Senate Bill sb2334

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2003                                  SB 2334

    By Senator Lynn





    7-385-03                                           See HB 1245

  1                      A bill to be entitled

  2         An act relating to municipal police and

  3         firefighter pensions; amending s. 175.351,

  4         F.S.; authorizing certain municipalities to

  5         provide extra benefits to firefighter pension

  6         plans prior to the receipt of additional

  7         premium tax revenues; providing a procedure;

  8         amending s. 185.35, F.S.; authorizing certain

  9         municipalities to provide extra benefits in

10         police officer pension plans under certain

11         circumstances; providing a procedure; providing

12         an effective date.

13  

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

15  

16         Section 1.  Section 175.351, Florida Statutes, is

17  amended to read:

18         175.351  Municipalities and special fire control

19  districts having their own pension plans for

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

21  district, local law municipality, local law special fire

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

23  order for municipalities and special fire control districts

24  with their own pension plans for firefighters, or for

25  firefighters and police officers, where included, to

26  participate in the distribution of the tax fund established

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

28  benefits and minimum standards set forth in this chapter.

29         (1)  PREMIUM TAX INCOME.--If a municipality has a

30  pension plan for firefighters, or a pension plan for

31  firefighters and police officers, where included, which in the

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1  opinion of the division meets the minimum benefits and minimum

 2  standards set forth in this chapter, the board of trustees of

 3  the pension plan, as approved by a majority of firefighters of

 4  the municipality, may:

 5         (a)  Place the income from the premium tax in s.

 6  175.101 in such pension plan for the sole and exclusive use of

 7  its firefighters, or for firefighters and police officers,

 8  where included, where it shall become an integral part of that

 9  pension plan and shall be used to pay extra benefits to the

10  firefighters included in that pension plan; or

11         (b)  Place the income from the premium tax in s.

12  175.101 in a separate supplemental plan to pay extra benefits

13  to firefighters, or to firefighters and police officers where

14  included, participating in such separate supplemental plan.

15  

16  The premium tax provided by this chapter shall in all cases be

17  used in its entirety to provide extra benefits to

18  firefighters, or to firefighters and police officers, where

19  included. However, local law plans in effect on October 1,

20  1998, shall be required to comply with the minimum benefit

21  provisions of this chapter only to the extent that additional

22  premium tax revenues become available to incrementally fund

23  the cost of such compliance as provided in s. 175.162(2)(a).

24  When a plan is in compliance with such minimum benefit

25  provisions, as subsequent additional premium tax revenues

26  become available, they shall be used to provide extra

27  benefits. For the purpose of this chapter, "additional premium

28  tax revenues" means revenues received by a municipality or

29  special fire control district pursuant to s. 175.121 that

30  exceed that amount received for calendar year 1997 and the

31  term "extra benefits" means benefits in addition to or greater

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1  than those provided to general employees of the municipality.

 2  Local law plans created by special act before May 23, 1939,

 3  shall be deemed to comply with this chapter. As a permissive

 4  alternative to paragraphs (a) and (b), a municipality, after

 5  meeting the minimum benefit provisions of this chapter, with

 6  the approval of the certified bargaining agent, where

 7  applicable, or a majority of firefighters, or firefighters and

 8  police officers, where included in the pension plan, may

 9  provide extra benefits to the members prior to receipt of

10  additional premium tax revenues to fund such benefit

11  improvements. The municipality shall advance to the

12  appropriate plan the difference between actuarially determined

13  costs of the extra benefits to be provided and the additional

14  premium tax revenues received at the time of advancement.

15  Thereafter, the municipality shall annually advance to the

16  plan the difference in the actuarially determined cost of the

17  extra benefits which were funded by the initial advance and

18  the available additional premium tax revenues until such time

19  as the growth in the available additional premium tax revenues

20  is sufficient to fund the costs of the extra benefits provided

21  by the initial advance. At such time, all additional premium

22  tax revenues in excess of the costs of the benefit

23  improvements shall be credited against the municipality's

24  required contributions until the funds credited to the

25  municipality equal the funds advanced by the municipality to

26  the plan with interest. Thereafter, all available additional

27  premium tax revenues shall be used to provide additional

28  benefits. Interest may be assessed against the funds advanced

29  at a rate not to exceed the rate permitted by law, provided

30  such interest is agreed to by the certified bargaining agent,

31  where applicable, or a majority of firefighters or

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1  firefighters and police officers, where included in the

 2  pension plan. In no event shall the municipality be relieved

 3  of its fiduciary responsibility, as determined by the plan

 4  actuary, of funding these extra benefits if the additional

 5  premium tax revenues are not sufficient to fund the extra

 6  benefits.

 7         (2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No

 8  retirement plan or amendment to a retirement plan shall be

 9  proposed for adoption unless the proposed plan or amendment

10  contains an actuarial estimate of the costs involved. No such

11  proposed plan or proposed plan change shall be adopted without

12  the approval of the municipality, special fire control

13  district, or, where permitted, the Legislature. Copies of the

14  proposed plan or proposed plan change and the actuarial impact

15  statement of the proposed plan or proposed plan change shall

16  be furnished to the division prior to the last public hearing

17  thereon. Such statement shall also indicate whether the

18  proposed plan or proposed plan change is in compliance with s.

19  14, Art. X of the State Constitution and those provisions of

20  part VII of chapter 112 which are not expressly provided in

21  this chapter. Notwithstanding any other provision, only those

22  local law plans created by special act of legislation prior to

23  May 23, 1939, shall be deemed to meet the minimum benefits and

24  minimum standards only in this chapter.

25         (3)  Notwithstanding any other provision, with respect

26  to any supplemental plan municipality:

27         (a)  Section 175.032(3)(a) shall not apply, and a local

28  law plan and a supplemental plan may continue to use their

29  definition of compensation or salary in existence on the

30  effective date of this act.

31  

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




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

 2  law plan and a supplemental plan shall continue to be

 3  administered by a board or boards of trustees numbered,

 4  constituted, and selected as the board or boards were

 5  numbered, constituted, and selected on December 1, 2000.

 6         (c)  The election set forth in paragraph (1)(b) shall

 7  be deemed to have been made.

 8         (4)  The retirement plan setting forth the benefits and

 9  the trust agreement, if any, covering the duties and

10  responsibilities of the trustees and the regulations of the

11  investment of funds must be in writing, and copies thereof

12  must be made available to the participants and to the general

13  public.

14         Section 2.  Section 185.35, Florida Statutes, is

15  amended to read:

16         185.35  Municipalities having their own pension plans

17  for police officers.--For any municipality, chapter plan,

18  local law municipality, or local law plan under this chapter,

19  in order for municipalities with their own pension plans for

20  police officers, or for police officers and firefighters where

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

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

23  the minimum benefits and minimum standards set forth in this

24  chapter:

25         (1)  PREMIUM TAX INCOME.--If a municipality has a

26  pension plan for police officers, or for police officers and

27  firefighters where included, which, in the opinion of the

28  division, meets the minimum benefits and minimum standards set

29  forth in this chapter, the board of trustees of the pension

30  plan, as approved by a majority of police officers of the

31  municipality, may:

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1         (a)  Place the income from the premium tax in s. 185.08

 2  in such pension plan for the sole and exclusive use of its

 3  police officers, or its police officers and firefighters where

 4  included, where it shall become an integral part of that

 5  pension plan and shall be used to pay extra benefits to the

 6  police officers included in that pension plan; or

 7         (b)  May place the income from the premium tax in s.

 8  185.08 in a separate supplemental plan to pay extra benefits

 9  to the police officers, or police officers and firefighters

10  where included, participating in such separate supplemental

11  plan.

12  

13         The premium tax provided by this chapter shall in all

14  cases be used in its entirety to provide extra benefits to

15  police officers, or to police officers and firefighters, where

16  included. However, local law plans in effect on October 1,

17  1998, shall be required to comply with the minimum benefit

18  provisions of this chapter only to the extent that additional

19  premium tax revenues become available to incrementally fund

20  the cost of such compliance as provided in s. 185.16(2). When

21  a plan is in compliance with such minimum benefit provisions,

22  as subsequent additional tax revenues become available, they

23  shall be used to provide extra benefits. For the purpose of

24  this chapter, "additional premium tax revenues" means revenues

25  received by a municipality pursuant to s. 185.10 that exceed

26  the amount received for calendar year 1997 and the term "extra

27  benefits" means benefits in addition to or greater than those

28  provided to general employees of the municipality. Local law

29  plans created by special act before May 23, 1939, shall be

30  deemed to comply with this chapter. As a permissive

31  alternative to paragraphs (a) and (b), a municipality, after

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1  meeting the minimum benefit provisions of this chapter, with

 2  the approval of the certified bargaining agent, where

 3  applicable, or a majority of police officers, or police

 4  officers and firefighters, where included in the pension plan,

 5  may provide extra benefits to the members prior to receipt of

 6  additional premium tax revenues to fund such benefit

 7  improvements. The municipality shall advance to the

 8  appropriate plan the difference between actuarially determined

 9  costs of the extra benefits to be provided and the additional

10  premium tax revenues received at the time of advancement.

11  Thereafter, the municipality shall annually advance to the

12  plan the difference in the actuarially determined cost of the

13  extra benefits which were funded by the initial advance and

14  the available additional premium tax revenues until such time

15  as the growth in the available additional premium tax revenues

16  is sufficient to fund the costs of the extra benefits provided

17  by the initial advance. At such time, all additional premium

18  tax revenues in excess of the costs of the benefit

19  improvements shall be credited against the municipality's

20  required contributions until the funds credited to the

21  municipality equal the funds advanced by the municipality to

22  the plan with interest. Thereafter, all available additional

23  premium tax revenues shall be used to provide additional

24  benefits. Interest may be assessed against the funds advanced

25  at a rate not to exceed the rate permitted by law, provided

26  such interest is agreed to by the certified bargaining agent,

27  where applicable, or a majority of police officers or police

28  officers and firefighters, where included in the pension plan.

29  In no event shall the municipality be relieved of its

30  fiduciary responsibility, as determined by the plan actuary,

31  

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1  of funding these extra benefits if the additional premium tax

 2  revenues are not sufficient to fund the extra benefits.

 3         (2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No

 4  retirement plan or amendment to a retirement plan shall be

 5  proposed for adoption unless the proposed plan or amendment

 6  contains an actuarial estimate of the costs involved. No such

 7  proposed plan or proposed plan change shall be adopted without

 8  the approval of the municipality or, where permitted, the

 9  Legislature. Copies of the proposed plan or proposed plan

10  change and the actuarial impact statement of the proposed plan

11  or proposed plan change shall be furnished to the division

12  prior to the last public hearing thereon. Such statement shall

13  also indicate whether the proposed plan or proposed plan

14  change is in compliance with s. 14, Art. X of the State

15  Constitution and those provisions of part VII of chapter 112

16  which are not expressly provided in this chapter.

17  Notwithstanding any other provision, only those local law

18  plans created by special act of legislation prior to May 23,

19  1939, shall be deemed to meet the minimum benefits and minimum

20  standards only in this chapter.

21         (3)  Notwithstanding any other provision, with respect

22  to any supplemental plan municipality:

23         (a)  Section 185.02(4)(a) shall not apply, and a local

24  law plan and a supplemental plan may continue to use their

25  definition of compensation or salary in existence on the

26  effective date of this act.

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

28  law plan and a supplemental plan shall continue to be

29  administered by a board or boards of trustees numbered,

30  constituted, and selected as the board or boards were

31  numbered, constituted, and selected on December 1, 2000.

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    Florida Senate - 2003                                  SB 2334
    7-385-03                                           See HB 1245




 1         (c)  The election set forth in paragraph (1)(b) shall

 2  be deemed to have been made.

 3         (4)  The retirement plan setting forth the benefits and

 4  the trust agreement, if any, covering the duties and

 5  responsibilities of the trustees and the regulations of the

 6  investment of funds must be in writing and copies made

 7  available to the participants and to the general public.

 8         Section 3.  This act shall take effect upon becoming a

 9  law.

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