House Bill 1555

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    Florida House of Representatives - 1999                HB 1555

        By Representatives Maygarden, J. Miller, Ritchie, Peaden
    and Melvin





  1                      A bill to be entitled

  2         An act relating to the Firemen's Relief and

  3         Pension Fund of the City of Pensacola, Escambia

  4         County, Florida; amending chapter 21483, Laws

  5         of Florida, 1941, as amended; amending

  6         provisions describing sources of revenue;

  7         revising provisions relating to retirement

  8         benefits; providing for optional participation

  9         in a deferred retirement option plan;

10         coordinating retirement benefits with workers'

11         compensation benefits; amending chapter 74-576,

12         Laws of Florida, as amended, relating to

13         cost-of-living benefits; providing for repeal

14         of conflicting laws; providing an effective

15         date.

16

17  Be It Enacted by the Legislature of the State of Florida:

18

19         Section 1.  Section 4 of chapter 21483, Laws of

20  Florida, 1941, as amended by chapter 77-632, Laws of Florida,

21  is amended to read:

22         Section 4.  There is hereby continued in the City of

23  Pensacola the fund heretofore established and cited as the

24  "Firemen's Relief and Pension Fund," to be maintained in the

25  following manner The Firemen's Relief and Pension Fund shall

26  be created and maintained in the following manner:

27         (a)  All sums of money in the existing fund as of July

28  1, 1999, designated "Firemen's Relief and Pension Fund" of

29  said city, shall be and remain therein. By a sum of not less

30  than the total annual contribution from the salaries of

31  firemen provided by subsection (c) hereof, annually from the

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  1  general fund, or any other fund of the City of Pensacola, and

  2  the City of Pensacola, through its proper officers and agents

  3  is hereby directed to budget and pay annually into the

  4  Firemen's Relief and Pension Fund an amount not less than the

  5  aforesaid sum.

  6         (b)  By the net proceeds of the 2-percent two (2%)

  7  excise or license tax levied and collected under the authority

  8  of chapter 19112, Laws of Florida, 1939, as amended, which may

  9  be imposed by the City of Pensacola upon certain insurance

10  companies or other insurers against loss by fire and tornado

11  on their gross receipts of premiums from holders of policies,

12  which policies cover property within the corporate limits of

13  such municipality, or any additional amount that may hereafter

14  be levied and collected. This revenue shall be used first to

15  fund the cost-of-living adjustment provision, then the benefit

16  for 75 percent of compensation with 25 years of service on

17  normal pension benefits, and then any remaining amount shall

18  be used for the remaining benefits of the plan. If the receipt

19  of this money is not sufficient to pay all benefits of the

20  plan, nevertheless, all benefits of the plan shall be paid.

21         (c)  The City of Pensacola, through its proper

22  officers, shall deduct 11 percent from the compensation of all

23  members of the Firemen's Relief and Pension Fund who are not

24  in the deferred retirement option program, and shall pay the

25  same to the pension board herein created. Such payments shall

26  be deposited in a special account by the City of Pensacola to

27  be designated "Firemen's Relief and Pension Fund" and no

28  employee shall have any right to said money so paid into said

29  fund except as otherwise provided in the act. The

30  contributions may be "pickup" contributions, in accordance

31  with the Internal Revenue Code. By eleven percent (11%) of the

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  1  salary of each fireman duly appointed and enrolled as members

  2  of such fire department, which shall be deducted by the

  3  municipality, and paid over to board of trustees of the

  4  Firemen's Relief and Pension Fund and no fireman shall have

  5  any right to said money so paid into said fund except as

  6  provided in this act.

  7         (d)  By an amount equal to two percent (2%) of the

  8  salary of each fireman duly appointed and enrolled as members

  9  of such fire department which shall be appropriated annually

10  from the general fund, or any other fund of the City of

11  Pensacola, and the City of Pensacola, through its proper

12  officers and agents, is hereby directed to budget and pay

13  annually into the Firemen's Relief and Pension Fund an amount

14  not less than the aforesaid sum in addition to the

15  contributions hereinabove provided for.

16         (d)(e)  By all fines and forfeitures imposed and

17  collected from any fireman because of the violation of any

18  rule and regulation promulgated by the Pension Board.

19         (f)  By all sums derived by direct millage assessments

20  levied and collected for the augmentation of such Firemen's

21  Relief and Pension Fund, the levy of said taxes being hereby

22  authorized in addition to any taxes now authorized, anything

23  in special or general law to the contrary notwithstanding.

24         (e)(g)  By all gifts, bequests, bequest and devises

25  when donated for the fund.

26         (f)(h)  By all accretions to the fund by way of

27  interest or dividends on bank deposits or otherwise.

28         (i)  By all other sources of income now or hereafter

29  authorized by law for the augmentation of such Firemen's

30  Relief and Pension Fund.

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  1         (j)  The proceeds of the tax provided for by chapter

  2  24804, Laws of Florida, 1947.

  3         (g)(k)  By mandatory payment by the City of Pensacola

  4  of a sum equal to the actuarially required funding amount

  5  shown by the Fire Pension Board's actuary's annual actuarial

  6  valuation. Balances in the prepayment reserve account provided

  7  for in the annual actuary report shall be drawn down before

  8  the city is required to make any contributions normal cost and

  9  the amount required to fund over a period of forty (40) years

10  or on a forty-(40) year basis, any actuarial deficiency shown

11  by a quinquennial actuarial valuation. The first such

12  actuarial valuation shall be conducted for the calendar year

13  ending December 31, 1963.

14         (l)  By the payment monthly into the said fund of

15  twenty-five (25%) of the accruals from the sum of two dollars

16  and fifty cents ($2.50) now collected or such other or

17  different sum as may hereafter be collected on each bond

18  forfeiture and/or fine imposed and collected in the municipal

19  court of said city, on convictions where warrants are issued,

20  but not for parking violations.

21         (m)  At the end of the fiscal year, the City of

22  Pensacola shall reimburse the Firemen's Relief and Pension

23  Fund for the total amount of pensions or other benefits paid

24  to employees, their widows or children, whose disability or

25  death was incurred in the line of duty.

26         Section 2.  Section 5 of chapter 21483, Laws of

27  Florida, 1941, as amended by chapters 77-630, 86-453, and

28  87-527, Laws of Florida, is amended to read:

29         Section 5.  The pension of all persons entitled

30  thereto, as hereinafter specified, shall be computed upon the

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  1  basis of their compensation, and their years of service in

  2  accordance with the following tables:

  3         (a)  Such compensation shall be calculated by the

  4  selection from the last 5 five (5) years of service

  5  immediately preceding retirement of the best 2 two (2) of said

  6  years, thereby to arrive at the average monthly earnings of

  7  such fireman. Based upon such average monthly rate, a pension

  8  shall be paid according to the following table, to wit:

  9         75 % upon the first.............$200.00 of compensation

10         70 % upon the next..............$100.00 of compensation

11         65 % upon any additional amount.

12

13  If an employee retires on a normal pension benefit after July

14  1, 1999, with 25 years of service or more, the employee shall

15  receive a benefit equal to 75 percent of his or her final

16  average monthly compensation.

17         (b)  The pension of those firemen retired hereunder for

18  cause other than disability incurred in line of duty, whose

19  period of service shall be less than 25 twenty-five (25)

20  years, shall be computed under the table set out in subsection

21  (a), and after said amount shall have been so determined, the

22  sum payable shall be reduced to the percentage set opposite

23  the number of years of service shown in the following

24  schedule, to wit:

25         For 1 year of service or less.......................30%

26         For 2 years of service..............................36%

27         For 3 years of service..............................42%

28         For 4 years of service..............................48%

29         For 5 years of service..............................54%

30         For 6 years of service..............................60%

31         For 7 years of service..............................64%

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  1         For 8 years of service..............................66%

  2         For 9 years of service..............................68%

  3         For 10 years of service.............................70%

  4         For 11 years of service.............................72%

  5         For 12 years of service.............................74%

  6         For 13 years of service.............................76%

  7         For 14 years of service.............................78%

  8         For 15 years of service.............................80%

  9         For 16 years of service.............................82%

10         For 17 years of service.............................84%

11         For 18 years of service.............................86%

12         For 19 years of service.............................88%

13         For 20 years of service.............................90%

14         For 21 years of service.............................92%

15         For 22 years of service.............................94%

16         For 23 years of service.............................96%

17         For 24 years of service.............................98%

18         For 25 years of service............................100%

19         (c)  The pension of those firemen retired hereunder

20  because of a disability or injuries received in line of duty,

21  whose period of service shall be less than 25 twenty-five (25)

22  years, shall be computed under the table set out in subsection

23  (a), and after said amount shall have been so determined, the

24  sum payable shall be reduced to the percentage set opposite

25  the number of years of service shown in the following

26  schedule, to wit:

27         For 1 year of service or less.......................60%

28         For 2 years of service..............................64%

29         For 3 years of service..............................68%

30         For 4 years of service..............................72%

31         For 5 years of service..............................76%

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  1         For 6 years of service..............................80%

  2         For 7 years of service..............................82%

  3         For 8 years of service..............................83%

  4         For 9 years of service..............................84%

  5         For 10 years of service.............................85%

  6         For 11 years of service.............................86%

  7         For 12 years of service.............................87%

  8         For 13 years of service.............................88%

  9         For 14 years of service.............................89%

10         For 15 years of service.............................90%

11         For 16 years of service.............................91%

12         For 17 years of service.............................92%

13         For 18 years of service.............................93%

14         For 19 years of service.............................94%

15         For 20 years of service.............................95%

16         For 21 years of service.............................96%

17         For 22 years of service.............................97%

18         For 23 years of service.............................98%

19         For 24 years of service.............................99%

20         For 25 years of service............................100%

21         (d)  Those firemen whose period of service before

22  attaining the age of 60 sixty (60) years shall exceed 25

23  twenty-five (25) years and who retire with a pension

24  calculated under subsection (a), shall receive an increase of

25  1 one percent (1%) in the amount of pension for each

26  additional year or major fraction thereof; and in computing

27  any period of service, a major fraction of a year shall be

28  counted as a whole year.

29         (e)  Any duly appointed and enrolled firefighter who

30  upon the taking effect of this act, or hereafter, shall have

31  attained the age of 52 years and who retires with a pension

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  1  calculated under subsection (a) and 25 years of service, shall

  2  be, upon his application to the board of trustees, retired on

  3  a pension as in this section is provided; and any such person

  4  who shall have served as a duly appointed and enrolled

  5  firefighter for a period of 25 years, but who has not attained

  6  the age of 52 years, upon his application to the board of

  7  trustees shall be retired on a pension as in this section

  8  provided except that the amount of such pension shall be

  9  reduced in the ratio that the applicant's age bears to 52

10  years. But Any time spent in military or naval service,

11  voluntary or compulsory, or other forms of national service in

12  time of war, or within 1 year thereafter, by any person

13  theretofore employed by said city, shall be deemed equivalent

14  to a like period of actual service in the employment of the

15  city for the purpose of securing the benefits of this act;

16  and, provided further, that any employee who shall be laid off

17  because of illness, reduction of force, or other cause not of

18  the employee's his own doing and who shall elect not to

19  withdraw his or her contribution to the said retirement fund,

20  or to return the same if withdrawn, shall be entitled to have

21  the period of such service prior to said layoff added to any

22  his subsequent service for the purpose of computing his or her

23  period pension of service.

24         (f)  Any person regularly employed by the City of

25  Pensacola as a duly appointed and enrolled firefighter, who

26  shall while so employed and in line of duty become totally and

27  permanently disabled to perform his duties as a firefighter or

28  who shall become so disabled not in the line of duty, through

29  no intentional and self-inflicted injury, shall upon his

30  application, and the approval thereof by the board of trustees

31  be entitled to and shall receive a pension, to be determined

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  1  in accordance with the schedules above set out having regard

  2  to his or her rate of pay and period of service irrespective

  3  of his or her age.

  4         (g)  Any employee retired under the provisions of this

  5  section, or any widow or widower entitled to a pension under

  6  this chapter, shall be entitled to receive not less than $500

  7  five hundred dollars ($500) per month, irrespective of the his

  8  term of service, and of the results of the tables above set

  9  out. This provision act is applicable related to all persons

10  who are receiving benefits from the Firemen's Relief and

11  Pension Fund prior to January 1, 1986. They shall receive this

12  benefit as of July 14, 1986 the date of passage.

13         Section 3.  Section 1 of chapter 74-576, Laws of

14  Florida, as amended by chapter 85-486, Laws of Florida, is

15  amended, section 2 is repealed, present section 3 is

16  renumbered as section 2 and amended, and a new section 3 is

17  added to said chapter, to read:

18         Section 1.  A cost-of-living increase in benefits paid

19  pursuant to this act shall be given effective July 1, 1999,

20  and shall be paid annually thereafter. Each annual increase

21  shall have an effective date of July 1. All such increases

22  shall be equal to but no greater than the annual increase in

23  the Consumer Price Index (U) issued by the United States

24  Department of Labor, provided that such increase shall in no

25  event be greater than 3 percent per year. The annual CPI (U)

26  period to be used for calculation of any increase shall end in

27  March of the year of the July 1 increase. The increase in the

28  CPI (U) shall be the change in the values from April 1 to

29  March 31. In the event the United States Department of Labor

30  ceases to issue a CPI (U), the board shall utilize a current

31  CPI index that is the functional equivalent. Whenever there is

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  1  an increase of six percent (6%) in the Consumer Price Index as

  2  reported by the Bureau of Labor Statistics, the Pension Board

  3  may grant a five percent (5%) increase in pension benefits

  4  payable from the Firemen's Relief and Pension Fund of the City

  5  of Pensacola, provided that said increase shall not exceed

  6  five percent (5%) in any one calendar year.  Any Consumer

  7  Price Index increase above six percent (6%) in any one year

  8  shall be applied to the next succeeding years for the purpose

  9  of computing cost-of-living increases.  The Consumer Price

10  Index as measured from the 1967 base of 100 shall be the base

11  figure, and the implementation of benefits, as provided

12  herein, shall be calculated from this base.

13         Section 2.  This act shall operate retroactively to

14  January 1, 1974.  All those persons who receive pension

15  benefits shall be granted a five percent (5%) increase in

16  their pension and shall be entitled to another five percent

17  (5%) increase January 1, 1975 or whenever the consumer price

18  index reflects an increase of six percent (6%).

19         Section 2.3.  After June 22, 1974, the effective date

20  of this act no person shall transfer creditable service from

21  another retirement system into the Firemen's Relief and

22  Pension Fund.

23         Section 3.  The City of Pensacola, by ordinance, may

24  permit but not require members of the Firemen's Relief and

25  Pension Fund who are eligible to retire and to receive

26  retirement benefits to remain in the active service of the

27  city until a contractually fixed termination date and to have

28  accumulated for the employee's account from the date the

29  contract is made all benefits which the employee would be

30  eligible to begin receiving on that date and to have those

31  accumulated benefits held for the benefit of the employee

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  1  until the employee separates from active service. Such

  2  ordinance may provide for forfeiture of the accumulated

  3  benefits or other penalty if the employee does not comply with

  4  the contract. However, if the employee complies in all

  5  respects with the terms of the contract, the employee shall

  6  receive all retirement benefits the employee would be entitled

  7  to under this act upon the employee's actual retirement from

  8  the active service of the city.

  9         Section 4.  Subsection (1) of section 20 of chapter

10  21483, Laws of Florida, 1941, as amended by chapter 77-630,

11  Laws of Florida, is amended to read:

12         Section 20.  (1)  If any employee eligible for to the

13  benefits of this act shall die under such circumstances as to

14  entitle his or her widow or widower or children to benefits

15  hereunder, such widow, widower, or children shall be entitled

16  to receive such benefits in addition to any workmen's

17  compensation payable to them or any of them; and in the event

18  of disability of any pensioner, the pensioner he shall be

19  entitled to such pension as is hereby provided. However,

20  effective January 1, 2000, the total of the pension and

21  workers' compensation benefits, not to include benefits

22  provided as a reimbursement of medical costs incurred as the

23  result of the compensable injury, shall not exceed 100 percent

24  of the employee's average monthly salary. Should the total of

25  the benefits exceed 100 percent of the average monthly salary,

26  the pension benefit shall be reduced so as not to cause the

27  total pension and workers' compensation benefit to exceed 100

28  percent. In the event an employee eligible for benefits under

29  this act receives a lump-sum settlement of a workers'

30  compensation disability claim, the benefits received shall be

31  prorated over a 10-year projected period for the purposes of

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  1  the offset of any benefit in excess of 100 percent. For the

  2  purpose of this part, workers' compensation disability

  3  benefits are primary and the Firemen's Rescue and Pension Fund

  4  are secondary. Since pension benefits are secondary, the

  5  pension benefits shall be reduced in order to observe the cap.

  6  No reduction of benefits shall be implemented until an

  7  employee eligible for the benefits under this act realizes the

  8  other benefit sources, workers' compensation disability

  9  benefits. The employee eligible for benefits must advise the

10  Plan Administrator of the receipt of benefits from a primary

11  source, workers' compensation disability benefits, within 3

12  days after the incipient receipt of the benefits. Any

13  cost-of-living adjustment as provided by chapter 74-576, Laws

14  of Florida, as amended by this act, shall be calculated on the

15  full benefit, prior to the offset. in addition to any

16  workmen's compensation that may be payable to him.

17         Section 5.  All laws or parts of laws in conflict

18  herewith are repealed.

19         Section 6.  This act shall take effect upon becoming a

20  law.

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