HB 1245 2003
1	CHAMBER ACTION
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6	The Committee on Insurance recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to municipal police and firefighter
12	pensions; amending s. 175.351, F.S.; authorizing certain
13	municipalities to provide extra benefits to firefighter
14	pension plans prior to the receipt of additional premium
15	tax revenues; providing a procedure; amending s. 185.35,
16	F.S.; authorizing certain municipalities to provide extra
17	benefits in police officer pension plans under certain
18	circumstances; providing a procedure; providing an
19	effective date.
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21	Be It Enacted by the Legislature of the State of Florida:
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23	Section 1. Section 175.351, Florida Statutes, is amended
24	to read:
25	175.351 Municipalities and special fire control districts
26	having their own pension plans for firefighters.--For any
27	municipality, special fire control district, local law
28	municipality, local law special fire control district, or local
29	law plan under this chapter, in order for municipalities and
30	special fire control districts with their own pension plans for
31	firefighters, or for firefighters and police officers, where
32	included, to participate in the distribution of the tax fund
33	established pursuant to s. 175.101, local law plans must meet
34	the minimum benefits and minimum standards set forth in this
35	chapter.
36	(1) PREMIUM TAX INCOME.--If a municipality has a pension
37	plan for firefighters, or a pension plan for firefighters and
38	police officers, where included, which in the opinion of the
39	division meets the minimum benefits and minimum standards set
40	forth in this chapter, the board of trustees of the pension
41	plan, as approved by a majority of firefighters of the
42	municipality, may:
43	(a) Place the income from the premium tax in s. 175.101 in
44	such pension plan for the sole and exclusive use of its
45	firefighters, or for firefighters and police officers, where
46	included, where it shall become an integral part of that pension
47	plan and shall be used to pay extra benefits to the firefighters
48	included in that pension plan; or
49	(b) Place the income from the premium tax in s. 175.101 in
50	a separate supplemental plan to pay extra benefits to
51	firefighters, or to firefighters and police officers where
52	included, participating in such separate supplemental plan.
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54	The premium tax provided by this chapter shall in all cases be
55	used in its entirety to provide extra benefits to firefighters,
56	or to firefighters and police officers, where included. However,
57	local law plans in effect on October 1, 1998, shall be required
58	to comply with the minimum benefit provisions of this chapter
59	only to the extent that additional premium tax revenues become
60	available to incrementally fund the cost of such compliance as
61	provided in s. 175.162(2)(a). When a plan is in compliance with
62	such minimum benefit provisions, as subsequent additional
63	premium tax revenues become available, they shall be used to
64	provide extra benefits. For the purpose of this chapter,
65	"additional premium tax revenues" means revenues received by a
66	municipality or special fire control district pursuant to s.
67	175.121 that exceed that amount received for calendar year 1997
68	and the term "extra benefits" means benefits in addition to or
69	greater than those provided to general employees of the
70	municipality. Local law plans created by special act before May
71	23, 1939, shall be deemed to comply with this chapter. Any city
72	which entered into a collective bargaining agreement prior to
73	July 1, 2003, whereby the city has agreed to provide enhanced
74	benefits to firefighters, or firefighters and police officers,
75	where included, prior to receipt of additional premium tax
76	revenues may, as a permissive alternative to paragraph (a),
77	provide extra benefits to the members prior to receipt of
78	additional premium tax revenues to fund such benefit
79	improvements. The municipality shall advance to the appropriate
80	plan the difference between actuarially determined costs of the
81	extra benefits to be provided and the additional premium tax
82	revenues received at the time of advancement. Thereafter, the
83	municipality shall annually advance to the plan the difference
84	in the actuarially determined cost of the extra benefits which
85	were funded by the initial advance and the available additional
86	premium tax revenues until such time as the growth in the
87	available additional premium tax revenues is sufficient to fund
88	the costs of the extra benefits provided by the initial advance.
89	At such time, all additional premium tax revenues in excess of
90	the costs of the benefit improvements shall be credited against
91	the municipality’s required contributions until the funds
92	credited to the municipality equal the funds advanced by the
93	municipality to the plan with interest. Thereafter, all
94	available additional premium tax revenues shall be used to
95	provide additional benefits. Interest may be assessed against
96	the funds advanced at a rate not to exceed the rate permitted by
97	law, provided such interest is agreed to by the certified
98	bargaining agent, where applicable, or a majority of
99	firefighters, or firefighters and police officers, where
100	included in the pension plan. In no event shall the municipality
101	be relieved of its fiduciary responsibility, as determined by
102	the plan actuary, of funding these extra benefits if the
103	additional premium tax revenues are not sufficient to fund the
104	extra benefits. Prior to an agreement between the municipality
105	and the firefighters, or firefighters and police officers where
106	included, being implemented, the plan administrator shall submit
107	such agreement and the actuarial impact statement prepared by
108	the plan actuary to the Division of Retirement for its
109	determination and approval that said agreement is in compliance
110	with the requirements of part VII of chapter 112.
111	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
112	retirement plan or amendment to a retirement plan shall be
113	proposed for adoption unless the proposed plan or amendment
114	contains an actuarial estimate of the costs involved. No such
115	proposed plan or proposed plan change shall be adopted without
116	the approval of the municipality, special fire control district,
117	or, where permitted, the Legislature. Copies of the proposed
118	plan or proposed plan change and the actuarial impact statement
119	of the proposed plan or proposed plan change shall be furnished
120	to the division prior to the last public hearing thereon. Such
121	statement shall also indicate whether the proposed plan or
122	proposed plan change is in compliance with s. 14, Art. X of the
123	State Constitution and those provisions of part VII of chapter
124	112 which are not expressly provided in this chapter.
125	Notwithstanding any other provision, only those local law plans
126	created by special act of legislation prior to May 23, 1939,
127	shall be deemed to meet the minimum benefits and minimum
128	standards only in this chapter.
129	(3) Notwithstanding any other provision, with respect to
130	any supplemental plan municipality:
131	(a) Section 175.032(3)(a) shall not apply, and a local law
132	plan and a supplemental plan may continue to use their
133	definition of compensation or salary in existence on the
134	effective date of this act.
135	(b) Section 175.061(1)(b) shall not apply, and a local law
136	plan and a supplemental plan shall continue to be administered
137	by a board or boards of trustees numbered, constituted, and
138	selected as the board or boards were numbered, constituted, and
139	selected on December 1, 2000.
140	(c) The election set forth in paragraph (1)(b) shall be
141	deemed to have been made.
142	(4) The retirement plan setting forth the benefits and the
143	trust agreement, if any, covering the duties and
144	responsibilities of the trustees and the regulations of the
145	investment of funds must be in writing, and copies thereof must
146	be made available to the participants and to the general public.
147	Section 2. Section 185.35, Florida Statutes, is amended to
148	read:
149	185.35 Municipalities having their own pension plans for
150	police officers.--For any municipality, chapter plan, local law
151	municipality, or local law plan under this chapter, in order for
152	municipalities with their own pension plans for police officers,
153	or for police officers and firefighters where included, to
154	participate in the distribution of the tax fund established
155	pursuant to s. 185.08, local law plans must meet the minimum
156	benefits and minimum standards set forth in this chapter:
157	(1) PREMIUM TAX INCOME.--If a municipality has a pension
158	plan for police officers, or for police officers and
159	firefighters where included, which, in the opinion of the
160	division, meets the minimum benefits and minimum standards set
161	forth in this chapter, the board of trustees of the pension
162	plan, as approved by a majority of police officers of the
163	municipality, may:
164	(a) Place the income from the premium tax in s. 185.08 in
165	such pension plan for the sole and exclusive use of its police
166	officers, or its police officers and firefighters where
167	included, where it shall become an integral part of that pension
168	plan and shall be used to pay extra benefits to the police
169	officers included in that pension plan; or
170	(b) May place the income from the premium tax in s. 185.08
171	in a separate supplemental plan to pay extra benefits to the
172	police officers, or police officers and firefighters where
173	included, participating in such separate supplemental plan.
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175	The premium tax provided by this chapter shall in all cases be
176	used in its entirety to provide extra benefits to police
177	officers, or to police officers and firefighters, where
178	included. However, local law plans in effect on October 1, 1998,
179	shall be required to comply with the minimum benefit provisions
180	of this chapter only to the extent that additional premium tax
181	revenues become available to incrementally fund the cost of such
182	compliance as provided in s. 185.16(2). When a plan is in
183	compliance with such minimum benefit provisions, as subsequent
184	additional tax revenues become available, they shall be used to
185	provide extra benefits. For the purpose of this chapter,
186	"additional premium tax revenues" means revenues received by a
187	municipality pursuant to s. 185.10 that exceed the amount
188	received for calendar year 1997 and the term "extra benefits"
189	means benefits in addition to or greater than those provided to
190	general employees of the municipality. Local law plans created
191	by special act before May 23, 1939, shall be deemed to comply
192	with this chapter. Any city which entered into a collective
193	bargaining agreement prior to July 1, 2003, whereby the city has
194	agreed to provide enhanced benefits to police officers, or
195	police officers and firefighters, where included, prior to
196	receipt of additional premium tax revenues may, as a permissive
197	alternative to paragraph (a), provide extra benefits to the
198	members prior to receipt of additional premium tax revenues to
199	fund such benefit improvements. The municipality shall advance
200	to the appropriate plan the difference between actuarially
201	determined costs of the extra benefits to be provided and the
202	additional premium tax revenues received at the time of
203	advancement. Thereafter, the municipality shall annually advance
204	to the plan the difference in the actuarially determined cost of
205	the extra benefits which were funded by the initial advance and
206	the available additional premium tax revenues until such time as
207	the growth in the available additional premium tax revenues is
208	sufficient to fund the costs of the extra benefits provided by
209	the initial advance. At such time, all additional premium tax
210	revenues in excess of the costs of the benefit improvements
211	shall be credited against the municipality’s required
212	contributions until the funds credited to the municipality equal
213	the funds advanced by the municipality to the plan with
214	interest. Thereafter, all available additional premium tax
215	revenues shall be used to provide additional benefits. Interest
216	may be assessed against the funds advanced at a rate not to
217	exceed the rate permitted by law, provided such interest is
218	agreed to by the certified bargaining agent, where applicable,
219	or a majority of police officers, or police officers and
220	firefighters, where included in the pension plan. In no event
221	shall the municipality be relieved of its fiduciary
222	responsibility, as determined by the plan actuary, of funding
223	these extra benefits if the additional premium tax revenues are
224	not sufficient to fund the extra benefits. Prior to an agreement
225	between the municipality and the police officers, or police
226	officers and firefighters where included, being implemented, the
227	plan administrator shall submit such agreement and the actuarial
228	impact statement prepared by the plan actuary to the Division of
229	Retirement for its determination and approval that said
230	agreement is in compliance with the requirements of part VII of
231	chapter 112.
232	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
233	retirement plan or amendment to a retirement plan shall be
234	proposed for adoption unless the proposed plan or amendment
235	contains an actuarial estimate of the costs involved. No such
236	proposed plan or proposed plan change shall be adopted without
237	the approval of the municipality or, where permitted, the
238	Legislature. Copies of the proposed plan or proposed plan change
239	and the actuarial impact statement of the proposed plan or
240	proposed plan change shall be furnished to the division prior to
241	the last public hearing thereon. Such statement shall also
242	indicate whether the proposed plan or proposed plan change is in
243	compliance with s. 14, Art. X of the State Constitution and
244	those provisions of part VII of chapter 112 which are not
245	expressly provided in this chapter. Notwithstanding any other
246	provision, only those local law plans created by special act of
247	legislation prior to May 23, 1939, shall be deemed to meet the
248	minimum benefits and minimum standards only in this chapter.
249	(3) Notwithstanding any other provision, with respect to
250	any supplemental plan municipality:
251	(a) Section 185.02(4)(a) shall not apply, and a local law
252	plan and a supplemental plan may continue to use their
253	definition of compensation or salary in existence on the
254	effective date of this act.
255	(b) Section 185.05(1)(b) shall not apply, and a local law
256	plan and a supplemental plan shall continue to be administered
257	by a board or boards of trustees numbered, constituted, and
258	selected as the board or boards were numbered, constituted, and
259	selected on December 1, 2000.
260	(c) The election set forth in paragraph (1)(b) shall be
261	deemed to have been made.
262	(4) The retirement plan setting forth the benefits and the
263	trust agreement, if any, covering the duties and
264	responsibilities of the trustees and the regulations of the
265	investment of funds must be in writing and copies made available
266	to the participants and to the general public.
267	Section 3. This act shall take effect upon becoming a law.
268