| 1 | The Local Government Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the City of Jacksonville; amending |
| 7 | chapter 92-341, Laws of Florida, as amended; revising |
| 8 | provisions of Article 22 of the charter of the City of |
| 9 | Jacksonville, relating to the Jacksonville Police and Fire |
| 10 | Pension Board of Trustees; revising trustees' terms of |
| 11 | office; providing authority of the board with regard to |
| 12 | assets of the plan; revising provisions relating to the |
| 13 | investment and reinvestment of assets in the pension fund; |
| 14 | providing for applicability of state law; providing |
| 15 | severability; providing an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Sections 22.02(a) and (d), 22.04(b), and 22.08 |
| 20 | of Article 22 of the charter of the City of Jacksonville as |
| 21 | readopted in chapter 92-341, Laws of Florida, as amended, are |
| 22 | amended to read: |
| 23 | ARTICLE 22. JACKSONVILLE POLICE AND FIRE PENSION BOARD OF |
| 24 | TRUSTEES |
| 25 | Section 22.02. Membership |
| 26 | (a) The membership of the Jacksonville Police and Fire |
| 27 | Pension Board of Trustees shall consist of five members, of whom |
| 28 | two shall be legal residents of the City of Jacksonville |
| 29 | appointed by the city council; one shall be a police officer |
| 30 | elected by a majority vote of the police officers who are |
| 31 | members of the pension fund, one shall be a firefighter elected |
| 32 | by a majority of the firefighters who are members of the pension |
| 33 | fund, and the last shall be chosen by a majority of the previous |
| 34 | pervious four members. The fifth member's name shall be |
| 35 | submitted to the City Council, which shall, as a ministerial |
| 36 | act, appoint such person as the fifth member of the board. |
| 37 | Effective for all new appointments after July 1, 2005, each |
| 38 | resident member shall serve as a trustee for a period of 4 2 |
| 39 | years, unless sooner replaced by the City Council at whose |
| 40 | pleasure he or she shall serve, and may succeed himself or |
| 41 | herself as a trustee. Effective for all elections after July 1, |
| 42 | 2005, the police officer and firefighter members shall serve as |
| 43 | trustees for a period of 4 2 years, unless they shall sooner |
| 44 | leave the employment of the city as a police officer or |
| 45 | firefighter, whereupon the class of employees whose elected |
| 46 | representative has left office shall elect a successor to fill |
| 47 | the unexpired term of office as provided for in this section. |
| 48 | Each employee member may succeed himself or herself in office. |
| 49 | Effective for all new appointments after July 1, 2005, the fifth |
| 50 | member shall serve a term of 4 2 years and may succeed himself |
| 51 | or herself in office. Members shall continue to serve until |
| 52 | their respective successors are appointed, elected, or selected. |
| 53 | (d) The provisions of chapters 175 and 185, Florida |
| 54 | Statutes, the provisions of s. 286.012, Florida Statutes, and |
| 55 | the provisions of ss. 112.311-112.3175 and chapter 112, part VII |
| 56 | ss.112.60-112.66, Florida Statutes, inclusive, and as the same |
| 57 | may be amended in the future, shall apply to each member of the |
| 58 | board. The board shall have the authority to invest and reinvest |
| 59 | the assets of the plan without regard to any limitation in |
| 60 | chapters 175 and 185, Florida Statutes, and shall be bound by |
| 61 | the provisions of chapter 112, part VII, Florida Statutes, and |
| 62 | the applicable provisions of s. 215.47, Florida Statutes. Prior |
| 63 | to the adoption of any change in asset allocation or the |
| 64 | introduction of a new asset class, the board shall give written |
| 65 | notice of the meeting at which the proposed change shall be |
| 66 | considered to the City Council Finance Committee. |
| 67 | Section 22.04. General powers.--The board shall have the |
| 68 | power to: |
| 69 | (b) Invest and reinvest the assets of pension fund in: |
| 70 | (1) Any lawful investment as provided in applicable |
| 71 | provisions of s. 215.47, Florida Statutes, provided the |
| 72 | investment is permitted in the written investment policy adopted |
| 73 | by the board as provided in chapter 112, part VII, Florida |
| 74 | Statutes. |
| 75 | (2) Notwithstanding anything to the contrary in the |
| 76 | applicable provisions of s. 215.47, Florida Statutes, |
| 77 | investments in fixed real estates assets shall not exceed 10 |
| 78 | percent of the assets of the plan, at cost. |
| 79 | (1) Time or savings accounts of a national bank, a state |
| 80 | bank insured by the Federal Deposit Insurance Corporation, or a |
| 81 | savings and loan association insured by the Federal Savings and |
| 82 | Loan Insurance Corporation. |
| 83 | (2) Obligations of the United States or obligations |
| 84 | guaranteed as to principle and interest by the United States. |
| 85 | (3) Bonds issued by the State of Israel. |
| 86 | (4) Bonds, stocks, or other evidences of indebtedness |
| 87 | issued or guaranteed by a corporation organized under the laws |
| 88 | of the United States, any state or organized territory of the |
| 89 | United States, or the District of Columbia, provided the stock |
| 90 | of the corporation is listed on any one or more of the national |
| 91 | stock exchanges and the bonds hold a rating in one of the three |
| 92 | highest classifications by a major rating service; and the board |
| 93 | of trustees shall not invest more the 5 percent of its assets in |
| 94 | the common stock or capital stock of any one issuing company, |
| 95 | nor shall the aggregate investment in any one issuing company |
| 96 | exceed 5 percent of the outstanding capital stock of the |
| 97 | company, nor shall the aggregate of its investments under this |
| 98 | paragraph exceed 50 percent of the fund's assets in bonds, or 60 |
| 99 | percent of the fund's assets in common stocks, or investments |
| 100 | authorized by chapter 175 and 185, F.S. for public pension |
| 101 | funds. Such investments must be recommended by either a |
| 102 | competent nationally recognized investment counseling firm or a |
| 103 | corporate trustee who is nationally recognized in pension fund |
| 104 | investments. |
| 105 | (5) At no time shall the investment in real estate and |
| 106 | real estate related securities exceed 10 percent of the book |
| 107 | value of the fund. Such investment must be recommended by either |
| 108 | a competent nationally recognized investment counseling firm or |
| 109 | a corporate trustee who is nationally recognized in pension fund |
| 110 | investments. |
| 111 | (3)(6) Investment plan. |
| 112 | (i) In making investments for the plan, the board shall |
| 113 | make no investment after June 30, 1996, which is not in |
| 114 | conformance with the plan's investment plan. The investment plan |
| 115 | must include, among other items: the investment objectives; |
| 116 | permitted types of securities in which the board may not invest; |
| 117 | the criteria to measure annual investment performance; and any |
| 118 | other applicable criteria established by the board. |
| 119 | (ii) The investment plan shall be developed by the plan |
| 120 | administrator and shall be approved by the board. Upon adoption |
| 121 | by the board, the investment plan and any amendments shall be |
| 122 | promptly filed with the Division of Retirement, and the plan's |
| 123 | sponsor and plan actuary. |
| 124 | (iii) The effective date of the investment plan shall be |
| 125 | the 31st calendar day following the filing date with the plan |
| 126 | sponsor. Investments permitted by the investment plan shall not |
| 127 | be made prior to the effective date of the investment plan. |
| 128 | (iv) The investment plan may be amended at any time |
| 129 | subject to paragraphs (ii) and (iii). |
| 130 | (v) For each illiquid investment (an investment for which |
| 131 | a generally recognized market is not available or for which |
| 132 | there is no consistent or generally accepted pricing mechanism) |
| 133 | the investment plan shall: include the criteria set forth in s. |
| 134 | 215.47(6), Florida Statutes; require a statement as to the |
| 135 | additional expected yield anticipated to compensate the plan for |
| 136 | the additional risk of such investment which additional yield is |
| 137 | not available from an investment for which there is a generally |
| 138 | recognized market; require the board to verify the determination |
| 139 | of the fair market value for each such investment as of each |
| 140 | date as of which an actuarial valuation is prepared and that the |
| 141 | determination complies with all applicable state and federal |
| 142 | requirements; and require the board to disclose to the Division |
| 143 | of Retirement and the plan's sponsor each such investment as of |
| 144 | each date as of which an actuarial valuation is prepared for |
| 145 | which the fair market value is not provided. |
| 146 | (vi) Immediately prior to the date as of which each |
| 147 | actuarial valuation is prepared, the board shall determine the |
| 148 | total expected annual rate of return for the plan's assets for |
| 149 | the year beginning with the date as of which the actuarial |
| 150 | valuation is prepared, for each of the next several years and |
| 151 | for the long-term thereafter. This determination shall be |
| 152 | promptly filed with the Division of Retirement, and the plan's |
| 153 | sponsor and plan actuary. |
| 154 | Section 22.08. Applicability of state law.--Except as |
| 155 | otherwise provided herein, the board shall be bound in its |
| 156 | actions by the applicable provisions of: |
| 157 | (a) Chapter 185, Florida Statutes, as amended. |
| 158 | (b) Chapter 175, Florida Statutes, as amended. |
| 159 | (c) Section 14, Article X of the State Constitution. |
| 160 | (d) Chapter 112, part VII, Florida Statutes, as amended. |
| 161 | (e) Section 215.47, Florida Statutes, as amended. |
| 162 | Section 2. If any part of this act shall be held void, |
| 163 | voidable, or otherwise unenforceable by any court of law or |
| 164 | equity, nothing contained in this act shall limit the |
| 165 | enforceability of any other part. |
| 166 | Section 3. This act shall take effect upon becoming a law. |