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