House Bill hb0683e1

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                                    CS/HB 683, First Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to firefighter pensions and

  3         police pensions; amending s. 175.032, F.S.;

  4         providing an extended time period for the

  5         recognition of supplemental firefighter plans;

  6         amending s. 185.02, F.S.; providing an extended

  7         time period for the recognition of supplemental

  8         police pension plans; amending ss. 175.061 and

  9         185.05, F.S.; prescribing guidelines for

10         selecting trustees for closed plans of

11         specified size; amending ss. 175.371 and

12         185.38, F.S.; providing for termination of

13         plans after distribution of final benefit

14         payments; amending s. 175.351, F.S.; providing

15         an extended time period for the recognition of

16         certain municipal supplemental pension plans;

17         amending s. 185.35, F.S.; providing an extended

18         time period for the recognition of certain

19         municipal supplemental pension plans; providing

20         an effective date.

21

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

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24         Section 1.  Subsection (18) of section 175.032, Florida

25  Statutes, is amended to read:

26         175.032  Definitions.--For any municipality, special

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

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

29  under this chapter, the following words and phrases have the

30  following meanings:

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                                    CS/HB 683, First Engrossed/ntc



  1         (18)  "Supplemental plan municipality" means any local

  2  law municipality in which there existed a supplemental plan,

  3  of any type or nature, as of December 1, 2000 January 1, 1997.

  4         Section 2.  Subsection (16) of section 185.02, Florida

  5  Statutes, is amended to read:

  6         185.02  Definitions.--For any municipality, chapter

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

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

  9  chapter shall have the following meanings, unless a different

10  meaning is plainly required by the context:

11         (16)  "Supplemental plan municipality" means any local

12  law municipality in which there existed a supplemental plan as

13  of December 1, 2000 January 1, 1997.

14         Section 3.  Paragraph (c) is added to subsection (1) of

15  section 175.061, Florida Statutes, to read:

16         175.061  Board of trustees; members; terms of office;

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

18  municipality, special fire control district, chapter plan,

19  local law municipality, local law special fire control

20  district, or local law plan under this chapter:

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

22  control district there is hereby created a board of trustees

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

24  responsible for administering the trust fund. Effective

25  October 1, 1986, and thereafter:

26         (c)  Whenever the active firefighter membership of a

27  closed chapter plan or closed local law plan as provided in s.

28  175.371 falls below 10, an active firefighter member seat may

29  be held by either a retired member or an active firefighter

30  member of the plan who is elected by the active and retired

31  members of the plan. If there are no active or retired


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                                    CS/HB 683, First Engrossed/ntc



  1  firefighters remaining in the plan or capable of serving, the

  2  remaining board members may elect an individual to serve in

  3  the active firefighter seat. Upon receipt of such person's

  4  name, the legislative body of the municipality or special fire

  5  control district shall, as a ministerial duty, appoint such

  6  person to the board of trustees. This paragraph applies only

  7  to those plans that are closed to new members under s.

  8  175.371(2), and does not apply to any other municipality or

  9  fire control district having a chapter or local law plan.

10         Section 4.  Paragraph (b) of subsection (3) of section

11  175.351, Florida Statutes, is amended to read:

12         175.351  Municipalities and special fire control

13  districts having their own pension plans for

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

15  district, local law municipality, local law special fire

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

17  order for municipalities and special fire control districts

18  with their own pension plans for firefighters, or for

19  firefighters and police officers, where included, to

20  participate in the distribution of the tax fund established

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

22  benefits and minimum standards set forth in this chapter.

23         (3)  Notwithstanding any other provision, with respect

24  to any supplemental plan municipality:

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

26  law plan and a supplemental plan shall continue to be

27  administered by a board or boards of trustees numbered,

28  constituted, and selected as the board or boards were

29  numbered, constituted, and selected on December 1, 2000

30  January 1, 1997.

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                                    CS/HB 683, First Engrossed/ntc



  1         Section 5.  Subsection (2) of section 175.371, Florida

  2  Statutes, is amended to read:

  3         175.371  Transfer to another state retirement system;

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

  5  district, chapter plan, local law municipality, local law

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

  7  chapter:

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

  9  created pursuant to this chapter elects to transfer to another

10  state retirement system, the pension plan created pursuant to

11  this chapter shall be terminated and the assets distributed in

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

13  plan created pursuant to this chapter elect to transfer to

14  another state retirement system and other participants elect

15  to remain in the existing plan created pursuant to this

16  chapter, the plan created pursuant to this chapter shall

17  continue to receive state premium tax moneys until fully

18  funded. If the plan is fully funded at a particular valuation

19  date and not fully funded at a later valuation date, the plan

20  shall resume receipt of state premium tax moneys until the

21  plan is once again fully funded. "Fully funded" means that the

22  present value of all benefits, accrued and projected, is less

23  than the available assets and the present value of future

24  member contributions and future plan sponsor contributions on

25  an actuarial entry age cost funding basis.  Effective May 31,

26  1998, for plans discussed herein, the plan shall remain in

27  effect until the final benefit payment has been made to the

28  last active participant or beneficiary has terminated and

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

30         Section 6.  Paragraphs (c) and (d) are added to

31  subsection (1) of section 185.05, Florida Statutes, to read:


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                                    CS/HB 683, First Engrossed/ntc



  1         185.05  Board of trustees; members; terms of office;

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

  3  municipality, chapter plan, local law municipality, or local

  4  law plan under this chapter:

  5         (1)  In each municipality described in s. 185.03 there

  6  is hereby created a board of trustees of the municipal police

  7  officers' retirement trust fund, which shall be solely

  8  responsible for administering the trust fund. Effective

  9  October 1, 1986, and thereafter:

10         (c)  Whenever the active police officer membership of a

11  closed chapter plan or closed local law plan as provided in s.

12  185.38 falls below 10, an active police officer member seat

13  may be held by either a retired police officer or an active

14  police officer member of the plan who is elected by the active

15  and retired members of the plan. If there are no active or

16  retired police officers remaining in the plan or capable of

17  serving, the remaining board members may elect an individual

18  to serve in the active police officer member seat. Upon

19  receipt of such person's name, the legislative body of the

20  municipality shall, as a ministerial duty, appoint such person

21  to the board of trustees. This paragraph applies only to those

22  plans that are closed to new members under s. 185.38(2), and

23  does not apply to any other municipality having a chapter or

24  local law plan.

25         (d)  If the chapter plan or local law plan with an

26  active membership of 10 or more is closed to new members, the

27  member seats may be held by either a retiree, as defined in s.

28  185.02, or an active police officer of the plan who has been

29  elected by the active police officers. A closed plan means a

30  plan that is closed to new members but continues to operate,

31  pursuant to s. 185.38(2), for participants who elect to remain


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                                    CS/HB 683, First Engrossed/ntc



  1  in the existing plan. This paragraph applies only to those

  2  plans that are closed to new members pursuant to s. 185.38(2)

  3  and does not apply to any other municipality that has a

  4  chapter plan or a local law plan.

  5         Section 7.  Paragraph (b) of subsection (3) of section

  6  185.35, Florida Statutes, is 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  in order for municipalities with their own pension plans for

11  police officers, or for police officers and firefighters where

12  included, to participate in the distribution of the tax fund

13  established pursuant to s. 185.08, local law plans must meet

14  the minimum benefits and minimum standards set forth in this

15  chapter:

16         (3)  Notwithstanding any other provision, with respect

17  to any supplemental plan municipality:

18         (b)  Section 185.05(1)(b) shall not apply, and a local

19  law plan and a supplemental plan shall continue to be

20  administered by a board or boards of trustees numbered,

21  constituted, and selected as the board or boards were

22  numbered, constituted, and selected on December 1, 2000

23  January 1, 1997.

24         Section 8.  Subsection (2) of section 185.38, Florida

25  Statutes, is amended to read:

26         185.38  Transfer to another state retirement system;

27  benefits payable.--For any municipality, chapter plan, local

28  law municipality, or local law plan under this chapter:

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

30  created pursuant to this chapter elects to transfer to another

31  state retirement system, the pension plan created pursuant to


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                                    CS/HB 683, First Engrossed/ntc



  1  this chapter shall be terminated and the assets distributed in

  2  accordance with s. 185.37.  If some participants in a pension

  3  plan created pursuant to this chapter elect to transfer to

  4  another state retirement system and other participants elect

  5  to remain in the existing plan created pursuant to this

  6  chapter, the plan created pursuant to this chapter shall

  7  continue to receive state premium tax moneys until fully

  8  funded. If the plan is fully funded at a particular valuation

  9  date and not fully funded at a later valuation date, the plan

10  shall resume receipt of state premium tax moneys until the

11  plan is once again determined to be fully funded. "Fully

12  funded" means that the present value of all benefits, accrued

13  and projected, is less than the available assets and the

14  present value of future member contributions and future plan

15  sponsor contributions on an actuarial entry age cost funding

16  basis.  Effective May 31, 1998, for plans discussed herein,

17  the plan shall remain in effect until the final benefit

18  payment has been made to the last active participant or

19  beneficiary has terminated and shall then be terminated in

20  accordance with s. 185.37.

21         Section 9.  This act shall take effect October 1, 2002.

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