plan created after March 1, 2014, 50 percent of
  465  the insurance premium tax revenues must be used to fund defined
  466  benefit plan component benefits, with the remainder used to fund
  467  defined contribution plan component benefits.
  468         (f) If a plan offers benefits in excess of the minimum
  469  benefits, such benefits, excluding supplemental plan benefits in
  470  effect as of September 30, 2013, may be reduced if the plan
  471  continues to meet the minimum benefits and the minimum standards
  472  set forth in this chapter. The amount of insurance premium tax
  473  revenues previously used to fund benefits in excess of minimum
  474  benefits, excluding the amount of any additional premium tax
  475  revenues distributed to a supplemental plan for calendar year
  476  2012, before the reduction must be used as provided in paragraph
  477  (b). However, benefits in excess of the minimum benefits may not
  478  be reduced if a plan does not meet the minimum percentage amount
  479  of 2.75 percent, or greater, of the average final compensation
  480  of a full-time firefighter, as provided in s. 175.162(2)(a)1.,
  481  or provides an effective benefit that is below 2.75 percent as a
  482  result of a maximum benefit limitation, as described in s.
  483  175.162(2)(a)2.
  484         (g) Notwithstanding paragraphs (a)-(f), the use of premium
  485  tax revenues, including any accumulations of additional premium
  486  tax revenues which have not been allocated to fund benefits in
  487  excess of the minimum benefits, may deviate from the provisions
  488  of this subsection by mutual consent of the members’ collective
  489  bargaining representative or, if none, by majority consent of
  490  the firefighter members of the fund, and by consent of the
  491  municipality or special fire control district, provided that the
  492  plan continues to meet the minimum benefits and minimum
  493  standards of this chapter; however, a plan that operates
  494  pursuant to this paragraph which does not meet the minimum
  495  benefits as of October 1, 2012, may continue to provide the
  496  benefits that do not meet the minimum benefits at the same level
  497  as was provided as of October 1, 2012, and all other benefit
  498  levels must continue to meet the minimum benefits. Such mutually
  499  agreed deviation shall continue until modified or revoked by
  500  subsequent mutual consent of the members’ collective bargaining
  501  representative or, if none, by a majority of the firefighter
  502  members of the fund, and the municipality or special fire
  503  control district. An existing arrangement for the use of premium
  504  tax revenues contained within a special act plan or a plan
  505  within a supplemental plan municipality is considered, as of
  506  July 1, 2014, to be a deviation for which mutual consent has
  507  been granted.
  508         (2) The premium tax provided by this chapter shall in all
  509  cases be used in its entirety to provide retirement extra
  510  benefits to firefighters, or to firefighters and police officers
  511  if both are included. However, local law plans in effect on
  512  October 1, 1998, must comply with the minimum benefit provisions
  513  of this chapter only to the extent that additional premium tax
  514  revenues become available to incrementally fund the cost of such
  515  compliance as provided in s. 175.162(2)(a). If a plan is in
  516  compliance with such minimum benefit provisions, as subsequent
  517  additional premium tax revenues become available, they must be
  518  used to provide extra benefits. Local law plans created by
  519  special act before May 27, 1939, are deemed to comply with this
  520  chapter. For the purpose of this chapter, the term:
  521         (a) “Additional premium tax revenues” means revenues
  522  received by a municipality or special fire control district
  523  pursuant to s. 175.121 which exceed that amount received for
  524  calendar year 1997.
  525         (b) “Extra benefits” means benefits in addition to or
  526  greater than those provided to general employees of the
  527  municipality and in addition to those in existence for
  528  firefighters on March 12, 1999.
  529         (3) A retirement plan or amendment to a retirement plan may
  530  not be proposed for adoption unless the proposed plan or
  531  amendment contains an actuarial estimate of the costs involved.
  532  Such proposed plan or proposed plan change may not be adopted
  533  without the approval of the municipality, special fire control
  534  district, or, where required permitted, the Legislature. Copies
  535  of the proposed plan or proposed plan change and the actuarial
  536  impact statement of the proposed plan or proposed plan change
  537  shall be furnished to the division before the last public
  538  hearing on the proposal is held thereon. Such statement must
  539  also indicate whether the proposed plan or proposed plan change
  540  is in compliance with s. 14, Art. X of the State Constitution
  541  and those provisions of part VII of chapter 112 which are not
  542  expressly provided in this chapter. Notwithstanding any other
  543  provision, only those local law plans created by special act of
  544  legislation before May 27, 1939, are deemed to meet the minimum
  545  benefits and minimum standards only in this chapter.
  546         (4) Notwithstanding any other provision, with respect to
  547  any supplemental plan municipality:
  548         (a) A local law plan and a supplemental plan may continue
  549  to use their definition of compensation or salary in existence
  550  on March 12, 1999.
  551         (b) Section 175.061(1)(b) does not apply, and a local law
  552  plan and a supplemental plan shall continue to be administered
  553  by a board or boards of trustees numbered, constituted, and
  554  selected as the board or boards were numbered, constituted, and
  555  selected on December 1, 2000.
  556         (c) The election set forth in paragraph (1)(b) is deemed to
  557  have been made.
  558         (5) The retirement plan setting forth the benefits and the
  559  trust agreement, if any, covering the duties and
  560  responsibilities of the trustees and the regulations of the
  561  investment of funds must be in writing, and copies made
  562  available to the participants and to the general public.
  563         (6) In addition to the defined benefit component of the
  564  local law plan, each plan sponsor must have a defined
  565  contribution plan component within the local law plan by October
  566  1, 2014, for noncollectively bargained service, upon entering
  567  into a collective bargaining agreement on or after July 1, 2014,
  568  or upon the creation date of a new participating plan. Depending
  569  upon the application of subsection (1), a defined contribution
  570  component may or may not receive any funding.
  571         (7) Notwithstanding any other provision of this chapter, a
  572  municipality or special fire control district that has
  573  implemented or proposed changes to a local law plan based on the
  574  municipality’s or district’s reliance on an interpretation of
  575  this chapter by the Department of Management Services on or
  576  after August 14, 2012, and before March 4, 2014, may continue
  577  the implemented changes or continue to implement proposed
  578  changes. Such reliance must be evidenced by a written collective
  579  bargaining proposal or agreement, or formal correspondence
  580  between the municipality or district and the Department of
  581  Management Services which describes the specific changes to the
  582  local law plan, with the initial proposal, agreement, or
  583  correspondence from the municipality or district dated before
  584  March 4, 2014. Changes to the local law plan which are otherwise
  585  contrary to the minimum benefits and minimum standards in this
  586  chapter may continue in effect until the earlier of October 1,
  587  2017, or the effective date of a collective bargaining agreement
  588  that is contrary to the changes to the local law plan.
  589         Section 19. Subsection (2) of section 185.01, Florida
  590  Statutes, is amended to read:
  591         185.01 Legislative declaration.—
  592         (2) This chapter hereby establishes, for all municipal
  593  pension plans now or hereinafter provided for under this
  594  chapter, including chapter plans and local law plans, minimum
  595  benefits and minimum standards for the operation and funding of
  596  such plans, hereinafter referred to as municipal police
  597  officers’ retirement trust funds, which must be met as
  598  conditions precedent to the plans or plan sponsors receiving a
  599  distribution of insurance premium tax revenues under s. 185.10.
  600  The minimum benefits and minimum standards for each plan as set
  601  forth in this chapter may not be diminished by local ordinance
  602  or by special act of the Legislature and may not, nor may the
  603  minimum benefits or minimum standards be reduced or offset by
  604  any other local, state, or federal plan that includes may
  605  include police officers in its operation, except as provided
  606  under s. 112.65.
  607         Section 20. Section 185.02, Florida Statutes, is amended to
  608  read:
  609         185.02 Definitions.—For any municipality, chapter plan,
  610  local law municipality, or local law plan under this chapter,
  611  the term following words and phrases as used in this chapter
  612  shall have the following meanings, unless a different meaning is
  613  plainly required by the context:
  614         (1) “Additional premium tax revenues” means revenues
  615  received by a municipality pursuant to s. 185.10 which exceed
  616  base premium tax revenues.
  617         (2)(1) “Average final compensation” means one-twelfth of
  618  the average annual compensation of the 5 best years of the last
  619  10 years of creditable service prior to retirement, termination,
  620  or death.
  621         (3) “Base premium tax revenues” means:
  622         (a) For a local law plan in effect on October 1, 1998, the
  623  revenues received by a municipality pursuant to s. 185.10 for
  624  the calendar year 1997.
  625         (b) For a local law plan created between October 1, 1998,
  626  and March 1, 2014, inclusive, the revenues received by a
  627  municipality pursuant to s. 185.10 based upon the tax
  628  collections during the second calendar year of participation.
  629         (4)(2) “Casualty insurance” means automobile public
  630  liability and property damage insurance to be applied at the
  631  place of residence of the owner, or if the subject is a
  632  commercial vehicle, to be applied at the place of business of
  633  the owner; automobile collision insurance; fidelity bonds;
  634  burglary and theft insurance; and plate glass insurance. The
  635  term “multiple peril” means a combination or package policy that
  636  includes both property coverage and casualty coverage for a
  637  single premium.
  638         (5)(3) “Chapter plan” means a separate defined benefit
  639  pension plan for police officers which incorporates by reference
  640  the provisions of this chapter and has been adopted by the
  641  governing body of a municipality as provided in s. 185.08.
  642  Except as may be specifically authorized in this chapter, the
  643  provisions of a chapter plan may not differ from the plan
  644  provisions set forth in ss. 185.01-185.341 and ss. 185.37
  645  185.39. Actuarial valuations of chapter plans shall be conducted
  646  by the division as provided by s. 185.221(1)(b).
  647         (6)(4) “Compensation” or “salary” means, for
  648  noncollectively bargained service earned before July 1, 2011, or
  649  for service earned under collective bargaining agreements in
  650  place before July 1, 2011, the total cash remuneration including
  651  “overtime” paid by the primary employer to a police officer for
  652  services rendered, but not including any payments for extra duty
  653  or special detail work performed on behalf of a second party
  654  employer. Overtime may be limited prior to July 1, 2011, in a
  655  local law plan by the plan provisions A local law plan may limit
  656  the amount of overtime payments which can be used for retirement
  657  benefit calculation purposes; however, such overtime limit may
  658  not be less than 300 hours per officer per calendar year. For
  659  noncollectively bargained service earned on or after July 1,
  660  2011, or for service earned under collective bargaining
  661  agreements entered into on or after July 1, 2011, the term has
  662  the same meaning except that when calculating retirement
  663  benefits, up to 300 hours per year in overtime compensation may
  664  be included as specified in the plan or collective bargaining
  665  agreement, but payments for accrued unused sick or annual leave
  666  may not be included.
  667         (a) Any retirement trust fund or plan that meets the
  668  requirements of this chapter does not, solely by virtue of this
  669  subsection, reduce or diminish the monthly retirement income
  670  otherwise payable to each police officer covered by the
  671  retirement trust fund or plan.
  672         (b) The member’s compensation or salary contributed as
  673  employee-elective salary reductions or deferrals to any salary
  674  reduction, deferred compensation, or tax-sheltered annuity
  675  program authorized under the Internal Revenue Code shall be
  676  deemed to be the compensation or salary the member would receive
  677  if he or she were not participating in such program and shall be
  678  treated as compensation for retirement purposes under this
  679  chapter.
  680         (c) For any person who first becomes a member in any plan
  681  year beginning on or after January 1, 1996, compensation for
  682  that plan year may not include any amounts in excess of the
  683  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  684  the Omnibus Budget Reconciliation Act of 1993, which limitation
  685  of $150,000 shall be adjusted as required by federal law for
  686  qualified government plans and shall be further adjusted for
  687  changes in the cost of living in the manner provided by Internal
  688  Revenue Code s. 401(a)(17)(B). For any person who first became a
  689  member before the first plan year beginning on or after January
  690  1, 1996, the limitation on compensation may not be less than the
  691  maximum compensation amount that was allowed to be taken into
  692  account under the plan as in effect on July 1, 1993, which
  693  limitation shall be adjusted for changes in the cost of living
  694  since 1989 in the manner provided by Internal Revenue Code s.
  695  401(a)(17)(1991).
  696         (7)(5) “Creditable service” or “credited service” means the
  697  aggregate number of years of service and fractional parts of
  698  years of service of any police officer, omitting intervening
  699  years and fractional parts of years when such police officer may
  700  not have been employed by the municipality subject to the
  701  following conditions:
  702         (a) A No police officer may not will receive credit for
  703  years or fractional parts of years of service if he or she has
  704  withdrawn his or her contributions to the fund for those years
  705  or fractional parts of years of service, unless the police
  706  officer repays into the fund the amount he or she has withdrawn,
  707  plus interest as determined by the board. The member has shall
  708  have at least 90 days after his or her reemployment to make
  709  repayment.
  710         (b) A police officer may voluntarily leave his or her
  711  contributions in the fund for a period of 5 years after leaving
  712  the employ of the police department, pending the possibility of
  713  his or her being rehired by the same department, without losing
  714  credit for the time he or she has participated actively as a
  715  police officer. If he or she is not reemployed as a police
  716  officer with the same department within 5 years, his or her
  717  contributions shall be returned to him or her without interest.
  718         (c) Credited service under this chapter shall be provided
  719  only for service as a police officer, as defined in subsection
  720  (11), or for military service and may not include credit for any
  721  other type of service. A municipality may, by local ordinance,
  722  may provide for the purchase of credit for military service
  723  occurring before employment as well as prior service as a police
  724  officer for some other employer as long as the police officer is
  725  not entitled to receive a benefit for such other prior service
  726  as a police officer. For purposes of determining credit for
  727  prior service, in addition to service as a police officer in
  728  this state, credit may be given for federal, other state, or
  729  county service as long as such service is recognized by the
  730  Criminal Justice Standards and Training Commission within the
  731  Department of Law Enforcement as provided in under chapter 943
  732  or the police officer provides proof to the board of trustees
  733  that such service is equivalent to the service required to meet
  734  the definition of a police officer under subsection (16) (11).
  735         (d) In determining the creditable service of a any police
  736  officer, credit for up to 5 years of the time spent in the
  737  military service of the Armed Forces of the United States shall
  738  be added to the years of actual service, if:
  739         1. The police officer is in the active employ of the
  740  municipality before prior to such service and leaves a position,
  741  other than a temporary position, for the purpose of voluntary or
  742  involuntary service in the Armed Forces of the United States.
  743         2. The police officer is entitled to reemployment under the
  744  provisions of the Uniformed Services Employment and Reemployment
  745  Rights Act.
  746         3. The police officer returns to his or her employment as a
  747  police officer of the municipality within 1 year after from the
  748  date of his or her release from such active service.
  749         (8)(6) “Deferred Retirement Option Plan” or “DROP” means a
  750  local law plan retirement option in which a police officer may
  751  elect to participate. A police officer may retire for all
  752  purposes of the plan and defer receipt of retirement benefits
  753  into a DROP account while continuing employment with his or her
  754  employer. However, a police officer who enters the DROP and who
  755  is otherwise eligible to participate may shall not thereby be
  756  precluded from participation or continued participation
  757  participating, or continuing to participate, in a supplemental
  758  plan in existence on, or created after, March 12, 1999 the
  759  effective date of this act.
  760         (9) “Defined contribution plan” means the component of a
  761  local law plan, as provided in s. 185.35(1), to which deposits,
  762  if any, are made to provide benefits for police officers, or for
  763  police officers and firefighters if both are included. Such
  764  component is an element of a local law plan and exists in
  765  conjunction with the defined benefit component that meets the
  766  minimum benefits and minimum standards of this chapter. The
  767  retirement benefits, if any, of the defined contribution plan
  768  shall be provided through individual member accounts in
  769  accordance with the applicable provisions of the Internal
  770  Revenue Code and related regulations and are limited to the
  771  contributions, if any, made into each member’s account and the
  772  actual accumulated earnings, net of expenses, earned on the
  773  member’s account.
  774         (10)(7) “Division” means the Division of Retirement of the
  775  Department of Management Services.
  776         (11)(8) “Enrolled actuary” means an actuary who is enrolled
  777  under Subtitle C of Title III of the Employee Retirement Income
  778  Security Act of 1974 and who is a member of the Society of
  779  Actuaries or the American Academy of Actuaries.
  780         (12)(9) “Local law municipality” means is any municipality
  781  in which there exists a local law plan exists.
  782         (13)(10) “Local law plan” means a retirement defined
  783  benefit pension plan, that includes both a defined benefit plan
  784  component and a defined contribution plan component, for police
  785  officers, or for police officers and firefighters if both are,
  786  where included, as described in s. 185.35, established by
  787  municipal ordinance or special act of the Legislature, which
  788  enactment sets forth all plan provisions. Local law plan
  789  provisions may vary from the provisions of this chapter if the,
  790  provided that required minimum benefits and minimum standards of
  791  this chapter are met. However, any such variance must shall
  792  provide a greater benefit for police officers. Actuarial
  793  valuations of local law plans shall be conducted by an enrolled
  794  actuary as provided in s. 185.221(2)(b).
  795         (14) “Minimum benefits” means the benefits set forth in ss.
  796  185.01-185.341 and ss. 185.37-185.50.
  797         (15) “Minimum standards” means the standards set forth in
  798  ss. 185.01-185.50.
  799         (16)(11) “Police officer” means any person who is elected,
  800  appointed, or employed full time by a any municipality, who is
  801  certified or required to be certified as a law enforcement
  802  officer in compliance with s. 943.1395, who is vested with
  803  authority to bear arms and make arrests, and whose primary
  804  responsibility is the prevention and detection of crime or the
  805  enforcement of the penal, criminal, traffic, or highway laws of
  806  the state. The term This definition includes all certified
  807  supervisory and command personnel whose duties include, in whole
  808  or in part, the supervision, training, guidance, and management
  809  responsibilities of full-time law enforcement officers, part
  810  time law enforcement officers, or auxiliary law enforcement
  811  officers, but does not include part-time law enforcement
  812  officers or auxiliary law enforcement officers as those terms
  813  the same are defined in s. 943.10(6) and (8), respectively. For
  814  the purposes of this chapter only, the term also includes
  815  “police officer” also shall include a public safety officer who
  816  is responsible for performing both police and fire services. Any
  817  plan may provide that the police chief shall have an option to
  818  participate, or not, in that plan.
  819         (17)(12) “Police Officers’ Retirement Trust Fund” means a
  820  trust fund, by whatever name known, as provided under s. 185.03
  821  for the purpose of assisting municipalities in establishing and
  822  maintaining a retirement plan for police officers.
  823         (18)(13) “Retiree” or “retired police officer” means a
  824  police officer who has entered retirement status. For the
  825  purposes of a plan that includes a Deferred Retirement Option
  826  Plan (DROP), a police officer who enters the DROP is shall be
  827  considered a retiree for all purposes of the plan. However, a
  828  police officer who enters the DROP and who is otherwise eligible
  829  to participate may shall not thereby be precluded from
  830  participating, or continuing to participate, in a supplemental
  831  plan in existence on, or created after, March 12, 1999 the
  832  effective date of this act.
  833         (19)(14) “Retirement” means a police officer’s separation
  834  from municipal city employment as a police officer with
  835  immediate eligibility for receipt of benefits under the plan.
  836  For purposes of a plan that includes a Deferred Retirement
  837  Option Plan (DROP), “retirement” means the date a police officer
  838  enters the DROP.
  839         (20) “Special act plan” means a plan subject to the
  840  provisions of this chapter which was created by an act of the
  841  Legislature and continues to require an act of the Legislature
  842  to alter plan benefits.
  843         (21) “Special benefits” means benefits provided in a
  844  defined contribution plan for police officers.
  845         (22)(15) “Supplemental plan” means a plan to which deposits
  846  of the premium tax moneys as provided in s. 185.08 are made to
  847  provide special extra benefits to police officers, or police
  848  officers and firefighters if both are where included, under this
  849  chapter. Such a plan is an element of a local law plan and
  850  exists in conjunction with a defined benefit component plan that
  851  meets the minimum benefits and minimum standards of this
  852  chapter. Any supplemental plan in existence on March 1, 2014,
  853  shall be deemed to be a defined contribution plan in compliance
  854  with s. 185.35(6).
  855         (23)(16) “Supplemental plan municipality” means a any local
  856  law municipality in which there existed a supplemental plan
  857  existed as of December 1, 2000.
  858         Section 21. Subsection (6) of section 185.06, Florida
  859  Statutes, is amended to read:
  860         185.06 General powers and duties of board of trustees.—For
  861  any municipality, chapter plan, local law municipality, or local
  862  law plan under this chapter:
  863         (6) To assist the board in meeting its responsibilities
  864  under this chapter, the board, if it so elects, may:
  865         (a) Employ independent legal counsel at the pension fund’s
  866  expense.
  867         (b) Employ an independent enrolled actuary, as defined in
  868  s. 185.02(8), at the pension fund’s expense.
  869         (c) Employ such independent professional, technical, or
  870  other advisers as it deems necessary at the pension fund’s
  871  expense.
  872  
  873  If the board chooses to use the municipality’s or special
  874  district’s legal counsel or actuary, or chooses to use any of
  875  the municipality’s other professional, technical, or other
  876  advisers, it must do so only under terms and conditions
  877  acceptable to the board.
  878         Section 22. Paragraph (d) of subsection (1) of section
  879  185.07, Florida Statutes, is amended to read:
  880         185.07 Creation and maintenance of fund.—For any
  881  municipality, chapter plan, local law municipality, or local law
  882  plan under this chapter:
  883         (1) The municipal police officers’ retirement trust fund in
  884  each municipality described in s. 185.03 shall be created and
  885  maintained in the following manner:
  886         (d) By payment by the municipality or other sources of a
  887  sum equal to the normal cost and the amount required to fund any
  888  actuarial deficiency shown by an actuarial valuation conducted
  889  under as provided in part VII of chapter 112 after taking into
  890  account the amounts described in paragraphs (b), (c), (e), (f),
  891  and (g) and the tax proceeds described in paragraph (a) which
  892  are used to fund defined benefit plan benefits.
  893  
  894  Nothing in this section shall be construed to require adjustment
  895  of member contribution rates in effect on the date this act
  896  becomes a law, including rates that exceed 5 percent of salary,
  897  provided that such rates are at least one-half of 1 percent of
  898  salary.
  899         Section 23. Subsection (2) of section 185.16, Florida
  900  Statutes, is amended to read:
  901         185.16 Requirements for retirement.—For any municipality,
  902  chapter plan, local law municipality, or local law plan under
  903  this chapter, any police officer who completes 10 or more years
  904  of creditable service as a police officer and attains age 55, or
  905  completes 25 years of creditable service as a police officer and
  906  attains age 52, and for such period has been a member of the
  907  retirement fund is eligible for normal retirement benefits.
  908  Normal retirement under the plan is retirement from the service
  909  of the city on or after the normal retirement date. In such
  910  event, for chapter plans and local law plans, payment of
  911  retirement income will be governed by the following provisions
  912  of this section:
  913         (2)(a) The amount of the monthly retirement income payable
  914  to a police officer who retires on or after his or her normal
  915  retirement date shall be an amount equal to the number of the
  916  police officer’s years of credited service multiplied by 2.75 2
  917  percent of his or her average final compensation. However, if
  918  current state contributions pursuant to this chapter are not
  919  adequate to fund the additional benefits to meet the minimum
  920  requirements in this chapter, only increment increases shall be
  921  required as state moneys are adequate to provide. Such
  922  increments shall be provided as state moneys become available.
  923         (b) Effective July 1, 2014, a plan that is in compliance
  924  with this chapter except that the plan provides a benefit that
  925  is less than 2.75 percent of the average final compensation of a
  926  police officer for all years of credited service, as provided in
  927  paragraph (a), or provides an effective benefit that is below
  928  2.75 percent as a result of a maximum benefit limitation, must
  929  maintain, at a minimum, the percentage amount or maximum benefit
  930  limitation in effect on July 1, 2014, and is not required to
  931  increase the benefit to 2.75 percent of the average final
  932  compensation of a police officer for all years of credited
  933  service.
  934         (c) Effective July 1, 2014, a plan that is in compliance
  935  with this chapter except that the plan provides a benefit that
  936  is less than 2.75 percent of the average final compensation of a
  937  police officer for all years of credited service, as provided in
  938  paragraph (a), or provides an effective benefit that is below
  939  2.75 percent as a result of a maximum benefit limitation, and
  940  which changes the percentage amount or maximum benefit
  941  limitation to 2.75 percent, or greater, of the average final
  942  compensation of a police officer for all years of credited
  943  service, as provided in paragraph (a), may not thereafter
  944  decrease the percentage amount or the maximum benefit limitation
  945  to less than 2.75 percent of the average final compensation of a
  946  police officer for all years of credited service, as provided in
  947  paragraph (a).
  948         Section 24. Section 185.35, Florida Statutes, is amended to
  949  read:
  950         185.35 Municipalities that have having their own retirement
  951  pension plans for police officers.—For any municipality, chapter
  952  plan, local law municipality, or local law plan under this
  953  chapter, In order for a municipality that has its municipalities
  954  with their own retirement plan pension plans for police
  955  officers, or for police officers and firefighters if both are
  956  included, to participate in the distribution of the tax fund
  957  established under pursuant to s. 185.08, a local law plan plans
  958  must meet the minimum benefits and minimum standards set forth
  959  in this chapter, except as provided in the mutual consent
  960  provisions in paragraph (1)(g) with respect to the minimum
  961  benefits not met as of October 1, 2012.:
  962         (1) If a municipality has a retirement pension plan for
  963  police officers, or for police officers and firefighters if both
  964  are included, which, in the opinion of the division, meets the
  965  minimum benefits and minimum standards set forth in this
  966  chapter, the board of trustees of the pension plan must, as
  967  approved by a majority of police officers of the municipality,
  968  may:
  969         (a) place the income from the premium tax in s. 185.08 in
  970  such pension plan for the sole and exclusive use of its police
  971  officers, or its police officers and firefighters if both are
  972  included, where it shall become an integral part of that pension
  973  plan and shall be used to fund benefits as provided herein.
  974  Effective October 1, 2014, for noncollectively bargained service
  975  or upon entering into a collective bargaining agreement on or
  976  after July 1, 2014:
  977         (a) The base premium tax revenues must be used to fund
  978  minimum benefits or other retirement benefits in excess of the
  979  minimum benefits as determined by the municipality.
  980         (b) Of the additional premium tax revenues received which
  981  are in excess of the amount received for the 2012 calendar year,
  982  50 percent must be used to fund minimum benefits or other
  983  retirement benefits in excess of the minimum benefits as
  984  determined by the municipality, and 50 percent must be placed in
  985  a defined contribution plan to fund special benefits.
  986         (c) Additional premium tax revenues not described in
  987  paragraph (b) must be used to fund benefits that are not
  988  included in the minimum benefits. If the additional premium tax
  989  revenues subject to this paragraph exceed the full annual cost
  990  of benefits provided through the plan which are in excess of the
  991  minimum benefits, any amount in excess of the full annual cost
  992  must be used as provided in paragraph (b).
  993         (d) Of any accumulations of additional premium tax revenues
  994  which have not been allocated to fund benefits in excess of the
  995  minimum benefits, 50 percent of the amount of the accumulations
  996  must be used to fund special benefits and 50 percent must be
  997  applied to fund any unfunded actuarial liabilities of the plan;
  998  provided that any amount of accumulations in excess of the
  999  amount required to fund the unfunded actuarial liabilities must
 1000  be used to fund special benefits pay extra benefits to the
 1001  police officers included in that pension plan; or
 1002         (b) May place the income from the premium tax in s. 185.08
 1003  in a separate supplemental plan to pay extra benefits to the
 1004  police officers, or police officers and firefighters if
 1005  included, participating in such separate supplemental plan.
 1006         (e) For a plan created after March 1, 2014, 50 percent of
 1007  the insurance premium tax revenues shall be used to fund defined
 1008  benefit plan component benefits, with the remainder used to fund
 1009  defined contribution plan component benefits.
 1010         (f) If a plan offers benefits in excess of the minimum
 1011  benefits, such benefits, excluding supplemental plan benefits in
 1012  effect as of September 30, 2013, may be reduced if the plan
 1013  continues to meet the minimum benefits and the minimum standards
 1014  set forth in this chapter. The amount of insurance premium tax
 1015  revenues previously used to fund benefits in excess of the
 1016  minimum benefits, excluding the amount of any additional premium
 1017  tax revenues distributed to a supplemental plan for calendar
 1018  year 2012, before the reduction must be used as provided in
 1019  paragraph (b). However, benefits in excess of the minimum
 1020  benefits may not be reduced if a plan does not meet the minimum
 1021  percentage amount of 2.75 percent, or greater, of the average
 1022  final compensation of a police officer, as provided in s.
 1023  185.16(2)(a), or provides an effective benefit that is below
 1024  2.75 percent as a result of a maximum benefit limitation, as
 1025  described in s. 185.16(2)(b).
 1026         (g) Notwithstanding paragraphs (a)-(f), the use of premium
 1027  tax revenues, including any accumulations of additional premium
 1028  tax revenues which have not been allocated to fund benefits in
 1029  excess of the minimum benefits, may deviate from the provisions
 1030  of this subsection by mutual consent of the members’ collective
 1031  bargaining representative or, if none, by majority consent of
 1032  the police officer members of the fund, and by consent of the
 1033  municipality, provided that the plan continues to meet the
 1034  minimum benefits and minimum standards of this chapter; however,
 1035  a plan that operates pursuant to this paragraph which does not
 1036  meet the minimum benefits as of October 1, 2012, may continue to
 1037  provide the benefits that do not meet the minimum benefits at
 1038  the same level as was provided as of October 1, 2012, and all
 1039  other benefit levels must continue to meet the minimum benefits.
 1040  Such mutually agreed deviation shall continue until modified or
 1041  revoked by subsequent mutual consent of the members’ collective
 1042  bargaining representative or, if none, by a majority of the
 1043  police officer members of the fund, and the municipality. An
 1044  existing arrangement for the use of premium tax revenues
 1045  contained within a special act plan or a plan within a
 1046  supplemental plan municipality is considered, as of July 1,
 1047  2014, to be a deviation for which mutual consent has been
 1048  granted.
 1049         (2) The premium tax provided by this chapter shall in all
 1050  cases be used in its entirety to provide retirement extra
 1051  benefits to police officers, or to police officers and
 1052  firefighters if both are included. However, local law plans in
 1053  effect on October 1, 1998, must comply with the minimum benefit
 1054  provisions of this chapter only to the extent that additional
 1055  premium tax revenues become available to incrementally fund the
 1056  cost of such compliance as provided in s. 185.16(2). If a plan
 1057  is in compliance with such minimum benefit provisions, as
 1058  subsequent additional tax revenues become available, they shall
 1059  be used to provide extra benefits. Local law plans created by
 1060  special act before May 27, 1939, shall be deemed to comply with
 1061  this chapter. For the purpose of this chapter, the term:
 1062         (a) “Additional premium tax revenues” means revenues
 1063  received by a municipality pursuant to s. 185.10 which exceed
 1064  the amount received for calendar year 1997.
 1065         (b) “Extra benefits” means benefits in addition to or
 1066  greater than those provided to general employees of the
 1067  municipality and in addition to those in existence for police
 1068  officers on March 12, 1999.
 1069         (3) A retirement plan or amendment to a retirement plan may
 1070  not be proposed for adoption unless the proposed plan or
 1071  amendment contains an actuarial estimate of the costs involved.
 1072  Such proposed plan or proposed plan change may not be adopted
 1073  without the approval of the municipality or, where required
 1074  permitted, the Legislature. Copies of the proposed plan or
 1075  proposed plan change and the actuarial impact statement of the
 1076  proposed plan or proposed plan change shall be furnished to the
 1077  division before the last public hearing on the proposal is held
 1078  thereon. Such statement must also indicate whether the proposed
 1079  plan or proposed plan change is in compliance with s. 14, Art. X
 1080  of the State Constitution and those provisions of part VII of
 1081  chapter 112 which are not expressly provided in this chapter.
 1082  Notwithstanding any other provision, only those local law plans
 1083  created by special act of legislation before May 27, 1939, are
 1084  deemed to meet the minimum benefits and minimum standards only
 1085  in this chapter.
 1086         (4) Notwithstanding any other provision, with respect to
 1087  any supplemental plan municipality:
 1088         (a) Section 185.02(6)(a) 185.02(4)(a) does not apply, and a
 1089  local law plan and a supplemental plan may continue to use their
 1090  definition of compensation or salary in existence on March 12,
 1091  1999.
 1092         (b) A local law plan and a supplemental plan must continue
 1093  to be administered by a board or boards of trustees numbered,
 1094  constituted, and selected as the board or boards were numbered,
 1095  constituted, and selected on December 1, 2000.
 1096         (c) The election set forth in paragraph (1)(b) is deemed to
 1097  have been made.
 1098         (5) The retirement plan setting forth the benefits and the
 1099  trust agreement, if any, covering the duties and
 1100  responsibilities of the trustees and the regulations of the
 1101  investment of funds must be in writing and copies made available
 1102  to the participants and to the general public.
 1103         (6) In addition to the defined benefit component of the
 1104  local law plan, each plan sponsor must have a defined
 1105  contribution plan component within the local law plan by October
 1106  1, 2014, for noncollectively bargained service, upon entering
 1107  into a collective bargaining agreement on or after July 1, 2014,
 1108  or upon the creation date of a new participating plan. Depending
 1109  upon the application of subsection (1), a defined contribution
 1110  component may or may not receive any funding.
 1111         (7) Notwithstanding any other provision of this chapter, a
 1112  municipality that has implemented or proposed changes to a local
 1113  law plan based on the municipality’s reliance on an
 1114  interpretation of this chapter by the Department of Management
 1115  Services on or after August 14, 2012, and before March 4, 2014,
 1116  may continue the implemented changes or continue to implement
 1117  proposed changes. Such reliance must be evidenced by a written
 1118  collective bargaining proposal or agreement, or formal
 1119  correspondence between the municipality and the Department of
 1120  Management Services which describes the specific changes to the
 1121  local law plan, with the initial proposal, agreement, or
 1122  correspondence from the municipality dated before March 4, 2014.
 1123  Changes to the local law plan which are otherwise contrary to
 1124  the minimum benefits and minimum standards of this chapter may
 1125  continue in effect until the earlier of October 1, 2017, or the
 1126  effective date of a collective bargaining agreement that is
 1127  contrary to the changes to the local law plan.
 1128  
 1129  ================= T I T L E  A M E N D M E N T ================
 1130  And the title is amended as follows:
 1131         Between lines 93 and 94
 1132  insert:
 1133         amending s. 175.021, F.S.; revising the legislative
 1134         declaration to require that all firefighter pension
 1135         plans meet the requirements of ch. 175, F.S., in order
 1136         to receive insurance premium tax revenues; amending s.
 1137         175.032, F.S.; revising definitions to conform to
 1138         changes made by the act and providing new definitions;
 1139         amending s. 175.071, F.S.; conforming a cross
 1140         reference; amending s. 175.091, F.S.; revising the
 1141         method of creating and maintaining a firefighters’
 1142         pension trust fund; amending s. 175.162, F.S.;
 1143         deleting a provision basing the availability of
 1144         additional benefits in a firefighter pension plan upon
 1145         state funding; revising the calculation of monthly
 1146         retirement income for a full-time firefighter;
 1147         providing that certain firefighter pension plans must
 1148         maintain a certain minimum percentage of average final
 1149         compensation by a specified date; amending s. 175.351,
 1150         F.S., relating to municipalities and special fire
 1151         control districts that have their own pension plans
 1152         and want to participate in the distribution of a tax
 1153         fund; redesignating the term “pension plan” as
 1154         “retirement plan”; revising criteria governing the use
 1155         of revenues from the premium tax; authorizing a
 1156         retirement plan to reduce certain excess benefits if
 1157         the plan continues to meet certain minimum benefits
 1158         and standards; providing that the use of premium tax
 1159         revenues may deviate from the requirements of ch. 175,
 1160         F.S., under certain circumstances; requiring plan
 1161         sponsors to have a defined contribution plan in place
 1162         by a certain date; authorizing a municipality to
 1163         implement certain changes to a local law plan which
 1164         are contrary to ch. 175, F.S., for a limited time;
 1165         amending s. 185.01, F.S.; revising the legislative
 1166         declaration to require that all police officer pension
 1167         plans meet the requirements of ch. 185, F.S., in order
 1168         to receive insurance premium tax revenues; amending s.
 1169         185.02, F.S.; revising definitions to conform to
 1170         changes made by the act and adding new definitions;
 1171         revising applicability of the limitation on the amount
 1172         of overtime payments that may be used for retirement
 1173         benefit calculations; amending s. 185.06, F.S.;
 1174         conforming a cross-reference; amending s. 185.07,
 1175         F.S.; revising the method of creating and maintaining
 1176         a police officers’ retirement trust fund; amending s.
 1177         185.16, F.S.; deleting a provision basing the
 1178         availability of additional benefits in a police
 1179         officer pension plan upon state funding; revising the
 1180         calculation of monthly retirement income for a police
 1181         officer; providing that certain police officer pension
 1182         plans must maintain a certain minimum percentage of
 1183         average final compensation after a specified date;
 1184         amending s. 185.35, F.S., relating to municipalities
 1185         that have their own pension plans for police officers
 1186         and want to participate in the distribution of a tax
 1187         fund; conforming a cross-reference; redesignating the
 1188         term “pension plan” as “retirement plan”; revising
 1189         criteria governing the use of revenues from the
 1190         premium tax; authorizing a plan to reduce certain
 1191         excess benefits if the plan continues to meet certain
 1192         minimum benefits and minimum standards; providing that
 1193         the use of premium tax revenues may deviate from the
 1194         requirements of ch. 185, F.S., under specified
 1195         circumstances; requiring plan sponsors to have a
 1196         defined contribution plan in place by a certain date;
 1197         authorizing a municipality to implement certain
 1198         changes to a local law plan which are contrary to ch.
 1199         185, F.S., for a limited time;