Florida Senate - 2009 SB 1572
By Senator Deutch
30-01116A-09 20091572__
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.0515,
3 F.S.; authorizing certain employees to purchase the
4 retirement credit for past service at a 3-percent
5 Special Risk Class accrual value; amending ss. 175.041
6 and 175.371, F.S.; providing for continued receipt of
7 premium taxes by plans established pursuant to chapter
8 175, F.S., after the transfer, merger, or
9 consolidation of governmental functions or the plan
10 sponsor's election to participate in another state
11 retirement system; amending ss. 185.03 and 185.38,
12 F.S.; providing for continued receipt of premium taxes
13 by plans established pursuant to ch. 185, F.S., after
14 the transfer, merger, or consolidation of governmental
15 functions or the plan sponsor's election to
16 participate in another state retirement system;
17 providing a declaration of important state interest;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (5) of section 121.0515, Florida
23 Statutes, is amended to read:
24 121.0515 Special risk membership.—
25 (5) CREDIT FOR PAST SERVICE.—A special risk member may
26 purchase retirement credit in the Special Risk Class based upon
27 past service, and may upgrade retirement credit for such past
28 service, to the extent of 3 2 percent of the member's average
29 monthly compensation as specified in s. 121.091(1)(a) for such
30 service as follows:
31 (a) The member may purchase special risk credit for past
32 service with a city or special district which has elected to
33 join the Florida Retirement System, or with a participating
34 agency to which a member's governmental unit was transferred,
35 merged, or consolidated as provided in s. 121.081(1)(f), if the
36 member was employed with the city or special district at the
37 time it commenced participating in the Florida Retirement System
38 or with the governmental unit at the time of its transfer,
39 merger, or consolidation with the participating agency. The
40 service must satisfy the criteria set forth in subsection (2)
41 for special risk membership as a law enforcement officer, a
42 firefighter, a or correctional officer, or an emergency medical
43 technician or paramedic whose employer was a licensed advanced
44 life support or basic life support provider; however, no
45 certificate or waiver of certificate of compliance with s.
46 943.1395 or s. 633.35 shall be required for such service.
47 (b) Contributions for upgrading the additional special risk
48 credit pursuant to this subsection shall be equal to the
49 difference in the contributions paid and the special risk
50 percentage rate of gross salary in effect at the time of
51 purchase for the period being claimed, plus interest thereon at
52 the rate of 4 percent a year compounded annually from the date
53 of such service until July 1, 1975, and 6.5 percent a year
54 thereafter until the date of payment. This past service may be
55 purchased by the member or by the employer on behalf of the
56 member.
57 Section 2. Subsection (3) of section 175.041, Florida
58 Statutes, is amended to read:
59 175.041 Firefighters' Pension Trust Fund created;
60 applicability of provisions.—For any municipality, special fire
61 control district, chapter plan, local law municipality, local
62 law special fire control district, or local law plan under this
63 chapter:
64 (3) The provisions of this chapter shall apply only to
65 municipalities organized and established pursuant to the laws of
66 the state and to special fire control districts, and said
67 provisions shall not apply to the unincorporated areas of any
68 county or counties except with respect to special fire control
69 districts that include unincorporated areas, nor shall the
70 provisions hereof apply to any governmental entity whose
71 firefighters are eligible to participate in the Florida
72 Retirement System, except as provided in s. 175.371(2).
73 (a) Special fire control districts that include, or consist
74 exclusively of, unincorporated areas of one or more counties may
75 levy and impose the tax and participate in the retirement
76 programs enabled by this chapter.
77 (b) With respect to the distribution of premium taxes, a
78 single consolidated government consisting of a former county and
79 one or more municipalities, consolidated pursuant to s. 3 or s.
80 6(e), Art. VIII of the State Constitution, is also eligible to
81 participate under this chapter. The consolidated government
82 shall notify the division when it has entered into an interlocal
83 agreement to provide fire services to a municipality within its
84 boundaries. The municipality may enact an ordinance levying the
85 tax as provided in s. 175.101. Upon being provided copies of the
86 interlocal agreement and the municipal ordinance levying the
87 tax, the division may distribute any premium taxes reported for
88 the municipality to the consolidated government as long as the
89 interlocal agreement is in effect.
90 (c) Any municipality that has entered into an interlocal
91 agreement to provide fire protection services to any other
92 incorporated municipality, in its entirety, for a period of 12
93 months or more may be eligible to receive the premium taxes
94 reported for such other municipality. In order to be eligible
95 for such premium taxes, the municipality providing the fire
96 services must notify the division that it has entered into an
97 interlocal agreement with another municipality. The municipality
98 receiving the fire services may enact an ordinance levying the
99 tax as provided in s. 175.101. Upon being provided copies of the
100 interlocal agreement and the municipal ordinance levying the
101 tax, the division may distribute any premium taxes reported for
102 the municipality receiving the fire services to the
103 participating municipality providing the fire services as long
104 as the interlocal agreement is in effect.
105 Section 3. Subsection (2) of section 175.371, Florida
106 Statutes, is amended to read:
107 175.371 Transfer to another state retirement system;
108 benefits payable.—For any municipality, special fire control
109 district, chapter plan, local law municipality, local law
110 special fire control district, or local law plan under this
111 chapter:
112 (2) When every active participant in any pension plan
113 created pursuant to this chapter elects to transfer to another
114 state retirement system, the pension plan created pursuant to
115 this chapter shall be terminated and the assets distributed in
116 accordance with s. 175.361. If, upon joining another state
117 retirement system as the result of a transfer, merger, or
118 consolidation of governmental services, or as the result of a
119 municipality's or special fire control district's election to
120 participate in such system, some participants in a pension plan
121 created pursuant to this chapter elect to transfer to another
122 state retirement system and other participants elect to remain
123 in the existing plan created pursuant to this chapter, the plan
124 created pursuant to this chapter shall continue to receive state
125 premium tax moneys until fully funded. If the plan is fully
126 funded at a particular valuation date and not fully funded at a
127 later valuation date, the plan shall resume receipt of state
128 premium tax moneys until the plan is once again fully funded.
129 “Fully funded” means that the present value of all benefits,
130 accrued and projected, is less than the available assets and the
131 present value of future member contributions and future plan
132 sponsor contributions on an actuarial entry age cost funding
133 basis. Effective May 31, 1998, for plans discussed herein, the
134 plan shall remain in effect until the final benefit payment has
135 been made to the last participant or beneficiary and shall then
136 be terminated in accordance with s. 175.361.
137 Section 4. Subsection (2) of section 185.03, Florida
138 Statutes, is amended to read:
139 185.03 Municipal police officers' retirement trust funds;
140 creation; applicability of provisions; participation by public
141 safety officers.—For any municipality, chapter plan, local law
142 municipality, or local law plan under this chapter:
143 (2) The provisions of this chapter shall apply only to
144 municipalities organized and established pursuant to the laws of
145 the state, and said provisions shall not apply to the
146 unincorporated areas of any county or counties nor shall the
147 provisions hereof apply to any governmental entity whose police
148 officers are eligible to participate in the Florida Retirement
149 System, except as provided in s. 185.38(2).
150 Section 5. Subsection (2) of section 185.38, Florida
151 Statutes, is amended to read:
152 185.38 Transfer to another state retirement system;
153 benefits payable.—For any municipality, chapter plan, local law
154 municipality, or local law plan under this chapter:
155 (2) When every active participant in any pension plan
156 created pursuant to this chapter elects to transfer to another
157 state retirement system, the pension plan created pursuant to
158 this chapter shall be terminated and the assets distributed in
159 accordance with s. 185.37. If, upon joining another state
160 retirement system as the result of a transfer, merger, or
161 consolidation of governmental services, or as the result of a
162 municipality's election to participate in such system, some
163 participants in a pension plan created pursuant to this chapter
164 elect to transfer to another state retirement system and other
165 participants elect to remain in the existing plan created
166 pursuant to this chapter, the plan created pursuant to this
167 chapter shall continue to receive state premium tax moneys until
168 fully funded. If the plan is fully funded at a particular
169 valuation date and not fully funded at a later valuation date,
170 the plan shall resume receipt of state premium tax moneys until
171 the plan is once again determined to be fully funded. “Fully
172 funded” means that the present value of all benefits, accrued
173 and projected, is less than the available assets and the present
174 value of future member contributions and future plan sponsor
175 contributions on an actuarial entry age cost funding basis.
176 Effective May 31, 1998, for plans discussed herein, the plan
177 shall remain in effect until the final benefit payment has been
178 made to the last participant or beneficiary and shall then be
179 terminated in accordance with s. 185.37.
180 Section 6. The Legislature finds that a proper and
181 legitimate state purpose is served when employees and retirees
182 of the state and of its political subdivisions, and the
183 dependents, survivors, and beneficiaries of such employees and
184 retirees, are extended the basic protections afforded by
185 governmental retirement systems that provide fair and adequate
186 benefits and that are managed, administered, and funded in an
187 actuarially sound manner as required by s. 14, Art. X of the
188 State Constitution and part VII of chapter 112, Florida
189 Statutes. Therefore, the Legislature determines and declares
190 that the provisions of this act fulfill an important state
191 interest.
192 Section 7. This act shall take effect July 1, 2009.