Senate Bill 0270
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Florida Senate - 1998 SB 270
By Senators Childers, Dudley, Dyer, Silver, Turner, Jones,
Casas, Forman, Campbell, Holzendorf, Jenne, Thomas,
Diaz-Balart, Gutman, Crist, Rossin, Brown-Waite, Bronson,
Harris, Klein, Myers, Kurth, Meadows, McKay and Clary
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1 A bill to be entitled
2 An act relating to municipal firefighters'
3 pension trust funds and municipal police
4 officers' retirement trust funds; amending and
5 revising the provisions of chapters 175 and
6 185, F.S.; defining "chapter plans" and "local
7 law plans"; redefining "compensation" or
8 "salary" for retirement purposes under these
9 chapters; clarifying the applicability of
10 minimum benefits for both chapter and local law
11 plans; revising investment provisions to permit
12 cities greater investment latitude to make
13 foreign investments; eliminating discriminatory
14 language in conformance with state and federal
15 discrimination provisions; providing that
16 certain benefits provided are a minimum and may
17 not be diminished by any other state, local, or
18 federal benefits; providing an exception;
19 modifying the formula for calculating volunteer
20 firefighter service retirement benefits;
21 clarifying terminology relating to "sole and
22 exclusive use of" premium tax funds and "extra
23 benefits" by providing that moneys must be
24 placed in a police-only or firefighter-only
25 plan or a combined police and firefighter plan
26 as opposed to placing moneys in any type of
27 plan that includes general employees; providing
28 for establishment of a new board and for
29 transfer of assets in certain cases; creating
30 s. 175.195, F.S.; prohibiting certain
31 fraudulent practices; providing criminal and
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1 administrative penalties; repealing s. 175.152,
2 F.S., relating to contributions; repealing s.
3 175.251, F.S., relating to employment records
4 that are required to be kept by the secretary
5 of the board of trustees; repealing s. 175.291,
6 F.S., relating to the requirement that the
7 attorney for the municipality or special fire
8 control district represent the board of
9 trustees upon request and the option to employ
10 independent counsel and other persons;
11 repealing s. 175.321, F.S., relating to the
12 application of certain provisions to
13 municipalities and fire control districts;
14 repealing s. 175.331, F.S., relating to the
15 rights of firefighters under former law;
16 repealing s. 175.391, F.S., relating to payment
17 of attorney's fees and costs; repealing s.
18 185.14, F.S., relating to contributions;
19 repealing s. 185.15, F.S., relating to
20 contributions and new employees; creating s.
21 185.185, F.S.; prohibiting certain fraudulent
22 practices; providing criminal and
23 administrative penalties; repealing s. 185.27,
24 F.S., relating to the roster of retirees;
25 repealing s. 185.29, F.S., relating to the city
26 attorney representing the board of trustees;
27 repealing s. 185.32, F.S., relating to
28 exemptions from the chapter; repealing s.
29 185.36, F.S., relating to the rights of police
30 officers under former laws; repealing s.
31
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1 185.40, F.S., relating to costs and attorney's
2 fees; providing an effective date.
3
4 Be It Enacted by the Legislature of the State of Florida:
5
6 Section 1. Section 175.021, Florida Statutes, is
7 amended to read:
8 175.021 Legislative declaration.--
9 (1) It is hereby declared by the Legislature that
10 firefighters, as hereinafter defined, perform state and
11 municipal functions; that it is their duty to extinguish
12 fires, to protect life, and to protect property at their own
13 risk and peril; that it is their duty to prevent conflagration
14 and to continuously instruct school personnel, public
15 officials, and private citizens in the prevention of fires and
16 firesafety; that they protect both life and property from
17 local emergencies as defined in s. 252.34(3); and that their
18 activities are vital to the public safety. It is further
19 declared that firefighters employed by special fire control
20 districts serve under the same circumstances and perform the
21 same duties as firefighters employed by municipalities and
22 should therefore be entitled to the benefits available under
23 this chapter. Therefore, the Legislature declares that it is
24 a proper and legitimate state purpose to provide a uniform
25 retirement system for the benefit of firefighters as
26 hereinafter defined and intends, in implementing the
27 provisions of s. 14, Art. X of the State Constitution as they
28 relate to municipal and special district firefighters' pension
29 trust fund systems and plans, that such retirement systems or
30 plans be managed, administered, operated, and funded in such
31 manner as to maximize the protection of the firefighters'
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1 pension trust funds. Pursuant to s. 18, Art. VII of the State
2 Constitution, the Legislature hereby determines and declares
3 that the provisions of this act fulfill an important state
4 interest.
5 (2) This chapter hereby establishes, for all municipal
6 and special district pension plans existing now or hereafter
7 under this chapter, including chapter plans and local law
8 plans, minimum benefits and minimum standards for the
9 operation and funding of such municipal and special district
10 firefighters' pension trust fund systems and plans,
11 hereinafter referred to as firefighters' pension trust funds.
12 The minimum benefits and minimum standards set forth in this
13 chapter may not be diminished by local charter, ordinance, or
14 resolution or by special act of the Legislature, nor may the
15 minimum benefits or minimum standards be reduced or offset by
16 any other local, state, or federal law that may include
17 firefighters in its operation, except as provided under s.
18 112.65.
19 Section 2. Section 175.032, Florida Statutes, is
20 amended to read:
21 (Substantial rewording of section. See
22 s. 175.032, F.S., for present text.)
23 175.032 Definitions.--For any municipality, special
24 fire control district, chapter plan, local law municipality,
25 local law special fire control district, or local law plan
26 under this chapter, the following words and phrases have the
27 following meanings:
28 (1)(a) "Average final compensation" for a full-time
29 firefighter means one-twelfth of the average annual
30 compensation of the 5 best years of the last 10 years of
31 creditable service prior to retirement, termination, or death,
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1 or the career average as a full-time firefighter since July 1,
2 1953, whichever is greater. A year shall be 12 consecutive
3 months or such other consecutive period of time as is used and
4 consistently applied.
5 (b) "Average final compensation" for a volunteer
6 firefighter means the average salary of the 5 best years of
7 the last 10 best contributing years prior to change in status
8 to a permanent full-time firefighter or retirement as a
9 volunteer firefighter or the career average of a volunteer
10 firefighter, since July 1, 1953, whichever is greater.
11 (2) "Chapter plan" means a separate defined benefit
12 pension plan for firefighters which incorporates by reference
13 the provisions of this chapter and has been adopted by the
14 governing body of a municipality or special district. Except
15 as may be specifically authorized in this chapter, provisions
16 of a chapter plan may not differ from the plan provisions set
17 forth in ss. 175.021-175.341 and 175.361-175.401. Actuarial
18 valuations of chapter plans shall be conducted by the division
19 as provided by s. 175.261(1).
20 (3) "Compensation" or "salary" means the fixed monthly
21 remuneration paid a firefighter; where, as in the case of a
22 volunteer firefighter, remuneration is based on actual
23 services rendered, the term means the total cash remuneration
24 received yearly for such services, prorated on a monthly
25 basis.
26 (a) A retirement trust fund or plan may use a
27 definition of salary other than the definition in this
28 subsection but only if the monthly retirement income payable
29 to each firefighter covered by the retirement trust fund or
30 plan, as determined under s. 175.162(2)(a) and using such
31 other definition, equals or exceeds the monthly retirement
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1 income that would be payable to each firefighter if his
2 monthly retirement income were determined under s.
3 175.162(2)(a) and using the definition in this subsection.
4 (b) Any retirement trust fund or plan which now or
5 hereafter meets the requirements of this chapter shall not,
6 solely by virtue of this subsection, reduce or diminish the
7 monthly retirement income otherwise payable to each
8 firefighter covered by the retirement trust fund or plan.
9 (c) The member's compensation or salary contributed as
10 employee-elective salary reductions or deferrals to any salary
11 reduction, deferred compensation, or tax-sheltered annuity
12 program authorized under the Internal Revenue Code shall be
13 deemed to be the compensation or salary the member would
14 receive if he or she were not participating in such program
15 and shall be treated as compensation for retirement purposes
16 under this chapter.
17 (d) For any person who first becomes a member in any
18 plan year beginning on or after January 1, 1996, compensation
19 for any plan year shall not include any amounts in excess of
20 the Internal Revenue Code Section 401(a)(17) limitation [as
21 amended by the Omnibus Budget Reconciliation Act of 1993],
22 which limitation of $150,000 shall be adjusted as required by
23 federal law for qualified government plans and shall be
24 further adjusted for changes in the cost of living in the
25 manner provided by Internal Revenue Code Section
26 401(a)(17)(B). For any person who first became a member prior
27 to the first plan year beginning on or after January 1, 1996,
28 the limitation on compensation shall be not less than the
29 maximum compensation amount that was allowed to be taken into
30 account under the plan as in effect on July 1, 1993, which
31 limitation shall be adjusted for changes in the cost of living
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1 since 1989 in the manner provided by Internal Revenue Code
2 Section 401(a)(17)(1991).
3 (4) "Creditable service" or "credited service" means
4 the aggregate number of years of service, and fractional parts
5 of years of service, of any firefighter, omitting intervening
6 years and fractional parts of years when such firefighter may
7 not have been employed by the municipality or special fire
8 control district, subject to the following conditions:
9 (a) No firefighter will receive credit for years or
10 fractional parts of years of service if he or she has
11 withdrawn his or her contributions to the fund for those years
12 or fractional parts of years of service, unless the
13 firefighter repays into the fund the amount he or she has
14 withdrawn, plus interest determined by the board. The member
15 shall have at least 90 days after his or her reemployment to
16 make repayment.
17 (b) A firefighter may voluntarily leave his or her
18 contributions in the fund for a period of 5 years after
19 leaving the employ of the fire department, pending the
20 possibility of being rehired by the same department, without
21 losing credit for the time he or she has participated actively
22 as a firefighter. If the firefighter is not reemployed as a
23 firefighter, with the same department, within 5 years, his or
24 her contributions shall be returned without interest.
25 (c) Credited service under this chapter shall be
26 provided only for service as a firefighter, as defined in s.
27 175.032(8), or for military service and shall not include
28 credit for any other type of service. A municipality may, by
29 local ordinance, or a special fire control district may, by
30 resolution, provide for the purchase of credit for military
31 service prior to employment as well as for prior service as a
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1 firefighter for some other employer as long as a firefighter
2 is not already receiving a benefit for such other prior
3 service as a firefighter.
4 (d) In determining the creditable service of any
5 firefighter, credit for up to 5 years of the time spent in the
6 military service of the Armed Forces of the United States
7 shall be added to the years of actual service if:
8 1. The firefighter is in the active employ of an
9 employer immediately prior to such service and leaves a
10 position, other than a temporary position, for the purpose of
11 voluntary or involuntary service in the Armed Forces of the
12 United States.
13 2. The firefighter is entitled to reemployment under
14 the provisions of the Uniformed Services Employment and
15 Reemployment Rights Act.
16 3. The firefighter returns to his or her employment as
17 a firefighter of the municipality or special fire control
18 district within 1 year from the date of release from such
19 active service.
20 (5) "Deferred Retirement Option Plan" or "DROP" means
21 a local law plan retirement option in which a firefighter may
22 elect to participate. A firefighter may retire for all
23 purposes of the plan and defer receipt of retirement benefits
24 into a DROP account while continuing employment with his
25 employer. However, a firefighter who enters the DROP and who
26 is otherwise eligible to participate shall not thereby be
27 precluded from participating, or continuing to participate, in
28 a supplemental plan in existence on, or created after, the
29 effective date of this act.
30 (6) "Division" means the Division of Retirement of the
31 Department of Management Services.
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1 (7) "Enrolled actuary" means an actuary who is
2 enrolled under Subtitle C of Title III of the Employee
3 Retirement Income Security Act of 1974 and who is a member of
4 the Society of Actuaries or the American Academy of Actuaries.
5 (8)(a) "Firefighter" means any person employed solely
6 by a constituted fire department of any municipality or
7 special fire control district who is certified as a
8 firefighter as a condition of employment in accordance with
9 the provisions of s. 633.35 and whose duty it is to extinguish
10 fires, to protect life, or to protect property. However, for
11 purposes of this chapter only, "firefighter" also includes
12 public safety officers who are responsible for performing both
13 police and fire services, who are certified as police officers
14 or firefighters, and who are certified by their employers to
15 the Insurance Commissioner and Treasurer as participating in
16 this chapter prior to October 1, 1979. Effective October 1,
17 1979, public safety officers who have not been certified as
18 participating in this chapter shall be considered police
19 officers for retirement purposes and shall be eligible to
20 participate in chapter 185. Any plan may provide that the fire
21 chief shall have an option to participate, or not, in that
22 plan.
23 (b) "Volunteer firefighter" means any person whose
24 name is carried on the active membership roll of a constituted
25 volunteer fire department or a combination of a paid and
26 volunteer fire department of any municipality or special fire
27 control district and whose duty it is to extinguish fires, to
28 protect life, and to protect property. Compensation for
29 services rendered by a volunteer firefighter shall not
30 disqualify him or her as a volunteer. A person shall not be
31 disqualified as a volunteer firefighter solely because he or
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1 she has other gainful employment. Any person who volunteers
2 assistance at a fire but is not an active member of a
3 department described herein is not a volunteer firefighter
4 within the meaning of this paragraph.
5 (9) "Firefighter's Pension Trust Fund" means a trust
6 fund, by whatever name known, as provided under s. 175.041,
7 for the purpose of assisting municipalities and special fire
8 control districts in establishing and maintaining a retirement
9 plan for firefighters.
10 (10) "Local law municipality" is any municipality in
11 which there exists a local law plan.
12 (11) "Local law plan" means a defined benefit pension
13 plan for firefighters, or for firefighters or police officers
14 where included, as described in s. 175.351, established by
15 municipal ordinance, special district resolution, or special
16 act of the Legislature, which enactment sets forth all plan
17 provisions. Local law plan provisions may vary from the
18 provisions of this chapter, provided that required minimum
19 benefits and standards are met. Any such variance shall
20 provide a greater benefit for firefighters. Actuarial
21 valuations of local law plans shall be conducted by an
22 enrolled actuary as provided in s. 175.261(2).
23 (12) "Local law special fire control district" is any
24 special fire control district in which there exists a local
25 law plan.
26 (13) "Property insurance" means property insurance as
27 defined in s. 624.604 and covers real and personal property
28 within the corporate limits of any municipality, or within the
29 boundaries of any special fire control district, within the
30 state. "Multiple peril" means a combination or package policy
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1 that includes both property and casualty coverage for a single
2 premium.
3 (14) "Retiree" or "retired firefighter" means a
4 firefighter who has entered retirement status. For the
5 purposes of a plan that includes a Deferred Retirement Option
6 Plan (DROP), a firefighter who enters the DROP shall be
7 considered a retiree for all purposes of the plan. However, a
8 firefighter who enters the DROP and who is otherwise eligible
9 to participate shall not thereby be precluded from
10 participating, or continuing to participate, in a supplemental
11 plan in existence on, or created after, the effective date of
12 this act.
13 (15) "Retirement" means a firefighter's separation
14 from city or fire district employment as a firefighter with
15 immediate eligibility for receipt of benefits under the plan.
16 For purposes of a plan that includes a Deferred Retirement
17 Option Plan (DROP), "retirement" means the date a firefighter
18 enters the DROP.
19 (16) "Special fire control district" means a special
20 district, as defined in s. 189.403(1), established for the
21 purposes of extinguishing fires, protecting life, and
22 protecting property within the incorporated or unincorporated
23 portions of any county or combination of counties, or within
24 any combination of incorporated and unincorporated portions of
25 any county or combination of counties. The term does not
26 include any dependent or independent special district, as
27 defined in s. 189.403(2) and (3), respectively, the employees
28 of which are members of the Florida Retirement System pursuant
29 to s. 121.051(1) or (2).
30 (17) "Supplemental plan" means a plan to which
31 deposits are made to provide extra benefits for firefighters,
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1 or for firefighters and police officers where included under
2 this chapter. Such a plan is an element of a local law plan
3 and exists in conjunction with a defined benefit plan that
4 meets the minimum benefits and minimum standards of this
5 chapter.
6 (18) "Supplemental plan municipality" means any local
7 law municipality in which there existed a supplemental plan,
8 of any type or nature, as of January 1, 1997.
9 Section 3. Section 175.041, Florida Statutes, is
10 amended to read:
11 175.041 Firefighters' Pension Trust Fund created;
12 applicability of provisions.--For any municipality, special
13 fire control district, chapter plan, local law municipality,
14 local law special fire control district, or local law plan
15 under this chapter:
16 (1) There shall be established is hereby created a
17 special fund exclusively for the purpose of this chapter,
18 which in the case of chapter plans shall to be known as the
19 "Firefighters' Pension Trust Fund," exclusively for the
20 purpose of this chapter, in each municipality and each special
21 fire control district of this state heretofore or hereafter
22 created which now has or which may hereafter have a
23 constituted fire department or an authorized volunteer fire
24 department, or any combination thereof, and which municipality
25 or special fire control district does not presently have
26 established by law, special law, or local ordinance a similar
27 fund.
28 (2) To qualify as a fire department or volunteer fire
29 department or combination thereof under the provisions of this
30 chapter, the department shall own and use apparatus for the
31 fighting of fires that is in compliance with National Fire
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1 Protection Association Standards for Automotive Fire
2 Apparatus.
3 (3) The provisions of this chapter shall apply only to
4 municipalities organized and established pursuant to the laws
5 of the state and to special fire control districts, and said
6 provisions shall not apply to the unincorporated areas of any
7 county or counties except with respect to special fire control
8 districts that include unincorporated areas, nor shall the
9 provisions hereof apply to any governmental entity whose
10 firefighters are eligible to employees participate in the
11 Florida Retirement System. Special fire control districts
12 that include, or consist exclusively of, unincorporated areas
13 of one or more counties may levy and impose the tax and
14 participate in the retirement programs enabled by this
15 chapter.
16 (4) No municipality shall establish more than one
17 retirement plan for public safety officers which is supported
18 in whole or in part by the distribution of premium tax funds
19 as provided by this chapter or chapter 185, nor shall any
20 municipality establish a retirement plan for public safety
21 officers which receives premium tax funds from both this
22 chapter and chapter 185.
23 (5) The plan provisions, participation, and benefits
24 as set forth in this chapter must be provided on a
25 nondiscriminatory basis.
26 Section 4. Section 175.051, Florida Statutes, is
27 amended to read:
28 175.051 Actuarial deficits not state obligation.--For
29 any municipality, special fire control district, chapter plan,
30 local law municipality, local law special fire control
31 district, or local law plan under this chapter, actuarial
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1 deficits, if any, arising under this chapter act, shall not be
2 the obligation of the state.
3 Section 5. Section 175.061, Florida Statutes, is
4 amended to read:
5 175.061 Board of trustees; members, terms of office;
6 meetings; legal entity; costs; attorney's fees.--For any
7 municipality, special fire control district, chapter plan,
8 local law municipality, local law special fire control
9 district, or local law plan under this chapter:
10 (1) In each municipality and in each special fire
11 control district there is hereby created a board of trustees
12 of the firefighters' pension trust fund, which shall be solely
13 responsible for administering the trust fund. Effective
14 October 1, 1986, and thereafter:,
15 (a) The membership of the board of trustees for a
16 chapter plan shall consist of five members, two of whom,
17 unless otherwise prohibited by law, shall be legal residents
18 of the municipality or special fire control district, who
19 shall be appointed by the governing body of the municipality
20 or special fire control district, and two of whom shall be
21 full-time firefighters as defined in s. 175.032 who shall be
22 elected by a majority of the active firefighters who are
23 members of such plan. With respect to any chapter plan or
24 local law plan that, on January 1, 1997, allowed retired
25 firefighters to vote in such elections, retirees may continue
26 to vote in such elections. The fifth member shall be chosen by
27 a majority of the previous four members as provided for
28 herein, and such person's name shall be submitted to the
29 governing body of the municipality or special fire control
30 district. Upon receipt of the fifth person's name, the
31 governing body of the municipality or special fire control
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1 district shall, as a ministerial duty, appoint such person to
2 the board of trustees as its fifth member. The fifth member
3 shall have the same rights as each of the other four members
4 appointed or elected as herein provided, shall serve as
5 trustee for a period of 2 years, and may succeed himself or
6 herself in office. Each resident member shall serve as
7 trustee for a period of 2 years, unless sooner replaced by the
8 governing body at whose pleasure he or she shall serve, and
9 may succeed himself or herself as a trustee. Each firefighter
10 member shall serve as trustee for a period of 2 years, unless
11 he or she sooner leaves the employment of the municipality or
12 special fire control district as a firefighter, whereupon a
13 successor shall be chosen in the same manner as an original
14 appointment. Each firefighter may succeed himself or herself
15 in office.
16 (b) The membership of boards of trustees for local law
17 plans shall be as follows:
18 1. If a municipality or special fire control district
19 has a pension plan for firefighters only, the provisions of
20 paragraph (a) shall apply.
21 2. If a municipality has a pension plan for
22 firefighters and police officers, the provisions of paragraph
23 (a) shall apply, except that one member of the board shall be
24 a firefighter as defined in s. 175.032 and one member of the
25 board shall be a police officer as defined in s. 185.02,
26 respectively elected by a majority of the active firefighters
27 or police officers who are members of the plan.
28 3. Any board of trustees operating a local law plan on
29 July 1, 1998, which is combined with a plan for general
30 employees shall hold an election of the firefighters, or
31 firefighters and police officers, if included, to determine
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1 whether a plan is to be established for firefighters only, or
2 for firefighters and police officers where included. Based on
3 the election results, a new board shall be established as
4 provided in subparagraph 1. or 2., as appropriate. The
5 municipality or fire control district shall enact an ordinance
6 or resolution to implement the new board by October 1, 1998.
7 The newly established board shall take whatever action is
8 necessary to determine the amount of assets which is
9 attributable to firefighters, or firefighters and police
10 officers where included. Such assets shall include all
11 employer, employee, and state contributions made by or on
12 behalf of firefighters, or firefighters and police officers
13 where included, and any investment income derived from such
14 contributions. All such moneys shall be transferred into the
15 newly established retirement plan, as directed by the board.
16
17 With respect to any board of trustees operating a local law
18 plan on June 30, 1986, nothing in this paragraph shall permit
19 the reduction of the membership percentage of firefighters, or
20 of firefighters and police officers where a joint or mixed
21 fund exists. The board of trustees shall meet at least
22 quarterly each year. Each board of trustees shall be a legal
23 entity with, in addition to other powers and responsibilities
24 contained herein, the power to bring and defend lawsuits of
25 every kind, nature, and description.
26 (2) The trustees shall by a majority vote elect from
27 their number a chair and a secretary. The secretary of the
28 board shall keep a complete minute book of the actions,
29 proceedings, or hearings of the board. The trustees shall not
30 receive any compensation as such, but may receive expenses and
31 per diem as provided by Florida law.
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1 (3) The board of trustees shall meet at least
2 quarterly each year.
3 (4) Each board of trustees shall be a legal entity
4 with, in addition to other powers and responsibilities
5 contained herein, the power to bring and defend lawsuits of
6 every kind, nature, and description.
7 (5) In any judicial proceeding or administrative
8 proceeding under chapter 120 brought under or pursuant to the
9 provisions of this chapter, the prevailing party shall be
10 entitled to recover the costs thereof, together with
11 reasonable attorney's fees.
12 (6) The provisions of this section may not be altered
13 by a participating municipality or special fire control
14 district operating a chapter plan or local law plan under this
15 chapter.
16 Section 6. Section 175.071, Florida Statutes, is
17 amended to read:
18 175.071 General powers and duties of board of
19 trustees.--For any municipality, special fire control
20 district, chapter plan, local law municipality, local law
21 special fire control district, or local law plan under this
22 chapter:
23 (1) The board of trustees may:
24 (a) Invest and reinvest the assets of the
25 firefighters' pension trust fund in annuity and life insurance
26 contracts of life insurance companies in amounts sufficient to
27 provide, in whole or in part, the benefits to which all of the
28 participants in the firefighters' pension trust fund shall be
29 entitled under the provisions of this chapter and pay the
30 initial and subsequent premiums thereon.
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1 (b) Invest and reinvest the assets of the
2 firefighters' pension trust fund in:
3 1. Time or savings accounts of a national bank, a
4 state bank insured by the Bank Insurance Fund Federal Deposit
5 Insurance Corporation, or a savings, building, and loan
6 association insured by the Savings Association Insurance Fund
7 which is administered by the Federal Deposit Insurance
8 Corporation Federal Savings and Loan Insurance Corporation.
9 2. Obligations of the United States or obligations
10 guaranteed as to principal and interest by the Government of
11 the United States.
12 3. Bonds issued by the State of Israel.
13 4. Bonds, stocks, or other evidences of indebtedness
14 issued or guaranteed by a corporation organized under the laws
15 of the United States, any state or organized territory of the
16 United States, or the District of Columbia, provided:
17 a. The corporation is listed on any one or more of the
18 recognized national stock exchanges and holds a rating in one
19 of the three highest classifications by a major rating
20 service; and
21 b. The board of trustees shall not invest more than 5
22 percent of its assets in the common stock or capital stock of
23 any one issuing company, nor shall the aggregate investment in
24 any one issuing company exceed 5 percent of the outstanding
25 capital stock of that company or the aggregate of its
26 investments under this subparagraph at market cost exceed 50
27 30 percent of the assets of the fund. Investment experience
28 producing a market value percent exceeding the stated limit
29 does not arbitrarily mean assets are to be liquidated to
30 satisfy the limit.
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1 This paragraph shall apply to all boards of trustees and
2 participants. However, in the event that a municipality or
3 special fire control district has a duly enacted pension plan
4 pursuant to, and in compliance with, s. 175.351, and the
5 trustees thereof desire to vary the investment procedures
6 herein, the trustees of such plan shall request a variance of
7 the investment procedures as outlined herein only through a
8 municipal ordinance, special act of the Legislature, or
9 resolution by the governing body of the special fire control
10 district; where a special act, or a municipality by ordinance
11 adopted prior to the effective date of this act October 1,
12 1986, permits a greater than 50-percent 30-percent equity
13 investment, such municipality shall not be required to comply
14 with the aggregate equity investment provisions of this
15 paragraph. The board of trustees may invest up to 10 percent
16 of plan assets in foreign securities. Investments shall not be
17 made in any stocks, bonds, or other securities owned or
18 controlled by a government other than that of the United
19 States or the several states.
20 (c) Issue drafts upon the firefighters' pension trust
21 fund pursuant to this act and rules and regulations prescribed
22 by the board of trustees. All such drafts shall be
23 consecutively numbered, be signed by the chair and secretary,
24 and state upon their faces the purpose for which the drafts
25 are drawn. The treasurer or depository of each municipality
26 or special fire control district shall retain such drafts when
27 paid, as permanent vouchers for disbursements made, and no
28 money shall be otherwise drawn from the fund.
29 (d) Convert into cash any securities of the fund.
30 (e) Keep a complete record of all receipts and
31 disbursements and of the board's acts and proceedings.
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1 (2) Any and all acts and decisions shall be
2 effectuated by vote of a majority of the at least three
3 members of the board; however, no trustee shall take part in
4 any action in connection with the trustee's own participation
5 in the fund, and no unfair discrimination shall be shown to
6 any individual firefighter participating in the fund.
7 (3) The board's action on all claims for retirement
8 under this act shall be final, provided, however, that the
9 rules and regulations of the board have been complied with.
10 (4) The secretary of the board of trustees shall keep
11 a record of all persons receiving retirement payments under
12 the provisions of this chapter, in which shall be noted the
13 time when the pension is allowed and when the pension shall
14 cease to be paid. In this record, the secretary shall keep a
15 list of all firefighters employed by the municipality or
16 special fire control district. The record shall show the
17 name, address, and time of employment of such firefighters and
18 when they cease to be employed by the municipality or special
19 fire control district.
20 (5)(4) The sole and exclusive administration of, and
21 the responsibilities for, the proper operation of the
22 firefighters' pension trust fund and for making effective the
23 provisions of this chapter are vested in the board of
24 trustees; however, nothing herein shall empower a board of
25 trustees to amend the provisions of a retirement plan without
26 the approval of the municipality or special fire control
27 district. The board of trustees shall keep in convenient form
28 such data as shall be necessary for an actuarial valuation of
29 the firefighters' pension trust fund and for checking the
30 actual experience of the fund.
31
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1 (6)(a)(5) At least once every 3 years, the board of
2 trustees shall retain a professionally qualified an
3 independent consultant who shall professionally qualified to
4 evaluate the performance of any existing professional money
5 manager and managers. The independent consultant shall make
6 recommendations to the board of trustees regarding the
7 selection of money managers for the next investment term.
8 These recommendations shall be considered by the board of
9 trustees at its next regularly scheduled meeting. The date,
10 time, place, and subject of this meeting shall be advertised
11 in the same manner as for any meeting of the board a newspaper
12 of general circulation in the municipality or special fire
13 control district, as appropriate, at least 10 days prior to
14 the date of the hearing.
15 (b) For purposes of this subsection, a "professionally
16 qualified independent consultant" means a consultant who,
17 based on education and experience, is professionally qualified
18 to evaluate the performance of professional money managers,
19 and who, at a minimum:
20 1. Provides his or her services on a flat-fee basis.
21 2. Is not associated in any manner with the money
22 manager for the pension fund.
23 3. Makes calculations according to the American
24 Banking Institute method of calculating time-weighted rates of
25 return. All calculations must be made net of fees.
26 4. Has 3 or more years of experience working in the
27 public sector.
28 (7) To assist the board in meeting its
29 responsibilities under this chapter, the board, if it so
30 elects, may:
31
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1 (a) Employ independent legal counsel at the pension
2 fund's expense.
3 (b) Employ an independent actuary, as defined in s.
4 175.032(6), at the pension fund's expense.
5 (c) Employ such independent professional, technical,
6 or other advisers as it deems necessary at the pension fund's
7 expense.
8
9 If the board chooses to use the city's or special district's
10 legal counsel or actuary, or chooses to use any of the city's
11 or special district's other professional, technical, or other
12 advisers, it shall do so only under terms and conditions
13 acceptable to the board.
14 Section 7. Section 175.081, Florida Statutes, is
15 amended to read:
16 175.081 Use of annuity or insurance policies.--When
17 the board of trustees of any municipality, special fire
18 control district, chapter plan, local law municipality, local
19 law special fire control district, or local law plan purchases
20 annuity or life insurance contracts to provide all or any part
21 of the benefits as provided for by this chapter act, the
22 following principles shall be observed:
23 (1) Only those firefighters who have been members of
24 the firefighters' pension trust fund for 1 year or more may
25 participate in the insured plan.
26 (2) Individual policies shall be purchased only when a
27 group insurance plan is not feasible.
28 (3) Each application and policy shall designate the
29 firefighters' pension trust fund as owner of the policy.
30 (4) Policies shall be written on an annual premium
31 basis.
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1 (5) The type of policy shall be one which for the
2 premium paid provides each individual with the maximum
3 retirement benefit at his or her earliest statutory normal
4 retirement age.
5 (6) Death benefit, if any, should not exceed:
6 (a) One hundred times the estimated normal retirement
7 income, based on the assumption that the present rate of
8 compensation continues without change to normal retirement
9 date, or
10 (b) Twice the annual rate of compensation as of the
11 date of termination of service, or
12 (c) The single-sum value of the accrued deferred
13 retirement income (beginning at normal retirement date) at
14 date of termination of service, whichever is greatest.
15 (7) An insurance plan may provide that the assignment
16 of insurance contract to separating firefighters shall be at
17 least equivalent to the return of the firefighters'
18 contributions used to purchase the contract. An assignment of
19 contract discharges the municipality or special fire control
20 district, as appropriate, from all further obligation to the
21 participant under the plan even though the cash value of such
22 contract may be less than the firefighters' contributions.
23 (8) Provisions shall be made, either by issuance of
24 separate policies or otherwise, that the separating
25 firefighter does not receive cash value and other benefits
26 under the policies assigned to him or her which exceed the
27 present value of his or her vested interest under the
28 firefighters' pension trust fund, inclusive of his or her
29 contribution to the plan; the contributions by the state shall
30 not be exhausted faster merely because the method of funding
31 adopted was through insurance companies.
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1 (9) The firefighter shall have the right at any time
2 to give the board of trustees written instructions designating
3 the primary and contingent beneficiaries to receive death
4 benefits or proceeds and the method of settlement of the death
5 benefit or proceeds, or requesting a change in the beneficiary
6 designation or method of settlement previously made, subject
7 to the terms of the policy or policies on his or her life.
8 Upon receipt of such written instructions, the board of
9 trustees shall take necessary steps to effectuate the
10 designation or change of beneficiary or settlement option.
11 Section 8. Section 175.091, Florida Statutes, is
12 amended to read:
13 175.091 Creation and maintenance of fund.--For any
14 municipality, special fire control district, chapter plan,
15 local law municipality, local law special fire control
16 district, or local law plan under this chapter:
17 (1) The firefighters' pension trust fund in each
18 municipality and in each special fire control district shall
19 be created and maintained in the following manner:
20 (a) By payment to the fund of the net proceeds of the
21 1.85-percent excise or other similar tax which may be imposed
22 by the municipality or special fire control district upon fire
23 insurance companies, fire insurance associations, or other
24 property insurers on their gross receipts on premiums from
25 holders of policies, which policies cover real or personal
26 property within the corporate limits of such municipality, in
27 the case of a municipal government, and within the legally
28 defined jurisdiction of the district, in the case of a special
29 fire control district. Whenever a municipality maintains a
30 firefighters' pension trust fund under the provisions of this
31 chapter but is partially contained within the boundaries of a
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1 special fire control district, that portion of the
2 1.85-percent excise, license, or other similar tax which is
3 collected for insurance policies covering property within the
4 jurisdiction of both the municipality and the special fire
5 control district shall be given to the firefighters' pension
6 trust fund of the fire service provider. Remaining revenues
7 collected pursuant to this chapter shall be distributed to the
8 municipality or special fire control district according to the
9 location of the insured property.
10 (b) Except as reduced or increased contributions are
11 authorized by subsection (2), by the payment to the fund of 5
12 percent of the salary of each uniformed firefighter who is a
13 member or duly enrolled in the fire department of any
14 municipality or special fire control district, which 5 percent
15 shall be deducted by the municipality or special fire control
16 district from the compensation due to the firefighter and paid
17 over to the board of trustees of the firefighters' pension
18 trust fund wherein such firefighter is employed. A
19 firefighter participating in the old age survivors insurance
20 of the federal Social Security Law may limit his or her
21 contribution to the firefighters' pension trust fund to 3
22 percent of his or her annual compensation and receive reduced
23 benefits as set forth in ss. 175.191(5) and 175.211. No
24 firefighter shall have any right to the money so paid into the
25 fund except as provided in this chapter.
26 (c) By all fines and forfeitures imposed and collected
27 from any firefighter because of the violation of any rule and
28 regulation promulgated by the board of trustees.
29 (d) By mandatory payment by the municipality or
30 special fire control district of a sum equal to the normal
31 cost of and the amount required to fund over a period of 40
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1 years or on a 40-year basis, any actuarial deficiency shown by
2 an a quinquennial actuarial valuation as provided in part VII
3 of chapter 112. The first such actuarial valuation shall be
4 conducted for the calendar year ending December 31, 1967.
5 (e) By all gifts, bequests, and devises when donated
6 to the fund.
7 (f) By all accretions to the fund by way of interest
8 or dividends on bank deposits, or otherwise.
9 (g) By all other sources or income now or hereafter
10 authorized by law for the augmentation of such firefighters'
11 pension trust fund.
12 (2) Member contribution rates may be adjusted as
13 follows:
14 (a) The employing municipality or special fire control
15 district, by local ordinance or resolution, may elect to make
16 an employee's contributions. However, under no circumstances
17 may a municipality or special fire control district reduce the
18 member contribution to less than one-half of 1 percent of
19 salary.
20 (b) Firefighter member contributions may be increased
21 by consent of the members' collective bargaining
22 representative or, if none, by majority consent of firefighter
23 members of the fund to provide greater benefits.
24
25 Nothing in this section shall be construed to require
26 adjustment of member contribution rates in effect on the date
27 this act becomes a law, including rates that exceed 5 percent
28 of salary, provided that such rates are at least one-half of 1
29 percent of salary.
30 Section 9. Section 175.101, Florida Statutes, is
31 amended to read:
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1 175.101 State excise tax on property insurance
2 premiums authorized; procedure.--For any municipality, special
3 fire control district, chapter plan, local law municipality,
4 local law special fire control district, or local law plan
5 under this chapter:
6 (1) Each municipality or special fire control district
7 in this state described and classified in s. 175.041, having a
8 lawfully established firefighters' pension trust fund or
9 municipal fund or special fire control district fund, by
10 whatever name known, providing pension benefits to
11 firefighters as provided under this chapter by whatever name
12 known, may assess and impose on every insurance company,
13 corporation, or other insurer now engaged in or carrying on,
14 or who shall hereinafter engage in or carry on, the business
15 of property insurance as shown by the records of the
16 Department of Insurance an excise tax in addition to any
17 lawful license or excise tax now levied by each of the
18 municipalities or special fire control districts,
19 respectively, amounting to 1.85 percent of the gross amount of
20 receipts of premiums from policyholders on all premiums
21 collected on property insurance policies covering property
22 within the corporate limits of such municipalities or within
23 the legally defined boundaries of special fire control
24 districts, respectively. This tax shall apply to all insurers,
25 whether authorized or not, transacting business in this state.
26 Whenever the boundaries of a special fire control district
27 that has lawfully established a firefighters' pension trust
28 fund encompass a portion of the corporate territory of a
29 municipality that has also lawfully established a
30 firefighters' pension trust fund, that portion of the tax
31 receipts attributable to insurance policies covering property
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1 situated both within the municipality and the special fire
2 control district shall be given to the fire service provider.
3 The agent shall identify the fire service provider on the
4 property owner's application for insurance. Remaining
5 revenues collected pursuant to this chapter shall be
6 distributed to the municipality or special fire control
7 district according to the location of the insured property.
8 (2) In the case of multiple peril policies with a
9 single premium for both the property and casualty coverages in
10 such policies, 70 percent of such premium shall be used as the
11 basis for the 1.85-percent tax.
12 (3) This excise tax shall be payable annually on March
13 1 of each year after the passage of an ordinance, in the case
14 of a municipality, or resolution, in the case of a special
15 fire control district, assessing and imposing the tax
16 authorized by this section. Installments of taxes shall be
17 paid according to the provision of s. 624.5092(2)(a), (b), and
18 (c).
19 Section 10. Section 175.111, Florida Statutes, is
20 amended to read:
21 175.111 Certified copy of ordinance or resolution
22 filed; insurance companies' annual report of premiums;
23 duplicate files; book of accounts.--For any municipality,
24 special fire control district, chapter plan, local law
25 municipality, local law special fire control district, or
26 local law plan under this chapter, whenever any municipality
27 passes an ordinance, or whenever any special fire control
28 district passes a resolution establishing a chapter plan or
29 local law plan, assessing and imposing the taxes authorized in
30 s. 175.101, a certified copy of such ordinance or resolution
31 shall be deposited with the division. Thereafter every
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1 insurance company, association, corporation, or other insurer
2 carrying on the business of property insurance on real or
3 personal property, on or before the succeeding March 1 after
4 date of the passage of the ordinance or resolution, shall
5 report fully in writing and under oath to the division and the
6 Department of Revenue a just and true account of all premiums
7 by such insurer received for property insurance policies
8 covering or insuring any real or personal property located
9 within the corporate limits of each such municipality or
10 special fire control district during the period of time
11 elapsing between the date of the passage of the ordinance or
12 resolution and the end of the calendar year succeeding March
13 1. The report shall include the code designation as
14 prescribed by the division for each piece of insured property,
15 real or personal, located within the corporate limits of each
16 municipality and within the legally defined boundaries of each
17 special fire control district. The aforesaid insurer shall
18 annually thereafter, on March 1, file with the division and
19 the Department of Revenue a similar report covering the
20 preceding year's premium receipts, and every such insurer at
21 the same time of making such reports shall pay to the
22 Department of Revenue the amount of the tax hereinbefore
23 mentioned. Every insurer engaged in carrying on such
24 insurance business in the state shall keep accurate books of
25 accounts of all such business done by it within the corporate
26 limits of each such municipality and within the legally
27 defined boundaries of each such special fire control district,
28 and in such manner as to be able to comply with the provisions
29 of this chapter. Based on the insurers' reports of premium
30 receipts, the division shall prepare a consolidated premium
31 report and shall furnish to any municipality or special fire
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1 control district requesting the same a copy of the relevant
2 section of that report.
3 Section 11. Section 175.121, Florida Statutes, is
4 amended to read:
5 175.121 Department of Revenue and Division of
6 Retirement to keep accounts of deposits; disbursements.--For
7 any municipality or special fire control district having a
8 chapter or local law plan established pursuant to this
9 chapter:
10 (1) The Department of Revenue shall keep a separate
11 account of all moneys collected for each municipality and each
12 special fire control district under the provisions of this
13 chapter. All moneys so collected must be transferred to the
14 Police and Firefighters' Premium Tax Trust Fund and shall be
15 separately accounted for by the division. The moneys budgeted
16 as necessary to pay the expenses of the division for the daily
17 oversight and monitoring of the firefighters' pension plans
18 under this chapter and for the oversight and actuarial reviews
19 conducted under part VII of chapter 112 are annually
20 appropriated from the interest and investment income earned on
21 the moneys collected for each municipality or special fire
22 control district and deposited in the Police and Firefighters'
23 Premium Tax Trust Fund. Interest and investment income
24 remaining thereafter in the trust fund which is unexpended and
25 otherwise unallocated by law shall revert to the General
26 Revenue Fund on June 30 of each year.
27 (2) The Comptroller shall, on or before July 1 June 1
28 of each year, and at such other times as authorized by the
29 division, draw his or her warrants on the full net amount of
30 money then on deposit in the Police and Firefighters' Premium
31 Tax Trust Fund pursuant to this chapter, specifying the
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1 municipalities and special fire control districts to which the
2 moneys must be paid and the net amount collected for and to be
3 paid to each municipality or special fire control district,
4 respectively, subject to the limitation on disbursement under
5 s. 175.122. The sum payable to each municipality or special
6 fire control district is appropriated annually out of the
7 Police and Firefighters' Premium Tax Trust Fund. The warrants
8 of the Comptroller shall be payable to the respective
9 municipalities and special fire control districts entitled to
10 receive them and shall be remitted annually by the division to
11 the respective municipalities and special fire control
12 districts. In order for a municipality or special fire control
13 district and its pension fund to participate in the
14 distribution of premium tax moneys under this chapter, all the
15 provisions shall be complied with annually, including state
16 acceptance pursuant to part VII of chapter 112.
17 (3)(a) All moneys not distributed to municipalities
18 and special fire control districts under this section as a
19 result of the limitation on disbursement contained in s.
20 175.122, or as a result of any municipality or special fire
21 control district not having qualified in any given year, or
22 portion thereof, shall be transferred to the Firefighters'
23 Supplemental Compensation Trust Fund administered by the
24 Department of Revenue, as provided in s. 633.382.
25 (b)1. Moneys transferred under paragraph (a) but not
26 needed to support the supplemental compensation program in a
27 given year shall be redistributed pro rata to those
28 participating municipalities and special fire control
29 districts that transfer any portion of their funds to support
30 the supplemental compensation program in that year. Such
31
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1 additional moneys shall be used to cover or offset costs of
2 the retirement plan.
3 2. To assist the Department of Revenue, the division
4 shall identify those municipalities and special fire control
5 districts that are eligible for redistribution as provided in
6 s. 633.382(4)(c)2., by listing the municipalities and special
7 fire control districts from which funds were transferred under
8 paragraph (a) and specifying the amount transferred by each.
9 Section 12. Section 175.122, Florida Statutes, is
10 amended to read:
11 175.122 Limitation of disbursement.--For any
12 municipality, special fire control district, chapter plan,
13 local law municipality, local law special fire control
14 district, or local law plan under this chapter, any
15 municipality or special fire control district participating in
16 the firefighters' pension trust fund pursuant to the
17 provisions of this chapter, whether under a chapter plan or
18 local law plan, shall be limited to receiving any moneys from
19 such fund in excess of that produced by one-half of the excise
20 tax, as provided for in s. 175.101; however, any such
21 municipality or special fire control district receiving less
22 than 6 percent of its fire department payroll from such fund
23 shall be entitled to receive from such fund the amount
24 determined under s. 175.121, in excess of one-half of the
25 excise tax, not to exceed 6 percent of its fire department
26 payroll. Payroll amounts of members included in the Florida
27 Retirement System shall not be included.
28 Section 13. Section 175.131, Florida Statutes, is
29 amended to read:
30 175.131 Funds received by municipality or special fire
31 control district; deposit in firefighters' pension trust
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1 fund.--For any municipality, special fire control district,
2 chapter plan, local law municipality, local law special fire
3 control district, or local law plan under this chapter, all
4 state and other funds received by any municipality or special
5 fire control district under the provisions of this chapter
6 shall be deposited by such municipality or special fire
7 control district immediately, and under no circumstances more
8 than 5 days after receipt, with the board of trustees.
9 Employee contributions, however, which are withheld by the
10 employer on behalf of an employee member shall be deposited
11 immediately after each pay period with the board of trustees
12 of the firefighters' pension trust fund at least monthly.
13 Employer contributions shall be deposited at least quarterly.
14 Section 14. Section 175.141, Florida Statutes, is
15 amended to read:
16 175.141 Payment of excise tax credit on similar state
17 excise or license tax.--The tax herein authorized to be
18 imposed by each municipality and each special fire control
19 district shall in nowise be in addition to any similar state
20 excise or license tax imposed by part IV of chapter 624, but
21 the payor of the tax hereby authorized shall receive credit
22 therefor on his or her said state excise or license tax and
23 the balance of said state excise or license tax shall be paid
24 to the Department of Revenue Insurance Commissioner and
25 Treasurer as is now provided by law.
26 Section 15. Section 175.151, Florida Statutes, is
27 amended to read:
28 175.151 Penalty for failure of insurers to comply with
29 this act.--Should any insurance company, corporation or other
30 insurer fail to comply with the provisions of this act, on or
31 before March 1 of each year as herein provided, the
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1 certificate of authority issued to said insurance company,
2 corporation or other insurer to transact business in this
3 state may be canceled and revoked by the Department of
4 Insurance, and it is unlawful for any such insurance company,
5 corporation, or other insurer to transact business thereafter
6 in this state unless such insurance company, corporation, or
7 other insurer shall be granted a new certificate of authority
8 to transact any business in this state, in compliance with
9 provisions of law authorizing such certificate of authority to
10 be issued. The division is responsible for notifying the
11 Department of Insurance regarding any such failure to comply.
12 Section 16. Section 175.152, Florida Statutes, is
13 repealed.
14 Section 17. Section 175.162, Florida Statutes, is
15 amended to read:
16 175.162 Requirements for retirement.--For any
17 municipality, special fire control district, chapter plan,
18 local law municipality, local law special fire control
19 district, or local law plan under this chapter, any
20 firefighter who completes 10 or more years of creditable
21 service as a firefighter and attains age 55, or completes 25
22 years of creditable service as a firefighter and attains age
23 52, and who for such minimum period has been a member of the
24 firefighters' pension trust fund operating under a chapter
25 plan or local law plan, is eligible for normal retirement
26 benefits. Normal retirement under the plan is retirement from
27 the service of the municipality or special fire control
28 district on or after the normal retirement date. In such
29 event, payment of retirement income will be governed by the
30 following provisions of this section:
31
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1 (1) The normal retirement date of each firefighter
2 will be the first day of the month coincident with or next
3 following the date on which he or she has completed 10 or more
4 years of creditable service and attained age 55 or completed
5 25 years of creditable service and attained age 52.
6 (2)(a) The amount of monthly retirement income payable
7 to a full-time firefighter who retires on or after his or her
8 normal retirement date shall be an amount equal to the number
9 of his or her years of credited service multiplied by 2
10 percent of his or her average final compensation as a
11 full-time firefighter. If the plan has a cap on benefit
12 accrual which was in existence on January 1, 1997, the cap may
13 continue if and only if there is consent of the members'
14 collective bargaining representative or, if none, by majority
15 consent of the firefighter members of the fund to retain the
16 cap. The vote to retain the cap must be held within 6 months
17 after the effective date of this act. The retirement income
18 shall be reduced for moneys received under the disability
19 provisions of this chapter. However, if current state
20 contributions pursuant to this chapter are not adequate to
21 fund the additional benefits to meet the minimum requirements
22 in this chapter, only such incremental increases shall be
23 required as state moneys are adequate to provide. Such
24 increments shall be provided as state moneys become available.
25 (b) The amount of monthly retirement income payable to
26 a volunteer firefighter who retires on or after his or her
27 normal retirement date shall firefighter who retires on or
28 after his or her normal retirement date shall equal the
29 greater of:
30
31
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1 1. be an amount equal to The number of his or her
2 years of credited service multiplied by 2 percent of his or
3 her average final compensation as a volunteer firefighter; or
4 2. The sum of $20 for each of the first 20 years of
5 credited service and $5 for each additional year of credited
6 service. If the firefighter has been contributing only 3
7 percent of his or her salary, the firefighter's monthly
8 retirement income shall be an amount equal to the number of
9 his or her years of credited service multiplied by 1.2 percent
10 of his or her average final compensation.
11 (3) The monthly retirement income payable in the event
12 of normal retirement will be payable on the first day of each
13 month. The first payment will be made on the firefighter's
14 normal retirement date, or on the first day of the month
15 coincident with or next following his or her actual
16 retirement, if later, and the last payment will be the payment
17 due next preceding the firefighter's death; except that, in
18 the event the firefighter dies after retirement but before he
19 or she has received retirement benefits for a period of 10
20 years, the same monthly benefit will be paid to the
21 beneficiary (or beneficiaries) as designated by the
22 firefighter for the balance of such 10-year period. If a
23 firefighter continues in the service of the municipality or
24 special fire control district beyond his or her normal
25 retirement date and dies prior to his or her date of actual
26 retirement, without an option made pursuant to s. 175.171
27 being in effect, monthly retirement income payments will be
28 made for a period of 10 years to a beneficiary (or
29 beneficiaries) designated by the firefighter as if the
30 firefighter had retired on the date on which his or her death
31 occurred.
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1 (4) Early retirement under the plan is retirement from
2 the service of the municipality or special fire control
3 district, with the consent of the municipality or special fire
4 control district, as of the first day of any calendar month
5 which is prior to the firefighter's normal retirement date but
6 subsequent to the date as of which he or she has both attained
7 the age of 50 years and has been a member of this fund for 10
8 continuous years. In the event of early retirement, payment
9 of retirement income shall be governed as follows: The
10 monthly amount of retirement income payable to a firefighter
11 who retires prior to his or her normal retirement date shall
12 be in the amount computed as described in subsection (2),
13 taking into account the firefighter's credited service to his
14 or her date of actual retirement and final monthly
15 compensation as of such date, such amount of retirement income
16 to be actuarially reduced to take into account the
17 firefighter's younger age and the earlier commencement of
18 retirement income benefits. The amount of monthly income
19 payable in the event of early retirement will be paid in the
20 same manner as in subsection (3). In no event shall the early
21 retirement reduction exceed 3 percent for each year by which
22 the member's age at retirement preceded the member's normal
23 retirement age, as provided in subsection (1).
24 Section 18. Section 175.171, Florida Statutes, is
25 amended to read:
26 175.171 Optional forms of retirement income.--For any
27 municipality, special fire control district, chapter plan,
28 local law municipality, local law special fire control
29 district, or local law plan under this chapter:
30 (1) In lieu of the amount and form of retirement
31 income payable in the event of normal or early retirement as
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1 specified in s. 175.162, a firefighter, upon written request
2 to the board of trustees and submission of evidence of good
3 health (except that such evidence will not be required if such
4 request is made at least 3 years prior to the date of
5 commencement of retirement income or if such request is made
6 within 6 months following the effective date of the plan, if
7 later), and subject to the approval of the board of trustees,
8 may elect to receive a retirement income or benefit of
9 equivalent actuarial value payable in accordance with one of
10 the following options:
11 (a) A retirement income of larger monthly amount,
12 payable to the firefighter for his or her lifetime only.
13 (b) A retirement income of a modified monthly amount,
14 payable to the firefighter during the joint lifetime of the
15 firefighter and a dependent joint pensioner designated by the
16 firefighter, and following the death of either of them, 100
17 percent, 75 percent, 66 2/3 percent, or 50 percent of such
18 monthly amounts payable to the survivor for the lifetime of
19 the survivor.
20 (c) Such other amount and form of retirement payments
21 or benefits as, in the opinion of the board of trustees, will
22 best meet the circumstances of the retiring firefighter.
23 1. The firefighter upon electing any option of this
24 section will designate the joint pensioner or beneficiary (or
25 beneficiaries) to receive the benefit, if any, payable under
26 the plan in the event of his or her death, and will have the
27 power to change such designation from time to time, but any
28 such change shall be deemed a new election and will be subject
29 to approval by the board of trustees. Such designation will
30 name a joint pensioner or one or more primary beneficiaries
31 where applicable. If a firefighter has elected an option with
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1 a joint pensioner or beneficiary and his or her retirement
2 income benefits have commenced, the firefighter may thereafter
3 change the designated joint pensioner or beneficiary, but only
4 if the board of trustees consents to such change and if the
5 joint pensioner last previously designated by the firefighter
6 is alive when the firefighter files with the board of trustees
7 a request for such change.
8 2. The consent of a firefighter's joint pensioner or
9 beneficiary to any such change shall not be required.
10 3. The board of trustees may request such evidence of
11 the good health of the joint pensioner that is being removed
12 as it may require and the amount of the retirement income
13 payable to the firefighter upon designation of a new joint
14 pensioner shall be actuarially redetermined taking into
15 account the age and sex of the former joint pensioner, the new
16 joint pensioner, and the firefighter. Each such designation
17 will be made in writing on a form prepared by the board of
18 trustees and on completion will be filed with the board of
19 trustees. In the event that no designated beneficiary
20 survives the firefighter, such benefits as are payable in the
21 event of the death of the firefighter subsequent to his or her
22 retirement shall be paid as provided in s. 175.181.
23 (2) Retirement income payments shall be made under the
24 option elected in accordance with the provisions of this
25 section and shall be subject to the following limitations:
26 (a) If a firefighter dies prior to his or her normal
27 retirement date or early retirement date, whichever first
28 occurs, no retirement benefit will be payable under the option
29 to any person, but the benefits, if any, will be determined
30 under s. 175.201.
31
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1 (b) If the designated beneficiary (or beneficiaries)
2 or joint pensioner dies before the firefighter's retirement
3 under the plan, the option elected will be canceled
4 automatically and a retirement income of the normal form and
5 amount will be payable to the firefighter upon retirement as
6 if the election had not been made, unless a new election is
7 made in accordance with the provisions of this section or a
8 new beneficiary is designated by the firefighter prior to
9 retirement and within 90 days after the death of the
10 beneficiary.
11 (c) If both the retired firefighter and the
12 beneficiary (or beneficiaries) designated by him or her die
13 before the full payment has been effected under any option
14 providing for payments for a period certain and life
15 thereafter, made pursuant to the provisions of paragraph
16 (1)(c), the board of trustees may, in its discretion, direct
17 that the commuted value of the remaining payments be paid in a
18 lump sum and in accordance with s. 175.181.
19 (d) If a firefighter continues beyond his or her
20 normal retirement date pursuant to the provisions of s.
21 175.162(1) and dies prior to actual retirement and while an
22 option made pursuant to the provisions of this section is in
23 effect, monthly retirement income payments will be made, or a
24 retirement benefit will be paid, under the option to a
25 beneficiary (or beneficiaries) designated by the firefighter
26 in the amount or amounts computed as if the firefighter had
27 retired under the option on the date on which death occurred.
28 (3) No firefighter may make any change in his or her
29 retirement option after the date of cashing or depositing the
30 first retirement check.
31
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1 Section 19. Section 175.181, Florida Statutes, is
2 amended to read:
3 175.181 Beneficiaries.--For any municipality, special
4 fire control district, chapter plan, local law municipality,
5 local law special fire control district, or local law plan
6 under this chapter:
7 (1) Each firefighter may, on a form provided for that
8 purpose, signed and filed with the board of trustees,
9 designate a choice of one or more persons, named sequentially
10 or jointly, as his or her beneficiary (or beneficiaries) to
11 receive the benefit, if any, which may be payable in the event
12 of his or her death; and each designation may be revoked by
13 such firefighter by signing and filing with the board of
14 trustees a new designation-of-beneficiary form.
15 (2) If no beneficiary is named in the manner provided
16 by subsection (1), or if no beneficiary designated by the
17 member survives him, a deceased firefighter fails to name a
18 beneficiary in the manner prescribed in subsection (1), or if
19 the beneficiary (or beneficiaries) named by a deceased
20 firefighter predecease the firefighter, the death benefit, if
21 any, which may be payable under the plan with respect to such
22 deceased firefighter shall may be paid by, in the discretion
23 of the board of trustees, either to the estate of such
24 deceased firefighter, provided that the board of trustees, in
25 its discretion, may direct that the commuted value of the
26 remaining monthly income payments be paid in a lump sum.:
27
28 Any payment made to any person pursuant to this subsection
29 shall operate as a complete discharge of all obligations under
30 the plan with regard to the deceased firefighter and any other
31 persons with rights under the plan and shall not be subject to
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1 review by anyone but shall be final, binding, and conclusive
2 on all persons ever interested hereunder.
3 (a) The spouse or dependent children of the
4 firefighter; or
5 (b) The dependent living parents of the firefighter.
6 (3) Notwithstanding any other provision of law to the
7 contrary, the surviving spouse of any pension participant
8 member killed in the line of duty shall not lose survivor
9 retirement benefits if the spouse remarries. The surviving
10 spouse of such deceased member whose benefit terminated
11 because of remarriage shall have the benefit reinstated as of
12 July 1, 1994, at an amount that would have been payable had
13 such benefit not been terminated. This paragraph shall apply
14 to all municipalities which receive state excise tax moneys as
15 provided in s. 175.101.
16 Section 20. Section 175.191, Florida Statutes, is
17 amended to read:
18 175.191 Disability retirement.--For any municipality,
19 special fire control district, chapter plan, local law
20 municipality, local law special fire control district, or
21 local law plan under this chapter:
22 (1) A firefighter having 10 or more continuous years
23 of credited service or a firefighter who becomes totally and
24 permanently disabled in the line of duty, regardless of length
25 of service, and having contributed to the firefighters'
26 pension trust fund for 10 years or more may retire from the
27 service of the municipality or special fire control district
28 under the plan if, prior to his or her normal retirement date,
29 the firefighter becomes totally and permanently disabled as
30 defined in subsection (2) by reason of any cause other than a
31 cause set out in subsection (3) on or after the effective date
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1 of the plan. Such retirement shall herein be referred to as
2 "disability retirement." The provisions for disability other
3 than line-of-duty disability shall not apply to a member who
4 has reached early or normal retirement age.
5 (2) A firefighter will be considered totally disabled
6 if, in the opinion of the board of trustees, he or she is
7 wholly prevented from rendering useful and efficient service
8 as a firefighter; and a firefighter will be considered
9 permanently disabled if, in the opinion of the board of
10 trustees, he or she is likely to remain so disabled
11 continuously and permanently from a cause other than is
12 specified in subsection (3).
13 (3) A firefighter will not be entitled to receive any
14 disability retirement income if the disability is a result of:
15 (a) Excessive and habitual use by the firefighter of
16 drugs, intoxicants, or narcotics;
17 (b) Injury or disease sustained by the firefighter
18 while willfully and illegally participating in fights, riots,
19 or civil insurrections or while committing a crime;
20 (c) Injury or disease sustained by the firefighter
21 while serving in any armed forces; or
22 (d) Injury or disease sustained by the firefighter
23 after his or her employment has terminated.
24 (4) No firefighter shall be permitted to retire under
25 the provisions of this section until he or she is examined by
26 a duly qualified physician or surgeon, to be selected by the
27 board of trustees for that purpose, and is found to be
28 disabled in the degree and in the manner specified in this
29 section. Any firefighter retiring under this section may
30 shall be examined periodically by a duly qualified physician
31 or surgeon or board of physicians and surgeons, to be selected
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1 by the board of trustees for that purpose, to determine if
2 such disability has ceased to exist.
3 (5) The benefit benefits payable to a firefighter who
4 retires from the service of a municipality or special fire
5 control district due to total and permanent disability as a
6 direct result of a disability commencing prior to his or her
7 normal retirement date is the monthly income payable for 10
8 years certain and life for which, if the firefighter's
9 disability occurred in the line of duty, his or her monthly
10 benefit shall be the accrued retirement benefit, but shall not
11 be less than 42 percent of his or her average monthly salary
12 at the time of disability. If after 10 years of service the
13 disability is other than in the line of duty, the
14 firefighter's monthly benefit shall be the accrued normal
15 retirement benefit, but shall not be less than 25 percent of
16 his or her average monthly salary at the time of disability.
17 (6) The monthly retirement income to which a
18 firefighter is entitled in the event of his or her disability
19 retirement shall be payable on the first day of the first
20 month after the board of trustees determines such entitlement.
21 However, the monthly retirement income shall be payable as of
22 the date the board determines such entitlement, and any
23 portion due for a partial month shall be paid together with
24 the first payment. The last payment will be, if the
25 firefighter recovers from the disability prior to his or her
26 normal retirement date, the payment due next preceding the
27 date of such recovery or, if the firefighter dies without
28 recovering from the disability, the payment due next preceding
29 his or her death or the 120th monthly payment, whichever is
30 later. In lieu of the benefit payment as provided in this
31 paragraph, a firefighter may select an optional form as
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1 provided in s. 175.171. Any monthly retirement income payments
2 due after the death of a disabled firefighter shall be paid to
3 the firefighter's designated beneficiary (or beneficiaries) as
4 provided in ss. 175.181 and 175.201.
5 (7) If the board of trustees finds that a firefighter
6 who is receiving a disability retirement income is, at any
7 time prior to his or her normal retirement date, no longer
8 disabled, as provided herein, the board of trustees shall
9 direct that the disability retirement income be discontinued.
10 "Recovery from disability" as used herein means the ability of
11 the firefighter to render useful and efficient service as a
12 firefighter.
13 (8) If the firefighter recovers from disability and
14 reenters the service as a firefighter, service will be deemed
15 to have been continuous, but the period beginning with the
16 first month for which he or she received a disability
17 retirement income payment and ending with the date he or she
18 reentered the service may will not be considered as credited
19 service for the purpose of this plan.
20 Section 21. Section 175.195, Florida Statutes, is
21 created to read:
22 175.195 False, misleading, or fraudulent statements
23 made to obtain public retirement benefits prohibited;
24 penalty.--
25 (1) It is unlawful for a person to willfully and
26 knowingly make, or cause to be made, or to assist, conspire
27 with, or urge another to make, or cause to be made, any false,
28 fraudulent, or misleading oral or written statement to obtain
29 any benefit available under a retirement plan receiving
30 funding under this chapter.
31
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1 (2)(a) A person who violates subsection (1) commits a
2 misdemeanor of the first degree, punishable as provided in s.
3 775.082 or s. 775.083.
4 (b) In addition to any applicable criminal penalty,
5 upon conviction for a violation described in subsection (1), a
6 participant or beneficiary of a pension plan receiving funding
7 under this chapter may, in the discretion of the board of
8 trustees, be required to forfeit the right to receive any or
9 all benefits to which the person would otherwise be entitled
10 under this chapter. For purposes of this paragraph,
11 "conviction" means a determination of guilt that is the result
12 of a plea or trial, regardless of whether adjudication is
13 withheld.
14 Section 22. Section 175.201, Florida Statutes, is
15 amended to read:
16 175.201 Death prior to retirement; refunds of
17 contributions; death benefits.--For any municipality, special
18 fire control district, chapter plan, local law municipality,
19 local law special fire control district, or local law plan
20 under this chapter:
21 (1) If a firefighter dies before being eligible to
22 retire under the provisions of this act, the heirs, legatees,
23 beneficiaries, or personal representatives of such deceased
24 firefighter shall be entitled to a refund of 100 percent,
25 without interest, of the contributions made to the
26 firefighters' pension trust fund by such deceased firefighter
27 or, in the event an annuity or life insurance contract has
28 been purchased by the board of trustees on such firefighter,
29 then to the death benefits available under such life insurance
30 or annuity contract subject to the limitations on such death
31 benefits set forth in s. 175.081, whichever amount is greater.
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1 (2) If a firefighter having at least 10 years of
2 credited service dies prior to retirement but has at least 10
3 years of contributing service, his or her beneficiary is
4 entitled to the benefits otherwise payable to the firefighter
5 at early or normal retirement age.
6
7 In the event that the death benefit paid by a life insurance
8 company exceeds the limit set forth in s. 175.081, the excess
9 of the death benefit over the limit shall be paid to the
10 firefighters' pension trust fund. However, death the benefits
11 as provided pursuant to in s. 112.191 or any other state or
12 federal law shall not be included in the calculation of as
13 death or retirement benefits provided under this the
14 provisions of chapter 86-41, Laws of Florida.
15 Section 23. Section 175.211, Florida Statutes, is
16 amended to read:
17 175.211 Separation from service; refunds.--For any
18 municipality, special fire control district, chapter plan,
19 local law municipality, local law special fire control
20 district, or local law plan under this chapter:
21 (1) If a firefighter leaves the service of the
22 municipality or special fire control district before
23 accumulating aggregate time of 10 years toward retirement and
24 before being eligible to retire under the provisions of this
25 chapter, the firefighter shall be entitled to a refund of all
26 of his or her contributions made to the firefighters' pension
27 trust fund after July 1, 1963, without interest, less any
28 disability benefits paid to him or her after July 1, 1963.
29 (2) If a firefighter who has been in the service of
30 the municipality or special fire control district for at least
31 10 years and has contributed to the firefighters' pension
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1 trust fund for at least 10 years elects to leave his or her
2 accrued contributions, if contributions are required, in the
3 firefighters' pension trust fund, such firefighter upon
4 attaining the age of 50 years may retire at the actuarial
5 equivalent of the amount of such retirement income otherwise
6 payable to him or her, as provided in s. 175.162(4), or upon
7 attaining age 55 years may retire as provided in s.
8 175.162(1).
9 Section 24. Section 175.221, Florida Statutes, is
10 amended to read:
11 175.221 Lump-sum payment of small retirement
12 income.--For any municipality, special fire control district,
13 chapter plan, local law municipality, local law special fire
14 control district, or local law plan under this chapter,
15 notwithstanding any provisions of the plan to the contrary, if
16 the monthly retirement income payable to any person entitled
17 to benefits hereunder is less than $100 $30, or if the
18 single-sum value of the accrued retirement income is less than
19 $5,000 $750, as of the date of retirement or termination of
20 service, whichever is applicable, the board of trustees, in
21 the exercise of its discretion, may specify that the actuarial
22 equivalent of such retirement income be paid in a lump sum.
23 Section 25. Section 175.231, Florida Statutes, is
24 amended to read:
25 175.231 Diseases of firefighters suffered in line of
26 duty; presumption.--For any municipality, special fire control
27 district, chapter plan, local law municipality, local law
28 special fire control district, or local law plan under this
29 chapter, any condition or impairment of health of a
30 firefighter caused by tuberculosis, hypertension, or heart
31 disease resulting in total or partial disability or death
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1 shall be presumed to have been accidental and suffered in the
2 line of duty unless the contrary is shown by competent
3 evidence, provided that, such firefighter shall have
4 successfully passed a physical examination before entering
5 into such service, which examination failed to reveal any
6 evidence of such condition. This section shall be applicable
7 to all firefighters employed in Florida only with reference to
8 pension and retirement benefits under this chapter.
9 Section 26. Section 175.241, Florida Statutes, is
10 amended to read:
11 175.241 Exemption from execution.--For any
12 municipality, special fire control district, chapter plan,
13 local law municipality, local law special fire control
14 district, or local law plan under this chapter, the pensions,
15 annuities, or other benefits accrued or accruing to any person
16 under any chapter plan or local law plan under the provisions
17 of this chapter act and the accumulated contributions and the
18 cash securities in the funds created under this chapter act
19 are hereby exempted from any state, county, or municipal tax
20 and shall not be subject to execution or attachment or to any
21 legal process whatsoever, and shall be unassignable.
22 Section 27. Section 175.251, Florida Statutes, is
23 repealed.
24 Section 28. Section 175.261, Florida Statutes, is
25 amended to read:
26 175.261 Annual report to Division of Retirement;
27 actuarial valuations reports.--For any municipality, special
28 fire control district, chapter plan, local law municipality,
29 local law special fire control district, or local law plan
30 under this chapter, the board of trustees for every chapter
31
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1 plan and local law plan shall submit the following reports to
2 the division:
3 (1) With respect to chapter plans:
4 (a) Each year, by February 1, the chair or secretary
5 of the board of trustees of each firefighters' pension trust
6 fund operating under a chapter plan shall file a report with
7 the division which contains:
8 1.(a) A statement of whether in fact the municipality
9 or special fire control district is within the provisions of
10 s. 175.041.
11 2.(b) An independent audit by a certified public
12 accountant if the fund has $250,000 $100,000 or more in
13 assets, or a certified statement of accounting if the fund has
14 less than $250,000 $100,000 or more in assets, for the most
15 recent plan fiscal year of the municipality or special fire
16 control district, showing a detailed listing of assets and
17 methods used to value them and a statement of all income and
18 disbursements during the year. Such income and disbursements
19 shall be reconciled with the assets at the beginning of and
20 end of the year.
21 3.(c) A statistical exhibit showing the total number
22 of firefighters on the force, the number included in the
23 retirement plan and the number ineligible, classified
24 according to the reason for their being ineligible, and the
25 number of disabled firefighters and retired firefighters and
26 their beneficiaries receiving pension payments and the amounts
27 of annual retirement income or pension payments being received
28 by them.
29 4.(d) A statement of the amount the municipality or
30 special fire control district, or other income source, has
31 contributed to the retirement fund for the most recent plan
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1 fiscal year and the amount the municipality or special fire
2 control district will contribute to the retirement fund during
3 its current plan fiscal year.
4 5.(e) If any benefits are insured with a commercial
5 insurance company, the report should include a statement of
6 the relationship of the insured benefits to the benefits
7 provided by this chapter as well as the name of the insurer
8 and information about the basis of premium rates, mortality
9 table, interest rates, and method used in valuing retirement
10 benefits.
11 (b)(2) In addition to annual reports provided under
12 paragraph (a), by February 1 of each triennial year, an
13 actuarial valuation of the chapter plan must be made by the
14 division at least once every 3 years, as provided in s.
15 112.63, commencing 3 years from the last actuarial valuation
16 of the plan or system for existing plans, or commencing 3
17 years from issuance of the initial actuarial impact statement
18 submitted under s. 112.63 for newly created plans. beginning
19 with February 1, 1986, and at least every 3 years commencing
20 from the last actuarial report of the plan or system or from
21 February 1, 1987, if no actuarial report has been issued
22 within the 3-year period prior to February 1, 1986, To that
23 end, the chair of the board of trustees for each firefighters'
24 pension trust fund operating under a chapter plan shall report
25 to the division such data as that it needs to complete an
26 actuarial valuation of each fund. The forms for each
27 municipality and special fire control district shall be
28 supplied by the division. The expense of this actuarial
29 valuation shall be borne by the firefighters' pension trust
30 fund established by ss. 175.041 and 175.121. The requirements
31
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1 of this section are supplemental to the actuarial valuations
2 necessary to comply with ss. 11.45 and 218.32.
3 (2) With respect to local law plans:
4 (a) Each year, on or before March 15, the trustees of
5 the retirement plan shall submit the following information to
6 the division in order for the retirement plan of such
7 municipality or special fire control district to receive a
8 share of the state funds for the then-current calendar year:
9 1. A certified copy of each and every instrument
10 constituting or evidencing the plan. This includes the formal
11 plan, including all amendments, the trust agreement, copies of
12 all insurance contracts, and formal announcement material.
13 2. An independent audit by a certified public
14 accountant if the fund has $250,000 or more in assets, or a
15 certified statement of accounting if the fund has less than
16 $250,000 in assets, for the most recent plan year, showing a
17 detailed listing of assets and a statement of all income and
18 disbursements during the year. Such income and disbursements
19 must be reconciled with the assets at the beginning and end of
20 the year.
21 3. A certified statement listing the investments of
22 the plan and a description of the methods used in valuing the
23 investments.
24 4. A statistical exhibit showing the total number of
25 firefighters, the number included in the plan, and the number
26 ineligible classified according to the reasons for their being
27 ineligible, and the number of disabled and retired
28 firefighters and their beneficiaries receiving pension
29 payments and the amounts of annual retirement income or
30 pension payments being received by them.
31
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1 5. A certified statement describing the methods,
2 factors, and actuarial assumptions used in determining the
3 cost.
4 6. A certified statement by an enrolled actuary
5 showing the results of the latest actuarial valuation of the
6 plan and a copy of the detailed worksheets showing the
7 computations used in arriving at the results.
8 7. A statement of the amount the municipality or
9 special fire control district, or other income source, has
10 contributed toward the plan for the most recent plan year and
11 will contribute toward the plan for the current plan year.
12
13 When any of the items required hereunder is identical to the
14 corresponding item submitted for a previous year, it is not
15 necessary for the trustees to submit duplicate information if
16 they make reference to the item in the previous year's report.
17 (b) In addition to annual reports provided under
18 paragraph (a), an actuarial valuation of the retirement plan
19 must be made at least once every 3 years, as provided in s.
20 112.63, commencing 3 years from the last actuarial valuation
21 of the plan or system for existing plans, or commencing 3
22 years from issuance of the initial actuarial impact statement
23 submitted under s. 112.63 for newly created plans. Such
24 valuation shall be prepared by an enrolled actuary, subject to
25 the following conditions:
26 1. The assets shall be valued as provided in s.
27 112.625(7).
28 2. The cost of the actuarial valuation must be paid by
29 the individual firefighters' retirement fund or by the
30 sponsoring municipality or special fire control district.
31
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1 3. A report of the valuation, including actuarial
2 assumptions and type and basis of funding, shall be made to
3 the division within 3 months after the date of valuation. If
4 any benefits are insured with a commercial insurance company,
5 the report must include a statement of the relationship of the
6 retirement plan benefits to the insured benefits, the name of
7 the insurer, the basis of premium rates, and the mortality
8 table, interest rate, and method used in valuing the
9 retirement benefits.
10 Section 29. Section 175.291, Florida Statutes, is
11 repealed.
12 Section 30. Section 175.301, Florida Statutes, is
13 amended to read:
14 175.301 Depository for pension funds.--For any
15 municipality, special fire control district, chapter plan,
16 local law municipality, local law special fire control
17 district, or local law plan under this chapter, all funds and
18 securities of the firefighters' pension trust fund of any
19 chapter plan or local law plan under this chapter may be
20 deposited by the board of trustees with the treasurer of the
21 municipality or special fire control district, acting in a
22 ministerial capacity only, who shall be liable in the same
23 manner and to the same extent as he or she is liable for the
24 safekeeping of funds for the municipality or special fire
25 control district. However, any funds and securities so
26 deposited with the treasurer of the municipality or special
27 fire control district shall be kept in a separate fund by the
28 treasurer or clearly identified as such funds and securities
29 of the firefighters' pension trust fund. In lieu thereof, the
30 board of trustees shall deposit the funds and securities of
31 the firefighters' pension trust fund in a qualified public
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1 depository as defined in s. 280.02, which depository with
2 regard to such funds and securities shall conform to and be
3 bound by all of the provisions of chapter 280.
4 Section 31. Section 175.311, Florida Statutes, is
5 amended to read:
6 175.311 Municipalities, special fire control
7 districts, and boards independent of each other.--In the
8 enforcement and in the interpretation of the provisions of
9 this chapter for any municipality, special fire control
10 district, chapter plan, local law municipality, local law
11 special fire control district, or local law plan under this
12 chapter, each municipality and each special fire control
13 district shall be independent of any other municipality or
14 special fire control district, and the board of trustees of
15 the firefighters' pension trust fund of each municipality and
16 each special fire control district shall function for the
17 municipality or special fire control district that which it
18 serves as trustee. Each board of trustees shall be
19 independent of the municipality or special fire control
20 district for which it serves as board of trustees to the
21 extent required to accomplish the intent, requirements, and
22 responsibilities provided for in this chapter.
23 Section 32. Section 175.321, Florida Statutes, is
24 repealed.
25 Section 33. Section 175.331, Florida Statutes, is
26 repealed.
27 Section 34. Section 175.333, Florida Statutes, is
28 amended to read:
29 175.333 Discrimination in benefit formula prohibited;
30 restrictions regarding designation of joint annuitants.--For
31 any municipality, special fire control district, chapter plan,
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1 local law municipality, local law special fire control
2 district, or local law plan under this chapter:
3 (1) No plan established under the provisions of this
4 chapter and participating in the distribution of premium tax
5 moneys as provided in this chapter shall discriminate in its
6 benefit formula based on color, national origin, sex, or
7 marital status.; however,
8 (2)(a) If a plan offers a joint annuitant option and
9 the member selects such option, or if a the plan specifies
10 that the member's spouse is to receive the benefits that which
11 continue to be payable upon the death of the member, then, in
12 both of these cases, after retirement the benefits have
13 commenced, a retired member may change his or her designation
14 of joint annuitant or beneficiary only twice.
15 (b) Any If said retired member who desires to change
16 his or her joint annuitant or beneficiary, the member shall
17 file with the board of trustees of his or her plan a notarized
18 notice of such change either by registered letter or on such a
19 form as is provided by the administrator of the plan. Upon
20 receipt of a completed change of joint annuitant form or such
21 other notice, the board of trustees shall adjust the member's
22 monthly benefit by the application of actuarial tables and
23 calculations developed to ensure that the benefit paid is the
24 actuarial equivalent of the present value of the member's
25 current benefit.
26
27 Nothing herein shall preclude a plan from actuarially
28 adjusting benefits or offering options based upon sex, age,
29 early retirement, or disability.
30 Section 35. Section 175.341, Florida Statutes, is
31 amended to read:
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1 175.341 Duties of Division of Retirement; rulemaking
2 authority; investments by the State Board of Administration.--
3 (1) The division shall be responsible for the daily
4 oversight and monitoring for actuarial soundness of the
5 firefighters' pension plans, whether chapter or local law
6 plans, established under this chapter, for receiving and
7 holding the premium tax moneys collected under this chapter,
8 and, upon determining compliance with the provisions of this
9 chapter, for disbursing those moneys to the firefighters'
10 pension plans. The funds necessary to pay expenses for such
11 administration shall be annually appropriated from the
12 interest and investment income earned on moneys deposited in
13 the trust fund.
14 (2) The division shall adopt rules necessary for the
15 administration of this chapter.
16 (3) The State Board of Administration shall invest and
17 reinvest the moneys in the trust fund collected under this
18 chapter in accordance with ss. 215.44-215.53. Costs incurred
19 by the board in carrying out the provisions of this subsection
20 shall be deducted from the interest and investment income
21 accruing to the trust fund.
22 Section 36. Section 175.351, Florida Statutes, is
23 amended to read:
24 (Substantial rewording of section. See
25 s. 175.351, F.S., for present text.)
26 175.351 Municipalities and special fire control
27 districts having their own pension plans for
28 firefighters.--For any municipality, special fire control
29 district, local law municipality, local law special fire
30 control district, or local law plan under this chapter, in
31 order for municipalities and special fire control districts
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1 with their own pension plans for firefighters, or for
2 firefighters and police officers, where included, to
3 participate in the distribution of the tax fund established
4 pursuant to s. 175.101, local law plans must meet the minimum
5 benefits and minimum standards set forth in this chapter.
6 (1) PREMIUM TAX INCOME.--If a municipality has a
7 pension plan for firefighters, or a pension plan for
8 firefighters and police officers, where included, which in the
9 opinion of the division meets the minimum benefits and minimum
10 standards set forth in this chapter, the board of trustees of
11 the pension plan, as approved by a majority of firefighters of
12 the municipality, may:
13 (a) Place the income from the premium tax in s.
14 175.101 in such pension plan for the sole and exclusive use of
15 its firefighters, or for firefighters and police officers,
16 where included, where it shall become an integral part of that
17 pension plan and shall be used to pay extra benefits to the
18 firefighters included in that pension plan; or
19 (b) Place the income from the premium tax in s.
20 175.101 in a separate supplemental pension plan to pay extra
21 benefits to firefighters, or to firefighters and police
22 officers where included, participating in such separate
23 supplemental pension plan.
24
25 Anything to the contrary notwithstanding, the premium tax
26 provided by this chapter shall in all cases be used in its
27 entirety to provide extra benefits to firefighters, or to
28 firefighters and police officers where included. For purposes
29 of this chapter, the term "extra benefits" means benefits in
30 addition to or greater than those provided to general
31 employees of the municipality.
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1 (2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
2 retirement plan or amendment to a retirement plan shall be
3 proposed for adoption unless the proposed plan or amendment
4 contains an actuarial estimate of the costs involved. No such
5 proposed plan or proposed plan change shall be adopted without
6 the approval of the municipality, special fire control
7 district, or, where permitted, the Legislature. Copies of the
8 proposed plan or proposed plan change and the actuarial impact
9 statement of the proposed plan or proposed plan change shall
10 be furnished to the division prior to the last public hearing
11 thereon. Such statement shall also indicate whether the
12 proposed plan or proposed plan change is in compliance with s.
13 14, Art. X of the State Constitution and those provisions of
14 part VII of chapter 112 which are not expressly provided in
15 this chapter.
16 (3) Notwithstanding any other provision, with respect
17 to any supplemental plan municipality:
18 (a) Section 175.032(3)(a) shall not apply, and a local
19 law plan and a supplemental plan may continue to use their
20 definition of compensation or salary in existence on the
21 effective date of this act.
22 (b) Section 175.061(1)(b) shall not apply, and a local
23 law plan and a supplemental plan shall continue to be
24 administered by a board or boards of trustees numbered,
25 constituted, and selected as the board or boards were
26 numbered, constituted, and selected on January 1, 1997.
27 (c) Paragraphs (1)(a) and (b) shall not apply.
28 (4) The retirement plan setting forth the benefits and
29 the trust agreement, if any, covering the duties and
30 responsibilities of the trustees and the regulations of the
31 investment of funds must be in writing, and copies thereof
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1 must be made available to the participants and to the general
2 public.
3 Section 37. Section 175.361, Florida Statutes, is
4 amended to read:
5 175.361 Termination of plan and distribution of
6 fund.--For any municipality, special fire control district,
7 chapter plan, local law municipality, local law special fire
8 control district, or local law plan under this chapter, the
9 plan may be terminated by the municipality or special fire
10 control district. Upon termination of the plan by the
11 municipality or special fire control district for any reason
12 or because of a transfer, merger, or consolidation of
13 governmental units, services, or functions as provided in
14 chapter 121, or upon written notice by the municipality or
15 special fire control district to the board of trustees that
16 contributions under the plan are being permanently
17 discontinued, the rights of all employees to benefits accrued
18 to the date of such termination and the amounts credited to
19 the employees' accounts are nonforfeitable. The fund shall be
20 apportioned and distributed in accordance with the following
21 procedures:
22 (1) The board of trustees shall determine the date of
23 distribution and the asset value to be distributed, after
24 taking into account the expenses of such distribution.
25 (2) The board of trustees shall determine the method
26 of distribution of the asset value, that is, whether
27 distribution shall be by payment in cash, by the maintenance
28 of another or substituted trust fund, by the purchase of
29 insured annuities, or otherwise, for each firefighter entitled
30 to benefits under the plan as specified in subsection (3).
31
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1 (3) The board of trustees shall apportion the asset
2 value as of the date of termination in the manner set forth in
3 this subsection, on the basis that the amount required to
4 provide any given retirement income shall mean the actuarially
5 computed single-sum value of such retirement income, except
6 that if the method of distribution determined under subsection
7 (2) involves the purchase of an insured annuity, the amount
8 required to provide the given retirement income shall mean the
9 single premium payable for such annuity.
10 (a) Apportionment shall first be made in respect of
11 each retired firefighter receiving a retirement income
12 hereunder on such date, each person receiving a retirement
13 income on such date on account of a retired (but since
14 deceased) firefighter, and each firefighter who has, by such
15 date, become eligible for normal retirement but has not yet
16 retired, in the amount required to provide such retirement
17 income, provided that, if such asset value is less than the
18 aggregate of such amounts, such amounts shall be
19 proportionately reduced so that the aggregate of such reduced
20 amounts will be equal to such asset value.
21 (b) If there is any asset value remaining after the
22 apportionment under paragraph (a), apportionment shall next be
23 made in respect of each firefighter in the service of the
24 municipality or special fire control district on such date who
25 has completed at least 10 years of credited service, in who
26 has contributed to the firefighters' pension trust fund for at
27 least 10 years, and who is not entitled to an apportionment
28 under paragraph (a), in the amount required to provide the
29 actuarial equivalent of the accrued normal retirement income,
30 based on the firefighter's credited service and earnings to
31 such date, and each former participant then entitled to a
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1 benefit under the provisions of s. 175.211 who has not by such
2 date reached his or her normal retirement date, in the amount
3 required to provide the actuarial equivalent of the accrued
4 normal retirement income to which he or she is entitled under
5 s. 175.211; provided that, if such remaining asset value is
6 less than the aggregate of the amounts apportioned hereunder,
7 such latter amounts shall be proportionately reduced so that
8 the aggregate of such reduced amounts will be equal to such
9 remaining asset value.
10 (c) If there is any asset value after the
11 apportionments under paragraphs (a) and (b), apportionment
12 shall lastly be made in respect of each firefighter in the
13 service of the municipality or special fire control district
14 on such date who is not entitled to an apportionment under
15 paragraphs (a) and (b) in the amount equal to the
16 firefighter's total contributions to the plan to date of
17 termination; provided that, if such remaining asset value is
18 less than the aggregate of the amounts apportioned hereunder,
19 such latter amounts shall be proportionately reduced so that
20 the aggregate of such reduced amounts will be equal to such
21 remaining asset value.
22 (d) In the event that there is asset value remaining
23 after the full apportionment specified in paragraphs (a), (b),
24 and (c), such excess shall be returned to the municipality or
25 special fire control district, less return to the state of the
26 state's contributions, provided that, if the excess is less
27 than the total contributions made by the municipality or
28 special fire control district and the state to date of
29 termination of the plan, such excess shall be divided
30 proportionately to the total contributions made by the
31 municipality or special fire control district and the state.
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1 (4) The board of trustees shall distribute, in
2 accordance with the manner of distribution determined under
3 subsection (2), the amounts apportioned under subsection (3).
4
5 If, after a period of 24 months after the date on which the
6 plan terminated or the date on which the board received
7 written notice that the contributions thereunder were being
8 permanently discontinued, the municipality or special fire
9 control district or the board of trustees of the firefighters'
10 pension trust fund affected has not complied with all the
11 provisions in this section, the division shall effect the
12 termination of the fund in accordance with this section.
13 Section 38. Section 175.371, Florida Statutes, is
14 amended to read:
15 175.371 Transfer to another state retirement system;
16 benefits payable.--For any municipality, special fire control
17 district, chapter plan, local law municipality, local law
18 special fire control district, or local law plan under this
19 chapter:
20 (1) Any firefighter who has a vested right to benefits
21 under a pension plan created pursuant to the provisions of
22 this chapter and who elects to participate in another state
23 retirement system may not receive a benefit under the
24 provisions of the latter retirement system for any year's
25 service for which benefits are paid under the provisions of
26 the pension plan created pursuant to this chapter.
27 (2) When every active participant in any pension plan
28 created pursuant to this chapter elects to transfer to another
29 state retirement system, the pension plan created pursuant to
30 this chapter shall be terminated and the assets distributed in
31 accordance with s. 175.361. If some participants in a pension
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1 plan created pursuant to this chapter elect to transfer to
2 another state retirement system and other participants elect
3 to remain in the existing plan created pursuant to this
4 chapter, the plan created pursuant to this chapter shall
5 remain in effect until fully funded and shall then be
6 terminated in accordance with s. 175.361.
7 Section 39. Section 175.381, Florida Statutes, is
8 amended to read:
9 (Substantial rewording of section. See
10 s. 175.381, F.S., for present text.)
11 175.381 Applicability.--This act shall apply to all
12 municipalities, special fire control districts, chapter plans,
13 local law municipalities, local law special fire control
14 districts, or local law plans presently existing or to be
15 created pursuant to this chapter. Those plans presently
16 existing pursuant to s. 175.351 and not in compliance with the
17 provisions of this act must comply no later than December 31,
18 1998. However, the plan sponsor of any plan established by
19 special act of the Legislature shall have until July 1, 1999,
20 to comply with the provisions of this act, except as otherwise
21 provided in this act with regard to establishment and election
22 of board members. The provisions of this act shall be
23 construed to establish minimum standards and minimum benefit
24 levels, and nothing contained in this act or in chapter 175
25 shall operate to reduce presently existing rights or benefits
26 of any firefighter, directly, indirectly, or otherwise.
27 Section 40. Section 175.391, Florida Statutes, is
28 repealed.
29 Section 41. Section 175.401, Florida Statutes, is
30 amended to read:
31
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1 175.401 Retiree health insurance subsidy.--For any
2 municipality, special fire control district, chapter plan,
3 local law municipality, local law special fire control
4 district, or local law plan under this chapter, under the
5 broad grant of home rule powers under the Florida Constitution
6 and chapter 166, municipalities have the authority to
7 establish and administer locally funded health insurance
8 subsidy programs. In addition, special fire control districts
9 may, by resolution, establish and administer locally funded
10 health insurance subsidy programs. Pursuant thereto:
11 (1) PURPOSE.--The purpose of this section is to allow
12 municipalities and special fire control districts the option
13 to use premium tax moneys, as provided for under this chapter,
14 to establish and administer health insurance subsidy programs
15 which will provide a monthly subsidy payment to retired
16 members of any firefighters' pension trust fund system or plan
17 as provided under this chapter, or to beneficiaries who are
18 spouses or financial dependents entitled to receive benefits
19 under such a plan, in order to assist such retired members or
20 beneficiaries in paying the costs of health insurance.
21 (2) RETIREE HEALTH INSURANCE SUBSIDY TRUST FUNDS;
22 ESTABLISHMENT AND TERMINATION.--
23 (a) Any municipality or special fire control district
24 having a firefighters' pension trust fund system or plan as
25 provided under this chapter may, in its discretion, establish
26 by ordinance or resolution, as appropriate, a trust fund to be
27 known as the firefighters' retiree health insurance subsidy
28 trust fund. This fund may be a separate account established
29 for such purpose in the existing firefighters' pension fund,
30 provided that all funds deposited in such account are
31 segregated from, and not commingled with, pension funds or
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1 other public moneys and that the account otherwise conforms to
2 the requirements of subsection (8). The trust fund shall be
3 used to account for all moneys received and disbursed pursuant
4 to this section.
5 (b) Prior to the second reading of the ordinance
6 before the municipal legislative body, or of the resolution
7 before the governing body of the special fire control
8 district, an actuarial valuation must be performed by an
9 enrolled actuary as provided in s. 112.63, and copies of the
10 valuation and the proposed implementing ordinance or
11 resolution shall be furnished to the division.
12 (c) The subsidy program may, at the discretion of the
13 municipal governing body, be permanently discontinued by
14 municipal ordinance, and at the discretion of the governing
15 body of a special fire control district may be permanently
16 discontinued by resolution, at any time, subject to the
17 requirements of any applicable collective bargaining
18 agreement, in the same manner and subject to the same
19 conditions established for plan termination and fund
20 distribution under s. 175.361.
21 (3) FUNDING.--Trust funds established pursuant to this
22 section shall be funded in the following manner:
23 (a) By payment to the fund of an amount equivalent to
24 one-half of the net increase over the previous tax year in the
25 premium tax funds provided for in this chapter, said amount to
26 be established in the implementing ordinance or resolution.
27 (b) By no less than one-half of 1 percent of the base
28 salary of each firefighter, for so long as the firefighter is
29 employed and covered by a pension plan established pursuant to
30 this chapter. The municipality or special fire control
31 district, with approval of the board of trustees, may increase
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1 member contributions if needed to fund benefits greater than
2 the minimums established in this section.
3 (c) By payment by the municipality or special fire
4 control district, on at least a quarterly basis, of whatever
5 sum is determined necessary to maintain the actuarial
6 soundness of the fund in accordance with s. 112.64.
7
8 Such contributions and payments shall be submitted to the
9 board of trustees of the firefighters' pension trust fund, or
10 the plan trustees in the case of local law plans established
11 under s. 175.351, and deposited in the firefighters' retiree
12 health insurance subsidy trust fund, in the same manner and
13 subject to the same time constraints as provided under s.
14 175.131.
15 (4) ELIGIBILITY FOR RETIREE HEALTH INSURANCE
16 SUBSIDY.--A person who has contributed to the retiree health
17 insurance subsidy trust fund and retires under a firefighters'
18 pension trust fund system or plan as provided under this
19 chapter, including any local law plan as provided under s.
20 175.351, or a beneficiary who is a spouse or financial
21 dependent entitled to receive benefits under such a plan, is
22 eligible for health insurance subsidy payments provided under
23 this section. However, the fund, with approval of the board
24 of trustees and approval of the municipality or special fire
25 control district, may provide coverage to retirees and
26 beneficiaries when the retirees have not contributed to the
27 fund as provided in subsection (3). Payment of the retiree
28 health insurance subsidy shall be made only after coverage for
29 health insurance for the retiree or beneficiary has been
30 certified in writing to the board of trustees of the
31 firefighters' pension trust fund.
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1 (5) RETIREE HEALTH INSURANCE SUBSIDY
2 AMOUNT.--Beginning on the effective date established in the
3 implementing ordinance or resolution, each eligible retiree,
4 or beneficiary who is a spouse or financial dependent thereof,
5 shall receive a monthly retiree health insurance subsidy
6 payment equal to the aggregate number of years of service, as
7 defined in s. 175.032, completed at the time of retirement
8 multiplied by an amount determined in the implementing
9 ordinance or resolution, but no less than $3 for each year of
10 service. Nothing herein shall be construed to restrict the
11 plan sponsor from establishing, in the implementing ordinance
12 or resolution, a cap of no less than 30 years upon the number
13 of years' service for which credit will be given toward a
14 health insurance subsidy or a maximum monthly subsidy amount.
15 (6) PAYMENT OF RETIREE HEALTH INSURANCE
16 SUBSIDY.--Beginning on the effective date established in the
17 implementing ordinance or resolution, any monthly retiree
18 health insurance subsidy amount due and payable under this
19 section shall be paid to retired members, or their eligible
20 beneficiaries, by the board of trustees of the firefighters'
21 pension trust fund, or the plan trustees in the case of local
22 law plans established under s. 175.351, in the same manner as
23 provided by s. 175.071(1)(c) for drafts upon the pension fund.
24 (7) INVESTMENT OF THE TRUST FUND.--The trustees of the
25 firefighters' pension trust fund, or the plan trustees in the
26 case of local law plans established under s. 175.351, are
27 hereby authorized to invest and reinvest the funds of the
28 firefighters' retiree health insurance subsidy trust fund in
29 the same manner and subject to the same conditions as apply
30 hereunder to the investment of firefighters' pension funds
31 under s. 175.071.
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1 (8) DEPOSIT OF HEALTH INSURANCE SUBSIDY FUNDS.--All
2 funds and securities of the health insurance subsidy fund may
3 be deposited by the board of trustees with the treasurer of
4 the municipality or special fire control district, acting in a
5 ministerial capacity only, who shall be liable in the same
6 manner and to the same extent as he or she is liable for the
7 safekeeping of funds for the municipality or special fire
8 control district. Any funds so deposited shall be segregated
9 by the treasurer in a separate fund, clearly identified as
10 funds and securities of the health insurance subsidy fund. In
11 lieu thereof, the board of trustees shall deposit the funds
12 and securities of the health insurance subsidy fund in a
13 qualified public depository as defined in s. 280.02, which
14 shall conform to and be bound by the provisions of chapter 280
15 with regard to such funds. In no case shall the funds of the
16 health insurance subsidy fund be deposited in any financial
17 institution, brokerage house trust company, or other entity
18 that is not a public depository as provided by s. 280.02.
19 (9) SEPARATION FROM SERVICE; REFUNDS.--Any firefighter
20 who terminates employment with a municipality or special fire
21 control district having a retiree health insurance subsidy
22 trust fund system or plan as provided under this section shall
23 be entitled to a refund of all employee contributions he or
24 she made to that trust fund, without interest, regardless of
25 whether the firefighter has vested for purposes of retirement.
26 Any firefighter who has vested for purposes of retirement in
27 the service of the municipality or special fire control
28 district, and has contributed to the firefighters' retiree
29 health insurance subsidy trust fund for so long as he or she
30 was eligible to make such contributions, may, in his or her
31 discretion, elect to leave his or her accrued contributions in
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1 the fund, whereupon, such firefighter shall, upon retiring and
2 commencing to draw retirement benefits, receive a health
3 insurance subsidy based upon his or her aggregate number of
4 years of service, as defined in s. 175.032.
5 (10) ADMINISTRATION OF SYSTEM; ACTUARIAL VALUATIONS;
6 AUDITS; RULES; ADMINISTRATIVE COSTS.--The board of trustees of
7 the firefighters' pension trust fund, or the plan trustees in
8 the case of local law plans established under s. 175.351,
9 shall be solely responsible for administering the health
10 insurance subsidy trust fund. Pursuant thereto:
11 (a) As part of its administrative duties, no less
12 frequently than every 3 years, the board shall have an
13 actuarial valuation of the firefighters' retiree health
14 insurance subsidy trust fund prepared as provided in s. 112.63
15 by an enrolled actuary, covering the same reporting period or
16 plan year used for the firefighters' pension plan, and shall
17 submit a report of the valuation, including actuarial
18 assumptions and type and basis of funding, to the division.
19 (b) By February 1 of each year, the trustees shall
20 file a report with the division, containing an independent
21 audit by a certified public accountant if the fund has
22 $250,000 $100,000 or more in assets, or a certified statement
23 of accounting if the fund has less than $250,000 $100,000 in
24 assets, for the most recent plan fiscal year of the
25 municipality or special fire control district, showing a
26 detailed listing of assets and methods used to value them and
27 a statement of all income and disbursements during the year.
28 Such income and disbursements shall be reconciled with the
29 assets at the beginning of and end of the year.
30
31
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1 (c) The trustees may adopt such rules and regulations
2 as are necessary for the effective and efficient
3 administration of this section.
4 (d) At the discretion of the plan sponsor, the cost of
5 administration may be appropriated from the trust fund or paid
6 directly by the plan sponsor.
7 (11) BENEFITS.--Subsidy payments shall be payable
8 under the firefighters' retiree health insurance subsidy
9 program only to participants in the program or their
10 beneficiaries. Such subsidy payments shall not be subject to
11 assignment, execution, or attachment or to any legal process
12 whatsoever, and shall be in addition to any other benefits to
13 which eligible recipients are entitled under any workers'
14 compensation law, pension law, collective bargaining
15 agreement, municipal or county ordinance, or any other state
16 or federal statute.
17 (12) DISTRIBUTION OF PREMIUM TAXES; COMPLIANCE
18 REQUIRED.--Premium tax dollars for which spending authority is
19 granted under this section shall be distributed from the
20 Police and Firefighters' Premium Tax Trust Fund and remitted
21 annually to municipalities and special fire control districts
22 in the same manner as provided under this chapter for
23 firefighters' pension funds. Once a health insurance subsidy
24 plan has been implemented by a municipality or special fire
25 control district under this section, in order for the
26 municipality or special fire control district to participate
27 in the distribution of premium tax dollars authorized under
28 this section, all provisions of this section, including state
29 acceptance pursuant to part VII of chapter 112, shall be
30 complied with, and said premium tax dollars may be withheld
31 for noncompliance.
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1 Section 42. Section 185.01, Florida Statutes, is
2 amended to read:
3 185.01 Legislative declaration.--
4 (1) It is hereby found and declared by the Legislature
5 that police officers as hereinafter defined perform both state
6 and municipal functions; that they make arrests for violations
7 of state traffic laws on public highways; that they keep the
8 public peace; that they conserve both life and property; and
9 that their activities are vital to public welfare of this
10 state. Therefore the Legislature declares that it is a proper
11 and legitimate state purpose to provide a uniform retirement
12 system for the benefit of police officers as hereinafter
13 defined and intends, in implementing the provisions of s. 14,
14 Art. X of the State Constitution as they relate to municipal
15 police officers' retirement trust fund systems and plans, that
16 such retirement systems or plans be managed, administered,
17 operated, and funded in such manner as to maximize the
18 protection of police officers' retirement trust funds.
19 Therefore, the Legislature hereby determines and declares that
20 the provisions of this act fulfill an important state
21 interest.
22 (2) This chapter hereby establishes, for all municipal
23 pension plans now or hereinafter provided for under this
24 chapter, including chapter plans and local law plans, minimum
25 benefits and minimum standards for the operation and funding
26 of such municipal police officers' retirement trust fund
27 systems and plans, hereinafter referred to as municipal police
28 officers' retirement trust funds. The minimum benefits and
29 minimum standards set forth in this chapter may not be
30 diminished by local ordinance or by special act of the
31 Legislature, nor may the minimum benefits or minimum standards
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1 be reduced or offset by any other local, state, or federal
2 plan that may include police officers in its operation, except
3 as provided under s. 112.65.
4 Section 43. Section 185.02, Florida Statutes, is
5 amended to read:
6 (Substantial rewording of section. See
7 s. 185.02, F.S., for present text.)
8 185.02 Definitions.--For any municipality, chapter
9 plan, local law municipality, or local law plan under this
10 chapter, the following words and phrases as used in this
11 chapter shall have the following meanings, unless a different
12 meaning is plainly required by the context:
13 (1) "Average final compensation" means one-twelfth of
14 the average annual compensation of the 5 best years of the
15 last 10 years of creditable service prior to retirement,
16 termination, or death.
17 (2) "Casualty insurance" means automobile public
18 liability and property damage insurance to be applied at the
19 place of residence of the owner, or if the subject is a
20 commercial vehicle, to be applied at the place of business of
21 the owner; automobile collision insurance; fidelity bonds;
22 burglary and theft insurance; and plate glass insurance.
23 "Multiple peril" means a combination or package policy that
24 includes both property coverage and casualty coverage for a
25 single premium.
26 (3) "Chapter plan" means a separate defined benefit
27 pension plan for police officers which incorporates by
28 reference the provisions of this chapter and has been adopted
29 by the governing body of a municipality as provided in s.
30 185.08. Except as may be specifically authorized in this
31 chapter, provisions of a chapter plan may not differ from the
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1 plan provisions set forth in ss. 185.01-185.341 and
2 185.36-185.42. Actuarial valuations of chapter plans shall be
3 conducted by the division as provided by s. 185.221(1)(b).
4 (4) "Compensation" or "salary" means the total cash
5 remuneration paid to a police officer for services rendered,
6 except as otherwise provided in paragraph (a). Pursuant
7 thereto:
8 (a) A retirement trust fund or plan may use a
9 definition of salary other than the definition in this
10 subsection but only if the monthly retirement income payable
11 to each police officer covered by the retirement trust fund or
12 plan, as determined under s. 185.16(2) and using such other
13 definition, equals or exceeds the monthly retirement income
14 that would be payable to each police officer if his monthly
15 retirement income were determined under s. 185.16(2) and using
16 the definition in this subsection.
17 (b) Any retirement trust fund or plan which now or
18 hereafter meets the requirements of this chapter shall not,
19 solely by virtue of this subsection, reduce or diminish the
20 monthly retirement income otherwise payable to each police
21 officer covered by the retirement trust fund or plan.
22 (c) The member's compensation or salary contributed as
23 employee-elective salary reductions or deferrals to any salary
24 reduction, deferred compensation, or tax-sheltered annuity
25 program authorized under the Internal Revenue Code shall be
26 deemed to be the compensation or salary the member would
27 receive if he or she were not participating in such program
28 and shall be treated as compensation for retirement purposes
29 under this chapter.
30 (d) For any person who first becomes a member in any
31 plan year beginning on or after January 1, 1996, compensation
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1 for any plan year shall not include any amounts in excess of
2 the Internal Revenue Code Section 401(a)(17) limitation [as
3 amended by the Omnibus Budget Reconciliation Act of 1993],
4 which limitation of $150,000 shall be adjusted as required by
5 federal law for qualified government plans and shall be
6 further adjusted for changes in the cost of living in the
7 manner provided by Internal Revenue Code Section
8 401(a)(17)(B). For any person who first became a member prior
9 to the first plan year beginning on or after January 1, 1996,
10 the limitation on compensation shall be not less than the
11 maximum compensation amount that was allowed to be taken into
12 account under the plan as in effect on July 1, 1993, which
13 limitation shall be adjusted for changes in the cost of living
14 since 1989 in the manner provided by Internal Revenue Code
15 Section 401(a)(17)(1991).
16 (5) "Creditable service" or "credited service" means
17 the aggregate number of years of service and fractional parts
18 of years of service of any police officer, omitting
19 intervening years and fractional parts of years when such
20 police officer may not have been employed by the municipality
21 subject to the following conditions:
22 (a) No police officer will receive credit for years or
23 fractional parts of years of service if he or she has
24 withdrawn his or her contributions to the fund for those years
25 or fractional parts of years of service, unless the police
26 officer repays into the fund the amount he or she has
27 withdrawn, plus interest as determined by the board. The
28 member shall have at least 90 days after his or her
29 reemployment to make repayment.
30 (b) A police officer may voluntarily leave his or her
31 contributions in the fund for a period of 5 years after
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1 leaving the employ of the police department, pending the
2 possibility of his or her being rehired by the same
3 department, without losing credit for the time he or she has
4 participated actively as a police officer. If he or she is
5 not reemployed as a police officer with the same department
6 within 5 years, his or her contributions shall be returned to
7 him or her without interest.
8 (c) Credited service under this chapter shall be
9 provided only for service as a police officer, as defined in
10 s. 185.02(7), or for military service and shall not include
11 credit for any other type of service. A municipality may, by
12 local ordinance, provide for the purchase of credit for
13 military service occurring prior to employment as well as
14 prior service as a police officer for some other employer as
15 long as the police officer is not already receiving a benefit
16 for such other prior service as a police officer.
17 (d) In determining the creditable service of any
18 police officer, credit for up to 5 years of the time spent in
19 the military service of the Armed Forces of the United States
20 shall be added to the years of actual service, if:
21 1. The police officer is in the active employ of the
22 municipality prior to such service and leaves a position,
23 other than a temporary position, for the purpose of voluntary
24 or involuntary service in the Armed Forces of the United
25 States.
26 2. The police officer is entitled to reemployment
27 under the provisions of the Uniformed Services Employment and
28 Reemployment Rights Act.
29 3. The police officer returns to his or her employment
30 as a police officer of the municipality within 1 year from the
31 date of his or her release from such active service.
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1 (6) "Deferred Retirement Option Plan" or "DROP" means
2 a local law plan retirement option in which a police officer
3 may elect to participate. A police officer may retire for all
4 purposes of the plan and defer receipt of retirement benefits
5 into a DROP account while continuing employment with his
6 employer. However, a police officer who enters the DROP and
7 who is otherwise eligible to participate shall not thereby be
8 precluded from participating, or continuing to participate, in
9 a supplemental plan in existence on, or created after, the
10 effective date of this act.
11 (7) "Division" means the Division of Retirement of the
12 Department of Management Services.
13 (8) "Enrolled actuary" means an actuary who is
14 enrolled under Subtitle C of Title III of the Employee
15 Retirement Income Security Act of 1974 and who is a member of
16 the Society of Actuaries or the American Academy of Actuaries.
17 (9) "Local law municipality" is any municipality in
18 which there exists a local law plan.
19 (10) "Local law plan" means a defined benefit pension
20 plan for police officers or for police officers and
21 firefighters, where included, as described in s. 185.35,
22 established by municipal ordinance or special act of the
23 Legislature, which enactment sets forth all plan provisions.
24 Local law plan provisions may vary from the provisions of this
25 chapter, provided that required minimum benefits and standards
26 are met. Any such variance shall provide a greater benefit
27 for police officers. Actuarial valuations of local law plans
28 shall be conducted by an enrolled actuary as provided in s.
29 185.221(2)(b).
30 (11) "Police officer" means any person who is elected,
31 appointed, or employed full time by any municipality, who is
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1 certified or required to be certified as a law enforcement
2 officer in compliance with s. 943.1395, who is vested with
3 authority to bear arms and make arrests, and whose primary
4 responsibility is the prevention and detection of crime or the
5 enforcement of the penal, criminal, traffic, or highway laws
6 of the state. This definition includes all certified
7 supervisory and command personnel whose duties include, in
8 whole or in part, the supervision, training, guidance, and
9 management responsibilities of full-time law enforcement
10 officers, part-time law enforcement officers, or auxiliary law
11 enforcement officers, but does not include part-time law
12 enforcement officers or auxiliary law enforcement officers as
13 the same are defined in s. 943.10(6) and (8), respectively.
14 For the purposes of this chapter only, "police officer" also
15 shall include a public safety officer who is responsible for
16 performing both police and fire services. Any plan may provide
17 that the police chief shall have an option to participate, or
18 not, in that plan.
19 (12) "Police Officers' Retirement Trust Fund" means a
20 trust fund, by whatever name known, as provided under s.
21 185.03 for the purpose of assisting municipalities in
22 establishing and maintaining a retirement plan for police
23 officers.
24 (13) "Retiree" or "retired police officer" means a
25 police officer who has entered retirement status. For the
26 purposes of a plan that includes a Deferred Retirement Option
27 Plan (DROP), a police officer who enters the DROP shall be
28 considered a retiree for all purposes of the plan. However, a
29 police officer who enters the DROP and who is otherwise
30 eligible to participate shall not thereby be precluded from
31 participating, or continuing to participate, in a supplemental
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1 plan in existence on, or created after, the effective date of
2 this act.
3 (14) "Retirement" means a police officer's separation
4 from city employment as a police officer with immediate
5 eligibility for receipt of benefits under the plan. For
6 purposes of a plan that includes a Deferred Retirement Option
7 Plan (DROP), "retirement" means the date a police officer
8 enters the DROP.
9 (15) "Supplemental plan" means a plan to which
10 deposits are made to provide extra benefits to police
11 officers, or police officers and firefighters where included,
12 under this chapter. Such a plan is an element of a local law
13 plan and exists in conjunction with a defined benefit plan
14 that meets the minimum benefits and minimum standards of this
15 chapter.
16 (16) "Supplemental plan municipality" means any local
17 law municipality in which there existed a supplemental plan,
18 of any type or nature, as of January 1, 1997.
19 Section 44. Section 185.03, Florida Statutes, is
20 amended to read:
21 185.03 Municipal police officers' retirement trust
22 funds; creation; applicability of provisions; participation by
23 public safety officers.--For any municipality, chapter plan,
24 local law municipality, or local law plan under this chapter:
25 (1) There shall be established may be hereby created a
26 special fund exclusively for the purpose of this chapter,
27 which in the case of chapter plans shall to be known as the
28 "Municipal Police Officers' Retirement Trust Fund,"
29 exclusively for the purposes provided in this chapter, in each
30 municipality of this state, heretofore or hereafter created,
31 which now has or which may hereafter have a regularly
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1 organized police department, and which now owns and uses or
2 which may hereafter own and use equipment and apparatus of a
3 value exceeding $500 in serviceable condition for the
4 prevention of crime and for the preservation of life and
5 property, and which does not presently have established by law
6 a similar fund.
7 (2) The provisions of this chapter act shall apply
8 only to municipalities organized and established pursuant to
9 the laws of the state, and said provisions shall not apply to
10 the unincorporated areas of any county or counties nor shall
11 the provisions hereof apply to any governmental entity whose
12 police officers employees are eligible to participate for
13 membership in the Florida Retirement System a state or state
14 and county retirement system.
15 (3) No municipality shall establish more than one
16 retirement plan for public safety officers which is supported
17 in whole or in part by the distribution of premium tax funds
18 as provided by this chapter or chapter 175, nor shall any
19 municipality establish a retirement plan for public safety
20 officers which receives premium tax funds from both this
21 chapter and chapter 175.
22 (4) The plan provisions, participation, and benefits
23 as set forth in this chapter must be provided on a
24 nondiscriminatory basis.
25 Section 45. Section 185.04, Florida Statutes, is
26 amended to read:
27 185.04 Actuarial deficits not state obligations.--For
28 any municipality, chapter plan, local law municipality, or
29 local law plan under this chapter, actuarial deficits, if any,
30 arising under this chapter are shall not be the obligation of
31 the state.
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1 Section 46. Section 185.05, Florida Statutes, is
2 amended to read:
3 185.05 Board of trustees; members, terms of office;
4 meetings; legal entity; costs; attorney's fees.--For any
5 municipality, chapter plan, local law municipality, or local
6 law plan under this chapter:
7 (1) In each municipality described in s. 185.03 there
8 is hereby created a board of trustees of the municipal police
9 officers' retirement trust fund, which shall be solely
10 responsible for administering the trust fund. Effective
11 October 1, 1986, and thereafter:,
12 (a) The membership of the board of trustees for
13 chapter plans shall consist of five members, two of whom,
14 unless otherwise prohibited by law, shall be legal residents
15 of the municipality, who shall be appointed by the legislative
16 body of the municipality, and two of whom shall be police
17 officers as defined in s. 185.02 who shall be elected by a
18 majority of the active police officers who are members of such
19 plan. With respect to any chapter plan or local law plan that,
20 on January 1, 1997, allowed retired police officers to vote in
21 such elections, retirees may continue to vote in such
22 elections. The fifth member shall be chosen by a majority of
23 the previous four members, and such person's name shall be
24 submitted to the legislative body of the municipality. Upon
25 receipt of the fifth person's name, the legislative body of
26 the municipality shall, as a ministerial duty, appoint such
27 person to the board of trustees as its fifth member. The
28 fifth member shall have the same rights as each of the other
29 four members appointed or elected as herein provided, shall
30 serve as trustee for a period of 2 years, and may succeed
31 himself or herself in office. Each resident member shall serve
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1 as trustee for a period of 2 years, unless sooner replaced by
2 the legislative body at whose pleasure the member shall serve,
3 and may succeed himself or herself as a trustee. However, the
4 terms of the mayor, or corresponding chief executive officer
5 of the municipality, and the chief of the police department as
6 members of the board of trustees as provided in chapter 28230,
7 Laws of Florida, 1953, as amended, together with any city
8 manager and member of the legislative body of the municipality
9 as members of the board of trustees shall terminate on
10 September 30, 1986. Each police officer member shall serve as
11 trustee for a period of 2 years, unless he or she sooner
12 leaves the employment of the municipality as a police officer,
13 whereupon the legislative body of the municipality shall
14 choose a successor in the same manner as an original
15 appointment. Each police officer may succeed himself or
16 herself in office. The board of trustees shall meet at least
17 quarterly each year. Each board of trustees shall be a legal
18 entity with, in addition to other powers and responsibilities
19 contained herein, the power to bring and defend lawsuits of
20 every kind, nature, and description.
21 (b) The membership of boards of trustees for local law
22 plans shall be as follows:
23 1. If a municipality has a pension plan for police
24 officers only, the provisions of paragraph (a) shall apply.
25 2. If a municipality has a pension plan for police
26 officers and firefighters, the provisions of paragraph (a)
27 shall apply, except that one member of the board shall be a
28 police officer as defined in s. 185.02 and one member shall be
29 a firefighter as defined in s. 175.032, respectively, elected
30 by a majority of the active firefighters and police officers
31 who are members of the plan.
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1 3. Any board of trustees operating a local law plan on
2 July 1, 1998, which is combined with a plan for general
3 employees shall hold an election of the police officers, or
4 police officers and firefighters if included, to determine
5 whether a plan is to be established for police officers only,
6 or for police officers and firefighters where included. Based
7 on the election results, a new board shall be established as
8 provided in subparagraph 1. or 2., as appropriate. The
9 municipality shall enact an ordinance to implement the new
10 board by October 1, 1998. The newly established board shall
11 take whatever action is necessary to determine the amount of
12 assets which is attributable to police officers, or police
13 officers and firefighters where included. Such assets shall
14 include all employer, employee, and state contributions made
15 by or on behalf of police officers, or police officers and
16 firefighters where included, and any investment income derived
17 from such contributions. All such moneys shall be transferred
18 into the newly established retirement plan, as directed by the
19 board.
20
21 With respect to any board of trustees operating a local law
22 plan on June 30, 1986, nothing in this paragraph shall permit
23 the reduction of the membership percentage of police officers
24 or police officers and firefighters.
25 (2) The trustees shall by majority vote elect from its
26 members a chair and a secretary. The secretary of the board
27 shall keep a complete minute book of the actions, proceedings,
28 or hearings of the board. The trustees shall not receive any
29 compensation as such, but may receive expenses and per diem as
30 provided by Florida law.
31
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1 (3) The board of trustees shall meet at least
2 quarterly each year.
3 (4) Each board of trustees shall be a legal entity
4 that shall have, in addition to other powers and
5 responsibilities contained herein, the power to bring and
6 defend lawsuits of every kind, nature, and description.
7 (5) In any judicial proceeding or administrative
8 proceeding under chapter 120 brought under or pursuant to the
9 provisions of this chapter, the prevailing party shall be
10 entitled to recover the costs thereof, together with
11 reasonable attorney's fees.
12 (6) The provisions of this section may not be altered
13 by a participating municipality operating a chapter or local
14 law plan under this chapter.
15 Section 47. Section 185.06, Florida Statutes, is
16 amended to read:
17 185.06 General powers and duties of board of
18 trustees.--For any municipality, chapter plan, local law
19 municipality, or local law plan under this chapter:
20 (1) The board of trustees may:
21 (a) Invest and reinvest the assets of the retirement
22 trust fund in annuity and life insurance contracts of life
23 insurance companies in amounts sufficient to provide, in whole
24 or in part, the benefits to which all of the participants in
25 the municipal police officers' retirement trust fund shall be
26 entitled under the provisions of this chapter, and pay the
27 initial and subsequent premiums thereon.
28 (b) Invest and reinvest the assets of the retirement
29 trust fund in:
30 1. Time or savings accounts of a national bank, a
31 state bank insured by the Bank Insurance Fund Federal Deposit
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1 Insurance Corporation, or a savings and loan association
2 insured by the Savings Association Insurance Fund which are
3 administered by the Federal Deposit Insurance Corporation
4 Federal Savings and Loan Insurance Corporation.
5 2. Obligations of the United States or obligations
6 guaranteed as to principal and interest by the United States.
7 3. Bonds issued by the State of Israel.
8 4. Bonds, stocks, or other evidences of indebtedness
9 issued or guaranteed by a corporation organized under the laws
10 of the United States, any state or organized territory of the
11 United States, or the District of Columbia, provided:
12 a. The corporation is listed on any one or more of the
13 recognized national stock exchanges and holds a rating in one
14 of the three highest classifications by a major rating
15 service; and
16 b. The board of trustees shall not invest more than 5
17 percent of its assets in the common stock or capital stock of
18 any one issuing company, nor shall the aggregate investment in
19 any one issuing company exceed 5 percent of the outstanding
20 capital stock of the company or the aggregate of its
21 investments under this subparagraph at market cost exceed 50
22 30 percent of the fund's assets. Investment experience
23 producing a market value percent exceeding the stated limit
24 does not arbitrarily mean assets are to be liquidated to
25 satisfy the limit.
26
27 This paragraph shall apply to all boards of trustees and
28 participants. However, in the event that a municipality has a
29 duly enacted pension plan pursuant to, and in compliance with,
30 s. 185.35 and the trustees thereof desire to vary the
31 investment procedures herein, the trustees of such plan shall
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1 request a variance of the investment procedures as outlined
2 herein only through a municipal ordinance or special act of
3 the Legislature; where a special act, or a municipality by
4 ordinance adopted prior to the effective date of this act
5 October 1, 1986, permits a greater than 50-percent 30-percent
6 equity investment, such municipality shall not be required to
7 comply with the aggregate equity investment provisions of this
8 paragraph. The board of trustees may invest up to 10 percent
9 of plan assets in foreign securities. Investments shall not be
10 made in any stocks, bonds, or other securities owned or
11 controlled by a government other than that of the United
12 States or of the several states.
13 (c) Issue drafts upon the municipal police officers'
14 retirement trust fund pursuant to this act and rules and
15 regulations prescribed by the board of trustees. All such
16 drafts shall be consecutively numbered, be signed by the chair
17 and secretary, and state upon their faces the purposes for
18 which the drafts are drawn. The city treasurer or other
19 depository shall retain such drafts when paid, as permanent
20 vouchers for disbursements made, and no money shall otherwise
21 be drawn from the fund.
22 (d) Finally decide all claims to relief under the
23 board's rules and regulations and pursuant to the provisions
24 of this act.
25 (e) Convert into cash any securities of the fund.
26 (f) Keep a complete record of all receipts and
27 disbursements and of the board's acts and proceedings.
28 (2) Any and all acts and decisions shall be
29 effectuated by vote of a majority of the at least three
30 members of the board; however, no trustee shall take part in
31 any action in connection with his or her own participation in
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1 the fund, and no unfair discrimination shall be shown to any
2 individual employee participating in the fund.
3 (3) The secretary of the board of trustees shall keep
4 a record of all persons receiving retirement payments under
5 the provisions of this chapter, in which shall be noted the
6 time when the pension is allowed and when the pension shall
7 cease to be paid. In this record, the secretary shall keep a
8 list of all police officers employed by the municipality. The
9 record shall show the name, address, and time of employment of
10 such police officer and when he or she ceases to be employed
11 by the municipality.
12 (4)(3) The sole and exclusive administration of, and
13 the responsibilities for, the proper operation of the
14 retirement trust fund and for making effective the provisions
15 of this chapter are vested in the board of trustees; however,
16 nothing herein shall empower a board of trustees to amend the
17 provisions of a retirement plan without the approval of the
18 municipality. The board of trustees shall keep in convenient
19 form such data as shall be necessary for an actuarial
20 valuation of the retirement trust fund and for checking the
21 actual experience of the fund.
22 (5)(a)(4) At least once every 3 years, the board of
23 trustees shall retain a professionally qualified an
24 independent consultant who shall professionally qualified to
25 evaluate the performance of any existing professional money
26 manager and managers. The independent consultant shall make
27 recommendations to the board of trustees regarding the
28 selection of money managers for the next investment term.
29 These recommendations shall be considered by the board of
30 trustees at its next regularly scheduled meeting. The date,
31 time, place, and subject of this meeting shall be advertised
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1 in the same manner as for any meeting of the board a newspaper
2 of general circulation in the municipality at least 10 days
3 prior to the date of the hearing.
4 (b) For the purpose of this subsection, a
5 "professionally qualified independent consultant" means a
6 consultant who, based on education and experience, is
7 professionally qualified to evaluate the performance of
8 professional money managers, and who, at a minimum:
9 1. Provides his or her services on a flat-fee basis.
10 2. Is not associated in any manner with the money
11 manager for the pension fund.
12 3. Makes calculations according to the American
13 Banking Institute method of calculating time-weighted rates of
14 return. All calculations must be made net of fees.
15 4. Has 3 or more years of experience working in the
16 public sector.
17 (6) To assist the board in meeting its
18 responsibilities under this chapter, the board, if it so
19 elects, may:
20 (a) Employ independent legal counsel at the pension
21 fund's expense.
22 (b) Employ an independent actuary, as defined in s.
23 185.02(7), at the pension fund's expense.
24 (c) Employ such independent professional, technical,
25 or other advisers as it deems necessary at the pension fund's
26 expense.
27
28 If the board chooses to use the city's or special district's
29 legal counsel or actuary, or chooses to use any of the city's
30 other professional, technical, or other advisers, it shall do
31 so only under terms and conditions acceptable to the board.
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1 Section 48. Section 185.061, Florida Statutes, is
2 amended to read:
3 185.061 Use of annuity or insurance policies.--When
4 the board of trustees of any municipality, chapter plan, local
5 law municipality, or local law plan purchases annuity or life
6 insurance contracts to provide all or part of the benefits
7 promised by this chapter, the following principles shall be
8 observed:
9 (1) Only those officers who have been members of the
10 retirement trust fund for 1 year or longer may be included in
11 the insured plan.
12 (2) Individual policies shall be purchased only when a
13 group insurance plan is not feasible.
14 (3) Each application and policy shall designate the
15 pension fund as owner of the policy.
16 (4) Policies shall be written on an annual premium
17 basis.
18 (5) The type of policy shall be one which for the
19 premium paid provides each individual with the maximum
20 retirement benefit at his or her earliest statutory normal
21 retirement age.
22 (6) Death benefit, if any, should not exceed:
23 (a) One hundred times the estimated normal monthly
24 retirement income, based on the assumption that the present
25 rate of compensation continues without change to normal
26 retirement date, or
27 (b) Twice the annual rate of compensation as of the
28 date of termination of service, or
29 (c) The single-sum value of the accrued deferred
30 retirement income (beginning at normal retirement date) at
31 date of termination of service, whichever is greatest.
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1 (7) An insurance plan may provide that the assignment
2 of insurance contract to separating officer shall be at least
3 equivalent to the return of the officer's contributions used
4 to purchase the contract. An assignment of contract
5 discharges the municipality from all further obligation to the
6 participant under the plan even though the cash value of such
7 contract may be less than the employee's contributions.
8 (8) Provisions shall be made, either by issuance of
9 separate policies, or otherwise, that the separating officer
10 does not receive cash values and other benefits under the
11 policies assigned to the officer which exceed the present
12 value of his or her vested interest under the retirement plan,
13 inclusive of the officer's contribution to the plan, the
14 contributions by the state shall not be exhausted faster
15 merely because the method of funding adopted was through
16 insurance companies.
17 (9) The police officer shall have the right at any
18 time to give the board of trustees written instructions
19 designating the primary and contingent beneficiaries to
20 receive death benefit or proceeds and the method of the
21 settlement of the death benefit or proceeds, or requesting a
22 change in the beneficiary, designation or method of settlement
23 previously made, subject to the terms of the policy or
24 policies on the officer's life. Upon receipt of such written
25 instructions, the board of trustees shall take the necessary
26 steps to effectuate the designation or change of beneficiary
27 or settlement option.
28 Section 49. Section 185.07, Florida Statutes, is
29 amended to read:
30
31
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1 185.07 Creation and maintenance of fund.--For any
2 municipality, chapter plan, local law municipality, or local
3 law plan under this chapter:
4 (1) The municipal police officers' retirement trust
5 fund in each municipality described in s. 185.03 shall be
6 created and maintained in the following manner:
7 (a) By the net proceeds of the .85-percent excise tax
8 which may be imposed by the respective cities and towns upon
9 certain casualty insurance companies on their gross receipts
10 of premiums from holders of policies, which policies cover
11 property within the corporate limits of such municipalities,
12 as is hereinafter expressly authorized.
13 (b) Except as reduced or increased contributions are
14 authorized by subsection (2), by the payment to the fund of 5
15 percent of the salary of each full-time police officer duly
16 appointed and enrolled as a member of such police department,
17 which 5 percent shall be deducted by the municipality from the
18 compensation due to the police officer and paid over to the
19 board of trustees of the retirement trust fund wherein such
20 police officer is employed, provided that no deductions shall
21 be made after an officer has passed his or her normal
22 retirement date. No police officer shall have any right to
23 the said money so paid into the said fund except as provided
24 in this chapter.
25 (c) By all fines and forfeitures imposed and collected
26 from any police officer because of the violation of any rule
27 adopted and regulation promulgated by the board of trustees.
28 (d) By payment by the municipality or other sources of
29 a sum equal to the normal cost and the amount required to fund
30 over a 40-year basis any actuarial deficiency shown by an a
31 quinquennial actuarial valuation as provided in part VII of
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1 chapter 112. The first such actuarial valuation shall be
2 conducted for the calendar year ending December 31, 1963.
3 (e) By all gifts, bequests and devises when donated to
4 for the fund.
5 (f) By all accretions to the fund by way of interest
6 or dividends on bank deposits or otherwise.
7 (g) By all other sources of income now or hereafter
8 authorized by law for the augmentation of such municipal
9 police officers' retirement trust fund.
10 (2) Member contribution rates may be adjusted as
11 follows:
12 (a) The employing municipality, by local ordinance,
13 may elect to make an employee's contributions. However, under
14 no circumstances may a municipality reduce the member
15 contribution to less than one-half of 1 percent of salary.
16 (b) Police officer member contributions may be
17 increased by consent of the members' collective bargaining
18 representative or, if none, by majority consent of police
19 officer members of the fund to provide greater benefits.
20
21 Nothing in this section shall be construed to require
22 adjustment of member contribution rates in effect on the date
23 this act becomes a law, including rates that exceed 5 percent
24 of salary, provided that such rates are at least one-half of 1
25 percent of salary.
26 Section 50. Section 185.08, Florida Statutes, is
27 amended to read:
28 185.08 State excise tax on casualty insurance premiums
29 authorized; procedure.--For any municipality, chapter plan,
30 local law municipality, or local law plan under this chapter:
31
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1 (1) Each incorporated municipality in this state
2 described and classified in s. 185.03, as well as each other
3 city or town of this state which on July 31, 1953, had a
4 lawfully established municipal police officers' retirement
5 trust fund or city fund, by whatever name known, providing
6 pension or relief benefits to police officers as provided
7 under this chapter by whatever name known, may assess and
8 impose on every insurance company, corporation, or other
9 insurer now engaged in or carrying on, or who shall hereafter
10 engage in or carry on, the business of casualty insurance as
11 shown by records of the Department of Insurance, an excise tax
12 in addition to any lawful license or excise tax now levied by
13 each of the said municipalities, respectively, amounting to
14 .85 percent of the gross amount of receipts of premiums from
15 policyholders on all premiums collected on casualty insurance
16 policies covering property within the corporate limits of such
17 municipalities, respectively. The tax shall apply to all
18 insurers, whether authorized or not, transacting business in
19 this state.
20 (2) In the case of multiple peril policies with a
21 single premium for both property and casualty coverages in
22 such policies, 30 percent of such premium shall be used as the
23 basis for the .85-percent tax above.
24 (3) The Said excise tax shall be payable annually
25 March 1 of each year after the passing of an ordinance
26 assessing and imposing the tax herein authorized.
27 Installments of taxes shall be paid according to the
28 provisions of s. 624.5092(2)(a), (b), and (c).
29 Section 51. Section 185.09, Florida Statutes, is
30 amended to read:
31
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1 185.09 Report of premiums paid; date tax payable.--For
2 any municipality, chapter plan, local law municipality, or
3 local law plan under this chapter, whenever any municipality
4 passes an ordinance establishing a chapter plan or local law
5 plan and assessing and imposing the tax authorized in s.
6 185.08, a certified copy of such ordinance shall be deposited
7 with the division; and thereafter every insurance company,
8 corporation, or other insurer carrying on the business of
9 casualty insuring, on or before the succeeding March 1 after
10 date of the passage of the ordinance, shall report fully in
11 writing to the division and the Department of Revenue a just
12 and true account of all premiums received by such insurer for
13 casualty insurance policies covering or insuring any property
14 located within the corporate limits of such municipality
15 during the period of time elapsing between the date of the
16 passage of the ordinance and the end of the calendar year
17 succeeding March 1. The aforesaid insurer shall annually
18 thereafter, on March 1, file with the division and the
19 Department of Revenue a similar report covering the preceding
20 year's premium receipts. Every such insurer shall, at the
21 time of making such report, pay to the Department of Revenue
22 the amount of the tax heretofore mentioned. Every insurer
23 engaged in carrying on a general casualty insurance business
24 in the state shall keep accurate books of account of all such
25 business done by it within the limits of such incorporated
26 municipality in such a manner as to be able to comply with the
27 provisions of this chapter. Based on the insurers' reports of
28 premium receipts, the division shall prepare a consolidated
29 premium report and shall furnish to any municipality
30 requesting the same a copy of the relevant section of that
31 report.
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1 Section 52. Section 185.10, Florida Statutes, is
2 amended to read:
3 185.10 Department of Revenue and Division of
4 Retirement to keep accounts of deposits; disbursements.--For
5 any municipality having a chapter plan or local law plan under
6 this chapter:
7 (1) The Department of Revenue shall keep a separate
8 account of all moneys collected for each municipality under
9 the provisions of this chapter. All moneys so collected must
10 be transferred to the Police and Firefighters' Premium Tax
11 Trust Fund and shall be separately accounted for by the
12 division. The moneys budgeted as necessary to pay the expenses
13 of the division for the daily oversight and monitoring of the
14 police officers' retirement plans under this chapter and for
15 the oversight and actuarial reviews conducted under part VII
16 of chapter 112 are annually appropriated from the interest and
17 investment income earned on the moneys collected for each
18 municipality or special fire control district and deposited in
19 the Police and Firefighters' Premium Tax Trust Fund. Interest
20 and investment income remaining thereafter in the trust fund
21 which is unexpended and otherwise unallocated by law shall
22 revert to the General Revenue Fund on June 30 of each year.
23 (2) The Comptroller shall, on or before July 1 June 1
24 of each year, and at such other times as authorized by the
25 division, draw his or her warrants on the full net amount of
26 money then on deposit pursuant to this chapter in the Police
27 and Firefighters' Premium Tax Trust Fund, specifying the
28 municipalities to which the moneys must be paid and the net
29 amount collected for and to be paid to each municipality,
30 respectively. The sum payable to each municipality is
31 appropriated annually out of the Police and Firefighters'
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1 Premium Tax Trust Fund. The warrants of the Comptroller shall
2 be payable to the respective municipalities entitled to
3 receive them and shall be remitted annually by the division to
4 the respective municipalities. In order for a municipality and
5 its retirement fund to participate in the distribution of
6 premium tax moneys under this chapter, all the provisions
7 shall be complied with annually, including state acceptance
8 pursuant to part VII of chapter 112.
9 Section 53. Section 185.11, Florida Statutes, is
10 amended to read:
11 185.11 Funds received by municipalities, deposit in
12 retirement trust fund.--For any municipality, chapter plan,
13 local law municipality, or local law plan under this chapter,
14 all state and other funds received by any municipality under
15 the provisions of this chapter shall be deposited by the said
16 municipality immediately, and under no circumstances more than
17 5 days after receipt, with the board of trustees. Employee
18 contributions, however, which are withheld by the employer on
19 behalf of an employee member shall be deposited immediately
20 after each pay period with the board of trustees of the
21 municipal police officers' retirement trust fund. Employer
22 contributions shall be deposited at least quarterly at least
23 monthly.
24 Section 54. Section 185.12, Florida Statutes, is
25 amended to read:
26 185.12 Payment of excise tax credit on similar state
27 excise or license tax.--The tax herein authorized shall in
28 nowise be additional to the similar state excise or license
29 tax imposed by part IV, chapter 624, but the payor of the tax
30 hereby authorized shall receive credit therefor on his or her
31 said state excise or license tax and the balance of said state
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1 excise or license tax shall be paid to the Department of
2 Revenue Insurance Commissioner and Treasurer as is now
3 provided by law.
4 Section 55. Section 185.13, Florida Statutes, is
5 amended to read:
6 185.13 Failure of insurer to comply with chapter;
7 penalty.--Should any insurance company, corporation or other
8 insurer fail to comply with the provisions of this chapter, on
9 or before March 1 in each year as herein provided, the
10 certificate of authority issued to said insurance company,
11 corporation or other insurer to transact business in this
12 state may be canceled and revoked by the Department of
13 Insurance, and it is unlawful for any such insurance company,
14 corporation or other insurer to transact any business
15 thereafter in this state unless such insurance company,
16 corporation or other insurer shall be granted a new
17 certificate of authority to transact business in this state,
18 in compliance with provisions of law authorizing such
19 certificate of authority to be issued. The division shall be
20 responsible for notifying the Department of Insurance
21 regarding any such failure to comply.
22 Section 56. Section 185.14, Florida Statutes, is
23 repealed.
24 Section 57. Section 185.15, Florida Statutes, is
25 repealed.
26 Section 58. Section 185.16, Florida Statutes, is
27 amended to read:
28 185.16 Requirements for retirement.--For any
29 municipality, chapter plan, local law municipality, or local
30 law plan under this chapter, any police officer who completes
31 10 or more years of creditable service as a police officer and
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1 attains age 55, or completes 25 years of creditable service as
2 a police officer and attains age 52, and for such period has
3 been a member of the retirement fund is eligible for normal
4 retirement benefits. Normal retirement under the plan is
5 retirement from the service of the city on or after the normal
6 retirement date. In such event, for chapter plans and local
7 law plans, payment of retirement income will be governed by
8 the following provisions of this section:
9 (1) The normal retirement date of each police officer
10 will be the first day of the month coincident with or next
11 following the date on which the police officer has completed
12 10 or more years of creditable service and attained age 55 or
13 completed 25 years of creditable service and attained age 52.
14 A police officer who retires after his or her normal
15 retirement date will upon actual retirement be entitled to
16 receive the same amount of monthly retirement income that the
17 police officer would have received had he or she retired on
18 his or her normal retirement date.
19 (2) The amount of the monthly retirement income
20 payable to a police officer who retires on or after his or her
21 normal retirement date shall be an amount equal to the number
22 of the police officer's years of credited service multiplied
23 by 2 percent of his or her average final compensation. If the
24 plan has a cap on benefit accrual which was in existence on
25 January 1, 1997, the cap may continue if and only if there is
26 consent of the members' collective bargaining representative
27 or, if none, by majority consent of the police officer members
28 of the fund to retain the cap. The vote to retain the cap
29 must be held within 6 months after the effective date of this
30 act. However, if current state contributions pursuant to this
31 chapter are not adequate to fund the additional benefits to
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1 meet the minimum requirements in this chapter, only increment
2 increases shall be required as state moneys are adequate to
3 provide. Such increments shall be provided as state moneys
4 become available. The retirement income will be reduced for
5 moneys received under the disability provisions of this
6 chapter.
7 (3) The monthly retirement income payable in the event
8 of normal retirement will be payable on the first day of each
9 month. The first payment will be made on the police officer's
10 normal retirement date, or on the first day of the month
11 coincident with or next following the police officer's actual
12 retirement, if later, and the last payment will be the payment
13 due next preceding the police officer's death; except that, in
14 the event the police officer dies after retirement but before
15 receiving retirement benefits for a period of 10 years, the
16 same monthly benefit will be paid to the beneficiary (or
17 beneficiaries) as designated by the police officer for the
18 balance of such 10-year period, or, if no beneficiary is
19 designated, to the surviving spouse, descendants, heirs at
20 law, or estate of the police officer, as provided in s.
21 185.162. If a police officer continues in the service of the
22 city beyond his or her normal retirement date and dies prior
23 to the date of actual retirement, without an option made
24 pursuant to s. 185.161 being in effect, monthly retirement
25 income payments will be made for a period of 10 years to a
26 beneficiary (or beneficiaries) designated by the police
27 officer as if the police officer had retired on the date on
28 which death occurred, or, if no beneficiary is designated, to
29 the surviving spouse, descendants, heirs at law, or estate of
30 the police officer, as provided in s. 185.162.
31
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1 (4) Early retirement under the plan is retirement from
2 the service of the city, with the consent of the city, as of
3 the first day of any calendar month which is prior to the
4 police officer's normal retirement date but subsequent to the
5 date as of which the police officer has both attained the age
6 of 50 years and completed 10 years of contributing service.
7 In the event of early retirement, payment of retirement income
8 will be governed as follows:
9 (a) The early retirement date shall be the first day
10 of the calendar month coincident with or immediately following
11 the date a police officer retires from the service of the city
12 under the provisions of this section prior to his or her
13 normal retirement date.
14 (b) The monthly amount of retirement income payable to
15 a police officer who retires prior to his or her normal
16 retirement date under the provisions of this section shall be
17 an amount computed as described in subsection (2), taking into
18 account his or her credited service to the date of actual
19 retirement and his or her final monthly compensation as of
20 such date, such amount of retirement income to be actuarially
21 reduced to take into account the police officer's younger age
22 and the earlier commencement of retirement income payments.
23 In no event shall the early retirement reduction exceed 3
24 percent for each year by which the member's age at retirement
25 preceded the member's normal retirement age, as provided in
26 subsection (1).
27 (c) The retirement income payable in the event of
28 early retirement will be payable on the first day of each
29 month. The first payment will be made on the police officer's
30 early retirement date and the last payment will be the payment
31 due next preceding the retired police officer's death; except
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1 that, in the event the police officer dies before receiving
2 retirement benefits for a period of 10 years, the same monthly
3 benefit will be paid to the beneficiary designated by the
4 police officer for the balance of such 10-year period, or, if
5 no designated beneficiary is surviving, the same monthly
6 benefit for the balance of such 10-year period shall be
7 payable as provided in s. 185.162.
8 Section 59. Section 185.161, Florida Statutes, is
9 amended to read:
10 185.161 Optional forms of retirement income.--For any
11 municipality, chapter plan, local law municipality, or local
12 law plan under this chapter:
13 (1)(a) In lieu of the amount and form of retirement
14 income payable in the event of normal or early retirement as
15 specified in s. 185.16, a police officer, upon written request
16 to the board of trustees and submission of evidence of good
17 health (except that such evidence will not be required if such
18 request is made at least 3 years prior to the date of
19 commencement of retirement income or if such request is made
20 within 6 months following the effective date of the plan, if
21 later), and subject to the approval of the board of trustees,
22 may elect to receive a retirement income or benefit of
23 equivalent actuarial value payable in accordance with one of
24 the following options:
25 1. A retirement income of larger monthly amount,
26 payable to the police officer for his or her lifetime only.
27 2. A retirement income of a modified monthly amount,
28 payable to the police officer during the joint lifetime of the
29 police officer and a joint pensioner designated by the police
30 officer, and following the death of either of them, 100
31 percent, 75 percent, 66 2/3 percent, or 50 percent of such
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1 monthly amount payable to the survivor for the lifetime of the
2 survivor.
3 3. Such other amount and form of retirement payments
4 or benefit as, in the opinion of the board of trustees, will
5 best meet the circumstances of the retiring police officer.
6 (b) The police officer upon electing any option of
7 this section will designate the joint pensioner or beneficiary
8 (or beneficiaries) to receive the benefit, if any, payable
9 under the plan in the event of the police officer's death, and
10 will have the power to change such designation from time to
11 time but any such change shall be deemed a new election and
12 will be subject to approval by the pension committee. Such
13 designation will name a joint pensioner or one or more primary
14 beneficiaries where applicable. If a police officer has
15 elected an option with a joint pensioner or beneficiary and
16 his or her retirement income benefits have commenced, he or
17 she may thereafter change the designated joint pensioner or
18 beneficiary but only if the board of trustees consents to such
19 change and if the joint pensioner last previously designated
20 by the police officer is alive when he or she files with the
21 board of trustees a request for such change. The consent of a
22 police officer's joint pensioner or beneficiary to any such
23 change shall not be required. The board of trustees may
24 request such evidence of the good health of the joint
25 pensioner that is being removed as it may require and the
26 amount of the retirement income payable to the police officer
27 upon the designation of a new joint pensioner shall be
28 actuarially redetermined taking into account the ages and sex
29 of the former joint pensioner, the new joint pensioner, and
30 the police officer. Each such designation will be made in
31 writing on a form prepared by the board of trustees, and on
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1 completion will be filed with the board of trustees. In the
2 event that no designated beneficiary survives the police
3 officer, such benefits as are payable in the event of the
4 death of the police officer subsequent to his or her
5 retirement shall be paid as provided in s. 185.162.
6 (2) Retirement income payments shall be made under the
7 option elected in accordance with the provisions of this
8 section and shall be subject to the following limitations:
9 (a) If a police officer dies prior to his or her
10 normal retirement date or early retirement date, whichever
11 first occurs, no benefit will be payable under the option to
12 any person, but the benefits, if any, will be determined under
13 s. 185.21.
14 (b) If the designated beneficiary (or beneficiaries)
15 or joint pensioner dies before the police officer's retirement
16 under the plan, the option elected will be canceled
17 automatically and a retirement income of the normal form and
18 amount will be payable to the police officer upon his or her
19 retirement as if the election had not been made, unless a new
20 election is made in accordance with the provisions of this
21 section or a new beneficiary is designated by the police
22 officer prior to his or her retirement and within 90 days
23 after the death of the beneficiary.
24 (c) If both the retired police officer and the
25 designated beneficiary (or beneficiaries) die before the full
26 payment has been effected under any option providing for
27 payments for a period certain and life thereafter, made
28 pursuant to the provisions of subparagraph (1)(a)3., the board
29 of trustees may, in its discretion, direct that the commuted
30 value of the remaining payments be paid in a lump sum and in
31 accordance with s. 185.162.
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1 (d) If a police officer continues beyond his or her
2 normal retirement date pursuant to the provisions of s.
3 185.16(1) and dies prior to actual retirement and while an
4 option made pursuant to the provisions of this section is in
5 effect, monthly retirement income payments will be made, or a
6 retirement benefit will be paid, under the option to a
7 beneficiary (or beneficiaries) designated by the police
8 officer in the amount or amounts computed as if the police
9 officer had retired under the option on the date on which
10 death occurred.
11 (3) No police officer may make any change in his or
12 her retirement option after the date of cashing or depositing
13 his or her first retirement check.
14 Section 60. Section 185.162, Florida Statutes, is
15 amended to read:
16 185.162 Beneficiaries.--For any municipality, chapter
17 plan, local law municipality, or local law plan under this
18 chapter:
19 (1) Each police officer may, on a form, provided for
20 that purpose, signed and filed with the board of trustees,
21 designate a choice of one or more persons, named sequentially
22 or jointly, as his or her beneficiary (or beneficiaries) to
23 receive the benefit, if any, which may be payable in the event
24 of the police officer's death, and each designation may be
25 revoked by such police officer by signing and filing with the
26 board of trustees a new designation or beneficiary form.
27 (2) If no beneficiary is named in the manner provided
28 by subsection (1), or if no beneficiary designated by the
29 member survives him or her a deceased police officer failed to
30 name a beneficiary in the manner above prescribed, or if the
31 beneficiary (or beneficiaries) named by a deceased police
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1 officer predeceases the police officer, the death benefit, if
2 any, which may be payable under the plan with respect to such
3 deceased police officer shall may be paid by, in the
4 discretion of the board of trustees, either to:
5 (a) Any one or more of the persons comprising the
6 group consisting of the police officer's spouse, the police
7 officer's descendants, the police officer's parents, or the
8 police officer's heirs at law, and the board of trustees may
9 pay the entire benefit to any member of such group or
10 apportion such benefit among any two or more of them in such
11 shares as the board of trustees, in its sole discretion, shall
12 determine, or
13 (b) the estate of such deceased police officer,
14 provided that in any of such cases the board of trustees, in
15 its discretion, may direct that the commuted value of the
16 remaining monthly income payments be paid in a lump sum. Any
17 payment made to any person pursuant to this subsection the
18 power and discretion conferred upon the board of trustees by
19 the preceding sentence shall operate as a complete discharge
20 of all obligations under the plan with regard to such deceased
21 police officer and shall not be subject to review by anyone,
22 but shall be final, binding and conclusive on all persons ever
23 interested hereunder.
24 (3) Notwithstanding any other provision of law to the
25 contrary, the surviving spouse of any pension participant
26 member killed in the line of duty shall not lose survivor
27 retirement benefits if the spouse remarries. The surviving
28 spouse of such deceased member whose benefit terminated
29 because of remarriage shall have the benefit reinstated as of
30 July 1, 1994, at an amount that would have been payable had
31 such benefit not been terminated. This paragraph shall apply
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1 to all municipalities which receive state excise tax moneys as
2 provided in s. 185.08.
3 Section 61. Section 185.18, Florida Statutes, is
4 amended to read:
5 185.18 Disability retirement.--For any municipality,
6 chapter plan, local law municipality, or local law plan under
7 this chapter:
8 (1) A police officer having 10 or more years of
9 credited service, or a police officer who becomes totally and
10 permanently disabled in the line of duty, regardless of length
11 of service, and having contributed to the municipal police
12 officers' retirement trust fund for 10 years or more may
13 retire from the service of the city under the plan if, prior
14 to the police officer's normal retirement date, he or she
15 becomes totally and permanently disabled as defined in
16 subsection (2) by reason of any cause other than a cause set
17 out in subsection (3) on or after the effective date of the
18 plan. Such retirement shall herein be referred to as
19 disability retirement. The provisions for disability other
20 than line-of-duty disability shall not apply to a member who
21 has reached early or normal retirement age.
22 (2) A police officer will be considered totally
23 disabled if, in the opinion of the board of trustees, he or
24 she is wholly prevented from rendering useful and efficient
25 service as a police officer; and a police officer will be
26 considered permanently disabled if, in the opinion of the
27 board of trustees, such police officer is likely to remain so
28 disabled continuously and permanently from a cause other than
29 as specified in subsection (3).
30
31
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1 (3) A police officer will not be entitled to receive
2 any disability retirement income if the disability is a result
3 of:
4 (a) Excessive and habitual use by the police officer
5 of drugs, intoxicants or narcotics;
6 (b) Injury or disease sustained by the police officer
7 while willfully and illegally participating in fights, riots,
8 civil insurrections or while committing a crime;
9 (c) Injury or disease sustained by the police officer
10 while serving in any armed forces;
11 (d) Injury or disease sustained by the police officer
12 after employment has terminated;
13 (e) Injury or disease sustained by the police officer
14 while working for anyone other than the city and arising out
15 of such employment.
16 (4) No police officer shall be permitted to retire
17 under the provisions of this section until examined by a duly
18 qualified physician or surgeon, to be selected by the board of
19 trustees for that purpose, and is found to be disabled in the
20 degree and in the manner specified in this section. Any
21 police officer retiring under this section may shall be
22 examined periodically by a duly qualified physician or surgeon
23 or board of physicians and surgeons to be selected by the
24 board of trustees for that purpose, to determine if such
25 disability has ceased to exist.
26 (5) The benefit payable to a police officer who
27 retires from the service of the city with a total and
28 permanent disability as a result of a disability commencing
29 prior to the police officer's normal retirement date is the
30 monthly income payable for 10 years certain and life for
31 which, if the police officer's disability occurred in the line
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1 of duty, his or her monthly benefit shall be the accrued
2 retirement benefit, but shall not be less than 42 percent of
3 his or her average monthly compensation as of the police
4 officer's disability retirement date. If after 10 years of
5 service the disability is other than in the line of duty, the
6 police officer's monthly benefit shall be the accrued normal
7 retirement benefit, but shall not be less than 25 percent of
8 his or her average monthly compensation as of the police
9 officer's disability retirement date.
10 (6)(a) The monthly retirement income to which a police
11 officer is entitled in the event of his or her disability
12 retirement shall be payable on the first day of the first
13 month after the board of trustees determines such entitlement.
14 However, the monthly retirement income shall be payable as of
15 the date the board determines such entitlement, and any
16 portion due for a partial month shall be paid together with
17 the first payment.
18 (b) The last payment will be,:
19 1. if the police officer recovers from the disability
20 prior to his or her normal retirement date, the payment due
21 next preceding the date of such recovery, or,
22 2. if the police officer dies without recovering from
23 his or her disability or attains his or her normal retirement
24 date while still disabled, the payment due next preceding
25 death or the 120th monthly payment, whichever is later. In
26 lieu of the benefit payment as provided in this subsection, a
27 police officer may select an optional form as provided in s.
28 185.161.
29 (c) Any monthly retirement income payments due after
30 the death of a disabled police officer shall be paid to the
31
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1 police officer's designated beneficiary (or beneficiaries) as
2 provided in ss. 185.162 and 185.21.
3 (7) If the board of trustees finds that a police
4 officer who is receiving a disability retirement income is, at
5 any time prior to the police officer's normal retirement date,
6 no longer disabled, as provided herein, the board of trustees
7 shall direct that the disability retirement income be
8 discontinued. Recovery from disability as used herein shall
9 mean the ability of the police officer to render useful and
10 efficient service as a police officer.
11 (8) If the police officer recovers from disability and
12 reenters the service of the city as a police officer, his or
13 her service will be deemed to have been continuous, but the
14 period beginning with the first month for which the police
15 officer received a disability retirement income payment and
16 ending with the date he or she reentered the service of the
17 city may will not be considered as credited service for the
18 purposes of the plan.
19 Section 62. Section 185.185, Florida Statutes, is
20 created to read:
21 185.185 False, misleading, or fraudulent statements
22 made to obtain public retirement benefits prohibited;
23 penalty.--
24 (1) It is unlawful for a person to willfully and
25 knowingly make, or cause to be made, or to assist, conspire
26 with, or urge another to make, or cause to be made, any false,
27 fraudulent, or misleading oral or written statement to obtain
28 any benefit available under a retirement plan receiving
29 funding under this chapter.
30
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1 (2)(a) A person who violates subsection (1) commits a
2 misdemeanor of the first degree, punishable as provided in s.
3 775.082 or s. 775.083.
4 (b) In addition to any applicable criminal penalty,
5 upon conviction for a violation described in subsection (1), a
6 participant or beneficiary of a pension plan receiving funding
7 under this chapter may, in the discretion of the board of
8 trustees, be required to forfeit the right to receive any or
9 all benefits to which the person would otherwise be entitled
10 under this chapter. For purposes of this paragraph,
11 "conviction" means a determination of guilt that is the result
12 of a plea or trial, regardless of whether adjudication is
13 withheld.
14 Section 63. Section 185.19, Florida Statutes, is
15 amended to read:
16 185.19 Separation from municipal service;
17 refunds.--For any municipality, chapter plan, local law
18 municipality, or local law plan under this chapter:
19 (1) If Should any police officer leaves leave the
20 service of the municipality before accumulating aggregate time
21 of 10 years toward retirement and before being eligible to
22 retire under the provisions of this chapter, such police
23 officer shall be entitled to a refund of all of his or her
24 contributions made to the municipal police officers'
25 retirement trust fund without interest, less any benefits paid
26 to him or her.
27 (2) If Should any police officer who has been in the
28 service of the municipality for at least 10 years elects and
29 has contributed to the municipal police officers' retirement
30 trust fund for at least 10 years elect to leave his or her
31 accrued contributions, if contributions are required, in the
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1 municipal police officers' retirement trust fund, such police
2 officer upon attaining age 50 years or more may retire at the
3 actuarial equivalent of the amount of such retirement income
4 otherwise payable to him or her, as provided in s. 185.16(4),
5 or, upon attaining age 55 years, may retire as provided in s.
6 185.16(2).
7 Section 64. Section 185.191, Florida Statutes, is
8 amended to read:
9 185.191 Lump-sum payment of small retirement
10 income.--For any municipality, chapter plan, local law
11 municipality, or local law plan under this chapter,
12 notwithstanding any provision of the plan to the contrary, if
13 the monthly retirement income payable to any person entitled
14 to benefits hereunder is less than $100 $30 or if the
15 single-sum value of the accrued retirement income is less than
16 $2,500 $750 as of the date of retirement or termination of
17 service, whichever is applicable, the board of trustees, in
18 the exercise of its discretion, may specify that the actuarial
19 equivalent of such retirement income be paid in a lump sum.
20 Section 65. Section 185.21, Florida Statutes, is
21 amended to read:
22 185.21 Death prior to retirement; refunds of
23 contributions or payment of death benefits.--For any
24 municipality, chapter plan, local law municipality, or local
25 law plan under this chapter:
26 (1) If a Should any police officer dies die before
27 being eligible to retire under the provisions of this chapter,
28 the heirs, legatees, beneficiaries, or personal
29 representatives representative of such deceased police officer
30 shall be entitled to a refund of 100 percent, without
31 interest, of the contributions made to the municipal police
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1 officers' retirement trust fund by such deceased police
2 officer or, in the event an annuity or life insurance contract
3 has been purchased by the board on such police officer, then
4 to the death benefits available under such life insurance or
5 annuity contract, subject to the limitations on such death
6 benefits set forth in s. 185.061 whichever amount is greater.
7 (2) If a any police officer having at least 10 years
8 of credited service dies prior to retirement but has at least
9 10 years of contributing service, his or her beneficiary is
10 entitled to the benefits otherwise payable to the police
11 officer at early or normal retirement age.
12
13 In the event that a the death benefit paid by a life insurance
14 company exceeds the limit set forth in s. 185.061(6), the
15 excess of the death benefit over the limit shall be paid to
16 the municipal police officers' retirement trust fund.
17 However, death the benefits as provided pursuant to in s.
18 112.19 or any other state or federal law shall not be included
19 in the calculation of as death or retirement benefits provided
20 under the provisions of this chapter.
21 Section 66. Section 185.221, Florida Statutes, is
22 amended to read:
23 185.221 Annual report to Division of Retirement;
24 actuarial valuations reports.--For any municipality, chapter
25 plan, local law municipality, or local law plan under this
26 chapter, the board of trustees for every chapter plan and
27 local law plan shall submit the following reports to the
28 division:
29 (1) With respect to chapter plans:
30 (a)(1) Each year by February 1, the chair or secretary
31 of each municipal police officers' retirement trust fund
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1 operating a chapter plan shall file a report with the division
2 which contains:
3 1.(a) A statement of whether in fact the municipality
4 is within the provisions of s. 185.03.
5 2.(b) An independent audit by a certified public
6 accountant if the fund has $250,000 $100,000 or more in
7 assets, or a certified statement of accounting if the fund has
8 less than $250,000 $100,000 in assets, for the most recent
9 plan fiscal year of the municipality, showing a detailed
10 listing of assets and methods used to value them and a
11 statement of all income and disbursements during the year.
12 Such income and disbursements shall be reconciled with the
13 assets at the beginning and end of the year.
14 3.(c) A statistical exhibit showing the total number
15 of police officers on the force of the municipality, the
16 number included in the retirement plan and the number
17 ineligible classified according to the reasons for their being
18 ineligible, and the number of disabled and retired police
19 officers and their beneficiaries receiving pension payments
20 and the amounts of annual retirement income or pension
21 payments being received by them.
22 4.(d) A statement of the amount the municipality, or
23 other income source, has contributed to the retirement plan
24 for the most recent plan year ending with the preceding
25 December 31 and the amount the municipality will contribute to
26 the retirement plan for the current plan calendar year.
27 5.(e) If any benefits are insured with a commercial
28 insurance company, the report shall include a statement of the
29 relationship of the insured benefits to the benefits provided
30 by this chapter. This report shall also contain information
31
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1 about the insurer, basis of premium rates and mortality table,
2 interest rate and method used in valuing retirement benefits.
3 (b)(2) In addition to annual reports provided under
4 paragraph (a), by February 1 of each triennial year, an
5 actuarial valuation of the chapter plan must be made by the
6 division at least once every 3 years, as provided in s.
7 112.63, commencing 3 years from the last actuarial valuation
8 of the plan or system for existing plans, or commencing 3
9 years from the issuance of the initial actuarial impact
10 statement submitted under s. 112.63 for newly created plans.
11 To that end By February 1 of each triennial year beginning
12 with February 1, 1986, and at least every 3 years commencing
13 from the last actuarial report of the plan or system or from
14 February 1, 1987, if no actuarial report has been issued
15 within the 3-year period prior to February 1, 1986, the chair
16 of the board of trustees for each municipal police officers'
17 retirement trust fund operating under a chapter plan shall
18 report to the division such data as that the division needs to
19 complete an actuarial valuation of each fund. The forms for
20 each municipality shall be supplied by the division. The
21 expense of the actuarial valuation shall be borne by the
22 municipal police officers' retirement trust fund established
23 by s. 185.10. The requirements of this section are
24 supplemental to the actuarial valuations necessary to comply
25 with ss. 11.45 and 218.32.
26 (2) With respect to local law plans:
27 (a) Each year, on or before March 15, the trustees of
28 the retirement plan shall submit the following information to
29 the division in order for the retirement plan of such
30 municipality to receive a share of the state funds for the
31 then-current calendar year:
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1 1. A certified copy of each and every instrument
2 constituting or evidencing the plan. This includes the formal
3 plan, including all amendments, the trust agreement, copies of
4 all insurance contracts, and formal announcement materials.
5 2. An independent audit by a certified public
6 accountant if the fund has $250,000 or more in assets, or a
7 certified statement of accounting if the fund has less than
8 $250,000 in assets, for the most recent plan year, showing a
9 detailed listing of assets and a statement of all income and
10 disbursements during the year. Such income and disbursements
11 must be reconciled with the assets at the beginning and end of
12 the year.
13 3. A certified statement listing the investments of
14 the plan and a description of the methods used in valuing the
15 investments.
16 4. A statistical exhibit showing the total number of
17 police officers, the number included in the plan, and the
18 number ineligible classified according to the reasons for
19 their being ineligible, and the number of disabled and retired
20 police officers and their beneficiaries receiving pension
21 payments and the amounts of annual retirement income or
22 pension payments being received by them.
23 5. A certified statement describing the methods,
24 factors, and actuarial assumptions used in determining the
25 cost.
26 6. A certified statement by an enrolled actuary
27 showing the results of the latest actuarial valuation of the
28 plan and a copy of the detailed worksheets showing the
29 computations used in arriving at the results.
30 7. A statement of the amount the municipality, or
31 other income source, has contributed toward the plan for the
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1 most recent plan year and will contribute toward the plan for
2 the current plan year.
3
4 When any of the items required hereunder is identical to the
5 corresponding item submitted for a previous year, it is not
6 necessary for the trustees to submit duplicate information if
7 they make reference to the item in the previous year's report.
8 (b) In addition to annual reports provided under
9 paragraph (a), an actuarial valuation of the retirement plan
10 must be made at least once every 3 years, as provided in s.
11 112.63, commencing 3 years from the last actuarial valuation
12 of the plan or system for existing plans, or commencing 3
13 years from issuance of the initial actuarial impact statement
14 submitted under s. 112.63 for newly created plans. Such
15 valuation shall be prepared by an enrolled actuary, subject to
16 the following conditions:
17 1. The assets shall be valued as provided in s.
18 112.625(7).
19 2. The cost of the actuarial valuation must be paid by
20 the individual police officer's retirement trust fund or by
21 the sponsoring municipality.
22 3. A report of the valuation, including actuarial
23 assumptions and type and basis of funding, shall be made to
24 the division within 3 months after the date of the valuation.
25 If any benefits are insured with a commercial insurance
26 company, the report must include a statement of the
27 relationship of the retirement plan benefits to the insured
28 benefits, the name of the insurer, the basis of premium rates,
29 and the mortality table, interest rate, and method used in
30 valuing the retirement benefits.
31
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1 Section 67. Subsection (1) of section 185.23, Florida
2 Statutes, is amended to read:
3 185.23 Duties of Division of Retirement; rulemaking;
4 investment by State Board of Administration.--
5 (1) The division shall be responsible for the daily
6 oversight and monitoring for actuarial soundness of the
7 municipal police officers' retirement plans, whether chapter
8 or local law plans, established under this chapter, for
9 receiving and holding the premium tax moneys collected under
10 this chapter, and, upon determining compliance with the
11 provisions on this chapter, for disbursing those moneys to the
12 municipal police officers' retirement plans. The funds to pay
13 the expenses for such administration shall be annually
14 appropriated from the interest and investment income earned on
15 moneys deposited in the trust fund.
16 Section 68. Section 185.25, Florida Statutes, is
17 amended to read:
18 185.25 Exemption from execution.--For any
19 municipality, chapter plan, local law municipality, or local
20 law plan under this chapter, the pensions, annuities, or any
21 other benefits accrued or accruing to any person under any
22 municipality, chapter plan, local law municipality, or local
23 law plan under the provisions of this chapter and the
24 accumulated contributions and the cash securities in the funds
25 created under this chapter are hereby exempted from any state,
26 county or municipal tax of the state and shall not be subject
27 to execution or attachment or to any legal process whatsoever
28 and shall be unassignable.
29 Section 69. Section 185.27, Florida Statutes, is
30 repealed.
31
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1 Section 70. Section 185.29, Florida Statutes, is
2 repealed.
3 Section 71. Section 185.30, Florida Statutes, is
4 amended to read:
5 185.30 Depository for retirement fund.--For any
6 municipality, chapter plan, local law municipality, or local
7 law plan under this chapter, all funds and securities of the
8 municipal police officers' retirement trust fund of any
9 municipality, chapter plan, local law municipality, or local
10 law plan under this chapter may be deposited by the board of
11 trustees with the treasurer of the municipality acting in a
12 ministerial capacity only, who shall be liable in the same
13 manner and to the same extent as he or she is liable for the
14 safekeeping of funds for the municipality. However, any funds
15 and securities so deposited with the treasurer of the
16 municipality shall be kept in a separate fund by the municipal
17 treasurer or clearly identified as such funds and securities
18 of the municipal police officers' retirement trust fund. In
19 lieu thereof, the board of trustees shall deposit the funds
20 and securities of the municipal police officers' retirement
21 trust fund in a qualified public depository as defined in s.
22 280.02, which depository with regard to such funds and
23 securities shall conform to and be bound by all of the
24 provisions of chapter 280.
25 Section 72. Section 185.31, Florida Statutes, is
26 amended to read:
27 185.31 Municipalities and boards independent of other
28 municipalities and boards and of each other.--In the
29 enforcement and in the interpretation of the provisions of
30 this chapter for any municipality, chapter plan, local law
31 municipality, or local law plan under this chapter, each
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1 municipality shall be independent of any other municipality,
2 and the board of trustees of the municipal police officers'
3 retirement trust fund of each municipality shall function for
4 the municipality which they are to serve as trustees. Each
5 board of trustees shall be independent of each municipality
6 for which it serves as board of trustees to the extent
7 required to accomplish the intent, requirements, and
8 responsibilities provided for in this chapter.
9 Section 73. Section 185.32, Florida Statutes, is
10 repealed.
11 Section 74. Section 185.34, Florida Statutes, is
12 amended to read:
13 185.34 Disability in line of duty.--For any
14 municipality, chapter plan, local law municipality, or local
15 law plan under this chapter, any condition or impairment of
16 health of any and all police officers employed in the state
17 caused by tuberculosis, hypertension, heart disease, or
18 hardening of the arteries, resulting in total or partial
19 disability or death, shall be presumed to be accidental and
20 suffered in line of duty unless the contrary be shown by
21 competent evidence. Any condition or impairment of health
22 caused directly or proximately by exposure, which exposure
23 occurred in the active performance of duty at some definite
24 time or place without willful negligence on the part of the
25 police officer, resulting in total or partial disability,
26 shall be presumed to be accidental and suffered in the line of
27 duty, provided that such police officer shall have
28 successfully passed a physical examination upon entering such
29 service, which physical examination including
30 electrocardiogram failed to reveal any evidence of such
31 condition, and, further, that such presumption shall not apply
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1 to benefits payable under or granted in a policy of life
2 insurance or disability insurance. This section shall be
3 applicable to all police officers employed in this state only
4 with reference to pension and retirement benefits under this
5 chapter.
6 Section 75. Section 185.341, Florida Statutes, is
7 amended to read:
8 185.341 Discrimination in benefit formula prohibited;
9 restrictions regarding designation of joint annuitants.--For
10 any municipality, chapter plan, local law municipality, or
11 local law plan under this chapter:
12 (1) No plan established under the provisions of this
13 chapter and participating in the distribution of premium tax
14 moneys as provided in this chapter shall discriminate in its
15 benefit formula based on color, national origin, sex, or
16 marital status.; however,
17 (2)(a) If a plan offers a joint annuitant option and
18 the member selects such option, or if a the plan specifies
19 that the member's spouse is to receive the benefits that which
20 continue to be payable upon the death of the member, then, in
21 both of these cases, after retirement the benefits have
22 commenced, a retired member may change the designation of
23 joint annuitant or beneficiary only twice.
24 (b) Any If said retired member who desires to change
25 the joint annuitant or beneficiary, he or she shall file with
26 the board of trustees of his or her plan a notarized notice of
27 such change either by registered letter or on such a form as
28 is provided by the administrator of the plan. Upon receipt of
29 a completed change of joint annuitant form or such other
30 notice, the board of trustees shall adjust the member's
31 monthly benefit by the application of actuarial tables and
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1 calculations developed to ensure that the benefit paid is the
2 actuarial equivalent of the present value of the member's
3 current benefit. Nothing herein shall preclude a plan from
4 actuarially adjusting benefits or offering options based upon
5 sex, age, early retirement, or disability.
6 Section 76. Section 185.35, Florida Statutes, is
7 amended to read:
8 185.35 Municipalities having their own pension plans
9 for police officers.--For any municipality, chapter plan,
10 local law municipality, or local law plan under this chapter,
11 (1) in order for municipalities with their own pension
12 plans for police officers or for police officers, and
13 firefighters where included, other employees to participate in
14 the distribution of the tax fund established pursuant to s. in
15 ss. 185.07, 185.08, local law plans and 185.09, their
16 retirement funds must meet the minimum benefits and minimum
17 standards set forth in this chapter each of the following
18 standards:
19 (1) PREMIUM TAX INCOME.--If a municipality has a
20 pension plan for police officers, or for police officers and
21 firefighters where included, which, in the opinion of the
22 division, meets the minimum benefits and minimum standards set
23 forth in this chapter, the board of trustees of the pension
24 plan, as approved by a majority of police officers of the
25 municipality, may:
26 (a) Place the income from the premium tax in s. 185.08
27 in such pension plan for the sole and exclusive use of its
28 police officers, or its police officers and firefighters where
29 included, where it shall become an integral part of that
30 pension plan and shall be used to pay extra benefits to the
31 police officers included in that pension plan; or
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1 (b) May place the income from the premium tax in s.
2 185.08 in a separate supplemental pension plan to pay extra
3 benefits to the police officers, or police officers and
4 firefighters where included, participating in such separate
5 supplemental pension plan.
6
7 Any provision of law to the contrary notwithstanding, the
8 premium tax provided by this chapter shall in all cases be
9 used in its entirety to provide extra benefits to police
10 officers, or police officers and firefighters, where included.
11 For purposes of this chapter, the term "extra benefits" means
12 benefits in addition to or greater than those provided to
13 general employees of the municipality.
14 (2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--
15 (a) The plan must be for the purpose of providing
16 retirement and disability income for police officers.
17 (b) The normal retirement age, if any, must not be
18 higher than age 60.
19 (c) If the plan provides for a stated period of
20 service as a requirement to receive a retirement income, that
21 period must not be higher than 30 years.
22 (d) The benefit formula to determine the amount of
23 monthly pension must be equal to at least 2 percent for each
24 year of the police officer's credited service, multiplied by
25 his or her average final compensation. However, if current
26 state contributions pursuant to this chapter are not adequate
27 to fund the additional benefits to meet the minimum
28 requirements in this chapter, only increment increases shall
29 be required as state moneys are adequate to provide. Such
30 increments shall be provided as state moneys become available.
31
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1 (e) If a ceiling on the monthly payment is stated in
2 the plan, it should be no lower than $100.
3 (f) Death or survivor benefits and disability benefits
4 may be incorporated into the plan as the municipality wishes
5 but in no event should the single-sum value of such benefits
6 as of the date of termination of service because of death or
7 disability exceed:
8 1. One hundred times the estimated normal monthly
9 retirement income, based on the assumption that the present
10 rate of compensation continues without change to normal
11 retirement date,
12 2. Twice the annual rate of compensation as of the
13 date of termination of service, or
14 3. The single-sum value of the accrued deferred
15 retirement income (beginning at normal retirement date) at
16 date of termination of service,
17
18 whichever is greatest; however, nothing in this paragraph
19 shall require any reduction in death or disability benefits
20 provided by a retirement plan in effect on July 1, 1959.
21 (g) Eligibility for coverage under the plan must be
22 based upon length of service, or attained age, or both, and
23 benefits must be determined by a nondiscriminatory formula
24 based upon:
25 1. Length of service and compensation, or
26 2. Length of service.
27
28 The retirement plan shall require participants to contribute
29 toward the cost of the plan an amount which shall not be less
30 than 1 percent of salary, and it must set forth the
31
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1 termination rights, if any, of an employee in the event of the
2 separation or withdrawal of an employee before retirement.
3 (h) An actuarial valuation of the retirement plan must
4 be made at least once in every 5 years commencing with
5 December 31, 1963, and at least every 3 years commencing from
6 the last actuarial report of the plan or system or from
7 October 1, 1986, if no actuarial report has been issued within
8 the 3 years prior to October 1, 1983. Such valuation shall be
9 prepared by an enrolled actuary.
10 1. The cost of the actuarial valuation must be paid by
11 the individual retirement fund or by the municipality.
12 2. A report of the valuation, including actuarial
13 assumptions and type and basis of funding, shall be made to
14 the division within 3 months after the date of valuation. If
15 any benefits are insured with a commercial insurance company,
16 the report shall include a statement of the relationship of
17 the retirement plan benefits to the insured benefits and, in
18 addition, the name of the insurer, basis of premium rates, and
19 the mortality table, interest rate, and method used in valuing
20 retirement benefits.
21 (i) Commencing on July 1, 1964, the municipality shall
22 contribute to the plan annually an amount which together with
23 the contributions from the police officers, the amount derived
24 from the premium tax provided in s. 185.08, and other income
25 sources will be sufficient to meet the normal cost of the plan
26 and to fund the actuarial deficiency over a period not longer
27 than 40 years.
28 (j) No retirement plan or amendment to a retirement
29 plan shall be proposed for adoption unless the proposed plan
30 or amendment contains an actuarial estimate of the costs
31 involved. No such proposed plan or proposed plan change shall
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1 be adopted without the approval of the municipality or, where
2 permitted, the Legislature. Copies of the proposed plan or
3 proposed plan change and the actuarial impact statement of the
4 proposed plan or proposed plan change shall be furnished to
5 the division prior to the last public hearing thereon. Such
6 statement shall also indicate whether the proposed plan or
7 proposed plan change is in compliance with s. 14, Art. X of
8 the State Constitution and those provisions of part VII of
9 chapter 112 which are not expressly provided in this chapter.
10 (k) Each year on or before March 15, the trustees of
11 the retirement plan must submit the following information to
12 the division in order for the retirement plan of such
13 municipality to receive a share of state funds for the then
14 current calendar year; when any of these items would be
15 identical with the corresponding item submitted for a previous
16 year, it is not necessary for the trustees to submit duplicate
17 information if they make reference to the item in such
18 previous year's report:
19 1. A certified copy of each and every instrument
20 constituting or evidencing the plan.
21 2. An independent audit by a certified public
22 accountant if the fund has $100,000 or more in assets, or a
23 certified statement of accounting if the fund has less than
24 $100,000 in assets, for the most recent fiscal year of the
25 municipality showing a detailed listing of assets and a
26 statement of all income and disbursements during the year.
27 Such income and disbursements must be reconciled with the
28 assets at the beginning and end of the year.
29 3. A certified statement listing the investments of
30 the plan and a description of the methods used in valuing the
31 investments.
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1 4. A statistical exhibit showing the total number of
2 police officers, the number included in the plan, and the
3 number ineligible classified according to the reasons for
4 their being ineligible.
5 5. A statement of the amount the municipality and
6 other income sources have contributed toward the plan or will
7 contribute toward the plan for the current calendar year.
8 (2) If a municipality has a police officers'
9 retirement plan which, in the opinion of the division, meets
10 the standards set forth in subsection (1), the board of
11 trustees of the pension plan, as approved by a majority of the
12 police officers of the municipality affected, or the official
13 pension committee, as approved by a majority of the police
14 officers of the municipality affected, may place the income
15 from the premium tax in s. 185.08 in its existing pension fund
16 for the sole and exclusive use of its police officers (or for
17 firefighters and police officers where included), where it
18 shall become an integral part of that fund, or may use the
19 income to pay extra benefits to the police officers included
20 in the fund.
21 (3) Notwithstanding any other provision, with respect
22 to any supplemental plan municipality:
23 (a) Section 185.02(4)(a) shall not apply, and a local
24 law plan and a supplemental plan may continue to use their
25 definition of compensation or salary in existence on the
26 effective date of this act.
27 (b) Section 185.05(1)(b) shall not apply, and a local
28 law plan and a supplemental plan shall continue to be
29 administered by a board or boards of trustees numbered,
30 constituted, and selected as the board or boards were
31 numbered, constituted, and selected on January 1, 1997.
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1 (c) Paragraphs (1)(a) and (b) shall not apply.
2 (4)(3) The retirement plan setting forth the benefits
3 and the trust agreement, if any, covering the duties and
4 responsibilities of the trustees and the regulations of the
5 investment of funds must be in writing and copies made
6 available to the participants and to the general public.
7 (4)(a) The membership of the board of trustees for
8 pension plans operated pursuant to this section shall be as
9 follows:
10 1. If a municipality has a pension plan for police
11 officers only, the provisions of s. 185.05 shall apply.
12 2. If a municipality has a pension plan for police
13 officers and firefighters, the provisions of s. 185.05 shall
14 apply, except that two members of the board shall be police
15 officers or firefighters who shall be elected by a majority of
16 the police officers and firefighters who are members of the
17 plan.
18 3. If a municipality has a pension plan for police
19 officers and general employees, at least one member of the
20 board shall be a police officer who shall be elected by a
21 majority of the police officers who are members of the plan.
22 4. If a municipality has a pension plan for police
23 officers, firefighters, and general employees, at least one
24 member of the board shall be a police officer or firefighter
25 who shall be elected by a majority of the police officers and
26 firefighters who are members of the plan.
27 (b) Nothing in this section shall permit the reduction
28 of the membership percentage of police officers, or police
29 officers and firefighters where a joint or mixed fund exists,
30 on any board of trustees operating a pension plan pursuant to
31 this section on June 30, 1986.
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1 (5) The provisions of this section and s. 185.05 may
2 not be changed by a participating municipality operating a
3 pension plan pursuant to this section.
4 Section 77. Section 185.36, Florida Statutes, is
5 repealed.
6 Section 78. Section 185.37, Florida Statutes, is
7 amended to read:
8 185.37 Termination of plan and distribution of
9 fund.--For any municipality, chapter plan, local law
10 municipality, or local law plan under this chapter, the plan
11 may be terminated by the municipality. Upon termination of the
12 plan by the municipality for any reason, or because of a
13 transfer, merger, or consolidation of governmental units,
14 services, or functions as provided in chapter 121, or upon
15 written notice to the board of trustees by the municipality
16 that contributions under the plan are being permanently
17 discontinued, the rights of all employees to benefits accrued
18 to the date of such termination or discontinuance and the
19 amounts credited to the employees' accounts are
20 nonforfeitable. The fund shall be apportioned and distributed
21 in accordance with the following procedures:
22 (1) The board of trustees shall determine the date of
23 distribution and the asset value to be distributed, after
24 taking into account the expenses of such distribution.
25 (2) The board of trustees shall determine the method
26 of distribution of the asset value, that is, whether
27 distribution shall be by payment in cash, by the maintenance
28 of another or substituted trust fund, by the purchase of
29 insured annuities, or otherwise, for each police officer
30 entitled to benefits under the plan, as specified in
31 subsection (3).
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1 (3) The board of trustees shall apportion the asset
2 value as of the date of termination in the manner set forth in
3 this subsection, on the basis that the amount required to
4 provide any given retirement income shall mean the actuarially
5 computed single-sum value of such retirement income, except
6 that if the method of distribution determined under subsection
7 (2) involves the purchase of an insured annuity, the amount
8 required to provide the given retirement income shall mean the
9 single premium payable for such annuity.
10 (a) Apportionment shall first be made in respect of
11 each retired police officer receiving a retirement income
12 hereunder on such date, each person receiving a retirement
13 income on such date on account of a retired (but since
14 deceased) police officer, and each police officer who has, by
15 such date, become eligible for normal retirement but has not
16 yet retired, in the amount required to provide such retirement
17 income, provided that, if such asset value is less than the
18 aggregate of such amounts, such amounts shall be
19 proportionately reduced so that the aggregate of such reduced
20 amounts will be equal to such asset value.
21 (b) If there is any asset value remaining after the
22 apportionment under paragraph (a), apportionment shall next be
23 made in respect of each police officer in the service of the
24 municipality on such date who has completed at least 10 years
25 of credited service, in who has contributed to the municipal
26 police officers' retirement trust fund for at least 10 years,
27 and who is not entitled to an apportionment under paragraph
28 (a), in the amount required to provide the actuarial
29 equivalent of the accrued normal retirement income, based on
30 the police officer's credited service and earnings to such
31 date, and each former participant then entitled to a benefit
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1 under the provisions of s. 185.19 who has not by such date
2 reached his or her normal retirement date, in the amount
3 required to provide the actuarial equivalent of the accrued
4 normal retirement income to which he or she is entitled under
5 s. 185.19, provided that, if such remaining asset value is
6 less than the aggregate of the amounts apportioned hereunder,
7 such latter amounts shall be proportionately reduced so that
8 the aggregate of such reduced amounts will be equal to such
9 remaining asset value.
10 (c) If there is an asset value after the
11 apportionments under paragraphs (a) and (b), apportionment
12 shall lastly be made in respect of each police officer in the
13 service of the municipality on such date who is not entitled
14 to an apportionment under paragraphs (a) and (b) in the amount
15 equal to the police officer's total contributions to the plan
16 to date of termination, provided that, if such remaining asset
17 value is less than the aggregate of the amounts apportioned
18 hereunder, such latter amounts shall be proportionately
19 reduced so that the aggregate of such reduced amounts will be
20 equal to such remaining asset value.
21 (d) In the event that there is asset value remaining
22 after the full apportionment specified in paragraphs (a), (b),
23 and (c), such excess shall be returned to the municipality,
24 less return to the state of the state's contributions,
25 provided that, if the excess is less than the total
26 contributions made by the municipality and the state to date
27 of termination of the plan, such excess shall be divided
28 proportionately to the total contributions made by the
29 municipality and the state.
30
31
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1 (4) The board of trustees shall distribute, in
2 accordance with the manner of distribution determined under
3 subsection (2), the amounts apportioned under subsection (3).
4
5 If, after a period of 24 months after the date on which the
6 plan terminated or the date on which the board received
7 written notice that the contributions thereunder were being
8 permanently discontinued, the municipality or the board of
9 trustees of the municipal police officers' retirement trust
10 fund affected has not complied with all the provisions in this
11 section, the division shall effect the termination of the fund
12 in accordance with this section.
13 Section 79. Section 185.38, Florida Statutes, is
14 amended to read:
15 185.38 Transfer to another state retirement system;
16 benefits payable.--For any municipality, chapter plan, local
17 law municipality, or local law plan under this chapter:
18 (1) Any police officer who has a vested right to
19 benefits under a pension plan created pursuant to the
20 provisions of this chapter and who elects to participate in
21 another state retirement system may not receive a benefit
22 under the provisions of the latter retirement system for any
23 year's service for which benefits are paid under the
24 provisions of the pension plan created pursuant to this
25 chapter.
26 (2) When every active participant in any pension plan
27 created pursuant to this chapter elects to transfer to another
28 state retirement system, the pension plan created pursuant to
29 this chapter shall be terminated and the assets distributed in
30 accordance with s. 185.37. If some participants in a pension
31 plan created pursuant to this chapter elect to transfer to
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1 another state retirement system and other participants elect
2 to remain in the existing plan created pursuant to this
3 chapter, the plan created pursuant to this chapter shall
4 remain in effect until fully funded and shall then be
5 terminated in accordance with s. 185.37.
6 Section 80. Section 185.39, Florida Statutes, is
7 amended to read:
8 (Substantial rewording of section. See
9 s. 185.39, F.S., for present text.)
10 185.39 Applicability.--This act applies to all
11 municipalities, chapter plans, local law municipalities, or
12 local law plans presently existing or to be created pursuant
13 to this chapter. Those plans presently existing pursuant to
14 s. 185.35 and not in compliance with the provisions of this
15 act must comply no later than December 31, 1998. However, the
16 plan sponsor of any plan established by special act of the
17 Legislature shall have until July 1, 1999, to comply with the
18 provisions of this act, except as otherwise provided in this
19 act with regard to establishment and election of board
20 members. The provisions of this act shall be construed to
21 establish minimum standards and minimum benefit levels, and
22 nothing contained in this act or in chapter 185 shall operate
23 to reduce presently existing rights or benefits of any police
24 officer, directly, indirectly, or otherwise.
25 Section 81. Section 185.40, Florida Statutes, is
26 repealed.
27 Section 82. Section 185.50, Florida Statutes, is
28 amended to read:
29 185.50 Retiree health insurance subsidy.--For any
30 municipality, chapter plan, local law municipality, or local
31 law plan under this chapter, under the broad grant of home
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1 rule powers under the Florida Constitution and chapter 166,
2 municipalities have the authority to establish and administer
3 locally funded health insurance subsidy programs. Pursuant
4 thereto:
5 (1) PURPOSE.--The purpose of this section is to allow
6 municipalities the option to use premium tax moneys, as
7 provided for under this chapter, to establish and administer
8 health insurance subsidy programs which will provide a monthly
9 subsidy payment to retired members of any municipal police
10 officers' pension trust fund system or plan as provided under
11 this chapter, or to beneficiaries who are spouses or financial
12 dependents entitled to receive benefits under such a plan, in
13 order to assist such retired members or beneficiaries in
14 paying the costs of health insurance.
15 (2) MUNICIPAL RETIREE HEALTH INSURANCE SUBSIDY TRUST
16 FUNDS; ESTABLISHMENT AND TERMINATION.--
17 (a) Any municipality having a municipal police
18 officers' pension trust fund system or plan as provided under
19 this chapter may, in its discretion, establish by ordinance a
20 trust fund to be known as the municipal police officers'
21 retiree health insurance subsidy trust fund. This fund may be
22 a separate account established for such purpose in the
23 existing municipal police officers' pension fund, provided
24 that all funds deposited in such account are segregated from,
25 and not commingled with, pension funds or other public moneys
26 and that the account otherwise conforms to the requirements of
27 subsection (8). The trust fund shall be used to account for
28 all moneys received and disbursed pursuant to this section.
29 (b) Prior to the second reading of the ordinance
30 before the municipal legislative body, an actuarial valuation
31 must be performed by an enrolled actuary as defined in s.
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1 185.02, and copies of the valuation and the proposed
2 implementing ordinance shall be furnished to the division.
3 (c) The subsidy program may, at the discretion of the
4 municipal governing body, be permanently discontinued by
5 municipal ordinance at any time, subject to the requirements
6 of any applicable collective bargaining agreement, in the same
7 manner and subject to the same conditions established for plan
8 termination and fund distribution under s. 185.37.
9 (3) FUNDING.--Trust funds established pursuant to this
10 section shall be funded in the following manner:
11 (a) By payment to the fund of an amount equivalent to
12 one-half of the net increase over the previous tax year in the
13 premium tax funds provided for in this chapter, said amount to
14 be established in the implementing ordinance.
15 (b) By no less than one-half of 1 percent of the base
16 salary of each police officer, for so long as the police
17 officer is employed and covered by a pension plan established
18 pursuant to this chapter. The municipality, with approval of
19 the board of trustees, may increase member contributions if
20 needed to fund benefits greater than the minimums established
21 in this section.
22 (c) By payment by the municipality, on at least a
23 quarterly basis, of whatever sum is determined necessary to
24 maintain the actuarial soundness of the fund in accordance
25 with s. 112.64.
26
27 Such contributions and payments shall be submitted to the
28 board of trustees of the police officers' pension trust fund,
29 or the plan trustees in the case of local law plans
30 established under s. 185.35, and deposited in the Municipal
31 Police Officers' Retiree Health Insurance Subsidy Trust Fund,
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1 in the same manner and subject to the same time constraints as
2 provided under s. 185.11.
3 (4) ELIGIBILITY FOR RETIREE HEALTH INSURANCE
4 SUBSIDY.--A person who has contributed to the Retiree Health
5 Insurance Subsidy Trust Fund and retires under a municipal
6 police officers' pension trust fund system or plan as provided
7 under this chapter, including any local law plan as provided
8 under s. 185.35, or a beneficiary who is a spouse or financial
9 dependent entitled to receive benefits under such a plan, is
10 eligible for health insurance subsidy payments provided under
11 this section. However, the fund, with approval of the board
12 of trustees and the municipality, may provide coverage to
13 retirees and beneficiaries when the retirees have not
14 contributed to the fund as provided in subsection (3).
15 Payment of the retiree health insurance subsidy shall be made
16 only after coverage for health insurance for the retiree or
17 beneficiary has been certified in writing to the board of
18 trustees of the municipal police officers' pension trust fund.
19 (5) RETIREE HEALTH INSURANCE SUBSIDY
20 AMOUNT.--Beginning on the effective date established in the
21 implementing ordinance, each eligible retiree, or beneficiary
22 who is a spouse or financial dependent thereof, shall receive
23 a monthly retiree health insurance subsidy payment equal to
24 the aggregate number of years of service with the
25 municipality, as defined in s. 185.02, completed at the time
26 of retirement multiplied by an amount determined in the
27 implementing ordinance, but no less than $3 for each year of
28 service. Nothing herein shall be construed to restrict the
29 plan sponsor from establishing, in the implementing ordinance,
30 a cap of no less than 30 years upon the number of years'
31
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1 service for which credit will be given toward a health
2 insurance subsidy or a maximum monthly subsidy amount.
3 (6) PAYMENT OF RETIREE HEALTH INSURANCE
4 SUBSIDY.--Beginning on the effective date established in the
5 implementing ordinance, any monthly retiree health insurance
6 subsidy amount due and payable under this section shall be
7 paid to retired members, or their eligible beneficiaries, by
8 the board of trustees of the police officers' pension trust
9 fund, or the plan trustees in the case of local law plans
10 established under s. 185.35, in the same manner as provided by
11 s. 185.06(1)(c) for drafts upon the pension fund.
12 (7) INVESTMENT OF THE TRUST FUND.--The trustees of the
13 police officers' pension trust fund, or the plan trustees in
14 the case of local law plans established under s. 185.35, are
15 hereby authorized to invest and reinvest the funds of the
16 Municipal Police Officers' Retiree Health Insurance Subsidy
17 Trust Fund in the same manner and subject to the same
18 conditions as apply hereunder to the investment of municipal
19 police officers' pension funds under s. 185.06.
20 (8) DEPOSIT OF PENSION FUNDS.--All funds and
21 securities of the health insurance subsidy fund may be
22 deposited by the board of trustees with the treasurer of the
23 municipality, acting in a ministerial capacity only, who shall
24 be liable in the same manner and to the same extent as he or
25 she is liable for the safekeeping of funds for the
26 municipality. Any funds so deposited shall be segregated by
27 said treasurer in a separate fund, clearly identified as funds
28 and securities of the health insurance subsidy fund. In lieu
29 thereof, the board of trustees shall deposit the funds and
30 securities of the health insurance subsidy fund in a qualified
31 public depository as defined in s. 280.02, which shall conform
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1 to and be bound by the provisions of chapter 280 with regard
2 to such funds. In no case shall the funds of the health
3 insurance subsidy fund be deposited in any financial
4 institution, brokerage house trust company, or other entity
5 that is not a public depository as provided by s. 280.02.
6 (9) SEPARATION FROM SERVICE; REFUNDS.--Any police
7 officer who terminates employment with a municipality having a
8 Municipal Retiree Health Insurance Subsidy Trust Fund system
9 or plan as provided under this section shall be entitled to a
10 refund of all employee contributions he or she made to that
11 trust fund, without interest, regardless of whether he or she
12 has vested for purposes of retirement. Any police officer who
13 has vested for purposes of retirement in the service of the
14 municipality, and has contributed to the Municipal Police
15 Officers' Retiree Health Insurance Subsidy Trust Fund for so
16 long as he or she was eligible to make such contributions,
17 may, in his or her discretion, elect to leave his or her
18 accrued contributions in the fund, whereupon, such police
19 officer shall, upon retiring and commencing to draw retirement
20 benefits, receive a health insurance subsidy based upon his or
21 her aggregate number of years of service with the
22 municipality, as defined in s. 185.02.
23 (10) ADMINISTRATION OF SYSTEM; ACTUARIAL VALUATIONS;
24 AUDITS; RULES; ADMINISTRATIVE COSTS.--The board of trustees of
25 the police officers' pension trust fund, or the plan trustees
26 in the case of local law plans established under s. 185.35,
27 shall be solely responsible for administering the health
28 insurance subsidy trust fund. Pursuant thereto:
29 (a) As part of its administrative duties, no less
30 frequently than every 3 years, the board shall have an
31 actuarial valuation of the municipal police officers' retiree
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1 health insurance subsidy trust fund prepared as provided in s.
2 112.63 by an enrolled actuary, covering the same reporting
3 period or plan year used for the municipal police officers'
4 pension plan, and shall submit a report of the valuation,
5 including actuarial assumptions and type and basis of funding,
6 to the division.
7 (b) By February 1 of each year, the trustees shall
8 file a report with the division, containing an independent
9 audit by a certified public accountant if the fund has
10 $250,000 $100,000 or more in assets, or a certified statement
11 of accounting if the fund has less than $250,000 $100,000 in
12 assets, for the most recent plan fiscal year of the
13 municipality, showing a detailed listing of assets and methods
14 used to value them and a statement of all income and
15 disbursements during the year. Such income and disbursements
16 shall be reconciled with the assets at the beginning of and
17 end of the year.
18 (c) The trustees may adopt such rules and regulations
19 as are necessary for the effective and efficient
20 administration of this section.
21 (d) At the discretion of the plan sponsor, the cost of
22 administration may be appropriated from the trust fund or paid
23 directly by the plan sponsor.
24 (11) BENEFITS.--Subsidy payments shall be payable
25 under the municipal police officers' retiree health insurance
26 subsidy program only to participants in the program or their
27 beneficiaries. Such subsidy payments shall not be subject to
28 assignment, execution, or attachment or to any legal process
29 whatsoever, and shall be in addition to any other benefits to
30 which eligible recipients are entitled under any workers'
31 compensation law, pension law, collective bargaining
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1 agreement, municipal or county ordinance, or any other state
2 or federal statute.
3 (12) DISTRIBUTION OF PREMIUM TAXES; COMPLIANCE
4 REQUIRED.--Premium tax dollars for which spending authority is
5 granted under this section shall be distributed from the
6 Police and Firefighters' Premium Tax Trust Fund and remitted
7 annually to municipalities in the same manner as provided
8 under this chapter for police officers' pension funds. Once a
9 health insurance subsidy plan has been implemented by a
10 municipality under this section, in order for the municipality
11 to participate in the distribution of premium tax dollars
12 authorized under this section, all provisions of this section,
13 including state acceptance pursuant to part VII of chapter
14 112, shall be complied with, and said premium tax dollars may
15 be withheld for noncompliance.
16 Section 83. This act shall take effect October 1 of
17 the year in which it is enacted.
18
19 *****************************************
20 LEGISLATIVE SUMMARY
21
Extensively revises chapters 175 and 185, Florida
22 Statutes, relating to firefighters' pension plans and law
enforcement officers' pension plans, respectively, in
23 order to make the plans conform to the greatest extent
possible, to provide definitions and clarify application
24 of provisions, and to update provisions to conform to
other laws and subsequent changes in federal provisions.
25
26 The act provides that fire and police chiefs may
optionally participate in their respective pension plans.
27 Up to 10 percent of firefighter and police officer
pension plan assets may be invested in foreign securities
28 subject to the limitations contained in s. 215.47(1)-(9).
Plans seeking to avail themselves of this authority must
29 complete new or provide amendments to their total
investment plan. See bill for details.
30
31
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