1

A bill to be entitled

2

An act relating to firefighter and municipal police

3

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

4

definition of "creditable service" for purposes of

5

determining credit for prior service as a firefighter;

6

revising the definition of "firefighter"; amending s.

7

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

8

board of trustees of the firefighters' pension trust fund

9

to be revised under certain circumstances; authorizing the

10

firefighters' pension trust fund plan administrator to

11

withhold funds to pay for premiums for accident, health,

12

and long-term care insurance for the retiree and the

13

retiree's spouse and dependents; providing an exemption

14

from liability under certain circumstances; amending s.

15

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

16

certain standards; authorizing certain individuals to sign

17

drafts issued upon the firefighters' pension trust fund;

18

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

19

special fire control district for purposes of assessment

20

and imposition of the excise tax on property insurance

21

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

22

firefighters to change their designation of joint

23

annuitant or beneficiary up to two times without the

24

approval of the board of trustees or the prior joint

25

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

26

revising fund distribution procedures with respect to plan

27

termination; requiring the Department of Management

28

Services to effect the termination of the fund; amending

29

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

30

service" for purposes of determining credit for prior

31

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

32

revising municipal police officers' retirement trust fund

33

board of trustee selection procedures; authorizing the

34

terms of office for the board of trustees of the municipal

35

police officers' retirement trust fund to be revised under

36

certain circumstances; authorizing the plan administrator

37

to withhold funds to pay for premiums for accident,

38

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

39

the retiree's spouse and dependents; providing an

40

exemption from liability under certain circumstances;

41

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

42

subject to certain standards; authorizing certain

43

individuals to sign drafts issued upon the municipal

44

police officers' retirement trust fund; amending s.

45

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

46

change their designation of joint annuitant or beneficiary

47

up to two times without the approval of the board of

48

trustees or the prior joint annuitant or beneficiary;

49

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

50

procedures with respect to plan termination; requiring

51

that the Department of Management Services effect the

52

termination of the fund; providing an effective date.

53

54

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

55

56

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

57

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

58

amended to read:

59

     175.032  Definitions.--For any municipality, special fire

60

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

61

special fire control district, or local law plan under this

62

chapter, the following words and phrases have the following

63

meanings:

64

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

65

aggregate number of years of service, and fractional parts of

66

years of service, of any firefighter, omitting intervening years

67

and fractional parts of years when such firefighter may not have

68

been employed by the municipality or special fire control

69

district, subject to the following conditions:

70

     (c)  Credited service under this chapter shall be provided

71

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

72

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

73

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

74

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

75

the purchase of credit for military service prior to employment

76

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

77

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

78

benefit for such other prior service as a firefighter. For

79

purposes of determining credit for prior service as a

80

firefighter, in addition to service as a firefighter in this

81

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

82

service if such prior service is recognized by the Division of

83

State Fire Marshal as provided under chapter 633. The firefighter

84

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

85

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

86

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

87

constituted fire department of any municipality or special fire

88

control district who is certified as a firefighter as a condition

89

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

90

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

91

protect property. The term includes all certified supervisory and

92

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

93

supervision, training, guidance, and management responsibilities

94

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

95

firefighters, but does not include part-time firefighters or

96

auxiliary firefighters. However, for purposes of this chapter

97

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

98

responsible for performing both police and fire services, who are

99

certified as police officers or firefighters, and who are

100

certified by their employers to the Chief Financial Officer as

101

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

102

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

103

certified as participating in this chapter are shall be

104

considered police officers for retirement purposes and are shall

105

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

106

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

107

not participate, in that plan.

108

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

109

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

110

     175.061  Board of trustees; members; terms of office;

111

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

112

municipality, special fire control district, chapter plan, local

113

law municipality, local law special fire control district, or

114

local law plan under this chapter:

115

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

116

district there is hereby created a board of trustees of the

117

firefighters' pension trust fund, which shall be solely

118

responsible for administering the trust fund. Effective October

119

1, 1986, and thereafter:

120

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

121

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

122

prohibited by law, shall be legal residents of the municipality

123

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

124

the governing body of the municipality or special fire control

125

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

126

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

127

active firefighters who are members of the such plan. With

128

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

129

1997, allowed retired firefighters to vote in such elections,

130

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

131

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

132

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

133

the governing body of the municipality or special fire control

134

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

135

body of the municipality or special fire control district shall,

136

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

137

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

138

same rights as each of the other four members appointed or

139

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

140

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

141

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

142

unless sooner replaced by the governing body at whose pleasure he

143

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

144

trustee. Each firefighter member shall serve as trustee for a

145

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

146

of the municipality or special fire control district as a

147

firefighter, whereupon a successor shall be chosen in the same

148

manner as an original appointment. Each firefighter may succeed

149

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

150

appointed and elected members of the board may be amended by

151

municipal ordinance, special act of the Legislature, or

152

resolution adopted by the governing body of the special fire

153

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

154

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

155

board members.

156

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

157

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

158

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

159

administrator to withhold from the monthly retirement payment

160

those funds that are necessary to pay for the benefits being

161

received through the governmental entity from which the employee

162

retired, to pay the certified bargaining agent of the

163

governmental entity, and to make any payments for child support

164

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

165

request of the retiree of the plan, authorize the plan

166

administrator to withhold from the retirement payment those funds

167

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

168

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

169

and dependents. A retirement plan does not incur any liability

170

for participation in this permissive program if its actions are

171

taken in good faith.

172

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

173

Statutes, is amended to read:

174

     175.071  General powers and duties of board of

175

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

176

chapter plan, local law municipality, local law special fire

177

control district, or local law plan under this chapter:

178

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

179

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

180

Ethics in ss. 112.311-112.3187, may:

181

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

182

pension trust fund in annuity and life insurance contracts of

183

life insurance companies in amounts sufficient to provide, in

184

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

185

in the firefighters' pension trust fund are shall be entitled

186

under the provisions of this chapter and pay the initial and

187

subsequent premiums thereon.

188

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

189

pension trust fund in:

190

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

191

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

192

and loan association insured by the Savings Association Insurance

193

Fund which is administered by the Federal Deposit Insurance

194

Corporation, or a state or federal chartered credit union whose

195

share accounts are insured by the National Credit Union Share

196

Insurance Fund.

197

     2.  Obligations of the United States or obligations

198

guaranteed as to principal and interest by the government of the

199

United States.

200

     3.  Bonds issued by the State of Israel.

201

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

202

or guaranteed by a corporation organized under the laws of the

203

United States, any state or organized territory of the United

204

States, or the District of Columbia, provided:

205

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

206

recognized national stock exchanges or on the National Market

207

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

208

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

209

major rating service; and

210

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

211

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

212

one issuing company, nor shall the aggregate investment in any

213

one issuing company exceed 5 percent of the outstanding capital

214

stock of that company or the aggregate of its investments under

215

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

216

fund.

217

218

This paragraph applies shall apply to all boards of trustees and

219

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

220

special fire control district has a duly enacted pension plan

221

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

222

of such plan thereof desire to vary the investment procedures

223

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

224

investment procedures as outlined herein only through a municipal

225

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

226

governing body of the special fire control district; where a

227

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

228

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

229

such municipality is shall not be required to comply with the

230

aggregate equity investment provisions of this paragraph.

231

Notwithstanding any other provision of law to the contrary,

232

nothing in this section may be construed to take away any

233

preexisting legal authority to make equity investments that

234

exceed the requirements of this paragraph. The board of trustees

235

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

236

securities.

237

     (c)  Issue drafts upon the firefighters' pension trust fund

238

pursuant to this chapter act and rules and regulations prescribed

239

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

240

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

241

individuals designated by the board who are subject to the same

242

fiduciary standards required for the board of trustees under this

243

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

244

drafts are drawn. The treasurer or depository of each

245

municipality or special fire control district shall retain such

246

drafts when paid, as permanent vouchers for disbursements made,

247

and no money shall be otherwise drawn from the fund.

248

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

249

     (e)  Keep a complete record of all receipts and

250

disbursements and of the board's acts and proceedings.

251

     Section 4.  Subsection (1) of section 175.101, Florida

252

Statutes, is amended to read:

253

     175.101  State excise tax on property insurance premiums

254

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

255

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

256

special fire control district, or local law plan under this

257

chapter:

258

     (1)  Each municipality or special fire control district in

259

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

260

lawfully established firefighters' pension trust fund or

261

municipal fund or special fire control district fund, by whatever

262

name known, providing pension benefits to firefighters as

263

provided under this chapter, may assess and impose on every

264

insurance company, corporation, or other insurer now engaged in

265

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

266

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

267

the Office of Insurance Regulation of the Financial Services

268

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

269

excise tax now levied by each of the municipalities or special

270

fire control districts, respectively, amounting to 1.85 percent

271

of the gross amount of receipts of premiums from policyholders on

272

all premiums collected on property insurance policies covering

273

property within the corporate limits of such municipalities or

274

within the legally defined boundaries of special fire control

275

districts, respectively. Whenever the boundaries of a special

276

fire control district that has lawfully established a

277

firefighters' pension trust fund encompass a portion of the

278

corporate territory of a municipality that has also lawfully

279

established a firefighters' pension trust fund, that portion of

280

the tax receipts attributable to insurance policies covering

281

property situated both within the municipality and the special

282

fire control district shall be given to the fire service

283

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

284

special fire control district are deemed to include an area that

285

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

286

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

287

when a special fire control district is providing services

288

pursuant to an interlocal agreement executed pursuant to s.

289

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

290

the property owner's application for insurance. Remaining

291

revenues collected pursuant to this chapter shall be distributed

292

to the municipality or special fire control district according to

293

the location of the insured property.

294

295

This section also applies to any municipality consisting of a

296

single consolidated government which is made up of a former

297

county and one or more municipalities, consolidated pursuant to

298

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

299

Constitution, and to property insurance policies covering

300

property within the boundaries of the consolidated government,

301

regardless of whether the properties are located within one or

302

more separately incorporated areas within the consolidated

303

government, provided the properties are being provided fire

304

protection services by the consolidated government. This section

305

also applies to any municipality, as provided in s.

306

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

307

receive fire protection services from another municipality

308

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

309

all premiums collected on property insurance policies covering

310

property located within the corporate limits of the municipality

311

receiving the fire protection services, but is will be available

312

for distribution to the municipality providing the fire

313

protection services.

314

     Section 5.  Paragraph (c) of subsection (1) of section

315

175.171, Florida Statutes, is amended to read:

316

     175.171  Optional forms of retirement income.--For any

317

municipality, special fire control district, chapter plan, local

318

law municipality, local law special fire control district, or

319

local law plan under this chapter:

320

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

321

payable in the event of normal or early retirement as specified

322

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

323

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

324

may elect to receive a retirement income or benefit of equivalent

325

actuarial value payable in accordance with one of the following

326

options:

327

     (c)  Such other amount and form of retirement payments or

328

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

329

meet the circumstances of the retiring firefighter.

330

     1.  The firefighter upon electing any option of this section

331

shall will designate the joint annuitant pensioner or beneficiary

332

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

333

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

334

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

335

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

336

approval by the board of trustees. Such designation must will

337

name a joint annuitant pensioner or one or more primary

338

beneficiaries where applicable. If a firefighter has elected an

339

option with a joint annuitant pensioner or beneficiary and his or

340

her retirement income benefits have commenced, the firefighter

341

may thereafter change the designated joint annuitant pensioner or

342

beneficiary, but only if the board of trustees consents to such

343

change and if the joint annuitant pensioner last previously

344

designated by the firefighter is alive when the firefighter files

345

with the board of trustees a request for such change.

346

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

347

or beneficiary to any such change is shall not be required.

348

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

349

good health of the joint annuitant pensioner that is being

350

removed as it may require and the amount of the retirement income

351

payable to the firefighter upon designation of a new joint

352

annuitant pensioner shall be actuarially redetermined taking into

353

account the age and sex of the former joint annuitant pensioner,

354

the new joint annuitant pensioner, and the firefighter. Each such

355

designation must will be made in writing on a form prepared by

356

the board of trustees and on completion must will be filed with

357

the board of trustees. If In the event that no designated

358

beneficiary survives the firefighter, such benefits as are

359

payable in the event of the death of the firefighter subsequent

360

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

361

     4. Notwithstanding the provisions of this paragraph, a

362

retired firefighter may change his or her designation of joint

363

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

364

175.333 without the approval of the board of trustees or the

365

prior joint annuitant or beneficiary. The retiree does not have

366

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

367

the beneficiary being removed, and the joint annuitant or

368

beneficiary does not have to be living.

369

     Section 6.  Section 175.361, Florida Statutes, is amended to

370

read:

371

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

372

any municipality, special fire control district, chapter plan,

373

local law municipality, local law special fire control district,

374

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

375

by the municipality or special fire control district. Upon

376

termination of the plan by the municipality or special fire

377

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

378

or consolidation of governmental units, services, or functions as

379

provided in chapter 121, or upon written notice by the

380

municipality or special fire control district to the board of

381

trustees that contributions under the plan are being permanently

382

discontinued, the rights of all employees to benefits accrued to

383

the date of such termination and the amounts credited to the

384

employees' accounts are nonforfeitable. The fund shall be

385

apportioned and distributed in accordance with the following

386

procedures:

387

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

388

distribution and the asset value required to fund all the

389

nonforfeitable benefits to be distributed, after taking into

390

account the expenses of such distribution. The board shall inform

391

the municipality or special fire control district if additional

392

assets are required, in which event the municipality or special

393

fire control district must continue to financially support the

394

plan until all nonforfeitable benefits have been funded.

395

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

396

distribution of the asset value, that is, whether distribution

397

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

398

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

399

otherwise, for each firefighter entitled to benefits under the

400

plan as specified in subsection (3).

401

     (3) The board of trustees shall distribute apportion the

402

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

403

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

404

provide any given retirement income means shall mean the

405

actuarially computed single-sum value of such retirement income,

406

except that if the method of distribution determined under

407

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

408

amount required to provide the given retirement income means

409

shall mean the single premium payable for such annuity. The

410

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

411

accumulated contributions to the plan, with interest if provided

412

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

413

to the employee.

414

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

415

retired firefighter receiving a retirement income hereunder on

416

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

417

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

418

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

419

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

420

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

421

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

422

shall be proportionately reduced so that the aggregate of such

423

reduced amounts will be equal to such asset value.

424

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

425

apportionment under paragraph (a), apportionment shall next be

426

made in respect of each firefighter in the service of the

427

municipality or special fire control district on such date who

428

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

429

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

430

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

431

amount required to provide the actuarial equivalent of the

432

accrued normal retirement income, based on the firefighter's

433

credited service and earnings to such date, and each former

434

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

435

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

436

retirement date, in the amount required to provide the actuarial

437

equivalent of the accrued normal retirement income to which he or

438

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

439

remaining asset value is less than the aggregate of the amounts

440

apportioned hereunder, such latter amounts shall be

441

proportionately reduced so that the aggregate of such reduced

442

amounts will be equal to such remaining asset value.

443

     (c) If there is any asset value after the apportionments

444

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

445

in respect of each firefighter in the service of the municipality

446

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

447

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

448

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

449

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

450

is less than the aggregate of the amounts apportioned hereunder,

451

such latter amounts shall be proportionately reduced so that the

452

aggregate of such reduced amounts will be equal to such remaining

453

asset value.

454

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

455

after the full distribution apportionment specified in subsection

456

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

457

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

458

returned to the municipality or special fire control district,

459

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

460

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

461

the municipality or special fire control district and the state

462

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

463

proportionately to the total contributions made by the

464

municipality or special fire control district and the state.

465

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

466

accordance with the manner of distribution determined under

467

subsection (2), the amounts determined apportioned under

468

subsection (3).

469

470

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

471

terminated or the date on which the board received written notice

472

that the contributions thereunder were being permanently

473

discontinued, the municipality or special fire control district

474

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

475

affected has not complied with all the provisions in this

476

section, the Department of Management Services division shall

477

effect the termination of the fund in accordance with this

478

section.

479

     Section 7.  Paragraph (c) of subsection (5) of section

480

185.02, Florida Statutes, is amended to read:

481

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

482

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

483

following words and phrases as used in this chapter shall have

484

the following meanings, unless a different meaning is plainly

485

required by the context:

486

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

487

aggregate number of years of service and fractional parts of

488

years of service of any police officer, omitting intervening

489

years and fractional parts of years when such police officer may

490

not have been employed by the municipality subject to the

491

following conditions:

492

     (c)  Credited service under this chapter shall be provided

493

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

494

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

495

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

496

ordinance, provide for the purchase of credit for military

497

service occurring prior to employment as well as prior service as

498

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

499

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

500

service as a police officer. For purposes of determining credit

501

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

502

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

503

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

504

recognized by the Criminal Justice Standards and Training

505

Commission within the Department of Law Enforcement as provided

506

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

507

board of trustees that such service is equivalent to the

508

definition of police officer under subsection (11).

509

     Section 8.  Paragraph (a) of subsection (1) and subsection

510

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

511

     185.05  Board of trustees; members; terms of office;

512

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

513

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

514

plan under this chapter:

515

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

516

hereby created a board of trustees of the municipal police

517

officers' retirement trust fund, which shall be solely

518

responsible for administering the trust fund. Effective October

519

1, 1986, and thereafter:

520

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

521

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

522

otherwise prohibited by law, shall be legal residents of the

523

municipality and, who shall be appointed by the legislative body

524

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

525

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

526

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

527

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

528

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

529

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

530

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

531

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

532

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

533

legislative body of the municipality shall, as a ministerial

534

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

535

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

536

the other four members appointed or elected as herein provided,

537

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

538

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

539

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

540

legislative body at whose pleasure the member shall serve, and

541

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

542

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

543

or she sooner leaves the employment of the municipality as a

544

police officer, whereupon the legislative body of the

545

municipality shall choose a successor shall be chosen in the same

546

manner as an original appointment. Each police officer may

547

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

548

appointed and elected members of the board may be amended by

549

municipal ordinance or special act of the Legislature to extend

550

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

551

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

552

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

553

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

554

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

555

administrator to withhold from the monthly retirement payment

556

those funds that are necessary to pay for the benefits being

557

received through the governmental entity from which the employee

558

retired, to pay the certified bargaining agent of the

559

governmental entity, and to make any payments for child support

560

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

561

request of the retiree of the plan, authorize the plan

562

administrator to withhold from the retirement payment those funds

563

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

564

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

565

and dependents. A retirement plan does not incur any liability

566

for participation in this permissive program if its actions are

567

taken in good faith.

568

     Section 9.  Subsection (1) of section 185.06, Florida

569

Statutes, is amended to read:

570

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

571

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

572

law plan under this chapter:

573

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

574

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

575

Ethics in ss. 112.311-112.3187, may:

576

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

577

fund in annuity and life insurance contracts of life insurance

578

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

579

the benefits to which all of the participants in the municipal

580

police officers' retirement trust fund are shall be entitled

581

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

582

subsequent premiums thereon.

583

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

584

fund in:

585

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

586

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

587

association insured by the Savings Association Insurance Fund

588

which is administered by the Federal Deposit Insurance

589

Corporation, or a state or federal chartered credit union whose

590

share accounts are insured by the National Credit Union Share

591

Insurance Fund.

592

     2.  Obligations of the United States or obligations

593

guaranteed as to principal and interest by the United States.

594

     3.  Bonds issued by the State of Israel.

595

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

596

or guaranteed by a corporation organized under the laws of the

597

United States, any state or organized territory of the United

598

States, or the District of Columbia, provided:

599

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

600

recognized national stock exchanges or on the National Market

601

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

602

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

603

major rating service; and

604

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

605

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

606

one issuing company, nor shall the aggregate investment in any

607

one issuing company exceed 5 percent of the outstanding capital

608

stock of the company or the aggregate of its investments under

609

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

610

611

This paragraph applies shall apply to all boards of trustees and

612

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

613

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

614

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

615

investment procedures herein, the trustees of such plan shall

616

request a variance of the investment procedures as outlined

617

herein only through a municipal ordinance or special act of the

618

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

619

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

620

equity investment, such municipality is shall not be required to

621

comply with the aggregate equity investment provisions of this

622

paragraph. Notwithstanding any other provision of law to the

623

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

624

any preexisting legal authority to make equity investments that

625

exceed the requirements of this paragraph. The board of trustees

626

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

627

securities.

628

     (c)  Issue drafts upon the municipal police officers'

629

retirement trust fund pursuant to this chapter act and rules and

630

regulations prescribed by the board of trustees. All such drafts

631

shall be consecutively numbered, be signed by the chair and

632

secretary or by two individuals designated by the board who are

633

subject to the same fiduciary standards required for the board of

634

trustees under this subsection, and state upon their faces the

635

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

636

other depository shall retain such drafts when paid, as permanent

637

vouchers for disbursements made, and no money shall otherwise be

638

drawn from the fund.

639

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

640

rules and regulations and pursuant to the provisions of this

641

chapter act.

642

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

643

     (f)  Keep a complete record of all receipts and

644

disbursements and of the board's acts and proceedings.

645

     Section 10.  Subsection (1) of section 185.161, Florida

646

Statutes, is amended to read:

647

     185.161  Optional forms of retirement income.--For any

648

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

649

plan under this chapter:

650

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

651

payable in the event of normal or early retirement as specified

652

in s. 185.16, a police officer, upon written request to the board

653

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

654

may elect to receive a retirement income or benefit of equivalent

655

actuarial value payable in accordance with one of the following

656

options:

657

     1.  A retirement income of larger monthly amount, payable to

658

the police officer for his or her lifetime only.

659

     2.  A retirement income of a modified monthly amount,

660

payable to the police officer during the joint lifetime of the

661

police officer and a joint annuitant pensioner designated by the

662

police officer, and following the death of either of them, 100

663

percent, 75 percent, 66 2/3 percent, or 50 percent of such

664

monthly amount payable to the survivor for the lifetime of the

665

survivor.

666

     3.  Such other amount and form of retirement payments or

667

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

668

meet the circumstances of the retiring police officer.

669

     (b)  The police officer upon electing any option of this

670

section shall will designate the joint annuitant pensioner or

671

beneficiary (or beneficiaries) to receive the benefit, if any,

672

payable under the plan in the event of the police officer's

673

death, and may will have the power to change such designation

674

from time to time but any such change shall be deemed a new

675

election and is will be subject to approval by the pension

676

committee. Such designation must will name a joint annuitant

677

pensioner or one or more primary beneficiaries where applicable.

678

If a police officer has elected an option with a joint annuitant

679

pensioner or beneficiary and his or her retirement income

680

benefits have commenced, he or she may thereafter change the

681

designated joint annuitant pensioner or beneficiary but only if

682

the board of trustees consents to such change and if the joint

683

annuitant pensioner last previously designated by the police

684

officer is alive when he or she files with the board of trustees

685

a request for such change. The consent of a police officer's

686

joint annuitant pensioner or beneficiary to any such change is

687

shall not be required. The board of trustees may request such

688

evidence of the good health of the joint annuitant pensioner that

689

is being removed as it may require and the amount of the

690

retirement income payable to the police officer upon the

691

designation of a new joint annuitant pensioner shall be

692

actuarially redetermined taking into account the ages and sex of

693

the former joint annuitant pensioner, the new joint annuitant

694

pensioner, and the police officer. Each such designation must

695

will be made in writing on a form prepared by the board of

696

trustees, and on completion must will be filed with the board of

697

trustees. If In the event that no designated beneficiary survives

698

the police officer, such benefits as are payable in the event of

699

the death of the police officer subsequent to his or her

700

retirement shall be paid as provided in s. 185.162.

701

     (c) Notwithstanding paragraph (b), the retired police

702

officer may change his or her designation of joint annuitant or

703

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

704

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

705

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

706

health of the joint annuitant or of the beneficiary being

707

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

708

be living.

709

     Section 11.  Section 185.37, Florida Statutes, is amended to

710

read:

711

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

712

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

713

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

714

municipality. Upon termination of the plan by the municipality

715

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

716

consolidation of governmental units, services, or functions as

717

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

718

trustees by the municipality that contributions under the plan

719

are being permanently discontinued, the rights of all employees

720

to benefits accrued to the date of such termination or

721

discontinuance and the amounts credited to the employees'

722

accounts are nonforfeitable. The fund shall be apportioned and

723

distributed in accordance with the following procedures:

724

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

725

distribution and the asset value required to fund all the

726

nonforfeitable benefits to be distributed, after taking into

727

account the expenses of such distribution. The board shall inform

728

the municipality if additional assets are required, in which

729

event the municipality must continue to financially support the

730

plan until all nonforfeitable benefits have been funded.

731

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

732

distribution of the asset value, that is, whether distribution

733

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

734

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

735

otherwise, for each police officer entitled to benefits under the

736

plan, as specified in subsection (3).

737

     (3) The board of trustees shall distribute apportion the

738

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

739

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

740

provide any given retirement income means shall mean the

741

actuarially computed single-sum value of such retirement income,

742

except that if the method of distribution determined under

743

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

744

amount required to provide the given retirement income means

745

shall mean the single premium payable for such annuity. The

746

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

747

accumulated contributions to the plan, with interest if provided

748

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

749

to the employee.

750

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

751

retired police officer receiving a retirement income hereunder on

752

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

753

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

754

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

755

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

756

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

757

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

758

shall be proportionately reduced so that the aggregate of such

759

reduced amounts will be equal to such asset value.

760

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

761

apportionment under paragraph (a), apportionment shall next be

762

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

763

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

764

credited service, in the municipal police officers' retirement

765

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

766

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

767

provide the actuarial equivalent of the accrued normal retirement

768

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

769

earnings to such date, and each former participant then entitled

770

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

771

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

772

amount required to provide the actuarial equivalent of the

773

accrued normal retirement income to which he or she is entitled

774

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

775

less than the aggregate of the amounts apportioned hereunder,

776

such latter amounts shall be proportionately reduced so that the

777

aggregate of such reduced amounts will be equal to such remaining

778

asset value.

779

     (c) If there is an asset value after the apportionments

780

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

781

in respect of each police officer in the service of the

782

municipality on such date who is not entitled to an apportionment

783

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

784

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

785

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

786

aggregate of the amounts apportioned hereunder, such latter

787

amounts shall be proportionately reduced so that the aggregate of

788

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

789

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

790

after the full distribution apportionment specified in subsection

791

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

792

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

793

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

794

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

795

the total contributions made by the municipality and the state to

796

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

797

proportionately to the total contributions made by the

798

municipality and the state.

799

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

800

accordance with the manner of distribution determined under

801

subsection (2), the amounts determined apportioned under

802

subsection (3).

803

804

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

805

terminated or the date on which the board received written notice

806

that the contributions thereunder were being permanently

807

discontinued, the municipality or the board of trustees of the

808

municipal police officers' retirement trust fund affected has not

809

complied with all the provisions in this section, the Department

810

of Management Services division shall effect the termination of

811

the fund in accordance with this section.

812

     Section 12.  This act shall take effect July 1, 2008.