Florida Senate - 2008 COMMITTEE AMENDMENT

Bill No. SB 976

162236

CHAMBER ACTION

Senate

Comm: WD

4/9/2008

House

The Committee on Community Affairs (Wise) recommended the

following amendment:

Senate Amendment (with title amendment)

Delete everything after the enacting clause

and insert:

Section 1. Paragraph (c) of subsection (4) and paragraph

(a) of subsection (8) of section 175.032, Florida Statutes, are

amended to read:

175.032 Definitions.--For any municipality, special fire

control district, chapter plan, local law municipality, local law

special fire control district, or local law plan under this

chapter, the following words and phrases have the following

meanings:

(4) "Creditable service" or "credited service" means the

aggregate number of years of service, and fractional parts of

years of service, of any firefighter, omitting intervening years

and fractional parts of years when such firefighter may not have

been employed by the municipality or special fire control

district, subject to the following conditions:

only for service as a firefighter, as defined in subsection (8),

or for military service and does shall not include credit for any

other type of service. A municipality may, by local ordinance, or

a special fire control district may, by resolution, provide for

the purchase of credit for military service prior to employment

as well as for prior service as a firefighter for some other

employer as long as a firefighter is not entitled to receive a

benefit for such other prior service as a firefighter. For

purposes of determining credit for prior service as a

firefighter, in addition to service as a firefighter in this

state, credit may be given for federal, other state, or county

service if such prior service is recognized by the Division of

State Fire Marshal as provided under chapter 633. The firefighter

must provide proof to the board of trustees that such service is

equivalent to the definition of firefighter under subsection (8).

(8)(a) "Firefighter" means any person employed solely by a

constituted fire department of any municipality or special fire

control district who is certified as a firefighter as a condition

of employment in accordance with the provisions of s. 633.35 and

whose duty it is to extinguish fires, to protect life, or to

protect property. The term includes all certified supervisory and

command personnel whose duties include, in whole or in part, the

supervision, training, guidance, and management responsibilities

of full-time firefighters, part-time firefighters, or auxiliary

firefighters, but does not include part-time firefighters or

auxiliary firefighters. However, for purposes of this chapter

only, "firefighter" also includes public safety officers who are

responsible for performing both police and fire services, who are

certified as police officers or firefighters, and who are

certified by their employers to the Chief Financial Officer as

participating in this chapter prior to October 1, 1979. Effective

October 1, 1979, public safety officers who have not been

certified as participating in this chapter are shall be

considered police officers for retirement purposes and are shall

be eligible to participate in chapter 185. Any plan may provide

that the fire chief has shall have an option to participate, or

not participate, in that plan.

Section 2. Paragraph (a) of subsection (1) and subsection

(7) of section 175.061, Florida Statutes, are amended to read:

175.061 Board of trustees; members; terms of office;

meetings; legal entity; costs; attorney's fees.--For any

municipality, special fire control district, chapter plan, local

law municipality, local law special fire control district, or

local law plan under this chapter:

(1) In each municipality and in each special fire control

district there is hereby created a board of trustees of the

firefighters' pension trust fund, which shall be solely

responsible for administering the trust fund. Effective October

1, 1986, and thereafter:

(a) The membership of the board of trustees for a chapter

plan shall consist of five members, two of whom, unless otherwise

prohibited by law, shall be legal residents of the municipality

or special fire control district and, who shall be appointed by

the governing body of the municipality or special fire control

district, and two of whom shall be full-time firefighters as

defined in s. 175.032 who shall be elected by a majority of the

active firefighters who are members of the such plan. With

respect to any chapter plan or local law plan that, on January 1,

1997, allowed retired firefighters to vote in such elections,

retirees may continue to vote in such elections. The fifth member

shall be chosen by a majority of the previous four members as

provided for herein, and such person's name shall be submitted to

the governing body of the municipality or special fire control

district. Upon receipt of the fifth person's name, the governing

body of the municipality or special fire control district shall,

as a ministerial duty, appoint such person to the board of

trustees as its fifth member. The fifth member shall have the

same rights as each of the other four members appointed or

elected as herein provided, shall serve as trustee for a period

of 2 years, and may succeed himself or herself in office. Each

resident member shall serve as trustee for a period of 2 years,

unless sooner replaced by the governing body at whose pleasure he

or she shall serve, and may succeed himself or herself as a

trustee. Each firefighter member shall serve as trustee for a

period of 2 years, unless he or she sooner leaves the employment

of the municipality or special fire control district as a

firefighter, whereupon a successor shall be chosen in the same

manner as an original appointment. Each firefighter may succeed

100

himself or herself in office. The terms of office of the

101

appointed and elected members of the board may be amended by

102

municipal ordinance, special act of the Legislature, or

103

resolution adopted by the governing body of the special fire

104

control district to extend the terms of office from 2 years to 4

105

years. The length of the terms of office must be the same for all

106

board members.

107

(7) The board of trustees may, upon written request by a

108

the retiree of the plan, or by a dependent, when authorized by

109

the retiree or the retiree's beneficiary, authorize the plan

110

administrator to withhold from the monthly retirement payment

111

those funds that are necessary to pay for the benefits being

112

received through the governmental entity from which the employee

113

retired, to pay the certified bargaining agent of the

114

governmental entity, and to make any payments for child support

115

or alimony. Further, the board of trustees may, upon the written

116

request of the retiree of the plan, authorize the plan

117

administrator to withhold from the retirement payment those funds

118

that are necessary to pay the accident, health, and long-term

119

care insurance premiums for the retiree and the retiree's spouse

120

and dependents. A retirement plan does not incur any liability

121

for participation in this permissive program if its actions are

122

taken in good faith.

123

Section 3. Subsection (1) of section 175.071, Florida

124

Statutes, is amended to read:

125

175.071 General powers and duties of board of

126

trustees.--For any municipality, special fire control district,

127

chapter plan, local law municipality, local law special fire

128

control district, or local law plan under this chapter:

129

(1) The board of trustees, subject to the fiduciary

130

standards in ss. 112.656, 112.661, and 518.11 and the Code of

131

Ethics in ss. 112.311-112.3187, may:

132

(a) Invest and reinvest the assets of the firefighters'

133

pension trust fund in annuity and life insurance contracts of

134

life insurance companies in amounts sufficient to provide, in

135

whole or in part, the benefits to which all of the participants

136

in the firefighters' pension trust fund are shall be entitled

137

under the provisions of this chapter and pay the initial and

138

subsequent premiums thereon.

139

(b) Invest and reinvest the assets of the firefighters'

140

pension trust fund in:

141

1. Time or savings accounts of a national bank, a state

142

bank insured by the Bank Insurance Fund, or a savings, building,

143

and loan association insured by the Savings Association Insurance

144

Fund which is administered by the Federal Deposit Insurance

145

Corporation, or a state or federal chartered credit union whose

146

share accounts are insured by the National Credit Union Share

147

Insurance Fund.

148

2. Obligations of the United States or obligations

149

guaranteed as to principal and interest by the government of the

150

United States.

151

3. Bonds issued by the State of Israel.

152

4. Bonds, stocks, or other evidences of indebtedness issued

153

or guaranteed by a corporation organized under the laws of the

154

United States, any state or organized territory of the United

155

States, or the District of Columbia, provided:

156

a. The corporation is listed on any one or more of the

157

recognized national stock exchanges or on the National Market

158

System of the NASDAQ Stock Market and, in the case of bonds only,

159

holds a rating in one of the three highest classifications by a

160

major rating service; and

161

b. The board of trustees may shall not invest more than 5

162

percent of its assets in the common stock or capital stock of any

163

one issuing company, nor shall the aggregate investment in any

164

one issuing company exceed 5 percent of the outstanding capital

165

stock of that company or the aggregate of its investments under

166

this subparagraph at cost exceed 50 percent of the assets of the

167

fund.

168

169

This paragraph applies shall apply to all boards of trustees and

170

participants. However, if in the event that a municipality or

171

special fire control district has a duly enacted pension plan

172

pursuant to, and in compliance with, s. 175.351, and the trustees

173

of such plan thereof desire to vary the investment procedures

174

herein, the trustees of such plan shall request a variance of the

175

investment procedures as outlined herein only through a municipal

176

ordinance, special act of the Legislature, or resolution by the

177

governing body of the special fire control district; where a

178

special act, or a municipality by ordinance adopted prior to July

179

1, 1998, permits a greater than 50-percent equity investment,

180

such municipality is shall not be required to comply with the

181

aggregate equity investment provisions of this paragraph.

182

Notwithstanding any other provision of law to the contrary,

183

nothing in this section may be construed to take away any

184

preexisting legal authority to make equity investments that

185

exceed the requirements of this paragraph. The board of trustees

186

may invest up to 25 10 percent of plan assets in foreign

187

securities.

188

189

pursuant to this chapter act and rules and regulations prescribed

190

by the board of trustees. All such drafts shall be consecutively

191

numbered, be signed by the chair and secretary or by two

192

individuals designated by the board who are subject to the same

193

fiduciary standards required for the board of trustees under this

194

subsection, and state upon their faces the purpose for which the

195

drafts are drawn. The treasurer or depository of each

196

municipality or special fire control district shall retain such

197

drafts when paid, as permanent vouchers for disbursements made,

198

and no money shall be otherwise drawn from the fund.

199

(d) Convert into cash any securities of the fund.

200

(e) Keep a complete record of all receipts and

201

disbursements and of the board's acts and proceedings.

202

Section 4. Paragraph (b) of subsection (2) of section

203

175.091, Florida Statutes, is amended to read:

204

175.091 Creation and maintenance of fund.--For any

205

municipality, special fire control district, chapter plan, local

206

law municipality, local law special fire control district, or

207

local law plan under this chapter:

208

(2) Member contribution rates may be adjusted as follows:

209

(b) Firefighter member contributions may be increased by

210

consent of the members' collective bargaining representative or,

211

if none, by majority consent of firefighter members of the fund

212

to provide greater benefits. Such increases may be less but may

213

not exceed the percent of payroll increase in total required

214

contributions identified in the actuarial impact statement

215

provided in conjunction with the pension benefit improvement as

216

required under s. 112.63.

217

218

Nothing in this section shall be construed to require adjustment

219

of member contribution rates in effect on the date this act

220

becomes a law, including rates that exceed 5 percent of salary,

221

provided that such rates are at least one-half of 1 percent of

222

salary.

223

Section 5. Subsection (1) of section 175.101, Florida

224

Statutes, is amended to read:

225

175.101 State excise tax on property insurance premiums

226

authorized; procedure.--For any municipality, special fire

227

control district, chapter plan, local law municipality, local law

228

special fire control district, or local law plan under this

229

chapter:

230

(1) Each municipality or special fire control district in

231

this state described and classified in s. 175.041, having a

232

lawfully established firefighters' pension trust fund or

233

municipal fund or special fire control district fund, by whatever

234

name known, providing pension benefits to firefighters as

235

provided under this chapter, may assess and impose on every

236

insurance company, corporation, or other insurer now engaged in

237

or carrying on, or who shall hereinafter engage in or carry on,

238

the business of property insurance, as shown by the records of

239

the Office of Insurance Regulation of the Financial Services

240

Commission, an excise tax in addition to any lawful license or

241

excise tax now levied by each of the municipalities or special

242

fire control districts, respectively, amounting to 1.85 percent

243

of the gross amount of receipts of premiums from policyholders on

244

all premiums collected on property insurance policies covering

245

property within the corporate limits of such municipalities or

246

within the legally defined boundaries of special fire control

247

districts, respectively. Whenever the boundaries of a special

248

fire control district that has lawfully established a

249

firefighters' pension trust fund encompass a portion of the

250

corporate territory of a municipality that has also lawfully

251

established a firefighters' pension trust fund, that portion of

252

the tax receipts attributable to insurance policies covering

253

property situated both within the municipality and the special

254

fire control district shall be given to the fire service

255

provider. For the purpose of this section, the boundaries of a

256

special fire control district are deemed to include an area that

257

has been annexed until the completion of the 4-year period

258

provided for in s. 171.093(4), or other agreed-upon extension, or

259

when a special fire control district is providing services

260

pursuant to an interlocal agreement executed pursuant to s.

261

171.093(3). The agent shall identify the fire service provider on

262

the property owner's application for insurance. Remaining

263

revenues collected pursuant to this chapter shall be distributed

264

to the municipality or special fire control district according to

265

the location of the insured property.

266

267

This section also applies to any municipality consisting of a

268

single consolidated government which is made up of a former

269

county and one or more municipalities, consolidated pursuant to

270

the authority in s. 3 or s. 6(e), Art. VIII of the State

271

Constitution, and to property insurance policies covering

272

property within the boundaries of the consolidated government,

273

regardless of whether the properties are located within one or

274

more separately incorporated areas within the consolidated

275

government, provided the properties are being provided fire

276

protection services by the consolidated government. This section

277

also applies to any municipality, as provided in s.

278

175.041(3)(c), which has entered into an interlocal agreement to

279

receive fire protection services from another municipality

280

participating under this chapter. The excise tax may be levied on

281

all premiums collected on property insurance policies covering

282

property located within the corporate limits of the municipality

283

receiving the fire protection services, but is will be available

284

for distribution to the municipality providing the fire

285

protection services.

286

Section 6. Paragraph (c) of subsection (1) of section

287

175.171, Florida Statutes, is amended to read:

288

175.171 Optional forms of retirement income.--For any

289

municipality, special fire control district, chapter plan, local

290

law municipality, local law special fire control district, or

291

local law plan under this chapter:

292

(1) In lieu of the amount and form of retirement income

293

payable in the event of normal or early retirement as specified

294

in s. 175.162, a firefighter, upon written request to the board

295

of trustees and subject to the approval of the board of trustees,

296

may elect to receive a retirement income or benefit of equivalent

297

actuarial value payable in accordance with one of the following

298

options:

299

300

benefits as, in the opinion of the board of trustees, will best

301

meet the circumstances of the retiring firefighter.

302

1. The firefighter upon electing any option of this section

303

shall will designate the joint pensioner or beneficiary (or

304

beneficiaries) to receive the benefit, if any, payable under the

305

plan in the event of his or her death, and may will have the

306

power to change such designation from time to time, but any such

307

change shall be deemed a new election and is will be subject to

308

approval by the board of trustees. Such designation must will

309

name a joint pensioner or one or more primary beneficiaries where

310

applicable. If a firefighter has elected an option with a joint

311

pensioner or beneficiary and his or her retirement income

312

benefits have commenced, the firefighter may thereafter change

313

the designated joint pensioner or beneficiary, but only if the

314

board of trustees consents to such change and if the joint

315

pensioner last previously designated by the firefighter is alive

316

when the firefighter files with the board of trustees a request

317

for such change.

318

2. The consent of a firefighter's joint pensioner or

319

beneficiary to any such change is shall not be required.

320

3. The board of trustees may request such evidence of the

321

good health of the joint pensioner that is being removed as it

322

may require and the amount of the retirement income payable to

323

the firefighter upon designation of a new joint pensioner shall

324

be actuarially redetermined taking into account the age and sex

325

of the former joint pensioner, the new joint pensioner, and the

326

firefighter. Each such designation must will be made in writing

327

on a form prepared by the board of trustees and on completion

328

must will be filed with the board of trustees. If In the event

329

that no designated beneficiary survives the firefighter, such

330

benefits as are payable in the event of the death of the

331

firefighter subsequent to his or her retirement shall be paid as

332

provided in s. 175.181.

333

4. Notwithstanding the provisions of this paragraph, a

334

retired firefighter may change his or her designation of joint

335

pensioner or beneficiary up to two times as provided in s.

336

175.333 without the approval of the board of trustees or the

337

prior joint annuitant or beneficiary. The retiree does not have

338

to provide proof of the good health of the joint pensioner or of

339

the beneficiary being removed, and the joint pensioner or

340

beneficiary does not have to be living.

341

Section 7. Section 175.361, Florida Statutes, is amended to

342

read:

343

175.361 Termination of plan and distribution of fund.--For

344

any municipality, special fire control district, chapter plan,

345

local law municipality, local law special fire control district,

346

or local law plan under this chapter, the plan may be terminated

347

by the municipality or special fire control district. Upon

348

termination of the plan by the municipality or special fire

349

control district for any reason or because of a transfer, merger,

350

or consolidation of governmental units, services, or functions as

351

provided in chapter 121, or upon written notice by the

352

municipality or special fire control district to the board of

353

trustees that contributions under the plan are being permanently

354

discontinued, the rights of all employees to benefits accrued to

355

the date of such termination and the amounts credited to the

356

employees' accounts are nonforfeitable. The fund shall be

357

apportioned and distributed in accordance with the following

358

procedures:

359

(1) The board of trustees shall determine the date of

360

distribution and the asset value required to fund all the

361

nonforfeitable benefits to be distributed, after taking into

362

account the expenses of such distribution. The board shall inform

363

the municipality or special fire control district if additional

364

assets are required, in which event the municipality or special

365

fire control district must continue to financially support the

366

plan until all nonforfeitable benefits have been funded.

367

(2) The board of trustees shall determine the method of

368

distribution of the asset value, that is, whether distribution

369

shall be by payment in cash, by the maintenance of another or

370

substituted trust fund, by the purchase of insured annuities, or

371

otherwise, for each firefighter entitled to benefits under the

372

plan as specified in subsection (3).

373

(3) The board of trustees shall distribute apportion the

374

asset value as of the date of termination in the manner set forth

375

in this subsection, on the basis that the amount required to

376

provide any given retirement income means shall mean the

377

actuarially computed single-sum value of such retirement income,

378

except that if the method of distribution determined under

379

subsection (2) involves the purchase of an insured annuity, the

380

amount required to provide the given retirement income means

381

shall mean the single premium payable for such annuity. The

382

actuarial single-sum value may not be less than the employee's

383

accumulated contributions to the plan, with interest if provided

384

by the plan, less the value of any plan benefits previously paid

385

to the employee.

386

(a) Apportionment shall first be made in respect of each

387

retired firefighter receiving a retirement income hereunder on

388

such date, each person receiving a retirement income on such date

389

on account of a retired (but since deceased) firefighter, and

390

each firefighter who has, by such date, become eligible for

391

normal retirement but has not yet retired, in the amount required

392

to provide such retirement income, provided that, if such asset

393

value is less than the aggregate of such amounts, such amounts

394

shall be proportionately reduced so that the aggregate of such

395

reduced amounts will be equal to such asset value.

396

(b) If there is any asset value remaining after the

397

apportionment under paragraph (a), apportionment shall next be

398

made in respect of each firefighter in the service of the

399

municipality or special fire control district on such date who

400

has completed at least 10 years of credited service, in the

401

firefighters' pension trust fund for at least 10 years, and who

402

is not entitled to an apportionment under paragraph (a), in the

403

amount required to provide the actuarial equivalent of the

404

accrued normal retirement income, based on the firefighter's

405

credited service and earnings to such date, and each former

406

participant then entitled to a benefit under the provisions of s.

407

175.211 who has not by such date reached his or her normal

408

retirement date, in the amount required to provide the actuarial

409

equivalent of the accrued normal retirement income to which he or

410

she is entitled under s. 175.211; provided that, if such

411

remaining asset value is less than the aggregate of the amounts

412

apportioned hereunder, such latter amounts shall be

413

proportionately reduced so that the aggregate of such reduced

414

amounts will be equal to such remaining asset value.

415

416

under paragraphs (a) and (b), apportionment shall lastly be made

417

in respect of each firefighter in the service of the municipality

418

or special fire control district on such date who is not entitled

419

to an apportionment under paragraphs (a) and (b) in the amount

420

equal to the firefighter's total contributions to the plan to

421

date of termination; provided that, if such remaining asset value

422

is less than the aggregate of the amounts apportioned hereunder,

423

such latter amounts shall be proportionately reduced so that the

424

aggregate of such reduced amounts will be equal to such remaining

425

asset value.

426

(4)(d) If In the event that there is asset value remaining

427

after the full distribution apportionment specified in subsection

428

(3), and after the payment of any expenses incurred with such

429

distribution paragraphs (a), (b), and (c), such excess shall be

430

returned to the municipality or special fire control district,

431

less return to the state of the state's contributions, provided

432

that, if the excess is less than the total contributions made by

433

the municipality or special fire control district and the state

434

to date of termination of the plan, such excess shall be divided

435

proportionately to the total contributions made by the

436

municipality or special fire control district and the state.

437

(5)(4) The board of trustees shall distribute, in

438

accordance with the manner of distribution determined under

439

subsection (2), the amounts determined apportioned under

440

subsection (3).

441

442

If, after a period of 24 months after the date on which the plan

443

terminated or the date on which the board received written notice

444

that the contributions thereunder were being permanently

445

discontinued, the municipality or special fire control district

446

or the board of trustees of the firefighters' pension trust fund

447

affected has not complied with all the provisions in this

448

section, the Department of Management Services division shall

449

effect the termination of the fund in accordance with this

450

section.

451

Section 8. Paragraph (c) of subsection (5) of section

452

185.02, Florida Statutes, is amended to read:

453

185.02 Definitions.--For any municipality, chapter plan,

454

local law municipality, or local law plan under this chapter, the

455

following words and phrases as used in this chapter shall have

456

the following meanings, unless a different meaning is plainly

457

required by the context:

458

(5) "Creditable service" or "credited service" means the

459

aggregate number of years of service and fractional parts of

460

years of service of any police officer, omitting intervening

461

years and fractional parts of years when such police officer may

462

not have been employed by the municipality subject to the

463

following conditions:

464

465

only for service as a police officer, as defined in subsection

466

(11), or for military service and does shall not include credit

467

for any other type of service. A municipality may, by local

468

ordinance, provide for the purchase of credit for military

469

service occurring prior to employment as well as prior service as

470

a police officer for some other employer as long as the police

471

officer is not entitled to receive a benefit for such other prior

472

service as a police officer. For purposes of determining credit

473

for prior service as a police officer, in addition to service as

474

a police officer in this state, credit may be given for federal,

475

other state, or county service as long as such prior service is

476

recognized by the Criminal Justice Standards and Training

477

Commission within the Department of Law Enforcement as provided

478

under chapter 943. The police officer must provide proof to the

479

board of trustees that such service is equivalent to the

480

definition of police officer under subsection (11).

481

Section 9. Paragraph (a) of subsection (1) and subsection

482

(6) of section 185.05, Florida Statutes, are amended to read:

483

185.05 Board of trustees; members; terms of office;

484

meetings; legal entity; costs; attorney's fees.--For any

485

municipality, chapter plan, local law municipality, or local law

486

plan under this chapter:

487

(1) In each municipality described in s. 185.03 there is

488

hereby created a board of trustees of the municipal police

489

officers' retirement trust fund, which shall be solely

490

responsible for administering the trust fund. Effective October

491

1, 1986, and thereafter:

492

(a) The membership of the board of trustees for chapter

493

plans shall consist of five members, two of whom, unless

494

otherwise prohibited by law, shall be legal residents of the

495

municipality and, who shall be appointed by the legislative body

496

of the municipality, and two of whom shall be police officers as

497

defined in s. 185.02 who shall be elected by a majority of the

498

active police officers who are members of the such plan. With

499

respect to any chapter plan or local law plan that, on January 1,

500

1997, allowed retired police officers to vote in such elections,

501

retirees may continue to vote in such elections. The fifth member

502

shall be chosen by a majority of the previous four members, and

503

such person's name shall be submitted to the legislative body of

504

the municipality. Upon receipt of the fifth person's name, the

505

legislative body of the municipality shall, as a ministerial

506

duty, appoint such person to the board of trustees as its fifth

507

member. The fifth member shall have the same rights as each of

508

the other four members appointed or elected as herein provided,

509

shall serve as trustee for a period of 2 years, and may succeed

510

himself or herself in office. Each resident member shall serve as

511

trustee for a period of 2 years, unless sooner replaced by the

512

legislative body at whose pleasure the member shall serve, and

513

may succeed himself or herself as a trustee. Each police officer

514

member shall serve as trustee for a period of 2 years, unless he

515

or she sooner leaves the employment of the municipality as a

516

police officer, whereupon the legislative body of the

517

municipality shall choose a successor shall be chosen in the same

518

manner as an original appointment. Each police officer may

519

succeed himself or herself in office. The terms of office of the

520

appointed and elected members of the board may be amended by

521

municipal ordinance or special act of the Legislature to extend

522

the terms of office from 2 years to 4 years. The length of the

523

terms of office must be the same for all board members.

524

(6) The board of trustees may, upon written request by a

525

the retiree of the plan, or by a dependent, when authorized by

526

the retiree or the retiree's beneficiary, authorize the plan

527

administrator to withhold from the monthly retirement payment

528

those funds that are necessary to pay for the benefits being

529

received through the governmental entity from which the employee

530

retired, to pay the certified bargaining agent of the

531

governmental entity, and to make any payments for child support

532

or alimony. Further, the board of trustees may, upon the written

533

request of the retiree of the plan, authorize the plan

534

administrator to withhold from the retirement payment those funds

535

that are necessary to pay the accident, health, and long-term

536

care insurance premiums for the retiree and the retiree's spouse

537

and dependents. A retirement plan does not incur any liability

538

for participation in this permissive program if its actions are

539

taken in good faith.

540

Section 10. Subsection (1) of section 185.06, Florida

541

Statutes, is amended to read:

542

185.06 General powers and duties of board of trustees.--For

543

any municipality, chapter plan, local law municipality, or local

544

law plan under this chapter:

545

(1) The board of trustees, subject to the fiduciary

546

standards in ss. 112.656, 112.661, and 518.11 and the Code of

547

Ethics in ss. 112.311-112.3187, may:

548

(a) Invest and reinvest the assets of the retirement trust

549

fund in annuity and life insurance contracts of life insurance

550

companies in amounts sufficient to provide, in whole or in part,

551

the benefits to which all of the participants in the municipal

552

police officers' retirement trust fund are shall be entitled

553

under the provisions of this chapter, and pay the initial and

554

subsequent premiums thereon.

555

(b) Invest and reinvest the assets of the retirement trust

556

fund in:

557

1. Time or savings accounts of a national bank, a state

558

bank insured by the Bank Insurance Fund, or a savings and loan

559

association insured by the Savings Association Insurance Fund

560

which is administered by the Federal Deposit Insurance

561

Corporation, or a state or federal chartered credit union whose

562

share accounts are insured by the National Credit Union Share

563

Insurance Fund.

564

2. Obligations of the United States or obligations

565

guaranteed as to principal and interest by the United States.

566

3. Bonds issued by the State of Israel.

567

4. Bonds, stocks, or other evidences of indebtedness issued

568

or guaranteed by a corporation organized under the laws of the

569

United States, any state or organized territory of the United

570

States, or the District of Columbia, provided:

571

a. The corporation is listed on any one or more of the

572

recognized national stock exchanges or on the National Market

573

System of the NASDAQ Stock Market and, in the case of bonds only,

574

holds a rating in one of the three highest classifications by a

575

major rating service; and

576

b. The board of trustees may shall not invest more than 5

577

percent of its assets in the common stock or capital stock of any

578

one issuing company, nor shall the aggregate investment in any

579

one issuing company exceed 5 percent of the outstanding capital

580

stock of the company or the aggregate of its investments under

581

this subparagraph at cost exceed 50 percent of the fund's assets.

582

583

This paragraph applies shall apply to all boards of trustees and

584

participants. However, if in the event that a municipality has a

585

duly enacted pension plan pursuant to, and in compliance with, s.

586

185.35 and the trustees of such plan thereof desire to vary the

587

investment procedures herein, the trustees of such plan shall

588

request a variance of the investment procedures as outlined

589

herein only through a municipal ordinance or special act of the

590

Legislature; where a special act, or a municipality by ordinance

591

adopted prior to July 1, 1998, permits a greater than 50-percent

592

equity investment, such municipality is shall not be required to

593

comply with the aggregate equity investment provisions of this

594

paragraph. Notwithstanding any other provision of law to the

595

contrary, nothing in this section may be construed to take away

596

any preexisting legal authority to make equity investments that

597

exceed the requirements of this paragraph. The board of trustees

598

may invest up to 25 10 percent of plan assets in foreign

599

securities.

600

601

retirement trust fund pursuant to this chapter act and rules and

602

regulations prescribed by the board of trustees. All such drafts

603

shall be consecutively numbered, be signed by the chair and

604

secretary or by two individuals designated by the board who are

605

subject to the same fiduciary standards required for the board of

606

trustees under this subsection, and state upon their faces the

607

purposes for which the drafts are drawn. The city treasurer or

608

other depository shall retain such drafts when paid, as permanent

609

vouchers for disbursements made, and no money shall otherwise be

610

drawn from the fund.

611

(d) Finally decide all claims to relief under the board's

612

rules and regulations and pursuant to the provisions of this

613

chapter act.

614

(e) Convert into cash any securities of the fund.

615

(f) Keep a complete record of all receipts and

616

disbursements and of the board's acts and proceedings.

617

Section 11. Paragraph (b) of subsection (2) of section

618

185.07, Florida Statutes, is amended to read:

619

185.07 Creation and maintenance of fund.--For any

620

municipality, chapter plan, local law municipality, or local law

621

plan under this chapter:

622

(2) Member contribution rates may be adjusted as follows:

623

(b) Police officer member contributions may be increased by

624

consent of the members' collective bargaining representative or,

625

if none, by majority consent of police officer members of the

626

fund to provide greater benefits. Such increases may be less but

627

may not exceed the percent of payroll increase in total required

628

contributions identified in the actuarial impact statement

629

provided in conjunction with the pension benefit improvement

630

required under s. 112.63.

631

632

Nothing in this section shall be construed to require adjustment

633

of member contribution rates in effect on the date this act

634

becomes a law, including rates that exceed 5 percent of salary,

635

provided that such rates are at least one-half of 1 percent of

636

salary.

637

Section 12. Paragraph (c) is added to subsection (1) of

638

section 185.161, Florida Statutes, to read:

639

185.161 Optional forms of retirement income.--For any

640

municipality, chapter plan, local law municipality, or local law

641

plan under this chapter:

642

(1)

643

644

officer may change his or her designation of joint pensioner or

645

beneficiary up to two times as provided in s. 185.341 without the

646

approval of the board of trustees or the prior joint pensioner or

647

beneficiary. The retiree does not have to provide proof of good

648

health of the joint pensioner or of the beneficiary being

649

removed, and the joint pensioner or beneficiary does not have to

650

be living.

651

Section 13. Section 185.37, Florida Statutes, is amended to

652

read:

653

185.37 Termination of plan and distribution of fund.--For

654

any municipality, chapter plan, local law municipality, or local

655

law plan under this chapter, the plan may be terminated by the

656

municipality. Upon termination of the plan by the municipality

657

for any reason, or because of a transfer, merger, or

658

consolidation of governmental units, services, or functions as

659

provided in chapter 121, or upon written notice to the board of

660

trustees by the municipality that contributions under the plan

661

are being permanently discontinued, the rights of all employees

662

to benefits accrued to the date of such termination or

663

discontinuance and the amounts credited to the employees'

664

accounts are nonforfeitable. The fund shall be apportioned and

665

distributed in accordance with the following procedures:

666

(1) The board of trustees shall determine the date of

667

distribution and the asset value required to fund all the

668

nonforfeitable benefits to be distributed, after taking into

669

account the expenses of such distribution. The board shall inform

670

the municipality if additional assets are required, in which

671

event the municipality must continue to financially support the

672

plan until all nonforfeitable benefits have been funded.

673

(2) The board of trustees shall determine the method of

674

distribution of the asset value, that is, whether distribution

675

shall be by payment in cash, by the maintenance of another or

676

substituted trust fund, by the purchase of insured annuities, or

677

otherwise, for each police officer entitled to benefits under the

678

plan, as specified in subsection (3).

679

(3) The board of trustees shall distribute apportion the

680

asset value as of the date of termination in the manner set forth

681

in this subsection, on the basis that the amount required to

682

provide any given retirement income means shall mean the

683

actuarially computed single-sum value of such retirement income,

684

except that if the method of distribution determined under

685

subsection (2) involves the purchase of an insured annuity, the

686

amount required to provide the given retirement income means

687

shall mean the single premium payable for such annuity. The

688

actuarial single sum value may not be less than the employee's

689

accumulated contributions to the plan, with interest if provided

690

by the plan, less the value of any plan benefits previously paid

691

to the employee.

692

(a) Apportionment shall first be made in respect of each

693

retired police officer receiving a retirement income hereunder on

694

such date, each person receiving a retirement income on such date

695

on account of a retired (but since deceased) police officer, and

696

each police officer who has, by such date, become eligible for

697

normal retirement but has not yet retired, in the amount required

698

to provide such retirement income, provided that, if such asset

699

value is less than the aggregate of such amounts, such amounts

700

shall be proportionately reduced so that the aggregate of such

701

reduced amounts will be equal to such asset value.

702

(b) If there is any asset value remaining after the

703

apportionment under paragraph (a), apportionment shall next be

704

made in respect of each police officer in the service of the

705

municipality on such date who has completed at least 10 years of

706

credited service, in the municipal police officers' retirement

707

trust fund for at least 10 years, and who is not entitled to an

708

apportionment under paragraph (a), in the amount required to

709

provide the actuarial equivalent of the accrued normal retirement

710

income, based on the police officer's credited service and

711

earnings to such date, and each former participant then entitled

712

to a benefit under the provisions of s. 185.19 who has not by

713

such date reached his or her normal retirement date, in the

714

amount required to provide the actuarial equivalent of the

715

accrued normal retirement income to which he or she is entitled

716

under s. 185.19, provided that, if such remaining asset value is

717

less than the aggregate of the amounts apportioned hereunder,

718

such latter amounts shall be proportionately reduced so that the

719

aggregate of such reduced amounts will be equal to such remaining

720

asset value.

721

722

under paragraphs (a) and (b), apportionment shall lastly be made

723

in respect of each police officer in the service of the

724

municipality on such date who is not entitled to an apportionment

725

under paragraphs (a) and (b) in the amount equal to the police

726

officer's total contributions to the plan to date of termination,

727

provided that, if such remaining asset value is less than the

728

aggregate of the amounts apportioned hereunder, such latter

729

amounts shall be proportionately reduced so that the aggregate of

730

such reduced amounts will be equal to such remaining asset value.

731

(4)(d) If In the event that there is asset value remaining

732

after the full distribution apportionment specified in subsection

733

(3), and after the payment of any expenses incurred with such

734

distribution paragraphs (a), (b), and (c), such excess shall be

735

returned to the municipality, less return to the state of the

736

state's contributions, provided that, if the excess is less than

737

the total contributions made by the municipality and the state to

738

date of termination of the plan, such excess shall be divided

739

proportionately to the total contributions made by the

740

municipality and the state.

741

(5)(4) The board of trustees shall distribute, in

742

accordance with the manner of distribution determined under

743

subsection (2), the amounts determined apportioned under

744

subsection (3).

745

746

If, after a period of 24 months after the date on which the plan

747

terminated or the date on which the board received written notice

748

that the contributions thereunder were being permanently

749

discontinued, the municipality or the board of trustees of the

750

municipal police officers' retirement trust fund affected has not

751

complied with all the provisions in this section, the Department

752

of Management Services division shall effect the termination of

753

the fund in accordance with this section.

754

Section 14. This act shall take effect July 1, 2008.

755

756

================ T I T L E A M E N D M E N T ================

757

And the title is amended as follows:

758

Delete everything before the enacting clause

759

and insert:

760

A bill to be entitled

761

An act relating to firefighter and municipal police

762

pensions; amending s. 175.032, F.S.; revising the

763

definition of "creditable service" for purposes of

764

determining credit for prior service as a firefighter;

765

revising the definition of "firefighter"; amending s.

766

175.061, F.S.; authorizing the terms of office for the

767

board of trustees of the firefighters' pension trust fund

768

to be revised under certain circumstances; authorizing the

769

firefighters' pension trust fund plan administrator to

770

withhold funds to pay for premiums for accident, health,

771

and long-term care insurance for the retiree and the

772

retiree's spouse and dependents; providing an exemption

773

from liability under certain circumstances; amending s.

774

175.071, F.S.; specifying that trustees are subject to

775

certain standards; authorizing certain individuals to sign

776

drafts issued upon the firefighters' pension trust fund;

777

amending s. 175.091, F.S.; providing guidelines for the

778

adjustment of firefighter member contribution rates;

779

amending s. 175.101, F.S.; clarifying boundaries of a

780

special fire control district for purposes of assessment

781

and imposition of the excise tax on property insurance

782

premiums; amending s. 175.171, F.S.; authorizing retired

783

firefighters to change their designation of joint

784

annuitant or beneficiary up to two times without the

785

approval of the board of trustees or the prior joint

786

annuitant or beneficiary; amending s. 175.361, F.S.;

787

revising fund distribution procedures with respect to plan

788

termination; requiring the Department of Management

789

Services to effect the termination of the fund; amending

790

s. 185.02, F.S.; revising the definition of "creditable

791

service" for purposes of determining credit for prior

792

service as a police officer; amending s. 185.05, F.S.;

793

revising municipal police officers' retirement trust fund

794

board of trustee selection procedures; authorizing the

795

terms of office for the board of trustees of the municipal

796

police officers' retirement trust fund to be revised under

797

certain circumstances; authorizing the plan administrator

798

to withhold funds to pay for premiums for accident,

799

health, and long-term care insurance for the retiree and

800

the retiree's spouse and dependents; providing an

801

exemption from liability under certain circumstances;

802

amending s. 185.06, F.S.; specifying that trustees are

803

subject to certain standards; authorizing certain

804

individuals to sign drafts issued upon the municipal

805

police officers' retirement trust fund; amending s.

806

185.07, F.S.; providing guidelines for the adjustment of

807

police officer member contribution rates; amending s.

808

185.161, F.S.; authorizing retired police officers to

809

change their designation of joint annuitant or beneficiary

810

up to two times without the approval of the board of

811

trustees or the prior joint annuitant or beneficiary;

812

amending s. 185.37, F.S.; revising fund distribution

813

procedures with respect to plan termination; requiring

814

that the Department of Management Services effect the

815

termination of the fund; providing an effective date.

4/8/2008 1:55:00 PM 5-06671-08

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