Florida Senate - 2014                              CS for SB 246
       
       
        
       By the Committee on Appropriations; and Senators Ring and
       Bradley
       
       
       
       
       576-04234-14                                           2014246c1
    1                        A bill to be entitled                      
    2         An act relating to local government pension reform;
    3         amending s. 175.021, F.S.; revising the legislative
    4         declaration to require that all firefighter pension
    5         plans meet the requirements of ch. 175, F.S., in order
    6         to receive insurance premium tax revenues; amending s.
    7         175.032, F.S.; revising definitions to conform to
    8         changes made by the act and providing new definitions;
    9         amending s. 175.071, F.S.; conforming a cross
   10         reference; amending s. 175.091, F.S.; revising the
   11         method of creating and maintaining a firefighters’
   12         pension trust fund; amending s. 175.162, F.S.;
   13         deleting a provision basing the availability of
   14         additional benefits in a firefighter pension plan upon
   15         state funding; revising the calculation of monthly
   16         retirement income for a full-time firefighter;
   17         providing that certain firefighter pension plans must
   18         maintain a certain minimum percentage of average final
   19         compensation by a specified date; amending s. 175.351,
   20         F.S., relating to municipalities and special fire
   21         control districts that have their own pension plans
   22         and want to participate in the distribution of a tax
   23         fund; revising criteria governing the use of revenues
   24         from the premium tax; authorizing a pension plan to
   25         reduce excess benefits if the plan continues to meet
   26         certain minimum benefits and standards; providing that
   27         the use of premium tax revenues may deviate from the
   28         requirements of ch. 175, F.S., under certain
   29         circumstances; requiring plan sponsors to have a
   30         defined contribution plan in place by a certain date;
   31         authorizing a municipality to implement certain
   32         changes to a local law plan which are contrary to ch.
   33         175, F.S., for a limited time; amending s. 185.01,
   34         F.S.; revising the legislative declaration to require
   35         that all police officer pension plans meet the
   36         requirements of ch. 185, F.S., in order to receive
   37         insurance premium tax revenues; amending s. 185.02,
   38         F.S.; revising definitions to conform to changes made
   39         by the act and adding new definitions; revising
   40         applicability of the limitation on the amount of
   41         overtime payments that may be used for retirement
   42         benefit calculations; amending s. 185.06, F.S.;
   43         conforming a cross-reference; amending s. 185.07,
   44         F.S.; revising the method of creating and maintaining
   45         a police officers’ retirement trust fund; amending s.
   46         185.16, F.S.; deleting a provision basing the
   47         availability of additional benefits in a police
   48         officer pension plan upon state funding; revising the
   49         calculation of monthly retirement income for a police
   50         officer; providing that certain police officer pension
   51         plans must maintain a certain minimum percentage of
   52         average final compensation after a specified date;
   53         amending s. 185.35, F.S., relating to municipalities
   54         that have their own pension plans for police officers
   55         and want to participate in the distribution of a tax
   56         fund; conforming a cross-reference; revising criteria
   57         governing the use of revenues from the premium tax;
   58         authorizing a plan to reduce excess benefits if the
   59         plan continues to meet certain minimum benefits and
   60         minimum standards; providing that the use of premium
   61         tax revenues may deviate from the requirements of ch.
   62         185, F.S., under specified circumstances; requiring
   63         plan sponsors to have a defined contribution plan in
   64         place by a certain date; authorizing a municipality to
   65         implement certain changes to a local law plan which
   66         are contrary to ch. 185, F.S., for a limited time;
   67         providing a declaration of important state interest;
   68         providing an effective date.
   69          
   70  Be It Enacted by the Legislature of the State of Florida:
   71  
   72         Section 1. Subsection (2) of section 175.021, Florida
   73  Statutes, is amended to read:
   74         175.021 Legislative declaration.—
   75         (2) This chapter hereby establishes, for all municipal and
   76  special district pension plans existing now or hereafter under
   77  this chapter, including chapter plans and local law plans,
   78  minimum benefits and minimum standards for the operation and
   79  funding of such plans, hereinafter referred to as firefighters’
   80  pension trust funds, which must be met as a condition precedent
   81  to the plan or plan sponsor receiving a distribution of
   82  insurance premium tax revenues under s. 175.121. The minimum
   83  benefits and minimum standards for each plan as set forth in
   84  this chapter may not be diminished by local charter, ordinance,
   85  or resolution or by special act of the Legislature and may not,
   86  nor may the minimum benefits or minimum standards be reduced or
   87  offset by any other local, state, or federal law that includes
   88  may include firefighters in its operation, except as provided
   89  under s. 112.65.
   90         Section 2. Section 175.032, Florida Statutes, is amended to
   91  read:
   92         175.032 Definitions.—For any municipality, special fire
   93  control district, chapter plan, local law municipality, local
   94  law special fire control district, or local law plan under this
   95  chapter, the term following words and phrases have the following
   96  meanings:
   97         (1) “Additional premium tax revenues” means revenues
   98  received by a municipality or special fire control district
   99  pursuant to s. 175.121 which exceed base premium tax revenues.
  100         (2)(1)(a) “Average final compensation” for:
  101         (a) A full-time firefighter means one-twelfth of the
  102  average annual compensation of the 5 best years of the last 10
  103  years of creditable service before prior to retirement,
  104  termination, or death, or the career average as a full-time
  105  firefighter since July 1, 1953, whichever is greater. A year is
  106  shall be 12 consecutive months or such other consecutive period
  107  of time as is used and consistently applied.
  108         (b) “Average final compensation” for A volunteer
  109  firefighter means the average salary of the 5 best years of the
  110  last 10 best contributing years before prior to change in status
  111  to a permanent full-time firefighter or retirement as a
  112  volunteer firefighter or the career average of a volunteer
  113  firefighter, since July 1, 1953, whichever is greater.
  114         (3) “Base premium tax revenues” means the revenues received
  115  by a municipality or special fire control district pursuant to
  116  s. 175.121 for the calendar year 1997.
  117         (4)(2) “Chapter plan” means a separate defined benefit
  118  pension plan for firefighters which incorporates by reference
  119  the provisions of this chapter and has been adopted by the
  120  governing body of a municipality or special district. Except as
  121  may be specifically authorized in this chapter, the provisions
  122  of a chapter plan may not differ from the plan provisions set
  123  forth in ss. 175.021-175.341 and ss. 175.361-175.401. Actuarial
  124  valuations of chapter plans shall be conducted by the division
  125  as provided by s. 175.261(1).
  126         (5)(3) “Compensation” or “salary” means, for
  127  noncollectively bargained service earned before July 1, 2011, or
  128  for service earned under collective bargaining agreements in
  129  place before July 1, 2011, the fixed monthly remuneration paid a
  130  firefighter. If remuneration is based on actual services
  131  rendered, as in the case of a volunteer firefighter, the term
  132  means the total cash remuneration received yearly for such
  133  services, prorated on a monthly basis. For noncollectively
  134  bargained service earned on or after July 1, 2011, or for
  135  service earned under collective bargaining agreements entered
  136  into on or after July 1, 2011, the term has the same meaning
  137  except that when calculating retirement benefits, up to 300
  138  hours per year in overtime compensation may be included as
  139  specified in the plan or collective bargaining agreement, but
  140  payments for accrued unused sick or annual leave may not be
  141  included.
  142         (a) Any retirement trust fund or plan that meets the
  143  requirements of this chapter does not, solely by virtue of this
  144  subsection, reduce or diminish the monthly retirement income
  145  otherwise payable to each firefighter covered by the retirement
  146  trust fund or plan.
  147         (b) The member’s compensation or salary contributed as
  148  employee-elective salary reductions or deferrals to any salary
  149  reduction, deferred compensation, or tax-sheltered annuity
  150  program authorized under the Internal Revenue Code shall be
  151  deemed to be the compensation or salary the member would receive
  152  if he or she were not participating in such program and shall be
  153  treated as compensation for retirement purposes under this
  154  chapter.
  155         (c) For any person who first becomes a member in any plan
  156  year beginning on or after January 1, 1996, compensation for
  157  that plan year may not include any amounts in excess of the
  158  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  159  the Omnibus Budget Reconciliation Act of 1993, which limitation
  160  of $150,000 shall be adjusted as required by federal law for
  161  qualified government plans and shall be further adjusted for
  162  changes in the cost of living in the manner provided by Internal
  163  Revenue Code s. 401(a)(17)(B). For any person who first became a
  164  member before the first plan year beginning on or after January
  165  1, 1996, the limitation on compensation may not be less than the
  166  maximum compensation amount that was allowed to be taken into
  167  account under the plan in effect on July 1, 1993, which
  168  limitation shall be adjusted for changes in the cost of living
  169  since 1989 in the manner provided by Internal Revenue Code s.
  170  401(a)(17)(1991).
  171         (6)(4) “Creditable service” or “credited service” means the
  172  aggregate number of years of service, and fractional parts of
  173  years of service, of any firefighter, omitting intervening years
  174  and fractional parts of years when such firefighter may not have
  175  been employed by the municipality or special fire control
  176  district, subject to the following conditions:
  177         (a) A No firefighter may not will receive credit for years
  178  or fractional parts of years of service if he or she has
  179  withdrawn his or her contributions to the fund for those years
  180  or fractional parts of years of service, unless the firefighter
  181  repays into the fund the amount he or she has withdrawn, plus
  182  interest determined by the board. The member shall have at least
  183  90 days after his or her reemployment to make repayment.
  184         (b) A firefighter may voluntarily leave his or her
  185  contributions in the fund for a period of 5 years after leaving
  186  the employ of the fire department, pending the possibility of
  187  being rehired by the same department, without losing credit for
  188  the time he or she has participated actively as a firefighter.
  189  If the firefighter is not reemployed as a firefighter, with the
  190  same department, within 5 years, his or her contributions shall
  191  be returned without interest.
  192         (c) Credited service under this chapter shall be provided
  193  only for service as a firefighter, as defined in subsection (8),
  194  or for military service and does not include credit for any
  195  other type of service. A municipality may, by local ordinance,
  196  or a special fire control district may, by resolution, may
  197  provide for the purchase of credit for military service prior to
  198  employment as well as for prior service as a firefighter for
  199  some other employer as long as a firefighter is not entitled to
  200  receive a benefit for such prior service as a firefighter. For
  201  purposes of determining credit for prior service as a
  202  firefighter, in addition to service as a firefighter in this
  203  state, credit may be given for federal, other state, or county
  204  service if the prior service is recognized by the Division of
  205  State Fire Marshal as provided in under chapter 633, or the
  206  firefighter provides proof to the board of trustees that his or
  207  her service is equivalent to the service required to meet the
  208  definition of a firefighter under subsection (11) (8).
  209         (d) In determining the creditable service of any
  210  firefighter, credit for up to 5 years of the time spent in the
  211  military service of the Armed Forces of the United States shall
  212  be added to the years of actual service if:
  213         1. The firefighter is in the active employ of an employer
  214  immediately prior to such service and leaves a position, other
  215  than a temporary position, for the purpose of voluntary or
  216  involuntary service in the Armed Forces of the United States.
  217         2. The firefighter is entitled to reemployment under the
  218  provisions of the Uniformed Services Employment and Reemployment
  219  Rights Act.
  220         3. The firefighter returns to his or her employment as a
  221  firefighter of the municipality or special fire control district
  222  within 1 year from the date of release from such active service.
  223         (7)(5) “Deferred Retirement Option Plan” or “DROP” means a
  224  local law plan retirement option in which a firefighter may
  225  elect to participate. A firefighter may retire for all purposes
  226  of the plan and defer receipt of retirement benefits into a DROP
  227  account while continuing employment with his or her employer.
  228  However, a firefighter who enters the DROP and who is otherwise
  229  eligible to participate may shall not thereby be precluded from
  230  participation or continued participation participating, or
  231  continuing to participate, in a supplemental plan in existence
  232  on, or created after, March 12, 1999 the effective date of this
  233  act.
  234         (8) “Defined contribution plan” means the component of a
  235  local law plan, as provided in s. 175.351(1), to which deposits,
  236  if any, are made to provide benefits for firefighters, or for
  237  firefighters and police officers if both are included. Such
  238  component is an element of a local law plan and exists in
  239  conjunction with the defined benefit component that meets the
  240  minimum benefits and minimum standards of this chapter. The
  241  retirement benefits, if any, of the defined contribution plan
  242  shall be provided through individual member accounts in
  243  accordance with the applicable provisions of the Internal
  244  Revenue Code and related regulations and are limited to the
  245  contributions, if any, made into each member’s account and the
  246  actual accumulated earnings, net of expenses, earned on the
  247  member’s account.
  248         (9)(6) “Division” means the Division of Retirement of the
  249  Department of Management Services.
  250         (10)(7) “Enrolled actuary” means an actuary who is enrolled
  251  under Subtitle C of Title III of the Employee Retirement Income
  252  Security Act of 1974 and who is a member of the Society of
  253  Actuaries or the American Academy of Actuaries.
  254         (11)(8)(a) “Firefighter” means a person employed solely by
  255  a constituted fire department of any municipality or special
  256  fire control district who is certified as a firefighter as a
  257  condition of employment in accordance with s. 633.408 and whose
  258  duty it is to extinguish fires, to protect life, or to protect
  259  property. The term includes all certified, supervisory, and
  260  command personnel whose duties include, in whole or in part, the
  261  supervision, training, guidance, and management responsibilities
  262  of full-time firefighters, part-time firefighters, or auxiliary
  263  firefighters but does not include part-time firefighters or
  264  auxiliary firefighters. However, for purposes of this chapter
  265  only, the term also includes public safety officers who are
  266  responsible for performing both police and fire services, who
  267  are certified as police officers or firefighters, and who are
  268  certified by their employers to the Chief Financial Officer as
  269  participating in this chapter before October 1, 1979. Effective
  270  October 1, 1979, public safety officers who have not been
  271  certified as participating in this chapter are considered police
  272  officers for retirement purposes and are eligible to participate
  273  in chapter 185. Any plan may provide that the fire chief has an
  274  option to participate, or not, in that plan.
  275         (b) “Volunteer firefighter” means any person whose name is
  276  carried on the active membership roll of a constituted volunteer
  277  fire department or a combination of a paid and volunteer fire
  278  department of any municipality or special fire control district
  279  and whose duty it is to extinguish fires, to protect life, and
  280  to protect property. Compensation for services rendered by a
  281  volunteer firefighter does shall not disqualify him or her as a
  282  volunteer. A person may shall not be disqualified as a volunteer
  283  firefighter solely because he or she has other gainful
  284  employment. Any person who volunteers assistance at a fire but
  285  is not an active member of a department described herein is not
  286  a volunteer firefighter within the meaning of this paragraph.
  287         (12)(9) “Firefighters’ Pension Trust Fund” means a trust
  288  fund, by whatever name known, as provided under s. 175.041, for
  289  the purpose of assisting municipalities and special fire control
  290  districts in establishing and maintaining a retirement plan for
  291  firefighters.
  292         (13)(10) “Local law municipality” is any municipality in
  293  which there exists a local law plan exists.
  294         (14)(11) “Local law plan” means a retirement defined
  295  benefit pension plan, that includes both a defined benefit plan
  296  component and a defined contribution plan component, for
  297  firefighters, or for firefighters and or police officers if both
  298  are where included, as described in s. 175.351, established by
  299  municipal ordinance, special district resolution, or special act
  300  of the Legislature, which enactment sets forth all plan
  301  provisions. Local law plan provisions may vary from the
  302  provisions of this chapter if the, provided that required
  303  minimum benefits and minimum standards of this chapter are met.
  304  However, any such variance must shall provide a greater benefit
  305  for firefighters. Actuarial valuations of local law plans shall
  306  be conducted by an enrolled actuary as provided in s.
  307  175.261(2).
  308         (15)(12) “Local law special fire control district” means is
  309  any special fire control district in which there exists a local
  310  law plan exists.
  311         (16) “Minimum benefits” means the benefits set forth in ss.
  312  175.021-175.341 and ss. 175.361-175.401.
  313         (17) “Minimum standards” means the standards set forth in
  314  ss. 175.021-175.341 and ss. 175.361-175.401.
  315         (18)(13) “Property insurance” means property insurance as
  316  defined in s. 624.604 and covers real and personal property
  317  within the corporate limits of a any municipality, or within the
  318  boundaries of a any special fire control district, within the
  319  state. The term “multiple peril” means a combination or package
  320  policy that includes both property and casualty coverage for a
  321  single premium.
  322         (19)(14) “Retiree” or “retired firefighter” means a
  323  firefighter who has entered retirement status. For the purposes
  324  of a plan that includes a Deferred Retirement Option Plan
  325  (DROP), a firefighter who enters the DROP is shall be considered
  326  a retiree for all purposes of the plan. However, a firefighter
  327  who enters the DROP and who is otherwise eligible to participate
  328  may shall not thereby be precluded from participation or
  329  continued participation participating, or continuing to
  330  participate, in a supplemental plan in existence on, or created
  331  after, March 12, 1999 the effective date of this act.
  332         (20)(15) “Retirement” means a firefighter’s separation from
  333  municipal city or fire district employment as a firefighter with
  334  immediate eligibility for receipt of benefits under the plan.
  335  For purposes of a plan that includes a Deferred Retirement
  336  Option Plan (DROP), “retirement” means the date a firefighter
  337  enters the DROP.
  338         (21) “Special act plan” means a plan subject to the
  339  provisions of this chapter which was created by an act of the
  340  Legislature and continues to require an act of the Legislature
  341  to alter plan benefits.
  342         (22) “Special benefits” means benefits provided in a
  343  defined contribution plan for firefighters.
  344         (23)(16) “Special fire control district” means a special
  345  district, as defined in s. 189.403(1), established for the
  346  purposes of extinguishing fires, protecting life, and protecting
  347  property within the incorporated or unincorporated portions of a
  348  any county or combination of counties, or within any combination
  349  of incorporated and unincorporated portions of a any county or
  350  combination of counties. The term does not include any dependent
  351  or independent special district, as those terms are defined in
  352  s. 189.403, whose s. 189.403(2) and (3), respectively, the
  353  employees of which are members of the Florida Retirement System
  354  pursuant to s. 121.051(1) or (2).
  355         (24)(17) “Supplemental plan” means a plan to which deposits
  356  are made to provide extra benefits for firefighters, or for
  357  firefighters and police officers if both are where included
  358  under this chapter. Such a plan is an element of a local law
  359  plan and exists in conjunction with a defined benefit component
  360  plan that meets the minimum benefits and minimum standards of
  361  this chapter. Any supplemental plan in existence on March 1,
  362  2014, shall be deemed to be a defined contribution plan in
  363  compliance with s. 175.351(6).
  364         (25)(18) “Supplemental plan municipality” means a any local
  365  law municipality in which any there existed a supplemental plan
  366  existed, of any type or nature, as of December 1, 2000.
  367         Section 3. Subsection (7) of section 175.071, Florida
  368  Statutes, is amended to read:
  369         175.071 General powers and duties of board of trustees.—For
  370  any municipality, special fire control district, chapter plan,
  371  local law municipality, local law special fire control district,
  372  or local law plan under this chapter:
  373         (7) To assist the board in meeting its responsibilities
  374  under this chapter, the board, if it so elects, may:
  375         (a) Employ independent legal counsel at the pension fund’s
  376  expense.
  377         (b) Employ an independent enrolled actuary, as defined in
  378  s. 175.032(7), at the pension fund’s expense.
  379         (c) Employ such independent professional, technical, or
  380  other advisers as it deems necessary at the pension fund’s
  381  expense.
  382  
  383  If the board chooses to use the municipality’s or special
  384  district’s legal counsel or actuary, or chooses to use any of
  385  the municipality’s or special district’s other professional,
  386  technical, or other advisers, it must do so only under terms and
  387  conditions acceptable to the board.
  388         Section 4. Paragraph (d) of subsection (1) of section
  389  175.091, Florida Statutes, is amended to read:
  390         175.091 Creation and maintenance of fund.—For any
  391  municipality, special fire control district, chapter plan, local
  392  law municipality, local law special fire control district, or
  393  local law plan under this chapter:
  394         (1) The firefighters’ pension trust fund in each
  395  municipality and in each special fire control district shall be
  396  created and maintained in the following manner:
  397         (d) By mandatory payment by the municipality or special
  398  fire control district of a sum equal to the normal cost of and
  399  the amount required to fund any actuarial deficiency shown by an
  400  actuarial valuation conducted under as provided in part VII of
  401  chapter 112 after taking into account the amounts described in
  402  paragraphs (b), (c), (e), (f), and (g) and the tax proceeds
  403  described in paragraph (a) which are used to fund defined
  404  benefit plan benefits.
  405  
  406  Nothing in this section shall be construed to require adjustment
  407  of member contribution rates in effect on the date this act
  408  becomes a law, including rates that exceed 5 percent of salary,
  409  provided that such rates are at least one-half of 1 percent of
  410  salary.
  411         Section 5. Paragraph (a) of subsection (2) of section
  412  175.162, Florida Statutes, is amended to read:
  413         175.162 Requirements for retirement.—For any municipality,
  414  special fire control district, chapter plan, local law
  415  municipality, local law special fire control district, or local
  416  law plan under this chapter, any firefighter who completes 10 or
  417  more years of creditable service as a firefighter and attains
  418  age 55, or completes 25 years of creditable service as a
  419  firefighter and attains age 52, and who for such minimum period
  420  has been a member of the firefighters’ pension trust fund
  421  operating under a chapter plan or local law plan, is eligible
  422  for normal retirement benefits. Normal retirement under the plan
  423  is retirement from the service of the municipality or special
  424  fire control district on or after the normal retirement date. In
  425  such event, payment of retirement income will be governed by the
  426  following provisions of this section:
  427         (2)(a)1. The amount of monthly retirement income payable to
  428  a full-time firefighter who retires on or after his or her
  429  normal retirement date shall be an amount equal to the number of
  430  his or her years of credited service multiplied by 2.75 2
  431  percent of his or her average final compensation as a full-time
  432  firefighter. However, if current state contributions pursuant to
  433  this chapter are not adequate to fund the additional benefits to
  434  meet the minimum requirements in this chapter, only such
  435  incremental increases shall be required as state moneys are
  436  adequate to provide. Such increments shall be provided as state
  437  moneys become available.
  438         2. Effective July 1, 2014, a plan that is in compliance
  439  with this chapter except that the plan provides a benefit that
  440  is less than 2.75 percent of the average final compensation of a
  441  full-time firefighter, as defined in s. 175.162(2)(a)1., must
  442  maintain, at a minimum, the percentage amount in effect on July
  443  1, 2014, and is not required to increase the benefit to 2.75
  444  percent of the average final compensation of a full-time
  445  firefighter.
  446         3. Effective July 1, 2014, a plan that is in compliance
  447  with this chapter except that the plan provides a benefit that
  448  is less than 2.75 percent of the average final compensation of a
  449  full-time firefighter, as defined in s. 175.162(2)(a)1., and
  450  that changes its accrual rate to 2.75 percent, or greater, of
  451  the average final compensation of a full-time firefighter, as
  452  defined in s. 175.162(2)(a)1., may not thereafter decrease the
  453  accrual rate to less than 2.75 percent of the average final
  454  compensation of a full-time firefighter, as defined in s.
  455  175.162(2)(a)1.
  456         Section 6. Section 175.351, Florida Statutes, is amended to
  457  read:
  458         175.351 Municipalities and special fire control districts
  459  that have having their own pension plans for firefighters.—For
  460  any municipality, special fire control district, local law
  461  municipality, local law special fire control district, or local
  462  law plan under this chapter, In order for a municipality or
  463  municipalities and special fire control district that has its
  464  districts with their own pension plan plans for firefighters, or
  465  for firefighters and police officers if both are included, to
  466  participate in the distribution of the tax fund established
  467  under pursuant to s. 175.101, a local law plan plans must meet
  468  the minimum benefits and minimum standards set forth in this
  469  chapter.
  470         (1) If a municipality has a pension plan for firefighters,
  471  or a pension plan for firefighters and police officers if both
  472  are included, which in the opinion of the division meets the
  473  minimum benefits and minimum standards set forth in this
  474  chapter, the board of trustees of the pension plan must, as
  475  approved by a majority of firefighters of the municipality, may:
  476         (a) place the income from the premium tax in s. 175.101 in
  477  such pension plan for the sole and exclusive use of its
  478  firefighters, or for firefighters and police officers if both
  479  are included, where it shall become an integral part of that
  480  pension plan and shall be used to fund benefits as provided
  481  herein. Effective October 1, 2014, for noncollectively bargained
  482  service or upon entering into a collective bargaining agreement
  483  on or after July 1, 2014:
  484         (a) The base premium tax revenues must be used to fund
  485  minimum benefits or other retirement benefits in excess of the
  486  minimum benefits as determined by the municipality or special
  487  fire control district.
  488         (b) Of the additional premium tax revenues received which
  489  are in excess of the amount received for the 2013 calendar year,
  490  50 percent must be used to fund minimum benefits or other
  491  retirement benefits in excess of the minimum benefits as
  492  determined by the municipality or special fire control district,
  493  and 50 percent must be placed in a defined contribution plan to
  494  fund special benefits.
  495         (c) Additional premium tax revenues not described in
  496  paragraph (b) must be used to fund benefits that are not
  497  included in the minimum benefits. If the additional premium tax
  498  revenues subject to this paragraph exceed the full cost of
  499  benefits provided through the plan which are in excess of the
  500  minimum benefits, any amount in excess of the full cost must be
  501  used as provided in paragraph (b).
  502         (d) Any accumulations of additional premium tax revenues
  503  which have not been applied to fund benefits in excess of the
  504  minimum benefits may be allocated by mutual consent as provided
  505  in paragraph (g). If such accumulations are not allocated by
  506  mutual consent, 50 percent of the amount of the accumulations
  507  must be used to fund special benefits, and 50 percent must be
  508  applied to fund any unfunded actuarial liabilities of the plan
  509  to pay extra benefits to the firefighters included in that
  510  pension plan; or
  511         (b) Place the income from the premium tax in s. 175.101 in
  512  a separate supplemental plan to pay extra benefits to
  513  firefighters, or to firefighters and police officers if
  514  included, participating in such separate supplemental plan.
  515         (e) For a plan created after March 1, 2014, 50 percent of
  516  the insurance premium tax revenues must be used to fund defined
  517  benefit plan component benefits, with the remainder used to fund
  518  defined contribution plan component benefits.
  519         (f) If a plan offers benefits in excess of the minimum
  520  benefits, excluding supplemental plan benefits in effect as of
  521  September 30, 2013, such benefits may be reduced if the plan
  522  continues to meet the minimum benefits and the minimum standards
  523  set forth in this chapter. The amount of insurance premium tax
  524  revenues previously used to fund benefits in excess of minimum
  525  benefits, excluding supplemental plan benefits in effect as of
  526  September 30, 2013, before the reduction must be used as
  527  provided in paragraph (b). However, benefits in excess of the
  528  minimum benefits may not be reduced if a plan does not meet the
  529  minimum accrual rate of 2.75 percent, or greater, of the average
  530  final compensation of a full-time firefighter, as defined in s.
  531  175.162(2)(a)1.
  532         (g) Notwithstanding any other provision of this subsection,
  533  the use of premium tax revenues, including any accumulations of
  534  additional tax revenues which have not been applied to fund
  535  benefits in excess of the minimum benefits, may deviate from the
  536  provisions of this subsection by mutual consent of the members’
  537  collective bargaining representative or, if none, by majority
  538  consent of the firefighter members of the fund, and by consent
  539  of the municipality or special fire control district, provided
  540  that the plan continues to meet the minimum benefits and minimum
  541  standards of this chapter; however, a plan operating pursuant to
  542  the provisions of this paragraph which does not meet a minimum
  543  benefit as of October 1, 2012, may continue to provide the
  544  benefit that does not meet the minimum benefit at the same
  545  level, but not less than that level, as was provided as of
  546  October 1, 2012, and all other benefit levels must continue to
  547  meet the minimum benefits. Such mutually agreed deviation shall
  548  continue until modified or revoked by subsequent mutual consent
  549  of the members’ collective bargaining representative or, if
  550  none, by a majority of the firefighter members of the fund, and
  551  the municipality or special fire control district. A special act
  552  plan or a plan within a supplemental plan municipality shall be
  553  considered to have mutually consented to such deviation as of
  554  July 1, 2014, regarding the existing arrangement on the use of
  555  premium tax revenues.
  556         (2) The premium tax provided by this chapter shall in all
  557  cases be used in its entirety to provide retirement extra
  558  benefits to firefighters, or to firefighters and police officers
  559  if both are included. However, local law plans in effect on
  560  October 1, 1998, must comply with the minimum benefit provisions
  561  of this chapter only to the extent that additional premium tax
  562  revenues become available to incrementally fund the cost of such
  563  compliance as provided in s. 175.162(2)(a). If a plan is in
  564  compliance with such minimum benefit provisions, as subsequent
  565  additional premium tax revenues become available, they must be
  566  used to provide extra benefits. Local law plans created by
  567  special act before May 27, 1939, are deemed to comply with this
  568  chapter. For the purpose of this chapter, the term:
  569         (a) “Additional premium tax revenues” means revenues
  570  received by a municipality or special fire control district
  571  pursuant to s. 175.121 which exceed that amount received for
  572  calendar year 1997.
  573         (b) “Extra benefits” means benefits in addition to or
  574  greater than those provided to general employees of the
  575  municipality and in addition to those in existence for
  576  firefighters on March 12, 1999.
  577         (3) A retirement plan or amendment to a retirement plan may
  578  not be proposed for adoption unless the proposed plan or
  579  amendment contains an actuarial estimate of the costs involved.
  580  Such proposed plan or proposed plan change may not be adopted
  581  without the approval of the municipality, special fire control
  582  district, or, where required permitted, the Legislature. Copies
  583  of the proposed plan or proposed plan change and the actuarial
  584  impact statement of the proposed plan or proposed plan change
  585  shall be furnished to the division before the last public
  586  hearing on the proposal is held thereon. Such statement must
  587  also indicate whether the proposed plan or proposed plan change
  588  is in compliance with s. 14, Art. X of the State Constitution
  589  and those provisions of part VII of chapter 112 which are not
  590  expressly provided in this chapter. Notwithstanding any other
  591  provision, only those local law plans created by special act of
  592  legislation before May 27, 1939, are deemed to meet the minimum
  593  benefits and minimum standards only in this chapter.
  594         (4) Notwithstanding any other provision, with respect to
  595  any supplemental plan municipality:
  596         (a) A local law plan and a supplemental plan may continue
  597  to use their definition of compensation or salary in existence
  598  on March 12, 1999.
  599         (b) Section 175.061(1)(b) does not apply, and a local law
  600  plan and a supplemental plan shall continue to be administered
  601  by a board or boards of trustees numbered, constituted, and
  602  selected as the board or boards were numbered, constituted, and
  603  selected on December 1, 2000.
  604         (c) The election set forth in paragraph (1)(b) is deemed to
  605  have been made.
  606         (5) The retirement plan setting forth the benefits and the
  607  trust agreement, if any, covering the duties and
  608  responsibilities of the trustees and the regulations of the
  609  investment of funds must be in writing, and copies made
  610  available to the participants and to the general public.
  611         (6) In addition to the defined benefit component of the
  612  local law plan, each plan sponsor must have a defined
  613  contribution plan component within the local law plan by October
  614  1, 2014, for noncollectively bargained service, upon entering
  615  into a collective bargaining agreement on or after July 1, 2014,
  616  or upon the creation date of a new participating plan. Depending
  617  upon the application of subsection (1), a defined contribution
  618  component may or may not receive any funding.
  619         (7) Notwithstanding any other provision of this chapter, a
  620  municipality or special fire control district that has
  621  implemented or proposed changes to a local law plan based on the
  622  municipality’s or district’s reliance on an interpretation of
  623  this chapter by the department on or after August 14, 2012, and
  624  before March 4, 2014, may continue the implemented changes or
  625  continue to implement proposed changes. Such reliance must be
  626  evidenced by a written collective bargaining proposal or
  627  agreement, or formal correspondence between the municipality or
  628  district and the department which describes the specific changes
  629  to the local law plan, with the initial proposal, agreement, or
  630  correspondence from the municipality or district dated before
  631  March 4, 2014. Changes to the local law plan which are otherwise
  632  contrary to the minimum benefits and minimum standards in this
  633  chapter may continue in effect until the earlier of October 1,
  634  2017, or the effective date of a collective bargaining agreement
  635  that is contrary to the changes to the local law plan.
  636         Section 7. Subsection (2) of section 185.01, Florida
  637  Statutes, is amended to read:
  638         185.01 Legislative declaration.—
  639         (2) This chapter hereby establishes, for all municipal
  640  pension plans now or hereinafter provided for under this
  641  chapter, including chapter plans and local law plans, minimum
  642  benefits and minimum standards for the operation and funding of
  643  such plans, hereinafter referred to as municipal police
  644  officers’ retirement trust funds, which must be met as
  645  conditions precedent to the plans or plan sponsors receiving a
  646  distribution of insurance premium tax revenues under s. 185.10.
  647  The minimum benefits and minimum standards for each plan as set
  648  forth in this chapter may not be diminished by local ordinance
  649  or by special act of the Legislature and may not, nor may the
  650  minimum benefits or minimum standards be reduced or offset by
  651  any other local, state, or federal plan that includes may
  652  include police officers in its operation, except as provided
  653  under s. 112.65.
  654         Section 8. Section 185.02, Florida Statutes, is amended to
  655  read:
  656         185.02 Definitions.—For any municipality, chapter plan,
  657  local law municipality, or local law plan under this chapter,
  658  the term following words and phrases as used in this chapter
  659  shall have the following meanings, unless a different meaning is
  660  plainly required by the context:
  661         (1) “Additional premium tax revenues” means revenues
  662  received by a municipality pursuant to s. 185.10 which exceed
  663  base premium tax revenues.
  664         (2)(1) “Average final compensation” means one-twelfth of
  665  the average annual compensation of the 5 best years of the last
  666  10 years of creditable service prior to retirement, termination,
  667  or death.
  668         (3) “Base premium tax revenues” means the revenues received
  669  by a municipality pursuant to s. 185.10 for the calendar year
  670  1997.
  671         (4)(2) “Casualty insurance” means automobile public
  672  liability and property damage insurance to be applied at the
  673  place of residence of the owner, or if the subject is a
  674  commercial vehicle, to be applied at the place of business of
  675  the owner; automobile collision insurance; fidelity bonds;
  676  burglary and theft insurance; and plate glass insurance. The
  677  term “multiple peril” means a combination or package policy that
  678  includes both property coverage and casualty coverage for a
  679  single premium.
  680         (5)(3) “Chapter plan” means a separate defined benefit
  681  pension plan for police officers which incorporates by reference
  682  the provisions of this chapter and has been adopted by the
  683  governing body of a municipality as provided in s. 185.08.
  684  Except as may be specifically authorized in this chapter, the
  685  provisions of a chapter plan may not differ from the plan
  686  provisions set forth in ss. 185.01-185.341 and ss. 185.37
  687  185.39. Actuarial valuations of chapter plans shall be conducted
  688  by the division as provided by s. 185.221(1)(b).
  689         (6)(4) “Compensation” or “salary” means, for
  690  noncollectively bargained service earned before July 1, 2011, or
  691  for service earned under collective bargaining agreements in
  692  place before July 1, 2011, the total cash remuneration including
  693  “overtime” paid by the primary employer to a police officer for
  694  services rendered, but not including any payments for extra duty
  695  or special detail work performed on behalf of a second party
  696  employer. Overtime may be limited prior to July 1, 2011, in a
  697  local law plan by the plan provisions A local law plan may limit
  698  the amount of overtime payments which can be used for retirement
  699  benefit calculation purposes; however, such overtime limit may
  700  not be less than 300 hours per officer per calendar year. For
  701  noncollectively bargained service earned on or after July 1,
  702  2011, or for service earned under collective bargaining
  703  agreements entered into on or after July 1, 2011, the term has
  704  the same meaning except that when calculating retirement
  705  benefits, up to 300 hours per year in overtime compensation may
  706  be included as specified in the plan or collective bargaining
  707  agreement, but payments for accrued unused sick or annual leave
  708  may not be included.
  709         (a) Any retirement trust fund or plan that meets the
  710  requirements of this chapter does not, solely by virtue of this
  711  subsection, reduce or diminish the monthly retirement income
  712  otherwise payable to each police officer covered by the
  713  retirement trust fund or plan.
  714         (b) The member’s compensation or salary contributed as
  715  employee-elective salary reductions or deferrals to any salary
  716  reduction, deferred compensation, or tax-sheltered annuity
  717  program authorized under the Internal Revenue Code shall be
  718  deemed to be the compensation or salary the member would receive
  719  if he or she were not participating in such program and shall be
  720  treated as compensation for retirement purposes under this
  721  chapter.
  722         (c) For any person who first becomes a member in any plan
  723  year beginning on or after January 1, 1996, compensation for
  724  that plan year may not include any amounts in excess of the
  725  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  726  the Omnibus Budget Reconciliation Act of 1993, which limitation
  727  of $150,000 shall be adjusted as required by federal law for
  728  qualified government plans and shall be further adjusted for
  729  changes in the cost of living in the manner provided by Internal
  730  Revenue Code s. 401(a)(17)(B). For any person who first became a
  731  member before the first plan year beginning on or after January
  732  1, 1996, the limitation on compensation may not be less than the
  733  maximum compensation amount that was allowed to be taken into
  734  account under the plan as in effect on July 1, 1993, which
  735  limitation shall be adjusted for changes in the cost of living
  736  since 1989 in the manner provided by Internal Revenue Code s.
  737  401(a)(17)(1991).
  738         (7)(5) “Creditable service” or “credited service” means the
  739  aggregate number of years of service and fractional parts of
  740  years of service of any police officer, omitting intervening
  741  years and fractional parts of years when such police officer may
  742  not have been employed by the municipality subject to the
  743  following conditions:
  744         (a) A No police officer may not will receive credit for
  745  years or fractional parts of years of service if he or she has
  746  withdrawn his or her contributions to the fund for those years
  747  or fractional parts of years of service, unless the police
  748  officer repays into the fund the amount he or she has withdrawn,
  749  plus interest as determined by the board. The member has shall
  750  have at least 90 days after his or her reemployment to make
  751  repayment.
  752         (b) A police officer may voluntarily leave his or her
  753  contributions in the fund for a period of 5 years after leaving
  754  the employ of the police department, pending the possibility of
  755  his or her being rehired by the same department, without losing
  756  credit for the time he or she has participated actively as a
  757  police officer. If he or she is not reemployed as a police
  758  officer with the same department within 5 years, his or her
  759  contributions shall be returned to him or her without interest.
  760         (c) Credited service under this chapter shall be provided
  761  only for service as a police officer, as defined in subsection
  762  (11), or for military service and may not include credit for any
  763  other type of service. A municipality may, by local ordinance,
  764  may provide for the purchase of credit for military service
  765  occurring before employment as well as prior service as a police
  766  officer for some other employer as long as the police officer is
  767  not entitled to receive a benefit for such other prior service
  768  as a police officer. For purposes of determining credit for
  769  prior service, in addition to service as a police officer in
  770  this state, credit may be given for federal, other state, or
  771  county service as long as such service is recognized by the
  772  Criminal Justice Standards and Training Commission within the
  773  Department of Law Enforcement as provided in under chapter 943
  774  or the police officer provides proof to the board of trustees
  775  that such service is equivalent to the service required to meet
  776  the definition of a police officer under subsection (16) (11).
  777         (d) In determining the creditable service of a any police
  778  officer, credit for up to 5 years of the time spent in the
  779  military service of the Armed Forces of the United States shall
  780  be added to the years of actual service, if:
  781         1. The police officer is in the active employ of the
  782  municipality before prior to such service and leaves a position,
  783  other than a temporary position, for the purpose of voluntary or
  784  involuntary service in the Armed Forces of the United States.
  785         2. The police officer is entitled to reemployment under the
  786  provisions of the Uniformed Services Employment and Reemployment
  787  Rights Act.
  788         3. The police officer returns to his or her employment as a
  789  police officer of the municipality within 1 year after from the
  790  date of his or her release from such active service.
  791         (8)(6) “Deferred Retirement Option Plan” or “DROP” means a
  792  local law plan retirement option in which a police officer may
  793  elect to participate. A police officer may retire for all
  794  purposes of the plan and defer receipt of retirement benefits
  795  into a DROP account while continuing employment with his or her
  796  employer. However, a police officer who enters the DROP and who
  797  is otherwise eligible to participate may shall not thereby be
  798  precluded from participation or continued participation
  799  participating, or continuing to participate, in a supplemental
  800  plan in existence on, or created after, March 12, 1999 the
  801  effective date of this act.
  802         (9) “Defined contribution plan” means the component of a
  803  local law plan, as provided in s. 185.35(1), to which deposits,
  804  if any, are made to provide benefits for police officers, or for
  805  police officers and firefighters if both are included. Such
  806  component is an element of a local law plan and exists in
  807  conjunction with the defined benefit component that meets the
  808  minimum benefits and minimum standards of this chapter. The
  809  retirement benefits, if any, of the defined contribution plan
  810  shall be provided through individual member accounts in
  811  accordance with the applicable provisions of the Internal
  812  Revenue Code and related regulations and are limited to the
  813  contributions, if any, made into each member’s account and the
  814  actual accumulated earnings, net of expenses, earned on the
  815  member’s account.
  816         (10)(7) “Division” means the Division of Retirement of the
  817  Department of Management Services.
  818         (11)(8) “Enrolled actuary” means an actuary who is enrolled
  819  under Subtitle C of Title III of the Employee Retirement Income
  820  Security Act of 1974 and who is a member of the Society of
  821  Actuaries or the American Academy of Actuaries.
  822         (12)(9) “Local law municipality” means is any municipality
  823  in which there exists a local law plan exists.
  824         (13)(10) “Local law plan” means a retirement defined
  825  benefit pension plan, that includes both a defined benefit plan
  826  component and a defined contribution plan component, for police
  827  officers, or for police officers and firefighters if both are,
  828  where included, as described in s. 185.35, established by
  829  municipal ordinance or special act of the Legislature, which
  830  enactment sets forth all plan provisions. Local law plan
  831  provisions may vary from the provisions of this chapter if the,
  832  provided that required minimum benefits and minimum standards of
  833  this chapter are met. However, any such variance must shall
  834  provide a greater benefit for police officers. Actuarial
  835  valuations of local law plans shall be conducted by an enrolled
  836  actuary as provided in s. 185.221(2)(b).
  837         (14) “Minimum benefits” means the benefits set forth in ss.
  838  185.01-185.341 and ss. 185.37-185.50.
  839         (15) “Minimum standards” means the standards set forth in
  840  ss. 185.01-185.341 and ss. 185.37-185.50.
  841         (16)(11) “Police officer” means any person who is elected,
  842  appointed, or employed full time by a any municipality, who is
  843  certified or required to be certified as a law enforcement
  844  officer in compliance with s. 943.1395, who is vested with
  845  authority to bear arms and make arrests, and whose primary
  846  responsibility is the prevention and detection of crime or the
  847  enforcement of the penal, criminal, traffic, or highway laws of
  848  the state. The term This definition includes all certified
  849  supervisory and command personnel whose duties include, in whole
  850  or in part, the supervision, training, guidance, and management
  851  responsibilities of full-time law enforcement officers, part
  852  time law enforcement officers, or auxiliary law enforcement
  853  officers, but does not include part-time law enforcement
  854  officers or auxiliary law enforcement officers as those terms
  855  the same are defined in s. 943.10(6) and (8), respectively. For
  856  the purposes of this chapter only, the term also includes
  857  “police officer” also shall include a public safety officer who
  858  is responsible for performing both police and fire services. Any
  859  plan may provide that the police chief shall have an option to
  860  participate, or not, in that plan.
  861         (17)(12) “Police Officers’ Retirement Trust Fund” means a
  862  trust fund, by whatever name known, as provided under s. 185.03
  863  for the purpose of assisting municipalities in establishing and
  864  maintaining a retirement plan for police officers.
  865         (18)(13) “Retiree” or “retired police officer” means a
  866  police officer who has entered retirement status. For the
  867  purposes of a plan that includes a Deferred Retirement Option
  868  Plan (DROP), a police officer who enters the DROP is shall be
  869  considered a retiree for all purposes of the plan. However, a
  870  police officer who enters the DROP and who is otherwise eligible
  871  to participate may shall not thereby be precluded from
  872  participating, or continuing to participate, in a supplemental
  873  plan in existence on, or created after, March 12, 1999 the
  874  effective date of this act.
  875         (19)(14) “Retirement” means a police officer’s separation
  876  from municipal city employment as a police officer with
  877  immediate eligibility for receipt of benefits under the plan.
  878  For purposes of a plan that includes a Deferred Retirement
  879  Option Plan (DROP), “retirement” means the date a police officer
  880  enters the DROP.
  881         (20) “Special act plan” means a plan subject to the
  882  provisions of this chapter which was created by an act of the
  883  Legislature and continues to require an act of the Legislature
  884  to alter plan benefits.
  885         (21) “Special benefits” means benefits provided in a
  886  defined contribution plan for police officers.
  887         (22)(15) “Supplemental plan” means a plan to which deposits
  888  of the premium tax moneys as provided in s. 185.08 are made to
  889  provide extra benefits to police officers, or police officers
  890  and firefighters if both are where included, under this chapter.
  891  Such a plan is an element of a local law plan and exists in
  892  conjunction with a defined benefit component plan that meets the
  893  minimum benefits and minimum standards of this chapter. Any
  894  supplemental plan in existence on March 1, 2014, shall be deemed
  895  to be a defined contribution plan in compliance with s.
  896  185.35(6).
  897         (23)(16) “Supplemental plan municipality” means a any local
  898  law municipality in which there existed a supplemental plan
  899  existed as of December 1, 2000.
  900         Section 9. Subsection (6) of section 185.06, Florida
  901  Statutes, is amended to read:
  902         185.06 General powers and duties of board of trustees.—For
  903  any municipality, chapter plan, local law municipality, or local
  904  law plan under this chapter:
  905         (6) To assist the board in meeting its responsibilities
  906  under this chapter, the board, if it so elects, may:
  907         (a) Employ independent legal counsel at the pension fund’s
  908  expense.
  909         (b) Employ an independent enrolled actuary, as defined in
  910  s. 185.02(8), at the pension fund’s expense.
  911         (c) Employ such independent professional, technical, or
  912  other advisers as it deems necessary at the pension fund’s
  913  expense.
  914  
  915  If the board chooses to use the municipality’s or special
  916  district’s legal counsel or actuary, or chooses to use any of
  917  the municipality’s other professional, technical, or other
  918  advisers, it must do so only under terms and conditions
  919  acceptable to the board.
  920         Section 10. Paragraph (d) of subsection (1) of section
  921  185.07, Florida Statutes, is amended to read:
  922         185.07 Creation and maintenance of fund.—For any
  923  municipality, chapter plan, local law municipality, or local law
  924  plan under this chapter:
  925         (1) The municipal police officers’ retirement trust fund in
  926  each municipality described in s. 185.03 shall be created and
  927  maintained in the following manner:
  928         (d) By payment by the municipality or other sources of a
  929  sum equal to the normal cost and the amount required to fund any
  930  actuarial deficiency shown by an actuarial valuation conducted
  931  under as provided in part VII of chapter 112 after taking into
  932  account the amounts described in paragraphs (b), (c), (e), (f),
  933  and (g) and the tax proceeds described in paragraph (a) which
  934  are used to fund defined benefit plan benefits.
  935  
  936  Nothing in this section shall be construed to require adjustment
  937  of member contribution rates in effect on the date this act
  938  becomes a law, including rates that exceed 5 percent of salary,
  939  provided that such rates are at least one-half of 1 percent of
  940  salary.
  941         Section 11. Subsection (2) of section 185.16, Florida
  942  Statutes, is amended to read:
  943         185.16 Requirements for retirement.—For any municipality,
  944  chapter plan, local law municipality, or local law plan under
  945  this chapter, any police officer who completes 10 or more years
  946  of creditable service as a police officer and attains age 55, or
  947  completes 25 years of creditable service as a police officer and
  948  attains age 52, and for such period has been a member of the
  949  retirement fund is eligible for normal retirement benefits.
  950  Normal retirement under the plan is retirement from the service
  951  of the city on or after the normal retirement date. In such
  952  event, for chapter plans and local law plans, payment of
  953  retirement income will be governed by the following provisions
  954  of this section:
  955         (2)(a) The amount of the monthly retirement income payable
  956  to a police officer who retires on or after his or her normal
  957  retirement date shall be an amount equal to the number of the
  958  police officer’s years of credited service multiplied by 2.75 2
  959  percent of his or her average final compensation. However, if
  960  current state contributions pursuant to this chapter are not
  961  adequate to fund the additional benefits to meet the minimum
  962  requirements in this chapter, only increment increases shall be
  963  required as state moneys are adequate to provide. Such
  964  increments shall be provided as state moneys become available.
  965         (b)Effective July 1, 2014, a plan that is in compliance
  966  with this chapter except that the plan provides a benefit that
  967  is less than 2.75 percent of the average final compensation of a
  968  police officer, as defined in section 185.16(2)(a), must
  969  maintain, at a minimum, the percentage amount in effect on July
  970  1, 2014, and is not required to increase the benefit to 2.75
  971  percent of the average final compensation of a police officer.
  972         (c)Effective July 1, 2014, a plan that is in compliance
  973  with this chapter except that the plan provides a benefit that
  974  is less than 2.75 percent of the average final compensation of a
  975  police officer, as defined in section 185.16(2)(a), and that
  976  changes its accrual rate to 2.75 percent, or greater, of the
  977  average final compensation of a police officer, as defined in
  978  section 185.16(2)(a), may not thereafter decrease the accrual
  979  rate to less than 2.75 percent of the average final compensation
  980  of a police officer as defined in section 185.16(2)(a).
  981         Section 12. Section 185.35, Florida Statutes, is amended to
  982  read:
  983         185.35 Municipalities that have having their own retirement
  984  pension plans for police officers.—For any municipality, chapter
  985  plan, local law municipality, or local law plan under this
  986  chapter, In order for a municipality that has its municipalities
  987  with their own retirement plan pension plans for police
  988  officers, or for police officers and firefighters if both are
  989  included, to participate in the distribution of the tax fund
  990  established under pursuant to s. 185.08, a local law plan plans
  991  must meet the minimum benefits and minimum standards set forth
  992  in this chapter:
  993         (1) If a municipality has a retirement pension plan for
  994  police officers, or for police officers and firefighters if both
  995  are included, which, in the opinion of the division, meets the
  996  minimum benefits and minimum standards set forth in this
  997  chapter, the board of trustees of the pension plan must, as
  998  approved by a majority of police officers of the municipality,
  999  may:
 1000         (a) place the income from the premium tax in s. 185.08 in
 1001  such pension plan for the sole and exclusive use of its police
 1002  officers, or its police officers and firefighters if both are
 1003  included, where it shall become an integral part of that pension
 1004  plan and shall be used to fund benefits as provided herein.
 1005  Effective October 1, 2014, for noncollectively bargained service
 1006  or upon entering into a collective bargaining agreement on or
 1007  after July 1, 2014:
 1008         (a) The base premium tax revenues must be used to fund
 1009  minimum benefits or other retirement benefits in excess of the
 1010  minimum benefits as determined by the municipality.
 1011         (b) Of the additional premium tax revenues received which
 1012  are in excess of the amount received for the 2013 calendar year,
 1013  50 percent must be used to fund minimum benefits or other
 1014  retirement benefits in excess of the minimum benefits as
 1015  determined by the municipality, and 50 percent must be placed in
 1016  a defined contribution plan to fund special benefits.
 1017         (c) Additional premium tax revenues not described in
 1018  paragraph (b) must be used to fund benefits that are not
 1019  included in the minimum benefits. If the additional premium tax
 1020  revenues subject to this paragraph exceed the full cost of
 1021  benefits provided through the plan which are in excess of the
 1022  minimum benefits, any amount in excess of the full cost must be
 1023  used as provided in paragraph (b).
 1024         (d) Any accumulations of additional premium tax revenues
 1025  which have not been applied to fund benefits in excess of the
 1026  minimum benefits may be allocated by mutual consent as provided
 1027  in paragraph (g). If such accumulations are not allocated by
 1028  mutual consent, 50 percent of the amount of the accumulations
 1029  must be used to fund special benefits and 50 percent must be
 1030  applied to fund any unfunded actuarial liabilities of the plan
 1031  pay extra benefits to the police officers included in that
 1032  pension plan; or
 1033         (b) May place the income from the premium tax in s. 185.08
 1034  in a separate supplemental plan to pay extra benefits to the
 1035  police officers, or police officers and firefighters if
 1036  included, participating in such separate supplemental plan.
 1037         (e) For a plan created after March 1, 2014, 50 percent of
 1038  the insurance premium tax revenues shall be used to fund defined
 1039  benefit plan component benefits, with the remainder used to fund
 1040  defined contribution plan component benefits.
 1041         (f) If a plan offers benefits in excess of the minimum
 1042  benefits, excluding supplemental plan benefits in effect as of
 1043  September 30, 2013, such benefits may be reduced if the plan
 1044  continues to meet the minimum benefits and the minimum standards
 1045  set forth in this chapter. The amount of insurance premium tax
 1046  revenues previously used to fund benefits in excess of the
 1047  minimum benefits, excluding supplemental plan benefits in effect
 1048  as of September 30, 2013, before the reduction must be used as
 1049  provided in paragraph (b). However, benefits in excess of the
 1050  minimum benefits may not be reduced if a plan does not meet the
 1051  minimum accrual rate of 2.75 percent, or greater, of the average
 1052  final compensation of a police officer, as defined in section
 1053  185.16(2)(a).
 1054         (g) Notwithstanding any other provisions of this
 1055  subsection, the use of premium tax revenues, including any
 1056  accumulations of additional tax revenues which have not been
 1057  applied to fund benefits in excess of the minimum benefits, may
 1058  deviate from the provisions of this subsection by mutual consent
 1059  of the members’ collective bargaining representative or, if
 1060  none, by majority consent of the police office members of the
 1061  fund, and by consent of the municipality, provided that the plan
 1062  continues to meet the minimum benefits and minimum standards of
 1063  this chapter; however, a plan operating pursuant to the
 1064  provisions of this paragraph which does not meet a minimum
 1065  benefit as of October 1, 2012, may continue to provide the
 1066  benefit that does not meet the minimum benefit at the same
 1067  level, but not less than that level, as was provided as of
 1068  October 1, 2012, and all other benefits must continue to meet
 1069  the minimum benefits. Such mutually agreed deviation shall
 1070  continue until modified or revoked by subsequent mutual consent
 1071  of the members’ collective bargaining representative or, if
 1072  none, by a majority of the police office members of the fund,
 1073  and the municipality. A special act plan or a plan within a
 1074  supplemental plan municipality shall be considered to have
 1075  mutually consented to such deviation as of July 1, 2014,
 1076  regarding the existing arrangement on the use of premium tax
 1077  revenues.
 1078         (2) The premium tax provided by this chapter shall in all
 1079  cases be used in its entirety to provide retirement extra
 1080  benefits to police officers, or to police officers and
 1081  firefighters if both are included. However, local law plans in
 1082  effect on October 1, 1998, must comply with the minimum benefit
 1083  provisions of this chapter only to the extent that additional
 1084  premium tax revenues become available to incrementally fund the
 1085  cost of such compliance as provided in s. 185.16(2). If a plan
 1086  is in compliance with such minimum benefit provisions, as
 1087  subsequent additional tax revenues become available, they shall
 1088  be used to provide extra benefits. Local law plans created by
 1089  special act before May 27, 1939, shall be deemed to comply with
 1090  this chapter. For the purpose of this chapter, the term:
 1091         (a) “Additional premium tax revenues” means revenues
 1092  received by a municipality pursuant to s. 185.10 which exceed
 1093  the amount received for calendar year 1997.
 1094         (b) “Extra benefits” means benefits in addition to or
 1095  greater than those provided to general employees of the
 1096  municipality and in addition to those in existence for police
 1097  officers on March 12, 1999.
 1098         (3) A retirement plan or amendment to a retirement plan may
 1099  not be proposed for adoption unless the proposed plan or
 1100  amendment contains an actuarial estimate of the costs involved.
 1101  Such proposed plan or proposed plan change may not be adopted
 1102  without the approval of the municipality or, where required
 1103  permitted, the Legislature. Copies of the proposed plan or
 1104  proposed plan change and the actuarial impact statement of the
 1105  proposed plan or proposed plan change shall be furnished to the
 1106  division before the last public hearing on the proposal is held
 1107  thereon. Such statement must also indicate whether the proposed
 1108  plan or proposed plan change is in compliance with s. 14, Art. X
 1109  of the State Constitution and those provisions of part VII of
 1110  chapter 112 which are not expressly provided in this chapter.
 1111  Notwithstanding any other provision, only those local law plans
 1112  created by special act of legislation before May 27, 1939, are
 1113  deemed to meet the minimum benefits and minimum standards only
 1114  in this chapter.
 1115         (4) Notwithstanding any other provision, with respect to
 1116  any supplemental plan municipality:
 1117         (a) Section 185.02(6)(a) 185.02(4)(a) does not apply, and a
 1118  local law plan and a supplemental plan may continue to use their
 1119  definition of compensation or salary in existence on March 12,
 1120  1999.
 1121         (b) A local law plan and a supplemental plan must continue
 1122  to be administered by a board or boards of trustees numbered,
 1123  constituted, and selected as the board or boards were numbered,
 1124  constituted, and selected on December 1, 2000.
 1125         (c) The election set forth in paragraph (1)(b) is deemed to
 1126  have been made.
 1127         (5) The retirement plan setting forth the benefits and the
 1128  trust agreement, if any, covering the duties and
 1129  responsibilities of the trustees and the regulations of the
 1130  investment of funds must be in writing and copies made available
 1131  to the participants and to the general public.
 1132         (6) In addition to the defined benefit component of the
 1133  local law plan, each plan sponsor must have a defined
 1134  contribution plan component within the local law plan by October
 1135  1, 2014, upon entering into a collective bargaining agreement on
 1136  or after July 1, 2014, or upon the creation date of a new
 1137  participating plan. Depending upon the application of subsection
 1138  (1), a defined contribution component may or may not receive any
 1139  funding.
 1140         (7) Notwithstanding any other provision of this chapter, a
 1141  municipality that has implemented or proposed changes to a local
 1142  law plan based on the municipality’s reliance on an
 1143  interpretation of this chapter by the department on or after
 1144  August 14, 2012, and before March 4, 2014, may continue the
 1145  implemented changes or continue to implement proposed changes.
 1146  Such reliance must be evidenced by a written collective
 1147  bargaining proposal or agreement, or formal correspondence
 1148  between the municipality and the department which describes the
 1149  specific changes to the local law plan, with the initial
 1150  proposal, agreement, or correspondence from the municipality
 1151  dated before March 4, 2014. Changes to the local law plan which
 1152  are otherwise contrary to the minimum benefits and minimum
 1153  standards of this chapter may continue in effect until the
 1154  earlier of October 1, 2017, or the effective date of a
 1155  collective bargaining agreement that is contrary to the changes
 1156  to the local law plan.
 1157         Section 13. The Legislature finds that a proper and
 1158  legitimate state purpose is served when employees and retirees
 1159  of this state and its political subdivisions, and the
 1160  dependents, survivors, and beneficiaries of such employees and
 1161  retirees, are extended the basic protections afforded by
 1162  governmental retirement systems that provide fair and adequate
 1163  benefits and that are managed, administered, and funded in an
 1164  actuarially sound manner as required under s. 14, Article X of
 1165  the State Constitution and part VII of chapter 112, Florida
 1166  Statutes. Therefore, the Legislature determines and declares
 1167  that this act fulfills an important state interest.
 1168         Section 14. This act shall take effect July 1, 2014.