HB 1251

1
A bill to be entitled
2An act relating to firefighter and municipal police
3pensions; amending s. 175.032, F.S.; revising the
4definition of "firefighter"; amending s. 175.061, F.S.;
5revising terms of service for the board of trustees of the
6firefighters' pension trust fund; amending s. 175.071,
7F.S.; requiring the board of trustees to perform its
8powers subject to certain fiduciary standards and ethics
9provisions; revising the investments in which the board of
10trustees may invest and reinvest the assets of the
11firefighters' pension trust fund; authorizing two
12individuals designated by the board to sign drafts issued
13upon the firefighters' pension trust fund; authorizing the
14board to establish the maximum age for entrance into the
15fund; amending s. 185.05, F.S.; revising terms of service
16for the board of trustees of the municipal police
17officers' retirement trust fund; amending s. 185.06, F.S.;
18requiring the board of trustees to perform its powers
19subject to certain fiduciary standards and ethics
20provisions; revising the investments in which the board of
21trustees may invest and reinvest the assets of the
22retirement trust fund; authorizing two individuals
23designated by the board to sign drafts issued upon the
24municipal police officers' retirement trust fund;
25authorizing the board to establish the maximum age for
26entrance into the fund; providing for severability;
27providing an effective date.
28
29Be It Enacted by the Legislature of the State of Florida:
30
31     Section 1.  Paragraph (a) of subsection (8) of section
32175.032, Florida Statutes, is amended to read:
33     175.032  Definitions.--For any municipality, special fire
34control district, chapter plan, local law municipality, local
35law special fire control district, or local law plan under this
36chapter, the following words and phrases have the following
37meanings:
38     (8)(a)  "Firefighter" means any person employed solely by a
39constituted fire department of any municipality or special fire
40control district who is certified as a firefighter as a
41condition of employment in accordance with the provisions of s.
42633.35 and whose duty it is to extinguish fires, to protect
43life, or to protect property. "Firefighter" includes all
44certified supervisory and command personnel whose duties
45include, in whole or in part, the supervision, training,
46guidance, and management responsibilities of full-time
47firefighters, part-time firefighters, or auxiliary firefighters,
48but does not include part-time firefighters or auxiliary
49firefighters. However, for purposes of this chapter only,
50"firefighter" also includes public safety officers who are
51responsible for performing both police and fire services, who
52are certified as police officers or firefighters, and who are
53certified by their employers to the Chief Financial Officer as
54participating in this chapter prior to October 1, 1979.
55Effective October 1, 1979, public safety officers who have not
56been certified as participating in this chapter shall be
57considered police officers for retirement purposes and shall be
58eligible to participate in chapter 185. Any plan may provide
59that the fire chief shall have an option to participate, or not,
60in that plan.
61     Section 2.  Paragraph (a) of subsection (1) of section
62175.061, Florida Statutes, is amended to read:
63     175.061  Board of trustees; members; terms of office;
64meetings; legal entity; costs; attorney's fees.--For any
65municipality, special fire control district, chapter plan, local
66law municipality, local law special fire control district, or
67local law plan under this chapter:
68     (1)  In each municipality and in each special fire control
69district there is hereby created a board of trustees of the
70firefighters' pension trust fund, which shall be solely
71responsible for administering the trust fund. Effective October
721, 1986, and thereafter:
73     (a)  The membership of the board of trustees for a chapter
74plan shall consist of five members, two of whom, unless
75otherwise prohibited by law, shall be legal residents of the
76municipality or special fire control district, who shall be
77appointed by the governing body of the municipality or special
78fire control district, and two of whom shall be full-time
79firefighters as defined in s. 175.032 who shall be elected by a
80majority of the active firefighters who are members of such
81plan. With respect to any chapter plan or local law plan that,
82on January 1, 1997, allowed retired firefighters to vote in such
83elections, retirees may continue to vote in such elections. The
84fifth member shall be chosen by a majority of the previous four
85members as provided for herein, and such person's name shall be
86submitted to the governing body of the municipality or special
87fire control district. Upon receipt of the fifth person's name,
88the governing body of the municipality or special fire control
89district shall, as a ministerial duty, appoint such person to
90the board of trustees as its fifth member. The fifth member
91shall have the same rights as each of the other four members
92appointed or elected as herein provided, shall serve as trustee
93for a period of 4 2 years, and may succeed himself or herself in
94office. Each resident member shall serve as trustee for a period
95of 4 2 years, unless sooner replaced by the governing body at
96whose pleasure he or she shall serve, and may succeed himself or
97herself as a trustee. Each firefighter member shall serve as
98trustee for a period of 4 2 years, unless he or she sooner
99leaves the employment of the municipality or special fire
100control district as a firefighter, whereupon a successor shall
101be chosen in the same manner as an original appointment. Each
102firefighter may succeed himself or herself in office.
103     Section 3.  Subsection (1) of section 175.071, Florida
104Statutes, is amended to read:
105     175.071  General powers and duties of board of
106trustees.--For any municipality, special fire control district,
107chapter plan, local law municipality, local law special fire
108control district, or local law plan under this chapter:
109     (1)  The board of trustees, subject to the fiduciary
110standards in ss. 112.661 and 518.11 and the Code of Ethics in
111ss. 112.311?112.3187, may:
112     (a)  Invest and reinvest the assets of the firefighters'
113pension trust fund in annuity and life insurance contracts of
114life insurance companies in amounts sufficient to provide, in
115whole or in part, the benefits to which all of the participants
116in the firefighters' pension trust fund shall be entitled under
117the provisions of this chapter and pay the initial and
118subsequent premiums thereon.
119     (b)  Invest and reinvest the assets of the firefighters'
120pension trust fund in any lawful investment as provided in the
121applicable provisions of s. 215.47(1)-(8), (10), and (16),
122provided the investment is permitted in the written investment
123policy adopted by the board as provided in part VII of chapter
124112.:
125     1.  Time or savings accounts of a national bank, a state
126bank insured by the Bank Insurance Fund, or a savings, building,
127and loan association insured by the Savings Association
128Insurance Fund which is administered by the Federal Deposit
129Insurance Corporation or a state or federal chartered credit
130union whose share accounts are insured by the National Credit
131Union Share Insurance Fund.
132     2.  Obligations of the United States or obligations
133guaranteed as to principal and interest by the government of the
134United States.
135     3.  Bonds issued by the State of Israel.
136     4.  Bonds, stocks, or other evidences of indebtedness
137issued or guaranteed by a corporation organized under the laws
138of the United States, any state or organized territory of the
139United States, or the District of Columbia, provided:
140     a.  The corporation is listed on any one or more of the
141recognized national stock exchanges or on the National Market
142System of the NASDAQ Stock Market and, in the case of bonds
143only, holds a rating in one of the three highest classifications
144by a major rating service; and
145     b.  The board of trustees shall not invest more than 5
146percent of its assets in the common stock or capital stock of
147any one issuing company, nor shall the aggregate investment in
148any one issuing company exceed 5 percent of the outstanding
149capital stock of that company or the aggregate of its
150investments under this subparagraph at cost exceed 50 percent of
151the assets of the fund.
152
153This paragraph shall apply to all boards of trustees and
154participants. However, in the event that a municipality or
155special fire control district has a duly enacted pension plan
156pursuant to, and in compliance with, s. 175.351, and the
157trustees thereof desire to vary the investment procedures
158herein, the trustees of such plan shall request a variance of
159the investment procedures as outlined herein only through a
160municipal ordinance, special act of the Legislature, or
161resolution by the governing body of the special fire control
162district; where a special act, or a municipality by ordinance
163adopted prior to July 1, 1998, permits a greater than 50-percent
164equity investment, such municipality shall not be required to
165comply with the aggregate equity investment provisions of this
166paragraph. Notwithstanding any other provision of law to the
167contrary, nothing in this section may be construed to take away
168any preexisting legal authority to make equity investments that
169exceed the requirements of this paragraph. The board of trustees
170may invest up to 10 percent of plan assets in foreign
171securities.
172     (c)  Issue drafts upon the firefighters' pension trust fund
173pursuant to this act and rules and regulations prescribed by the
174board of trustees. All such drafts shall be consecutively
175numbered, be signed by the chair and secretary or two
176individuals designated by the board, and state upon their faces
177the purpose for which the drafts are drawn. The treasurer or
178depository of each municipality or special fire control district
179shall retain such drafts when paid, as permanent vouchers for
180disbursements made, and no money shall be otherwise drawn from
181the fund.
182     (d)  Convert into cash any securities of the fund.
183     (e)  Keep a complete record of all receipts and
184disbursements and of the board's acts and proceedings.
185     (f)  Establish the maximum age for entrance into the fund
186within the provisions of s. 112.044. In the case of conflict
187with any provision of law, this paragraph shall control in all
188matters relating to administration of firefighters' pension
189trust funds.
190     Section 4.  Paragraph (a) of subsection (1) of section
191185.05, Florida Statutes, is amended to read:
192     185.05  Board of trustees; members; terms of office;
193meetings; legal entity; costs; attorney's fees.--For any
194municipality, chapter plan, local law municipality, or local law
195plan under this chapter:
196     (1)  In each municipality described in s. 185.03 there is
197hereby created a board of trustees of the municipal police
198officers' retirement trust fund, which shall be solely
199responsible for administering the trust fund. Effective October
2001, 1986, and thereafter:
201     (a)  The membership of the board of trustees for chapter
202plans shall consist of five members, two of whom, unless
203otherwise prohibited by law, shall be legal residents of the
204municipality, who shall be appointed by the legislative body of
205the municipality, and two of whom shall be police officers as
206defined in s. 185.02 who shall be elected by a majority of the
207active police officers who are members of such plan. With
208respect to any chapter plan or local law plan that, on January
2091, 1997, allowed retired police officers to vote in such
210elections, retirees may continue to vote in such elections. The
211fifth member shall be chosen by a majority of the previous four
212members, and such person's name shall be submitted to the
213legislative body of the municipality. Upon receipt of the fifth
214person's name, the legislative body of the municipality shall,
215as a ministerial duty, appoint such person to the board of
216trustees as its fifth member. The fifth member shall have the
217same rights as each of the other four members appointed or
218elected as herein provided, shall serve as trustee for a period
219of 4 2 years, and may succeed himself or herself in office. Each
220resident member shall serve as trustee for a period of 4 2
221years, unless sooner replaced by the legislative body at whose
222pleasure the member shall serve, and may succeed himself or
223herself as a trustee. Each police officer member shall serve as
224trustee for a period of 4 2 years, unless he or she sooner
225leaves the employment of the municipality as a police officer,
226whereupon the legislative body of the municipality shall choose
227a successor in the same manner as an original appointment. Each
228police officer may succeed himself or herself in office.
229     Section 5.  Subsection (1) of section 185.06, Florida
230Statutes, is amended to read:
231     185.06  General powers and duties of board of
232trustees.--For any municipality, chapter plan, local law
233municipality, or local law plan under this chapter:
234     (1)  The board of trustees, subject to the fiduciary
235standards in ss. 112.661 and 518.11 and the Code of Ethics in
236ss. 112.311?112.3187, may:
237     (a)  Invest and reinvest the assets of the retirement trust
238fund in annuity and life insurance contracts of life insurance
239companies in amounts sufficient to provide, in whole or in part,
240the benefits to which all of the participants in the municipal
241police officers' retirement trust fund shall be entitled under
242the provisions of this chapter, and pay the initial and
243subsequent premiums thereon.
244     (b)  Invest and reinvest the assets of the retirement trust
245fund in any lawful investment as provided in the applicable
246provisions of s. 215.47(1)-(8), (10), and (16), provided the
247investment is permitted in the written investment policy adopted
248by the board as provided in part VII of chapter 112.:
249     1.  Time or savings accounts of a national bank, a state
250bank insured by the Bank Insurance Fund, or a savings and loan
251association insured by the Savings Association Insurance Fund
252which is administered by the Federal Deposit Insurance
253Corporation or a state or federal chartered credit union whose
254share accounts are insured by the National Credit Union Share
255Insurance Fund.
256     2.  Obligations of the United States or obligations
257guaranteed as to principal and interest by the United States.
258     3.  Bonds issued by the State of Israel.
259     4.  Bonds, stocks, or other evidences of indebtedness
260issued or guaranteed by a corporation organized under the laws
261of the United States, any state or organized territory of the
262United States, or the District of Columbia, provided:
263     a.  The corporation is listed on any one or more of the
264recognized national stock exchanges or on the National Market
265System of the NASDAQ Stock Market and, in the case of bonds
266only, holds a rating in one of the three highest classifications
267by a major rating service; and
268     b.  The board of trustees shall not invest more than 5
269percent of its assets in the common stock or capital stock of
270any one issuing company, nor shall the aggregate investment in
271any one issuing company exceed 5 percent of the outstanding
272capital stock of the company or the aggregate of its investments
273under this subparagraph at cost exceed 50 percent of the fund's
274assets.
275
276This paragraph shall apply to all boards of trustees and
277participants. However, in the event that a municipality has a
278duly enacted pension plan pursuant to, and in compliance with,
279s. 185.35 and the trustees thereof desire to vary the investment
280procedures herein, the trustees of such plan shall request a
281variance of the investment procedures as outlined herein only
282through a municipal ordinance or special act of the Legislature;
283where a special act, or a municipality by ordinance adopted
284prior to July 1, 1998, permits a greater than 50-percent equity
285investment, such municipality shall not be required to comply
286with the aggregate equity investment provisions of this
287paragraph. Notwithstanding any other provision of law to the
288contrary, nothing in this section may be construed to take away
289any preexisting legal authority to make equity investments that
290exceed the requirements of this paragraph. The board of trustees
291may invest up to 10 percent of plan assets in foreign
292securities.
293     (c)  Issue drafts upon the municipal police officers'
294retirement trust fund pursuant to this act and rules and
295regulations prescribed by the board of trustees. All such drafts
296shall be consecutively numbered, be signed by the chair and
297secretary or two individuals designated by the board, and state
298upon their faces the purposes for which the drafts are drawn.
299The city treasurer or other depository shall retain such drafts
300when paid, as permanent vouchers for disbursements made, and no
301money shall otherwise be drawn from the fund.
302     (d)  Finally decide all claims to relief under the board's
303rules and regulations and pursuant to the provisions of this
304act.
305     (e)  Convert into cash any securities of the fund.
306     (f)  Keep a complete record of all receipts and
307disbursements and of the board's acts and proceedings.
308     (g)  Establish the maximum age for entrance into the fund
309within the provisions of s. 112.044. In the case of conflict
310with any provision of law, this paragraph shall control in all
311matters relating to administration of municipal police officers'
312retirement trust funds.
313     Section 6.  If any provision of this act or its application
314to any person or circumstance is held invalid, the invalidity
315does not affect other provisions or applications of the act
316which can be given effect without the invalid provision or
317application, and to this end the provisions of this act are
318severable.
319     Section 7.  This act shall take effect July 1, 2006.


CODING: Words stricken are deletions; words underlined are additions.