Florida Senate - 2008 SB 976

By Senator Jones

13-00594B-08 2008976__

A bill to be entitled

An act relating to firefighter and municipal police

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

definition of "creditable service" for purposes of

determining credit for prior service as a firefighter;

revising the definition of "firefighter"; amending s.

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

board of trustees of the firefighters' pension trust fund

to be revised under certain circumstances; authorizing the

firefighters' pension trust fund plan administrator to

withhold funds to pay for premiums for accident, health,

and long-term care insurance for the retiree and the

retiree's spouse and dependents; providing an exemption

from liability under certain circumstances; amending s.

175.071, F.S.; authorizing certain individuals to sign

drafts issued upon the firefighters' pension trust fund;

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

adjustment of firefighter member contribution rates;

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

special fire control district for purposes of assessment

and imposition of the excise tax on property insurance

premiums; amending s. 175.1015, F.S.; requiring that the

review for compliance with certain excise tax reporting

and remitting requirements be performed by the Office of

Insurance Regulation of the Financial Services Commission;

providing notice requirements; amending s. 175.151, F.S.;

revising notification procedures with respect to the

failure to comply with the provisions of ch. 175, F.S.;

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

firefighters to change their designation of joint

annuitant or beneficiary up to two times without the

approval of the board of trustees or the prior joint

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

revising fund distribution procedures with respect to plan

termination; requiring the Department of Management

Services to effect the termination of the fund; amending

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

service" for purposes of determining credit for prior

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

revising municipal police officers' retirement trust fund

board of trustee selection procedures; authorizing the

terms of office for the board of trustees of the municipal

police officers' retirement trust fund to be revised under

certain circumstances; authorizing the plan administrator

to withhold funds to pay for premiums for accident,

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

the retiree's spouse and dependents; providing an

exemption from liability under certain circumstances;

amending s. 185.06, F.S.; authorizing certain individuals

to sign drafts issued upon the municipal police officers'

retirement trust fund; amending s. 185.07, F.S.; providing

guidelines for the adjustment of police officer member

contribution rates; amending s. 185.085, F.S.; requiring

that the review for compliance with certain excise tax

reporting and remitting requirements be performed by the

Office of Insurance Regulation of the Financial Services

Commission; providing notice requirements; amending s.

185.13, F.S.; revising notification procedures with

respect to the failure to comply with the provisions of

ch. 185, F.S.; amending s. 185.161, F.S.; authorizing

retired police officers to change their designation of

joint annuitant or beneficiary up to two times without the

approval of the board of trustees or the prior joint

annuitant or beneficiary; amending s. 185.37, F.S.;

revising fund distribution procedures with respect to plan

termination; requiring that the Department of Management

Services effect the termination of the fund; providing an

effective date.

Be It Enacted by the Legislature of the State of Florida:

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 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 as long as such prior firefighter service is recognized

by the Division of State Fire Marshal as provided under chapter

100

633. The firefighter shall provide proof to the board of trustees

101

that such service is equivalent to the definition of firefighter

102

under subsection (8).

103

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

104

constituted fire department of any municipality or special fire

105

control district who is certified as a firefighter as a condition

106

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

107

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

108

protect property. "Firefighter" includes all certified

109

supervisory and command personnel whose duties include, in whole

110

or in part, the supervision, training, guidance, and management

111

responsibilities of full-time firefighters, part-time

112

firefighters, or auxiliary firefighters but does not include

113

part-time firefighters or auxiliary firefighters. However, for

114

purposes of this chapter only, "firefighter" also includes public

115

safety officers who are responsible for performing both police

116

and fire services, who are certified as police officers or

117

firefighters, and who are certified by their employers to the

118

Chief Financial Officer as participating in this chapter prior to

119

October 1, 1979. Effective October 1, 1979, public safety

120

officers who have not been certified as participating in this

121

chapter shall be considered police officers for retirement

122

purposes and shall be eligible to participate in chapter 185. Any

123

plan may provide that the fire chief shall have an option to

124

participate, or not, in that plan.

125

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

126

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

127

175.061 Board of trustees; members; terms of office;

128

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

129

municipality, special fire control district, chapter plan, local

130

law municipality, local law special fire control district, or

131

local law plan under this chapter:

132

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

133

district there is hereby created a board of trustees of the

134

firefighters' pension trust fund, which shall be solely

135

responsible for administering the trust fund. Effective October

136

1, 1986, and thereafter:

137

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

138

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

139

prohibited by law, shall be legal residents of the municipality

140

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

141

governing body of the municipality or special fire control

142

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

143

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

144

active firefighters who are members of such plan. With respect to

145

any chapter plan or local law plan that, on January 1, 1997,

146

allowed retired firefighters to vote in such elections, retirees

147

may continue to vote in such elections. The fifth member shall be

148

chosen by a majority of the previous four members as provided for

149

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

150

governing body of the municipality or special fire control

151

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

152

body of the municipality or special fire control district shall,

153

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

154

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

155

same rights as each of the other four members appointed or

156

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

157

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

158

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

159

unless sooner replaced by the governing body at whose pleasure he

160

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

161

trustee. Each firefighter member shall serve as trustee for a

162

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

163

of the municipality or special fire control district as a

164

firefighter, whereupon a successor shall be chosen in the same

165

manner as an original appointment. Each firefighter may succeed

166

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

167

appointed and elected members of the board may be amended by

168

municipal ordinance, special act of the Legislature, or

169

resolution adopted by the governing body of the special fire

170

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

171

years. The length of the terms of office shall be the same for

172

all board members.

173

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

174

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

175

retiree or the retiree's beneficiary, authorize the plan

176

administrator to withhold from the monthly retirement payment

177

those funds that are necessary to pay for the benefits being

178

received through the governmental entity from which the employee

179

retired, to pay the certified bargaining agent of the

180

governmental entity, and to make any payments for child support

181

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

182

request of the retiree of the plan, authorize the plan

183

administrator to withhold from the retirement payment those funds

184

that are necessary to pay for premiums for accident, health, and

185

long-term care insurance for the retiree and the retiree's spouse

186

and dependents. A retirement plan does not incur any liability

187

for participation in this permissive program if its actions are

188

taken in good faith.

189

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

190

Statutes, is amended to read:

191

175.071 General powers and duties of board of

192

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

193

chapter plan, local law municipality, local law special fire

194

control district, or local law plan under this chapter:

195

(1) The board of trustees may:

196

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

197

pension trust fund in annuity and life insurance contracts of

198

life insurance companies in amounts sufficient to provide, in

199

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

200

in the firefighters' pension trust fund shall be entitled under

201

the provisions of this chapter and pay the initial and subsequent

202

premiums thereon.

203

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

204

pension trust fund in:

205

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

206

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

207

and loan association insured by the Savings Association Insurance

208

Fund which is administered by the Federal Deposit Insurance

209

Corporation or a state or federal chartered credit union whose

210

share accounts are insured by the National Credit Union Share

211

Insurance Fund.

212

2. Obligations of the United States or obligations

213

guaranteed as to principal and interest by the government of the

214

United States.

215

3. Bonds issued by the State of Israel.

216

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

217

or guaranteed by a corporation organized under the laws of the

218

United States, any state or organized territory of the United

219

States, or the District of Columbia, provided:

220

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

221

recognized national stock exchanges or on the National Market

222

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

223

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

224

major rating service; and

225

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

226

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

227

one issuing company, nor shall the aggregate investment in any

228

one issuing company exceed 5 percent of the outstanding capital

229

stock of that company or the aggregate of its investments under

230

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

231

fund.

232

233

This paragraph shall apply to all boards of trustees and

234

participants. However, in the event that a municipality or

235

special fire control district has a duly enacted pension plan

236

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

237

thereof desire to vary the investment procedures herein, the

238

trustees of such plan shall request a variance of the investment

239

procedures as outlined herein only through a municipal ordinance,

240

special act of the Legislature, or resolution by the governing

241

body of the special fire control district; where a special act,

242

or a municipality by ordinance adopted prior to July 1, 1998,

243

permits a greater than 50-percent equity investment, such

244

municipality shall not be required to comply with the aggregate

245

equity investment provisions of this paragraph. Notwithstanding

246

any other provision of law to the contrary, nothing in this

247

section may be construed to take away any preexisting legal

248

authority to make equity investments that exceed the requirements

249

of this paragraph. The board of trustees may invest up to 25 10

250

percent of plan assets in foreign securities.

251

252

pursuant to this act and rules and regulations prescribed by the

253

board of trustees. All such drafts shall be consecutively

254

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

255

individuals designated by the board who are subject to the same

256

fiduciary standards as required for the board of trustees under

257

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

258

the drafts are drawn. The treasurer or depository of each

259

municipality or special fire control district shall retain such

260

drafts when paid, as permanent vouchers for disbursements made,

261

and no money shall be otherwise drawn from the fund.

262

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

263

(e) Keep a complete record of all receipts and

264

disbursements and of the board's acts and proceedings.

265

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

266

175.091, Florida Statutes, is amended to read:

267

175.091 Creation and maintenance of fund.--For any

268

municipality, special fire control district, chapter plan, local

269

law municipality, local law special fire control district, or

270

local law plan under this chapter:

271

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

272

(b) Firefighter member contributions may be increased by

273

consent of the members' collective bargaining representative or,

274

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

275

to provide greater benefits. Such increases in the firefighters'

276

contributions may be less but may not exceed the percent of

277

payroll increase identified in the actuarial impact statement

278

provided in conjunction with the pension benefit improvement as

279

required under s. 112.63.

280

281

Nothing in this section shall be construed to require adjustment

282

of member contribution rates in effect on the date this act

283

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

284

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

285

salary.

286

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

287

Statutes, is amended to read:

288

175.101 State excise tax on property insurance premiums

289

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

290

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

291

special fire control district, or local law plan under this

292

chapter:

293

(1) Each municipality or special fire control district in

294

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

295

lawfully established firefighters' pension trust fund or

296

municipal fund or special fire control district fund, by whatever

297

name known, providing pension benefits to firefighters as

298

provided under this chapter, may assess and impose on every

299

insurance company, corporation, or other insurer now engaged in

300

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

301

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

302

Office of Insurance Regulation of the Financial Services

303

Commission an excise tax in addition to any lawful license or

304

excise tax now levied by each of the municipalities or special

305

fire control districts, respectively, amounting to 1.85 percent

306

of the gross amount of receipts of premiums from policyholders on

307

all premiums collected on property insurance policies covering

308

property within the corporate limits of such municipalities or

309

within the legally defined boundaries of special fire control

310

districts, respectively. Whenever the boundaries of a special

311

fire control district that has lawfully established a

312

firefighters' pension trust fund encompass a portion of the

313

corporate territory of a municipality that has also lawfully

314

established a firefighters' pension trust fund, that portion of

315

the tax receipts attributable to insurance policies covering

316

property situated both within the municipality and the special

317

fire control district shall be given to the fire service

318

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

319

special fire control district shall be deemed to include an area

320

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

321

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

322

the termination of an interlocal agreement executed pursuant to

323

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

324

on the property owner's application for insurance. Remaining

325

revenues collected pursuant to this chapter shall be distributed

326

to the municipality or special fire control district according to

327

the location of the insured property.

328

329

This section also applies to any municipality consisting of a

330

single consolidated government which is made up of a former

331

county and one or more municipalities, consolidated pursuant to

332

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

333

Constitution, and to property insurance policies covering

334

property within the boundaries of the consolidated government,

335

regardless of whether the properties are located within one or

336

more separately incorporated areas within the consolidated

337

government, provided the properties are being provided fire

338

protection services by the consolidated government. This section

339

also applies to any municipality, as provided in s.

340

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

341

receive fire protection services from another municipality

342

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

343

all premiums collected on property insurance policies covering

344

property located within the corporate limits of the municipality

345

receiving the fire protection services, but will be available for

346

distribution to the municipality providing the fire protection

347

services.

348

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

349

175.1015, Florida Statutes, is amended to read:

350

175.1015 Determination of local premium tax situs.--

351

(1)(a) Any insurance company that is obligated to report

352

and remit the excise tax on property insurance premiums imposed

353

under s. 175.101 shall be held harmless from any liability,

354

including, but not limited to, liability for taxes, interest, or

355

penalties that would otherwise be due solely as a result of an

356

assignment of an insured property to an incorrect local taxing

357

jurisdiction if the insurance company exercises due diligence in

358

applying an electronic database provided by the Department of

359

Revenue under subsection (2). Insurance companies that do not use

360

the electronic database provided by the Department of Revenue or

361

that do not exercise due diligence in applying the electronic

362

database for tax years on or after January 1, 2006, are subject

363

to a 0.5 percent penalty on the portion of the premium pertaining

364

to any insured risk that is improperly assigned, whether assigned

365

to an improper local taxing jurisdiction, not assigned to a local

366

taxing jurisdiction when it should be assigned to a local taxing

367

jurisdiction, or assigned to a local taxing jurisdiction when it

368

should not be assigned to a local taxing jurisdiction. The review

369

for compliance with these provisions as well as the assessment of

370

such fines and penalties shall be performed by the Office of

371

Insurance Regulation of the Financial Services Commission. The

372

Department of Revenue shall assist by notifying the Office of

373

Insurance Regulation of a company's failure to report or provide

374

an adequate response to significant variances on the DR-908,

375

Schedules XII and XIII.

376

Section 7. Section 175.151, Florida Statutes, is amended to

377

read:

378

175.151 Penalty for failure of insurers to comply with this

379

act.--If any insurance company, corporation or other insurer

380

fails to comply with the provisions of this act, on or before

381

March 1 of each year as herein provided, the certificate of

382

authority issued to said insurance company, corporation or other

383

insurer to transact business in this state may be canceled and

384

revoked by the Office of Insurance Regulation of the Financial

385

Services Commission, and it is unlawful for any such insurance

386

company, corporation, or other insurer to transact business

387

thereafter in this state unless such insurance company,

388

corporation, or other insurer shall be granted a new certificate

389

of authority to transact any business in this state, in

390

compliance with provisions of law authorizing such certificate of

391

authority to be issued. The Department of Revenue shall be

392

division is responsible for notifying the Office of Insurance

393

Regulation and the division regarding any such failure to comply.

394

Section 8. Paragraph (c) of subsection (1) of section

395

175.171, Florida Statutes, is amended to read:

396

175.171 Optional forms of retirement income.--For any

397

municipality, special fire control district, chapter plan, local

398

law municipality, local law special fire control district, or

399

local law plan under this chapter:

400

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

401

payable in the event of normal or early retirement as specified

402

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

403

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

404

may elect to receive a retirement income or benefit of equivalent

405

actuarial value payable in accordance with one of the following

406

options:

407

408

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

409

meet the circumstances of the retiring firefighter.

410

1. The firefighter upon electing any option of this section

411

will designate the joint pensioner or beneficiary (or

412

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

413

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

414

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

415

shall be deemed a new election and will be subject to approval by

416

the board of trustees. Such designation will name a joint

417

pensioner or one or more primary beneficiaries where applicable.

418

If a firefighter has elected an option with a joint pensioner or

419

beneficiary and his or her retirement income benefits have

420

commenced, the firefighter may thereafter change the designated

421

joint pensioner or beneficiary, but only if the board of trustees

422

consents to such change and if the joint pensioner last

423

previously designated by the firefighter is alive when the

424

firefighter files with the board of trustees a request for such

425

change.

426

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

427

beneficiary to any such change shall not be required.

428

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

429

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

430

may require and the amount of the retirement income payable to

431

the firefighter upon designation of a new joint pensioner shall

432

be actuarially redetermined taking into account the age and sex

433

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

434

firefighter. Each such designation will be made in writing on a

435

form prepared by the board of trustees and on completion will be

436

filed with the board of trustees. In the event that no designated

437

beneficiary survives the firefighter, such benefits as are

438

payable in the event of the death of the firefighter subsequent

439

to his or her retirement shall be paid as provided in s. 175.181.

440

4. Notwithstanding the provisions of this paragraph, the

441

retired firefighter may change his or her designation of joint

442

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

443

175.333 without the approval of the board of trustees or the

444

prior joint annuitant or beneficiary. The retiree may not be

445

required to provide proof of good health of the joint annuitant

446

or of the beneficiary being removed, and the joint annuitant or

447

beneficiary need not be living.

448

Section 9. Section 175.361, Florida Statutes, is amended to

449

read:

450

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

451

any municipality, special fire control district, chapter plan,

452

local law municipality, local law special fire control district,

453

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

454

by the municipality or special fire control district. Upon

455

termination of the plan by the municipality or special fire

456

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

457

or consolidation of governmental units, services, or functions as

458

provided in chapter 121, or upon written notice by the

459

municipality or special fire control district to the board of

460

trustees that contributions under the plan are being permanently

461

discontinued, the rights of all employees to benefits accrued to

462

the date of such termination and the amounts credited to the

463

employees' accounts are nonforfeitable. The fund shall be

464

apportioned and distributed in accordance with the following

465

procedures:

466

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

467

distribution and the asset value required to fund all the

468

nonforfeitable benefits to be distributed, after taking into

469

account the expenses of such distribution. The board shall inform

470

the municipality or special fire control district if additional

471

assets are required, in which event such municipality or special

472

fire control district shall continue to financially support the

473

plan until all nonforfeitable benefits have been funded.

474

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

475

distribution of the asset value, that is, whether distribution

476

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

477

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

478

otherwise, for each firefighter entitled to benefits under the

479

plan as specified in subsection (3).

480

(3) The board of trustees shall distribute apportion the

481

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

482

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

483

provide any given retirement income shall mean the actuarially

484

computed single-sum value of such retirement income, except that

485

if the method of distribution determined under subsection (2)

486

involves the purchase of an insured annuity, the amount required

487

to provide the given retirement income shall mean the single

488

premium payable for such annuity. The actuarial single sum value

489

may not be less than the employee's accumulated contributions to

490

the plan, with interest if provided by the plan, less the value

491

of any plan benefits previously paid to the employee.

492

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

493

retired firefighter receiving a retirement income hereunder on

494

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

495

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

496

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

497

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

498

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

499

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

500

shall be proportionately reduced so that the aggregate of such

501

reduced amounts will be equal to such asset value.

502

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

503

apportionment under paragraph (a), apportionment shall next be

504

made in respect of each firefighter in the service of the

505

municipality or special fire control district on such date who

506

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

507

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

508

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

509

amount required to provide the actuarial equivalent of the

510

accrued normal retirement income, based on the firefighter's

511

credited service and earnings to such date, and each former

512

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

513

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

514

retirement date, in the amount required to provide the actuarial

515

equivalent of the accrued normal retirement income to which he or

516

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

517

remaining asset value is less than the aggregate of the amounts

518

apportioned hereunder, such latter amounts shall be

519

proportionately reduced so that the aggregate of such reduced

520

amounts will be equal to such remaining asset value.

521

522

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

523

in respect of each firefighter in the service of the municipality

524

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

525

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

526

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

527

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

528

is less than the aggregate of the amounts apportioned hereunder,

529

such latter amounts shall be proportionately reduced so that the

530

aggregate of such reduced amounts will be equal to such remaining

531

asset value.

532

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

533

after the full distribution apportionment specified in subsection

534

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

535

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

536

returned to the municipality or special fire control district,

537

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

538

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

539

the municipality or special fire control district and the state

540

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

541

proportionately to the total contributions made by the

542

municipality or special fire control district and the state.

543

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

544

accordance with the manner of distribution determined under

545

subsection (2), the amounts determined apportioned under

546

subsection (3).

547

548

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

549

terminated or the date on which the board received written notice

550

that the contributions thereunder were being permanently

551

discontinued, the municipality or special fire control district

552

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

553

affected has not complied with all the provisions in this

554

section, the Department of Management Services division shall

555

effect the termination of the fund in accordance with this

556

section.

557

Section 10. Paragraph (c) of subsection (5) of section

558

185.02, Florida Statutes, is amended to read:

559

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

560

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

561

following words and phrases as used in this chapter shall have

562

the following meanings, unless a different meaning is plainly

563

required by the context:

564

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

565

aggregate number of years of service and fractional parts of

566

years of service of any police officer, omitting intervening

567

years and fractional parts of years when such police officer may

568

not have been employed by the municipality subject to the

569

following conditions:

570

571

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

572

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

573

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

574

ordinance, provide for the purchase of credit for military

575

service occurring prior to employment as well as prior service as

576

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

577

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

578

service as a police officer. For purposes of determining credit

579

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

580

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

581

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

582

service is recognized by the Criminal Justice Standards and

583

Training Commission within the Department of Law Enforcement as

584

provided under chapter 943. The police officer shall provide

585

proof to the board of trustees that such service is equivalent to

586

the definition of police officer under subsection (11).

587

Section 11. Paragraph (a) of subsection (1) and subsection

588

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

589

185.05 Board of trustees; members; terms of office;

590

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

591

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

592

plan under this chapter:

593

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

594

hereby created a board of trustees of the municipal police

595

officers' retirement trust fund, which shall be solely

596

responsible for administering the trust fund. Effective October

597

1, 1986, and thereafter:

598

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

599

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

600

otherwise prohibited by law, shall be legal residents of the

601

municipality, who shall be appointed by the legislative body of

602

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

603

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

604

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

605

to any chapter plan or local law plan that, on January 1, 1997,

606

allowed retired police officers to vote in such elections,

607

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

608

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

609

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

610

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

611

legislative body of the municipality shall, as a ministerial

612

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

613

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

614

the other four members appointed or elected as herein provided,

615

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

616

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

617

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

618

legislative body at whose pleasure the member shall serve, and

619

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

620

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

621

or she sooner leaves the employment of the municipality as a

622

police officer, whereupon the legislative body of the

623

municipality shall choose a successor shall be chosen in the same

624

manner as an original appointment. Each police officer may

625

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

626

appointed and elected members of the board may be amended by

627

municipal ordinance or special act of the Legislature to extend

628

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

629

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

630

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

631

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

632

retiree or the retiree's beneficiary, authorize the plan

633

administrator to withhold from the monthly retirement payment

634

those funds that are necessary to pay for the benefits being

635

received through the governmental entity from which the employee

636

retired, to pay the certified bargaining agent of the

637

governmental entity, and to make any payments for child support

638

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

639

request of the retiree of the plan, authorize the plan

640

administrator to withhold from the retirement payment those funds

641

that are necessary to pay for premiums for accident, health, and

642

long-term care insurance for the retiree and the retiree's spouse

643

and dependents. A retirement plan does not incur any liability

644

for participation in this permissive program if its actions are

645

taken in good faith.

646

Section 12. Subsection (1) of section 185.06, Florida

647

Statutes, is amended to read:

648

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

649

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

650

law plan under this chapter:

651

(1) The board of trustees may:

652

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

653

fund in annuity and life insurance contracts of life insurance

654

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

655

the benefits to which all of the participants in the municipal

656

police officers' retirement trust fund shall be entitled under

657

the provisions of this chapter, and pay the initial and

658

subsequent premiums thereon.

659

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

660

fund in:

661

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

662

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

663

association insured by the Savings Association Insurance Fund

664

which is administered by the Federal Deposit Insurance

665

Corporation or a state or federal chartered credit union whose

666

share accounts are insured by the National Credit Union Share

667

Insurance Fund.

668

2. Obligations of the United States or obligations

669

guaranteed as to principal and interest by the United States.

670

3. Bonds issued by the State of Israel.

671

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

672

or guaranteed by a corporation organized under the laws of the

673

United States, any state or organized territory of the United

674

States, or the District of Columbia, provided:

675

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

676

recognized national stock exchanges or on the National Market

677

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

678

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

679

major rating service; and

680

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

681

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

682

one issuing company, nor shall the aggregate investment in any

683

one issuing company exceed 5 percent of the outstanding capital

684

stock of the company or the aggregate of its investments under

685

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

686

687

This paragraph shall apply to all boards of trustees and

688

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

689

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

690

185.35 and the trustees thereof desire to vary the investment

691

procedures herein, the trustees of such plan shall request a

692

variance of the investment procedures as outlined herein only

693

through a municipal ordinance or special act of the Legislature;

694

where a special act, or a municipality by ordinance adopted prior

695

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

696

investment, such municipality shall not be required to comply

697

with the aggregate equity investment provisions of this

698

paragraph. Notwithstanding any other provision of law to the

699

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

700

any preexisting legal authority to make equity investments that

701

exceed the requirements of this paragraph. The board of trustees

702

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

703

securities.

704

705

retirement trust fund pursuant to this act and rules and

706

regulations prescribed by the board of trustees. All such drafts

707

shall be consecutively numbered, be signed by the chair and

708

secretary or by two individuals designated by the board who are

709

subject to the same fiduciary standards as required for the board

710

of trustees under this subsection, and state upon their faces the

711

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

712

other depository shall retain such drafts when paid, as permanent

713

vouchers for disbursements made, and no money shall otherwise be

714

drawn from the fund.

715

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

716

rules and regulations and pursuant to the provisions of this act.

717

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

718

(f) Keep a complete record of all receipts and

719

disbursements and of the board's acts and proceedings.

720

Section 13. Paragraph (b) of subsection (2) of section

721

185.07, Florida Statutes, is amended to read:

722

185.07 Creation and maintenance of fund.--For any

723

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

724

plan under this chapter:

725

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

726

(b) Police officer member contributions may be increased by

727

consent of the members' collective bargaining representative or,

728

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

729

fund to provide greater benefits. Such increases in the police

730

officers' contributions may be less but may not exceed the

731

percent of payroll increase identified in the actuarial impact

732

statement provided in conjunction with the pension benefit

733

improvement as required under s. 112.63.

734

735

Nothing in this section shall be construed to require adjustment

736

of member contribution rates in effect on the date this act

737

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

738

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

739

salary.

740

Section 14. Paragraph (a) of subsection (1) of section

741

185.085, Florida Statutes, is amended to read:

742

185.085 Determination of local premium tax situs.--

743

(1)(a) Any insurance company that is obligated to report

744

and remit the excise tax on casualty insurance premiums imposed

745

under s. 185.08 shall be held harmless from any liability,

746

including, but not limited to, liability for taxes, interest, or

747

penalties that would otherwise be due solely as a result of an

748

assignment of an insured property to an incorrect local taxing

749

jurisdiction if the insurance company exercises due diligence in

750

applying an electronic database provided by the Department of

751

Revenue under subsection (2). Insurance companies that do not use

752

the electronic database provided by the Department of Revenue or

753

that do not exercise due diligence in applying the electronic

754

database for tax years on or after January 1, 2006, are subject

755

to a 0.5 percent penalty on the portion of the premium pertaining

756

to any insured risk that is improperly assigned, whether assigned

757

to an improper local taxing jurisdiction, not assigned to a local

758

taxing jurisdiction when it should be assigned to a local taxing

759

jurisdiction, or assigned to a local taxing jurisdiction when it

760

should not be assigned to a local taxing jurisdiction. The review

761

for compliance with these provisions as well as the assessment of

762

such fines and penalties shall be performed by the Office of

763

Insurance Regulation of the Financial Services Commission. The

764

Department of Revenue shall assist by notifying the Office of

765

Insurance Regulation of a company's failure to report or provide

766

an adequate response to significant variances on the DR-908,

767

Schedules XII and XIII.

768

Section 15. Section 185.13, Florida Statutes, is amended to

769

read:

770

185.13 Failure of insurer to comply with chapter;

771

penalty.--If any insurance company, corporation or other insurer

772

fails to comply with the provisions of this chapter, on or before

773

March 1 in each year as herein provided, the certificate of

774

authority issued to said insurance company, corporation or other

775

insurer to transact business in this state may be canceled and

776

revoked by the Office of Insurance Regulation of the Financial

777

Services Commission, and it is unlawful for any such insurance

778

company, corporation or other insurer to transact any business

779

thereafter in this state unless such insurance company,

780

corporation or other insurer shall be granted a new certificate

781

of authority to transact business in this state, in compliance

782

with provisions of law authorizing such certificate of authority

783

to be issued. The Department of Revenue division shall be

784

responsible for notifying the Office of Insurance Regulation and

785

the division regarding any such failure to comply.

786

Section 16. Paragraph (c) is added to subsection (1) of

787

section 185.161, Florida Statutes, to read:

788

185.161 Optional forms of retirement income.--For any

789

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

790

plan under this chapter:

791

(1)

792

793

retired police officer may change his or her designation of joint

794

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

795

185.341 without the approval of the board of trustees or the

796

prior joint annuitant or beneficiary. The retiree may not be

797

required to provide proof of good health of the joint annuitant

798

or of the beneficiary being removed, and the joint annuitant or

799

beneficiary need not be living.

800

Section 17. Section 185.37, Florida Statutes, is amended to

801

read:

802

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

803

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

804

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

805

municipality. Upon termination of the plan by the municipality

806

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

807

consolidation of governmental units, services, or functions as

808

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

809

trustees by the municipality that contributions under the plan

810

are being permanently discontinued, the rights of all employees

811

to benefits accrued to the date of such termination or

812

discontinuance and the amounts credited to the employees'

813

accounts are nonforfeitable. The fund shall be apportioned and

814

distributed in accordance with the following procedures:

815

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

816

distribution and the asset value required to fund all the

817

nonforfeitable benefits to be distributed, after taking into

818

account the expenses of such distribution. The board shall inform

819

the municipality if additional assets are required, in which

820

event such municipality shall continue to financially support the

821

plan until all nonforfeitable benefits have been funded.

822

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

823

distribution of the asset value, that is, whether distribution

824

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

825

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

826

otherwise, for each police officer entitled to benefits under the

827

plan, as specified in subsection (3).

828

(3) The board of trustees shall distribute apportion the

829

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

830

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

831

provide any given retirement income shall mean the actuarially

832

computed single-sum value of such retirement income, except that

833

if the method of distribution determined under subsection (2)

834

involves the purchase of an insured annuity, the amount required

835

to provide the given retirement income shall mean the single

836

premium payable for such annuity. The actuarial single sum value

837

may not be less than the employee's accumulated contributions to

838

the plan, with interest if provided by the plan, less the value

839

of any plan benefits previously paid to the employee.

840

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

841

retired police officer receiving a retirement income hereunder on

842

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

843

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

844

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

845

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

846

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

847

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

848

shall be proportionately reduced so that the aggregate of such

849

reduced amounts will be equal to such asset value.

850

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

851

apportionment under paragraph (a), apportionment shall next be

852

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

853

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

854

credited service, in the municipal police officers' retirement

855

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

856

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

857

provide the actuarial equivalent of the accrued normal retirement

858

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

859

earnings to such date, and each former participant then entitled

860

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

861

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

862

amount required to provide the actuarial equivalent of the

863

accrued normal retirement income to which he or she is entitled

864

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

865

less than the aggregate of the amounts apportioned hereunder,

866

such latter amounts shall be proportionately reduced so that the

867

aggregate of such reduced amounts will be equal to such remaining

868

asset value.

869

870

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

871

in respect of each police officer in the service of the

872

municipality on such date who is not entitled to an apportionment

873

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

874

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

875

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

876

aggregate of the amounts apportioned hereunder, such latter

877

amounts shall be proportionately reduced so that the aggregate of

878

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

879

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

880

after the full distribution apportionment specified in subsection

881

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

882

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

883

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

884

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

885

the total contributions made by the municipality and the state to

886

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

887

proportionately to the total contributions made by the

888

municipality and the state.

889

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

890

accordance with the manner of distribution determined under

891

subsection (2), the amounts determined apportioned under

892

subsection (3).

893

894

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

895

terminated or the date on which the board received written notice

896

that the contributions thereunder were being permanently

897

discontinued, the municipality or the board of trustees of the

898

municipal police officers' retirement trust fund affected has not

899

complied with all the provisions in this section, the Department

900

of Management Services division shall effect the termination of

901

the fund in accordance with this section.

902

Section 18. This act shall take effect July 1, 2008.

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