CS/HB 171

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 "creditable service" for purposes of
5determining credit for prior service as a firefighter;
6revising the definition of "firefighter"; amending s.
7175.061, F.S.; authorizing the terms of office for the
8board of trustees of the firefighters' pension trust fund
9to be revised under certain circumstances; authorizing the
10firefighters' pension trust fund plan administrator to
11withhold funds to pay for premiums for accident, health,
12and long-term care insurance for the retiree and the
13retiree's spouse and dependents; providing an exemption
14from liability under certain circumstances; amending s.
15175.071, F.S.; requiring the board of trustees to perform
16its powers subject to certain fiduciary standards and
17ethics provisions; increasing the percentage of assets of
18the firefighters' pension trust fund that the board of
19trustees may invest in foreign securities; authorizing
20certain individuals to sign drafts issued upon the
21firefighters' pension trust fund; amending s. 175.101,
22F.S.; clarifying boundaries of a special fire control
23district for purposes of assessment and imposition of the
24excise tax on property insurance premiums; amending s.
25175.171, F.S.; authorizing retired firefighters to change
26their designation of joint annuitant or beneficiary up to
27two times without the approval of the board of trustees or
28the prior joint annuitant or beneficiary; amending s.
29175.361, F.S.; revising fund distribution procedures with
30respect to plan termination; providing that the Department
31of Management Services shall effect the termination of the
32fund; amending s. 185.02, F.S.; revising the definition of
33"creditable service" for purposes of determining credit
34for prior service as a police officer; amending s. 185.05,
35F.S.; revising municipal police officers' retirement trust
36fund board of trustee selection procedures; authorizing
37the terms of office for the board of trustees of the
38municipal police officers' retirement trust fund to be
39revised under certain circumstances; authorizing the plan
40administrator to withhold funds to pay for premiums for
41accident, health, and long-term care insurance for the
42retiree and the retiree's spouse and dependents; providing
43an exemption from liability under certain circumstances;
44amending s. 185.06, F.S.; requiring the board of trustees
45to perform its powers subject to certain fiduciary
46standards and ethics provisions; increasing the percentage
47of assets of the municipal police officers' retirement
48trust fund that the board of trustees may invest in
49foreign securities; authorizing certain individuals to
50sign drafts issued upon the municipal police officers'
51retirement trust fund; amending s. 185.161, F.S.;
52authorizing retired police officers to change their
53designation of joint annuitant or beneficiary up to two
54times without the approval of the board of trustees or the
55prior joint annuitant or beneficiary; amending s. 185.37,
56F.S.; revising fund distribution procedures with respect
57to plan termination; providing that the Department of
58Management Services shall effect the termination of the
59fund; providing an effective date.
60
61Be It Enacted by the Legislature of the State of Florida:
62
63     Section 1.  Paragraph (c) of subsection (4) and paragraph
64(a) of subsection (8) of section 175.032, Florida Statutes, are
65amended to read:
66     175.032  Definitions.--For any municipality, special fire
67control district, chapter plan, local law municipality, local
68law special fire control district, or local law plan under this
69chapter, the following words and phrases have the following
70meanings:
71     (4)  "Creditable service" or "credited service" means the
72aggregate number of years of service, and fractional parts of
73years of service, of any firefighter, omitting intervening years
74and fractional parts of years when such firefighter may not have
75been employed by the municipality or special fire control
76district, subject to the following conditions:
77     (c)  Credited service under this chapter shall be provided
78only for service as a firefighter, as defined in subsection (8),
79or for military service and shall not include credit for any
80other type of service. A municipality may, by local ordinance,
81or a special fire control district may, by resolution, provide
82for the purchase of credit for military service prior to
83employment as well as for prior service as a firefighter for
84some other employer as long as a firefighter is not entitled to
85receive a benefit for such other prior service as a firefighter.
86For purposes of determining credit for prior service as a
87firefighter, in addition to service as a firefighter in this
88state, credit may be given for federal, other state, or county
89service, as long as such prior firefighter service is recognized
90by the Division of State Fire Marshal as provided under chapter
91633. The firefighter shall provide proof to the board of
92trustees that such service is equivalent to the definition of
93firefighter under subsection (8).
94     (8)(a)  "Firefighter" means any person employed solely by a
95constituted fire department of any municipality or special fire
96control district who is certified as a firefighter as a
97condition of employment in accordance with the provisions of s.
98633.35 and whose duty it is to extinguish fires, to protect
99life, or to protect property. "Firefighter" includes all
100certified supervisory and command personnel whose duties
101include, in whole or in part, the supervision, training,
102guidance, and management responsibilities of full-time
103firefighters, part-time firefighters, or auxiliary firefighters
104but does not include part-time firefighters or auxiliary
105firefighters. However, for purposes of this chapter only,
106"firefighter" also includes public safety officers who are
107responsible for performing both police and fire services, who
108are certified as police officers or firefighters, and who are
109certified by their employers to the Chief Financial Officer as
110participating in this chapter prior to October 1, 1979.
111Effective October 1, 1979, public safety officers who have not
112been certified as participating in this chapter shall be
113considered police officers for retirement purposes and shall be
114eligible to participate in chapter 185. Any plan may provide
115that the fire chief shall have an option to participate, or not,
116in that plan.
117     Section 2.  Paragraph (a) of subsection (1) and subsection
118(7) of section 175.061, Florida Statutes, are amended to read:
119     175.061  Board of trustees; members; terms of office;
120meetings; legal entity; costs; attorney's fees.--For any
121municipality, special fire control district, chapter plan, local
122law municipality, local law special fire control district, or
123local law plan under this chapter:
124     (1)  In each municipality and in each special fire control
125district there is hereby created a board of trustees of the
126firefighters' pension trust fund, which shall be solely
127responsible for administering the trust fund. Effective October
1281, 1986, and thereafter:
129     (a)  The membership of the board of trustees for a chapter
130plan shall consist of five members, two of whom, unless
131otherwise prohibited by law, shall be legal residents of the
132municipality or special fire control district, who shall be
133appointed by the governing body of the municipality or special
134fire control district, and two of whom shall be full-time
135firefighters as defined in s. 175.032 who shall be elected by a
136majority of the active firefighters who are members of such
137plan. With respect to any chapter plan or local law plan that,
138on January 1, 1997, allowed retired firefighters to vote in such
139elections, retirees may continue to vote in such elections. The
140fifth member shall be chosen by a majority of the previous four
141members as provided for herein, and such person's name shall be
142submitted to the governing body of the municipality or special
143fire control district. Upon receipt of the fifth person's name,
144the governing body of the municipality or special fire control
145district shall, as a ministerial duty, appoint such person to
146the board of trustees as its fifth member. The fifth member
147shall have the same rights as each of the other four members
148appointed or elected as herein provided, shall serve as trustee
149for a period of 2 years, and may succeed himself or herself in
150office. Each resident member shall serve as trustee for a period
151of 2 years, unless sooner replaced by the governing body at
152whose pleasure he or she shall serve, and may succeed himself or
153herself as a trustee. Each firefighter member shall serve as
154trustee for a period of 2 years, unless he or she sooner leaves
155the employment of the municipality or special fire control
156district as a firefighter, whereupon a successor shall be chosen
157in the same manner as an original appointment. Each firefighter
158may succeed himself or herself in office. The terms of office of
159the appointed and elected members of the board may be amended by
160municipal ordinance, special act of the Legislature, or
161resolution adopted by the governing body of the special fire
162control district to extend the terms of office from 2 years to 4
163years. The length of the terms of office shall be the same for
164all board members.
165     (7)  The board of trustees may, upon written request by the
166retiree of the plan, or by a dependent, when authorized by the
167retiree or the retiree's beneficiary, authorize the plan
168administrator to withhold from the monthly retirement payment
169those funds that are necessary to pay for the benefits being
170received through the governmental entity from which the employee
171retired, to pay the certified bargaining agent of the
172governmental entity, and to make any payments for child support
173or alimony. Further, the board of trustees may, upon the written
174request of the retiree of the plan, authorize the plan
175administrator to withhold from the retirement payment those
176funds that are necessary to pay for premiums for accident,
177health, and long-term care insurance for the retiree and the
178retiree's spouse and dependents. A retirement plan does not
179incur any liability for participation in this permissive program
180if its actions are taken in good faith.
181     Section 3.  Subsection (1) of section 175.071, Florida
182Statutes, is amended to read:
183     175.071  General powers and duties of board of
184trustees.--For any municipality, special fire control district,
185chapter plan, local law municipality, local law special fire
186control district, or local law plan under this chapter:
187     (1)  The board of trustees, subject to the fiduciary
188standards in ss. 112.656, 112.661, and 518.11 and the Code of
189Ethics in ss. 112.311-112.3187, may:
190     (a)  Invest and reinvest the assets of the firefighters'
191pension trust fund in annuity and life insurance contracts of
192life insurance companies in amounts sufficient to provide, in
193whole or in part, the benefits to which all of the participants
194in the firefighters' pension trust fund shall be entitled under
195the provisions of this chapter and pay the initial and
196subsequent premiums thereon.
197     (b)  Invest and reinvest the assets of the firefighters'
198pension trust fund in:
199     1.  Time or savings accounts of a national bank, a state
200bank insured by the Bank Insurance Fund, or a savings, building,
201and loan association insured by the Savings Association
202Insurance Fund which is administered by the Federal Deposit
203Insurance Corporation or a state or federal chartered credit
204union whose share accounts are insured by the National Credit
205Union Share Insurance Fund.
206     2.  Obligations of the United States or obligations
207guaranteed as to principal and interest by the government of the
208United States.
209     3.  Bonds issued by the State of Israel.
210     4.  Bonds, stocks, or other evidences of indebtedness
211issued or guaranteed by a corporation organized under the laws
212of the United States, any state or organized territory of the
213United States, or the District of Columbia, provided:
214     a.  The corporation is listed on any one or more of the
215recognized national stock exchanges or on the National Market
216System of the NASDAQ Stock Market and, in the case of bonds
217only, holds a rating in one of the three highest classifications
218by a major rating service; and
219     b.  The board of trustees shall not invest more than 5
220percent of its assets in the common stock or capital stock of
221any one issuing company, nor shall the aggregate investment in
222any one issuing company exceed 5 percent of the outstanding
223capital stock of that company or the aggregate of its
224investments under this subparagraph at cost exceed 50 percent of
225the assets of the fund.
226
227This paragraph shall apply to all boards of trustees and
228participants. However, in the event that a municipality or
229special fire control district has a duly enacted pension plan
230pursuant to, and in compliance with, s. 175.351, and the
231trustees thereof desire to vary the investment procedures
232herein, the trustees of such plan shall request a variance of
233the investment procedures as outlined herein only through a
234municipal ordinance, special act of the Legislature, or
235resolution by the governing body of the special fire control
236district; where a special act, or a municipality by ordinance
237adopted prior to July 1, 1998, permits a greater than 50-percent
238equity investment, such municipality shall not be required to
239comply with the aggregate equity investment provisions of this
240paragraph. Notwithstanding any other provision of law to the
241contrary, nothing in this section may be construed to take away
242any preexisting legal authority to make equity investments that
243exceed the requirements of this paragraph. The board of trustees
244may invest up to 25 10 percent of plan assets in foreign
245securities.
246     (c)  Issue drafts upon the firefighters' pension trust fund
247pursuant to this act and rules and regulations prescribed by the
248board of trustees. All such drafts shall be consecutively
249numbered, be signed by the chair and secretary or by two
250individuals designated by the board who are subject to the same
251fiduciary standards as required for the board of trustees under
252this subsection, and state upon their faces the purpose for
253which the drafts are drawn. The treasurer or depository of each
254municipality or special fire control district shall retain such
255drafts when paid, as permanent vouchers for disbursements made,
256and no money shall be otherwise drawn from the fund.
257     (d)  Convert into cash any securities of the fund.
258     (e)  Keep a complete record of all receipts and
259disbursements and of the board's acts and proceedings.
260     Section 4.  Subsection (1) of section 175.101, Florida
261Statutes, is amended to read:
262     175.101  State excise tax on property insurance premiums
263authorized; procedure.--For any municipality, special fire
264control district, chapter plan, local law municipality, local
265law special fire control district, or local law plan under this
266chapter:
267     (1)  Each municipality or special fire control district in
268this state described and classified in s. 175.041, having a
269lawfully established firefighters' pension trust fund or
270municipal fund or special fire control district fund, by
271whatever name known, providing pension benefits to firefighters
272as provided under this chapter, may assess and impose on every
273insurance company, corporation, or other insurer now engaged in
274or carrying on, or who shall hereinafter engage in or carry on,
275the business of property insurance as shown by the records of
276the Office of Insurance Regulation of the Financial Services
277Commission an excise tax in addition to any lawful license or
278excise tax now levied by each of the municipalities or special
279fire control districts, respectively, amounting to 1.85 percent
280of the gross amount of receipts of premiums from policyholders
281on all premiums collected on property insurance policies
282covering property within the corporate limits of such
283municipalities or within the legally defined boundaries of
284special fire control districts, respectively. Whenever the
285boundaries of a special fire control district that has lawfully
286established a firefighters' pension trust fund encompass a
287portion of the corporate territory of a municipality that has
288also lawfully established a firefighters' pension trust fund,
289that portion of the tax receipts attributable to insurance
290policies covering property situated both within the municipality
291and the special fire control district shall be given to the fire
292service provider. For the purpose of this section, the
293boundaries of a special fire control district shall be deemed to
294include an area that has been annexed until the completion of
295the 4-year period provided for in s. 171.093(4), or other
296agreed-upon extension, or when a special fire control district
297is providing services pursuant to an interlocal agreement
298executed pursuant to s. 171.093(3). The agent shall identify the
299fire service provider on the property owner's application for
300insurance. Remaining revenues collected pursuant to this chapter
301shall be distributed to the municipality or special fire control
302district according to the location of the insured property.
303
304This section also applies to any municipality consisting of a
305single consolidated government which is made up of a former
306county and one or more municipalities, consolidated pursuant to
307the authority in s. 3 or s. 6(e), Art. VIII of the State
308Constitution, and to property insurance policies covering
309property within the boundaries of the consolidated government,
310regardless of whether the properties are located within one or
311more separately incorporated areas within the consolidated
312government, provided the properties are being provided fire
313protection services by the consolidated government. This section
314also applies to any municipality, as provided in s.
315175.041(3)(c), which has entered into an interlocal agreement to
316receive fire protection services from another municipality
317participating under this chapter. The excise tax may be levied
318on all premiums collected on property insurance policies
319covering property located within the corporate limits of the
320municipality receiving the fire protection services, but will be
321available for distribution to the municipality providing the
322fire protection services.
323     Section 5.  Paragraph (c) of subsection (1) of section
324175.171, Florida Statutes, is amended to read:
325     175.171  Optional forms of retirement income.--For any
326municipality, special fire control district, chapter plan, local
327law municipality, local law special fire control district, or
328local law plan under this chapter:
329     (1)  In lieu of the amount and form of retirement income
330payable in the event of normal or early retirement as specified
331in s. 175.162, a firefighter, upon written request to the board
332of trustees and subject to the approval of the board of
333trustees, may elect to receive a retirement income or benefit of
334equivalent actuarial value payable in accordance with one of the
335following options:
336     (c)  Such other amount and form of retirement payments or
337benefits as, in the opinion of the board of trustees, will best
338meet the circumstances of the retiring firefighter.
339     1.  The firefighter upon electing any option of this
340section will designate the joint pensioner or beneficiary (or
341beneficiaries) to receive the benefit, if any, payable under the
342plan in the event of his or her death, and will have the power
343to change such designation from time to time, but any such
344change shall be deemed a new election and will be subject to
345approval by the board of trustees. Such designation will name a
346joint pensioner or one or more primary beneficiaries where
347applicable. If a firefighter has elected an option with a joint
348pensioner or beneficiary and his or her retirement income
349benefits have commenced, the firefighter may thereafter change
350the designated joint pensioner or beneficiary, but only if the
351board of trustees consents to such change and if the joint
352pensioner last previously designated by the firefighter is alive
353when the firefighter files with the board of trustees a request
354for such change.
355     2.  The consent of a firefighter's joint pensioner or
356beneficiary to any such change shall not be required.
357     3.  The board of trustees may request such evidence of the
358good health of the joint pensioner that is being removed as it
359may require and the amount of the retirement income payable to
360the firefighter upon designation of a new joint pensioner shall
361be actuarially redetermined taking into account the age and sex
362of the former joint pensioner, the new joint pensioner, and the
363firefighter. Each such designation will be made in writing on a
364form prepared by the board of trustees and on completion will be
365filed with the board of trustees. In the event that no
366designated beneficiary survives the firefighter, such benefits
367as are payable in the event of the death of the firefighter
368subsequent to his or her retirement shall be paid as provided in
369s. 175.181.
370     4.  Notwithstanding the provisions of this paragraph, the
371retired firefighter may change his or her designation of joint
372annuitant or beneficiary up to two times as provided in s.
373175.333 without the approval of the board of trustees or the
374prior joint annuitant or beneficiary. The retiree does not have
375to provide proof of good health of the joint annuitant or
376beneficiary being removed, and the joint annuitant or
377beneficiary does not have to be living.
378     Section 6.  Section 175.361, Florida Statutes, is amended
379to read:
380     175.361  Termination of plan and distribution of fund.--For
381any municipality, special fire control district, chapter plan,
382local law municipality, local law special fire control district,
383or local law plan under this chapter, the plan may be terminated
384by the municipality or special fire control district. Upon
385termination of the plan by the municipality or special fire
386control district for any reason or because of a transfer,
387merger, or consolidation of governmental units, services, or
388functions as provided in chapter 121, or upon written notice by
389the municipality or special fire control district to the board
390of trustees that contributions under the plan are being
391permanently discontinued, the rights of all employees to
392benefits accrued to the date of such termination and the amounts
393credited to the employees' accounts are nonforfeitable. The fund
394shall be apportioned and distributed in accordance with the
395following procedures:
396     (1)  The board of trustees shall determine the date of
397distribution and the asset value required to fund all the
398nonforfeitable benefits to be distributed, after taking into
399account the expenses of such distribution. The board shall
400inform the municipality or special fire control district if
401additional assets are required, in which event such municipality
402or special fire control district shall continue to financially
403support the plan until all nonforfeitable benefits have been
404funded.
405     (2)  The board of trustees shall determine the method of
406distribution of the asset value, that is, whether distribution
407shall be by payment in cash, by the maintenance of another or
408substituted trust fund, by the purchase of insured annuities, or
409otherwise, for each firefighter entitled to benefits under the
410plan as specified in subsection (3).
411     (3)  The board of trustees shall distribute apportion the
412asset value as of the date of termination in the manner set
413forth in this subsection, on the basis that the amount required
414to provide any given retirement income shall mean the
415actuarially computed single-sum value of such retirement income,
416except that if the method of distribution determined under
417subsection (2) involves the purchase of an insured annuity, the
418amount required to provide the given retirement income shall
419mean the single premium payable for such annuity. The actuarial
420single sum value shall not be less than the employee's
421accumulated contributions to the plan, with interest if provided
422by the plan, less the value of any plan benefits previously paid
423to the employee.
424     (a)  Apportionment shall first be made in respect of each
425retired firefighter receiving a retirement income hereunder on
426such date, each person receiving a retirement income on such
427date on account of a retired (but since deceased) firefighter,
428and each firefighter who has, by such date, become eligible for
429normal retirement but has not yet retired, in the amount
430required to provide such retirement income, provided that, if
431such asset value is less than the aggregate of such amounts,
432such amounts shall be proportionately reduced so that the
433aggregate of such reduced amounts will be equal to such asset
434value.
435     (b)  If there is any asset value remaining after the
436apportionment under paragraph (a), apportionment shall next be
437made in respect of each firefighter in the service of the
438municipality or special fire control district on such date who
439has completed at least 10 years of credited service, in the
440firefighters' pension trust fund for at least 10 years, and who
441is not entitled to an apportionment under paragraph (a), in the
442amount required to provide the actuarial equivalent of the
443accrued normal retirement income, based on the firefighter's
444credited service and earnings to such date, and each former
445participant then entitled to a benefit under the provisions of
446s. 175.211 who has not by such date reached his or her normal
447retirement date, in the amount required to provide the actuarial
448equivalent of the accrued normal retirement income to which he
449or she is entitled under s. 175.211; provided that, if such
450remaining asset value is less than the aggregate of the amounts
451apportioned hereunder, such latter amounts shall be
452proportionately reduced so that the aggregate of such reduced
453amounts will be equal to such remaining asset value.
454     (c)  If there is any asset value after the apportionments
455under paragraphs (a) and (b), apportionment shall lastly be made
456in respect of each firefighter in the service of the
457municipality or special fire control district on such date who
458is not entitled to an apportionment under paragraphs (a) and (b)
459in the amount equal to the firefighter's total contributions to
460the plan to date of termination; provided that, if such
461remaining asset value is less than the aggregate of the amounts
462apportioned hereunder, such latter amounts shall be
463proportionately reduced so that the aggregate of such reduced
464amounts will be equal to such remaining asset value.
465     (4)(d)  In the event that there is asset value remaining
466after the full distribution apportionment specified in
467subsection (3), and after the payment of any expenses incurred
468with such distribution paragraphs (a), (b), and (c), such excess
469shall be returned to the municipality or special fire control
470district, less return to the state of the state's contributions,
471provided that, if the excess is less than the total
472contributions made by the municipality or special fire control
473district and the state to date of termination of the plan, such
474excess shall be divided proportionately to the total
475contributions made by the municipality or special fire control
476district and the state.
477     (5)(4)  The board of trustees shall distribute, in
478accordance with the manner of distribution determined under
479subsection (2), the amounts determined apportioned under
480subsection (3).
481
482If, after a period of 24 months after the date on which the plan
483terminated or the date on which the board received written
484notice that the contributions thereunder were being permanently
485discontinued, the municipality or special fire control district
486or the board of trustees of the firefighters' pension trust fund
487affected has not complied with all the provisions in this
488section, the Department of Management Services division shall
489effect the termination of the fund in accordance with this
490section.
491     Section 7.  Paragraph (c) of subsection (5) of section
492185.02, Florida Statutes, is amended to read:
493     185.02  Definitions.--For any municipality, chapter plan,
494local law municipality, or local law plan under this chapter,
495the following words and phrases as used in this chapter shall
496have the following meanings, unless a different meaning is
497plainly required by the context:
498     (5)  "Creditable service" or "credited service" means the
499aggregate number of years of service and fractional parts of
500years of service of any police officer, omitting intervening
501years and fractional parts of years when such police officer may
502not have been employed by the municipality subject to the
503following conditions:
504     (c)  Credited service under this chapter shall be provided
505only for service as a police officer, as defined in subsection
506(11), or for military service and shall not include credit for
507any other type of service. A municipality may, by local
508ordinance, provide for the purchase of credit for military
509service occurring prior to employment as well as prior service
510as a police officer for some other employer as long as the
511police officer is not entitled to receive a benefit for such
512other prior service as a police officer. For purposes of
513determining credit for prior service as a police officer, in
514addition to service as a police officer in this state, credit
515may be given for federal, other state, or county service, as
516long as such prior police service is recognized by the Criminal
517Justice Standards and Training Commission within the Department
518of Law Enforcement as provided under chapter 943. The police
519officer shall provide proof to the board of trustees that such
520service is equivalent to the definition of police officer under
521subsection (11).
522     Section 8.  Paragraph (a) of subsection (1) and subsection
523(6) of section 185.05, Florida Statutes, are amended to read:
524     185.05  Board of trustees; members; terms of office;
525meetings; legal entity; costs; attorney's fees.--For any
526municipality, chapter plan, local law municipality, or local law
527plan under this chapter:
528     (1)  In each municipality described in s. 185.03 there is
529hereby created a board of trustees of the municipal police
530officers' retirement trust fund, which shall be solely
531responsible for administering the trust fund. Effective October
5321, 1986, and thereafter:
533     (a)  The membership of the board of trustees for chapter
534plans shall consist of five members, two of whom, unless
535otherwise prohibited by law, shall be legal residents of the
536municipality, who shall be appointed by the legislative body of
537the municipality, and two of whom shall be police officers as
538defined in s. 185.02 who shall be elected by a majority of the
539active police officers who are members of such plan. With
540respect to any chapter plan or local law plan that, on January
5411, 1997, allowed retired police officers to vote in such
542elections, retirees may continue to vote in such elections. The
543fifth member shall be chosen by a majority of the previous four
544members, and such person's name shall be submitted to the
545legislative body of the municipality. Upon receipt of the fifth
546person's name, the legislative body of the municipality shall,
547as a ministerial duty, appoint such person to the board of
548trustees as its fifth member. The fifth member shall have the
549same rights as each of the other four members appointed or
550elected as herein provided, shall serve as trustee for a period
551of 2 years, and may succeed himself or herself in office. Each
552resident member shall serve as trustee for a period of 2 years,
553unless sooner replaced by the legislative body at whose pleasure
554the member shall serve, and may succeed himself or herself as a
555trustee. Each police officer member shall serve as trustee for a
556period of 2 years, unless he or she sooner leaves the employment
557of the municipality as a police officer, whereupon the
558legislative body of the municipality shall choose a successor
559shall be chosen in the same manner as an original appointment.
560Each police officer may succeed himself or herself in office.
561The terms of office of the appointed and elected members of the
562board may be amended by municipal ordinance or special act of
563the Legislature to extend the terms of office from 2 years to 4
564years. The length of the terms of office shall be the same for
565all board members.
566     (6)  The board of trustees may, upon written request by the
567retiree of the plan, or by a dependent, when authorized by the
568retiree or the retiree's beneficiary, authorize the plan
569administrator to withhold from the monthly retirement payment
570those funds that are necessary to pay for the benefits being
571received through the governmental entity from which the employee
572retired, to pay the certified bargaining agent of the
573governmental entity, and to make any payments for child support
574or alimony. Further, the board of trustees may, upon the written
575request of the retiree of the plan, authorize the plan
576administrator to withhold from the retirement payment those
577funds that are necessary to pay for premiums for accident,
578health, and long-term care insurance for the retiree and the
579retiree's spouse and dependents. A retirement plan does not
580incur any liability for participation in this permissive program
581if its actions are taken in good faith.
582     Section 9.  Subsection (1) of section 185.06, Florida
583Statutes, is amended to read:
584     185.06  General powers and duties of board of
585trustees.--For any municipality, chapter plan, local law
586municipality, or local law plan under this chapter:
587     (1)  The board of trustees, subject to the fiduciary
588standards in ss. 112.656, 112.661, and 518.11 and the Code of
589Ethics in ss. 112.311-112.3187, may:
590     (a)  Invest and reinvest the assets of the retirement trust
591fund in annuity and life insurance contracts of life insurance
592companies in amounts sufficient to provide, in whole or in part,
593the benefits to which all of the participants in the municipal
594police officers' retirement trust fund shall be entitled under
595the provisions of this chapter, and pay the initial and
596subsequent premiums thereon.
597     (b)  Invest and reinvest the assets of the retirement trust
598fund in:
599     1.  Time or savings accounts of a national bank, a state
600bank insured by the Bank Insurance Fund, or a savings and loan
601association insured by the Savings Association Insurance Fund
602which is administered by the Federal Deposit Insurance
603Corporation or a state or federal chartered credit union whose
604share accounts are insured by the National Credit Union Share
605Insurance Fund.
606     2.  Obligations of the United States or obligations
607guaranteed as to principal and interest by the United States.
608     3.  Bonds issued by the State of Israel.
609     4.  Bonds, stocks, or other evidences of indebtedness
610issued or guaranteed by a corporation organized under the laws
611of the United States, any state or organized territory of the
612United States, or the District of Columbia, provided:
613     a.  The corporation is listed on any one or more of the
614recognized national stock exchanges or on the National Market
615System of the NASDAQ Stock Market and, in the case of bonds
616only, holds a rating in one of the three highest classifications
617by a major rating service; and
618     b.  The board of trustees shall not invest more than 5
619percent of its assets in the common stock or capital stock of
620any one issuing company, nor shall the aggregate investment in
621any one issuing company exceed 5 percent of the outstanding
622capital stock of the company or the aggregate of its investments
623under this subparagraph at cost exceed 50 percent of the fund's
624assets.
625
626This paragraph shall apply to all boards of trustees and
627participants. However, in the event that a municipality has a
628duly enacted pension plan pursuant to, and in compliance with,
629s. 185.35 and the trustees thereof desire to vary the investment
630procedures herein, the trustees of such plan shall request a
631variance of the investment procedures as outlined herein only
632through a municipal ordinance or special act of the Legislature;
633where a special act, or a municipality by ordinance adopted
634prior to July 1, 1998, permits a greater than 50-percent equity
635investment, such municipality shall not be required to comply
636with the aggregate equity investment provisions of this
637paragraph. Notwithstanding any other provision of law to the
638contrary, nothing in this section may be construed to take away
639any preexisting legal authority to make equity investments that
640exceed the requirements of this paragraph. The board of trustees
641may invest up to 25 10 percent of plan assets in foreign
642securities.
643     (c)  Issue drafts upon the municipal police officers'
644retirement trust fund pursuant to this act and rules and
645regulations prescribed by the board of trustees. All such drafts
646shall be consecutively numbered, be signed by the chair and
647secretary or by two individuals designated by the board who are
648subject to the same fiduciary standards as required for the
649board of trustees under this subsection, and state upon their
650faces the purposes for which the drafts are drawn. The city
651treasurer or other depository shall retain such drafts when
652paid, as permanent vouchers for disbursements made, and no money
653shall otherwise be drawn from the fund.
654     (d)  Finally decide all claims to relief under the board's
655rules and regulations and pursuant to the provisions of this
656act.
657     (e)  Convert into cash any securities of the fund.
658     (f)  Keep a complete record of all receipts and
659disbursements and of the board's acts and proceedings.
660     Section 10.  Paragraph (c) is added to subsection (1) of
661section 185.161, Florida Statutes, to read:
662     185.161  Optional forms of retirement income.--For any
663municipality, chapter plan, local law municipality, or local law
664plan under this chapter:
665     (1)
666     (c)  Notwithstanding the provisions in paragraph (b), the
667retired police officer may change his or her designation of
668joint annuitant or beneficiary up to two times as provided in s.
669185.341 without the approval of the board of trustees or the
670prior joint annuitant or beneficiary. The retiree does not have
671to provide proof of good health of the joint annuitant or
672beneficiary being removed, and the joint annuitant or
673beneficiary does not have to be living.
674     Section 11.  Section 185.37, Florida Statutes, is amended
675to read:
676     185.37  Termination of plan and distribution of fund.--For
677any municipality, chapter plan, local law municipality, or local
678law plan under this chapter, the plan may be terminated by the
679municipality. Upon termination of the plan by the municipality
680for any reason, or because of a transfer, merger, or
681consolidation of governmental units, services, or functions as
682provided in chapter 121, or upon written notice to the board of
683trustees by the municipality that contributions under the plan
684are being permanently discontinued, the rights of all employees
685to benefits accrued to the date of such termination or
686discontinuance and the amounts credited to the employees'
687accounts are nonforfeitable. The fund shall be apportioned and
688distributed in accordance with the following procedures:
689     (1)  The board of trustees shall determine the date of
690distribution and the asset value required to fund all the
691nonforfeitable benefits to be distributed, after taking into
692account the expenses of such distribution. The board shall
693inform the municipality if additional assets are required, in
694which event such municipality shall continue to financially
695support the plan until all nonforfeitable benefits have been
696funded.
697     (2)  The board of trustees shall determine the method of
698distribution of the asset value, that is, whether distribution
699shall be by payment in cash, by the maintenance of another or
700substituted trust fund, by the purchase of insured annuities, or
701otherwise, for each police officer entitled to benefits under
702the plan, as specified in subsection (3).
703     (3)  The board of trustees shall distribute apportion the
704asset value as of the date of termination in the manner set
705forth in this subsection, on the basis that the amount required
706to provide any given retirement income shall mean the
707actuarially computed single-sum value of such retirement income,
708except that if the method of distribution determined under
709subsection (2) involves the purchase of an insured annuity, the
710amount required to provide the given retirement income shall
711mean the single premium payable for such annuity. The actuarial
712single sum value shall not be less than the employee's
713accumulated contributions to the plan, with interest if provided
714by the plan, less the value of any plan benefits previously paid
715to the employee.
716     (a)  Apportionment shall first be made in respect of each
717retired police officer receiving a retirement income hereunder
718on such date, each person receiving a retirement income on such
719date on account of a retired (but since deceased) police
720officer, and each police officer who has, by such date, become
721eligible for normal retirement but has not yet retired, in the
722amount required to provide such retirement income, provided
723that, if such asset value is less than the aggregate of such
724amounts, such amounts shall be proportionately reduced so that
725the aggregate of such reduced amounts will be equal to such
726asset value.
727     (b)  If there is any asset value remaining after the
728apportionment under paragraph (a), apportionment shall next be
729made in respect of each police officer in the service of the
730municipality on such date who has completed at least 10 years of
731credited service, in the municipal police officers' retirement
732trust fund for at least 10 years, and who is not entitled to an
733apportionment under paragraph (a), in the amount required to
734provide the actuarial equivalent of the accrued normal
735retirement income, based on the police officer's credited
736service and earnings to such date, and each former participant
737then entitled to a benefit under the provisions of s. 185.19 who
738has not by such date reached his or her normal retirement date,
739in the amount required to provide the actuarial equivalent of
740the accrued normal retirement income to which he or she is
741entitled under s. 185.19, provided that, if such remaining asset
742value is less than the aggregate of the amounts apportioned
743hereunder, such latter amounts shall be proportionately reduced
744so that the aggregate of such reduced amounts will be equal to
745such remaining asset value.
746     (c)  If there is an asset value after the apportionments
747under paragraphs (a) and (b), apportionment shall lastly be made
748in respect of each police officer in the service of the
749municipality on such date who is not entitled to an
750apportionment under paragraphs (a) and (b) in the amount equal
751to the police officer's total contributions to the plan to date
752of termination, provided that, if such remaining asset value is
753less than the aggregate of the amounts apportioned hereunder,
754such latter amounts shall be proportionately reduced so that the
755aggregate of such reduced amounts will be equal to such
756remaining asset value.
757     (4)(d)  In the event that there is asset value remaining
758after the full distribution apportionment specified in
759subsection (3), and after the payment of any expenses incurred
760with such distribution paragraphs (a), (b), and (c), such excess
761shall be returned to the municipality, less return to the state
762of the state's contributions, provided that, if the excess is
763less than the total contributions made by the municipality and
764the state to date of termination of the plan, such excess shall
765be divided proportionately to the total contributions made by
766the municipality and the state.
767     (5)(4)  The board of trustees shall distribute, in
768accordance with the manner of distribution determined under
769subsection (2), the amounts determined apportioned under
770subsection (3).
771
772If, after a period of 24 months after the date on which the plan
773terminated or the date on which the board received written
774notice that the contributions thereunder were being permanently
775discontinued, the municipality or the board of trustees of the
776municipal police officers' retirement trust fund affected has
777not complied with all the provisions in this section, the
778Department of Management Services division shall effect the
779termination of the fund in accordance with this section.
780     Section 12.  This act shall take effect July 1, 2008.


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