Senate Bill sb1996e1

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    SB 1996                                        First Engrossed



  1                      A bill to be entitled

  2         An act relating to the City of Tampa,

  3         Hillsborough County, and particularly to the

  4         City Pension Fund for Firefighters and Police

  5         Officers in the City of Tampa; authorizing the

  6         City of Tampa to enter into a supplemental

  7         contract with certain firefighters and police

  8         officers to provide for an employer pick-up

  9         provision so that employee pension

10         contributions can be made on a pre-tax basis;

11         providing for additional authorized

12         investments; restructuring the 13th Check

13         Program; providing an effective date.

14

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

16

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,

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    SB 1996                                        First Engrossed



  1  Laws of Florida, chapter 98-515, Laws of Florida, and chapter

  2  2000-485, Laws of Florida, to read:

  3         Section 2(D)  Except as provided by subparagraph

  4  2(B)(4) and subparagraph 27(B)(2), the employees covered under

  5  this contract shall contribute at the rates set forth below,

  6  based upon all of their earnings during each twelve month

  7  period commencing on October 1, which contributions shall be

  8  deducted from said earnings before the same are paid and shall

  9  be promptly deposited in the Fund:

10

11

12      Earnings in                                Employee

13  Twelve-Month Period                          Contribution

14  Commencing October 1                             Rate

15

16      First $4,000                                   6%

17       Next 1,000                                    7%

18       Next 1,000                                    8%

19       Next 1,000                                    9%

20       Next 1,000                                   10%

21       Next 1,000                                   11%

22       Next 1,000                                   12%

23       Next 2,500                                   15%

24  Excess over $12,500                               25%

25

26  If the City's rate of contribution, pursuant to Section 2(B),

27  should exceed forty per centum (40%), the employee

28  contribution scale above shall be increased in the ratio of

29  the City's contribution rate, pursuant to Section 2(B), to 40

30  percent.

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    SB 1996                                        First Engrossed



  1         Commencing for earnings paid the first pay date after

  2  January 1, 2002, all mandatory employee contributions to the

  3  Fund shall be picked-up and paid by the City.  Such

  4  contributions, although designated as employee contributions,

  5  will be paid by the City in lieu of contributions by the

  6  employee.  The contributions so assumed shall be treated as

  7  tax-deferred employer "pick-up" contributions pursuant to

  8  Section 414(h) of the Internal Revenue Code.  Members shall

  9  not have the option of receiving the contributed amounts

10  directly instead of having such contributions paid by the City

11  to the Fund.

12         Section 6(3)  That the portfolio, representing the

13  principal or surplus funds of the Pension Fund may be invested

14  in the following securities or other property, real or

15  personal, including, but without being limited to, bonds,

16  notes, or other evidences of indebtedness issued, or assumed

17  or guaranteed in whole or in part by the United States or any

18  of its agencies or instrumentalities; or by the Dominion of

19  Canada or any of its provinces, cities or municipal

20  corporations; any foreign government or political subdivisions

21  or agencies thereof; or by the State of Florida, or by any

22  county, city, school district, municipal corporation, or other

23  political subdivision of the State of Florida, both general

24  and revenue obligations; in mortgages and other interests in

25  realty; or in such corporation bonds, notes, or other

26  evidences of indebtedness, and corporation stocks including

27  common and preferred stocks, of any corporation created or

28  existing under the laws of the United States or any of the

29  states of the United States, or of the Dominion of Canada, of

30  any foreign government or political subdivisions or agencies

31  thereof, provided that in making each and all of such


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    SB 1996                                        First Engrossed



  1  investments the Board of Trustees shall exercise the judgment

  2  and care under the circumstances then prevailing which men of

  3  ordinary prudence, discretion, and intelligence exercise in

  4  the management of their own funds, not in regard to

  5  speculation but in regard to the permanent disposition of

  6  their own affairs, not in regard to speculation but in regard

  7  to the permanent disposition of their funds, considering the

  8  probable income therefrom as well as probable safety of their

  9  capital; provided, however, that not more than sixty-five per

10  centum (65%) of said fund, based on the total book value of

11  all investments held, shall be invested at any given time in

12  common stocks, and that not more than five per centum (5%) of

13  said fund shall be invested at any given time in the preferred

14  and common, or either, stock of any one corporation and its

15  affiliates and that not more than ten per centum (10%) of said

16  fund, based on the total book value of all investments held,

17  shall be invested at any given time in the bonds, notes or

18  other evidences of indebtedness of any foreign government or

19  political subdivisions or agencies thereof or corporations

20  created or existing under the laws thereof.

21         Section 27.  13TH CHECK PROGRAM.--Notwithstanding any

22  other provisions of this contract, and subject to the

23  provisions of this section, the 13th Check Program is a

24  program which authorizes the Board of Trustees to establish

25  and make a supplemental pension distribution commencing in

26  January 1999, and in January of each year thereafter, pursuant

27  to the following terms and conditions:

28         (A)  Eligibility.--The following persons shall be

29  eligible for the supplemental pension distribution payable no

30  later than June 30, 2002, and each June 30 annually

31  thereafter: in January of each year:


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    SB 1996                                        First Engrossed



  1         (1)  All retired members who have terminated employment

  2  as a firefighter or police officer in the fire department or

  3  police department, respectively, who, on the October 1

  4  immediately preceding the June 30 by January in which

  5  distributions are to be made, were eligible to receive pension

  6  benefits for at least 1 year. For purposes of this section

  7  only, a DROP participant shall be considered a retired member

  8  and, during the DROP calculation period, a DROP participant

  9  shall be eligible for the 13th check benefit,  provided that,

10  on the October 1 immediately preceding the June 30 by January

11  in which distributions are to be made, such DROP participant

12  had participated in the DROP for at least 1 year;

13         (2)  All qualifying spouses who were eligible to

14  receive pension benefits pursuant to Section 8 or Section 9

15  for at least 1 year on the October 1 immediately preceding the

16  June 30 by January in which distributions are to be made; and

17         (3)  All qualifying surviving spouses, who on the

18  October 1 immediately preceding the June 30 by January in

19  which distributions are to be made, were eligible for receipt

20  of Section 8 or Section 9 benefits but who have not received

21  such pension benefits for at least 1 year provided that the

22  deceased member was eligible for receipt of pension benefits

23  on October 1 of the prior year.

24         (B)  13th Check Account.--

25         (1)  There is hereby created a 13th check account

26  within the Fund, which shall consist of those employees'

27  contributions set forth in subparagraph 27(B)(2) and the

28  City's contributions set forth in subparagraph 27(B)(3) in

29  excess of those contributions otherwise required by Section 2

30  for the normal annual cost of benefits, other than benefits

31  arising from post retirement adjustments made pursuant to


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    SB 1996                                        First Engrossed



  1  Section 23 and other than benefits arising from the 13th Check

  2  Program, plus any interest earnings thereon up to and

  3  including September 30, 2001.  Effective for earnings paid on

  4  the first pay date after October 1, 2001, employee

  5  contributions to the 13th Check Account shall cease, and the

  6  13th Check Account shall be funded by investment returns in

  7  excess of 10% (limited to 3%) on the base plan liabilities for

  8  persons eligible for the 13th check.  For purposes of this

  9  Section, the "base plan" shall mean those assets of the Fund

10  excluding the Post Retirement Adjustment Account, DROP account

11  assets, and the 13th check account.  The amount available for

12  the 13th check shall be calculated as of fiscal year end

13  commencing September 30, 2001 for the fiscal year ending

14  September 30, 2001 for payment no later than June 30, 2002,

15  and each June 30 annually thereafter; provided, however, the

16  calculation of the amount payable no later than June 30, 2002,

17  shall include employee contributions to the 13th check account

18  for earnings paid through the last pay date immediately prior

19  to October 1, 2001.  The City shall not be required to make

20  contributions toward the 13th check program.

21         (2)  Notwithstanding any other provision of this

22  contract, commencing October 1, 1998, employees covered under

23  this contract shall continue to contribute pursuant to Section

24  2 at the rates required for employees to fund the normal

25  annual cost of benefits, other than benefits arising from post

26  retirement adjustments made pursuant to Section 23 and other

27  than benefits arising from the 13th check program made

28  pursuant to this section, plus an additional 100 percent of

29  9.874 percent of the full scale contribution rate (FSCR) set

30  forth in Section 2(D) to the 13th check program.  Employee

31  contributions to the 13th check shall cease effective for


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    SB 1996                                        First Engrossed



  1  earnings paid on the last pay date immediately prior to

  2  October 1, 2001.

  3         (3)  Notwithstanding any other provision of this

  4  contract, the City shall contribute:

  5         (a)  An amount required to fund the normal annual cost

  6  of benefits, other than benefits arising from post-retirement

  7  adjustments made pursuant to Section 23 and other than

  8  benefits arising from the 13th check program made pursuant to

  9  this section, plus;

10         (b)  Commencing October 1, 2001, to the 13th check

11  program, 134 percent of 9.874 percent of the full scale

12  contribution rate (FSCR) for employees set forth in Section

13  2(D); provided, however, if the sum of the City's contribution

14  for the normal annual cost of benefits plus the 134 percent of

15  9.874 percent of the full scale contribution rate (FSCR) is

16  greater than 134 percent of 28.789 percent of the full scale

17  contribution rate (FSCR), then the City's contribution to the

18  13th check program shall be the positive difference between

19  134 percent of 28.789 percent of the full scale contribution

20  rate (FSCR) and the amount set forth in subparagraph

21  27(B)(3)(a) [134 percent of the normal annual cost of benefits

22  of the full scale contribution rate (FSCR) for employees set

23  forth in Section 2(D)], but no less than 134 percent of 3

24  percent of the full scale contribution rate (FSCR).

25         (4)  Notwithstanding any other provision of this

26  contract, the City's contributions to the 13th check program

27  shall not require the City to make additional contributions to

28  the 13th check program to reimburse the 13th check account for

29  the contributions the City would have otherwise made to the

30  13th check program had it contributed thereto for the period

31  of October 1, 1998, through September 30, 2001.


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    SB 1996                                        First Engrossed



  1         (C)  Amount of the 13th Check.--The amount of the 13th

  2  check shall be determined as follows:

  3         (1)(a)  The amount of the 13th check shall be the same

  4  for all retired members, regardless of years of service, age,

  5  years retired, or monthly installment.

  6         (b)  All eligible surviving spouses shall be entitled

  7  to 50 percent of what the eligible retired member would have

  8  received but for death.

  9         (c)  If a retired member is eligible on October 1 but

10  dies before payment of the 13th check by in the following June

11  30 January, the retired member's spouse shall receive the full

12  amount of the payment, and if there is no surviving spouse,

13  the retired member's designated beneficiary or beneficiaries,

14  or if none, the retired member's estate shall receive the

15  payment.

16         (2)  The Board of Trustees shall establish by rule

17  adopted no later than May 31, 2002, and each May 31

18  thereafter, December 15, 1998, the amount of the 13th check

19  funded pursuant to Section 27(B)(1), subject to the following:

20         (a)  The amount of the 13th check, or a method for

21  calculating the amount of the 13th check in a manner that is

22  definitely determinable and in accordance with the

23  requirements of the Internal Revenue Code applicable to a

24  qualified governmental plan; and

25         (b)  Certification by the Fund's actuary that the

26  amount of the payment will be funded on a sound actuarial

27  basis as required by Section 14, Article X of the State

28  Constitution.

29         (D)  Conflict of Laws.--To the extent that any

30  provision of this section is in conflict with sections

31  112.60-112.67, Florida Statutes, or those provisions of


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    SB 1996                                        First Engrossed



  1  chapters 175 and 185, Florida Statutes, that apply to local

  2  law plans established by municipal ordinance or special act,

  3  or provisions of Florida Statutes made applicable to pension

  4  funds established by special act, or to the extent that any

  5  provision of this section would result in the loss of tax

  6  exempt status of the Pension Fund, the Board of Trustees is

  7  hereby delegated the authority to adopt by rules changes to

  8  this section in order to comply with said laws, which shall

  9  have the force of law and shall be considered part of this

10  pension contract.

11         (E)  Administration of Program.--The Board of Trustees

12  shall make such rules as are necessary for the effective and

13  efficient administration of this section, provided that such

14  rules are not inconsistent with the terms of any collective

15  bargaining agreement entered into by the City and the

16  certified bargaining agents for firefighters and police

17  officers concerning the 13th Check Program. Notwithstanding

18  any other provision of this section to the contrary, any

19  provision of this section shall be construed and administered

20  in such manner that such program will qualify as a qualified

21  governmental pension plan under existing or hereafter enacted

22  provisions of the Internal Revenue Code of the United States,

23  and the Board of Trustees may adopt any rule to accomplish the

24  purpose of this section as is necessary to retain tax

25  qualification, which rules shall have the force of law and

26  shall be considered part of this pension contract.

27         Section 2.  This act is only an enabling act, and the

28  execution by the City of Tampa of the aforesaid supplemental

29  contract and entitlement to the pension benefits referred to

30  in this act for all firefighters and police officers,

31  regardless of whether or not in the respective certified


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    SB 1996                                        First Engrossed



  1  bargaining unit for firefighters or police officers, is

  2  contingent upon contractual agreement through the collective

  3  bargaining process between the City of Tampa and each of the

  4  respective certified bargaining agents for firefighters and

  5  police officers.

  6         Section 3.  The City of Tampa Firefighters and Police

  7  Officers Pension Contract as prescribed by Section 28-17 of

  8  the City of Tampa Code {Ordinance No. 4746-A, enacted

  9  September 30, 1969}, as amended by Section 28-19 of the City

10  of Tampa Code {Ordinance No. 6038-A, enacted September 17,

11  1974}, pursuant to chapter 74-613, Laws of Florida; as further

12  amended by Ordinance No. 89-314, enacted December 21, 1989,

13  and approved, ratified, validated, and confirmed by chapter

14  90-391, Laws of Florida; and as further amended by chapter

15  92-231, Laws of Florida, chapter 94-463, Laws of Florida,

16  chapter 98-515, Laws of Florida, and chapter 2000-485, Laws of

17  Florida, is in all other respects approved, ratified,

18  validated, and confirmed.

19         Section 4.  The benefits provided for herein by Section

20  1 and the changes to the pension contract provided for herein

21  by Section 1 for active and contributing members on the date

22  this act becomes a law shall be made available in one

23  supplemental pension contract, and a member shall not be

24  permitted to select some of said benefits and reject others of

25  said benefits.  Any active or contributing member on the date

26  this act becomes a law who fails to sign said supplemental

27  pension contract before October 1, 2001, shall be forever

28  barred from receiving said benefits and shall not be required

29  to make any contributions required as a result of such

30  benefits.  However, any person who becomes a member of the

31  City Pension Fund for Firefighters and Police Officers in the


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    SB 1996                                        First Engrossed



  1  City of Tampa on or after the date this act becomes a law,

  2  shall be required as a condition of membership into said

  3  pension fund to sign a pension contract which includes the

  4  provisions of Section 1, and shall be required to make the

  5  contributions required as a result of such benefits.

  6         Section 5.  Notwithstanding the provisions of Section

  7  1, the distribution of the 13th check commencing no later than

  8  June 30, 2002, shall be payable within 30 days of receipt of a

  9  favorable determination letter from the Internal Revenue

10  Service that the revised 13th check program does not adversely

11  impact the tax qualification of the plan, but no earlier than

12  June 30, 2002.

13         Section 6.  If the City of Tampa enters into a

14  supplemental pension contract as provided in Section 1 of this

15  act, each retired firefighter and retired police officer who

16  is living on the date this act becomes a law, and each member

17  who retires or dies after this act becomes a law, but before

18  October 1, 2001, and each qualifying surviving spouse, who is

19  living on the date this act becomes a law, is entitled to

20  receive the same benefits from the 13th check account upon the

21  same basis as if the member's contract had been supplemented

22  in the manner provided by Section 1 of this act before the

23  member's separation from service; provided however said

24  retired firefighter, retired police officer and eligible

25  surviving spouse as a condition of participation in the 13th

26  check program shall be subject to the provisions of Section

27  6(3) and Section 24 of the pension contract.

28         Section 7.  This act shall take effect upon becoming a

29  law.

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