HB 1409

1	A bill to be entitled
2	An act relating to the City of Tampa, Hillsborough County;
3	amending chapter 23559, Laws of Florida, 1945, as amended;
4	revising investment policy provisions to conform with
5	general law; increasing the percentage of average monthly
6	salary used to calculate monthly pension benefits for
7	Division B employees; increasing the percentage used to
8	calculate the monthly pension for Division B employees who
9	have retired under a previous City of Tampa pension plan
10	and subsequently been rehired; providing an effective
11	date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Section 6 of chapter 23559, Laws of Florida,
16	1945, as amended, is amended to read:
17	Section 6.  Administration.--The Administration of this
18	Fund shall be in charge of a pension or retirement board,
19	consisting of seven members who shall be designated as trustees
20	of the pension or retirement fund ("Board of Trustees"). Three
21	members of this Board shall be appointed by the Mayor or
22	Executive Head of the City of Tampa. Three members of this Board
23	shall be Employees participating in this Fund elected by the
24	members of this Fund. However, not more than one Employee member
25	shall be elected from the same department of the Employer. In
26	the event that two or more candidates from the same department
27	should receive sufficient number of votes for election, then
28	only the candidate receiving the highest number of votes among
29	the candidates from the same department shall be elected. The
30	Director of Finance shall be the seventh member of this Board.
31	The three members of this Board to be appointed by the Mayor or
32	Executive Head of the City, shall be appointed immediately after
33	the passage of this Act, and they shall qualify within 30 days
34	thereafter. One member appointed by the Mayor or Executive Head
35	of the City shall serve for a period of 3 years, one member for
36	a period of 2 years, and one member for a period of 1 year.
37	Three members of this Board shall be elected by the Employees
38	who are beneficiaries of this Fund. One member elected shall
39	serve for a period of 3 years, one member for a period of 2
40	years, and one member for a period of 1 year. At the expiration
41	of the term of office of each member appointed, the Mayor or
42	Executive Head of the City shall appoint his or her successor to
43	serve for a term of 3 years. Thirty days prior to the expiration
44	of the term of office of each member elected, a successor shall
45	be elected by the Employees and shall take office upon the
46	expiration of his or her predecessor's term and shall serve for
47	a term of 3 years. Vacancies on the pension or retirement board
48	before the expiration of the term of office shall be filled in
49	the same manner as prescribed for members replacing those whose
50	term of office expires for the period of the unexpired time. The
51	Board shall have the power to adopt and prescribe reasonable
52	rules, regulations, and orders necessary and proper for
53	effective administration and enforcement of this Act and for the
54	election of Trustees. The Director of Finance of the City shall
55	be the treasurer of the Board and he or she shall give bond as
56	may be prescribed by the board. The city attorney shall be the
57	legal advisor of the Board. The compensation of all persons
58	engaged by the City for the Board of Trustees and all other
59	expenses of the Board of Trustees necessary for the
60	administration of the Plan shall be paid out of the Fund at such
61	rates and in such amounts as the Board of Trustees shall
62	approve, but in no case shall the expenditures for such
63	compensation and administration exceed .5 percent of the maximum
64	of the Fund each fiscal year. The funds shall be managed by said
65	Trustees and shall be invested by the Trustees in accordance
66	with the following:
67	(A)  That the investments of the Fund shall be consistent
68	with a written investment policy adopted by the Board of
69	Trustees pursuant to section 112.661, Florida Statutes, and
70	subject to the limitations in section 215.47(1)-(8), (10), and
71	(16), Florida Statutes. In making each and all of such
72	investments, the Board of Trustees shall exercise the judgment
73	and care under the circumstances then prevailing that men or
74	women of ordinary prudence, discretion, and intelligence
75	exercise in the management of their own affairs, not in regard
76	to speculation but in regard to the permanent disposition of
77	their funds, considering the probable income therefrom as well
78	as probable safety of their capital.
79	(B)(A)  That the Board of Trustees shall retain the
80	services of one or more recognized professional investment
81	counselors or state or national banks in the State of Florida
82	offering qualified and competent investment advisory services.
83	Said banks must be capitalized at not less than $10 million,
84	having trust assets aggregating not less than $150 million in
85	value, and having not less than 500 trust accounts.
86	(C)(B)  That not less than once every 6 months a written
87	opinion shall be obtained from the investment counselor or
88	counselors as to the overall condition and composition of the
89	investment portfolio.
90	(C)  That the portfolio, representing the principal or
91	surplus funds of the pension Fund may be invested in the
92	following securities or other property, real or personal,
93	including, but without being limited to bonds, notes, or other
94	evidences of indebtedness issued, or assumed or guaranteed in
95	whole or in part by the United States or any of its agencies or
96	instrumentalities; or by any foreign government or political
97	subdivisions or agencies thereof; or by the State of Florida, or
98	by any county, city, school district, municipal corporation, or
99	other political subdivision of the State of Florida, both
100	general and revenue obligations; in mortgages and other
101	interests in realty and shares or certificates of real estate
102	investment trusts; or in such corporation bonds, notes, or other
103	evidences of indebtedness, and corporation stocks including
104	common and preferred stocks, or any corporation created or
105	existing under the laws of the United States, of any of the
106	States of the United States or of any foreign government or
107	political subdivisions or agencies thereof; provided:
108	(D)1.  That the Board of Trustees shall cause actuarial
109	surveys of the Plan to be made from time to time as deemed
110	necessary or as required by state law, by a competent actuary to
111	be selected by the Board of Trustees.
112	2.  In making each and all of such investments the Board of
113	Trustees shall exercise the judgement and care under the
114	circumstances then prevailing which men or women of ordinary
115	prudence, discretion, and intelligence exercise in the
116	management of their own affairs, not in regard to speculation
117	but in regard to the permanent disposition of their funds,
118	considering the probable income therefrom as well as probable
119	safety of their capital. However, not more than 65 percent of
120	said Fund, based on the total book value of all investments
121	held, shall be invested at any time in common and/or preferred
122	stocks, and not more than 10 percent of said Fund shall be
123	invested at any given time in the preferred and/or common stock
124	of any one corporation and its affiliates; and not more than 5
125	percent of the outstanding stock of any one corporation and its
126	affiliates shall be held by the Fund at any given time; and that
127	corporation bonds, notes, or other evidences of indebtedness
128	commonly referred to as "fixed income investments," must hold a
129	rating in one of the four highest classifications by a major
130	rating service and corporation bonds, notes, or other evidences
131	of indebtedness with an equity conversion provision used as an
132	equity substitute are not required to hold a rating in one of
133	the four highest classifications by a major rating service.
134	3.  Anything in this chapter to the contrary
135	notwithstanding, the Board of Trustees may also invest the
136	principal or surplus funds of the pension Fund, without
137	limitations, in appropriate contracts of life insurance or group
138	annuities, with insurers duly licensed to do business in
139	Florida, including any such contract or contracts which provide
140	for the placement of funds in separate accounts maintained by
141	any such insurer in accordance with the laws of Florida
142	controlling such accounts.
143	Section 2.  Section 8 of chapter 23559, Laws of Florida,
144	1945, as amended, is amended to read:
145	Section 8.  Longevity Retirement Benefits.
146	(A)  Division A Employees: An Employee in Division A whose
147	employment terminates on or after his or her Normal Retirement
148	Date shall receive a monthly pension benefit equal to 2 percent
149	of his or her Average Monthly Salary multiplied by his or her
150	Service, plus an additional .5 percent of his or her Average
151	Monthly Salary for each additional year of Service for
152	employment after 15 years for years served on or after January
153	1, 1975, until a maximum of 30 years of Service is reached.
154	(B)  Division B Employees:
155	1.  An Employee in Division B whose employment terminates
156	on or after his or her Normal Retirement Date shall receive a
157	monthly pension benefit equal to 1.25 1.20 percent of his or her
158	Average Monthly Salary multiplied by his or her Service.
159	2.  An Employee in Division B who was previously a member
160	of Division A whose employment terminates on or after his or her
161	Normal Retirement Date shall receive a pension calculated as in
162	subsection (B) 1. of this section subject to the following
163	minimum benefits: said Employee shall not receive less than his
164	or her Accrued Pension in Division A (calculated as in (A)
165	above), plus 1.25 1.20 percent of his or her Average Monthly
166	Salary multiplied by his or her Service after his or her Date of
167	Election. For the purposes of determining an Employee's Accrued
168	Pension in Division A under this subsection, his or her Average
169	Monthly Salary shall be calculated as of the Date of Election
170	and his or her Service shall be Service prior to the Date of
171	Election."
172	Section 3.  Section 16 of chapter 23559, Laws of Florida,
173	1945, as amended, is amended to read:
174	Section 16.  Reemployment of Retired Employee.--Upon the
175	employment of any person in Division A or Division B who shall
176	have retired under the pension or retirement Plan and shall be
177	receiving pension payments, such person shall resume his or her
178	participation in the Plan, shall not be entitled to receive
179	pension payments during or for the period of such additional
180	Service, the period of such retirement shall not constitute a
181	break in Service, and the period of such retirement shall not be
182	allowed as creditable Service. The monthly pension payable when
183	such officer or person is eligible to receive a pension shall
184	consist of the sum of (A) and (B) below, provided that the total
185	pension shall not be less than $100 per month after 25 years of
186	Service.
187	(A)  The monthly pension he or she was receiving
188	immediately prior to the commencement of his or her additional
189	Service; plus
190	(B)  One and one-quarter one-tenth percent of his or her
191	Average Monthly Salary at the end of his or her period of
192	additional Service multiplied by the number of years of
193	additional Service, provided, however, that this additional
194	benefit shall not be payable before the age of 62 years.
195	Section 4.  This act shall take effect October 1, 2007.

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