SENATE AMENDMENT
Bill No. SB 1996
Amendment No. ___ Barcode 170520
CHAMBER ACTION
Senate House
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11 Senator Crist moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. The City of Tampa is authorized and
18 empowered to enter into a supplemental contract with each and
19 every firefighter or police officer who was an active or
20 contributing member of the City Pension Fund for Firefighters
21 and Police Officers in the City of Tampa on or after the date
22 this act becomes a law, or who may hereafter enter into a
23 pension contract with the City, amending Section 2(D), Section
24 6(3), and Section 27 of the City of Tampa Firefighters and
25 Police Officers Pension Contract as prescribed by Section
26 28-17 of the City of Tampa Code Ordinance No. 4746-A, enacted
27 September 30, 1969 , as amended by section 28-19 of the City
28 of Tampa Code Ordinance No. 6038-A, enacted September 17,
29 1974 pursuant to chapter 74-613, Laws of Florida, as further
30 amended by chapter 92-231, Laws of Florida, chapter 94-463,
31 Laws of Florida, chapter 98-515, Laws of Florida, and chapter
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SENATE AMENDMENT
Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 2000-485, Laws of Florida, to read:
2 Section 2(D) Except as provided by subparagraph
3 2(B)(4) and subparagraph 27(B)(2), the employees covered under
4 this contract shall contribute at the rates set forth below,
5 based upon all of their earnings during each twelve month
6 period commencing on October 1, which contributions shall be
7 deducted from said earnings before the same are paid and shall
8 be promptly deposited in the Fund:
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11 Earnings in Employee
12 Twelve-Month Period Contribution
13 Commencing October 1 Rate
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15 First $4,000 6%
16 Next 1,000 7%
17 Next 1,000 8%
18 Next 1,000 9%
19 Next 1,000 10%
20 Next 1,000 11%
21 Next 1,000 12%
22 Next 2,500 15%
23 Excess over $12,500 25%
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25 If the City's rate of contribution, pursuant to Section 2(B),
26 should exceed forty per centum (40%), the employee
27 contribution scale above shall be increased in the ratio of
28 the City's contribution rate, pursuant to Section 2(B), to 40
29 percent.
30 Commencing for earnings paid the first pay date after
31 January 1, 2002, all mandatory employee contributions to the
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SENATE AMENDMENT
Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 Fund shall be picked-up and paid by the City. Such
2 contributions, although designated as employee contributions,
3 will be paid by the City in lieu of contributions by the
4 employee. The contributions so assumed shall be treated as
5 tax-deferred employer "pick-up" contributions pursuant to
6 Section 414(h) of the Internal Revenue Code. Members shall
7 not have the option of receiving the contributed amounts
8 directly instead of having such contributions paid by the City
9 to the Fund.
10 Section 6(3) That the portfolio, representing the
11 principal or surplus funds of the Pension Fund may be invested
12 in the following securities or other property, real or
13 personal, including, but without being limited to, bonds,
14 notes, or other evidences of indebtedness issued, or assumed
15 or guaranteed in whole or in part by the United States or any
16 of its agencies or instrumentalities; or by the Dominion of
17 Canada or any of its provinces, cities or municipal
18 corporations; any foreign government or political subdivisions
19 or agencies thereof; or by the State of Florida, or by any
20 county, city, school district, municipal corporation, or other
21 political subdivision of the State of Florida, both general
22 and revenue obligations; in mortgages and other interests in
23 realty; or in such corporation bonds, notes, or other
24 evidences of indebtedness, and corporation stocks including
25 common and preferred stocks, of any corporation created or
26 existing under the laws of the United States or any of the
27 states of the United States, or of the Dominion of Canada, of
28 any foreign government or political subdivisions or agencies
29 thereof, provided that in making each and all of such
30 investments the Board of Trustees shall exercise the judgment
31 and care under the circumstances then prevailing which men of
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1 ordinary prudence, discretion, and intelligence exercise in
2 the management of their own funds, not in regard to
3 speculation but in regard to the permanent disposition of
4 their own affairs, not in regard to speculation but in regard
5 to the permanent disposition of their funds, considering the
6 probable income therefrom as well as probable safety of their
7 capital; provided, however, that not more than sixty-five per
8 centum (65%) of said fund, based on the total book value of
9 all investments held, shall be invested at any given time in
10 common stocks, and that not more than five per centum (5%) of
11 said fund shall be invested at any given time in the preferred
12 and common, or either, stock of any one corporation and its
13 affiliates and that not more than ten per centum (10%) of said
14 fund, based on the total book value of all investments held,
15 shall be invested at any given time in the bonds, notes or
16 other evidences of indebtedness of any foreign government or
17 political subdivisions or agencies thereof or corporations
18 created or existing under the laws thereof.
19 Section 27. 13TH CHECK PROGRAM.--Notwithstanding any
20 other provisions of this contract, and subject to the
21 provisions of this section, the 13th Check Program is a
22 program which authorizes the Board of Trustees to establish
23 and make a supplemental pension distribution commencing in
24 January 1999, and in January of each year thereafter, pursuant
25 to the following terms and conditions:
26 (A) Eligibility.--The following persons shall be
27 eligible for the supplemental pension distribution payable no
28 later than June 30, 2002, and each June 30 annually
29 thereafter: in January of each year:
30 (1) All retired members who have terminated employment
31 as a firefighter or police officer in the fire department or
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Amendment No. ___ Barcode 170520
1 police department, respectively, who, on the October 1
2 immediately preceding the June 30 by January in which
3 distributions are to be made, were eligible to receive pension
4 benefits for at least 1 year. For purposes of this section
5 only, a DROP participant shall be considered a retired member
6 and, during the DROP calculation period, a DROP participant
7 shall be eligible for the 13th check benefit, provided that,
8 on the October 1 immediately preceding the June 30 by January
9 in which distributions are to be made, such DROP participant
10 had participated in the DROP for at least 1 year;
11 (2) All qualifying spouses who were eligible to
12 receive pension benefits pursuant to Section 8 or Section 9
13 for at least 1 year on the October 1 immediately preceding the
14 June 30 by January in which distributions are to be made; and
15 (3) All qualifying surviving spouses, who on the
16 October 1 immediately preceding the June 30 by January in
17 which distributions are to be made, were eligible for receipt
18 of Section 8 or Section 9 benefits but who have not received
19 such pension benefits for at least 1 year provided that the
20 deceased member was eligible for receipt of pension benefits
21 on October 1 of the prior year.
22 (B) 13th Check Account.--
23 (1) There is hereby created a 13th check account
24 within the Fund, which shall consist of those employees'
25 contributions set forth in subparagraph 27(B)(2) and the
26 City's contributions set forth in subparagraph 27(B)(3) in
27 excess of those contributions otherwise required by Section 2
28 for the normal annual cost of benefits, other than benefits
29 arising from post retirement adjustments made pursuant to
30 Section 23 and other than benefits arising from the 13th Check
31 Program, plus any interest earnings thereon up to and
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Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 including September 30, 2001. Effective for earnings paid on
2 the first pay date after October 1, 2001, employee
3 contributions to the 13th Check Account shall cease, and the
4 13th Check Account shall be funded by investment returns in
5 excess of 10% (limited to 3%) on the base plan liabilities for
6 persons eligible for the 13th check. For purposes of this
7 Section, the "base plan" shall mean those assets of the Fund
8 excluding the Post Retirement Adjustment Account, DROP account
9 assets, and the 13th check account. The amount available for
10 the 13th check shall be calculated as of fiscal year end
11 commencing September 30, 2001 for the fiscal year ending
12 September 30, 2001 for payment no later than June 30, 2002,
13 and each June 30 annually thereafter; provided, however, the
14 calculation of the amount payable no later than June 30, 2002,
15 shall include employee contributions to the 13th check account
16 for earnings paid through the last pay date immediately prior
17 to October 1, 2001. The City shall not be required to make
18 contributions toward the 13th check program.
19 (2) Notwithstanding any other provision of this
20 contract, commencing October 1, 1998, employees covered under
21 this contract shall continue to contribute pursuant to Section
22 2 at the rates required for employees to fund the normal
23 annual cost of benefits, other than benefits arising from post
24 retirement adjustments made pursuant to Section 23 and other
25 than benefits arising from the 13th check program made
26 pursuant to this section, plus an additional 100 percent of
27 9.874 percent of the full scale contribution rate (FSCR) set
28 forth in Section 2(D) to the 13th check program. Employee
29 contributions to the 13th check shall cease effective for
30 earnings paid on the last pay date immediately prior to
31 October 1, 2001.
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Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 (3) Notwithstanding any other provision of this
2 contract, the City shall contribute:
3 (a) An amount required to fund the normal annual cost
4 of benefits, other than benefits arising from post-retirement
5 adjustments made pursuant to Section 23 and other than
6 benefits arising from the 13th check program made pursuant to
7 this section, plus;
8 (b) Commencing October 1, 2001, to the 13th check
9 program, 134 percent of 9.874 percent of the full scale
10 contribution rate (FSCR) for employees set forth in Section
11 2(D); provided, however, if the sum of the City's contribution
12 for the normal annual cost of benefits plus the 134 percent of
13 9.874 percent of the full scale contribution rate (FSCR) is
14 greater than 134 percent of 28.789 percent of the full scale
15 contribution rate (FSCR), then the City's contribution to the
16 13th check program shall be the positive difference between
17 134 percent of 28.789 percent of the full scale contribution
18 rate (FSCR) and the amount set forth in subparagraph
19 27(B)(3)(a) [134 percent of the normal annual cost of benefits
20 of the full scale contribution rate (FSCR) for employees set
21 forth in Section 2(D)], but no less than 134 percent of 3
22 percent of the full scale contribution rate (FSCR).
23 (4) Notwithstanding any other provision of this
24 contract, the City's contributions to the 13th check program
25 shall not require the City to make additional contributions to
26 the 13th check program to reimburse the 13th check account for
27 the contributions the City would have otherwise made to the
28 13th check program had it contributed thereto for the period
29 of October 1, 1998, through September 30, 2001.
30 (C) Amount of the 13th Check.--The amount of the 13th
31 check shall be determined as follows:
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SENATE AMENDMENT
Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 (1)(a) The amount of the 13th check shall be the same
2 for all retired members, regardless of years of service, age,
3 years retired, or monthly installment.
4 (b) All eligible surviving spouses shall be entitled
5 to 50 percent of what the eligible retired member would have
6 received but for death.
7 (c) If a retired member is eligible on October 1 but
8 dies before payment of the 13th check by in the following June
9 30 January, the retired member's spouse shall receive the full
10 amount of the payment, and if there is no surviving spouse,
11 the retired member's designated beneficiary or beneficiaries,
12 or if none, the retired member's estate shall receive the
13 payment.
14 (2) The Board of Trustees shall establish by rule
15 adopted no later than May 31, 2002, and each May 31
16 thereafter, December 15, 1998, the amount of the 13th check
17 funded pursuant to Section 27(B)(1), subject to the following:
18 (a) The amount of the 13th check, or a method for
19 calculating the amount of the 13th check in a manner that is
20 definitely determinable and in accordance with the
21 requirements of the Internal Revenue Code applicable to a
22 qualified governmental plan; and
23 (b) Certification by the Fund's actuary that the
24 amount of the payment will be funded on a sound actuarial
25 basis as required by Section 14, Article X of the State
26 Constitution.
27 (D) Conflict of Laws.--To the extent that any
28 provision of this section is in conflict with sections
29 112.60-112.67, Florida Statutes, or those provisions of
30 chapters 175 and 185, Florida Statutes, that apply to local
31 law plans established by municipal ordinance or special act,
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Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 or provisions of Florida Statutes made applicable to pension
2 funds established by special act, or to the extent that any
3 provision of this section would result in the loss of tax
4 exempt status of the Pension Fund, the Board of Trustees is
5 hereby delegated the authority to adopt by rules changes to
6 this section in order to comply with said laws, which shall
7 have the force of law and shall be considered part of this
8 pension contract.
9 (E) Administration of Program.--The Board of Trustees
10 shall make such rules as are necessary for the effective and
11 efficient administration of this section, provided that such
12 rules are not inconsistent with the terms of any collective
13 bargaining agreement entered into by the City and the
14 certified bargaining agents for firefighters and police
15 officers concerning the 13th Check Program. Notwithstanding
16 any other provision of this section to the contrary, any
17 provision of this section shall be construed and administered
18 in such manner that such program will qualify as a qualified
19 governmental pension plan under existing or hereafter enacted
20 provisions of the Internal Revenue Code of the United States,
21 and the Board of Trustees may adopt any rule to accomplish the
22 purpose of this section as is necessary to retain tax
23 qualification, which rules shall have the force of law and
24 shall be considered part of this pension contract.
25 Section 2. This act is only an enabling act, and the
26 execution by the City of Tampa of the aforesaid supplemental
27 contract and entitlement to the pension benefits referred to
28 in this act for all firefighters and police officers,
29 regardless of whether or not in the respective certified
30 bargaining unit for firefighters or police officers, is
31 contingent upon contractual agreement through the collective
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Amendment No. ___ Barcode 170520
1 bargaining process between the City of Tampa and each of the
2 respective certified bargaining agents for firefighters and
3 police officers.
4 Section 3. The City of Tampa Firefighters and Police
5 Officers Pension Contract as prescribed by Section 28-17 of
6 the City of Tampa Code Ordinance No. 4746-A, enacted
7 September 30, 1969 , as amended by Section 28-19 of the City
8 of Tampa Code Ordinance No. 6038-A, enacted September 17,
9 1974 , pursuant to chapter 74-613, Laws of Florida; as further
10 amended by Ordinance No. 89-314, enacted December 21, 1989,
11 and approved, ratified, validated, and confirmed by chapter
12 90-391, Laws of Florida; and as further amended by chapter
13 92-231, Laws of Florida, chapter 94-463, Laws of Florida,
14 chapter 98-515, Laws of Florida, and chapter 2000-485, Laws of
15 Florida, is in all other respects approved, ratified,
16 validated, and confirmed.
17 Section 4. The benefits provided for herein by Section
18 1 and the changes to the pension contract provided for herein
19 by Section 1 for active and contributing members on the date
20 this act becomes a law shall be made available in one
21 supplemental pension contract, and a member shall not be
22 permitted to select some of said benefits and reject others of
23 said benefits. Any active or contributing member on the date
24 this act becomes a law who fails to sign said supplemental
25 pension contract before October 1, 2001, shall be forever
26 barred from receiving said benefits and shall not be required
27 to make any contributions required as a result of such
28 benefits. However, any person who becomes a member of the
29 City Pension Fund for Firefighters and Police Officers in the
30 City of Tampa on or after the date this act becomes a law,
31 shall be required as a condition of membership into said
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Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 pension fund to sign a pension contract which includes the
2 provisions of Section 1, and shall be required to make the
3 contributions required as a result of such benefits.
4 Section 5. Notwithstanding the provisions of Section
5 1, the distribution of the 13th check commencing no later than
6 June 30, 2002, shall be payable within 30 days of receipt of a
7 favorable determination letter from the Internal Revenue
8 Service that the revised 13th check program does not adversely
9 impact the tax qualification of the plan, but no earlier than
10 June 30, 2002.
11 Section 6. If the City of Tampa enters into a
12 supplemental pension contract as provided in Section 1 of this
13 act, each retired firefighter and retired police officer who
14 is living on the date this act becomes a law, and each member
15 who retires or dies after this act becomes a law, but before
16 October 1, 2001, and each qualifying surviving spouse, who is
17 living on the date this act becomes a law, is entitled to
18 receive the same benefits from the 13th check account upon the
19 same basis as if the member's contract had been supplemented
20 in the manner provided by Section 1 of this act before the
21 member's separation from service; provided however said
22 retired firefighter, retired police officer and eligible
23 surviving spouse as a condition of participation in the 13th
24 check program shall be subject to the provisions of Section
25 6(3) and Section 24 of the pension contract.
26 Section 7. This act shall take effect upon becoming a
27 law.
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30 ================ T I T L E A M E N D M E N T ===============
31 And the title is amended as follows:
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SENATE AMENDMENT
Bill No. SB 1996
Amendment No. ___ Barcode 170520
1 Delete everything before the enacting clause
2
3 and insert:
4 A bill to be entitled
5 An act relating to the City of Tampa,
6 Hillsborough County, and particularly to the
7 City Pension Fund for Firefighters and Police
8 Officers in the City of Tampa; authorizing the
9 City of Tampa to enter into a supplemental
10 contract with certain firefighters and police
11 officers to provide for an employer pick-up
12 provision so that employee pension
13 contributions can be made on a pre-tax basis;
14 providing for additional authorized
15 investments; restructuring the 13th Check
16 Program; providing an effective date.
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