HB 0603 2003
1	CHAMBER ACTION
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6	The Committee on State Administration 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 the General Pension and Retirement Fund
12	of the City of Pensacola, Escambia County; amending
13	chapter 99-474, Laws of Florida, as amended by chapter
14	2000-470, Laws of Florida; revising definitions; revising
15	provisions for investments of funds; providing an
16	effective date.
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18	Be It Enacted by the Legislature of the State of Florida:
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20	Section 1. Section 2 of chapter 99-474, Laws of Florida,
21	as amended by chapter 2000-470, Laws of Florida, is amended to
22	read:
23	Section 2. Definitions.--The words and phrases as used in
24	this act shall have the following meanings unless a different
25	meaning is plainly required by the context:
26	(1) Act.--The General Pension and Retirement Fund Special
27	Act.
28	(2) Actuary.--The person, firm, or corporation, one of
29	whose officers shall be a member of the Society of Actuaries and
30	an enrolled actuary, as defined by the Employee Retirement
31	Income Security Act of 1974, authorized by the board of trustees
32	of the fund to render actuarial services to the fund.
33	(3) Average monthly salary.--One twenty-fourth of the
34	salary of the 2 best years of the last 5 years of credited
35	service prior to retirement or death.
36	(4) Bank of national repute.--See investment bank of
37	national repute.
38	(4)(5)Beneficiary.--Person so designated in writing by a
39	member of the general pension plan who may become entitled to
40	receive a refund of contributions made by a member of the plan.
41	(5)(6)Best 2 years.--Two separate periods of 365
42	consecutive days.
43	(6)(7)Board of trustees, the board, or the general
44	pension board.--The pension board, consisting of six members as
45	provided in this act.
46	(7)(8)City.--The City of Pensacola.
47	(8)(9)City council.--The city council of the City of
48	Pensacola.
49	(9)(10)Code.--Internal Revenue Code of 1986, as amended.
50	(10)(11)Credited service years or credited years of
51	service.--A period of service years credited to a member of the
52	plan in which the member has contributed an amount to the
53	General Pension and Retirement Fund, as provided in this act.
54	(11)(12)Dependent.--The spouse or dependent children
55	under the age of 18 of a member of the plan.
56	(12)(13)Dependent children.--A son or daughter under 18
57	years of age who is born in wedlock to a member of the plan;
58	and/or a child under 18 years of age adopted by a member of the
59	plan; and/or a child under 18 years of age dependent upon a
60	member of the plan for support whose dependency is proven to the
61	satisfaction of the board or, in the alternative, whose
62	dependency has been established by a final court order.
63	(13)(14)Disability.--Physical or mental impairment which
64	renders an employee partially and permanently or totally and
65	permanently unable to perform the duties of his or her
66	employment or unable to perform any substantial gainful
67	employment.
68	(14)(15)ECUA.--Escambia County Utilities Authority.
69	(15)(16)General Pension and Retirement Fund, general
70	pension plan, or the plan.--The special fund created exclusively
71	for the purposes provided in this act.
72	(17) Investment bank of national repute.-- A bank having
73	trust powers or a trust company which is experienced in the
74	fiduciary investment of pension funds from more than one state.
75	(16)(18)Line of duty.--Within the scope of employment as
76	an employee of the city during such times as such employee was
77	rendering services to the city.
78	(17)(19)Major fraction of a year.--For calculation of
79	benefits in this act, 6 months and 1 day.
80	(18)(20)Member of the plan.--An individual who has been
81	credited with a period of service under the plan and has
82	contributed an amount to the plan, as provided in this act.
83	(19)(21)Nonemployment.--Any period of time an individual
84	is not employed in any capacity by the City of Pensacola.
85	(20)(22)Normal retirement and early retirement.-- Any
86	retirement not based upon a disability, illness, or injury.
87	(21)(23)Plan.--The General Pension and Retirement Fund.
88	(22)(24)Plan administrator.--The Director of Finance of
89	the City of Pensacola.
90	(23)(25)Pensioner.--A member of the plan who has drawn or
91	is drawing a pension under the provisions of this act.
92	(24)(26)Permanent full-time employee.--A person employed
93	by the city, working an established work period set forth by
94	city policy, and not employed on a part-time, temporary, or
95	specified timeframe basis.
96	(25) Professional money manager.--An investment management
97	firm that is registered as an investment advisor with the
98	Securities and Exchange Commission pursuant to the Investment
99	Advisors Act of 1940, which firm shall acknowledge in writing
100	its fiduciary duty to the Board of Trustees.
101	(26)(27)Refund of contributions.--The distribution of
102	funds contributed by a member of the plan.
103	(27)(28)Retiree.--A member of the plan, or a dependent of
104	a member, who has drawn or is drawing a pension under the
105	provisions of this act.
106	(28)(29)Salary.--The total cash remuneration paid to the
107	member of the plan by the city for services rendered before all
108	pretax, salary deferral, or salary reduction contributions made
109	to the General Pension and Retirement Fund on behalf of the
110	general pension plan member under section 404(h)(2) of the
111	Internal Revenue Code and any code section 457 plan and section
112	125 plan of the city. Unless otherwise provided by the city
113	council, "salary" shall exclude any educational incentive pay,
114	field training pay, certificate pay, specialized duty pay,
115	pistol qualifications pay, clothing allowance, education
116	benefit, accumulated sick leave pay at retirement, accumulated
117	vacation pay at retirement, shift differential pay,
118	nonsubstantiated business expenses, noncash benefits such as
119	employer-provided vehicles, or any other city-provided benefit,
120	severance pay, or similar lump-sum payment made upon separation
121	of service, and any other pay excluded by the city council.
122	(29)(30)Service under the plan.--A period of service
123	years credited to a member of the plan, during which the member
124	has contributed an amount to the General Pension and Retirement
125	Fund, as provided in this act.
126	(30)(31)Spouse.--Under the laws of the State of Florida,
127	the legally married husband or wife of the member of the plan.
128	(31)(32)Surviving spouse.--The legally married husband or
129	wife of a member of the plan who outlives the member of the
130	plan.
131	(32)(33)Vested member or vesting right.--A member of the
132	plan who has a right, or the right itself, to future pension
133	benefits as provided in this act.
134	Section 2. Section 36 of chapter 99-474, Laws of Florida,
135	is amended to read:
136	Section 36. Investing funds; custodian of securities,
137	contracts with professional money managersinvestment banks.--
138	(1) The pension board shall have the power and authority
139	to invest and reinvest the assets of the General Pension and
140	Retirement Fund in:
141	(a) Time or savings accounts of a national bank, a state
142	bank insured by the Federal Deposit Insurance Corporation, or a
143	savings and loan association insured by the Federal Savings and
144	Loan Insurance Corporation.
145	(b) Obligations of the United States Governmentor
146	obligations guaranteed as to principal and interest by the
147	United States Government.
148	(c) Obligations of municipal authority issued pursuant to
149	the laws of this state; however, for each of the 5 years next
150	preceding the date of investment, the income of such authority
151	available for fixed charges shall have been not less than 1 1/2
152	times its average annual fixed-charges requirement over the life
153	of its obligations.
154	(d) Bonds, stocks, or other evidences of indebtedness
155	issued or guaranteed by a corporation organized under the laws
156	of the United States, any state or organized territory of the
157	United States, or the District of Columbia; however, the board
158	shall not invest more than 5 percent of its assets in the common
159	stock or capital stock of any one issuing company, nor shall the
160	aggregate investment in any one issuing company exceed 5 percent
161	of the outstanding capital stock of the company, nor shall the
162	aggregate market value of the fund's investments in common
163	stocks exceed 75 percent of the assets of the fund, nor shall
164	the aggregate market value of the fund's investments in all
165	corporate securities exceed 80 percent of the assets of the
166	fund.
167	(e) Commingled bank and insurance company temporary
168	investment, stock, and bond funds without regard to the quality
169	restrictions for individual securities contained in paragraph
170	(d).
171	(f) Commingled bank and insurance company real estate
172	funds up to the maximum of 15 percent of assets at market value.
173	Direct ownership and operation of real estate properties are
174	prohibited.
175	(g) Guaranteed insurance contracts.
176	(h) Foreign securities, provided that the aggregate market
177	value of such investments does not exceed 25 percent of the
178	assets of the fund.
179	(2)(a) The pension board and the City of Pensacola are
180	hereby authorized to contract with one or more professional
181	moneymanagersinvestment banks of national reputeto act as
182	agents and corporate trusteesof all or any portion of the
183	assets of the fund. Such professional money manager or managers
184	The investment bank or banksshall have full investment powers
185	with respect to said assets subject to the provisions of
186	subsection (1) which limit the types of investments which may be
187	made, and subject to such further restrictions as may be imposed
188	by the board.
189	(b) The city and the board, for the purpose of contracting
190	with one or more professional money managersan investment bank
191	or banksto invest all or any portion of the fund, shall enter
192	into agreements between themselves providing for procedures for
193	selecting, entering into contracts with, and terminating
194	contracts with any such professional money manager or managers
195	investment bank or banks.
196	(3) In order to accomplish the purpose outlined in
197	subsection (2), the pension board may direct the plan
198	administrator of the city to act as the board's agent in
199	handling the administrative details concerning contracting with
200	any professional money manager or managersthe investment bank;
201	however, the plan administrator or his or her designee shall
202	report the status of the pension funds to the pension board on a
203	quarterly basis or with greater frequency as requested by the
204	board, and the pension board shall review same and give
205	directions to the plan administrator with respect to the
206	continued contract status of the professional money manager or
207	managersinvestment bank.
208	Section 3. This act shall take effect upon becoming a law.
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