Florida Senate - 2017                                     SB 428
       By Senator Brandes
       24-00489A-17                                           2017428__
    1                        A bill to be entitled                      
    2         An act relating to local government participation in
    3         the Florida Retirement System; amending s. 121.051,
    4         F.S.; providing that employees of a governing body of
    5         a municipality, metropolitan planning organization, or
    6         special district that applies to participate in the
    7         Florida Retirement System on or after a certain date
    8         may enroll only in the defined contribution program;
    9         authorizing enrollment in the pension plan for
   10         employees of governing bodies that have elected or
   11         applied to participate in the Florida Retirement
   12         System before a certain date; providing for
   13         retroactive application; providing an effective date.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Paragraph (b) of subsection (2) of section
   18  121.051, Florida Statutes, is amended to read:
   19         121.051 Participation in the system.—
   20         (2) OPTIONAL PARTICIPATION.—
   21         (b)1. The governing body of any municipality, metropolitan
   22  planning organization, or special district in the state may
   23  elect to participate in the Florida Retirement System upon
   24  proper application to the administrator and may cover all of its
   25  units as approved by the Secretary of Health and Human Services
   26  and the administrator. The department shall adopt rules
   27  establishing procedures for the submission of documents
   28  necessary for such application. Before being approved for
   29  participation in the system, the governing body of a
   30  municipality, metropolitan planning organization, or special
   31  district that has a local retirement system must submit to the
   32  administrator a certified financial statement showing the
   33  condition of the local retirement system within 3 months before
   34  the proposed effective date of membership in the Florida
   35  Retirement System. The statement must be certified by a
   36  recognized accounting firm that is independent of the local
   37  retirement system. All required documents necessary for
   38  extending Florida Retirement System coverage must be received by
   39  the department for consideration at least 15 days before the
   40  proposed effective date of coverage. If the municipality,
   41  metropolitan planning organization, or special district does not
   42  comply with this requirement, the department may require that
   43  the effective date of coverage be changed.
   44         2. A municipality, metropolitan planning organization, or
   45  special district that has an existing retirement system covering
   46  the employees in the units that are to be brought under the
   47  Florida Retirement System may participate only after holding a
   48  referendum in which all employees in the affected units have the
   49  right to participate. Only those employees electing coverage
   50  under the Florida Retirement System by affirmative vote in the
   51  referendum are eligible for coverage under this chapter, and
   52  those not participating or electing not to be covered by the
   53  Florida Retirement System shall remain in their present systems
   54  and are not eligible for coverage under this chapter. After the
   55  referendum is held, all future employees are compulsory members
   56  of the Florida Retirement System.
   57         3. At the time of joining the Florida Retirement System,
   58  the governing body of a municipality, metropolitan planning
   59  organization, or special district complying with subparagraph 1.
   60  may elect to provide, or not provide, benefits based on past
   61  service of officers and employees as described in s. 121.081(1).
   62  However, if such employer elects to provide past service
   63  benefits, such benefits must be provided for all officers and
   64  employees of its covered group.
   65         4. Once this election is made and approved it may not be
   66  revoked, except pursuant to subparagraphs 6. and 7. 5. and 6.,
   67  and all present officers and employees electing coverage and all
   68  future officers and employees are compulsory members of the
   69  Florida Retirement System.
   70         5. Enrollment in the pension plan is closed to the
   71  employees of a governing body of any municipality, metropolitan
   72  planning organization, or special district that submits an
   73  application to the administrator to participate in the Florida
   74  Retirement System pursuant to this paragraph on or after January
   75  1, 2017. On or after January 1, 2017, such employees shall be
   76  enrolled in the defined contribution program established
   77  pursuant to s. 121.4501. Employees of a governing body
   78  participating, or that has applied to participate, in the
   79  Florida Retirement System before January 1, 2017, may continue
   80  or choose enrollment in the pension plan.
   81         6.5. Subject to subparagraph 7. 6., the governing body of a
   82  hospital licensed under chapter 395 which is governed by the
   83  governing body of a special district as defined in s. 189.012 or
   84  by the board of trustees of a public health trust created under
   85  s. 154.07, hereinafter referred to as “hospital district,” and
   86  which participates in the Florida Retirement System, may elect
   87  to cease participation in the system with regard to future
   88  employees in accordance with the following:
   89         a. No more than 30 days and at least 7 days before adopting
   90  a resolution to partially withdraw from the system and establish
   91  an alternative retirement plan for future employees, a public
   92  hearing must be held on the proposed withdrawal and proposed
   93  alternative plan.
   94         b. From 7 to 15 days before such hearing, notice of intent
   95  to withdraw, specifying the time and place of the hearing, must
   96  be provided in writing to employees of the hospital district
   97  proposing partial withdrawal and must be published in a
   98  newspaper of general circulation in the area affected, as
   99  provided by ss. 50.011-50.031. Proof of publication must be
  100  submitted to the Department of Management Services.
  101         c. The governing body of a hospital district seeking to
  102  partially withdraw from the system must, before such hearing,
  103  have an actuarial report prepared and certified by an enrolled
  104  actuary, as defined in s. 112.625, illustrating the cost to the
  105  hospital district of providing, through the retirement plan that
  106  the hospital district is to adopt, benefits for new employees
  107  comparable to those provided under the system.
  108         d. Upon meeting all applicable requirements of this
  109  subparagraph, and subject to subparagraph 7. 6., partial
  110  withdrawal from the system and adoption of the alternative
  111  retirement plan may be accomplished by resolution duly adopted
  112  by the hospital district board. The hospital district board must
  113  provide written notice of such withdrawal to the division by
  114  mailing a copy of the resolution to the division, postmarked by
  115  December 15, 1995. The withdrawal shall take effect January 1,
  116  1996.
  117         7.6. Following the adoption of a resolution under sub
  118  subparagraph 6.d. 5.d., all employees of the withdrawing
  119  hospital district who were members of the system before January
  120  1, 1996, shall remain as members of the system for as long as
  121  they are employees of the hospital district, and all rights,
  122  duties, and obligations between the hospital district, the
  123  system, and the employees remain in full force and effect. Any
  124  employee who is hired or appointed on or after January 1, 1996,
  125  may not participate in the system, and the withdrawing hospital
  126  district has no obligation to the system with respect to such
  127  employees.
  128         Section 2. This act shall apply retroactively to January 1,
  129  2017.
  130         Section 3. This act shall take effect upon becoming a law.