HB 0603 2003
1	CHAMBER ACTION
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6	The Committee on Local Government & Veterans' Affairs recommends
7	the following:
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9	Committee Substitute
10	Remove the entire bill and insert:
11	A bill to be entitled
12	An act relating to the General Pension and Retirement Fund
13	of the City of Pensacola, Escambia County; amending
14	chapter 99-474, Laws of Florida, as amended by chapter
15	2000-470, Laws of Florida; revising definitions; revising
16	provisions for investments of funds; providing an
17	effective date.
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19	Be It Enacted by the Legislature of the State of Florida:
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21	Section 1. Section 2 of chapter 99-474, Laws of Florida,
22	as amended by chapter 2000-470, Laws of Florida, is amended to
23	read:
24	Section 2. Definitions.--The words and phrases as used in
25	this act shall have the following meanings unless a different
26	meaning is plainly required by the context:
27	(1) Act.--The General Pension and Retirement Fund Special
28	Act.
29	(2) Actuary.--The person, firm, or corporation, one of
30	whose officers shall be a member of the Society of Actuaries and
31	an enrolled actuary, as defined by the Employee Retirement
32	Income Security Act of 1974, authorized by the board of trustees
33	of the fund to render actuarial services to the fund.
34	(3) Average monthly salary.--One twenty-fourth of the
35	salary of the 2 best years of the last 5 years of credited
36	service prior to retirement or death.
37	(4) Bank of national repute.--See investment bank of
38	national repute.
39	(4)(5)Beneficiary.--Person so designated in writing by a
40	member of the general pension plan who may become entitled to
41	receive a refund of contributions made by a member of the plan.
42	(5)(6)Best 2 years.--Two separate periods of 365
43	consecutive days.
44	(6)(7)Board of trustees, the board, or the general
45	pension board.--The pension board, consisting of six members as
46	provided in this act.
47	(7)(8)City.--The City of Pensacola.
48	(8)(9)City council.--The city council of the City of
49	Pensacola.
50	(9)(10)Code.--Internal Revenue Code of 1986, as amended.
51	(10)(11)Credited service years or credited years of
52	service.--A period of service years credited to a member of the
53	plan in which the member has contributed an amount to the
54	General Pension and Retirement Fund, as provided in this act.
55	(11)(12)Dependent.--The spouse or dependent children
56	under the age of 18 of a member of the plan.
57	(12)(13)Dependent children.--A son or daughter under 18
58	years of age who is born in wedlock to a member of the plan;
59	and/or a child under 18 years of age adopted by a member of the
60	plan; and/or a child under 18 years of age dependent upon a
61	member of the plan for support whose dependency is proven to the
62	satisfaction of the board or, in the alternative, whose
63	dependency has been established by a final court order.
64	(13)(14)Disability.--Physical or mental impairment which
65	renders an employee partially and permanently or totally and
66	permanently unable to perform the duties of his or her
67	employment or unable to perform any substantial gainful
68	employment.
69	(14)(15)ECUA.--Escambia County Utilities Authority.
70	(15)(16)General Pension and Retirement Fund, general
71	pension plan, or the plan.--The special fund created exclusively
72	for the purposes provided in this act.
73	(17) Investment bank of national repute.-- A bank having
74	trust powers or a trust company which is experienced in the
75	fiduciary investment of pension funds from more than one state.
76	(16)(18)Line of duty.--Within the scope of employment as
77	an employee of the city during such times as such employee was
78	rendering services to the city.
79	(17)(19)Major fraction of a year.--For calculation of
80	benefits in this act, 6 months and 1 day.
81	(18)(20)Member of the plan.--An individual who has been
82	credited with a period of service under the plan and has
83	contributed an amount to the plan, as provided in this act.
84	(19)(21)Nonemployment.--Any period of time an individual
85	is not employed in any capacity by the City of Pensacola.
86	(20)(22)Normal retirement and early retirement.-- Any
87	retirement not based upon a disability, illness, or injury.
88	(21)(23)Plan.--The General Pension and Retirement Fund.
89	(22)(24)Plan administrator.--The Director of Finance of
90	the City of Pensacola.
91	(23)(25)Pensioner.--A member of the plan who has drawn or
92	is drawing a pension under the provisions of this act.
93	(24)(26)Permanent full-time employee.--A person employed
94	by the city, working an established work period set forth by
95	city policy, and not employed on a part-time, temporary, or
96	specified timeframe basis.
97	(25)(27)Refund of contributions.--The distribution of
98	funds contributed by a member of the plan.
99	(26)(28)Retiree.--A member of the plan, or a dependent of
100	a member, who has drawn or is drawing a pension under the
101	provisions of this act.
102	(27)(29)Salary.--The total cash remuneration paid to the
103	member of the plan by the city for services rendered before all
104	pretax, salary deferral, or salary reduction contributions made
105	to the General Pension and Retirement Fund on behalf of the
106	general pension plan member under section 404(h)(2) of the
107	Internal Revenue Code and any code section 457 plan and section
108	125 plan of the city. Unless otherwise provided by the city
109	council, "salary" shall exclude any educational incentive pay,
110	field training pay, certificate pay, specialized duty pay,
111	pistol qualifications pay, clothing allowance, education
112	benefit, accumulated sick leave pay at retirement, accumulated
113	vacation pay at retirement, shift differential pay,
114	nonsubstantiated business expenses, noncash benefits such as
115	employer-provided vehicles, or any other city-provided benefit,
116	severance pay, or similar lump-sum payment made upon separation
117	of service, and any other pay excluded by the city council.
118	(28)(30)Service under the plan.--A period of service
119	years credited to a member of the plan, during which the member
120	has contributed an amount to the General Pension and Retirement
121	Fund, as provided in this act.
122	(29)(31)Spouse.--Under the laws of the State of Florida,
123	the legally married husband or wife of the member of the plan.
124	(30)(32)Surviving spouse.--The legally married husband or
125	wife of a member of the plan who outlives the member of the
126	plan.
127	(31)(33)Vested member or vesting right.--A member of the
128	plan who has a right, or the right itself, to future pension
129	benefits as provided in this act.
130	Section 2. Section 36 of chapter 99-474, Laws of Florida,
131	is amended to read:
132	Section 36. Investing funds; custodian of securities,
133	contracts with professional money managersinvestment banks.--
134	(1) The pension board shall have the power and authority
135	to invest and reinvest the assets of the General Pension and
136	Retirement Fund in:
137	(a) Time or savings accounts of a national bank, a state
138	bank insured by the Federal Deposit Insurance Corporation, or a
139	savings and loan association insured by the Federal Savings and
140	Loan Insurance Corporation.
141	(b) Obligations of the United States Governmentor
142	obligations guaranteed as to principal and interest by the
143	United States Government.
144	(c) Obligations of municipal authority issued pursuant to
145	the laws of this state; however, for each of the 5 years next
146	preceding the date of investment, the income of such authority
147	available for fixed charges shall have been not less than 1 1/2
148	times its average annual fixed-charges requirement over the life
149	of its obligations.
150	(d) Bonds, stocks, or other evidences of indebtedness
151	issued or guaranteed by a corporation organized under the laws
152	of the United States, any state or organized territory of the
153	United States, or the District of Columbia; however, the board
154	shall not invest more than 5 percent of its assets in the common
155	stock or capital stock of any one issuing company, nor shall the
156	aggregate investment in any one issuing company exceed 5 percent
157	of the outstanding capital stock of the company, nor shall the
158	aggregate market value of the fund's investments in common
159	stocks exceed 75 percent of the assets of the fund, nor shall
160	the aggregate market value of the fund's investments in all
161	corporate securities exceed 80 percent of the assets of the
162	fund.
163	(e) Commingled bank and insurance company temporary
164	investment, stock, and bond funds without regard to the quality
165	restrictions for individual securities contained in paragraph
166	(d).
167	(f) Commingled bank and insurance company real estate
168	funds up to the maximum of 15 percent of assets at market value.
169	Direct ownership and operation of real estate properties are
170	prohibited.
171	(g) Guaranteed insurance contracts.
172	(h) Foreign securities, provided that the aggregate market
173	value of such investments does not exceed 25 percent of the
174	assets of the fund.
175	(2)(a) The pension board and the City of Pensacola are
176	hereby authorized to contract with one or more professional
177	moneymanagersinvestment banks of national reputeto act as
178	agents and corporate trusteesof all or any portion of the
179	assets of the fund. Such professional money manager or managers
180	The investment bank or banksshall have full investment powers
181	with respect to said assets subject to the provisions of
182	subsection (1) which limit the types of investments which may be
183	made, and subject to such further restrictions as may be imposed
184	by the board.
185	(b) The city and the board, for the purpose of contracting
186	with one or more professional money managersan investment bank
187	or banksto invest all or any portion of the fund, shall enter
188	into agreements between themselves providing for procedures for
189	selecting, entering into contracts with, and terminating
190	contracts with any such professional money manager or managers
191	investment bank or banks.
192	(3) In order to accomplish the purpose outlined in
193	subsection (2), the pension board may direct the plan
194	administrator of the city to act as the board's agent in
195	handling the administrative details concerning contracting with
196	any professional money manager or managersthe investment bank;
197	however, the plan administrator or his or her designee shall
198	report the status of the pension funds to the pension board on a
199	quarterly basis or with greater frequency as requested by the
200	board, and the pension board shall review same and give
201	directions to the plan administrator with respect to the
202	continued contract status of the professional money manager or
203	managersinvestment bank.
204	Section 3. This act shall take effect upon becoming a law.
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