CS/HB 3

1
A bill to be entitled
2An act relating to firefighter and municipal police
3pensions; amending s. 175.032, F.S.; revising the
4definition of "firefighter"; amending s. 175.061, F.S.;
5authorizing the terms of office for the board of trustees
6of the firefighters' pension trust fund to be revised
7under certain circumstances; authorizing the plan
8administrator to withhold funds to pay for premiums for
9accident, health, and long-term care insurance for the
10retiree and the retiree's spouse and dependents; providing
11an exemption from liability under certain circumstances;
12amending s. 175.071, F.S.; requiring the board of trustees
13to perform its powers subject to certain fiduciary
14standards and ethics provisions; increasing the percentage
15of assets of the firefighters' pension trust fund that the
16board of trustees may invest in foreign securities;
17authorizing certain individuals to sign drafts issued upon
18the firefighters' pension trust fund; amending s. 185.05,
19F.S.; authorizing the terms of office for the board of
20trustees of the municipal police officers' retirement
21trust fund to be revised under certain circumstances;
22authorizing the plan administrator to withhold funds to
23pay for premiums for accident, health, and long-term care
24insurance for the retiree and the retiree's spouse and
25dependents; providing an exemption from liability under
26certain circumstances; amending s. 185.06, F.S.; requiring
27the board of trustees to perform its powers subject to
28certain fiduciary standards and ethics provisions;
29increasing the percentage of assets of the municipal
30police officers' retirement trust fund that the board of
31trustees may invest in foreign securities; authorizing
32certain individuals to sign drafts issued upon the
33municipal police officers' retirement trust fund;
34providing for severability; providing an effective date.
35
36Be It Enacted by the Legislature of the State of Florida:
37
38     Section 1.  Paragraph (a) of subsection (8) of section
39175.032, Florida Statutes, is amended to read:
40     175.032  Definitions.--For any municipality, special fire
41control district, chapter plan, local law municipality, local
42law special fire control district, or local law plan under this
43chapter, the following words and phrases have the following
44meanings:
45     (8)(a)  "Firefighter" means any person employed solely by a
46constituted fire department of any municipality or special fire
47control district who is certified as a firefighter as a
48condition of employment in accordance with the provisions of s.
49633.35 and whose duty it is to extinguish fires, to protect
50life, or to protect property. "Firefighter" includes all
51certified supervisory and command personnel whose duties
52include, in whole or in part, the supervision, training,
53guidance, and management responsibilities of full-time
54firefighters, part-time firefighters, or auxiliary firefighters
55but does not include part-time firefighters or auxiliary
56firefighters. However, for purposes of this chapter only,
57"firefighter" also includes public safety officers who are
58responsible for performing both police and fire services, who
59are certified as police officers or firefighters, and who are
60certified by their employers to the Chief Financial Officer as
61participating in this chapter prior to October 1, 1979.
62Effective October 1, 1979, public safety officers who have not
63been certified as participating in this chapter shall be
64considered police officers for retirement purposes and shall be
65eligible to participate in chapter 185. Any plan may provide
66that the fire chief shall have an option to participate, or not,
67in that plan.
68     Section 2.  Paragraph (a) of subsection (1) and subsection
69(7) of section 175.061, Florida Statutes, are amended to read:
70     175.061  Board of trustees; members; terms of office;
71meetings; legal entity; costs; attorney's fees.--For any
72municipality, special fire control district, chapter plan, local
73law municipality, local law special fire control district, or
74local law plan under this chapter:
75     (1)  In each municipality and in each special fire control
76district there is hereby created a board of trustees of the
77firefighters' pension trust fund, which shall be solely
78responsible for administering the trust fund. Effective October
791, 1986, and thereafter:
80     (a)  The membership of the board of trustees for a chapter
81plan shall consist of five members, two of whom, unless
82otherwise prohibited by law, shall be legal residents of the
83municipality or special fire control district, who shall be
84appointed by the governing body of the municipality or special
85fire control district, and two of whom shall be full-time
86firefighters as defined in s. 175.032 who shall be elected by a
87majority of the active firefighters who are members of such
88plan. With respect to any chapter plan or local law plan that,
89on January 1, 1997, allowed retired firefighters to vote in such
90elections, retirees may continue to vote in such elections. The
91fifth member shall be chosen by a majority of the previous four
92members as provided for herein, and such person's name shall be
93submitted to the governing body of the municipality or special
94fire control district. Upon receipt of the fifth person's name,
95the governing body of the municipality or special fire control
96district shall, as a ministerial duty, appoint such person to
97the board of trustees as its fifth member. The fifth member
98shall have the same rights as each of the other four members
99appointed or elected as herein provided, shall serve as trustee
100for a period of 2 years, and may succeed himself or herself in
101office. Each resident member shall serve as trustee for a period
102of 2 years, unless sooner replaced by the governing body at
103whose pleasure he or she shall serve, and may succeed himself or
104herself as a trustee. Each firefighter member shall serve as
105trustee for a period of 2 years, unless he or she sooner leaves
106the employment of the municipality or special fire control
107district as a firefighter, whereupon a successor shall be chosen
108in the same manner as an original appointment. Each firefighter
109may succeed himself or herself in office. The terms of office of
110the appointed and elected members of the board may be amended by
111municipal ordinance, special act of the Legislature, or
112resolution adopted by the governing body of the special fire
113control district to extend the terms of office from 2 years to 4
114years. The length of the terms of office shall be the same for
115all board members.
116     (7)  The board of trustees may, upon written request by the
117retiree of the plan, or by a dependent, when authorized by the
118retiree or the retiree's beneficiary, authorize the plan
119administrator to withhold from the monthly retirement payment
120those funds that are necessary to pay for the benefits being
121received through the governmental entity from which the employee
122retired, to pay the certified bargaining agent of the
123governmental entity, and to make any payments for child support
124or alimony. Further, the board of trustees may, upon written
125request of the retiree of the plan, authorize the plan
126administrator to withhold from the retirement payment those
127funds that are necessary to pay for premiums for accident,
128health, and long-term care insurance for the retiree and the
129retiree's spouse and dependents. A retirement plan does not
130incur any liability for participation in this permissive program
131if its actions are taken in good faith.
132     Section 3.  Subsection (1) of section 175.071, Florida
133Statutes, is amended to read:
134     175.071  General powers and duties of board of
135trustees.--For any municipality, special fire control district,
136chapter plan, local law municipality, local law special fire
137control district, or local law plan under this chapter:
138     (1)  The board of trustees, subject to the fiduciary
139standards in ss. 112.656, 112.661, and 518.11 and the Code of
140Ethics in ss. 112.311-112.3187, may:
141     (a)  Invest and reinvest the assets of the firefighters'
142pension trust fund in annuity and life insurance contracts of
143life insurance companies in amounts sufficient to provide, in
144whole or in part, the benefits to which all of the participants
145in the firefighters' pension trust fund shall be entitled under
146the provisions of this chapter and pay the initial and
147subsequent premiums thereon.
148     (b)  Invest and reinvest the assets of the firefighters'
149pension trust fund in:
150     1.  Time or savings accounts of a national bank, a state
151bank insured by the Bank Insurance Fund, or a savings, building,
152and loan association insured by the Savings Association
153Insurance Fund which is administered by the Federal Deposit
154Insurance Corporation or a state or federal chartered credit
155union whose share accounts are insured by the National Credit
156Union Share Insurance Fund.
157     2.  Obligations of the United States or obligations
158guaranteed as to principal and interest by the government of the
159United States.
160     3.  Bonds issued by the State of Israel.
161     4.  Bonds, stocks, or other evidences of indebtedness
162issued or guaranteed by a corporation organized under the laws
163of the United States, any state or organized territory of the
164United States, or the District of Columbia, provided:
165     a.  The corporation is listed on any one or more of the
166recognized national stock exchanges or on the National Market
167System of the NASDAQ Stock Market and, in the case of bonds
168only, holds a rating in one of the three highest classifications
169by a major rating service; and
170     b.  The board of trustees shall not invest more than 5
171percent of its assets in the common stock or capital stock of
172any one issuing company, nor shall the aggregate investment in
173any one issuing company exceed 5 percent of the outstanding
174capital stock of that company or the aggregate of its
175investments under this subparagraph at cost exceed 50 percent of
176the assets of the fund.
177
178This paragraph shall apply to all boards of trustees and
179participants. However, in the event that a municipality or
180special fire control district has a duly enacted pension plan
181pursuant to, and in compliance with, s. 175.351, and the
182trustees thereof desire to vary the investment procedures
183herein, the trustees of such plan shall request a variance of
184the investment procedures as outlined herein only through a
185municipal ordinance, special act of the Legislature, or
186resolution by the governing body of the special fire control
187district; where a special act, or a municipality by ordinance
188adopted prior to July 1, 1998, permits a greater than 50-percent
189equity investment, such municipality shall not be required to
190comply with the aggregate equity investment provisions of this
191paragraph. Notwithstanding any other provision of law to the
192contrary, nothing in this section may be construed to take away
193any preexisting legal authority to make equity investments that
194exceed the requirements of this paragraph. The board of trustees
195may invest up to 20 10 percent of plan assets in foreign
196securities.
197     (c)  Issue drafts upon the firefighters' pension trust fund
198pursuant to this act and rules and regulations prescribed by the
199board of trustees. All such drafts shall be consecutively
200numbered, be signed by the chair and secretary or two
201individuals designated by the board who are subject to the same
202fiduciary standards as required for the board of trustees under
203this subsection, and state upon their faces the purpose for
204which the drafts are drawn. The treasurer or depository of each
205municipality or special fire control district shall retain such
206drafts when paid, as permanent vouchers for disbursements made,
207and no money shall be otherwise drawn from the fund.
208     (d)  Convert into cash any securities of the fund.
209     (e)  Keep a complete record of all receipts and
210disbursements and of the board's acts and proceedings.
211     Section 4.  Paragraph (a) of subsection (1) and subsection
212(6) of section 185.05, Florida Statutes, are amended to read:
213     185.05  Board of trustees; members; terms of office;
214meetings; legal entity; costs; attorney's fees.--For any
215municipality, chapter plan, local law municipality, or local law
216plan under this chapter:
217     (1)  In each municipality described in s. 185.03 there is
218hereby created a board of trustees of the municipal police
219officers' retirement trust fund, which shall be solely
220responsible for administering the trust fund. Effective October
2211, 1986, and thereafter:
222     (a)  The membership of the board of trustees for chapter
223plans shall consist of five members, two of whom, unless
224otherwise prohibited by law, shall be legal residents of the
225municipality, who shall be appointed by the legislative body of
226the municipality, and two of whom shall be police officers as
227defined in s. 185.02 who shall be elected by a majority of the
228active police officers who are members of such plan. With
229respect to any chapter plan or local law plan that, on January
2301, 1997, allowed retired police officers to vote in such
231elections, retirees may continue to vote in such elections. The
232fifth member shall be chosen by a majority of the previous four
233members, and such person's name shall be submitted to the
234legislative body of the municipality. Upon receipt of the fifth
235person's name, the legislative body of the municipality shall,
236as a ministerial duty, appoint such person to the board of
237trustees as its fifth member. The fifth member shall have the
238same rights as each of the other four members appointed or
239elected as herein provided, shall serve as trustee for a period
240of 2 years, and may succeed himself or herself in office. Each
241resident member shall serve as trustee for a period of 2 years,
242unless sooner replaced by the legislative body at whose pleasure
243the member shall serve, and may succeed himself or herself as a
244trustee. Each police officer member shall serve as trustee for a
245period of 2 years, unless he or she sooner leaves the employment
246of the municipality as a police officer, whereupon the
247legislative body of the municipality shall choose a successor in
248the same manner as an original appointment. Each police officer
249may succeed himself or herself in office. The terms of office of
250the appointed and elected members of the board may be amended by
251municipal ordinance or special act of the Legislature to extend
252the terms of office from 2 years to 4 years. The length of the
253terms of office shall be the same for all board members.
254     (6)  The board of trustees may, upon written request by the
255retiree of the plan, or by a dependent, when authorized by the
256retiree or the retiree's beneficiary, authorize the plan
257administrator to withhold from the monthly retirement payment
258those funds that are necessary to pay for the benefits being
259received through the governmental entity from which the employee
260retired, to pay the certified bargaining agent of the
261governmental entity, and to make any payments for child support
262or alimony. Further, the board of trustees may, upon written
263request of the retiree of the plan, authorize the plan
264administrator to withhold from the retirement payment those
265funds that are necessary to pay for premiums for accident,
266health, and long-term care insurance for the retiree and the
267retiree's spouse and dependents. A retirement plan does not
268incur any liability for participation in this permissive program
269if its actions are taken in good faith.
270     Section 5.  Subsection (1) of section 185.06, Florida
271Statutes, is amended to read:
272     185.06  General powers and duties of board of
273trustees.--For any municipality, chapter plan, local law
274municipality, or local law plan under this chapter:
275     (1)  The board of trustees, subject to the fiduciary
276standards in ss. 112.656, 112.661, and 518.11 and the Code of
277Ethics in ss. 112.311-112.3187, may:
278     (a)  Invest and reinvest the assets of the retirement trust
279fund in annuity and life insurance contracts of life insurance
280companies in amounts sufficient to provide, in whole or in part,
281the benefits to which all of the participants in the municipal
282police officers' retirement trust fund shall be entitled under
283the provisions of this chapter, and pay the initial and
284subsequent premiums thereon.
285     (b)  Invest and reinvest the assets of the retirement trust
286fund in:
287     1.  Time or savings accounts of a national bank, a state
288bank insured by the Bank Insurance Fund, or a savings and loan
289association insured by the Savings Association Insurance Fund
290which is administered by the Federal Deposit Insurance
291Corporation or a state or federal chartered credit union whose
292share accounts are insured by the National Credit Union Share
293Insurance Fund.
294     2.  Obligations of the United States or obligations
295guaranteed as to principal and interest by the United States.
296     3.  Bonds issued by the State of Israel.
297     4.  Bonds, stocks, or other evidences of indebtedness
298issued or guaranteed by a corporation organized under the laws
299of the United States, any state or organized territory of the
300United States, or the District of Columbia, provided:
301     a.  The corporation is listed on any one or more of the
302recognized national stock exchanges or on the National Market
303System of the NASDAQ Stock Market and, in the case of bonds
304only, holds a rating in one of the three highest classifications
305by a major rating service; and
306     b.  The board of trustees shall not invest more than 5
307percent of its assets in the common stock or capital stock of
308any one issuing company, nor shall the aggregate investment in
309any one issuing company exceed 5 percent of the outstanding
310capital stock of the company or the aggregate of its investments
311under this subparagraph at cost exceed 50 percent of the fund's
312assets.
313
314This paragraph shall apply to all boards of trustees and
315participants. However, in the event that a municipality has a
316duly enacted pension plan pursuant to, and in compliance with,
317s. 185.35 and the trustees thereof desire to vary the investment
318procedures herein, the trustees of such plan shall request a
319variance of the investment procedures as outlined herein only
320through a municipal ordinance or special act of the Legislature;
321where a special act, or a municipality by ordinance adopted
322prior to July 1, 1998, permits a greater than 50-percent equity
323investment, such municipality shall not be required to comply
324with the aggregate equity investment provisions of this
325paragraph. Notwithstanding any other provision of law to the
326contrary, nothing in this section may be construed to take away
327any preexisting legal authority to make equity investments that
328exceed the requirements of this paragraph. The board of trustees
329may invest up to 20 10 percent of plan assets in foreign
330securities.
331     (c)  Issue drafts upon the municipal police officers'
332retirement trust fund pursuant to this act and rules and
333regulations prescribed by the board of trustees. All such drafts
334shall be consecutively numbered, be signed by the chair and
335secretary or two individuals designated by the board who are
336subject to the same fiduciary standards as required for the
337board of trustees under this subsection, and state upon their
338faces the purposes for which the drafts are drawn. The city
339treasurer or other depository shall retain such drafts when
340paid, as permanent vouchers for disbursements made, and no money
341shall otherwise be drawn from the fund.
342     (d)  Finally decide all claims to relief under the board's
343rules and regulations and pursuant to the provisions of this
344act.
345     (e)  Convert into cash any securities of the fund.
346     (f)  Keep a complete record of all receipts and
347disbursements and of the board's acts and proceedings.
348     Section 6.  If any provision of this act or its application
349to any person or circumstance is held invalid, the invalidity
350does not affect other provisions or applications of the act
351which can be given effect without the invalid provision or
352application, and to this end the provisions of this act are
353severable.
354     Section 7.  This act shall take effect upon becoming a law.


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