House Bill 0261er

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1

  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," "local law

  7         plans," and "supplemental plan municipality";

  8         redefining "compensation" or "salary" for

  9         retirement purposes under these chapters;

10         clarifying the applicability of minimum

11         benefits for both chapter and local law plans;

12         eliminating discriminatory language in

13         conformance with state and federal

14         discrimination provisions; providing that

15         certain benefits provided are a minimum and may

16         not be diminished by any other state, local, or

17         federal benefits; providing an exception;

18         modifying the formula for calculating volunteer

19         firefighter service retirement benefits;

20         clarifying terminology relating to "sole and

21         exclusive use of" premium tax funds and "extra

22         benefits" by providing that moneys must be

23         placed in a police-only or firefighter-only

24         plan or a combined police and firefighter plan

25         as opposed to placing moneys in any type of

26         plan that includes general employees; providing

27         for establishment of a new board and for

28         transfer of assets in certain cases; creating

29         s. 175.195, F.S.; prohibiting certain

30         fraudulent practices; providing criminal and

31         administrative penalties; repealing s. 175.152,


                                  1

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         F.S., relating to contributions; repealing s.

  2         175.251, F.S., relating to employment records

  3         that are required to be kept by the secretary

  4         of the board of trustees; repealing s. 175.291,

  5         F.S., relating to the requirement that the

  6         attorney for the municipality or special fire

  7         control district represent the board of

  8         trustees upon request and the option to employ

  9         independent counsel and other persons;

10         repealing s. 175.321, F.S., relating to the

11         application of certain provisions to

12         municipalities and fire control districts;

13         repealing s. 175.331, F.S., relating to the

14         rights of firefighters under former law;

15         repealing s. 175.391, F.S., relating to payment

16         of attorney's fees and costs; repealing s.

17         185.14, F.S., relating to contributions;

18         repealing s. 185.15, F.S, relating to

19         contributions and new employees; creating s.

20         185.185, F.S.; prohibiting certain fraudulent

21         practices; providing criminal and

22         administrative penalties; repealing s. 185.27,

23         F.S., relating to the roster of retirees;

24         repealing s. 185.29, F.S., relating to the city

25         attorney representing the board of trustees;

26         repealing s. 185.32, F.S., relating to

27         exemptions from the chapter; repealing s.

28         185.36, F.S., relating to the rights of police

29         officers under former laws; repealing s.

30         185.40, F.S., relating to costs and attorney's

31         fees; creating ss. 175.411 and 185.60, F.S.;


                                  2

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         providing for optional participation; providing

  2         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'


                                  3

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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,


                                  4

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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


                                  5

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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


                                  6

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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

27  subsection (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


                                  7

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  firefighter for some other employer as long as a firefighter

  2  is not entitled to receive 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.


                                  8

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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


                                  9

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 minimum standards are met.  Any such variance

20  shall 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

31


                                  10

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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,


                                  11

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 was is in compliance with National Fire


                                  12

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  Protection Association Standards for Automotive Fire Apparatus

  2  at the time of purchase.

  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         Section 4.  Section 175.051, Florida Statutes, is

24  amended to read:

25         175.051  Actuarial deficits not state obligation.--For

26  any municipality, special fire control district, chapter plan,

27  local law municipality, local law special fire control

28  district, or local law plan under this chapter, actuarial

29  deficits, if any, arising under this chapter act, shall not be

30  the obligation of the state.

31


                                  13

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 5.  Section 175.061, Florida Statutes, is

  2  amended to read:

  3         175.061  Board of trustees; members, terms of office;

  4  meetings; legal entity; costs; attorney's fees.--For any

  5  municipality, special fire control district, chapter plan,

  6  local law municipality, local law special fire control

  7  district, or local law plan under this chapter:

  8         (1)  In each municipality and in each special fire

  9  control district there is hereby created a board of trustees

10  of the firefighters' pension trust fund, which shall be solely

11  responsible for administering the trust fund.  Effective

12  October 1, 1986, and thereafter:,

13         (a)  The membership of the board of trustees for a

14  chapter plan shall consist of five members, two of whom,

15  unless otherwise prohibited by law, shall be legal residents

16  of the municipality or special fire control district, who

17  shall be appointed by the governing body of the municipality

18  or special fire control district, and two of whom shall be

19  full-time firefighters as defined in s. 175.032 who shall be

20  elected by a majority of the active firefighters who are

21  members of such plan. With respect to any chapter plan or

22  local law plan that, on January 1, 1997, allowed retired

23  firefighters to vote in such elections, retirees may continue

24  to vote in such elections. The fifth member shall be chosen by

25  a majority of the previous four members as provided for

26  herein, and such person's name shall be submitted to the

27  governing body of the municipality or special fire control

28  district.  Upon receipt of the fifth person's name, the

29  governing body of the municipality or special fire control

30  district shall, as a ministerial duty, appoint such person to

31  the board of trustees as its fifth member. The fifth member


                                  14

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  shall have the same rights as each of the other four members

  2  appointed or elected as herein provided, shall serve as

  3  trustee for a period of 2 years, and may succeed himself or

  4  herself in office.  Each resident member shall serve as

  5  trustee for a period of 2 years, unless sooner replaced by the

  6  governing body at whose pleasure he or she shall serve, and

  7  may succeed himself or herself as a trustee. Each firefighter

  8  member shall serve as trustee for a period of 2 years, unless

  9  he or she sooner leaves the employment of the municipality or

10  special fire control district as a firefighter, whereupon a

11  successor shall be chosen in the same manner as an original

12  appointment.  Each firefighter may succeed himself or herself

13  in office.

14         (b)  The membership of boards of trustees for local law

15  plans shall be as follows:

16         1.  If a municipality or special fire control district

17  has a pension plan for firefighters only, the provisions of

18  paragraph (a) shall apply.

19         2.  If a municipality has a pension plan for

20  firefighters and police officers, the provisions of paragraph

21  (a) shall apply, except that one member of the board shall be

22  a firefighter as defined in s. 175.032 and one member of the

23  board shall be a police officer as defined in s. 185.02,

24  respectively elected by a majority of the active firefighters

25  or police officers who are members of the plan.

26         3.  Any board of trustees operating a local law plan on

27  July 1, 1999, which is combined with a plan for general

28  employees shall hold an election of the firefighters, or

29  firefighters and police officers, if included, to determine

30  whether a plan is to be established for firefighters only, or

31  for firefighters and police officers where included.  Based on


                                  15

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  the election results, a new board shall be established as

  2  provided in subparagraph 1. or subparagraph 2., as

  3  appropriate. The municipality or fire control district shall

  4  enact an ordinance or resolution to implement the new board by

  5  October 1, 1999. The newly established board shall take

  6  whatever action is necessary to determine the amount of assets

  7  which is attributable to firefighters, or firefighters and

  8  police officers where included.  Such assets shall include all

  9  employer, employee, and state contributions made by or on

10  behalf of firefighters, or firefighters and police officers

11  where included, and any investment income derived from such

12  contributions.  All such moneys shall be transferred into the

13  newly established retirement plan, as directed by the board.

14

15  With respect to any board of trustees operating a local law

16  plan on June 30, 1986, nothing in this paragraph shall permit

17  the reduction of the membership percentage of firefighters, or

18  of firefighters and police officers where a joint or mixed

19  fund exists. The board of trustees shall meet at least

20  quarterly each year.  Each board of trustees shall be a legal

21  entity with, in addition to other powers and responsibilities

22  contained herein, the power to bring and defend lawsuits of

23  every kind, nature, and description.

24         (2)  The trustees shall by a majority vote elect from

25  their number a chair and a secretary.  The secretary of the

26  board shall keep a complete minute book of the actions,

27  proceedings, or hearings of the board.  The trustees shall not

28  receive any compensation as such, but may receive expenses and

29  per diem as provided by Florida law.

30         (3)  The board of trustees shall meet at least

31  quarterly each year.


                                  16

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (4)  Each board of trustees shall be a legal entity

  2  with, in addition to other powers and responsibilities

  3  contained herein, the power to bring and defend lawsuits of

  4  every kind, nature, and description.

  5         (5)  In any judicial proceeding or administrative

  6  proceeding under chapter 120 brought under or pursuant to the

  7  provisions of this chapter, the prevailing party shall be

  8  entitled to recover the costs thereof, together with

  9  reasonable attorney's fees.

10         (6)  The provisions of this section may not be altered

11  by a participating municipality or special fire control

12  district operating a chapter plan or local law plan under this

13  chapter.

14         Section 6.  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.


                                  17

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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.


                                  18

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 7.  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


                                  19

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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


                                  20

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 8.  Section 175.101, Florida Statutes, is

31  amended to read:


                                  21

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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.  Whenever the boundaries of a special

25  fire control district that has lawfully established a

26  firefighters' pension trust fund encompass a portion of the

27  corporate territory of a municipality that has also lawfully

28  established a firefighters' pension trust fund, that portion

29  of the tax receipts attributable to insurance policies

30  covering property situated both within the municipality and

31  the special fire control district shall be given to the fire


                                  22

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  service provider.  The agent shall identify the fire service

  2  provider on the property owner's application for insurance.

  3  Remaining revenues collected pursuant to this chapter shall be

  4  distributed to the municipality or special fire control

  5  district according to the location of the insured property.

  6         (2)  In the case of multiple peril policies with a

  7  single premium for both the property and casualty coverages in

  8  such policies, 70 percent of such premium shall be used as the

  9  basis for the 1.85-percent tax.

10         (3)  This excise tax shall be payable annually on March

11  1 of each year after the passage of an ordinance, in the case

12  of a municipality, or resolution, in the case of a special

13  fire control district, assessing and imposing the tax

14  authorized by this section.  Installments of taxes shall be

15  paid according to the provision of s. 624.5092(2)(a), (b), and

16  (c).

17         Section 9.  Section 175.111, Florida Statutes, is

18  amended to read:

19         175.111  Certified copy of ordinance or resolution

20  filed; insurance companies' annual report of premiums;

21  duplicate files; book of accounts.--For any municipality,

22  special fire control district, chapter plan, local law

23  municipality, local law special fire control district, or

24  local law plan under this chapter, whenever any municipality

25  passes an ordinance, or whenever any special fire control

26  district passes a resolution establishing a chapter plan or

27  local law plan, assessing and imposing the taxes authorized in

28  s. 175.101, a certified copy of such ordinance or resolution

29  shall be deposited with the division. Thereafter every

30  insurance company, association, corporation, or other insurer

31  carrying on the business of property insurance on real or


                                  23

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  personal property, on or before the succeeding March 1 after

  2  date of the passage of the ordinance or resolution, shall

  3  report fully in writing and under oath to the division and the

  4  Department of Revenue a just and true account of all premiums

  5  by such insurer received for property insurance policies

  6  covering or insuring any real or personal property located

  7  within the corporate limits of each such municipality or

  8  special fire control district during the period of time

  9  elapsing between the date of the passage of the ordinance or

10  resolution and the end of the calendar year succeeding March

11  1.  The report shall include the code designation as

12  prescribed by the division for each piece of insured property,

13  real or personal, located within the corporate limits of each

14  municipality and within the legally defined boundaries of each

15  special fire control district.  The aforesaid insurer shall

16  annually thereafter, on March 1, file with the division and

17  the Department of Revenue a similar report covering the

18  preceding year's premium receipts, and every such insurer at

19  the same time of making such reports shall pay to the

20  Department of Revenue the amount of the tax hereinbefore

21  mentioned.  Every insurer engaged in carrying on such

22  insurance business in the state shall keep accurate books of

23  accounts of all such business done by it within the corporate

24  limits of each such municipality and within the legally

25  defined boundaries of each such special fire control district,

26  and in such manner as to be able to comply with the provisions

27  of this chapter.  Based on the insurers' reports of premium

28  receipts, the division shall prepare a consolidated premium

29  report and shall furnish to any municipality or special fire

30  control district requesting the same a copy of the relevant

31  section of that report.


                                  24

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 10.  Section 175.121, Florida Statutes, is

  2  amended to read:

  3         175.121  Department of Revenue and Division of

  4  Retirement to keep accounts of deposits; disbursements.--For

  5  any municipality or special fire control district having a

  6  chapter or local law plan established pursuant to this

  7  chapter:

  8         (1)  The Department of Revenue shall keep a separate

  9  account of all moneys collected for each municipality and each

10  special fire control district under the provisions of this

11  chapter. All moneys so collected must be transferred to the

12  Police and Firefighters' Premium Tax Trust Fund and shall be

13  separately accounted for by the division. The moneys budgeted

14  as necessary to pay the expenses of the division for the daily

15  oversight and monitoring of the firefighters' pension plans

16  under this chapter and for the oversight and actuarial reviews

17  conducted under part VII of chapter 112 are annually

18  appropriated from the interest and investment income earned on

19  the moneys collected for each municipality or special fire

20  control district and deposited in the Police and Firefighters'

21  Premium Tax Trust Fund.  Interest and investment income

22  remaining thereafter in the trust fund which is unexpended and

23  otherwise unallocated by law shall revert to the General

24  Revenue Fund on June 30 of each year.

25         (2)  The Comptroller shall, on or before July 1 June 1

26  of each year, and at such other times as authorized by the

27  division, draw his or her warrants on the full net amount of

28  money then on deposit in the Police and Firefighters' Premium

29  Tax Trust Fund pursuant to this chapter, specifying the

30  municipalities and special fire control districts to which the

31  moneys must be paid and the net amount collected for and to be


                                  25

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  paid to each municipality or special fire control district,

  2  respectively, subject to the limitation on disbursement under

  3  s. 175.122. The sum payable to each municipality or special

  4  fire control district is appropriated annually out of the

  5  Police and Firefighters' Premium Tax Trust Fund. The warrants

  6  of the Comptroller shall be payable to the respective

  7  municipalities and special fire control districts entitled to

  8  receive them and shall be remitted annually by the division to

  9  the respective municipalities and special fire control

10  districts.  In lieu thereof, the municipality or special fire

11  control district may provide authorization to the division for

12  the direct payment of the premium tax to the board of

13  trustees. In order for a municipality or special fire control

14  district and its pension fund to participate in the

15  distribution of premium tax moneys under this chapter, all the

16  provisions shall be complied with annually, including state

17  acceptance pursuant to part VII of chapter 112.

18         (3)(a)  All moneys not distributed to municipalities

19  and special fire control districts under this section as a

20  result of the limitation on disbursement contained in s.

21  175.122, or as a result of any municipality or special fire

22  control district not having qualified in any given year, or

23  portion thereof, shall be transferred to the Firefighters'

24  Supplemental Compensation Trust Fund administered by the

25  Department of Revenue, as provided in s. 633.382.

26         (b)1.  Moneys transferred under paragraph (a) but not

27  needed to support the supplemental compensation program in a

28  given year shall be redistributed pro rata to those

29  participating municipalities and special fire control

30  districts that transfer any portion of their funds to support

31  the supplemental compensation program in that year.  Such


                                  26

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 11.  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 12.  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


                                  27

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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.  In

  9  lieu thereof, the municipality or special fire control

10  district may provide authorization to the division for the

11  direct payment of the premium tax to the board of trustees.

12  The board shall deposit such moneys in the Firefighters'

13  Pension Trust Fund immediately, and under no circumstances

14  more than 5 days after receipt.  Employee contributions,

15  however, which are withheld by the employer on behalf of an

16  employee member shall be deposited immediately after each pay

17  period with the board of trustees of the firefighters' pension

18  trust fund at least monthly. Employer contributions shall be

19  deposited at least quarterly.

20         Section 13.  Section 175.141, Florida Statutes, is

21  amended to read:

22         175.141  Payment of excise tax credit on similar state

23  excise or license tax.--The tax herein authorized to be

24  imposed by each municipality and each special fire control

25  district shall in nowise be in addition to any similar state

26  excise or license tax imposed by part IV of chapter 624, but

27  the payor of the tax hereby authorized shall receive credit

28  therefor on his or her said state excise or license tax and

29  the balance of said state excise or license tax shall be paid

30  to the Department of Revenue Insurance Commissioner and

31  Treasurer as is now provided by law.


                                  28

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 14.  Section 175.151, Florida Statutes, is

  2  amended to read:

  3         175.151  Penalty for failure of insurers to comply with

  4  this act.--Should any insurance company, corporation or other

  5  insurer fail to comply with the provisions of this act, on or

  6  before March 1 of each year as herein provided, the

  7  certificate of authority issued to said insurance company,

  8  corporation or other insurer to transact business in this

  9  state may be canceled and revoked by the Department of

10  Insurance, and it is unlawful for any such insurance company,

11  corporation, or other insurer to transact business thereafter

12  in this state unless such insurance company, corporation, or

13  other insurer shall be granted a new certificate of authority

14  to transact any business in this state, in compliance with

15  provisions of law authorizing such certificate of authority to

16  be issued. The division is responsible for notifying the

17  Department of Insurance regarding any such failure to comply.

18         Section 15.  Section 175.152, Florida Statutes, is

19  repealed.

20         Section 16.  Section 175.162, Florida Statutes, is

21  amended to read:

22         175.162  Requirements for retirement.--For any

23  municipality, special fire control district, chapter plan,

24  local law municipality, local law special fire control

25  district, or local law plan under this chapter, any

26  firefighter who completes 10 or more years of creditable

27  service as a firefighter and attains age 55, or completes 25

28  years of creditable service as a firefighter and attains age

29  52, and who for such minimum period has been a member of the

30  firefighters' pension trust fund operating under a chapter

31  plan or local law plan, is eligible for normal retirement


                                  29

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  benefits. Normal retirement under the plan is retirement from

  2  the service of the municipality or special fire control

  3  district on or after the normal retirement date.  In such

  4  event, payment of retirement income will be governed by the

  5  following provisions of this section:

  6         (1)  The normal retirement date of each firefighter

  7  will be the first day of the month coincident with or next

  8  following the date on which he or she has completed 10 or more

  9  years of creditable service and attained age 55 or completed

10  25 years of creditable service and attained age 52.

11         (2)(a)  The amount of monthly retirement income payable

12  to a full-time firefighter who retires on or after his or her

13  normal retirement date shall be an amount equal to the number

14  of his or her years of credited service multiplied by 2

15  percent of his or her average final compensation as a

16  full-time firefighter. The retirement income shall be reduced

17  for moneys received under the disability provisions of this

18  chapter. However, if current state contributions pursuant to

19  this chapter are not adequate to fund the additional benefits

20  to meet the minimum requirements in this chapter, only such

21  incremental increases shall be required as state moneys are

22  adequate to provide.  Such increments shall be provided as

23  state moneys become available.

24         (b)  The amount of monthly retirement income payable to

25  a volunteer firefighter who retires on or after his or her

26  normal retirement date shall be an amount equal to the number

27  of his or her years of credited service multiplied by 2

28  percent of his or her average final compensation as a

29  volunteer firefighter.  If the firefighter has been

30  contributing only 3 percent of his or her salary, the

31  firefighter's monthly retirement income shall be an amount


                                  30

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  equal to the number of his or her years of credited service

  2  multiplied by 1.2 percent of his or her average final

  3  compensation.

  4         (3)  The monthly retirement income payable in the event

  5  of normal retirement will be payable on the first day of each

  6  month.  The first payment will be made on the firefighter's

  7  normal retirement date, or on the first day of the month

  8  coincident with or next following his or her actual

  9  retirement, if later, and the last payment will be the payment

10  due next preceding the firefighter's death; except that, in

11  the event the firefighter dies after retirement but before he

12  or she has received retirement benefits for a period of 10

13  years, the same monthly benefit will be paid to the

14  beneficiary (or beneficiaries) as designated by the

15  firefighter for the balance of such 10-year period.  If a

16  firefighter continues in the service of the municipality or

17  special fire control district beyond his or her normal

18  retirement date and dies prior to his or her date of actual

19  retirement, without an option made pursuant to s. 175.171

20  being in effect, monthly retirement income payments will be

21  made for a period of 10 years to a beneficiary (or

22  beneficiaries) designated by the firefighter as if the

23  firefighter had retired on the date on which his or her death

24  occurred.

25         (4)  Early retirement under the plan is retirement from

26  the service of the municipality or special fire control

27  district, with the consent of the municipality or special fire

28  control district, as of the first day of any calendar month

29  which is prior to the firefighter's normal retirement date but

30  subsequent to the date as of which he or she has both attained

31  the age of 50 years and has been a member of this fund for 10


                                  31

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  continuous years.  In the event of early retirement, payment

  2  of retirement income shall be governed as follows:  The

  3  monthly amount of retirement income payable to a firefighter

  4  who retires prior to his or her normal retirement date shall

  5  be in the amount computed as described in subsection (2),

  6  taking into account the firefighter's credited service to his

  7  or her date of actual retirement and final monthly

  8  compensation as of such date, such amount of retirement income

  9  to be actuarially reduced to take into account the

10  firefighter's younger age and the earlier commencement of

11  retirement income benefits.  The amount of monthly income

12  payable in the event of early retirement will be paid in the

13  same manner as in subsection (3).  In no event shall the early

14  retirement reduction exceed 3 percent for each year by which

15  the member's age at retirement preceded the member's normal

16  retirement age, as provided in subsection (1).

17         Section 17.  Section 175.171, Florida Statutes, is

18  amended to read:

19         175.171  Optional forms of retirement income.--For any

20  municipality, special fire control district, chapter plan,

21  local law municipality, local law special fire control

22  district, or local law plan under this chapter:

23         (1)  In lieu of the amount and form of retirement

24  income payable in the event of normal or early retirement as

25  specified in s. 175.162, a firefighter, upon written request

26  to the board of trustees and submission of evidence of good

27  health (except that such evidence will not be required if such

28  request is made at least 3 years prior to the date of

29  commencement of retirement income or if such request is made

30  within 6 months following the effective date of the plan, if

31  later), and subject to the approval of the board of trustees,


                                  32

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  may elect to receive a retirement income or benefit of

  2  equivalent actuarial value payable in accordance with one of

  3  the following options:

  4         (a)  A retirement income of larger monthly amount,

  5  payable to the firefighter for his or her lifetime only.

  6         (b)  A retirement income of a modified monthly amount,

  7  payable to the firefighter during the joint lifetime of the

  8  firefighter and a dependent joint pensioner designated by the

  9  firefighter, and following the death of either of them, 100

10  percent, 75 percent, 66 2/3  percent, or 50 percent of such

11  monthly amounts payable to the survivor for the lifetime of

12  the survivor.

13         (c)  Such other amount and form of retirement payments

14  or benefits as, in the opinion of the board of trustees, will

15  best meet the circumstances of the retiring firefighter.

16         1.  The firefighter upon electing any option of this

17  section will designate the joint pensioner or beneficiary (or

18  beneficiaries) to receive the benefit, if any, payable under

19  the plan in the event of his or her death, and will have the

20  power to change such designation from time to time, but any

21  such change shall be deemed a new election and will be subject

22  to approval by the board of trustees.  Such designation will

23  name a joint pensioner or one or more primary beneficiaries

24  where applicable. If a firefighter has elected an option with

25  a joint pensioner or beneficiary and his or her retirement

26  income benefits have commenced, the firefighter may thereafter

27  change the designated joint pensioner or beneficiary, but only

28  if the board of trustees consents to such change and if the

29  joint pensioner last previously designated by the firefighter

30  is alive when the firefighter files with the board of trustees

31  a request for such change.


                                  33

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         2.  The consent of a firefighter's joint pensioner or

  2  beneficiary to any such change shall not be required.

  3         3.  The board of trustees may request such evidence of

  4  the good health of the joint pensioner that is being removed

  5  as it may require and the amount of the retirement income

  6  payable to the firefighter upon designation of a new joint

  7  pensioner shall be actuarially redetermined taking into

  8  account the age and sex of the former joint pensioner, the new

  9  joint pensioner, and the firefighter.  Each such designation

10  will be made in writing on a form prepared by the board of

11  trustees and on completion will be filed with the board of

12  trustees.  In the event that no designated beneficiary

13  survives the firefighter, such benefits as are payable in the

14  event of the death of the firefighter subsequent to his or her

15  retirement shall be paid as provided in s. 175.181.

16         (2)  Retirement income payments shall be made under the

17  option elected in accordance with the provisions of this

18  section and shall be subject to the following limitations:

19         (a)  If a firefighter dies prior to his or her normal

20  retirement date or early retirement date, whichever first

21  occurs, no retirement benefit will be payable under the option

22  to any person, but the benefits, if any, will be determined

23  under s. 175.201.

24         (b)  If the designated beneficiary (or beneficiaries)

25  or joint pensioner dies before the firefighter's retirement

26  under the plan, the option elected will be canceled

27  automatically and a retirement income of the normal form and

28  amount will be payable to the firefighter upon retirement as

29  if the election had not been made, unless a new election is

30  made in accordance with the provisions of this section or a

31  new beneficiary is designated by the firefighter prior to


                                  34

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  retirement and within 90 days after the death of the

  2  beneficiary.

  3         (c)  If both the retired firefighter and the

  4  beneficiary (or beneficiaries) designated by him or her die

  5  before the full payment has been effected under any option

  6  providing for payments for a period certain and life

  7  thereafter, made pursuant to the provisions of paragraph

  8  (1)(c), the board of trustees may, in its discretion, direct

  9  that the commuted value of the remaining payments be paid in a

10  lump sum and in accordance with s. 175.181.

11         (d)  If a firefighter continues beyond his or her

12  normal retirement date pursuant to the provisions of s.

13  175.162(1) and dies prior to actual retirement and while an

14  option made pursuant to the provisions of this section is in

15  effect, monthly retirement income payments will be made, or a

16  retirement benefit will be paid, under the option to a

17  beneficiary (or beneficiaries) designated by the firefighter

18  in the amount or amounts computed as if the firefighter had

19  retired under the option on the date on which death occurred.

20         (3)  No firefighter may make any change in his or her

21  retirement option after the date of cashing or depositing the

22  first retirement check.

23         Section 18.  Section 175.181, Florida Statutes, is

24  amended to read:

25         175.181  Beneficiaries.--For any municipality, special

26  fire control district, chapter plan, local law municipality,

27  local law special fire control district, or local law plan

28  under this chapter:

29         (1)  Each firefighter may, on a form provided for that

30  purpose, signed and filed with the board of trustees,

31  designate a choice of one or more persons, named sequentially


                                  35

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  or jointly, as his or her beneficiary (or beneficiaries) to

  2  receive the benefit, if any, which may be payable in the event

  3  of his or her death; and each designation may be revoked by

  4  such firefighter by signing and filing with the board of

  5  trustees a new designation-of-beneficiary form.

  6         (2)  If no beneficiary is named in the manner provided

  7  by subsection (1), or if no beneficiary designated by the

  8  member survives him, a deceased firefighter fails to name a

  9  beneficiary in the manner prescribed in subsection (1), or if

10  the beneficiary (or beneficiaries) named by a deceased

11  firefighter predecease the firefighter, the death benefit, if

12  any, which may be payable under the plan with respect to such

13  deceased firefighter shall may be paid by, in the discretion

14  of the board of trustees, either to the estate of such

15  deceased firefighter, provided that the board of trustees, in

16  its discretion, may direct that the commuted value of the

17  remaining monthly income payments be paid in a lump sum.:

18

19  Any payment made to any person pursuant to this subsection

20  shall operate as a complete discharge of all obligations under

21  the plan with regard to the deceased firefighter and any other

22  persons with rights under the plan and shall not be subject to

23  review by anyone but shall be final, binding, and conclusive

24  on all persons ever interested hereunder.

25         (a)  The spouse or dependent children of the

26  firefighter; or

27         (b)  The dependent living parents of the firefighter.

28         (3)  Notwithstanding any other provision of law to the

29  contrary, the surviving spouse of any pension participant

30  member killed in the line of duty shall not lose survivor

31  retirement benefits if the spouse remarries. The surviving


                                  36

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  spouse of such deceased member whose benefit terminated

  2  because of remarriage shall have the benefit reinstated as of

  3  July 1, 1994, at an amount that would have been payable had

  4  such benefit not been terminated. This paragraph shall apply

  5  to all municipalities which receive state excise tax moneys as

  6  provided in s. 175.101.

  7         Section 19.  Section 175.191, Florida Statutes, is

  8  amended to read:

  9         175.191  Disability retirement.--For any municipality,

10  special fire control district, chapter plan, local law

11  municipality, local law special fire control district, or

12  local law plan under this chapter:

13         (1)  A firefighter having 10 or more continuous years

14  of credited service or a firefighter who becomes totally and

15  permanently disabled in the line of duty, regardless of length

16  of service, and having contributed to the firefighters'

17  pension trust fund for 10 years or more may retire from the

18  service of the municipality or special fire control district

19  under the plan if, prior to his or her normal retirement date,

20  the firefighter becomes totally and permanently disabled as

21  defined in subsection (2) by reason of any cause other than a

22  cause set out in subsection (3) on or after the effective date

23  of the plan.  Such retirement shall herein be referred to as

24  "disability retirement."  The provisions for disability other

25  than line-of-duty disability shall not apply to a member who

26  has reached early or normal retirement age.

27         (2)  A firefighter will be considered totally disabled

28  if, in the opinion of the board of trustees, he or she is

29  wholly prevented from rendering useful and efficient service

30  as a firefighter; and a firefighter will be considered

31  permanently disabled if, in the opinion of the board of


                                  37

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  trustees, he or she is likely to remain so disabled

  2  continuously and permanently from a cause other than is

  3  specified in subsection (3).

  4         (3)  A firefighter will not be entitled to receive any

  5  disability retirement income if the disability is a result of:

  6         (a)  Excessive and habitual use by the firefighter of

  7  drugs, intoxicants, or narcotics;

  8         (b)  Injury or disease sustained by the firefighter

  9  while willfully and illegally participating in fights, riots,

10  or civil insurrections or while committing a crime;

11         (c)  Injury or disease sustained by the firefighter

12  while serving in any armed forces; or

13         (d)  Injury or disease sustained by the firefighter

14  after his or her employment has terminated.

15         (4)  No firefighter shall be permitted to retire under

16  the provisions of this section until he or she is examined by

17  a duly qualified physician or surgeon, to be selected by the

18  board of trustees for that purpose, and is found to be

19  disabled in the degree and in the manner specified in this

20  section.  Any firefighter retiring under this section may

21  shall be examined periodically by a duly qualified physician

22  or surgeon or board of physicians and surgeons, to be selected

23  by the board of trustees for that purpose, to determine if

24  such disability has ceased to exist.

25         (5)  The benefit benefits payable to a firefighter who

26  retires from the service of a municipality or special fire

27  control district due to total and permanent disability as a

28  direct result of a disability commencing prior to his or her

29  normal retirement date is the monthly income payable for 10

30  years certain and life for which, if the firefighter's

31  disability occurred in the line of duty, his or her monthly


                                  38

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  benefit shall be the accrued retirement benefit, but shall not

  2  be less than 42 percent of his or her average monthly salary

  3  at the time of disability.  If after 10 years of service the

  4  disability is other than in the line of duty, the

  5  firefighter's monthly benefit shall be the accrued normal

  6  retirement benefit, but shall not be less than 25 percent of

  7  his or her average monthly salary at the time of disability.

  8         (6)  The monthly retirement income to which a

  9  firefighter is entitled in the event of his or her disability

10  retirement shall be payable on the first day of the first

11  month after the board of trustees determines such entitlement.

12  However, the monthly retirement income shall be payable as of

13  the date the board determines such entitlement, and any

14  portion due for a partial month shall be paid together with

15  the first payment.  The last payment will be, if the

16  firefighter recovers from the disability prior to his or her

17  normal retirement date, the payment due next preceding the

18  date of such recovery or, if the firefighter dies without

19  recovering from the disability, the payment due next preceding

20  his or her death or the 120th monthly payment, whichever is

21  later. In lieu of the benefit payment as provided in this

22  paragraph, a firefighter may select an optional form as

23  provided in s. 175.171. Any monthly retirement income payments

24  due after the death of a disabled firefighter shall be paid to

25  the firefighter's designated beneficiary (or beneficiaries) as

26  provided in ss. 175.181 and 175.201.

27         (7)  If the board of trustees finds that a firefighter

28  who is receiving a disability retirement income is, at any

29  time prior to his or her normal retirement date, no longer

30  disabled, as provided herein, the board of trustees shall

31  direct that the disability retirement income be discontinued.


                                  39

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  "Recovery from disability" as used herein means the ability of

  2  the firefighter to render useful and efficient service as a

  3  firefighter.

  4         (8)  If the firefighter recovers from disability and

  5  reenters the service as a firefighter, service will be deemed

  6  to have been continuous, but the period beginning with the

  7  first month for which he or she received a disability

  8  retirement income payment and ending with the date he or she

  9  reentered the service may will not be considered as credited

10  service for the purpose of this plan.

11         Section 20.  Section 175.195, Florida Statutes, is

12  created to read:

13         175.195  False, misleading, or fraudulent statements

14  made to obtain public retirement benefits prohibited;

15  penalty.--

16         (1)  It is unlawful for a person to willfully and

17  knowingly make, or cause to be made, or to assist, conspire

18  with, or urge another to make, or cause to be made, any false,

19  fraudulent, or misleading oral or written statement or

20  withhold or conceal material information to obtain any benefit

21  available under a retirement plan receiving funding under this

22  chapter.

23         (2)(a)  A person who violates subsection (1) commits a

24  misdemeanor of the first degree, punishable as provided in s.

25  775.082 or s. 775.083.

26         (b)  In addition to any applicable criminal penalty,

27  upon conviction for a violation described in subsection (1), a

28  participant or beneficiary of a pension plan receiving funding

29  under this chapter may, in the discretion of the board of

30  trustees, be required to forfeit the right to receive any or

31  all benefits to which the person would otherwise be entitled


                                  40

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  under this chapter.  For purposes of this paragraph,

  2  "conviction" means a determination of guilt that is the result

  3  of a plea or trial, regardless of whether adjudication is

  4  withheld.

  5         Section 21.  Section 175.201, Florida Statutes, is

  6  amended to read:

  7         175.201  Death prior to retirement; refunds of

  8  contributions; death benefits.--For any municipality, special

  9  fire control district, chapter plan, local law municipality,

10  local law special fire control district, or local law plan

11  under this chapter:

12         (1)  If a firefighter dies before being eligible to

13  retire under the provisions of this act, the heirs, legatees,

14  beneficiaries, or personal representatives of such deceased

15  firefighter shall be entitled to a refund of 100 percent,

16  without interest, of the contributions made to the

17  firefighters' pension trust fund by such deceased firefighter

18  or, in the event an annuity or life insurance contract has

19  been purchased by the board of trustees on such firefighter,

20  then to the death benefits available under such life insurance

21  or annuity contract subject to the limitations on such death

22  benefits set forth in s. 175.081, whichever amount is greater.

23         (2)  If a firefighter having at least 10 years of

24  credited service dies prior to retirement but has at least 10

25  years of contributing service, his or her beneficiary is

26  entitled to the benefits otherwise payable to the firefighter

27  at early or normal retirement age.

28

29  In the event that the death benefit paid by a life insurance

30  company exceeds the limit set forth in s. 175.081, the excess

31  of the death benefit over the limit shall be paid to the


                                  41

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  firefighters' pension trust fund. However, death the benefits

  2  as provided pursuant to in s. 112.191 or any other state or

  3  federal law shall not be included in the calculation of as

  4  death or retirement benefits provided under this the

  5  provisions of chapter 86-41, Laws of Florida.

  6         Section 22.  Section 175.211, Florida Statutes, is

  7  amended to read:

  8         175.211  Separation from service; refunds.--For any

  9  municipality, special fire control district, chapter plan,

10  local law municipality, local law special fire control

11  district, or local law plan under this chapter:

12         (1)  If a firefighter leaves the service of the

13  municipality or special fire control district before

14  accumulating aggregate time of 10 years toward retirement and

15  before being eligible to retire under the provisions of this

16  chapter, the firefighter shall be entitled to a refund of all

17  of his or her contributions made to the firefighters' pension

18  trust fund after July 1, 1963, without interest, less any

19  disability benefits paid to him or her after July 1, 1963.

20         (2)  If a firefighter who has been in the service of

21  the municipality or special fire control district for at least

22  10 years and has contributed to the firefighters' pension

23  trust fund for at least 10 years elects to leave his or her

24  accrued contributions, if contributions are required, in the

25  firefighters' pension trust fund, such firefighter upon

26  attaining the age of 50 years may retire at the actuarial

27  equivalent of the amount of such retirement income otherwise

28  payable to him or her, as provided in s. 175.162(4), or upon

29  attaining age 55 years may retire as provided in s.

30  175.162(1).

31


                                  42

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 23.  Section 175.221, Florida Statutes, is

  2  amended to read:

  3         175.221  Lump-sum payment of small retirement

  4  income.--For any municipality, special fire control district,

  5  chapter plan, local law municipality, local law special fire

  6  control district, or local law plan under this chapter,

  7  notwithstanding any provisions of the plan to the contrary, if

  8  the monthly retirement income payable to any person entitled

  9  to benefits hereunder is less than $100 $30, or if the

10  single-sum value of the accrued retirement income is less than

11  $5,000 $750, as of the date of retirement or termination of

12  service, whichever is applicable, the board of trustees, in

13  the exercise of its discretion, may specify that the actuarial

14  equivalent of such retirement income be paid in a lump sum.

15         Section 24.  Section 175.231, Florida Statutes, is

16  amended to read:

17         175.231  Diseases of firefighters suffered in line of

18  duty; presumption.--For any municipality, special fire control

19  district, chapter plan, local law municipality, local law

20  special fire control district, or local law plan under this

21  chapter, any condition or impairment of health of a

22  firefighter caused by tuberculosis, hypertension, or heart

23  disease resulting in total or partial disability or death

24  shall be presumed to have been accidental and suffered in the

25  line of duty unless the contrary is shown by competent

26  evidence, provided that, such firefighter shall have

27  successfully passed a physical examination before entering

28  into such service, which examination failed to reveal any

29  evidence of such condition.  This section shall be applicable

30  to all firefighters employed in Florida only with reference to

31  pension and retirement benefits under this chapter.


                                  43

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 25.  Section 175.241, Florida Statutes, is

  2  amended to read:

  3         175.241  Exemption from execution.--For any

  4  municipality, special fire control district, chapter plan,

  5  local law municipality, local law special fire control

  6  district, or local law plan under this chapter, the pensions,

  7  annuities, or other benefits accrued or accruing to any person

  8  under any chapter plan or local law plan under the provisions

  9  of this chapter act and the accumulated contributions and the

10  cash securities in the funds created under this chapter act

11  are hereby exempted from any state, county, or municipal tax

12  and shall not be subject to execution or attachment or to any

13  legal process whatsoever, and shall be unassignable.

14         Section 26.  Section 175.251, Florida Statutes, is

15  repealed.

16         Section 27.  Section 175.261, Florida Statutes, is

17  amended to read:

18         175.261  Annual report to Division of Retirement;

19  actuarial valuations reports.--For any municipality, special

20  fire control district, chapter plan, local law municipality,

21  local law special fire control district, or local law plan

22  under this chapter, the board of trustees for every chapter

23  plan and local law plan shall submit the following reports to

24  the division:

25         (1)  With respect to chapter plans:

26         (a)  Each year, by February 1, the chair or secretary

27  of the board of trustees of each firefighters' pension trust

28  fund operating under a chapter plan shall file a report with

29  the division which contains:

30

31


                                  44

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         1.(a)  A statement of whether in fact the municipality

  2  or special fire control district is within the provisions of

  3  s. 175.041.

  4         2.(b)  An independent audit by a certified public

  5  accountant if the fund has $250,000 $100,000 or more in

  6  assets, or a certified statement of accounting if the fund has

  7  less than $250,000 $100,000 or more in assets, for the most

  8  recent plan fiscal year of the municipality or special fire

  9  control district, showing a detailed listing of assets and

10  methods used to value them and a statement of all income and

11  disbursements during the year.  Such income and disbursements

12  shall be reconciled with the assets at the beginning of and

13  end of the year.

14         3.(c)  A statistical exhibit showing the total number

15  of firefighters on the force, the number included in the

16  retirement plan and the number ineligible, classified

17  according to the reason for their being ineligible, and the

18  number of disabled firefighters and retired firefighters and

19  their beneficiaries receiving pension payments and the amounts

20  of annual retirement income or pension payments being received

21  by them.

22         4.(d)  A statement of the amount the municipality or

23  special fire control district, or other income source, has

24  contributed to the retirement fund for the most recent plan

25  fiscal year and the amount the municipality or special fire

26  control district will contribute to the retirement fund during

27  its current plan fiscal year.

28         5.(e)  If any benefits are insured with a commercial

29  insurance company, the report should include a statement of

30  the relationship of the insured benefits to the benefits

31  provided by this chapter as well as the name of the insurer


                                  45

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  and information about the basis of premium rates, mortality

  2  table, interest rates, and method used in valuing retirement

  3  benefits.

  4         (b)(2)  In addition to annual reports provided under

  5  paragraph (a), by February 1 of each triennial year, an

  6  actuarial valuation of the chapter plan must be made by the

  7  division at least once every 3 years, as provided in s.

  8  112.63, commencing 3 years from the last actuarial valuation

  9  of the plan or system for existing plans, or commencing 3

10  years from issuance of the initial actuarial impact statement

11  submitted under s. 112.63 for newly created plans. 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, To that

16  end, the chair of the board of trustees for each firefighters'

17  pension trust fund operating under a chapter plan shall report

18  to the division such data as that it needs to complete an

19  actuarial valuation of each fund. The forms for each

20  municipality and special fire control district shall be

21  supplied by the division.  The expense of this actuarial

22  valuation shall be borne by the firefighters' pension trust

23  fund established by ss. 175.041 and 175.121. The requirements

24  of this section are supplemental to the actuarial valuations

25  necessary to comply 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 or special fire control district to receive a

31  share of the state funds for the then-current calendar year:


                                  46

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  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 material.

  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  firefighters, the number included in the plan, and the number

18  ineligible classified according to the reasons for their being

19  ineligible, and the number of disabled and retired

20  firefighters 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  special fire control district, or other income source, has


                                  47

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  contributed toward the plan for the most recent plan year and

  2  will contribute toward the plan for 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 firefighters' retirement fund or by the

21  sponsoring municipality or special fire control district.

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 valuation.  If

25  any benefits are insured with a commercial insurance company,

26  the report must include a statement of the relationship of the

27  retirement plan benefits to the insured benefits, the name of

28  the insurer, the basis of premium rates, and the mortality

29  table, interest rate, and method used in valuing the

30  retirement benefits.

31


                                  48

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 28.  Section 175.291, Florida Statutes, is

  2  repealed.

  3         Section 29.  Section 175.301, Florida Statutes, is

  4  amended to read:

  5         175.301  Depository for pension funds.--For any

  6  municipality, special fire control district, chapter plan,

  7  local law municipality, local law special fire control

  8  district, or local law plan under this chapter, all funds and

  9  securities of the firefighters' pension trust fund of any

10  chapter plan or local law plan under this chapter may be

11  deposited by the board of trustees with the treasurer of the

12  municipality or special fire control district, acting in a

13  ministerial capacity only, who shall be liable in the same

14  manner and to the same extent as he or she is liable for the

15  safekeeping of funds for the municipality or special fire

16  control district. However, any funds and securities so

17  deposited with the treasurer of the municipality or special

18  fire control district shall be kept in a separate fund by the

19  treasurer or clearly identified as such funds and securities

20  of the firefighters' pension trust fund.  In lieu thereof, the

21  board of trustees shall deposit the funds and securities of

22  the firefighters' pension trust fund in a qualified public

23  depository as defined in s. 280.02, which depository with

24  regard to such funds and securities shall conform to and be

25  bound by all of the provisions of chapter 280.

26         Section 30.  Section 175.311, Florida Statutes, is

27  amended to read:

28         175.311  Municipalities, special fire control

29  districts, and boards independent of each other.--In the

30  enforcement and in the interpretation of the provisions of

31  this chapter for any municipality, special fire control


                                  49

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  district, chapter plan, local law municipality, local law

  2  special fire control district, or local law plan under this

  3  chapter, each municipality and each special fire control

  4  district shall be independent of any other municipality or

  5  special fire control district, and the board of trustees of

  6  the firefighters' pension trust fund of each municipality and

  7  each special fire control district shall function for the

  8  municipality or special fire control district that which it

  9  serves as trustee.  Each board of trustees shall be

10  independent of the municipality or special fire control

11  district for which it serves as board of trustees to the

12  extent required to accomplish the intent, requirements, and

13  responsibilities provided for in this chapter.

14         Section 31.  Section 175.321, Florida Statutes, is

15  repealed.

16         Section 32.  Section 175.331, Florida Statutes, is

17  repealed.

18         Section 33.  Section 175.333, Florida Statutes, is

19  amended to read:

20         175.333  Discrimination in benefit formula prohibited;

21  restrictions regarding designation of joint annuitants.--For

22  any municipality, special fire control district, chapter plan,

23  local law municipality, local law special fire control

24  district, or local law plan under this chapter:

25         (1)  No plan established under the provisions of this

26  chapter and participating in the distribution of premium tax

27  moneys as provided in this chapter shall discriminate in its

28  benefit formula based on color, national origin, sex, or

29  marital status.; however,

30         (2)(a)  If a plan offers a joint annuitant option and

31  the member selects such option, or if a the plan specifies


                                  50

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  that the member's spouse is to receive the benefits that which

  2  continue to be payable upon the death of the member, then, in

  3  both of these cases, after retirement the benefits have

  4  commenced, a retired member may change his or her designation

  5  of joint annuitant or beneficiary only twice.

  6         (b)  Any If said retired member who desires to change

  7  his or her joint annuitant or beneficiary, the member shall

  8  file with the board of trustees of his or her plan a notarized

  9  notice of such change either by registered letter or on such a

10  form as is provided by the administrator of the plan.  Upon

11  receipt of a completed change of joint annuitant form or such

12  other notice, the board of trustees shall adjust the member's

13  monthly benefit by the application of actuarial tables and

14  calculations developed to ensure that the benefit paid is the

15  actuarial equivalent of the present value of the member's

16  current benefit.  Nothing herein shall preclude a plan from

17  actuarially adjusting benefits or offering options based upon

18  sex, age, early retirement, or disability.

19         (3)  Eligibility for coverage under the plan must be

20  based upon length of service or attained age, or both and

21  benefits must be determined by a nondiscriminatory formula

22  based upon:

23         (a)  Length of service and compensation; or

24         (b)  Length of service.

25         Section 34.  Section 175.341, Florida Statutes, 1998

26  Supplement, is amended to read:

27         175.341  Duties of Division of Retirement; rulemaking

28  authority; investments by the State Board of Administration.--

29         (1)  The division shall be responsible for the daily

30  oversight and monitoring for actuarial soundness of the

31  firefighters' pension plans, whether chapter or local law


                                  51

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  plans, established under this chapter, for receiving and

  2  holding the premium tax moneys collected under this chapter,

  3  and, upon determining compliance with the provisions of this

  4  chapter, for disbursing those moneys to the firefighters'

  5  pension plans.  The funds necessary to pay expenses for such

  6  administration shall be annually appropriated from the

  7  interest and investment income earned on moneys deposited in

  8  the trust fund.

  9         (2)  The division has authority to adopt rules pursuant

10  to ss. 120.536(1) and 120.54 to implement the provisions of

11  this chapter.

12         (3)  The State Board of Administration shall invest and

13  reinvest the moneys in the trust fund collected under this

14  chapter in accordance with ss. 215.44-215.53.  Costs incurred

15  by the board in carrying out the provisions of this subsection

16  shall be deducted from the interest and investment income

17  accruing to the trust fund.

18         Section 35.  Section 175.351, Florida Statutes, is

19  amended to read:

20         (Substantial rewording of section.  See

21         s. 175.351, F.S., for present text.)

22         175.351  Municipalities and special fire control

23  districts having their own pension plans for

24  firefighters.--For any municipality, special fire control

25  district, local law municipality, local law special fire

26  control district, or local law plan under this chapter, in

27  order for municipalities and special fire control districts

28  with their own pension plans for firefighters, or for

29  firefighters and police officers, where included, to

30  participate in the distribution of the tax fund established

31


                                  52

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  pursuant to s. 175.101, local law plans must meet the minimum

  2  benefits and minimum standards set forth in this chapter.

  3         (1)  PREMIUM TAX INCOME.--If a municipality has a

  4  pension plan for firefighters, or a pension plan for

  5  firefighters and police officers, where included, which in the

  6  opinion of the division meets the minimum benefits and minimum

  7  standards set forth in this chapter, the board of trustees of

  8  the pension plan, as approved by a majority of firefighters of

  9  the municipality, may:

10         (a)  Place the income from the premium tax in s.

11  175.101 in such pension plan for the sole and exclusive use of

12  its firefighters, or for firefighters and police officers,

13  where included, where it shall become an integral part of that

14  pension plan and shall be used to pay extra benefits to the

15  firefighters included in that pension plan; or

16         (b)  Place the income from the premium tax in s.

17  175.101 in a separate supplemental plan to pay extra benefits

18  to firefighters, or to firefighters and police officers where

19  included, participating in such separate supplemental plan.

20

21  The premium tax provided by this chapter shall in all cases be

22  used in its entirety to provide extra benefits to

23  firefighters, or to firefighters and police officers, where

24  included.  However, local law plans in effect on October 1,

25  1998, shall be required to comply with the minimum benefit

26  provisions of this chapter only to the extent that additional

27  premium tax revenues become available to incrementally fund

28  the cost of such compliance as provided in s. 175.162(2)(a).

29  When a plan is in compliance with such minimum benefit

30  provisions, as subsequent additional premium tax revenues

31  become available, they shall be used to provide extra


                                  53

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  benefits. For the purpose of this chapter, "additional premium

  2  tax revenues" means revenues received by a municipality or

  3  special fire control district pursuant to s. 175.121 that

  4  exceed that amount received for calendar year 1997 and the

  5  term "extra benefits" means benefits in addition to or greater

  6  than those provided to general employees of the municipality.

  7  Local law plans created by special act before May 23, 1939,

  8  shall be deemed to comply with this chapter.

  9         (2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No

10  retirement plan or amendment to a retirement plan shall be

11  proposed for adoption unless the proposed plan or amendment

12  contains an actuarial estimate of the costs involved.  No such

13  proposed plan or proposed plan change shall be adopted without

14  the approval of the municipality, special fire control

15  district, or, where permitted, the Legislature. Copies of the

16  proposed plan or proposed plan change and the actuarial impact

17  statement of the proposed plan or proposed plan change shall

18  be furnished to the division prior to the last public hearing

19  thereon.  Such statement shall also indicate whether the

20  proposed plan or proposed plan change is in compliance with s.

21  14, Art. X of the State Constitution and those provisions of

22  part VII of chapter 112 which are not expressly provided in

23  this chapter.  Notwithstanding any other provision, only those

24  local law plans created by Special Act of legislation prior to

25  May 23, 1939, shall be deemed to meet the minimum benefits and

26  minimum standards only in this chapter. 

27         (3)  Notwithstanding any other provision, with respect

28  to any supplemental plan municipality:

29         (a)  Section 175.032(3)(a) shall not apply, and a local

30  law plan and a supplemental plan may continue to use their

31


                                  54

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  definition of compensation or salary in existence on the

  2  effective date of this act.

  3         (b)  Section 175.061(1)(b) shall not apply, and a local

  4  law plan and a supplemental plan shall continue to be

  5  administered by a board or boards of trustees numbered,

  6  constituted, and selected as the board or boards were

  7  numbered, constituted, and selected on January 1, 1997.

  8         (c)  The election set forth in paragraph (1)(b) shall

  9  be deemed to have been made.

10         (4)  The retirement plan setting forth the benefits and

11  the trust agreement, if any, covering the duties and

12  responsibilities of the trustees and the regulations of the

13  investment of funds must be in writing, and copies thereof

14  must be made available to the participants and to the general

15  public.

16         Section 36.  Section 175.361, Florida Statutes, is

17  amended to read:

18         175.361  Termination of plan and distribution of

19  fund.--For any municipality, special fire control district,

20  chapter plan, local law municipality, local law special fire

21  control district, or local law plan under this chapter, the

22  plan may be terminated by the municipality or special fire

23  control district.  Upon termination of the plan by the

24  municipality or special fire control district for any reason

25  or because of a transfer, merger, or consolidation of

26  governmental units, services, or functions as provided in

27  chapter 121, or upon written notice by the municipality or

28  special fire control district to the board of trustees that

29  contributions under the plan are being permanently

30  discontinued, the rights of all employees to benefits accrued

31  to the date of such termination and the amounts credited to


                                  55

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  the employees' accounts are nonforfeitable. The fund shall be

  2  apportioned and distributed in accordance with the following

  3  procedures:

  4         (1)  The board of trustees shall determine the date of

  5  distribution and the asset value to be distributed, after

  6  taking into account the expenses of such distribution.

  7         (2)  The board of trustees shall determine the method

  8  of distribution of the asset value, that is, whether

  9  distribution shall be by payment in cash, by the maintenance

10  of another or substituted trust fund, by the purchase of

11  insured annuities, or otherwise, for each firefighter entitled

12  to benefits under the plan as specified in subsection (3).

13         (3)  The board of trustees shall apportion the asset

14  value as of the date of termination in the manner set forth in

15  this subsection, on the basis that the amount required to

16  provide any given retirement income shall mean the actuarially

17  computed single-sum value of such retirement income, except

18  that if the method of distribution determined under subsection

19  (2) involves the purchase of an insured annuity, the amount

20  required to provide the given retirement income shall mean the

21  single premium payable for such annuity.

22         (a)  Apportionment shall first be made in respect of

23  each retired firefighter receiving a retirement income

24  hereunder on such date, each person receiving a retirement

25  income on such date on account of a retired (but since

26  deceased) firefighter, and each firefighter who has, by such

27  date, become eligible for normal retirement but has not yet

28  retired, in the amount required to provide such retirement

29  income, provided that, if such asset value is less than the

30  aggregate of such amounts, such amounts shall be

31


                                  56

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  proportionately reduced so that the aggregate of such reduced

  2  amounts will be equal to such asset value.

  3         (b)  If there is any asset value remaining after the

  4  apportionment under paragraph (a), apportionment shall next be

  5  made in respect of each firefighter in the service of the

  6  municipality or special fire control district on such date who

  7  has completed at least 10 years of credited service, in who

  8  has contributed to the firefighters' pension trust fund for at

  9  least 10 years, and who is not entitled to an apportionment

10  under paragraph (a), in the amount required to provide the

11  actuarial equivalent of the accrued normal retirement income,

12  based on the firefighter's credited service and earnings to

13  such date, and each former participant then entitled to a

14  benefit under the provisions of s. 175.211 who has not by such

15  date reached his or her normal retirement date, in the amount

16  required to provide the actuarial equivalent of the accrued

17  normal retirement income to which he or she is entitled under

18  s. 175.211; provided that, if such remaining asset value is

19  less than the aggregate of the amounts apportioned hereunder,

20  such latter amounts shall be proportionately reduced so that

21  the aggregate of such reduced amounts will be equal to such

22  remaining asset value.

23         (c)  If there is any asset value after the

24  apportionments under paragraphs (a) and (b), apportionment

25  shall lastly be made in respect of each firefighter in the

26  service of the municipality or special fire control district

27  on such date who is not entitled to an apportionment under

28  paragraphs (a) and (b) in the amount equal to the

29  firefighter's total contributions to the plan to date of

30  termination; provided that, if such remaining asset value is

31  less than the aggregate of the amounts apportioned hereunder,


                                  57

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  such latter amounts shall be proportionately reduced so that

  2  the aggregate of such reduced amounts will be equal to such

  3  remaining asset value.

  4         (d)  In the event that there is asset value remaining

  5  after the full apportionment specified in paragraphs (a), (b),

  6  and (c), such excess shall be returned to the municipality or

  7  special fire control district, less return to the state of the

  8  state's contributions, provided that, if the excess is less

  9  than the total contributions made by the municipality or

10  special fire control district and the state to date of

11  termination of the plan, such excess shall be divided

12  proportionately to the total contributions made by the

13  municipality or special fire control district and the state.

14         (4)  The board of trustees shall distribute, in

15  accordance with the manner of distribution determined under

16  subsection (2), the amounts apportioned under subsection (3).

17

18  If, after a period of 24 months after the date on which the

19  plan terminated or the date on which the board received

20  written notice that the contributions thereunder were being

21  permanently discontinued, the municipality or special fire

22  control district or the board of trustees of the firefighters'

23  pension trust fund affected has not complied with all the

24  provisions in this section, the division shall effect the

25  termination of the fund in accordance with this section.

26         Section 37.  Section 175.371, Florida Statutes, is

27  amended to read:

28         175.371  Transfer to another state retirement system;

29  benefits payable.--For any municipality, special fire control

30  district, chapter plan, local law municipality, local law

31


                                  58

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  special fire control district, or local law plan under this

  2  chapter:

  3         (1)  Any firefighter who has a vested right to benefits

  4  under a pension plan created pursuant to the provisions of

  5  this chapter and who elects to participate in another state

  6  retirement system may not receive a benefit under the

  7  provisions of the latter retirement system for any year's

  8  service for which benefits are paid under the provisions of

  9  the pension plan created pursuant to this chapter.

10         (2)  When every active participant in any pension plan

11  created pursuant to this chapter elects to transfer to another

12  state retirement system, the pension plan created pursuant to

13  this chapter shall be terminated and the assets distributed in

14  accordance with s. 175.361.  If some participants in a pension

15  plan created pursuant to this chapter elect to transfer to

16  another state retirement system and other participants elect

17  to remain in the existing plan created pursuant to this

18  chapter, the plan created pursuant to this chapter shall

19  continue to receive state premium tax moneys remain in effect

20  until fully funded. "Fully funded" means that the present

21  value of all benefits, accrued and projected, is less than the

22  available assets and the present value of future member

23  contributions and future plan sponsor contributions on an

24  actuarial entry age cost funding basis.  The plan shall remain

25  in effect until the last active participant has terminated and

26  shall then be terminated in accordance with s. 175.361.

27         Section 38.  Section 175.381, Florida Statutes, is

28  amended to read:

29         (Substantial rewording of section.  See

30         s. 175.381, F.S., for present text.)

31


                                  59

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         175.381  Applicability.--This act shall apply to all

  2  municipalities, special fire control districts, chapter plans,

  3  local law municipalities, local law special fire control

  4  districts, or local law plans presently existing or to be

  5  created pursuant to this chapter.  Those plans presently

  6  existing pursuant to s. 175.351 and not in compliance with the

  7  provisions of this act must comply no later than December 31,

  8  1999.  However, the plan sponsor of any plan established by

  9  special act of the Legislature shall have until July 1, 2000,

10  to comply with the provisions of this act, except as otherwise

11  provided in this act with regard to establishment and election

12  of board members.  The provisions of this act shall be

13  construed to establish minimum standards and minimum benefit

14  levels, and nothing contained in this act or in chapter 175

15  shall operate to reduce presently existing rights or benefits

16  of any firefighter, directly, indirectly, or otherwise.

17         Section 39.  Section 175.391, Florida Statutes, is

18  repealed.

19         Section 40.  Section 175.401, Florida Statutes, is

20  amended to read:

21         175.401  Retiree health insurance subsidy.--For any

22  municipality, special fire control district, chapter plan,

23  local law municipality, local law special fire control

24  district, or local law plan under this chapter, under the

25  broad grant of home rule powers under the Florida Constitution

26  and chapter 166, municipalities have the authority to

27  establish and administer locally funded health insurance

28  subsidy programs.  In addition, special fire control districts

29  may, by resolution, establish and administer locally funded

30  health insurance subsidy programs.  Pursuant thereto:

31


                                  60

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (1)  PURPOSE.--The purpose of this section is to allow

  2  municipalities and special fire control districts the option

  3  to use premium tax moneys, as provided for under this chapter,

  4  to establish and administer health insurance subsidy programs

  5  which will provide a monthly subsidy payment to retired

  6  members of any firefighters' pension trust fund system or plan

  7  as provided under this chapter, or to beneficiaries who are

  8  spouses or financial dependents entitled to receive benefits

  9  under such a plan, in order to assist such retired members or

10  beneficiaries in paying the costs of health insurance.

11         (2)  RETIREE HEALTH INSURANCE SUBSIDY TRUST FUNDS;

12  ESTABLISHMENT AND TERMINATION.--

13         (a)  Any municipality or special fire control district

14  having a firefighters' pension trust fund system or plan as

15  provided under this chapter may, in its discretion, establish

16  by ordinance or resolution, as appropriate, a trust fund to be

17  known as the firefighters' retiree health insurance subsidy

18  trust fund. This fund may be a separate account established

19  for such purpose in the existing firefighters' pension fund,

20  provided that all funds deposited in such account are

21  segregated from, and not commingled with, pension funds or

22  other public moneys and that the account otherwise conforms to

23  the requirements of subsection (8).  The trust fund shall be

24  used to account for all moneys received and disbursed pursuant

25  to this section.

26         (b)  Prior to the second reading of the ordinance

27  before the municipal legislative body, or of the resolution

28  before the governing body of the special fire control

29  district, an actuarial valuation must be performed by an

30  enrolled actuary as provided in s. 112.63, and copies of the

31


                                  61

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  valuation and the proposed implementing ordinance or

  2  resolution 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, and at the discretion of the governing

  6  body of a special fire control district may be permanently

  7  discontinued by resolution, at any time, subject to the

  8  requirements of any applicable collective bargaining

  9  agreement, in the same manner and subject to the same

10  conditions established for plan termination and fund

11  distribution under s. 175.361.

12         (3)  FUNDING.--Trust funds established pursuant to this

13  section shall be funded in the following manner:

14         (a)  By payment to the fund of an amount equivalent to

15  one-half of the net increase over the previous tax year in the

16  premium tax funds provided for in this chapter, said amount to

17  be established in the implementing ordinance or resolution.

18         (b)  By no less than one-half of 1 percent of the base

19  salary of each firefighter, for so long as the firefighter is

20  employed and covered by a pension plan established pursuant to

21  this chapter. The municipality or special fire control

22  district, with approval of the board of trustees, may increase

23  member contributions if needed to fund benefits greater than

24  the minimums established in this section.

25         (c)  By payment by the municipality or special fire

26  control district, on at least a quarterly basis, of whatever

27  sum is determined necessary to maintain the actuarial

28  soundness of the fund in accordance with s. 112.64.

29

30  Such contributions and payments shall be submitted to the

31  board of trustees of the firefighters' pension trust fund, or


                                  62

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  the plan trustees in the case of local law plans established

  2  under s. 175.351, and deposited in the firefighters' retiree

  3  health insurance subsidy trust fund, in the same manner and

  4  subject to the same time constraints as provided under s.

  5  175.131.

  6         (4)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

  7  SUBSIDY.--A person who has contributed to the retiree health

  8  insurance subsidy trust fund and retires under a firefighters'

  9  pension trust fund system or plan as provided under this

10  chapter, including any local law plan as provided under s.

11  175.351, or a beneficiary who is a spouse or financial

12  dependent entitled to receive benefits under such a plan, is

13  eligible for health insurance subsidy payments provided under

14  this section.  However, the fund, with approval of the board

15  of trustees and approval of the municipality or special fire

16  control district, may provide coverage to retirees and

17  beneficiaries when the retirees have not contributed to the

18  fund as provided in subsection (3). Payment of the retiree

19  health insurance subsidy shall be made only after coverage for

20  health insurance for the retiree or beneficiary has been

21  certified in writing to the board of trustees of the

22  firefighters' pension trust fund.

23         (5)  RETIREE HEALTH INSURANCE SUBSIDY

24  AMOUNT.--Beginning on the effective date established in the

25  implementing ordinance or resolution, each eligible retiree,

26  or beneficiary who is a spouse or financial dependent thereof,

27  shall receive a monthly retiree health insurance subsidy

28  payment equal to the aggregate number of years of service, as

29  defined in s. 175.032, completed at the time of retirement

30  multiplied by an amount determined in the implementing

31  ordinance or resolution, but no less than $3 for each year of


                                  63

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  service.  Nothing herein shall be construed to restrict the

  2  plan sponsor from establishing, in the implementing ordinance

  3  or resolution, a cap of no less than 30 years upon the number

  4  of years' service for which credit will be given toward a

  5  health insurance subsidy or a maximum monthly subsidy amount.

  6         (6)  PAYMENT OF RETIREE HEALTH INSURANCE

  7  SUBSIDY.--Beginning on the effective date established in the

  8  implementing ordinance or resolution, any monthly retiree

  9  health insurance subsidy amount due and payable under this

10  section shall be paid to retired members, or their eligible

11  beneficiaries, by the board of trustees of the firefighters'

12  pension trust fund, or the plan trustees in the case of local

13  law plans established under s. 175.351, in the same manner as

14  provided by s. 175.071(1)(c) for drafts upon the pension fund.

15         (7)  INVESTMENT OF THE TRUST FUND.--The trustees of the

16  firefighters' pension trust fund, or the plan trustees in the

17  case of local law plans established under s. 175.351, are

18  hereby authorized to invest and reinvest the funds of the

19  firefighters' retiree health insurance subsidy trust fund in

20  the same manner and subject to the same conditions as apply

21  hereunder to the investment of firefighters' pension funds

22  under s. 175.071.

23         (8)  DEPOSIT OF HEALTH INSURANCE SUBSIDY FUNDS.--All

24  funds and securities of the health insurance subsidy fund may

25  be deposited by the board of trustees with the treasurer of

26  the municipality or special fire control district, acting in a

27  ministerial capacity only, who shall be liable in the same

28  manner and to the same extent as he or she is liable for the

29  safekeeping of funds for the municipality or special fire

30  control district.  Any funds so deposited shall be segregated

31  by the treasurer in a separate fund, clearly identified as


                                  64

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  funds and securities of the health insurance subsidy fund.  In

  2  lieu thereof, the board of trustees shall deposit the funds

  3  and securities of the health insurance subsidy fund in a

  4  qualified public depository as defined in s. 280.02, which

  5  shall conform to and be bound by the provisions of chapter 280

  6  with regard to such funds.  In no case shall the funds of the

  7  health insurance subsidy fund be deposited in any financial

  8  institution, brokerage house trust company, or other entity

  9  that is not a public depository as provided by s. 280.02.

10         (9)  SEPARATION FROM SERVICE; REFUNDS.--Any firefighter

11  who terminates employment with a municipality or special fire

12  control district having a retiree health insurance subsidy

13  trust fund system or plan as provided under this section shall

14  be entitled to a refund of all employee contributions he or

15  she made to that trust fund, without interest, regardless of

16  whether the firefighter has vested for purposes of retirement.

17  Any firefighter who has vested for purposes of retirement in

18  the service of the municipality or special fire control

19  district, and has contributed to the firefighters' retiree

20  health insurance subsidy trust fund for so long as he or she

21  was eligible to make such contributions, may, in his or her

22  discretion, elect to leave his or her accrued contributions in

23  the fund, whereupon, such firefighter shall, upon retiring and

24  commencing to draw retirement benefits, receive a health

25  insurance subsidy based upon his or her aggregate number of

26  years of service, as defined in s. 175.032.

27         (10)  ADMINISTRATION OF SYSTEM; ACTUARIAL VALUATIONS;

28  AUDITS; RULES; ADMINISTRATIVE COSTS.--The board of trustees of

29  the firefighters' pension trust fund, or the plan trustees in

30  the case of local law plans established under s. 175.351,

31


                                  65

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  shall be solely responsible for administering the health

  2  insurance subsidy trust fund.  Pursuant thereto:

  3         (a)  As part of its administrative duties, no less

  4  frequently than every 3 years, the board shall have an

  5  actuarial valuation of the firefighters' retiree health

  6  insurance subsidy trust fund prepared as provided in s. 112.63

  7  by an enrolled actuary, covering the same reporting period or

  8  plan year used for the firefighters' pension plan, and shall

  9  submit a report of the valuation, including actuarial

10  assumptions and type and basis of funding, to the division.

11         (b)  By February 1 of each year, the trustees shall

12  file a report with the division, containing an independent

13  audit by a certified public accountant if the fund has

14  $250,000 $100,000 or more in assets, or a certified statement

15  of accounting if the fund has less than $250,000 $100,000 in

16  assets, for the most recent plan fiscal year of the

17  municipality or special fire control district, showing a

18  detailed listing of assets and methods used to value them and

19  a statement of all income and disbursements during the year.

20  Such income and disbursements shall be reconciled with the

21  assets at the beginning of and end of the year.

22         (c)  The trustees may adopt such rules and regulations

23  as are necessary for the effective and efficient

24  administration of this section.

25         (d)  At the discretion of the plan sponsor, the cost of

26  administration may be appropriated from the trust fund or paid

27  directly by the plan sponsor.

28         (11)  BENEFITS.--Subsidy payments shall be payable

29  under the firefighters' retiree health insurance subsidy

30  program only to participants in the program or their

31  beneficiaries.  Such subsidy payments shall not be subject to


                                  66

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  assignment, execution, or attachment or to any legal process

  2  whatsoever, and shall be in addition to any other benefits to

  3  which eligible recipients are entitled under any workers'

  4  compensation law, pension law, collective bargaining

  5  agreement, municipal or county ordinance, or any other state

  6  or federal statute.

  7         (12)  DISTRIBUTION OF PREMIUM TAXES; COMPLIANCE

  8  REQUIRED.--Premium tax dollars for which spending authority is

  9  granted under this section shall be distributed from the

10  Police and Firefighters' Premium Tax Trust Fund and remitted

11  annually to municipalities and special fire control districts

12  in the same manner as provided under this chapter for

13  firefighters' pension funds. Once a health insurance subsidy

14  plan has been implemented by a municipality or special fire

15  control district under this section, in order for the

16  municipality or special fire control district to participate

17  in the distribution of premium tax dollars authorized under

18  this section, all provisions of this section, including state

19  acceptance pursuant to part VII of chapter 112, shall be

20  complied with, and said premium tax dollars may be withheld

21  for noncompliance.

22         Section 41.  Section 185.01, Florida Statutes, is

23  amended to read:

24         185.01  Legislative declaration.--

25         (1)  It is hereby found and declared by the Legislature

26  that police officers as hereinafter defined perform both state

27  and municipal functions; that they make arrests for violations

28  of state traffic laws on public highways; that they keep the

29  public peace; that they conserve both life and property; and

30  that their activities are vital to public welfare of this

31  state.  Therefore the Legislature declares that it is a proper


                                  67

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  and legitimate state purpose to provide a uniform retirement

  2  system for the benefit of police officers as hereinafter

  3  defined and intends, in implementing the provisions of s. 14,

  4  Art. X of the State Constitution as they relate to municipal

  5  police officers' retirement trust fund systems and plans, that

  6  such retirement systems or plans be managed, administered,

  7  operated, and funded in such manner as to maximize the

  8  protection of police officers' retirement trust funds.

  9  Therefore, the Legislature hereby determines and declares that

10  the provisions of this act fulfill an important state

11  interest.

12         (2)  This chapter hereby establishes, for all municipal

13  pension plans now or hereinafter provided for under this

14  chapter, including chapter plans and local law plans, minimum

15  benefits and minimum standards for the operation and funding

16  of such municipal police officers' retirement trust fund

17  systems and plans, hereinafter referred to as municipal police

18  officers' retirement trust funds. The minimum benefits and

19  minimum standards set forth in this chapter may not be

20  diminished by local ordinance or by special act of the

21  Legislature, nor may the minimum benefits or minimum standards

22  be reduced or offset by any other local, state, or federal

23  plan that may include police officers in its operation, except

24  as provided under s. 112.65.

25         Section 42.  Section 185.02, Florida Statutes, is

26  amended to read:

27         (Substantial rewording of section.  See

28         s. 185.02, F.S., for present text.)

29         185.02  Definitions.--For any municipality, chapter

30  plan, local law municipality, or local law plan under this

31  chapter, the following words and phrases as used in this


                                  68

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  chapter shall have the following meanings, unless a different

  2  meaning is plainly required by the context:

  3         (1)  "Average final compensation" means one-twelfth of

  4  the average annual compensation of the 5 best years of the

  5  last 10 years of creditable service prior to retirement,

  6  termination, or death.

  7         (2)  "Casualty insurance" means automobile public

  8  liability and property damage insurance to be applied at the

  9  place of residence of the owner, or if the subject is a

10  commercial vehicle, to be applied at the place of business of

11  the owner; automobile collision insurance; fidelity bonds;

12  burglary and theft insurance; and plate glass insurance.

13  "Multiple peril" means a combination or package policy that

14  includes both property coverage and casualty coverage for a

15  single premium.

16         (3)  "Chapter plan" means a separate defined benefit

17  pension plan for police officers which incorporates by

18  reference the provisions of this chapter and has been adopted

19  by the governing body of a municipality as provided in s.

20  185.08.  Except as may be specifically authorized in this

21  chapter, provisions of a chapter plan may not differ from the

22  plan provisions set forth in ss. 185.01-185.341 and

23  185.36-185.42.  Actuarial valuations of chapter plans shall be

24  conducted by the division as provided by s. 185.221(1)(b).

25         (4)  "Compensation" or "salary" means the total cash

26  remuneration including "overtime" paid by the primary employer

27  to a police officer for services rendered, but not including

28  any payments for extra duty or a special detail work performed

29  on behalf of a second party employer. However, a local law

30  plan may limit the amount of overtime payments which can be

31  used for retirement benefit calculation purposes, but in no


                                  69

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  event shall such overtime limit be less than 300 hours per

  2  officer per calendar year.

  3         (a)  Any retirement trust fund or plan which now or

  4  hereafter meets the requirements of this chapter shall not,

  5  solely by virtue of this subsection, reduce or diminish the

  6  monthly retirement income otherwise payable to each police

  7  officer covered by the retirement trust fund or plan.

  8         (b)  The member's compensation or salary contributed as

  9  employee-elective salary reductions or deferrals to any salary

10  reduction, deferred compensation, or tax-sheltered annuity

11  program authorized under the Internal Revenue Code shall be

12  deemed to be the compensation or salary the member would

13  receive if he or she were not participating in such program

14  and shall be treated as compensation for retirement purposes

15  under this chapter.

16         (c)  For any person who first becomes a member in any

17  plan year beginning on or after January 1, 1996, compensation

18  for any plan year shall not include any amounts in excess of

19  the Internal Revenue Code Section 401(a)(17) limitation [as

20  amended by the Omnibus Budget Reconciliation Act of 1993],

21  which limitation of $150,000 shall be adjusted as required by

22  federal law for qualified government plans and shall be

23  further adjusted for changes in the cost of living in the

24  manner provided by Internal Revenue Code Section

25  401(a)(17)(B).  For any person who first became a member prior

26  to the first plan year beginning on or after January 1, 1996,

27  the limitation on compensation shall be not less than the

28  maximum compensation amount that was allowed to be taken into

29  account under the plan as in effect on July 1, 1993, which

30  limitation shall be adjusted for changes in the cost of living

31


                                  70

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  since 1989 in the manner provided by Internal Revenue Code

  2  Section 401(a)(17)(1991).

  3         (5)  "Creditable service" or "credited service" means

  4  the aggregate number of years of service and fractional parts

  5  of years of service of any police officer, omitting

  6  intervening years and fractional parts of years when such

  7  police officer may not have been employed by the municipality

  8  subject to the following conditions:

  9         (a)  No police officer 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 police

13  officer repays into the fund the amount he or she has

14  withdrawn, plus interest as determined by the board.  The

15  member shall have at least 90 days after his or her

16  reemployment to make repayment.

17         (b)  A police officer may voluntarily leave his or her

18  contributions in the fund for a period of 5 years after

19  leaving the employ of the police department, pending the

20  possibility of his or her being rehired by the same

21  department, without losing credit for the time he or she has

22  participated actively as a police officer.  If he or she is

23  not reemployed as a police officer with the same department

24  within 5 years, his or her contributions shall be returned to

25  him or her without interest.

26         (c)  Credited service under this chapter shall be

27  provided only for service as a police officer, as defined in

28  subsection (11), or for military service and shall not include

29  credit for any other type of service. A municipality may, by

30  local ordinance, provide for the purchase of credit for

31  military service occurring prior to employment as well as


                                  71

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  prior service as a police officer for some other employer as

  2  long as the police officer is not entitled to receive a

  3  benefit for such other prior service as a police officer.

  4         (d)  In determining the creditable service of any

  5  police officer, credit for up to 5 years of the time spent in

  6  the military service of the Armed Forces of the United States

  7  shall be added to the years of actual service, if:

  8         1.  The police officer is in the active employ of the

  9  municipality prior to such service and leaves a position,

10  other than a temporary position, for the purpose of voluntary

11  or involuntary service in the Armed Forces of the United

12  States.

13         2.  The police officer is entitled to reemployment

14  under the provisions of the Uniformed Services Employment and

15  Reemployment Rights Act.

16         3.  The police officer returns to his or her employment

17  as a police officer of the municipality within 1 year from the

18  date of his or her release from such active service.

19         (6)  "Deferred Retirement Option Plan" or "DROP" means

20  a local law plan retirement option in which a police officer

21  may elect to participate.  A police officer may retire for all

22  purposes of the plan and defer receipt of retirement benefits

23  into a DROP account while continuing employment with his

24  employer. However, a police officer who enters the DROP and

25  who is otherwise eligible to participate shall not thereby be

26  precluded from participating, or continuing to participate, in

27  a supplemental plan in existence on, or created after, the

28  effective date of this act.

29         (7)  "Division" means the Division of Retirement of the

30  Department of Management Services.

31


                                  72

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (8)  "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         (9)  "Local law municipality" is any municipality in

  6  which there exists a local law plan.

  7         (10)  "Local law plan" means a defined benefit pension

  8  plan for police officers or for police officers and

  9  firefighters, where included, as described in s. 185.35,

10  established by municipal ordinance or special act of the

11  Legislature, which enactment sets forth all plan provisions.

12  Local law plan provisions may vary from the provisions of this

13  chapter, provided that required minimum benefits and minimum

14  standards are met.  Any such variance shall provide a greater

15  benefit for police officers.  Actuarial valuations of local

16  law plans shall be conducted by an enrolled actuary as

17  provided in s. 185.221(2)(b).

18         (11)  "Police officer" means any person who is elected,

19  appointed, or employed full time by any municipality, who is

20  certified or required to be certified as a law enforcement

21  officer in compliance with s. 943.1395, who is vested with

22  authority to bear arms and make arrests, and whose primary

23  responsibility is the prevention and detection of crime or the

24  enforcement of the penal, criminal, traffic, or highway laws

25  of the state. This definition includes all certified

26  supervisory and command personnel whose duties include, in

27  whole or in part, the supervision, training, guidance, and

28  management responsibilities of full-time law enforcement

29  officers, part-time law enforcement officers, or auxiliary law

30  enforcement officers, but does not include part-time law

31  enforcement officers or auxiliary law enforcement officers as


                                  73

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  the same are defined in s. 943.10(6) and (8), respectively.

  2  For the purposes of this chapter only, "police officer" also

  3  shall include a public safety officer who is responsible for

  4  performing both police and fire services. Any plan may provide

  5  that the police chief shall have an option to participate, or

  6  not, in that plan.

  7         (12)  "Police Officers' Retirement Trust Fund" means a

  8  trust fund, by whatever name known, as provided under s.

  9  185.03 for the purpose of assisting municipalities in

10  establishing and maintaining a retirement plan for police

11  officers.

12         (13)  "Retiree" or "retired police officer" means a

13  police officer who has entered retirement status.  For the

14  purposes of a plan that includes a Deferred Retirement Option

15  Plan (DROP), a police officer who enters the DROP shall be

16  considered a retiree for all purposes of the plan. However, a

17  police officer who enters the DROP and who is otherwise

18  eligible to participate shall not thereby be precluded from

19  participating, or continuing to participate, in a supplemental

20  plan in existence on, or created after, the effective date of

21  this act.

22         (14)  "Retirement" means a police officer's separation

23  from city employment as a police officer with immediate

24  eligibility for receipt of benefits under the plan.  For

25  purposes of a plan that includes a Deferred Retirement Option

26  Plan (DROP), "retirement" means the date a police officer

27  enters the DROP.

28         (15)  "Supplemental plan" means a plan to which

29  deposits of the premium tax moneys as provided in s. 185.08

30  are made to provide extra benefits to police officers, or

31  police officers and firefighters where included, under this


                                  74

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  chapter.  Such a plan is an element of a local law plan and

  2  exists in conjunction with a defined benefit plan that meets

  3  the minimum benefits and minimum standards of this chapter.

  4         (16)  "Supplemental plan municipality" means any local

  5  law municipality in which there existed a supplemental plan as

  6  of January 1, 1997.

  7         Section 43.  Section 185.03, Florida Statutes, is

  8  amended to read:

  9         185.03  Municipal police officers' retirement trust

10  funds; creation; applicability of provisions; participation by

11  public safety officers.--For any municipality, chapter plan,

12  local law municipality, or local law plan under this chapter:

13         (1)  There shall be established may be hereby created a

14  special fund exclusively for the purpose of this chapter,

15  which in the case of chapter plans shall to be known as the

16  "Municipal Police Officers' Retirement Trust Fund,"

17  exclusively for the purposes provided in this chapter, in each

18  municipality of this state, heretofore or hereafter created,

19  which now has or which may hereafter have a regularly

20  organized police department, and which now owns and uses or

21  which may hereafter own and use equipment and apparatus of a

22  value exceeding $500 in serviceable condition for the

23  prevention of crime and for the preservation of life and

24  property, and which does not presently have established by law

25  a similar fund.

26         (2)  The provisions of this chapter act shall apply

27  only to municipalities organized and established pursuant to

28  the laws of the state, and said provisions shall not apply to

29  the unincorporated areas of any county or counties nor shall

30  the provisions hereof apply to any governmental entity whose

31  police officers employees are eligible to participate for


                                  75

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  membership in the Florida Retirement System a state or state

  2  and county retirement system.

  3         (3)  No municipality shall establish more than one

  4  retirement plan for public safety officers which is supported

  5  in whole or in part by the distribution of premium tax funds

  6  as provided by this chapter or chapter 175, nor shall any

  7  municipality establish a retirement plan for public safety

  8  officers which receives premium tax funds from both this

  9  chapter and chapter 175.

10         Section 44.  Section 185.04, Florida Statutes, is

11  amended to read:

12         185.04  Actuarial deficits not state obligations.--For

13  any municipality, chapter plan, local law municipality, or

14  local law plan under this chapter, actuarial deficits, if any,

15  arising under this chapter are shall not be the obligation of

16  the state.

17         Section 45.  Section 185.05, Florida Statutes, is

18  amended to read:

19         185.05  Board of trustees; members, terms of office;

20  meetings; legal entity; costs; attorney's fees.--For any

21  municipality, chapter plan, local law municipality, or local

22  law plan under this chapter:

23         (1)  In each municipality described in s. 185.03 there

24  is hereby created a board of trustees of the municipal police

25  officers' retirement trust fund, which shall be solely

26  responsible for administering the trust fund. Effective

27  October 1, 1986, and thereafter:,

28         (a)  The membership of the board of trustees for

29  chapter plans shall consist of five members, two of whom,

30  unless otherwise prohibited by law, shall be legal residents

31  of the municipality, who shall be appointed by the legislative


                                  76

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  body of the municipality, and two of whom shall be police

  2  officers as defined in s. 185.02 who shall be elected by a

  3  majority of the active police officers who are members of such

  4  plan. With respect to any chapter plan or local law plan that,

  5  on January 1, 1997, allowed retired police officers to vote in

  6  such elections, retirees may continue to vote in such

  7  elections. The fifth member shall be chosen by a majority of

  8  the previous four members, and such person's name shall be

  9  submitted to the legislative body of the municipality.  Upon

10  receipt of the fifth person's name, the legislative body of

11  the municipality shall, as a ministerial duty, appoint such

12  person to the board of trustees as its fifth member.  The

13  fifth member shall have the same rights as each of the other

14  four members appointed or elected as herein provided, shall

15  serve as trustee for a period of 2 years, and may succeed

16  himself or herself in office. Each resident member shall serve

17  as trustee for a period of 2 years, unless sooner replaced by

18  the legislative body at whose pleasure the member shall serve,

19  and may succeed himself or herself as a trustee.  However, the

20  terms of the mayor, or corresponding chief executive officer

21  of the municipality, and the chief of the police department as

22  members of the board of trustees as provided in chapter 28230,

23  Laws of Florida, 1953, as amended, together with any city

24  manager and member of the legislative body of the municipality

25  as members of the board of trustees shall terminate on

26  September 30, 1986. Each police officer member shall serve as

27  trustee for a period of 2 years, unless he or she sooner

28  leaves the employment of the municipality as a police officer,

29  whereupon the legislative body of the municipality shall

30  choose a successor in the same manner as an original

31  appointment.  Each police officer may succeed himself or


                                  77

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  herself in office. The board of trustees shall meet at least

  2  quarterly each year.  Each board of trustees shall be a legal

  3  entity with, in addition to other powers and responsibilities

  4  contained herein, the power to bring and defend lawsuits of

  5  every kind, nature, and description.

  6         (b)  The membership of boards of trustees for local law

  7  plans shall be as follows:

  8         1.  If a municipality has a pension plan for police

  9  officers only, the provisions of paragraph (a) shall apply.

10         2.  If a municipality has a pension plan for police

11  officers and firefighters, the provisions of paragraph (a)

12  shall apply, except that one member of the board shall be a

13  police officer as defined in s. 185.02 and one member shall be

14  a firefighter as defined in s. 175.032, respectively, elected

15  by a majority of the active firefighters and police officers

16  who are members of the plan.

17         3.  Any board of trustees operating a local law plan on

18  July 1, 1999, which is combined with a plan for general

19  employees shall hold an election of the police officers, or

20  police officers and firefighters if included, to determine

21  whether a plan is to be established for police officers only,

22  or for police officers and firefighters where included.  Based

23  on the election results, a new board shall be established as

24  provided in subparagraph 1. or subparagraph 2., as

25  appropriate. The municipality shall enact an ordinance to

26  implement the new board by October 1, 1999. The newly

27  established board shall take whatever action is necessary to

28  determine the amount of assets which is attributable to police

29  officers, or police officers and firefighters where included.

30  Such assets shall include all employer, employee, and state

31  contributions made by or on behalf of police officers, or


                                  78

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  police officers and firefighters where included, and any

  2  investment income derived from such contributions.  All such

  3  moneys shall be transferred into the newly established

  4  retirement plan, as directed by the board.

  5

  6  With respect to any board of trustees operating a local law

  7  plan on June 30, 1986, nothing in this paragraph shall permit

  8  the reduction of the membership percentage of police officers

  9  or police officers and firefighters.

10         (2)  The trustees shall by majority vote elect from its

11  members a chair and a secretary.  The secretary of the board

12  shall keep a complete minute book of the actions, proceedings,

13  or hearings of the board. The trustees shall not receive any

14  compensation as such, but may receive expenses and per diem as

15  provided by Florida law.

16         (3)  The board of trustees shall meet at least

17  quarterly each year.

18         (4)  Each board of trustees shall be a legal entity

19  that shall have, in addition to other powers and

20  responsibilities contained herein, the power to bring and

21  defend lawsuits of every kind, nature, and description.

22         (5)  In any judicial proceeding or administrative

23  proceeding under chapter 120 brought under or pursuant to the

24  provisions of this chapter, the prevailing party shall be

25  entitled to recover the costs thereof, together with

26  reasonable attorney's fees.

27         (6)  The provisions of this section may not be altered

28  by a participating municipality operating a chapter or local

29  law plan under this chapter.

30         Section 46.  Section 185.061, Florida Statutes, is

31  amended to read:


                                  79

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         185.061  Use of annuity or insurance policies.--When

  2  the board of trustees of any municipality, chapter plan, local

  3  law municipality, or local law plan purchases annuity or life

  4  insurance contracts to provide all or part of the benefits

  5  promised by this chapter, the following principles shall be

  6  observed:

  7         (1)  Only those officers who have been members of the

  8  retirement trust fund for 1 year or longer may be included in

  9  the insured plan.

10         (2)  Individual policies shall be purchased only when a

11  group insurance plan is not feasible.

12         (3)  Each application and policy shall designate the

13  pension fund as owner of the policy.

14         (4)  Policies shall be written on an annual premium

15  basis.

16         (5)  The type of policy shall be one which for the

17  premium paid provides each individual with the maximum

18  retirement benefit at his or her earliest statutory normal

19  retirement age.

20         (6)  Death benefit, if any, should not exceed:

21         (a)  One hundred times the estimated normal monthly

22  retirement income, based on the assumption that the present

23  rate of compensation continues without change to normal

24  retirement date, or

25         (b)  Twice the annual rate of compensation as of the

26  date of termination of service, or

27         (c)  The single-sum value of the accrued deferred

28  retirement income (beginning at normal retirement date) at

29  date of termination of service, whichever is greatest.

30         (7)  An insurance plan may provide that the assignment

31  of insurance contract to separating officer shall be at least


                                  80

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  equivalent to the return of the officer's contributions used

  2  to purchase the contract.  An assignment of contract

  3  discharges the municipality from all further obligation to the

  4  participant under the plan even though the cash value of such

  5  contract may be less than the employee's contributions.

  6         (8)  Provisions shall be made, either by issuance of

  7  separate policies, or otherwise, that the separating officer

  8  does not receive cash values and other benefits under the

  9  policies assigned to the officer which exceed the present

10  value of his or her vested interest under the retirement plan,

11  inclusive of the officer's contribution to the plan, the

12  contributions by the state shall not be exhausted faster

13  merely because the method of funding adopted was through

14  insurance companies.

15         (9)  The police officer shall have the right at any

16  time to give the board of trustees written instructions

17  designating the primary and contingent beneficiaries to

18  receive death benefit or proceeds and the method of the

19  settlement of the death benefit or proceeds, or requesting a

20  change in the beneficiary, designation or method of settlement

21  previously made, subject to the terms of the policy or

22  policies on the officer's life.  Upon receipt of such written

23  instructions, the board of trustees shall take the necessary

24  steps to effectuate the designation or change of beneficiary

25  or settlement option.

26         Section 47.  Section 185.07, Florida Statutes, is

27  amended to read:

28         185.07  Creation and maintenance of fund.--For any

29  municipality, chapter plan, local law municipality, or local

30  law plan under this chapter:

31


                                  81

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (1)  The municipal police officers' retirement trust

  2  fund in each municipality described in s. 185.03 shall be

  3  created and maintained in the following manner:

  4         (a)  By the net proceeds of the .85-percent excise tax

  5  which may be imposed by the respective cities and towns upon

  6  certain casualty insurance companies on their gross receipts

  7  of premiums from holders of policies, which policies cover

  8  property within the corporate limits of such municipalities,

  9  as is hereinafter expressly authorized.

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 full-time police officer duly

13  appointed and enrolled as a member of such police department,

14  which 5 percent shall be deducted by the municipality from the

15  compensation due to the police officer and paid over to the

16  board of trustees of the retirement trust fund wherein such

17  police officer is employed, provided that no deductions shall

18  be made after an officer has passed his or her normal

19  retirement date.  No police officer shall have any right to

20  the said money so paid into the said fund except as provided

21  in this chapter.

22         (c)  By all fines and forfeitures imposed and collected

23  from any police officer because of the violation of any rule

24  adopted and regulation promulgated by the board of trustees.

25         (d)  By payment by the municipality or other sources of

26  a sum equal to the normal cost and the amount required to fund

27  over a 40-year basis any actuarial deficiency shown by an a

28  quinquennial actuarial valuation as provided in part VII of

29  chapter 112.  The first such actuarial valuation shall be

30  conducted for the calendar year ending December 31, 1963.

31


                                  82

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (e)  By all gifts, bequests and devises when donated to

  2  for the fund.

  3         (f)  By all accretions to the fund by way of interest

  4  or dividends on bank deposits or otherwise.

  5         (g)  By all other sources of income now or hereafter

  6  authorized by law for the augmentation of such municipal

  7  police officers' retirement trust fund.

  8         (2)  Member contribution rates may be adjusted as

  9  follows:

10         (a)  The employing municipality, by local ordinance,

11  may elect to make an employee's contributions.  However, under

12  no circumstances may a municipality reduce the member

13  contribution to less than one-half of 1 percent of salary.

14         (b)  Police officer member contributions may be

15  increased by consent of the members' collective bargaining

16  representative or, if none, by majority consent of police

17  officer members of the fund to provide greater benefits.

18

19  Nothing in this section shall be construed to require

20  adjustment of member contribution rates in effect on the date

21  this act becomes a law, including rates that exceed 5 percent

22  of salary, provided that such rates are at least one-half of 1

23  percent of salary.

24         Section 48.  Section 185.08, Florida Statutes, is

25  amended to read:

26         185.08  State excise tax on casualty insurance premiums

27  authorized; procedure.--For any municipality, chapter plan,

28  local law municipality, or local law plan under this chapter:

29         (1)  Each incorporated municipality in this state

30  described and classified in s. 185.03, as well as each other

31  city or town of this state which on July 31, 1953, had a


                                  83

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  lawfully established municipal police officers' retirement

  2  trust fund or city fund, by whatever name known, providing

  3  pension or relief benefits to police officers as provided

  4  under this chapter by whatever name known, may assess and

  5  impose on every insurance company, corporation, or other

  6  insurer now engaged in or carrying on, or who shall hereafter

  7  engage in or carry on, the business of casualty insurance as

  8  shown by records of the Department of Insurance, an excise tax

  9  in addition to any lawful license or excise tax now levied by

10  each of the said municipalities, respectively, amounting to

11  .85 percent of the gross amount of receipts of premiums from

12  policyholders on all premiums collected on casualty insurance

13  policies covering property within the corporate limits of such

14  municipalities, respectively.

15         (2)  In the case of multiple peril policies with a

16  single premium for both property and casualty coverages in

17  such policies, 30 percent of such premium shall be used as the

18  basis for the .85-percent tax above.

19         (3)  The Said excise tax shall be payable annually

20  March 1 of each year after the passing of an ordinance

21  assessing and imposing the tax herein authorized.

22  Installments of taxes shall be paid according to the

23  provisions of s. 624.5092(2)(a), (b), and (c).

24         Section 49.  Section 185.09, Florida Statutes, is

25  amended to read:

26         185.09  Report of premiums paid; date tax payable.--For

27  any municipality, chapter plan, local law municipality, or

28  local law plan under this chapter, whenever any municipality

29  passes an ordinance establishing a chapter plan or local law

30  plan and assessing and imposing the tax authorized in s.

31  185.08, a certified copy of such ordinance shall be deposited


                                  84

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  with the division; and thereafter every insurance company,

  2  corporation, or other insurer carrying on the business of

  3  casualty insuring, on or before the succeeding March 1 after

  4  date of the passage of the ordinance, shall report fully in

  5  writing to the division and the Department of Revenue a just

  6  and true account of all premiums received by such insurer for

  7  casualty insurance policies covering or insuring any property

  8  located within the corporate limits of such municipality

  9  during the period of time elapsing between the date of the

10  passage of the ordinance and the end of the calendar year

11  succeeding March 1. The aforesaid insurer shall annually

12  thereafter, on March 1, file with the division and the

13  Department of Revenue a similar report covering the preceding

14  year's premium receipts.  Every such insurer shall, at the

15  time of making such report, pay to the Department of Revenue

16  the amount of the tax heretofore mentioned. Every insurer

17  engaged in carrying on a general casualty insurance business

18  in the state shall keep accurate books of account of all such

19  business done by it within the limits of such incorporated

20  municipality in such a manner as to be able to comply with the

21  provisions of this chapter.  Based on the insurers' reports of

22  premium receipts, the division shall prepare a consolidated

23  premium report and shall furnish to any municipality

24  requesting the same a copy of the relevant section of that

25  report.

26         Section 50.  Section 185.10, Florida Statutes, is

27  amended to read:

28         185.10  Department of Revenue and Division of

29  Retirement to keep accounts of deposits; disbursements.--For

30  any municipality having a chapter plan or local law plan under

31  this chapter:


                                  85

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (1)  The Department of Revenue shall keep a separate

  2  account of all moneys collected for each municipality under

  3  the provisions of this chapter. All moneys so collected must

  4  be transferred to the Police and Firefighters' Premium Tax

  5  Trust Fund and shall be separately accounted for by the

  6  division. The moneys budgeted as necessary to pay the expenses

  7  of the division for the daily oversight and monitoring of the

  8  police officers' retirement plans under this chapter and for

  9  the oversight and actuarial reviews conducted under part VII

10  of chapter 112 are annually appropriated from the interest and

11  investment income earned on the moneys collected for each

12  municipality or special fire control district and deposited in

13  the Police and Firefighters' Premium Tax Trust Fund. Interest

14  and investment income remaining thereafter in the trust fund

15  which is unexpended and otherwise unallocated by law shall

16  revert to the General Revenue Fund on June 30 of each year.

17         (2)  The Comptroller shall, on or before July 1 June 1

18  of each year, and at such other times as authorized by the

19  division, draw his or her warrants on the full net amount of

20  money then on deposit pursuant to this chapter in the Police

21  and Firefighters' Premium Tax Trust Fund, specifying the

22  municipalities to which the moneys must be paid and the net

23  amount collected for and to be paid to each municipality,

24  respectively. The sum payable to each municipality is

25  appropriated annually out of the Police and Firefighters'

26  Premium Tax Trust Fund.  The warrants of the Comptroller shall

27  be payable to the respective municipalities entitled to

28  receive them and shall be remitted annually by the division to

29  the respective municipalities. In lieu thereof, the

30  municipality may provide authorization to the division for the

31  direct payment of the premium tax to the board of trustees.


                                  86

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  In order for a municipality and its retirement fund to

  2  participate in the distribution of premium tax moneys under

  3  this chapter, all the provisions shall be complied with

  4  annually, including state acceptance pursuant to part VII of

  5  chapter 112.

  6         Section 51.  Section 185.11, Florida Statutes, is

  7  amended to read:

  8         185.11  Funds received by municipalities, deposit in

  9  retirement trust fund.--For any municipality, chapter plan,

10  local law municipality, or local law plan under this chapter,

11  all state and other funds received by any municipality under

12  the provisions of this chapter shall be deposited by the said

13  municipality immediately, and under no circumstances more than

14  5 days after receipt, with the board of trustees. In lieu

15  thereof, the municipality may provide authorization to the

16  division for the direct payment of the premium tax to the

17  board of trustees.  The board shall deposit such moneys in the

18  Municipal Police Officers' Retirement Trust Fund immediately,

19  and under no circumstances more than 5 days after receipt.

20  Employee contributions, however, which are withheld by the

21  employer on behalf of an employee member shall be deposited

22  immediately after each pay period with the board of trustees

23  of the municipal police officers' retirement trust fund.

24  Employer contributions shall be deposited at least quarterly

25  at least monthly.

26         Section 52.  Section 185.12, Florida Statutes, is

27  amended to read:

28         185.12  Payment of excise tax credit on similar state

29  excise or license tax.--The tax herein authorized shall in

30  nowise be additional to the similar state excise or license

31  tax imposed by part IV, chapter 624, but the payor of the tax


                                  87

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  hereby authorized shall receive credit therefor on his or her

  2  said state excise or license tax and the balance of said state

  3  excise or license tax shall be paid to the Department of

  4  Revenue Insurance Commissioner and Treasurer as is now

  5  provided by law.

  6         Section 53.  Section 185.13, Florida Statutes, is

  7  amended to read:

  8         185.13  Failure of insurer to comply with chapter;

  9  penalty.--Should any insurance company, corporation or other

10  insurer fail to comply with the provisions of this chapter, on

11  or before March 1 in each year as herein provided, the

12  certificate of authority issued to said insurance company,

13  corporation or other insurer to transact business in this

14  state may be canceled and revoked by the Department of

15  Insurance, and it is unlawful for any such insurance company,

16  corporation or other insurer to transact any business

17  thereafter in this state unless such insurance company,

18  corporation or other insurer shall be granted a new

19  certificate of authority to transact business in this state,

20  in compliance with provisions of law authorizing such

21  certificate of authority to be issued. The division shall be

22  responsible for notifying the Department of Insurance

23  regarding any such failure to comply.

24         Section 54.  Section 185.14, Florida Statutes, is

25  repealed.

26         Section 55.  Section 185.15, Florida Statutes, is

27  repealed.

28         Section 56.  Section 185.16, Florida Statutes, is

29  amended to read:

30         185.16  Requirements for retirement.--For any

31  municipality, chapter plan, local law municipality, or local


                                  88

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  law plan under this chapter, any police officer who completes

  2  10 or more years of creditable service as a police officer and

  3  attains age 55, or completes 25 years of creditable service as

  4  a police officer and attains age 52, and for such period has

  5  been a member of the retirement fund is eligible for normal

  6  retirement benefits.  Normal retirement under the plan is

  7  retirement from the service of the city on or after the normal

  8  retirement date.  In such event, for chapter plans and local

  9  law plans, payment of retirement income will be governed by

10  the following provisions of this section:

11         (1)  The normal retirement date of each police officer

12  will be the first day of the month coincident with or next

13  following the date on which the police officer has completed

14  10 or more years of creditable service and attained age 55 or

15  completed 25 years of creditable service and attained age 52.

16  A police officer who retires after his or her normal

17  retirement date will upon actual retirement be entitled to

18  receive the same amount of monthly retirement income that the

19  police officer would have received had he or she retired on

20  his or her normal retirement date.

21         (2)  The amount of the monthly retirement income

22  payable to a police officer who retires on or after his or her

23  normal retirement date shall be an amount equal to the number

24  of the police officer's years of credited service multiplied

25  by 2 percent of his or her average final compensation.

26  However, if current state contributions pursuant to this

27  chapter are not adequate to fund the additional benefits to

28  meet the minimum requirements in this chapter, only increment

29  increases shall be required as state moneys are adequate to

30  provide.  Such increments shall be provided as state moneys

31  become available. The retirement income will be reduced for


                                  89

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  moneys received under the disability provisions of this

  2  chapter.

  3         (3)  The monthly retirement income payable in the event

  4  of normal retirement will be payable on the first day of each

  5  month.  The first payment will be made on the police officer's

  6  normal retirement date, or on the first day of the month

  7  coincident with or next following the police officer's actual

  8  retirement, if later, and the last payment will be the payment

  9  due next preceding the police officer's death; except that, in

10  the event the police officer dies after retirement but before

11  receiving retirement benefits for a period of 10 years, the

12  same monthly benefit will be paid to the beneficiary (or

13  beneficiaries) as designated by the police officer for the

14  balance of such 10-year period, or, if no beneficiary is

15  designated, to the surviving spouse, descendants, heirs at

16  law, or estate of the police officer, as provided in s.

17  185.162.  If a police officer continues in the service of the

18  city beyond his or her normal retirement date and dies prior

19  to the date of actual retirement, without an option made

20  pursuant to s. 185.161 being in effect, monthly retirement

21  income payments will be made for a period of 10 years to a

22  beneficiary (or beneficiaries) designated by the police

23  officer as if the police officer had retired on the date on

24  which death occurred, or, if no beneficiary is designated, to

25  the surviving spouse, descendants, heirs at law, or estate of

26  the police officer, as provided in s. 185.162.

27         (4)  Early retirement under the plan is retirement from

28  the service of the city, with the consent of the city, as of

29  the first day of any calendar month which is prior to the

30  police officer's normal retirement date but subsequent to the

31  date as of which the police officer has both attained the age


                                  90

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  of 50 years and completed 10 years of contributing service.

  2  In the event of early retirement, payment of retirement income

  3  will be governed as follows:

  4         (a)  The early retirement date shall be the first day

  5  of the calendar month coincident with or immediately following

  6  the date a police officer retires from the service of the city

  7  under the provisions of this section prior to his or her

  8  normal retirement date.

  9         (b)  The monthly amount of retirement income payable to

10  a police officer who retires prior to his or her normal

11  retirement date under the provisions of this section shall be

12  an amount computed as described in subsection (2), taking into

13  account his or her credited service to the date of actual

14  retirement and his or her final monthly compensation as of

15  such date, such amount of retirement income to be actuarially

16  reduced to take into account the police officer's younger age

17  and the earlier commencement of retirement income payments.

18  In no event shall the early retirement reduction exceed 3

19  percent for each year by which the member's age at retirement

20  preceded the member's normal retirement age, as provided in

21  subsection (1).

22         (c)  The retirement income payable in the event of

23  early retirement will be payable on the first day of each

24  month. The first payment will be made on the police officer's

25  early retirement date and the last payment will be the payment

26  due next preceding the retired police officer's death; except

27  that, in the event the police officer dies before receiving

28  retirement benefits for a period of 10 years, the same monthly

29  benefit will be paid to the beneficiary designated by the

30  police officer for the balance of such 10-year period, or, if

31  no designated beneficiary is surviving, the same monthly


                                  91

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  benefit for the balance of such 10-year period shall be

  2  payable as provided in s. 185.162.

  3         Section 57.  Section 185.161, Florida Statutes, is

  4  amended to read:

  5         185.161  Optional forms of retirement income.--For any

  6  municipality, chapter plan, local law municipality, or local

  7  law plan under this chapter:

  8         (1)(a)  In lieu of the amount and form of retirement

  9  income payable in the event of normal or early retirement as

10  specified in s. 185.16, a police officer, upon written request

11  to the board of trustees and submission of evidence of good

12  health (except that such evidence will not be required if such

13  request is made at least 3 years prior to the date of

14  commencement of retirement income or if such request is made

15  within 6 months following the effective date of the plan, if

16  later), and subject to the approval of the board of trustees,

17  may elect to receive a retirement income or benefit of

18  equivalent actuarial value payable in accordance with one of

19  the following options:

20         1.  A retirement income of larger monthly amount,

21  payable to the police officer for his or her lifetime only.

22         2.  A retirement income of a modified monthly amount,

23  payable to the police officer during the joint lifetime of the

24  police officer and a joint pensioner designated by the police

25  officer, and following the death of either of them, 100

26  percent, 75 percent, 66 2/3  percent, or 50 percent of such

27  monthly amount payable to the survivor for the lifetime of the

28  survivor.

29         3.  Such other amount and form of retirement payments

30  or benefit as, in the opinion of the board of trustees, will

31  best meet the circumstances of the retiring police officer.


                                  92

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (b)  The police officer upon electing any option of

  2  this section will designate the joint pensioner or beneficiary

  3  (or beneficiaries) to receive the benefit, if any, payable

  4  under the plan in the event of the police officer's death, and

  5  will have the power to change such designation from time to

  6  time but any such change shall be deemed a new election and

  7  will be subject to approval by the pension committee.  Such

  8  designation will name a joint pensioner or one or more primary

  9  beneficiaries where applicable.  If a police officer has

10  elected an option with a joint pensioner or beneficiary and

11  his or her retirement income benefits have commenced, he or

12  she may thereafter change the designated joint pensioner or

13  beneficiary but only if the board of trustees consents to such

14  change and if the joint pensioner last previously designated

15  by the police officer is alive when he or she files with the

16  board of trustees a request for such change.  The consent of a

17  police officer's joint pensioner or beneficiary to any such

18  change shall not be required.  The board of trustees may

19  request such evidence of the good health of the joint

20  pensioner that is being removed as it may require and the

21  amount of the retirement income payable to the police officer

22  upon the designation of a new joint pensioner shall be

23  actuarially redetermined taking into account the ages and sex

24  of the former joint pensioner, the new joint pensioner, and

25  the police officer. Each such designation will be made in

26  writing on a form prepared by the board of trustees, and on

27  completion will be filed with the board of trustees.  In the

28  event that no designated beneficiary survives the police

29  officer, such benefits as are payable in the event of the

30  death of the police officer subsequent to his or her

31  retirement shall be paid as provided in s. 185.162.


                                  93

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (2)  Retirement income payments shall be made under the

  2  option elected in accordance with the provisions of this

  3  section and shall be subject to the following limitations:

  4         (a)  If a police officer dies prior to his or her

  5  normal retirement date or early retirement date, whichever

  6  first occurs, no benefit will be payable under the option to

  7  any person, but the benefits, if any, will be determined under

  8  s. 185.21.

  9         (b)  If the designated beneficiary (or beneficiaries)

10  or joint pensioner dies before the police officer's retirement

11  under the plan, the option elected will be canceled

12  automatically and a retirement income of the normal form and

13  amount will be payable to the police officer upon his or her

14  retirement as if the election had not been made, unless a new

15  election is made in accordance with the provisions of this

16  section or a new beneficiary is designated by the police

17  officer prior to his or her retirement and within 90 days

18  after the death of the beneficiary.

19         (c)  If both the retired police officer and the

20  designated beneficiary (or beneficiaries) die before the full

21  payment has been effected under any option providing for

22  payments for a period certain and life thereafter, made

23  pursuant to the provisions of subparagraph (1)(a)3., the board

24  of trustees may, in its discretion, direct that the commuted

25  value of the remaining payments be paid in a lump sum and in

26  accordance with s. 185.162.

27         (d)  If a police officer continues beyond his or her

28  normal retirement date pursuant to the provisions of s.

29  185.16(1) and dies prior to actual retirement and while an

30  option made pursuant to the provisions of this section is in

31  effect, monthly retirement income payments will be made, or a


                                  94

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  retirement benefit will be paid, under the option to a

  2  beneficiary (or beneficiaries) designated by the police

  3  officer in the amount or amounts computed as if the police

  4  officer had retired under the option on the date on which

  5  death occurred.

  6         (3)  No police officer may make any change in his or

  7  her retirement option after the date of cashing or depositing

  8  his or her first retirement check.

  9         Section 58.  Section 185.162, Florida Statutes, is

10  amended to read:

11         185.162  Beneficiaries.--For any municipality, chapter

12  plan, local law municipality, or local law plan under this

13  chapter:

14         (1)  Each police officer may, on a form, provided for

15  that purpose, signed and filed with the board of trustees,

16  designate a choice of one or more persons, named sequentially

17  or jointly, as his or her beneficiary (or beneficiaries) to

18  receive the benefit, if any, which may be payable in the event

19  of the police officer's death, and each designation may be

20  revoked by such police officer by signing and filing with the

21  board of trustees a new designation or beneficiary form.

22         (2)  If no beneficiary is named in the manner provided

23  by subsection (1), or if no beneficiary designated by the

24  member survives him or her a deceased police officer failed to

25  name a beneficiary in the manner above prescribed, or if the

26  beneficiary (or beneficiaries) named by a deceased police

27  officer predeceases the police officer, the death benefit, if

28  any, which may be payable under the plan with respect to such

29  deceased police officer shall may be paid by, in the

30  discretion of the board of trustees, either to:

31


                                  95

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (a)  Any one or more of the persons comprising the

  2  group consisting of the police officer's spouse, the police

  3  officer's descendants, the police officer's parents, or the

  4  police officer's heirs at law, and the board of trustees may

  5  pay the entire benefit to any member of such group or

  6  apportion such benefit among any two or more of them in such

  7  shares as the board of trustees, in its sole discretion, shall

  8  determine, or

  9         (b)  the estate of such deceased police officer,

10  provided that in any of such cases the board of trustees, in

11  its discretion, may direct that the commuted value of the

12  remaining monthly income payments be paid in a lump sum. Any

13  payment made to any person pursuant to this subsection the

14  power and discretion conferred upon the board of trustees by

15  the preceding sentence shall operate as a complete discharge

16  of all obligations under the plan with regard to such deceased

17  police officer and shall not be subject to review by anyone,

18  but shall be final, binding and conclusive on all persons ever

19  interested hereunder.

20         (3)  Notwithstanding any other provision of law to the

21  contrary, the surviving spouse of any pension participant

22  member killed in the line of duty shall not lose survivor

23  retirement benefits if the spouse remarries. The surviving

24  spouse of such deceased member whose benefit terminated

25  because of remarriage shall have the benefit reinstated as of

26  July 1, 1994, at an amount that would have been payable had

27  such benefit not been terminated. This paragraph shall apply

28  to all municipalities which receive state excise tax moneys as

29  provided in s. 185.08.

30         Section 59.  Section 185.18, Florida Statutes, is

31  amended to read:


                                  96

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         185.18  Disability retirement.--For any municipality,

  2  chapter plan, local law municipality, or local law plan under

  3  this chapter:

  4         (1)  A police officer having 10 or more years of

  5  credited service, or a police officer who becomes totally and

  6  permanently disabled in the line of duty, regardless of length

  7  of service, and having contributed to the municipal police

  8  officers' retirement trust fund for 10 years or more may

  9  retire from the service of the city under the plan if, prior

10  to the police officer's normal retirement date, he or she

11  becomes totally and permanently disabled as defined in

12  subsection (2) by reason of any cause other than a cause set

13  out in subsection (3) on or after the effective date of the

14  plan.  Such retirement shall herein be referred to as

15  disability retirement. The provisions for disability other

16  than line-of-duty disability shall not apply to a member who

17  has reached early or normal retirement age.

18         (2)  A police officer will be considered totally

19  disabled if, in the opinion of the board of trustees, he or

20  she is wholly prevented from rendering useful and efficient

21  service as a police officer; and a police officer will be

22  considered permanently disabled if, in the opinion of the

23  board of trustees, such police officer is likely to remain so

24  disabled continuously and permanently from a cause other than

25  as specified in subsection (3).

26         (3)  A police officer will not be entitled to receive

27  any disability retirement income if the disability is a result

28  of:

29         (a)  Excessive and habitual use by the police officer

30  of drugs, intoxicants or narcotics;

31


                                  97

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (b)  Injury or disease sustained by the police officer

  2  while willfully and illegally participating in fights, riots,

  3  civil insurrections or while committing a crime;

  4         (c)  Injury or disease sustained by the police officer

  5  while serving in any armed forces;

  6         (d)  Injury or disease sustained by the police officer

  7  after employment has terminated;

  8         (e)  Injury or disease sustained by the police officer

  9  while working for anyone other than the city and arising out

10  of such employment.

11         (4)  No police officer shall be permitted to retire

12  under the provisions of this section until examined by a duly

13  qualified physician or surgeon, to be selected by the board of

14  trustees for that purpose, and is found to be disabled in the

15  degree and in the manner specified in this section.  Any

16  police officer retiring under this section may shall be

17  examined periodically by a duly qualified physician or surgeon

18  or board of physicians and surgeons to be selected by the

19  board of trustees for that purpose, to determine if such

20  disability has ceased to exist.

21         (5)  The benefit payable to a police officer who

22  retires from the service of the city with a total and

23  permanent disability as a result of a disability commencing

24  prior to the police officer's normal retirement date is the

25  monthly income payable for 10 years certain and life for

26  which, if the police officer's disability occurred in the line

27  of duty, his or her monthly benefit shall be the accrued

28  retirement benefit, but shall not be less than 42 percent of

29  his or her average monthly compensation as of the police

30  officer's disability retirement date.  If after 10 years of

31  service the disability is other than in the line of duty, the


                                  98

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  police officer's monthly benefit shall be the accrued normal

  2  retirement benefit, but shall not be less than 25 percent of

  3  his or her average monthly compensation as of the police

  4  officer's disability retirement date.

  5         (6)(a)  The monthly retirement income to which a police

  6  officer is entitled in the event of his or her disability

  7  retirement shall be payable on the first day of the first

  8  month after the board of trustees determines such entitlement.

  9  However, the monthly retirement income shall be payable as of

10  the date the board determines such entitlement, and any

11  portion due for a partial month shall be paid together with

12  the first payment.

13         (b)  The last payment will be,:

14         1.  if the police officer recovers from the disability

15  prior to his or her normal retirement date, the payment due

16  next preceding the date of such recovery, or,

17         2.  if the police officer dies without recovering from

18  his or her disability or attains his or her normal retirement

19  date while still disabled, the payment due next preceding

20  death or the 120th monthly payment, whichever is later. In

21  lieu of the benefit payment as provided in this subsection, a

22  police officer may select an optional form as provided in s.

23  185.161.

24         (c)  Any monthly retirement income payments due after

25  the death of a disabled police officer shall be paid to the

26  police officer's designated beneficiary (or beneficiaries) as

27  provided in ss. 185.162 and 185.21.

28         (7)  If the board of trustees finds that a police

29  officer who is receiving a disability retirement income is, at

30  any time prior to the police officer's normal retirement date,

31  no longer disabled, as provided herein, the board of trustees


                                  99

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  shall direct that the disability retirement income be

  2  discontinued.  Recovery from disability as used herein shall

  3  mean the ability of the police officer to render useful and

  4  efficient service as a police officer.

  5         (8)  If the police officer recovers from disability and

  6  reenters the service of the city as a police officer, his or

  7  her service will be deemed to have been continuous, but the

  8  period beginning with the first month for which the police

  9  officer received a disability retirement income payment and

10  ending with the date he or she reentered the service of the

11  city may will not be considered as credited service for the

12  purposes of the plan.

13         Section 60.  Section 185.185, Florida Statutes, is

14  created to read:

15         185.185  False, misleading, or fraudulent statements

16  made to obtain public retirement benefits prohibited;

17  penalty.--

18         (1)  It is unlawful for a person to willfully and

19  knowingly make, or cause to be made, or to assist, conspire

20  with, or urge another to make, or cause to be made, any false,

21  fraudulent, or misleading oral or written statement or

22  withhold or conceal material information to obtain any benefit

23  available under a retirement plan receiving funding under this

24  chapter.

25         (2)(a)  A person who violates subsection (1) commits a

26  misdemeanor of the first degree, punishable as provided in s.

27  775.082 or s. 775.083.

28         (b)  In addition to any applicable criminal penalty,

29  upon conviction for a violation described in subsection (1), a

30  participant or beneficiary of a pension plan receiving funding

31  under this chapter may, in the discretion of the board of


                                 100

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  trustees, be required to forfeit the right to receive any or

  2  all benefits to which the person would otherwise be entitled

  3  under this chapter.  For purposes of this paragraph,

  4  "conviction" means a determination of guilt that is the result

  5  of a plea or trial, regardless of whether adjudication is

  6  withheld.

  7         Section 61.  Section 185.19, Florida Statutes, is

  8  amended to read:

  9         185.19  Separation from municipal service;

10  refunds.--For any municipality, chapter plan, local law

11  municipality, or local law plan under this chapter:

12         (1)  If Should any police officer leaves leave the

13  service of the municipality before accumulating aggregate time

14  of 10 years toward retirement and before being eligible to

15  retire under the provisions of this chapter, such police

16  officer shall be entitled to a refund of all of his or her

17  contributions made to the municipal police officers'

18  retirement trust fund without interest, less any benefits paid

19  to him or her.

20         (2)  If Should any police officer who has been in the

21  service of the municipality for at least 10 years elects and

22  has contributed to the municipal police officers' retirement

23  trust fund for at least 10 years elect to leave his or her

24  accrued contributions, if contributions are required, in the

25  municipal police officers' retirement trust fund, such police

26  officer upon attaining age 50 years or more may retire at the

27  actuarial equivalent of the amount of such retirement income

28  otherwise payable to him or her, as provided in s. 185.16(4),

29  or, upon attaining age 55 years, may retire as provided in s.

30  185.16(2).

31


                                 101

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 62.  Section 185.191, Florida Statutes, is

  2  amended to read:

  3         185.191  Lump-sum payment of small retirement

  4  income.--For any municipality, chapter plan, local law

  5  municipality, or local law plan under this chapter,

  6  notwithstanding any provision of the plan to the contrary, if

  7  the monthly retirement income payable to any person entitled

  8  to benefits hereunder is less than $100 $30 or if the

  9  single-sum value of the accrued retirement income is less than

10  $2,500 $750 as of the date of retirement or termination of

11  service, whichever is applicable, the board of trustees, in

12  the exercise of its discretion, may specify that the actuarial

13  equivalent of such retirement income be paid in a lump sum.

14         Section 63.  Section 185.21, Florida Statutes, is

15  amended to read:

16         185.21  Death prior to retirement; refunds of

17  contributions or payment of death benefits.--For any

18  municipality, chapter plan, local law municipality, or local

19  law plan under this chapter:

20         (1)  If a Should any police officer dies die before

21  being eligible to retire under the provisions of this chapter,

22  the heirs, legatees, beneficiaries, or personal

23  representatives representative of such deceased police officer

24  shall be entitled to a refund of 100 percent, without

25  interest, of the contributions made to the municipal police

26  officers' retirement trust fund by such deceased police

27  officer or, in the event an annuity or life insurance contract

28  has been purchased by the board on such police officer, then

29  to the death benefits available under such life insurance or

30  annuity contract, subject to the limitations on such death

31  benefits set forth in s. 185.061 whichever amount is greater.


                                 102

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (2)  If a any police officer having at least 10 years

  2  of credited service dies prior to retirement but has at least

  3  10 years of contributing service, his or her beneficiary is

  4  entitled to the benefits otherwise payable to the police

  5  officer at early or normal retirement age.

  6

  7  In the event that a the death benefit paid by a life insurance

  8  company exceeds the limit set forth in s. 185.061(6), the

  9  excess of the death benefit over the limit shall be paid to

10  the municipal police officers' retirement trust fund.

11  However, death the benefits as provided pursuant to in s.

12  112.19 or any other state or federal law shall not be included

13  in the calculation of as death or retirement benefits provided

14  under the provisions of this chapter.

15         Section 64.  Section 185.221, Florida Statutes, is

16  amended to read:

17         185.221  Annual report to Division of Retirement;

18  actuarial valuations reports.--For any municipality, chapter

19  plan, local law municipality, or local law plan under this

20  chapter, the board of trustees for every chapter plan and

21  local law plan shall submit the following reports to the

22  division:

23         (1)  With respect to chapter plans:

24         (a)(1)  Each year by February 1, the chair or secretary

25  of each municipal police officers' retirement trust fund

26  operating a chapter plan shall file a report with the division

27  which contains:

28         1.(a)  A statement of whether in fact the municipality

29  is within the provisions of s. 185.03.

30         2.(b)  An independent audit by a certified public

31  accountant if the fund has $250,000 $100,000 or more in


                                 103

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  assets, or a certified statement of accounting if the fund has

  2  less than $250,000 $100,000 in assets, for the most recent

  3  plan fiscal year of the municipality, showing a detailed

  4  listing of assets and methods used to value them and a

  5  statement of all income and disbursements during the year.

  6  Such income and disbursements shall be reconciled with the

  7  assets at the beginning and end of the year.

  8         3.(c)  A statistical exhibit showing the total number

  9  of police officers on the force of the municipality, the

10  number included in the retirement plan and the number

11  ineligible classified according to the reasons for their being

12  ineligible, and the number of disabled and retired police

13  officers and their beneficiaries receiving pension payments

14  and the amounts of annual retirement income or pension

15  payments being received by them.

16         4.(d)  A statement of the amount the municipality, or

17  other income source, has contributed to the retirement plan

18  for the most recent plan year ending with the preceding

19  December 31 and the amount the municipality will contribute to

20  the retirement plan for the current plan calendar year.

21         5.(e)  If any benefits are insured with a commercial

22  insurance company, the report shall include a statement of the

23  relationship of the insured benefits to the benefits provided

24  by this chapter.  This report shall also contain information

25  about the insurer, basis of premium rates and mortality table,

26  interest rate and method used in valuing retirement benefits.

27         (b)(2)  In addition to annual reports provided under

28  paragraph (a), by February 1 of each triennial year, an

29  actuarial valuation of the chapter plan must be made by the

30  division at least once every 3 years, as provided in s.

31  112.63, commencing 3 years from the last actuarial valuation


                                 104

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  of the plan or system for existing plans, or commencing 3

  2  years from the issuance of the initial actuarial impact

  3  statement submitted under s. 112.63 for newly created plans.

  4  To that end By February 1 of each triennial year beginning

  5  with February 1, 1986, and at least every 3 years commencing

  6  from the last actuarial report of the plan or system or from

  7  February 1, 1987, if no actuarial report has been issued

  8  within the 3-year period prior to February 1, 1986, the chair

  9  of the board of trustees for each municipal police officers'

10  retirement trust fund operating under a chapter plan shall

11  report to the division such data as that the division needs to

12  complete an actuarial valuation of each fund.  The forms for

13  each municipality shall be supplied by the division.  The

14  expense of the actuarial valuation shall be borne by the

15  municipal police officers' retirement trust fund established

16  by s. 185.10. The requirements of this section are

17  supplemental to the actuarial valuations necessary to comply

18  with ss. 11.45 and 218.32.

19         (2)  With respect to local law plans:

20         (a)  Each year, on or before March 15, the trustees of

21  the retirement plan shall submit the following information to

22  the division in order for the retirement plan of such

23  municipality to receive a share of the state funds for the

24  then-current calendar year:

25         1.  A certified copy of each and every instrument

26  constituting or evidencing the plan.  This includes the formal

27  plan, including all amendments, the trust agreement, copies of

28  all insurance contracts, and formal announcement materials.

29         2.  An independent audit by a certified public

30  accountant if the fund has $250,000 or more in assets, or a

31  certified statement of accounting if the fund has less than


                                 105

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  $250,000 in assets, for the most recent plan year, showing a

  2  detailed listing of assets and a statement of all income and

  3  disbursements during the year.  Such income and disbursements

  4  must be reconciled with the assets at the beginning and end of

  5  the year.

  6         3.  A certified statement listing the investments of

  7  the plan and a description of the methods used in valuing the

  8  investments.

  9         4.  A statistical exhibit showing the total number of

10  police officers, the number included in the plan, and the

11  number ineligible classified according to the reasons for

12  their being ineligible, and the number of disabled and retired

13  police officers and their beneficiaries receiving pension

14  payments and the amounts of annual retirement income or

15  pension payments being received by them.

16         5.  A certified statement describing the methods,

17  factors, and actuarial assumptions used in determining the

18  cost.

19         6.  A certified statement by an enrolled actuary

20  showing the results of the latest actuarial valuation of the

21  plan and a copy of the detailed worksheets showing the

22  computations used in arriving at the results.

23         7.  A statement of the amount the municipality, or

24  other income source, has contributed toward the plan for the

25  most recent plan year and will contribute toward the plan for

26  the current plan year.

27

28  When any of the items required hereunder is identical to the

29  corresponding item submitted for a previous year, it is not

30  necessary for the trustees to submit duplicate information if

31  they make reference to the item in the previous year's report.


                                 106

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (b)  In addition to annual reports provided under

  2  paragraph (a), an actuarial valuation of the retirement plan

  3  must be made at least once every 3 years, as provided in s.

  4  112.63, commencing 3 years from the last actuarial valuation

  5  of the plan or system for existing plans, or commencing 3

  6  years from issuance of the initial actuarial impact statement

  7  submitted under s. 112.63 for newly created plans.  Such

  8  valuation shall be prepared by an enrolled actuary, subject to

  9  the following conditions:

10         1.  The assets shall be valued as provided in s.

11  112.625(7).

12         2.  The cost of the actuarial valuation must be paid by

13  the individual police officer's retirement trust fund or by

14  the sponsoring municipality.

15         3.  A report of the valuation, including actuarial

16  assumptions and type and basis of funding, shall be made to

17  the division within 3 months after the date of the valuation.

18  If any benefits are insured with a commercial insurance

19  company, the report must include a statement of the

20  relationship of the retirement plan benefits to the insured

21  benefits, the name of the insurer, the basis of premium rates,

22  and the mortality table, interest rate, and method used in

23  valuing the retirement benefits.

24         Section 65.  Subsection (1) of section 185.23, Florida

25  Statutes, 1998 Supplement, is amended to read:

26         185.23  Duties of Division of Retirement; rulemaking;

27  investment by State Board of Administration.--

28         (1)  The division shall be responsible for the daily

29  oversight and monitoring for actuarial soundness of the

30  municipal police officers' retirement plans, whether chapter

31  or local law plans, established under this chapter, for


                                 107

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  receiving and holding the premium tax moneys collected under

  2  this chapter, and, upon determining compliance with the

  3  provisions on this chapter, for disbursing those moneys to the

  4  municipal police officers' retirement plans.  The funds to pay

  5  the expenses for such administration shall be annually

  6  appropriated from the interest and investment income earned on

  7  moneys deposited in the trust fund.

  8         Section 66.  Section 185.25, Florida Statutes, is

  9  amended to read:

10         185.25  Exemption from execution.--For any

11  municipality, chapter plan, local law municipality, or local

12  law plan under this chapter, the pensions, annuities, or any

13  other benefits accrued or accruing to any person under any

14  municipality, chapter plan, local law municipality, or local

15  law plan under the provisions of this chapter and the

16  accumulated contributions and the cash securities in the funds

17  created under this chapter are hereby exempted from any state,

18  county or municipal tax of the state and shall not be subject

19  to execution or attachment or to any legal process whatsoever

20  and shall be unassignable.

21         Section 67.  Section 185.27, Florida Statutes, is

22  repealed.

23         Section 68.  Section 185.29, Florida Statutes, is

24  repealed.

25         Section 69.  Section 185.30, Florida Statutes, is

26  amended to read:

27         185.30  Depository for retirement fund.--For any

28  municipality, chapter plan, local law municipality, or local

29  law plan under this chapter, all funds and securities of the

30  municipal police officers' retirement trust fund of any

31  municipality, chapter plan, local law municipality, or local


                                 108

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  law plan under this chapter may be deposited by the board of

  2  trustees with the treasurer of the municipality acting in a

  3  ministerial capacity only, who shall be liable in the same

  4  manner and to the same extent as he or she is liable for the

  5  safekeeping of funds for the municipality.  However, any funds

  6  and securities so deposited with the treasurer of the

  7  municipality shall be kept in a separate fund by the municipal

  8  treasurer or clearly identified as such funds and securities

  9  of the municipal police officers' retirement trust fund.  In

10  lieu thereof, the board of trustees shall deposit the funds

11  and securities of the municipal police officers' retirement

12  trust fund in a qualified public depository as defined in s.

13  280.02, which depository with regard to such funds and

14  securities shall conform to and be bound by all of the

15  provisions of chapter 280.

16         Section 70.  Section 185.31, Florida Statutes, is

17  amended to read:

18         185.31  Municipalities and boards independent of other

19  municipalities and boards and of each other.--In the

20  enforcement and in the interpretation of the provisions of

21  this chapter for any municipality, chapter plan, local law

22  municipality, or local law plan under this chapter, each

23  municipality shall be independent of any other municipality,

24  and the board of trustees of the municipal police officers'

25  retirement trust fund of each municipality shall function for

26  the municipality which they are to serve as trustees. Each

27  board of trustees shall be independent of each municipality

28  for which it serves as board of trustees to the extent

29  required to accomplish the intent, requirements, and

30  responsibilities provided for in this chapter.

31


                                 109

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         Section 71.  Section 185.32, Florida Statutes, is

  2  repealed.

  3         Section 72.  Section 185.34, Florida Statutes, is

  4  amended to read:

  5         185.34  Disability in line of duty.--For any

  6  municipality, chapter plan, local law municipality, or local

  7  law plan under this chapter, any condition or impairment of

  8  health of any and all police officers employed in the state

  9  caused by tuberculosis, hypertension, heart disease, or

10  hardening of the arteries, resulting in total or partial

11  disability or death, shall be presumed to be accidental and

12  suffered in line of duty unless the contrary be shown by

13  competent evidence.  Any condition or impairment of health

14  caused directly or proximately by exposure, which exposure

15  occurred in the active performance of duty at some definite

16  time or place without willful negligence on the part of the

17  police officer, resulting in total or partial disability,

18  shall be presumed to be accidental and suffered in the line of

19  duty, provided that such police officer shall have

20  successfully passed a physical examination upon entering such

21  service, which physical examination including

22  electrocardiogram failed to reveal any evidence of such

23  condition, and, further, that such presumption shall not apply

24  to benefits payable under or granted in a policy of life

25  insurance or disability insurance.  This section shall be

26  applicable to all police officers employed in this state only

27  with reference to pension and retirement benefits under this

28  chapter.

29         Section 73.  Section 185.341, Florida Statutes, is

30  amended to read:

31


                                 110

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         185.341  Discrimination in benefit formula prohibited;

  2  restrictions regarding designation of joint annuitants.--For

  3  any municipality, chapter plan, local law municipality, or

  4  local law plan under this chapter:

  5         (1)  No plan established under the provisions of this

  6  chapter and participating in the distribution of premium tax

  7  moneys as provided in this chapter shall discriminate in its

  8  benefit formula based on color, national origin, sex, or

  9  marital status.; however,

10         (2)(a)  If a plan offers a joint annuitant option and

11  the member selects such option, or if a the plan specifies

12  that the member's spouse is to receive the benefits that which

13  continue to be payable upon the death of the member, then, in

14  both of these cases, after retirement the benefits have

15  commenced, a retired member may change the designation of

16  joint annuitant or beneficiary only twice.

17         (b)  Any If said retired member who desires to change

18  the joint annuitant or beneficiary, he or she shall file with

19  the board of trustees of his or her plan a notarized notice of

20  such change either by registered letter or on such a form as

21  is provided by the administrator of the plan. Upon receipt of

22  a completed change of joint annuitant form or such other

23  notice, the board of trustees shall adjust the member's

24  monthly benefit by the application of actuarial tables and

25  calculations developed to ensure that the benefit paid is the

26  actuarial equivalent of the present value of the member's

27  current benefit.  Nothing herein shall preclude a plan from

28  actuarially adjusting benefits or offering options based upon

29  sex, age, early retirement, or disability.

30         (3)  Eligibility for coverage under the plan must be

31  based upon length of service, or attained age, or both, and


                                 111

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  benefits must be determined by a nondiscriminatory formula

  2  based upon:

  3         (a)  Length of service and compensation; or

  4         (b)  Length of service.

  5         Section 74.  Section 185.35, Florida Statutes, is

  6  amended to read:

  7         185.35  Municipalities having their own pension plans

  8  for police officers.--For any municipality, chapter plan,

  9  local law municipality, or local law plan under this chapter,

10         (1)  in order for municipalities with their own pension

11  plans for police officers or for police officers, and

12  firefighters where included, other employees to participate in

13  the distribution of the tax fund established pursuant to s. in

14  ss. 185.07, 185.08, local law plans and 185.09, their

15  retirement funds must meet the minimum benefits and minimum

16  standards set forth in this chapter each of the following

17  standards:

18         (1)  PREMIUM TAX INCOME.--If a municipality has a

19  pension plan for police officers, or for police officers and

20  firefighters where included, which, in the opinion of the

21  division, meets the minimum benefits and minimum standards set

22  forth in this chapter, the board of trustees of the pension

23  plan, as approved by a majority of police officers of the

24  municipality, may:

25         (a)  Place the income from the premium tax in s. 185.08

26  in such pension plan for the sole and exclusive use of its

27  police officers, or its police officers and firefighters where

28  included, where it shall become an integral part of that

29  pension plan and shall be used to pay extra benefits to the

30  police officers included in that pension plan; or

31


                                 112

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (b)  May place the income from the premium tax in s.

  2  185.08 in a separate supplemental plan to pay extra benefits

  3  to the police officers, or police officers and firefighters

  4  where included, participating in such separate supplemental

  5  plan.

  6

  7  The premium tax provided by this chapter shall in all cases be

  8  used in its entirety to provide extra benefit to police

  9  officers, or to police officers and firefighters, where

10  included.  However, local law plans in effect on October 1,

11  1998, shall be required to comply with the minimum benefit

12  provisions of this chapter only to the extent that additional

13  premium tax revenues become available to incrementally fund

14  the cost of such compliance as provided in s. 185.16(2). When

15  a plan is in compliance with such minimum benefit provisions,

16  as subsequent additional tax revenues become available, they

17  shall be used to provide extra benefits. For the purpose of

18  this chapter, "additional premium tax revenues" means revenues

19  received by a municipality pursuant to s. 185.10 that exceed

20  the amount received for calendar year 1997 and the term "extra

21  benefits" means benefits in addition to or greater than those

22  provided to general employees of the municipality. Local law

23  plans created by special act before May 23, 1939, shall be

24  deemed to comply with this chapter.

25         (2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.--

26         (a)  The plan must be for the purpose of providing

27  retirement and disability income for police officers.

28         (b)  The normal retirement age, if any, must not be

29  higher than age 60.

30

31


                                 113

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (c)  If the plan provides for a stated period of

  2  service as a requirement to receive a retirement income, that

  3  period must not be higher than 30 years.

  4         (d)  The benefit formula to determine the amount of

  5  monthly pension must be equal to at least 2 percent for each

  6  year of the police officer's credited service, multiplied by

  7  his or her average final compensation. However, if current

  8  state contributions pursuant to this chapter are not adequate

  9  to fund the additional benefits to meet the minimum

10  requirements in this chapter, only increment increases shall

11  be required as state moneys are adequate to provide.  Such

12  increments shall be provided as state moneys become available.

13         (e)  If a ceiling on the monthly payment is stated in

14  the plan, it should be no lower than $100.

15         (f)  Death or survivor benefits and disability benefits

16  may be incorporated into the plan as the municipality wishes

17  but in no event should the single-sum value of such benefits

18  as of the date of termination of service because of death or

19  disability exceed:

20         1.  One hundred times the estimated normal monthly

21  retirement income, based on the assumption that the present

22  rate of compensation continues without change to normal

23  retirement date,

24         2.  Twice the annual rate of compensation as of the

25  date of termination of service, or

26         3.  The single-sum value of the accrued deferred

27  retirement income (beginning at normal retirement date) at

28  date of termination of service,

29

30

31


                                 114

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  whichever is greatest; however, nothing in this paragraph

  2  shall require any reduction in death or disability benefits

  3  provided by a retirement plan in effect on July 1, 1959.

  4         (g)  Eligibility for coverage under the plan must be

  5  based upon length of service, or attained age, or both, and

  6  benefits must be determined by a nondiscriminatory formula

  7  based upon:

  8         1.  Length of service and compensation, or

  9         2.  Length of service.

10

11  The retirement plan shall require participants to contribute

12  toward the cost of the plan an amount which shall not be less

13  than 1 percent of salary, and it must set forth the

14  termination rights, if any, of an employee in the event of the

15  separation or withdrawal of an employee before retirement.

16         (h)  An actuarial valuation of the retirement plan must

17  be made at least once in every 5 years commencing with

18  December 31, 1963, and at least every 3 years commencing from

19  the last actuarial report of the plan or system or from

20  October 1, 1986, if no actuarial report has been issued within

21  the 3 years prior to October 1, 1983.  Such valuation shall be

22  prepared by an enrolled actuary.

23         1.  The cost of the actuarial valuation must be paid by

24  the individual retirement fund or by the municipality.

25         2.  A report of the valuation, including actuarial

26  assumptions and type and basis of funding, shall be made to

27  the division within 3 months after the date of valuation.  If

28  any benefits are insured with a commercial insurance company,

29  the report shall include a statement of the relationship of

30  the retirement plan benefits to the insured benefits and, in

31  addition, the name of the insurer, basis of premium rates, and


                                 115

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  the mortality table, interest rate, and method used in valuing

  2  retirement benefits.

  3         (i)  Commencing on July 1, 1964, the municipality shall

  4  contribute to the plan annually an amount which together with

  5  the contributions from the police officers, the amount derived

  6  from the premium tax provided in s. 185.08, and other income

  7  sources will be sufficient to meet the normal cost of the plan

  8  and to fund the actuarial deficiency over a period not longer

  9  than 40 years.

10         (j)  No retirement plan or amendment to a retirement

11  plan shall be proposed for adoption unless the proposed plan

12  or amendment contains an actuarial estimate of the costs

13  involved.  No such proposed plan or proposed plan change shall

14  be adopted without the approval of the municipality or, where

15  permitted, the Legislature. Copies of the proposed plan or

16  proposed plan change and the actuarial impact statement of the

17  proposed plan or proposed plan change shall be furnished to

18  the division prior to the last public hearing thereon.  Such

19  statement shall also indicate whether the proposed plan or

20  proposed plan change is in compliance with s. 14, Art. X of

21  the State Constitution and those provisions of part VII of

22  chapter 112 which are not expressly provided in this chapter.

23  Notwithstanding any other provision, only those local law

24  plans created by Special Act of legislation prior to May 23,

25  1939, shall be deemed to meet the minimum benefits and minimum

26  standards only in this chapter.

27         (k)  Each year on or before March 15, the trustees of

28  the retirement plan must submit the following information to

29  the division in order for the retirement plan of such

30  municipality to receive a share of state funds for the then

31  current calendar year; when any of these items would be


                                 116

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  identical with the corresponding item submitted for a previous

  2  year, it is not necessary for the trustees to submit duplicate

  3  information if they make reference to the item in such

  4  previous year's report:

  5         1.  A certified copy of each and every instrument

  6  constituting or evidencing the plan.

  7         2.  An independent audit by a certified public

  8  accountant if the fund has $100,000 or more in assets, or a

  9  certified statement of accounting if the fund has less than

10  $100,000 in assets, for the most recent fiscal year of the

11  municipality showing a detailed listing of assets and a

12  statement of all income and disbursements during the year.

13  Such income and disbursements must be reconciled with the

14  assets at the beginning and end of the year.

15         3.  A certified statement listing the investments of

16  the plan and a description of the methods used in valuing the

17  investments.

18         4.  A statistical exhibit showing the total number of

19  police officers, the number included in the plan, and the

20  number ineligible classified according to the reasons for

21  their being ineligible.

22         5.  A statement of the amount the municipality and

23  other income sources have contributed toward the plan or will

24  contribute toward the plan for the current calendar year.

25         (2)  If a municipality has a police officers'

26  retirement plan which, in the opinion of the division, meets

27  the standards set forth in subsection (1), the board of

28  trustees of the pension plan, as approved by a majority of the

29  police officers of the municipality affected, or the official

30  pension committee, as approved by a majority of the police

31  officers of the municipality affected, may place the income


                                 117

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  from the premium tax in s. 185.08 in its existing pension fund

  2  for the sole and exclusive use of its police officers (or for

  3  firefighters and police officers where included), where it

  4  shall become an integral part of that fund, or may use the

  5  income to pay extra benefits to the police officers included

  6  in the fund.

  7         (3)  Notwithstanding any other provision, with respect

  8  to any supplemental plan municipality:

  9         (a)  Section 185.02(4)(a) shall not apply, and a local

10  law plan and a supplemental plan may continue to use their

11  definition of compensation or salary in existence on the

12  effective date of this act.

13         (b)  Section 185.05(1)(b) shall not apply, and a local

14  law plan and a supplemental plan shall continue to be

15  administered by a board or boards of trustees numbered,

16  constituted, and selected as the board or boards were

17  numbered, constituted, and selected on January 1, 1997.

18         (c)  The election set forth in paragraph (1)(b) shall

19  be deemed to have been made.

20         (4)(3)  The retirement plan setting forth the benefits

21  and the trust agreement, if any, covering the duties and

22  responsibilities of the trustees and the regulations of the

23  investment of funds must be in writing and copies made

24  available to the participants and to the general public.

25         (4)(a)  The membership of the board of trustees for

26  pension plans operated pursuant to this section shall be as

27  follows:

28         1.  If a municipality has a pension plan for police

29  officers only, the provisions of s. 185.05 shall apply.

30         2.  If a municipality has a pension plan for police

31  officers and firefighters, the provisions of s. 185.05 shall


                                 118

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  apply, except that two members of the board shall be police

  2  officers or firefighters who shall be elected by a majority of

  3  the police officers and firefighters who are members of the

  4  plan.

  5         3.  If a municipality has a pension plan for police

  6  officers and general employees, at least one member of the

  7  board shall be a police officer who shall be elected by a

  8  majority of the police officers who are members of the plan.

  9         4.  If a municipality has a pension plan for police

10  officers, firefighters, and general employees, at least one

11  member of the board shall be a police officer or firefighter

12  who shall be elected by a majority of the police officers and

13  firefighters who are members of the plan.

14         (b)  Nothing in this section shall permit the reduction

15  of the membership percentage of police officers, or police

16  officers and firefighters where a joint or mixed fund exists,

17  on any board of trustees operating a pension plan pursuant to

18  this section on June 30, 1986.

19         (5)  The provisions of this section and s. 185.05 may

20  not be changed by a participating municipality operating a

21  pension plan pursuant to this section.

22         Section 75.  Section 185.36, Florida Statutes, is

23  repealed.

24         Section 76.  Section 185.37, Florida Statutes, is

25  amended to read:

26         185.37  Termination of plan and distribution of

27  fund.--For any municipality, chapter plan, local law

28  municipality, or local law plan under this chapter, the plan

29  may be terminated by the municipality. Upon termination of the

30  plan by the municipality for any reason, or because of a

31  transfer, merger, or consolidation of governmental units,


                                 119

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  services, or functions as provided in chapter 121, or upon

  2  written notice to the board of trustees by the municipality

  3  that contributions under the plan are being permanently

  4  discontinued, the rights of all employees to benefits accrued

  5  to the date of such termination or discontinuance and the

  6  amounts credited to the employees' accounts are

  7  nonforfeitable. The fund shall be apportioned and distributed

  8  in accordance with the following procedures:

  9         (1)  The board of trustees shall determine the date of

10  distribution and the asset value to be distributed, after

11  taking into account the expenses of such distribution.

12         (2)  The board of trustees shall determine the method

13  of distribution of the asset value, that is, whether

14  distribution shall be by payment in cash, by the maintenance

15  of another or substituted trust fund, by the purchase of

16  insured annuities, or otherwise, for each police officer

17  entitled to benefits under the plan, as specified in

18  subsection (3).

19         (3)  The board of trustees shall apportion the asset

20  value as of the date of termination in the manner set forth in

21  this subsection, on the basis that the amount required to

22  provide any given retirement income shall mean the actuarially

23  computed single-sum value of such retirement income, except

24  that if the method of distribution determined under subsection

25  (2) involves the purchase of an insured annuity, the amount

26  required to provide the given retirement income shall mean the

27  single premium payable for such annuity.

28         (a)  Apportionment shall first be made in respect of

29  each retired police officer receiving a retirement income

30  hereunder on such date, each person receiving a retirement

31  income on such date on account of a retired (but since


                                 120

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  deceased) police officer, and each police officer who has, by

  2  such date, become eligible for normal retirement but has not

  3  yet retired, in the amount required to provide such retirement

  4  income, provided that, if such asset value is less than the

  5  aggregate of such amounts, such amounts shall be

  6  proportionately reduced so that the aggregate of such reduced

  7  amounts will be equal to such asset value.

  8         (b)  If there is any asset value remaining after the

  9  apportionment under paragraph (a), apportionment shall next be

10  made in respect of each police officer in the service of the

11  municipality on such date who has completed at least 10 years

12  of credited service, in who has contributed to the municipal

13  police officers' retirement trust fund for at least 10 years,

14  and who is not entitled to an apportionment under paragraph

15  (a), in the amount required to provide the actuarial

16  equivalent of the accrued normal retirement income, based on

17  the police officer's credited service and earnings to such

18  date, and each former participant then entitled to a benefit

19  under the provisions of s. 185.19 who has not by such date

20  reached his or her normal retirement date, in the amount

21  required to provide the actuarial equivalent of the accrued

22  normal retirement income to which he or she is entitled under

23  s. 185.19, provided that, if such remaining asset value is

24  less than the aggregate of the amounts apportioned hereunder,

25  such latter amounts shall be proportionately reduced so that

26  the aggregate of such reduced amounts will be equal to such

27  remaining asset value.

28         (c)  If there is an asset value after the

29  apportionments under paragraphs (a) and (b), apportionment

30  shall lastly be made in respect of each police officer in the

31  service of the municipality on such date who is not entitled


                                 121

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  to an apportionment under paragraphs (a) and (b) in the amount

  2  equal to the police officer's total contributions to the plan

  3  to date of termination, provided that, if such remaining asset

  4  value is less than the aggregate of the amounts apportioned

  5  hereunder, such latter amounts shall be proportionately

  6  reduced so that the aggregate of such reduced amounts will be

  7  equal to such remaining asset value.

  8         (d)  In the event that there is asset value remaining

  9  after the full apportionment specified in paragraphs (a), (b),

10  and (c), such excess shall be returned to the municipality,

11  less return to the state of the state's contributions,

12  provided that, if the excess is less than the total

13  contributions made by the municipality and the state to date

14  of termination of the plan, such excess shall be divided

15  proportionately to the total contributions made by the

16  municipality and the state.

17         (4)  The board of trustees shall distribute, in

18  accordance with the manner of distribution determined under

19  subsection (2), the amounts apportioned under subsection (3).

20

21  If, after a period of 24 months after the date on which the

22  plan terminated or the date on which the board received

23  written notice that the contributions thereunder were being

24  permanently discontinued, the municipality or the board of

25  trustees of the municipal police officers' retirement trust

26  fund affected has not complied with all the provisions in this

27  section, the division shall effect the termination of the fund

28  in accordance with this section.

29         Section 77.  Section 185.38, Florida Statutes, is

30  amended to read:

31


                                 122

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         185.38  Transfer to another state retirement system;

  2  benefits payable.--For any municipality, chapter plan, local

  3  law municipality, or local law plan under this chapter:

  4         (1)  Any police officer who has a vested right to

  5  benefits under a pension plan created pursuant to the

  6  provisions of this chapter and who elects to participate in

  7  another state retirement system may not receive a benefit

  8  under the provisions of the latter retirement system for any

  9  year's service for which benefits are paid under the

10  provisions of the pension plan created pursuant to this

11  chapter.

12         (2)  When every active participant in any pension plan

13  created pursuant to this chapter elects to transfer to another

14  state retirement system, the pension plan created pursuant to

15  this chapter shall be terminated and the assets distributed in

16  accordance with s. 185.37.  If some participants in a pension

17  plan created pursuant to this chapter elect to transfer to

18  another state retirement system and other participants elect

19  to remain in the existing plan created pursuant to this

20  chapter, the plan created pursuant to this chapter shall

21  continue to receive state premium tax moneys remain in effect

22  until fully funded. "Fully funded" means that the present

23  value of all benefits, accrued and projected, is less than the

24  available assets and the present value of future member

25  contributions and future plan sponsor contributions on an

26  actuarial entry age cost funding basis.  The plan shall remain

27  in effect until the last active participant has terminated and

28  shall then be terminated in accordance with s. 185.37.

29         Section 78.  Section 185.39, Florida Statutes, is

30  amended to read:

31         (Substantial rewording of section.  See


                                 123

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         s. 185.39, F.S., for present text.)

  2         185.39  Applicability.--This act applies to all

  3  municipalities, chapter plans, local law municipalities, or

  4  local law plans presently existing or to be created pursuant

  5  to this chapter.  Those plans presently existing pursuant to

  6  s. 185.35 and not in compliance with the provisions of this

  7  act must comply no later than December 31, 1999.  However, the

  8  plan sponsor of any plan established by special act of the

  9  Legislature shall have until July 1, 2000, to comply with the

10  provisions of this act, except as otherwise provided in this

11  act with regard to establishment and election of board

12  members.  The provisions of this act shall be construed to

13  establish minimum standards and minimum benefit levels, and

14  nothing contained in this act or in chapter 185 shall operate

15  to reduce presently existing rights or benefits of any police

16  officer, directly, indirectly, or otherwise.

17         Section 79.  Section 185.40, Florida Statutes, is

18  repealed.

19         Section 80.  Section 185.50, Florida Statutes, is

20  amended to read:

21         185.50  Retiree health insurance subsidy.--For any

22  municipality, chapter plan, local law municipality, or local

23  law plan under this chapter, under the broad grant of home

24  rule powers under the Florida Constitution and chapter 166,

25  municipalities have the authority to establish and administer

26  locally funded health insurance subsidy programs. Pursuant

27  thereto:

28         (1)  PURPOSE.--The purpose of this section is to allow

29  municipalities the option to use premium tax moneys, as

30  provided for under this chapter, to establish and administer

31  health insurance subsidy programs which will provide a monthly


                                 124

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  subsidy payment to retired members of any municipal police

  2  officers' pension trust fund system or plan as provided under

  3  this chapter, or to beneficiaries who are spouses or financial

  4  dependents entitled to receive benefits under such a plan, in

  5  order to assist such retired members or beneficiaries in

  6  paying the costs of health insurance.

  7         (2)  MUNICIPAL RETIREE HEALTH INSURANCE SUBSIDY TRUST

  8  FUNDS; ESTABLISHMENT AND TERMINATION.--

  9         (a)  Any municipality having a municipal police

10  officers' pension trust fund system or plan as provided under

11  this chapter may, in its discretion, establish by ordinance a

12  trust fund to be known as the municipal police officers'

13  retiree health insurance subsidy trust fund.  This fund may be

14  a separate account established for such purpose in the

15  existing municipal police officers' pension fund, provided

16  that all funds deposited in such account are segregated from,

17  and not commingled with, pension funds or other public moneys

18  and that the account otherwise conforms to the requirements of

19  subsection (8). The trust fund shall be used to account for

20  all moneys received and disbursed pursuant to this section.

21         (b)  Prior to the second reading of the ordinance

22  before the municipal legislative body, an actuarial valuation

23  must be performed by an enrolled actuary as defined in s.

24  185.02, and copies of the valuation and the proposed

25  implementing ordinance shall be furnished to the division.

26         (c)  The subsidy program may, at the discretion of the

27  municipal governing body, be permanently discontinued by

28  municipal ordinance at any time, subject to the requirements

29  of any applicable collective bargaining agreement, in the same

30  manner and subject to the same conditions established for plan

31  termination and fund distribution under s. 185.37.


                                 125

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         (3)  FUNDING.--Trust funds established pursuant to this

  2  section shall be funded in the following manner:

  3         (a)  By payment to the fund of an amount equivalent to

  4  one-half of the net increase over the previous tax year in the

  5  premium tax funds provided for in this chapter, said amount to

  6  be established in the implementing ordinance.

  7         (b)  By no less than one-half of 1 percent of the base

  8  salary of each police officer, for so long as the police

  9  officer is employed and covered by a pension plan established

10  pursuant to this chapter. The municipality, with approval of

11  the board of trustees, may increase member contributions if

12  needed to fund benefits greater than the minimums established

13  in this section.

14         (c)  By payment by the municipality, on at least a

15  quarterly basis, of whatever sum is determined necessary to

16  maintain the actuarial soundness of the fund in accordance

17  with s. 112.64.

18

19  Such contributions and payments shall be submitted to the

20  board of trustees of the police officers' pension trust fund,

21  or the plan trustees in the case of local law plans

22  established under s. 185.35, and deposited in the Municipal

23  Police Officers' Retiree Health Insurance Subsidy Trust Fund,

24  in the same manner and subject to the same time constraints as

25  provided under s. 185.11.

26         (4)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

27  SUBSIDY.--A person who has contributed to the Retiree Health

28  Insurance Subsidy Trust Fund and retires under a municipal

29  police officers' pension trust fund system or plan as provided

30  under this chapter, including any local law plan as provided

31  under s. 185.35, or a beneficiary who is a spouse or financial


                                 126

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  dependent entitled to receive benefits under such a plan, is

  2  eligible for health insurance subsidy payments provided under

  3  this section.  However, the fund, with approval of the board

  4  of trustees and the municipality, may provide coverage to

  5  retirees and beneficiaries when the retirees have not

  6  contributed to the fund as provided in subsection (3).

  7  Payment of the retiree health insurance subsidy shall be made

  8  only after coverage for health insurance for the retiree or

  9  beneficiary has been certified in writing to the board of

10  trustees of the municipal police officers' pension trust fund.

11         (5)  RETIREE HEALTH INSURANCE SUBSIDY

12  AMOUNT.--Beginning on the effective date established in the

13  implementing ordinance, each eligible retiree, or beneficiary

14  who is a spouse or financial dependent thereof, shall receive

15  a monthly retiree health insurance subsidy payment equal to

16  the aggregate number of years of service with the

17  municipality, as defined in s. 185.02, completed at the time

18  of retirement multiplied by an amount determined in the

19  implementing ordinance, but no less than $3 for each year of

20  service. Nothing herein shall be construed to restrict the

21  plan sponsor from establishing, in the implementing ordinance,

22  a cap of no less than 30 years upon the number of years'

23  service for which credit will be given toward a health

24  insurance subsidy or a maximum monthly subsidy amount.

25         (6)  PAYMENT OF RETIREE HEALTH INSURANCE

26  SUBSIDY.--Beginning on the effective date established in the

27  implementing ordinance, any monthly retiree health insurance

28  subsidy amount due and payable under this section shall be

29  paid to retired members, or their eligible beneficiaries, by

30  the board of trustees of the police officers' pension trust

31  fund, or the plan trustees in the case of local law plans


                                 127

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  established under s. 185.35, in the same manner as provided by

  2  s. 185.06(1)(c) for drafts upon the pension fund.

  3         (7)  INVESTMENT OF THE TRUST FUND.--The trustees of the

  4  police officers' pension trust fund, or the plan trustees in

  5  the case of local law plans established under s. 185.35, are

  6  hereby authorized to invest and reinvest the funds of the

  7  Municipal Police Officers' Retiree Health Insurance Subsidy

  8  Trust Fund in the same manner and subject to the same

  9  conditions as apply hereunder to the investment of municipal

10  police officers' pension funds under s. 185.06.

11         (8)  DEPOSIT OF PENSION FUNDS.--All funds and

12  securities of the health insurance subsidy fund may be

13  deposited by the board of trustees with the treasurer of the

14  municipality, acting in a ministerial capacity only, who shall

15  be liable in the same manner and to the same extent as he or

16  she is liable for the safekeeping of funds for the

17  municipality.  Any funds so deposited shall be segregated by

18  said treasurer in a separate fund, clearly identified as funds

19  and securities of the health insurance subsidy fund.  In lieu

20  thereof, the board of trustees shall deposit the funds and

21  securities of the health insurance subsidy fund in a qualified

22  public depository as defined in s. 280.02, which shall conform

23  to and be bound by the provisions of chapter 280 with regard

24  to such funds.  In no case shall the funds of the health

25  insurance subsidy fund be deposited in any financial

26  institution, brokerage house trust company, or other entity

27  that is not a public depository as provided by s. 280.02.

28         (9)  SEPARATION FROM SERVICE; REFUNDS.--Any police

29  officer who terminates employment with a municipality having a

30  Municipal Retiree Health Insurance Subsidy Trust Fund system

31  or plan as provided under this section shall be entitled to a


                                 128

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  refund of all employee contributions he or she made to that

  2  trust fund, without interest, regardless of whether he or she

  3  has vested for purposes of retirement.  Any police officer who

  4  has vested for purposes of retirement in the service of the

  5  municipality, and has contributed to the Municipal Police

  6  Officers' Retiree Health Insurance Subsidy Trust Fund for so

  7  long as he or she was eligible to make such contributions,

  8  may, in his or her discretion, elect to leave his or her

  9  accrued contributions in the fund, whereupon, such police

10  officer shall, upon retiring and commencing to draw retirement

11  benefits, receive a health insurance subsidy based upon his or

12  her aggregate number of years of service with the

13  municipality, as defined in s. 185.02.

14         (10)  ADMINISTRATION OF SYSTEM; ACTUARIAL VALUATIONS;

15  AUDITS; RULES; ADMINISTRATIVE COSTS.--The board of trustees of

16  the police officers' pension trust fund, or the plan trustees

17  in the case of local law plans established under s. 185.35,

18  shall be solely responsible for administering the health

19  insurance subsidy trust fund.  Pursuant thereto:

20         (a)  As part of its administrative duties, no less

21  frequently than every 3 years, the board shall have an

22  actuarial valuation of the municipal police officers' retiree

23  health insurance subsidy trust fund prepared as provided in s.

24  112.63 by an enrolled actuary, covering the same reporting

25  period or plan year used for the municipal police officers'

26  pension plan, and shall submit a report of the valuation,

27  including actuarial assumptions and type and basis of funding,

28  to the division.

29         (b)  By February 1 of each year, the trustees shall

30  file a report with the division, containing an independent

31  audit by a certified public accountant if the fund has


                                 129

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  $250,000 $100,000 or more in assets, or a certified statement

  2  of accounting if the fund has less than $250,000 $100,000 in

  3  assets, for the most recent plan fiscal year of the

  4  municipality, showing a detailed listing of assets and methods

  5  used to value them and a statement of all income and

  6  disbursements during the year.  Such income and disbursements

  7  shall be reconciled with the assets at the beginning of and

  8  end of the year.

  9         (c)  The trustees may adopt such rules and regulations

10  as are necessary for the effective and efficient

11  administration of this section.

12         (d)  At the discretion of the plan sponsor, the cost of

13  administration may be appropriated from the trust fund or paid

14  directly by the plan sponsor.

15         (11)  BENEFITS.--Subsidy payments shall be payable

16  under the municipal police officers' retiree health insurance

17  subsidy program only to participants in the program or their

18  beneficiaries.  Such subsidy payments shall not be subject to

19  assignment, execution, or attachment or to any legal process

20  whatsoever, and shall be in addition to any other benefits to

21  which eligible recipients are entitled under any workers'

22  compensation law, pension law, collective bargaining

23  agreement, municipal or county ordinance, or any other state

24  or federal statute.

25         (12)  DISTRIBUTION OF PREMIUM TAXES; COMPLIANCE

26  REQUIRED.--Premium tax dollars for which spending authority is

27  granted under this section shall be distributed from the

28  Police and Firefighters' Premium Tax Trust Fund and remitted

29  annually to municipalities in the same manner as provided

30  under this chapter for police officers' pension funds. Once a

31  health insurance subsidy plan has been implemented by a


                                 130

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1  municipality under this section, in order for the municipality

  2  to participate in the distribution of premium tax dollars

  3  authorized under this section, all provisions of this section,

  4  including state acceptance pursuant to part VII of chapter

  5  112, shall be complied with, and said premium tax dollars may

  6  be withheld for noncompliance.

  7         Section 81.  Section 175.411, Florida Statutes, is

  8  created to read:

  9         175.411  Optional participation.--A municipality or

10  special fire control district may revoke its participation

11  under this chapter by rescinding the legislative act,

12  ordinance or resolution which assesses and imposes the taxes

13  authorized in s. 175.101, and by furnishing a certified copy

14  of such legislative act, ordinance, or resolution to the

15  division. Thereafter, the municipality or special fire control

16  district shall be prohibited from participating under this

17  chapter, and shall not be eligible for future premium tax

18  moneys. Premium tax moneys previously received shall continue

19  to be used for the sole and exclusive benefit of firefighters,

20  or firefighters and police officers where included, and no

21  amendment, legislative act, ordinance, or resolution shall be

22  adopted which shall have the effect of reducing the then

23  vested accrued benefits of the firefighters, retirees, or

24  their beneficiaries. The municipality or special fire control

25  district shall continue to furnish an annual report to the

26  division as provided in s. 175.261. If the municipality or

27  special fire control district subsequently terminates the

28  defined benefit plan, they shall do so in compliance with the

29  provisions of s. 175.361.

30         Section 82.  Section 185.60, Florida Statutes, is

31  created to read:


                                 131

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                    CS/HB 261, First Engrossed



  1         185.60  Optional participation.--A municipality may

  2  revoke its participation under this chapter by rescinding the

  3  legislative act, or ordinance which assesses and imposes taxes

  4  authorized in s. 185.08, and by furnishing a certified copy of

  5  such legislative act, or ordinance to the division.

  6  Thereafter, the municipality shall be prohibited from

  7  participating under this chapter, and shall not be eligible

  8  for future premium tax moneys. Premium tax moneys previously

  9  received shall continue to be used for the sole and exclusive

10  benefit of police officers, or police officers and

11  firefighters where included, and no amendment, legislative

12  act, or ordinance shall be adopted which shall have the effect

13  of reducing the then vested accrued benefits of the police

14  officers, retirees, or their beneficiaries. The municipality

15  shall continue to furnish an annual report to the division as

16  provided in s. 185.221. If the municipality subsequently

17  terminates the defined benefit plan they shall do so in

18  compliance with the provisions of s. 185.37.

19         Section 83.  This act shall take effect upon becoming a

20  law.

21

22

23

24

25

26

27

28

29

30

31


                                 132