Florida Senate - 2012         (PROPOSED COMMITTEE BILL) SPB 7200
       
       
       
       FOR CONSIDERATION By the Committee on Governmental Oversight and
       Accountability
       
       
       
       585-01547-12                                          20127200__
    1                        A bill to be entitled                      
    2         An act relating to municipal police pensions; amending
    3         s. 185.02, F.S.; revising the definition of the term
    4         “compensation” or “salary”; providing an effective
    5         date.
    6  
    7  Be It Enacted by the Legislature of the State of Florida:
    8  
    9         Section 1. Subsection (4) of section 185.02, Florida
   10  Statutes, is amended to read:
   11         185.02 Definitions.—For any municipality, chapter plan,
   12  local law municipality, or local law plan under this chapter,
   13  the following words and phrases as used in this chapter shall
   14  have the following meanings, unless a different meaning is
   15  plainly required by the context:
   16         (4) “Compensation” or “salary” means, for noncollectively
   17  bargained service earned before July 1, 2011, or for service
   18  earned under collective bargaining agreements in place before
   19  July 1, 2011, the total cash remuneration including overtime
   20  paid by the primary employer to a police officer for services
   21  rendered, but not including any payments for extra duty or
   22  special detail work performed on behalf of a second party
   23  employer. A local law plan may limit the amount of overtime
   24  payments which can be used for retirement benefit calculation
   25  purposes; however, such overtime limit may not be less than 300
   26  hours per officer per calendar year. For noncollectively
   27  bargained service earned on or after July 1, 2011, or for
   28  service earned under collective bargaining agreements entered
   29  into on or after July 1, 2011, the term has the same meaning
   30  except that when calculating retirement benefits, up to 300
   31  hours per year in overtime compensation may be included as
   32  specified in the plan or collective bargaining agreement, but
   33  payments for accrued unused sick or annual leave may not be
   34  included.
   35         (a) Any retirement trust fund or plan that meets the
   36  requirements of this chapter does not, solely by virtue of this
   37  subsection, reduce or diminish the monthly retirement income
   38  otherwise payable to each police officer covered by the
   39  retirement trust fund or plan.
   40         (b) The member’s compensation or salary contributed as
   41  employee-elective salary reductions or deferrals to any salary
   42  reduction, deferred compensation, or tax-sheltered annuity
   43  program authorized under the Internal Revenue Code shall be
   44  deemed to be the compensation or salary the member would receive
   45  if he or she were not participating in such program and shall be
   46  treated as compensation for retirement purposes under this
   47  chapter.
   48         (c) For any person who first becomes a member in any plan
   49  year beginning on or after January 1, 1996, compensation for
   50  that plan year may not include any amounts in excess of the
   51  Internal Revenue Code s. 401(a)(17) limitation, as amended by
   52  the Omnibus Budget Reconciliation Act of 1993, which limitation
   53  of $150,000 shall be adjusted as required by federal law for
   54  qualified government plans and shall be further adjusted for
   55  changes in the cost of living in the manner provided by Internal
   56  Revenue Code s. 401(a)(17)(B). For any person who first became a
   57  member before the first plan year beginning on or after January
   58  1, 1996, the limitation on compensation may not be less than the
   59  maximum compensation amount that was allowed to be taken into
   60  account under the plan as in effect on July 1, 1993, which
   61  limitation shall be adjusted for changes in the cost of living
   62  since 1989 in the manner provided by Internal Revenue Code s.
   63  401(a)(17)(1991).
   64         Section 2. This act shall take effect July 1, 2012.