HB 1373

1	A bill to be entitled
2	An act relating to the City of Tampa, Hillsborough County;
3	amending chapter 23559, Laws of Florida, 1945, as amended,
4	the General Employees' Pension Plan for the City of Tampa;
5	revising definitions for "Salaries or Wages," "Employee,"
6	and "Military Service Time"; providing a definition for
7	"Limitation Year"; providing that all employee
8	contributions to the pension fund are mandatory and that
9	the city shall pay such contributions to the fund on
10	behalf of the employee; providing non-spouse beneficiaries
11	an option to rollover death benefits; providing for refund
12	of employee contributions; revising construction of the
13	act; revising benefit limits; revising requirements for
14	distribution of benefits; providing a default distribution
15	when a member fails to elect a distribution option;
16	revising direct rollover options; providing an effective
17	date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Subsections (A), (E), and (H) of section 4,
22	subsection (A) of section 5, section 19, subsections (A), (B),
23	and (F) of section 24, and sections 25 and 26 of chapter 23559,
24	Laws of Florida, 1945, as amended, are amended, and subsection
25	(S) is added to section 4, subsection (C) is added to section
26	12, and subsection (C) is added to section 14 of that chapter,
27	to read:
28	Section 4.  Definitions.
29	(A)  Salaries or Wages. Salaries or Wages for the purpose
30	of this act shall be the base amounts earned by the Employee,
31	plus regular longevity bonuses, overtime, and shift premiums.
32	Salary or Wages shall also include elective amounts that are
33	excludible from the Employee's gross income under Section 125
34	(cafeteria plan) amounts that are not available to the Employee
35	in cash in lieu of group health coverage because the Employee is
36	unable to certify that he or she has other health coverage. Such
37	deemed Section 125 compensation will be treated as an amount
38	under Section 125 of the Code only if the Employer does not
39	request or collect information regarding the Employees' other
40	health coverage as part of the enrollment for the health plan;
41	403(b) (tax-sheltered annuity); 457 (Section 457 plan); and,
42	effective for Plan Years beginning on and after January 1, 2001,
43	132(f)(4) (qualified transportation fringe benefit plan) of the
44	Internal Revenue Code of 1986, and the regulations thereunder as
45	amended (the "Code"). Salaries or Wages shall exclude: , but
46	exclusive of other premiums, other than shift premiums,
47	allowances, or special payments, or any casual nonrecurring or
48	unpredictable bonuses; payments for unused accrued bona fide
49	sick, vacation, or other leave; payments received by an Employee
50	pursuant to a nonqualified unfunded deferred salary or wages
51	plan; and severance pay that is paid after an Employee severs
52	employment with the City. However, Salaries or Wages, as defined
53	herein, earned but not paid to the Employee by the Employee's
54	severance date with the City shall be considered Salary or Wages
55	for Plan purposes. In addition to other applicable limitations
56	set forth in the Plan, and notwithstanding any other provision
57	of the Plan to the contrary, for Plan Years beginning on or
58	after January 1, 1996, the annual Salaries or Wages of each
59	Employee taken into account under the Plan shall not exceed the
60	annual compensation limit provided for in Section 401(a)(17) of
61	the Code the Omnibus Budget Reconciliation Act of 1993 (the
62	"OBRA 1993 Annual Compensation Limit"). The OBRA 1993 Annual
63	Compensation Limit is $150,000, as adjusted by the Commissioner
64	of the Internal Revenue Service for increases in the cost-of-
65	living in accordance with Section 401(a)(17)(B) of the Internal
66	Revenue Code of 1986, as amended (the "Code"). The cost-of-
67	living adjustment in effect for a calendar year applies to any
68	period, not exceeding 12 months, over which Salaries or Wages
69	are determined (determination period) beginning in such calendar
70	year. If a determination period consists of fewer than 12
71	months, the annual compensation the OBRA 1993 Annual
72	Compensation limit will be multiplied by a fraction, the
73	numerator of which is the number of months in the determination
74	period, and the denominator of which is 12. For Plan Years
75	beginning on or after January 1, 1996, any reference in this
76	Plan to the limitation under Section 401(a)(17) of the Code
77	shall mean the OBRA 1993 Annual Compensation Limit set forth in
78	this provision. The limitation on Salaries or Wages for an
79	"eligible Employee" shall not be less than the amount which was
80	allowed to be taken into account hereunder as in effect on July
81	1, 1993. "Eligible Employee" is an individual who was a
82	participant in the Plan before the first Plan Year beginning
83	after December 31, 1995. Commencing for earnings paid the first
84	pay date after October 1, 2005, all mandatory Employee
85	Contributions to the Fund shall be picked up and paid by the
86	City. Such contributions, although designated as Employee
87	Contributions, shall be paid by the City in lieu of
88	contributions by the Employee. The contributions so assumed
89	shall be treated as tax-deferred Employer "pickup" contributions
90	pursuant to Section 414(h) of the Internal Revenue Code. Members
91	shall not have the option of receiving the contributed amounts
92	directly instead of having such contributions paid by the City
93	to the Fund.
94	(E)  Employee. For the purposes of this Act, "employee"
95	shall mean an employee covered or qualified to be covered under
96	either Division A or Division B of this Plan. An employee
97	covered by this Plan shall include all employees whether full
98	time, part-time or temporary, who have taken the physical
99	examination required by Section 18. Employees whose Salaries or
100	Wages are paid pursuant to a federal grant-in-aid program are
101	included in this Act only when the federal government pays the
102	employer's contribution. Casual laborers are excluded from this
103	definition as are employees covered by other City pension plans.
104	Any individual who is an independent contractor, or who performs
105	services for the City under an agreement that identifies the
106	individual as an independent contractor, is excluded from the
107	Plan even if a governmental agency retroactively reclassifies
108	such individual as an Employee.
109	(H)  Military Service Time. For Members rehired after leave
110	to provide military service prior to December 12, 1994, in
111	computing Service allowance for retirement, creditable Service
112	shall, at the option of the Employee, include any service which
113	interrupted employment with the Employer, not to exceed a period
114	of 3 years, in any of the armed services of the United States
115	during time of war, upon condition that within 90 days from the
116	date of reinstatement of such Employee now or hereafter serving
117	in the armed forces, or within 90 days from the effective date
118	of this act for those Employees already reinstated, such
119	Employee shall exercise such option by filing written notice
120	thereof with the Board of Trustees and, if a Division A
121	employee, shall within the 12 ensuing months pay into the
122	retirement fund an amount equal to the aggregate contributions
123	such Employee would have made had such Employee not served in
124	the armed forces, based upon the Salary or Wages being earned at
125	the time of entering the armed services, and if any such
126	Employee shall fail to exercise such option within the time and
127	in the manner hereinabove prescribed, such period of military
128	service shall not thereafter be allowed as creditable Service,
129	but shall not be deemed a break in such Employee's Continuous
130	Service eligibility period. Members rehired on or after December
131	12, 1994, Notwithstanding the foregoing, an Employee shall be
132	credited with service for purposes of vesting and benefit
133	accrual under the Plan for his or her service in the uniformed
134	service (as defined in the Uniformed Services Employment and
135	Reemployment Rights Act of 1994 (the "USERR Act") upon being
136	granted leave by the Employer for such uniformed service and
137	termination from employment as an Employee with the Employer,
138	provided that the Employee must return to his or her employment
139	as an Employee with the Employer within the time periods
140	prescribed by the USERR Act; and the Employee complies with the
141	Employee contribution requirements prescribed by the USERR Act.
142	The maximum service credit for uniformed service shall be 5
143	years or such other time period as may be prescribed by the
144	USERR Act. Effective as of the dates reflected in the Heroes
145	Earnings Assistance and Relief Tax Act ("HEART Act"), the Plan
146	shall comply with all applicable provisions of the HEART Act.
147	(S)  Limitation Year. The limitation year shall be the Plan
148	Year.
149	Section 5.  Contributions. The Pension Fund shall consist
150	of moneys derived from the following sources:
151	(A)  Employee Contributions. Division A Employees.
152	Commencing for earnings paid, beginning with the first pay date
153	after January 1, 2006, all Employee contributions to the Fund
154	shall be mandatory employee contributions and shall be picked up
155	and paid by the City on behalf of the Member. Such contributions
156	There shall be made by Employees in an amount equal to a
157	contribution of 7 percent of all Salaries or Wages of all
158	Employees participating in this Fund, which shall be deducted
159	from said Salaries or Wages by the Director of Finance, before
160	the same are paid, as long as the Employee continues in the
161	Service of the City of Tampa, regardless of the number of years
162	of Service with the City. Such contributions, although
163	designated as Employee contributions, will be paid by the City
164	in lieu of contributions by the Employee. The contributions so
165	assumed shall be treated as tax-deferred Employer "pick-up"
166	contributions pursuant to Section 414(h) of the Code. Members
167	shall not have the option of receiving the contributed amounts
168	directly instead of having such contributions paid by the City
169	to the Fund.
170	Section 12.  Death Benefits.
171	(C)  In accordance with Section 402(c)(11)(A) of the Code,
172	for distributions made after December 31, 2006, any non-spouse
173	beneficiary, as defined in Section 401(a)(9)(E) of the Code,
174	from Division A or Division B shall have the option to rollover
175	all or a portion of his or her death benefit via a direct
176	trustee-to-trustee transfer to an inherited individual
177	retirement account, as defined in Section 408(d)(3)(c) of the
178	Code, provided such distribution meets the definition of an
179	eligible rollover distribution as defined in Section 26 of this
180	Act.
181	Section 14.  Refund of Contributions Contribution.
182	(C)  Refund of Employee contributions shall be paid in
183	accordance with Section 26 of this Act.
184	Section 19.  Construction. This Act shall be liberally
185	construed in accordance with general law and the federal tax
186	code, and if any part or portion thereof be declared invalid, or
187	the application thereof to any person, circumstance or thing is
188	declared invalid, the validity of the remainder of this Act
189	shall not be affected thereby.
190	Section 24.  Limitations on Amounts of Benefits.
191	(A)  For Plan Years ending after December 31, 2001,
192	benefits for an Employee under this Plan, when expressed as a
193	benefit payable annually in the form of a straight life annuity
194	without regard to the death benefit or any other ancillary
195	benefit, shall not at any time within the limitation year exceed
196	the limits provided under Section 415(b) of the Code $90,000.
197	(B)1.  The $90,000 limitation set forth in subsection (A)
198	shall be actuarially reduced in accordance with regulations
199	prescribed by the Secretary of the Treasury for any retirement
200	benefit that may begin before an Employee attains age 62, by
201	adjusting such benefit so that it is equivalent to such a
202	benefit beginning at age 62. For Plan Years ending before
203	January 1, 2002, and repealed for Plan Years ending thereafter,
204	the reduction shall not reduce the $90,000 limitation set forth
205	in subsection (A) to less than (a) $75,000 if the benefit begins
206	at or after age 55, or (b) if the benefit begins before age 55,
207	the equivalent of the $75,000 limitation for age 55.
208	2.  If any retirement benefit begins after the Employee
209	attains age 65, the $90,000 limitation set forth in subsection
210	(A) shall be adjusted (based upon an interest rate assumption of
211	5 percent) in accordance with regulations prescribed by the
212	Secretary of the Treasury, by adjusting such benefit so that it
213	is equivalent to such benefit beginning at age 65.
214	(F)  The following is repealed for Plan Limitation Years
215	beginning after December 31, 1999:
216	1.  In the event that any Employee participates in both a
217	defined benefit plan and a defined contribution plan maintained
218	by the City, then the sum of the Defined Benefit Plan Fraction
219	(as defined in Section 415(e) of the Code) and the Defined
220	Contribution Plan Fraction (as defined in Section 415(e) of the
221	Code) for any limitation year shall not exceed 1.0.
222	2.  In the event that the sum of the Defined Benefit Plan
223	Fraction and the Defined Contribution Plan Fraction exceeds 1.0,
224	then the Board of Trustees shall take such actions, applied in a
225	uniform and nondiscriminatory manner, as will keep the benefits
226	and annual additions thereto for such Employees from exceeding
227	these limits. Adjustments shall be made to this Plan before any
228	adjustments shall be required to any other plans.
229	Section 25.  Latest Date of Commencement of Benefits
230	Required Distributions.
231	(A)  The distribution of a member's benefit shall be made
232	in accordance with the following requirements, and shall
233	otherwise comply with Section 401(a)(9) of the Code and the
234	Regulations thereunder, as prescribed by the Commissioner in
235	Revenue Rulings, Notices, and other guidance published in the
236	Internal Revenue Bulletin, to the extent that said provisions
237	apply to governmental plans under Section 414(d) of the Code.
238	The distribution provisions of Section 401(a)(9) of the Code
239	shall override any distribution options in the Plan inconsistent
240	with Section 401(a)(9) of the Code:
241	1.  Any benefit paid to a member an Employee shall commence
242	not later than the last to occur of:
243	(a)1.  April 1 of the year following the calendar year in
244	which the member Employee retires; or
245	(b)2.  April 1 of the year immediately following the
246	calendar year in which the member Employee reaches age 70 1/2.
247	2.  Distributions of members' benefits will be made in
248	accordance with Sections 1.401(a)(9)-2. through 1.401(a)(9)-9.
249	of the Code and such other rules thereunder as may be prescribed
250	by the Secretary of the Treasury, to the extent that said
251	provisions apply to governmental plans under Section 414(d) of
252	the Code.
253	(B)  In the case of a benefit payable by reason of an
254	Employee's retirement or other termination of employment, in no
255	event shall payment extend beyond the life or life expectancy of
256	the Employee or the joint lives or life expectancies of the
257	Employee and the Employee's designated beneficiary. In the case
258	of an Employee who is receiving his or her pension benefit as of
259	the date of his or her death, the survivor portion of the
260	Employee's pension benefit shall be paid at least as rapidly as
261	under the method being used prior to the Employee's death.
262	3.(C)  Notwithstanding anything contained herein to the
263	contrary, payments under the Plan to a Beneficiary due to a
264	member's death shall satisfy the incidental death benefit
265	requirements and all other applicable provisions of Section
266	401(a)(9)(G) 401(a)(9) of the Code, the regulations issued
267	thereunder (including Section 1.401(a)(9)-2 of the proposed
268	Treasury regulations), and such other rules thereunder as may be
269	prescribed by the Secretary of the Treasury, including IRS
270	Notice 2007-7, to the extent that said provisions apply to
271	governmental plans under Section 414(d) of the Code.
272	Section 26.  Direct Rollovers.
273	(A)  This section applies to distributions made on or after
274	January 1, 1993. Notwithstanding any provision of the Plan to
275	the contrary that would otherwise limit a distributee's (as
276	defined below) election under this section, a distributee may
277	elect, at the time and in the manner prescribed by the
278	Commissioner of the Internal Revenue Service, to have any
279	portion of an eligible rollover distribution (as defined below)
280	paid directly to an eligible retirement plan (as defined below)
281	specified by the distributee in a direct rollover (as defined
282	below). If a member fails to elect a distribution option as
283	provided under Sections 14 and 22 of this Act, then such
284	member's benefit shall be rolled over to an individual
285	retirement account designated by the Board of Trustees, as
286	defined in Section 6.
287	(B)  For purposes of this section, the following terms
288	shall have the following meanings:
289	1.  An "eligible rollover distribution" is any distribution
290	of all or any portion of the balance to the credit of the
291	distributee, except that an eligible rollover distribution does
292	not include: any distribution that is one of a series of
293	substantially equal periodic payments (not less frequently than
294	annually) made for the life (or life expectancy) of the
295	distributee or the joint lives (or joint life expectancies) of
296	the distributee and the distributee's designated beneficiary, or
297	for a specified period of 10 years or more; any distribution to
298	the extent such distribution is required under Section 401(a)(9)
299	of the Code, and the portion of any distribution that is not
300	includable in gross income (determined without regard to the
301	exclusion for net unrealized appreciation with respect to
302	employer securities). Notwithstanding the above, a portion of a
303	distribution shall not fail to be an "eligible rollover
304	distribution" merely because the portion consists of after-tax
305	voluntary Employee contributions that are not includable in
306	gross income. However, such portion may be transferred only to
307	an individual retirement account or annuity described in Section
308	408(a) or (b) of the Code or to a qualified defined contribution
309	plan described in Section 401(a) or 403(a) of the Code that
310	agrees to separately account for amounts transferred, including
311	separately accounting for the portion of such distribution that
312	is includable in gross income and the portion of such
313	distribution that is not so includable.
314	2.  An "eligible retirement rollover plan" is an individual
315	retirement account described in Section 408(a) of the Code, an
316	individual retirement annuity described in Section 408(b) of the
317	Code, other than an endowment contract, or an annuity plan
318	described in Section 403(a) of the Code, a qualified trust (an
319	employees' trust) described in Section 401(a) of the Code that
320	is exempt from tax under Section 501(a) of the Code, an annuity
321	plan described in Section 403(a) of the Code, an eligible plan
322	under Section 457(b) of the Code that is maintained by a state,
323	a political subdivision of a state, or any agency or
324	instrumentality of a state or political subdivision and that
325	agrees to separately account for amounts transferred into such
326	plan from this Plan, and an annuity contract described in
327	Section 403(b) of the Code that accepts the distributee's
328	eligible rollover distribution. However, in the case of an
329	eligible rollover distribution to the surviving spouse, an
330	eligible retirement plan is an individual retirement account or
331	individual retirement annuity.
332	3.  A "distributee" includes the member or former member an
333	Employee or former employee. In addition, the member's
334	Employee's or former member's employee's surviving spouse and
335	the member's Employee's or former member's employee's spouse or
336	former spouse who is the alternate payee under a qualified
337	domestic relations order, as defined in Section 414(p) of the
338	Code, are distributees with regard to the interest of the spouse
339	or former spouse.
340	4.  A "direct rollover" is a payment by the Plan to the
341	eligible retirement plan specified by the distributee.
342	Section 2.  This act shall take effect October 1, 2009.

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