CS for CS for SB 458                       First Engrossed (ntc)
       
       
       
       
       
       
       
       
       2013458e1
       
    1                        A bill to be entitled                      
    2         An act relating to firefighter and police officer
    3         pension plans; amending s. 175.021, F.S.; revising the
    4         legislative declaration to require all plans to meet
    5         the requirements of ch. 175, F.S., in order to receive
    6         insurance premium tax revenues; amending s. 175.032,
    7         F.S.; revising definitions to conform to changes made
    8         by the act and adding new definitions; amending s.
    9         175.071, F.S.; conforming a cross-reference; amending
   10         s. 175.091, F.S.; revising existing payment provisions
   11         and providing for an additional mandatory payment by
   12         the municipality or special fire control district to
   13         the firefighters’ pension trust fund; amending s.
   14         175.162, F.S.; deleting a limitation on state
   15         contributions funding additional benefits; amending s.
   16         175.351, F.S., relating to municipalities and special
   17         fire control districts that have their own pension
   18         plans and want to participate in the distribution of a
   19         tax fund; revising criteria governing the use of
   20         income from the premium tax; requiring plan sponsors
   21         to have a defined contribution plan in place by a
   22         certain date; authorizing a municipality to implement
   23         certain changes to a local law plan which are contrary
   24         to ch. 175, F.S., under certain time-limited
   25         circumstances; amending s. 185.01, F.S.; revising the
   26         legislative declaration to require all plans to meet
   27         the requirements of ch. 185, F.S., in order to receive
   28         insurance premium tax revenues; amending s. 185.02,
   29         F.S.; revising definitions to conform to changes made
   30         by the act and adding new definitions; deleting a
   31         provision allowing a local law plan to limit the
   32         amount of overtime payments which can be used for
   33         retirement benefit calculations; amending s. 185.06,
   34         F.S.; conforming a cross-reference; amending s.
   35         185.07, F.S.; revising existing payment provisions and
   36         providing for an additional mandatory payment by the
   37         municipality to the police officers’ retirement trust
   38         fund; amending s. 185.16, F.S.; deleting a limitation
   39         on state contributions funding additional benefits;
   40         amending s. 185.35, F.S., relating to municipalities
   41         that have their own pension plans for police officers
   42         and want to participate in the distribution of a tax
   43         fund; revising criteria governing the use of income
   44         from the premium tax; requiring plan sponsors to have
   45         a defined contribution plan in place by a certain
   46         date; authorizing a municipality to implement certain
   47         changes to a local law plan which are contrary to ch.
   48         185, F.S., under certain time-limited circumstances;
   49         providing a declaration of important state interest;
   50         providing an effective date.
   51  
   52  Be It Enacted by the Legislature of the State of Florida:
   53  
   54         Section 1. Subsection (2) of section 175.021, Florida
   55  Statutes, is amended to read:
   56         175.021 Legislative declaration.—
   57         (2) This chapter hereby establishes, for all municipal and
   58  special district pension plans existing now or hereafter under
   59  this chapter, including chapter plans and local law plans,
   60  required minimum benefits and minimum standards for the
   61  operation and funding of such plans, hereinafter referred to as
   62  firefighters’ pension trust funds, which must be met as a
   63  condition precedent to the plan or plan sponsor receiving a
   64  distribution of insurance premium tax revenues under s. 175.121.
   65  The required minimum benefits and minimum standards for each
   66  plan as set forth in this chapter may not be diminished by local
   67  charter, ordinance, or resolution or by special act of the
   68  Legislature, or nor may the minimum benefits or minimum
   69  standards be reduced or offset by any other local, state, or
   70  federal law that may include firefighters in its operation,
   71  except as provided under s. 112.65.
   72         Section 2. Section 175.032, Florida Statutes, is amended to
   73  read:
   74         175.032 Definitions.—For any municipality, special fire
   75  control district, chapter plan, local law municipality, local
   76  law special fire control district, or local law plan under this
   77  chapter, the term following words and phrases have the following
   78  meanings:
   79         (1) “Additional premium tax revenues” means revenues
   80  received by a municipality or special fire control district
   81  pursuant to s. 175.121 which exceed base premium tax revenues.
   82         (2)(1)(a) “Average final compensation” for:
   83         (a) A full-time firefighter means one-twelfth of the
   84  average annual compensation of the 5 best years of the last 10
   85  years of creditable service before prior to retirement,
   86  termination, or death, or the career average as a full-time
   87  firefighter since July 1, 1953, whichever is greater. A year is
   88  shall be 12 consecutive months or such other consecutive period
   89  of time as is used and consistently applied.
   90         (b) “Average final compensation” for A volunteer
   91  firefighter means the average salary of the 5 best years of the
   92  last 10 best contributing years before a prior to change in
   93  status to a permanent full-time firefighter or retirement as a
   94  volunteer firefighter or the career average of a volunteer
   95  firefighter, since July 1, 1953, whichever is greater.
   96         (3) “Base benefits” means the level of benefits in
   97  existence for firefighters on March 12, 1999.
   98         (4) “Base premium tax revenues” means revenues received by
   99  a municipality or special fire control district pursuant to s.
  100  175.121 equal to the amount of such revenues received for
  101  calendar year 1997.
  102         (5)(2) “Chapter plan” means a separate defined benefit
  103  pension plan for firefighters which incorporates by reference
  104  the provisions of this chapter and has been adopted by the
  105  governing body of a municipality or special district. Except as
  106  may be specifically authorized in this chapter, the provisions
  107  of a chapter plan may not differ from the plan provisions set
  108  forth in ss. 175.021-175.341 and 175.361-175.401. Actuarial
  109  valuations of chapter plans shall be conducted by the division
  110  as provided by s. 175.261(1).
  111         (6)(3) “Compensation” or “salary” means, for
  112  noncollectively bargained service earned before July 1, 2011, or
  113  for service earned under collective bargaining agreements in
  114  place before July 1, 2011, the fixed monthly remuneration paid a
  115  firefighter. If remuneration is based on actual services
  116  rendered, as in the case of a volunteer firefighter, the term
  117  means the total cash remuneration received yearly for such
  118  services, prorated on a monthly basis. For noncollectively
  119  bargained service earned on or after July 1, 2011, or for
  120  service earned under collective bargaining agreements entered
  121  into on or after July 1, 2011, the term has the same meaning
  122  except that when calculating retirement benefits, up to 300
  123  hours per year in overtime compensation may be included as
  124  specified in the plan or collective bargaining agreement, but
  125  payments for accrued unused sick or annual leave may not be
  126  included.
  127         (a) Any retirement trust fund or plan that meets the
  128  requirements of this chapter does not, solely by virtue of this
  129  subsection, reduce or diminish the monthly retirement income
  130  otherwise payable to each firefighter covered by the retirement
  131  trust fund or plan.
  132         (b) The member’s compensation or salary contributed as
  133  employee-elective salary reductions or deferrals to any salary
  134  reduction, deferred compensation, or tax-sheltered annuity
  135  program authorized under the Internal Revenue Code shall be
  136  deemed to be the compensation or salary the member would receive
  137  if he or she were not participating in such program and shall be
  138  treated as compensation for retirement purposes under this
  139  chapter.
  140         (c) For any person who first becomes a member in any plan
  141  year beginning on or after January 1, 1996, compensation for
  142  that plan year may not include any amounts in excess of the
  143  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  144  the Omnibus Budget Reconciliation Act of 1993, which limitation
  145  of $150,000 shall be adjusted as required by federal law for
  146  qualified government plans and shall be further adjusted for
  147  changes in the cost of living in the manner provided by Internal
  148  Revenue Code s. 401(a)(17)(B). For any person who first became a
  149  member before the first plan year beginning on or after January
  150  1, 1996, the limitation on compensation may not be less than the
  151  maximum compensation amount that was allowed to be taken into
  152  account under the plan in effect on July 1, 1993, which
  153  limitation shall be adjusted for changes in the cost of living
  154  since 1989 in the manner provided by Internal Revenue Code s.
  155  401(a)(17)(1991).
  156         (7)(4) “Creditable service” or “credited service” means the
  157  aggregate number of years of service, and fractional parts of
  158  years of service, of any firefighter, omitting intervening years
  159  and fractional parts of years when such firefighter may not have
  160  been employed by the municipality or special fire control
  161  district, subject to the following conditions:
  162         (a) A No firefighter may not will receive credit for years
  163  or fractional parts of years of service if he or she has
  164  withdrawn his or her contributions to the fund for those years
  165  or fractional parts of years of service, unless the firefighter
  166  repays into the fund the amount he or she has withdrawn, plus
  167  interest determined by the board. The member shall have at least
  168  90 days after his or her reemployment to make repayment.
  169         (b) A firefighter may voluntarily leave his or her
  170  contributions in the fund for a period of 5 years after leaving
  171  the employ of the fire department, pending the possibility of
  172  being rehired by the same department, without losing credit for
  173  the time he or she has participated actively as a firefighter.
  174  If the firefighter is not reemployed as a firefighter, with the
  175  same department, within 5 years, his or her contributions shall
  176  be returned without interest.
  177         (c) Credited service under this chapter shall be provided
  178  only for service as a firefighter, as defined in subsection (8),
  179  or for military service and does not include credit for any
  180  other type of service. A municipality may, by local ordinance,
  181  or a special fire control district may, by resolution, may
  182  provide for the purchase of credit for military service prior to
  183  employment as well as for prior service as a firefighter for
  184  some other employer as long as a firefighter is not entitled to
  185  receive a benefit for such prior service as a firefighter. For
  186  purposes of determining credit for prior service as a
  187  firefighter, in addition to service as a firefighter in this
  188  state, credit may be given for federal, other state, or county
  189  service if the prior service is recognized by the Division of
  190  State Fire Marshal as provided under chapter 633, or the
  191  firefighter provides proof to the board of trustees that his or
  192  her service is equivalent to the service required to meet the
  193  definition of a firefighter under subsection (12) (8).
  194         (8)(5) “Deferred Retirement Option Plan” or “DROP” means a
  195  local law plan retirement option in which a firefighter may
  196  elect to participate. A firefighter may retire for all purposes
  197  of the plan and defer receipt of retirement benefits into a DROP
  198  account while continuing employment with his or her employer.
  199  However, a firefighter who enters the DROP and who is otherwise
  200  eligible to participate may shall not thereby be precluded from
  201  participating, or continuing to participate, in a supplemental
  202  plan in existence on, or created after, March 12, 1999 the
  203  effective date of this act.
  204         (9) “Defined contribution plan” means the component of a
  205  local law plan to which deposits are made to provide benefits
  206  for firefighters, or for firefighters and police officers if
  207  both are included. Such component is an element of a local law
  208  plan and exists in conjunction with the defined benefit
  209  component that meets the required benefits and minimum standards
  210  of this chapter. The retirement benefits of the defined
  211  contribution plan shall be provided through individual member
  212  accounts, in accordance with the applicable provisions of the
  213  Internal Revenue Code and related regulations, and are limited
  214  to the contributions made into each member’s account and the
  215  actual accumulated earnings, net of expenses, earned on the
  216  member’s account.
  217         (10)(6) “Division” means the Division of Retirement of the
  218  Department of Management Services.
  219         (11)(7) “Enrolled actuary” means an actuary who is enrolled
  220  under Subtitle C of Title III of the Employee Retirement Income
  221  Security Act of 1974 and who is a member of the Society of
  222  Actuaries or the American Academy of Actuaries.
  223         (12)(8)(a) “Firefighter” means any person employed solely
  224  by a constituted fire department of any municipality or special
  225  fire control district who is certified as a firefighter as a
  226  condition of employment in accordance with s. 633.35 and whose
  227  duty it is to extinguish fires, to protect life, or to protect
  228  property. The term includes all certified, supervisory, and
  229  command personnel whose duties include, in whole or in part, the
  230  supervision, training, guidance, and management responsibilities
  231  of full-time firefighters, part-time firefighters, or auxiliary
  232  firefighters but does not include part-time firefighters or
  233  auxiliary firefighters. However, for purposes of this chapter
  234  only, the term also includes public safety officers who are
  235  responsible for performing both police and fire services, who
  236  are certified as police officers or firefighters, and who are
  237  certified by their employers to the Chief Financial Officer as
  238  participating in this chapter before October 1, 1979. Effective
  239  October 1, 1979, public safety officers who have not been
  240  certified as participating in this chapter are considered police
  241  officers for retirement purposes and are eligible to participate
  242  in chapter 185. Any plan may provide that the fire chief has an
  243  option to participate, or not, in that plan.
  244         (b) “Volunteer firefighter” means any person whose name is
  245  carried on the active membership roll of a constituted volunteer
  246  fire department or a combination of a paid and volunteer fire
  247  department of any municipality or special fire control district
  248  and whose duty it is to extinguish fires, to protect life, and
  249  to protect property. Compensation for services rendered by a
  250  volunteer firefighter does shall not disqualify him or her as a
  251  volunteer. A person may shall not be disqualified as a volunteer
  252  firefighter solely because he or she has other gainful
  253  employment. Any person who volunteers assistance at a fire but
  254  is not an active member of a department described herein is not
  255  a volunteer firefighter within the meaning of this paragraph.
  256         (13)(9) “Firefighters’ Pension Trust Fund” means a trust
  257  fund, by whatever name known, as provided under s. 175.041, for
  258  the purpose of assisting municipalities and special fire control
  259  districts in establishing and maintaining a retirement plan for
  260  firefighters.
  261         (14)(10) “Local law municipality” is any municipality in
  262  which there exists a local law plan exists.
  263         (15)(11) “Local law plan” means a retirement defined
  264  benefit pension plan, which includes both a defined benefit plan
  265  component and a defined contribution plan component, for
  266  firefighters, or for firefighters or police officers if both are
  267  where included, as described in s. 175.351, established by
  268  municipal ordinance, special district resolution, or special act
  269  of the Legislature, which enactment sets forth all plan
  270  provisions. Local law plan provisions may vary from the
  271  provisions of this chapter if the, provided that required
  272  minimum benefits and minimum standards of this chapter are met.
  273  However, any such variance must shall provide a greater benefit
  274  for firefighters. Actuarial valuations of local law plans shall
  275  be conducted by an enrolled actuary as provided in s.
  276  175.261(2).
  277         (16)(12) “Local law special fire control district” is any
  278  special fire control district in which there exists a local law
  279  plan exists.
  280         (17) “Long-term funded ratio” or “funded ratio” means the
  281  ratio of the actuarial value of assets of the plan to the
  282  actuarial accrued liabilities of the plan, as reported in the
  283  most recent actuarial valuation of the plan, deemed to be in
  284  compliance with chapter 112 by the Department of Management
  285  Services.
  286         (18) “Minimum benefits” means the benefits set forth in ss.
  287  175.021-175.341 and ss. 175.361-175.401.
  288         (19) “Minimum standards” means the standards set forth in
  289  ss. 175.021-175.341 and ss. 175.361-175.401.
  290         (20)(13) “Property insurance” means property insurance as
  291  defined in s. 624.604 and covers real and personal property
  292  within the corporate limits of a any municipality, or within the
  293  boundaries of a any special fire control district, within the
  294  state. “Multiple peril” means a combination or package policy
  295  that includes both property and casualty coverage for a single
  296  premium.
  297         (21) “Required benefits” means the base benefits of the
  298  plan. For local law plans created after March 12, 1999, the
  299  required benefits are the minimum benefits set forth in this
  300  chapter.
  301         (22)(14) “Retiree” or “retired firefighter” means a
  302  firefighter who has entered retirement status. For the purposes
  303  of a plan that includes a Deferred Retirement Option Plan
  304  (DROP), a firefighter who enters the DROP is shall be considered
  305  a retiree for all purposes of the plan. However, a firefighter
  306  who enters the DROP and who is otherwise eligible to participate
  307  may shall not thereby be precluded from participating, or
  308  continuing to participate, in a supplemental plan in existence
  309  on, or created after, March 12, 1999 the effective date of this
  310  act.
  311         (23)(15) “Retirement” means a firefighter’s separation from
  312  city or fire district employment as a firefighter with immediate
  313  eligibility for receipt of benefits under the plan. For purposes
  314  of a plan that includes a Deferred Retirement Option Plan
  315  (DROP), “retirement” means the date a firefighter enters the
  316  DROP.
  317         (24) “Special benefits” means benefits provided in a
  318  defined contribution plan for firefighters.
  319         (25)(16) “Special fire control district” means a special
  320  district, as defined in s. 189.403(1), established for the
  321  purposes of extinguishing fires, protecting life, and protecting
  322  property within the incorporated or unincorporated portions of a
  323  any county or combination of counties, or within any combination
  324  of incorporated and unincorporated portions of a any county or
  325  combination of counties. The term does not include any dependent
  326  or independent special district, as those terms are defined in
  327  s. 189.403(2) and (3), respectively, the employees of which are
  328  members of the Florida Retirement System pursuant to s.
  329  121.051(1) or (2).
  330         (26)(17) “Supplemental plan” means a plan to which deposits
  331  are made to provide extra benefits for firefighters, or for
  332  firefighters and police officers if both are where included
  333  under this chapter. Such a plan is an element of a local law
  334  plan and exists in conjunction with a defined benefit component
  335  plan that meets the required minimum benefits and minimum
  336  standards of this chapter. Any supplemental plan in existence on
  337  March 1, 2013, shall be deemed to be a defined contribution plan
  338  in compliance with s. 175.351(8).
  339         (27)(18) “Supplemental plan municipality” means a any local
  340  law municipality in which there existed a supplemental plan
  341  existed, of any type or nature, as of December 1, 2000.
  342         Section 3. Paragraph (b) of subsection (7) of section
  343  175.071, Florida Statutes, is amended to read:
  344         175.071 General powers and duties of board of trustees.—For
  345  any municipality, special fire control district, chapter plan,
  346  local law municipality, local law special fire control district,
  347  or local law plan under this chapter:
  348         (7) To assist the board in meeting its responsibilities
  349  under this chapter, the board, if it so elects, may:
  350         (b) Employ an independent enrolled actuary, as defined in
  351  s. 175.032(7), at the pension fund’s expense.
  352  
  353  If the board chooses to use the municipality’s or special
  354  district’s legal counsel or actuary, or chooses to use any of
  355  the municipality’s or special district’s other professional,
  356  technical, or other advisers, it must do so only under terms and
  357  conditions acceptable to the board.
  358         Section 4. Paragraphs (d) through (g) of subsection (1) of
  359  section 175.091, Florida Statutes, are amended, and a new
  360  paragraph (e) is added to that subsection, to read:
  361         175.091 Creation and maintenance of fund.—For any
  362  municipality, special fire control district, chapter plan, local
  363  law municipality, local law special fire control district, or
  364  local law plan under this chapter:
  365         (1) The firefighters’ pension trust fund in each
  366  municipality and in each special fire control district shall be
  367  created and maintained in the following manner:
  368         (d) By mandatory payment by the municipality or special
  369  fire control district of a sum equal to the normal cost of and
  370  the amount required to fund any actuarial deficiency shown by an
  371  actuarial valuation as provided in part VII of chapter 112 after
  372  taking into account the amounts described in paragraphs (b),
  373  (c), (f), (g), and (h) and the amounts of the tax proceeds
  374  described in paragraph (a) which must be used to fund defined
  375  benefit plan benefits, except as otherwise excluded from
  376  consideration in determining the mandatory payment.
  377         (e) For local law plans, and in addition to the mandatory
  378  payment specified in paragraph (d), by mandatory payment by the
  379  municipality or special fire control district of the amount
  380  specified in s. 175.351(3), if the long-term funded ratio of the
  381  plan is less than 80 percent.
  382         (f)(e) By all gifts, bequests, and devises when donated to
  383  the fund.
  384         (g)(f) By all accretions to the fund by way of interest or
  385  dividends on bank deposits, or otherwise.
  386         (h)(g) By all other sources or income now or hereafter
  387  authorized by law for the augmentation of such firefighters’
  388  pension trust fund.
  389  
  390  Nothing in this section shall be construed to require adjustment
  391  of member contribution rates in effect on the date this act
  392  becomes a law, including rates that exceed 5 percent of salary,
  393  provided that such rates are at least one-half of 1 percent of
  394  salary.
  395         Section 5. Paragraph (a) of subsection (2) of section
  396  175.162, Florida Statutes, is amended to read:
  397         175.162 Requirements for retirement.—For any municipality,
  398  special fire control district, chapter plan, local law
  399  municipality, local law special fire control district, or local
  400  law plan under this chapter, any firefighter who completes 10 or
  401  more years of creditable service as a firefighter and attains
  402  age 55, or completes 25 years of creditable service as a
  403  firefighter and attains age 52, and who for such minimum period
  404  has been a member of the firefighters’ pension trust fund
  405  operating under a chapter plan or local law plan, is eligible
  406  for normal retirement benefits. Normal retirement under the plan
  407  is retirement from the service of the municipality or special
  408  fire control district on or after the normal retirement date. In
  409  such event, payment of retirement income will be governed by the
  410  following provisions of this section:
  411         (2)(a) The amount of monthly retirement income payable to a
  412  full-time firefighter who retires on or after his or her normal
  413  retirement date shall be an amount equal to the number of his or
  414  her years of credited service multiplied by 2 percent of his or
  415  her average final compensation as a full-time firefighter.
  416  However, if current state contributions pursuant to this chapter
  417  are not adequate to fund the additional benefits to meet the
  418  minimum requirements in this chapter, only such incremental
  419  increases shall be required as state moneys are adequate to
  420  provide. Such increments shall be provided as state moneys
  421  become available.
  422         Section 6. Section 175.351, Florida Statutes, is amended to
  423  read:
  424         175.351 Municipalities and special fire control districts
  425  that have having their own pension plans for firefighters.—For
  426  any municipality, special fire control district, local law
  427  municipality, local law special fire control district, or local
  428  law plan under this chapter, In order for a municipality or
  429  municipalities and special fire control district that has its
  430  districts with their own pension plan plans for firefighters, or
  431  for firefighters and police officers if both are included, to
  432  participate in the distribution of the tax fund established
  433  under pursuant to s. 175.101, a local law plan and its plan
  434  sponsor plans must meet the required minimum benefits and
  435  minimum standards set forth in this chapter.
  436         (1) If a municipality has a pension plan for firefighters,
  437  or a pension plan for firefighters and police officers if both
  438  are included, which in the opinion of the division meets the
  439  required minimum benefits and minimum standards set forth in
  440  this chapter, the board of trustees of the pension plan must, as
  441  approved by a majority of firefighters of the municipality, may:
  442         (a) place the income from the premium tax in s. 175.101 in
  443  such pension plan for the sole and exclusive use of its
  444  firefighters, or for firefighters and police officers if both
  445  are included, where it shall become an integral part of that
  446  pension plan and shall be used to fund benefits as follows:
  447         (a) The base premium tax revenues must be used to fund
  448  required benefits. To the extent the base premium tax revenues
  449  exceed the annual actuarial cost of the plan’s required
  450  benefits, such revenues may be used to fund the plan’s base
  451  benefits, or a portion thereof, if the plan’s base benefits are
  452  greater than the plan’s required benefits. Otherwise, such
  453  excess revenues must be used as directed in paragraph (b).
  454         (b) Of the additional premium tax revenues received which
  455  are in excess of the amount received for the 2012 calendar year
  456  and any accumulations of additional tax revenues which have not
  457  been applied to fund benefits in excess of the plan’s base
  458  benefits:
  459         1. If the plan has a supplemental plan in effect as of
  460  September 30, 2012, whereby all premium tax revenues received in
  461  excess of the amount received for the 2012 calendar year are
  462  scheduled to be used to fund defined contribution plan benefits
  463  and:
  464         a. If the plan has a long-term funded ratio of less than 70
  465  percent, 50 percent of the additional premium tax revenues
  466  subject to this paragraph must be used as additional
  467  contributions to pay the plan’s actuarial deficiency and the
  468  remainder must be used to fund special benefits; or
  469         b. If the plan has a long-term funded ratio of 70 percent
  470  or greater, the additional premium tax revenues subject to this
  471  paragraph must be used to fund special benefits.
  472         2. If subparagraph 1. is not applicable and the plan has a
  473  long-term funded ratio of less than 80 percent:
  474         a. Fifty percent of the additional premium tax revenues
  475  subject to this paragraph must be used as additional
  476  contributions to pay the plan’s actuarial deficiency;
  477         b. Twenty-five percent of the additional premium tax
  478  revenues subject to this paragraph must be used to fund base
  479  benefits; and
  480         c. The remainder must be placed in a defined contribution
  481  plan to fund special benefits.
  482         3. If subparagraph 1. is not applicable and the plan has a
  483  long-term funded ratio of 80 percent or greater:
  484         a. Fifty percent of the additional premium tax revenues
  485  subject to this paragraph must be used to fund base benefits;
  486  and
  487         b. The remainder must be placed in a defined contribution
  488  plan to fund special benefits.
  489  
  490  Any additional premium tax revenues used to fund the plan’s
  491  actuarial deficiency pursuant to this paragraph may not be
  492  considered in determining the mandatory payment described in s.
  493  175.091(1)(d).
  494         (c) Additional premium tax revenues not described in
  495  paragraph (b) must be used to fund benefits that were not
  496  included in the base benefits to pay extra benefits to the
  497  firefighters included in that pension plan; or
  498         (b) Place the income from the premium tax in s. 175.101 in
  499  a separate supplemental plan to pay extra benefits to
  500  firefighters, or to firefighters and police officers if
  501  included, participating in such separate supplemental plan.
  502         (2) Insurance premium tax revenues may not be used to fund
  503  benefits provided in a defined benefit plan which were not
  504  provided by the plan as of March 1, 2013; however, for a local
  505  law plan created after March 1, 2013, up to 50 percent of the
  506  insurance premium tax revenues may be used to fund defined
  507  benefit plan component benefits and the remainder must be used
  508  to fund defined contribution plan component benefits.
  509         (3) If a plan offers benefits in excess of its required
  510  benefits, such benefits may be reduced if the plan continues to
  511  meet the required benefits of the plan and the minimum standards
  512  set forth in this chapter. The amount of insurance premium tax
  513  revenues previously used to fund benefits in excess of the
  514  plan’s required benefits before the reduction must be used as
  515  provided in subsection (1)(b). Twenty-five percent of the amount
  516  of any mandatory contribution paid by the municipality or
  517  special fire control district which was previously used to fund
  518  benefits above the level of required benefits provided before
  519  the reduction must be used as additional contributions as
  520  specified in s. 175.091 to fund the plan’s actuarial deficiency.
  521         (4)(2) The premium tax provided by this chapter shall in
  522  all cases be used in its entirety to provide retirement extra
  523  benefits to firefighters, or to firefighters and police officers
  524  if both are included. However, local law plans in effect on
  525  October 1, 1998, must comply with the minimum benefit provisions
  526  of this chapter only to the extent that additional premium tax
  527  revenues become available to incrementally fund the cost of such
  528  compliance as provided in s. 175.162(2)(a). If a plan is in
  529  compliance with such minimum benefit provisions, as subsequent
  530  additional premium tax revenues become available, they must be
  531  used to provide extra benefits. Local law plans created by
  532  special act before May 27, 1939, are deemed to comply with this
  533  chapter. For the purpose of this chapter, the term:
  534         (a) “Additional premium tax revenues” means revenues
  535  received by a municipality or special fire control district
  536  pursuant to s. 175.121 which exceed that amount received for
  537  calendar year 1997.
  538         (b) “Extra benefits” means benefits in addition to or
  539  greater than those provided to general employees of the
  540  municipality and in addition to those in existence for
  541  firefighters on March 12, 1999.
  542         (5)(3) A retirement plan or amendment to a retirement plan
  543  may not be proposed for adoption unless the proposed plan or
  544  amendment contains an actuarial estimate of the costs involved.
  545  Such proposed plan or proposed plan change may not be adopted
  546  without the approval of the municipality, special fire control
  547  district, or, where permitted, the Legislature. Copies of the
  548  proposed plan or proposed plan change and the actuarial impact
  549  statement of the proposed plan or proposed plan change shall be
  550  furnished to the division before the last public hearing
  551  thereon. Such statement must also indicate whether the proposed
  552  plan or proposed plan change is in compliance with s. 14, Art. X
  553  of the State Constitution and those provisions of part VII of
  554  chapter 112 which are not expressly provided in this chapter.
  555  Notwithstanding any other provision, only those local law plans
  556  created by special act of legislation before May 27, 1939, are
  557  deemed to meet the minimum benefits and minimum standards only
  558  in this chapter.
  559         (6)(4) Notwithstanding any other provision, with respect to
  560  any supplemental plan municipality:
  561         (a) A local law plan and a supplemental plan may continue
  562  to use their definition of compensation or salary in existence
  563  on March 12, 1999.
  564         (b) Section 175.061(1)(b) does not apply, and a local law
  565  plan and a supplemental plan shall continue to be administered
  566  by a board or boards of trustees numbered, constituted, and
  567  selected as the board or boards were numbered, constituted, and
  568  selected on December 1, 2000.
  569         (c) The election set forth in paragraph (1)(b) is deemed to
  570  have been made.
  571         (7)(5) The retirement plan setting forth the benefits and
  572  the trust agreement, if any, covering the duties and
  573  responsibilities of the trustees and the regulations of the
  574  investment of funds must be in writing, and copies made
  575  available to the participants and to the general public.
  576         (8) In addition to the defined benefit component of the
  577  local law plan, each plan sponsor must have a defined
  578  contribution plan component within the local law plan by October
  579  1, 2013, or upon the creation date of a new participating plan.
  580  However, the plan sponsor of any plan established by special act
  581  of the Legislature has until July 1, 2014, to create a defined
  582  contribution component within the plan.
  583         (9) Notwithstanding any other provision of this chapter, a
  584  municipality or special fire control district that has
  585  implemented or proposed changes to a local law plan based on the
  586  municipality’s or district’s reliance on an interpretation of
  587  this chapter by the department on or after August 14, 2012, and
  588  before February 1, 2013, may continue the implemented changes or
  589  continue to implement proposed changes. Such reliance must be
  590  evidenced by a written collective bargaining proposal,
  591  collective bargaining agreement, or formal correspondence
  592  between the municipality or district and the department which
  593  describes the specific changes to the local law plan, with the
  594  initial proposal, agreement, or correspondence from the
  595  municipality or district dated prior to February 1, 2013. The
  596  changes to the local law plan that are otherwise contrary to the
  597  provisions of this chapter may continue in effect until the
  598  earlier of October 1, 2016, or the effective date of a
  599  collective bargaining agreement that is contrary to the changes
  600  to the local law plan.
  601         Section 7. Subsection (2) of section 185.01, Florida
  602  Statutes, is amended to read:
  603         185.01 Legislative declaration.—
  604         (2) This chapter hereby establishes, for all municipal
  605  pension plans now or hereinafter provided for under this
  606  chapter, including chapter plans and local law plans, required
  607  minimum benefits and minimum standards for the operation and
  608  funding of such plans, hereinafter referred to as municipal
  609  police officers’ retirement trust funds, which must be met as a
  610  condition precedent to the plan or plan sponsor receiving a
  611  distribution of insurance premium tax revenues under s. 185.10.
  612  The required minimum benefits and minimum standards for each
  613  plan as set forth in this chapter may not be diminished by local
  614  ordinance or by special act of the Legislature, or nor may the
  615  minimum benefits or minimum standards be reduced or offset by
  616  any other local, state, or federal plan that may include police
  617  officers in its operation, except as provided under s. 112.65.
  618         Section 8. Section 185.02, Florida Statutes, is amended to
  619  read:
  620         185.02 Definitions.—For any municipality, chapter plan,
  621  local law municipality, or local law plan under this chapter,
  622  the term following words and phrases as used in this chapter
  623  shall have the following meanings, unless a different meaning is
  624  plainly required by the context:
  625         (1) “Additional premium tax revenues” means revenues
  626  received by a municipality pursuant to s. 185.10 which exceed
  627  base premium tax revenues.
  628         (2)(1) “Average final compensation” means one-twelfth of
  629  the average annual compensation of the 5 best years of the last
  630  10 years of creditable service prior to retirement, termination,
  631  or death.
  632         (3) “Base benefits” means the level of benefits in
  633  existence for police officers on March 12, 1999.
  634         (4) “Base premium tax revenues” means revenues received by
  635  a municipality pursuant to s. 185.10 equal to the amount of such
  636  revenues received for calendar year 1997.
  637         (5)(2) “Casualty insurance” means automobile public
  638  liability and property damage insurance to be applied at the
  639  place of residence of the owner, or if the subject is a
  640  commercial vehicle, to be applied at the place of business of
  641  the owner; automobile collision insurance; fidelity bonds;
  642  burglary and theft insurance; and plate glass insurance.
  643  “Multiple peril” means a combination or package policy that
  644  includes both property coverage and casualty coverage for a
  645  single premium.
  646         (6)(3) “Chapter plan” means a separate defined benefit
  647  pension plan for police officers which incorporates by reference
  648  the provisions of this chapter and has been adopted by the
  649  governing body of a municipality as provided in s. 185.08.
  650  Except as may be specifically authorized in this chapter, the
  651  provisions of a chapter plan may not differ from the plan
  652  provisions set forth in ss. 185.01-185.341 and 185.37-185.39.
  653  Actuarial valuations of chapter plans shall be conducted by the
  654  division as provided by s. 185.221(1)(b).
  655         (7)(4) “Compensation” or “salary” means, for
  656  noncollectively bargained service earned before July 1, 2011, or
  657  for service earned under collective bargaining agreements in
  658  place before July 1, 2011, the total cash remuneration including
  659  “overtime” paid by the primary employer to a police officer for
  660  services rendered, but not including any payments for extra duty
  661  or special detail work performed on behalf of a second party
  662  employer. A local law plan may limit the amount of overtime
  663  payments which can be used for retirement benefit calculation
  664  purposes; however, such overtime limit may not be less than 300
  665  hours per officer per calendar year. For noncollectively
  666  bargained service earned on or after July 1, 2011, or for
  667  service earned under collective bargaining agreements entered
  668  into on or after July 1, 2011, the term has the same meaning
  669  except that when calculating retirement benefits, up to 300
  670  hours per year in overtime compensation may be included as
  671  specified in the plan or collective bargaining agreement, but
  672  payments for accrued unused sick or annual leave may not be
  673  included.
  674         (a) Any retirement trust fund or plan that meets the
  675  requirements of this chapter does not, solely by virtue of this
  676  subsection, reduce or diminish the monthly retirement income
  677  otherwise payable to each police officer covered by the
  678  retirement trust fund or plan.
  679         (b) The member’s compensation or salary contributed as
  680  employee-elective salary reductions or deferrals to any salary
  681  reduction, deferred compensation, or tax-sheltered annuity
  682  program authorized under the Internal Revenue Code shall be
  683  deemed to be the compensation or salary the member would receive
  684  if he or she were not participating in such program and shall be
  685  treated as compensation for retirement purposes under this
  686  chapter.
  687         (c) For any person who first becomes a member in any plan
  688  year beginning on or after January 1, 1996, compensation for
  689  that plan year may not include any amounts in excess of the
  690  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  691  the Omnibus Budget Reconciliation Act of 1993, which limitation
  692  of $150,000 shall be adjusted as required by federal law for
  693  qualified government plans and shall be further adjusted for
  694  changes in the cost of living in the manner provided by Internal
  695  Revenue Code s. 401(a)(17)(B). For any person who first became a
  696  member before the first plan year beginning on or after January
  697  1, 1996, the limitation on compensation may not be less than the
  698  maximum compensation amount that was allowed to be taken into
  699  account under the plan as in effect on July 1, 1993, which
  700  limitation shall be adjusted for changes in the cost of living
  701  since 1989 in the manner provided by Internal Revenue Code s.
  702  401(a)(17)(1991).
  703         (8)(5) “Creditable service” or “credited service” means the
  704  aggregate number of years of service and fractional parts of
  705  years of service of any police officer, omitting intervening
  706  years and fractional parts of years when such police officer may
  707  not have been employed by the municipality subject to the
  708  following conditions:
  709         (a) A No police officer may not will receive credit for
  710  years or fractional parts of years of service if he or she has
  711  withdrawn his or her contributions to the fund for those years
  712  or fractional parts of years of service, unless the police
  713  officer repays into the fund the amount he or she has withdrawn,
  714  plus interest as determined by the board. The member has shall
  715  have at least 90 days after his or her reemployment to make
  716  repayment.
  717         (b) A police officer may voluntarily leave his or her
  718  contributions in the fund for a period of 5 years after leaving
  719  the employ of the police department, pending the possibility of
  720  his or her being rehired by the same department, without losing
  721  credit for the time he or she has participated actively as a
  722  police officer. If he or she is not reemployed as a police
  723  officer with the same department within 5 years, his or her
  724  contributions shall be returned to him or her without interest.
  725         (c) Credited service under this chapter shall be provided
  726  only for service as a police officer, as defined in subsection
  727  (11), or for military service and may not include credit for any
  728  other type of service. A municipality may, by local ordinance,
  729  may provide for the purchase of credit for military service
  730  occurring before employment as well as prior service as a police
  731  officer for some other employer as long as the police officer is
  732  not entitled to receive a benefit for such other prior service
  733  as a police officer. For purposes of determining credit for
  734  prior service, in addition to service as a police officer in
  735  this state, credit may be given for federal, other state, or
  736  county service as long as such service is recognized by the
  737  Criminal Justice Standards and Training Commission within the
  738  Department of Law Enforcement as provided under chapter 943 or
  739  the police officer provides proof to the board of trustees that
  740  such service is equivalent to the service required to meet the
  741  definition of a police officer under subsection (16) (11).
  742         (d) In determining the creditable service of a any police
  743  officer, credit for up to 5 years of the time spent in the
  744  military service of the Armed Forces of the United States shall
  745  be added to the years of actual service, if:
  746         1. The police officer is in the active employ of the
  747  municipality before prior to such service and leaves a position,
  748  other than a temporary position, for the purpose of voluntary or
  749  involuntary service in the Armed Forces of the United States.
  750         2. The police officer is entitled to reemployment under the
  751  provisions of the Uniformed Services Employment and Reemployment
  752  Rights Act.
  753         3. The police officer returns to his or her employment as a
  754  police officer of the municipality within 1 year after from the
  755  date of his or her release from such active service.
  756         (9)(6) “Deferred Retirement Option Plan” or “DROP” means a
  757  local law plan retirement option in which a police officer may
  758  elect to participate. A police officer may retire for all
  759  purposes of the plan and defer receipt of retirement benefits
  760  into a DROP account while continuing employment with his or her
  761  employer. However, a police officer who enters the DROP and who
  762  is otherwise eligible to participate may shall not thereby be
  763  precluded from participating, or continuing to participate, in a
  764  supplemental plan in existence on, or created after, March 12,
  765  1999 the effective date of this act.
  766         (10) “Defined contribution plan” means the component of a
  767  local law plan to which deposits are made to provide benefits
  768  for police officers, or for police officers and firefighters if
  769  both are included. Such component is an element of a local law
  770  plan and exists in conjunction with the defined benefit
  771  component that meets the required benefits and minimum standards
  772  of this chapter. The retirement benefits of the defined
  773  contribution plan shall be provided through individual member
  774  accounts, in accordance with the applicable provisions of the
  775  Internal Revenue Code and related regulations, and are limited
  776  to the contributions made into each member’s account and the
  777  actual accumulated earnings, net of expenses, earned on the
  778  member’s account.
  779         (11)(7) “Division” means the Division of Retirement of the
  780  Department of Management Services.
  781         (12)(8) “Enrolled actuary” means an actuary who is enrolled
  782  under Subtitle C of Title III of the Employee Retirement Income
  783  Security Act of 1974 and who is a member of the Society of
  784  Actuaries or the American Academy of Actuaries.
  785         (13)(9) “Local law municipality” is any municipality in
  786  which there exists a local law plan exists.
  787         (14)(10) “Local law plan” means a retirement defined
  788  benefit pension plan, which includes both a defined benefit plan
  789  component and a defined contribution plan component, for police
  790  officers, or for police officers and firefighters if both are,
  791  where included, as described in s. 185.35, established by
  792  municipal ordinance or special act of the Legislature, which
  793  enactment sets forth all plan provisions. Local law plan
  794  provisions may vary from the provisions of this chapter if the,
  795  provided that required minimum benefits and minimum standards of
  796  this chapter are met. However, any such variance must shall
  797  provide a greater benefit for police officers. Actuarial
  798  valuations of local law plans shall be conducted by an enrolled
  799  actuary as provided in s. 185.221(2)(b).
  800         (15) “Long-term funded ratio” or “funded ratio” means the
  801  ratio of the actuarial value of assets of the plan to the
  802  actuarial accrued liabilities of the plan, as reported in the
  803  most recent actuarial valuation of the plan, deemed to be in
  804  compliance with chapter 112 by the Department of Management
  805  Services.
  806         (16) “Minimum benefits” means the benefits set forth in ss.
  807  185.01-185.341 and ss. 185.37-185.50.
  808         (17) “Minimum standards” means the standards set forth in
  809  ss. 185.01-185.341 and ss. 185.37-185.50.
  810         (18)(11) “Police officer” means any person who is elected,
  811  appointed, or employed full time by a any municipality, who is
  812  certified or required to be certified as a law enforcement
  813  officer in compliance with s. 943.1395, who is vested with
  814  authority to bear arms and make arrests, and whose primary
  815  responsibility is the prevention and detection of crime or the
  816  enforcement of the penal, criminal, traffic, or highway laws of
  817  the state. The term This definition includes all certified
  818  supervisory and command personnel whose duties include, in whole
  819  or in part, the supervision, training, guidance, and management
  820  responsibilities of full-time law enforcement officers, part
  821  time law enforcement officers, or auxiliary law enforcement
  822  officers, but does not include part-time law enforcement
  823  officers or auxiliary law enforcement officers as those terms
  824  the same are defined in s. 943.10(6) and (8), respectively. For
  825  the purposes of this chapter only, the term also includes
  826  “police officer” also shall include a public safety officer who
  827  is responsible for performing both police and fire services. Any
  828  plan may provide that the police chief shall have an option to
  829  participate, or not, in that plan.
  830         (19)(12) “Police Officers’ Retirement Trust Fund” means a
  831  trust fund, by whatever name known, as provided under s. 185.03
  832  for the purpose of assisting municipalities in establishing and
  833  maintaining a retirement plan for police officers.
  834         (20) “Required benefits” means the base benefits of the
  835  plan. For local law plans created after March 12, 1999, the
  836  required benefits are the minimum benefits set forth in this
  837  chapter.
  838         (21)(13) “Retiree” or “retired police officer” means a
  839  police officer who has entered retirement status. For the
  840  purposes of a plan that includes a Deferred Retirement Option
  841  Plan (DROP), a police officer who enters the DROP is shall be
  842  considered a retiree for all purposes of the plan. However, a
  843  police officer who enters the DROP and who is otherwise eligible
  844  to participate may shall not thereby be precluded from
  845  participating, or continuing to participate, in a supplemental
  846  plan in existence on, or created after, March 12, 1999 the
  847  effective date of this act.
  848         (22)(14) “Retirement” means a police officer’s separation
  849  from city employment as a police officer with immediate
  850  eligibility for receipt of benefits under the plan. For purposes
  851  of a plan that includes a Deferred Retirement Option Plan
  852  (DROP), “retirement” means the date a police officer enters the
  853  DROP.
  854         (23) “Special benefits” means benefits provided in a
  855  defined contribution plan for police officers.
  856         (24)(15) “Supplemental plan” means a plan to which deposits
  857  of the premium tax moneys as provided in s. 185.08 are made to
  858  provide extra benefits to police officers, or police officers
  859  and firefighters if both are where included, under this chapter.
  860  Such a plan is an element of a local law plan and exists in
  861  conjunction with a defined benefit component plan that meets the
  862  required minimum benefits and minimum standards of this chapter.
  863  Any supplemental plan in existence on March 1, 2013, shall be
  864  deemed to be defined contribution plan in compliance with s.
  865  185.35(8).
  866         (25)(16) “Supplemental plan municipality” means a any local
  867  law municipality in which there existed a supplemental plan
  868  existed as of December 1, 2000.
  869         Section 9. Paragraph (b) of subsection (6) of section
  870  185.06, Florida Statutes, is amended to read:
  871         185.06 General powers and duties of board of trustees.—For
  872  any municipality, chapter plan, local law municipality, or local
  873  law plan under this chapter:
  874         (6) To assist the board in meeting its responsibilities
  875  under this chapter, the board, if it so elects, may:
  876         (b) Employ an independent enrolled actuary, as defined in
  877  s. 185.02(8), at the pension fund’s expense.
  878  
  879  If the board chooses to use the municipality’s or special
  880  district’s legal counsel or actuary, or chooses to use any of
  881  the municipality’s other professional, technical, or other
  882  advisers, it must do so only under terms and conditions
  883  acceptable to the board.
  884         Section 10. Paragraphs (d) through (g) of subsection (1) of
  885  section 185.07, Florida Statutes, are amended, and a new
  886  paragraph (e) is added to that subsection, to read:
  887         185.07 Creation and maintenance of fund.—For any
  888  municipality, chapter plan, local law municipality, or local law
  889  plan under this chapter:
  890         (1) The municipal police officers’ retirement trust fund in
  891  each municipality described in s. 185.03 shall be created and
  892  maintained in the following manner:
  893         (d) By payment by the municipality or other sources of a
  894  sum equal to the normal cost and the amount required to fund any
  895  actuarial deficiency shown by an actuarial valuation as provided
  896  in part VII of chapter 112 after taking into account the amounts
  897  described in paragraphs (b), (c), (f), (g), and (h) and the
  898  amounts of the tax proceeds described in paragraph (a) which
  899  must be used to fund defined benefit plan benefits, except as
  900  otherwise excluded from consideration in determining the
  901  mandatory payment.
  902         (e) For local law plans, and in addition to the mandatory
  903  payment described in paragraph (d), by mandatory payment by the
  904  municipality of the amount specified in s. 185.35(3), if the
  905  long-term funded ratio of the plan is less than 80 percent.
  906         (f)(e) By all gifts, bequests and devises when donated to
  907  the fund.
  908         (g)(f) By all accretions to the fund by way of interest or
  909  dividends on bank deposits or otherwise.
  910         (h)(g) By all other sources of income now or hereafter
  911  authorized by law for the augmentation of such municipal police
  912  officers’ retirement trust fund.
  913  
  914  Nothing in this section shall be construed to require adjustment
  915  of member contribution rates in effect on the date this act
  916  becomes a law, including rates that exceed 5 percent of salary,
  917  provided that such rates are at least one-half of 1 percent of
  918  salary.
  919         Section 11. Subsection (2) of section 185.16, Florida
  920  Statutes, is amended to read:
  921         185.16 Requirements for retirement.—For any municipality,
  922  chapter plan, local law municipality, or local law plan under
  923  this chapter, any police officer who completes 10 or more years
  924  of creditable service as a police officer and attains age 55, or
  925  completes 25 years of creditable service as a police officer and
  926  attains age 52, and for such period has been a member of the
  927  retirement fund is eligible for normal retirement benefits.
  928  Normal retirement under the plan is retirement from the service
  929  of the city on or after the normal retirement date. In such
  930  event, for chapter plans and local law plans, payment of
  931  retirement income will be governed by the following provisions
  932  of this section:
  933         (2) The amount of the monthly retirement income payable to
  934  a police officer who retires on or after his or her normal
  935  retirement date shall be an amount equal to the number of the
  936  police officer’s years of credited service multiplied by 2
  937  percent of his or her average final compensation. However, if
  938  current state contributions pursuant to this chapter are not
  939  adequate to fund the additional benefits to meet the minimum
  940  requirements in this chapter, only increment increases shall be
  941  required as state moneys are adequate to provide. Such
  942  increments shall be provided as state moneys become available.
  943         Section 12. Section 185.35, Florida Statutes, is amended to
  944  read:
  945         185.35 Municipalities that have having their own retirement
  946  pension plans for police officers.—For any municipality, chapter
  947  plan, local law municipality, or local law plan under this
  948  chapter, In order for a municipality that has municipalities
  949  with its their own retirement plan pension plans for police
  950  officers, or for police officers and firefighters if both are
  951  included, to participate in the distribution of the tax fund
  952  established under pursuant to s. 185.08, a local law plan and
  953  its plan sponsor plans must meet the required minimum benefits
  954  and minimum standards set forth in this chapter:
  955         (1) If a municipality has a retirement pension plan for
  956  police officers, or for police officers and firefighters if both
  957  are included, which, in the opinion of the division, meets the
  958  required minimum benefits and minimum standards set forth in
  959  this chapter, the board of trustees of the pension plan must, as
  960  approved by a majority of police officers of the municipality,
  961  may:
  962         (a) place the income from the premium tax in s. 185.08 in
  963  such pension plan for the sole and exclusive use of its police
  964  officers, or its police officers and firefighters if both are
  965  included, where it shall become an integral part of that pension
  966  plan and shall be used to fund benefits as follows:
  967         (a) The base premium tax revenues must be used to fund
  968  required benefits. To the extent the base premium tax revenues
  969  exceed the annual actuarial cost of the plan’s required
  970  benefits, such revenues may be used to fund the plan’s base
  971  benefits, or a portion thereof, if the plan’s base benefits are
  972  greater than the plan’s required benefits. Otherwise, such
  973  excess revenues must be used as directed in paragraph (b).
  974         (b) Of the additional premium tax revenues received which
  975  are in excess of the amount received for the 2012 calendar year
  976  and any accumulations of additional premium tax revenues which
  977  have not been applied to fund benefits in excess of the plan’s
  978  base benefits:
  979         1. If the plan has a supplemental plan in effect as of
  980  September 30, 2012, whereby all premium tax revenues received in
  981  excess of the amount received for the 2012 calendar year are
  982  scheduled to be used to fund defined contribution plan benefits
  983  and:
  984         a. If the plan has a long-term funded ratio of less than 70
  985  percent, 50 percent of the additional premium tax revenues
  986  subject to this paragraph must be used as additional
  987  contributions to pay the plan’s actuarial deficiency and the
  988  remainder must be used to fund special benefits; or
  989         b. If the plan has a long-term funded ratio of 70 percent
  990  or greater, the additional premium tax revenues subject to this
  991  paragraph must be used to fund special benefits.
  992         2. If subparagraph 1. is not applicable and the plan has a
  993  long-term funded ratio of less than 80 percent:
  994         a. Fifty percent of the additional premium tax revenues
  995  subject to this paragraph must be used as additional
  996  contributions to pay the plan’s actuarial deficiency;
  997         b. Twenty-five percent of the additional premium tax
  998  revenues subject to this paragraph must be used to fund base
  999  benefits; and
 1000         c. The remainder must be placed in a defined contribution
 1001  plan to fund special benefits.
 1002         3. If subparagraph 1. is not applicable and the plan has a
 1003  long-term funded ratio of 80 percent or greater:
 1004         a. Fifty percent of the additional premium tax revenues
 1005  subject to this paragraph must be used to fund base benefits;
 1006  and
 1007         b. The remainder must be placed in a defined contribution
 1008  plan to fund special benefits.
 1009  
 1010  Any additional premium tax revenues used to fund the plan’s
 1011  actuarial deficiency pursuant to this paragraph may not be
 1012  considered in determining the mandatory payment described in s.
 1013  175.091(1)(d).
 1014         (c) Additional premium tax revenues not described in
 1015  paragraph (b) must be used to fund benefits that were not
 1016  included in the base benefits pay extra benefits to the police
 1017  officers included in that pension plan; or
 1018         (b) May place the income from the premium tax in s. 185.08
 1019  in a separate supplemental plan to pay extra benefits to the
 1020  police officers, or police officers and firefighters if
 1021  included, participating in such separate supplemental plan.
 1022         (2) Insurance premium tax revenues may not be used to fund
 1023  benefits provided in a defined benefit plan which were not
 1024  provided by the plan as of March 1, 2013; however, for a local
 1025  law plan created after March 1, 2013, up to 50 percent of the
 1026  insurance premium tax revenues may be used to fund defined
 1027  benefit plan component benefits and the remainder must be used
 1028  to fund defined contribution plan component benefits.
 1029         (3) If a plan offers benefits in excess of its required
 1030  benefits, such benefits may be reduced if the plan continues to
 1031  meet the required benefits of the plan and the minimum standards
 1032  set forth in this chapter. The amount of insurance premium tax
 1033  revenues previously used to fund benefits in excess of the
 1034  plan’s required benefits before the reduction must be used as
 1035  provided in subsection (1)(b). Twenty-five percent of the amount
 1036  of any mandatory contribution paid by the municipality or
 1037  special fire control district which was previously used to fund
 1038  benefits above the level of required benefits provided before
 1039  the reduction must be used as additional contributions as
 1040  specified in s. 185.07 to fund the plan’s actuarial deficiency.
 1041         (4)(2) The premium tax provided by this chapter shall in
 1042  all cases be used in its entirety to provide retirement extra
 1043  benefits to police officers, or to police officers and
 1044  firefighters if both are included. However, local law plans in
 1045  effect on October 1, 1998, must comply with the minimum benefit
 1046  provisions of this chapter only to the extent that additional
 1047  premium tax revenues become available to incrementally fund the
 1048  cost of such compliance as provided in s. 185.16(2). If a plan
 1049  is in compliance with such minimum benefit provisions, as
 1050  subsequent additional tax revenues become available, they shall
 1051  be used to provide extra benefits. Local law plans created by
 1052  special act before May 27, 1939, shall be deemed to comply with
 1053  this chapter. For the purpose of this chapter, the term:
 1054         (a) “Additional premium tax revenues” means revenues
 1055  received by a municipality pursuant to s. 185.10 which exceed
 1056  the amount received for calendar year 1997.
 1057         (b) “Extra benefits” means benefits in addition to or
 1058  greater than those provided to general employees of the
 1059  municipality and in addition to those in existence for police
 1060  officers on March 12, 1999.
 1061         (5)(3) A retirement plan or amendment to a retirement plan
 1062  may not be proposed for adoption unless the proposed plan or
 1063  amendment contains an actuarial estimate of the costs involved.
 1064  Such proposed plan or proposed plan change may not be adopted
 1065  without the approval of the municipality or, where permitted,
 1066  the Legislature. Copies of the proposed plan or proposed plan
 1067  change and the actuarial impact statement of the proposed plan
 1068  or proposed plan change shall be furnished to the division
 1069  before the last public hearing thereon. Such statement must also
 1070  indicate whether the proposed plan or proposed plan change is in
 1071  compliance with s. 14, Art. X of the State Constitution and
 1072  those provisions of part VII of chapter 112 which are not
 1073  expressly provided in this chapter. Notwithstanding any other
 1074  provision, only those local law plans created by special act of
 1075  legislation before May 27, 1939, are deemed to meet the minimum
 1076  benefits and minimum standards only in this chapter.
 1077         (6)(4) Notwithstanding any other provision, with respect to
 1078  any supplemental plan municipality:
 1079         (a) Section 185.02(7)(a) 185.02(4)(a) does not apply, and a
 1080  local law plan and a supplemental plan may continue to use their
 1081  definition of compensation or salary in existence on March 12,
 1082  1999.
 1083         (b) A local law plan and a supplemental plan must continue
 1084  to be administered by a board or boards of trustees numbered,
 1085  constituted, and selected as the board or boards were numbered,
 1086  constituted, and selected on December 1, 2000.
 1087         (c) The election set forth in paragraph (1)(b) is deemed to
 1088  have been made.
 1089         (7)(5) The retirement plan setting forth the benefits and
 1090  the trust agreement, if any, covering the duties and
 1091  responsibilities of the trustees and the regulations of the
 1092  investment of funds must be in writing and copies made available
 1093  to the participants and to the general public.
 1094         (8) In addition to the defined benefit component of the
 1095  local law plan, each plan sponsor must have a defined
 1096  contribution plan component within the local law plan by October
 1097  1, 2013, or upon the creation date of a new participating plan.
 1098  However, the plan sponsor of any plan established by special act
 1099  of the Legislature has until July 1, 2014, to create a defined
 1100  contribution component within the plan.
 1101         (9) Notwithstanding any other provision of this chapter, a
 1102  municipality that has implemented or proposed changes to a local
 1103  law plan based on the municipality’s reliance on an
 1104  interpretation of this chapter by the department on or after
 1105  August 14, 2012 and before February 1, 2013, may continue the
 1106  implemented changes or continue to implement proposed changes.
 1107  Such reliance must be evidenced by a written collective
 1108  bargaining proposal, collective bargaining agreement, or formal
 1109  correspondence between the municipality and the department which
 1110  describes the specific changes to the local law plan, with the
 1111  initial proposal, agreement, or correspondence from the
 1112  municipality dated prior to February 1, 2013. The changes to the
 1113  local law plan which are otherwise contrary to the provisions of
 1114  this chapter may continue in effect until the earlier of October
 1115  1, 2016, or the effective date of a collective bargaining
 1116  agreement that is contrary to the changes to the local law plan.
 1117         Section 13. The Legislature finds that a proper and
 1118  legitimate state purpose is served when employees and retirees
 1119  of the state and its political subdivisions, and the dependents,
 1120  survivors, and beneficiaries of such employees and retirees, are
 1121  extended the basic protections afforded by governmental
 1122  retirement systems that provide fair and adequate benefits and
 1123  that are managed, administered, and funded in an actuarially
 1124  sound manner as required by s. 14, Article X of the State
 1125  Constitution and part VII of chapter 112, Florida Statutes.
 1126  Therefore, the Legislature determines and declares that this act
 1127  fulfills an important state interest.
 1128         Section 14. This act shall take effect July 1, 2013.