HB 1159

1
A bill to be entitled
2An act relating to the Florida Retirement System; amending
3s. 121.055, F.S.; during a specified period of time,
4permitting local government employees who are members of
5the Senior Management Service Class, who have withdrawn
6from the Florida Retirement System, to elect membership in
7the defined benefit program or the public employee
8optional retirement program of the system; prescribing
9requirements in making such election; providing for
10payment of the costs of such membership; amending s.
11175.041, F.S.; providing that any municipality that
12provides fire protection services to another municipality
13under an interlocal agreement is eligible to receive
14premium taxes; authorizing the municipality that receives
15the fire protection services to enact an ordinance levying
16the tax; authorizing the Division of Retirement within the
17Department of Management Services to distribute the
18premium taxes; amending s. 175.101, F.S.; authorizing any
19municipality that has entered into an interlocal agreement
20for fire protection services with another municipality to
21impose an excise tax on entities that are engaged in the
22business of property insurance; amending s. 121.021, F.S.;
23redefining the term "compensation" to include certain
24supplementary payments made to firefighters, paramedics,
25and emergency medical technicians and to certain employer-
26reported retirement contributions; providing a finding of
27important state interest; providing an effective date.
28
29Be It Enacted by the Legislature of the State of Florida:
30
31     Section 1.  Paragraph (b) of subsection (1) of section
32121.055, Florida Statutes, is amended to read:
33     121.055  Senior Management Service Class.--There is hereby
34established a separate class of membership within the Florida
35Retirement System to be known as the "Senior Management Service
36Class," which shall become effective February 1, 1987.
37     (1)
38     (b)1.  Except as provided in subparagraph 2., effective
39January 1, 1990, participation in the Senior Management Service
40Class shall be compulsory for the president of each community
41college, the manager of each participating city or county, and
42all appointed district school superintendents.  Effective
43January 1, 1994, additional positions may be designated for
44inclusion in the Senior Management Service Class of the Florida
45Retirement System, provided that:
46     a.  Positions to be included in the class shall be
47designated by the local agency employer.  Notice of intent to
48designate positions for inclusion in the class shall be
49published once a week for 2 consecutive weeks in a newspaper of
50general circulation published in the county or counties
51affected, as provided in chapter 50.
52     b.  Up to 10 nonelective full-time positions may be
53designated for each local agency employer reporting to the
54Department of Management Services; for local agencies with 100
55or more regularly established positions, additional nonelective
56full-time positions may be designated, not to exceed 1 percent
57of the regularly established positions within the agency.
58     c.  Each position added to the class must be a managerial
59or policymaking position filled by an employee who is not
60subject to continuing contract and serves at the pleasure of the
61local agency employer without civil service protection, and who:
62     (I)  Heads an organizational unit; or
63     (II)  Has responsibility to effect or recommend personnel,
64budget, expenditure, or policy decisions in his or her areas of
65responsibility.
66     2.  In lieu of participation in the Senior Management
67Service Class, members of the Senior Management Service Class
68pursuant to the provisions of subparagraph 1. may withdraw from
69the Florida Retirement System altogether. The decision to
70withdraw from the Florida Retirement System shall be irrevocable
71for as long as the employee holds such a position. Any service
72creditable under the Senior Management Service Class shall be
73retained after the member withdraws from the Florida Retirement
74System; however, additional service credit in the Senior
75Management Service Class shall not be earned after such
76withdrawal.  Such members shall not be eligible to participate
77in the Senior Management Service Optional Annuity Program.
78     3.  Effective January 1, 2006, through June 30, 2006, an
79employee who has withdrawn from the Florida Retirement System
80under subparagraph 2. has one opportunity to elect to
81participate in either the defined benefit program or the Public
82Employee Optional Retirement Program of the Florida Retirement
83System.
84     a.  If the employee elects to participate in the Public
85Employee Optional Retirement Program, membership shall be
86prospective, and the applicable provisions of s. 121.4501(4)
87shall govern the election.
88     b.  If the employee elects to participate in the defined
89benefit program of the Florida Retirement System, the employee
90shall, upon payment to the system trust fund of the amount
91calculated under sub-sub-subparagraph (I), receive service
92credit for prior service based upon the time during which the
93employee had withdrawn from the system.
94     (I)  The cost for such credit shall be an amount
95representing the actuarial accrued liability for the affected
96period of service. The cost shall be calculated using the
97discount rate and other relevant actuarial assumptions that were
98used to value the Florida Retirement System defined benefit plan
99liabilities in the most recent actuarial valuation. The
100calculation shall include any service already maintained under
101the defined benefit plan in addition to the period of
102withdrawal. The actuarial accrued liability attributable to any
103service already maintained under the defined benefit plan shall
104be applied as a credit to the total cost resulting from the
105calculation. The division shall ensure that the transfer sum is
106prepared using a formula and methodology certified by an
107actuary.
108     (II)  The employee must transfer a sum representing the net
109cost owed for the actuarial accrued liability in sub-sub-
110subparagraph (I) immediately following the time of such
111movement, determined assuming that attained service equals the
112sum of service in the defined benefit program and the period of
113withdrawal.
114     Section 2.  Subsection (3) of section 175.041, Florida
115Statutes, is amended to read:
116     175.041  Firefighters' Pension Trust Fund created;
117applicability of provisions.--For any municipality, special fire
118control district, chapter plan, local law municipality, local
119law special fire control district, or local law plan under this
120chapter:
121     (3)  The provisions of this chapter shall apply only to
122municipalities organized and established pursuant to the laws of
123the state and to special fire control districts, and said
124provisions shall not apply to the unincorporated areas of any
125county or counties except with respect to special fire control
126districts that include unincorporated areas, nor shall the
127provisions hereof apply to any governmental entity whose
128firefighters are eligible to participate in the Florida
129Retirement System.
130     (a)  Special fire control districts that include, or
131consist exclusively of, unincorporated areas of one or more
132counties may levy and impose the tax and participate in the
133retirement programs enabled by this chapter.
134     (b)  With respect to the distribution of premium taxes, a
135single consolidated government consisting of a former county and
136one or more municipalities, consolidated pursuant to s. 3 or s.
1376(e) (6)(e), Art. VIII of the State Constitution, is also
138eligible to participate under this chapter. The consolidated
139government shall notify the division when it has entered into an
140interlocal agreement to provide fire services to a municipality
141within its boundaries. The municipality may enact an ordinance
142levying the tax as provided in s. 175.101. Upon being provided
143copies of the interlocal agreement and the municipal ordinance
144levying the tax, the division may distribute any premium taxes
145reported for the municipality to the consolidated government as
146long as the interlocal agreement is in effect.
147     (c)  Any municipality that has entered into an interlocal
148agreement to provide fire protection services to any other
149incorporated municipality, in its entirety, for a period of 12
150months or more may be eligible to receive the premium taxes
151reported for such other municipality. In order to be eligible
152for such premium taxes, the municipality providing the fire
153services must notify the division that it has entered into an
154interlocal agreement with another municipality. The municipality
155receiving the fire services may enact an ordinance levying the
156tax as provided in s. 175.101. Upon being provided copies of the
157interlocal agreement and the municipal ordinance levying the
158tax, the division may distribute any premium taxes reported for
159the municipality receiving the fire services to the
160participating municipality providing the fire services as long
161as the interlocal agreement is in effect.
162     Section 3.  Section 175.101, Florida Statutes, is amended
163to read:
164     175.101  State excise tax on property insurance premiums
165authorized; procedure.--For any municipality, special fire
166control district, chapter plan, local law municipality, local
167law special fire control district, or local law plan under this
168chapter:
169     (1)  Each municipality or special fire control district in
170this state described and classified in s. 175.041, having a
171lawfully established firefighters' pension trust fund or
172municipal fund or special fire control district fund, by
173whatever name known, providing pension benefits to firefighters
174as provided under this chapter, may assess and impose on every
175insurance company, corporation, or other insurer now engaged in
176or carrying on, or who shall hereinafter engage in or carry on,
177the business of property insurance as shown by the records of
178the Office of Insurance Regulation of the Financial Services
179Commission an excise tax in addition to any lawful license or
180excise tax now levied by each of the municipalities or special
181fire control districts, respectively, amounting to 1.85 percent
182of the gross amount of receipts of premiums from policyholders
183on all premiums collected on property insurance policies
184covering property within the corporate limits of such
185municipalities or within the legally defined boundaries of
186special fire control districts, respectively. Whenever the
187boundaries of a special fire control district that has lawfully
188established a firefighters' pension trust fund encompass a
189portion of the corporate territory of a municipality that has
190also lawfully established a firefighters' pension trust fund,
191that portion of the tax receipts attributable to insurance
192policies covering property situated both within the municipality
193and the special fire control district shall be given to the fire
194service provider. The agent shall identify the fire service
195provider on the property owner's application for insurance.  
196Remaining revenues collected pursuant to this chapter shall be
197distributed to the municipality or special fire control district
198according to the location of the insured property.
199     (2)  In the case of multiple peril policies with a single
200premium for both the property and casualty coverages in such
201policies, 70 percent of such premium shall be used as the basis
202for the 1.85-percent tax.
203     (3)  This excise tax shall be payable annually on March 1
204of each year after the passage of an ordinance, in the case of a
205municipality, or resolution, in the case of a special fire
206control district, assessing and imposing the tax authorized by
207this section.  Installments of taxes shall be paid according to
208the provision of s. 624.5092(2)(a), (b), and (c).
209
210This section also applies to any municipality consisting of a
211single consolidated government which is made up of a former
212county and one or more municipalities, consolidated pursuant to
213the authority in s. 3 or s. 6(e), Art. VIII of the State
214Constitution, and to property insurance policies covering
215property within the boundaries of the consolidated government,
216regardless of whether the properties are located within one or
217more separately incorporated areas within the consolidated
218government, provided the properties are being provided fire
219protection services by the consolidated government. This section
220also applies to any municipality, as provided in s.
221175.041(3)(c), which has entered into an interlocal agreement to
222receive fire protection services from another municipality
223participating under chapter 175. The excise tax may be levied on
224all premiums collected on property insurance policies covering
225property located within the corporate limits of the municipality
226receiving the fire protection services, but will be available
227for distribution to the municipality providing the fire
228protection services.
229     Section 4.  Paragraph (a) of subsection (22) of section
230121.021, Florida Statutes, is amended to read:
231     121.021  Definitions.--The following words and phrases as
232used in this chapter have the respective meanings set forth
233unless a different meaning is plainly required by the context:
234     (22)  "Compensation" means the monthly salary paid a member
235by his or her employer for work performed arising from that
236employment.
237     (a)  Compensation shall include:
238     1.  Overtime payments paid from a salary fund.
239     2.  Accumulated annual leave payments.
240     3.  Payments in addition to the employee's base rate of pay
241if all the following apply:
242     a.  The payments are paid according to a formal written
243policy that applies to all eligible employees equally;
244     b.  The policy provides that payments shall commence no
245later than the 11th year of employment;
246     c.  The payments are paid for as long as the employee
247continues his or her employment; and
248     d.  The payments are paid at least annually.
249     4.  Amounts withheld for tax sheltered annuities or
250deferred compensation programs, or any other type of salary
251reduction plan authorized under the Internal Revenue Code.
252     5.  Payments made in lieu of a permanent increase in the
253base rate of pay, whether made annually or in 12 or 26 equal
254payments within a 12-month period, when the member's base pay is
255at the maximum of his or her pay range. When a portion of a
256member's annual increase raises his or her pay range and the
257excess is paid as a lump sum payment, such lump sum payment
258shall be compensation for retirement purposes.
259     6.  Effective July 1, 2002, salary supplements made
260pursuant to s. 1012.72 requiring a valid National Board for
261Professional Standards certificate, notwithstanding the
262provisions of subparagraph 3.
263     7.  Effective July 1, 2005, salary supplements made to
264firefighters, paramedics, or emergency medical technicians for
265the successful completion of employer-approved educational
266training or for additional job-related duties and
267responsibilities, notwithstanding the provisions of subparagraph
2683. For all periods prior to July 1, 2005, employer-reported
269retirement contributions on these supplemental payments shall be
270compensation.
271     Section 5.  The Legislature finds that a proper and
272legitimate state purpose is served when employees and retirees
273of the state and of its political subdivisions, and the
274dependents, survivors, and beneficiaries of such employees and
275retirees, are extended the basic protections afforded by
276governmental retirement systems that provide fair and adequate
277benefits that are managed, administered, and funded in an
278actuarially sound manner, as required by s. 14, Art. X of the
279State Constitution and part VII of chapter 112, Florida
280Statutes. Therefore, the Legislature determines and declares
281that section 3 of this act fulfills an important state interest.
282     Section 6.  This act shall take effect October 1, 2005.


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