CS/CS/HB 5

1	A bill to be entitled
2	An act relating to firefighters and municipal police
3	officers; amending s. 175.032, F.S.; revising the
4	definition of the term "creditable service" for purposes
5	of determining credit for prior service as a firefighter;
6	revising the definition of the term "firefighter";
7	amending s. 175.061, F.S.; authorizing the terms of office
8	for the board of trustees of the firefighters' pension
9	trust fund to be revised under certain circumstances;
10	authorizing the firefighters' pension trust fund plan
11	administrator to withhold funds to pay for premiums for
12	accident, health, and long-term care insurance for the
13	retiree and the retiree's spouse and dependents; providing
14	an exemption from liability under certain circumstances;
15	amending s. 175.071, F.S.; requiring the board of trustees
16	to perform its powers subject to certain fiduciary
17	standards and ethics provisions; increasing the percentage
18	of assets of the firefighters' pension trust fund that the
19	board of trustees may invest in foreign securities on a
20	market-value basis; providing that investment caps on
21	foreign securities may only be revised, amended,
22	increased, or repealed by an act of the Legislature;
23	authorizing certain individuals to sign drafts issued upon
24	the firefighters' pension trust fund; requiring the board
25	of trustees to identify and divest of any scrutinized
26	companies by a certain date; amending s. 175.171, F.S.;
27	authorizing retired firefighters to change their
28	designation of joint annuitant or beneficiary up to two
29	times without the approval of the board of trustees or the
30	prior joint annuitant or beneficiary; conforming
31	provisions relating to joint pensioner or beneficiary to
32	reflect joint annuitant or beneficiary; amending s.
33	175.361, F.S.; revising fund distribution procedures with
34	respect to plan termination; providing that the Department
35	of Management Services shall effect the termination of the
36	fund; amending s. 185.02, F.S.; revising the definition of
37	the term "creditable service" for purposes of determining
38	credit for prior service as a police officer; amending s.
39	185.03, F.S.; clarifying the applicability of ch. 185,
40	F.S.; amending s. 185.05, F.S.; revising municipal police
41	officers' retirement trust fund board of trustee selection
42	procedures; authorizing the terms of office for the board
43	of trustees of the municipal police officers' retirement
44	trust fund to be revised under certain circumstances;
45	authorizing the plan administrator to withhold funds to
46	pay for premiums for accident, health, and long-term care
47	insurance for the retiree and the retiree's spouse and
48	dependents; providing an exemption from liability under
49	certain circumstances; amending s. 185.06, F.S.; requiring
50	the board of trustees to perform its powers subject to
51	certain fiduciary standards and ethics provisions;
52	increasing the percentage of assets of the municipal
53	police officers' retirement trust fund that the board of
54	trustees may invest in foreign securities on a market-
55	value basis; providing that the investment cap on foreign
56	securities may only be revised, amended, increased, or
57	repealed by an act of the Legislature; authorizing certain
58	individuals to sign drafts issued upon the municipal
59	police officers' retirement trust fund; requiring the
60	board of trustees to identify and divest of any
61	scrutinized companies by a certain date; amending s.
62	185.08, F.S.; making editorial changes; amending s.
63	185.161, F.S.; authorizing retired police officers to
64	change their designation of joint annuitant or beneficiary
65	up to two times without the approval of the board of
66	trustees or the prior joint annuitant or beneficiary;
67	conforming provisions relating to joint pensioner or
68	beneficiary to reflect joint annuitant or beneficiary;
69	amending s. 185.37, F.S.; revising fund distribution
70	procedures with respect to plan termination; providing
71	that the Department of Management Services shall effect
72	the termination of the fund; providing an effective date.
73
74	Be It Enacted by the Legislature of the State of Florida:
75
76	Section 1.  Paragraph (c) of subsection (4) and paragraph
77	(a) of subsection (8) of section 175.032, Florida Statutes, are
78	amended to read:
79	175.032  Definitions.--For any municipality, special fire
80	control district, chapter plan, local law municipality, local
81	law special fire control district, or local law plan under this
82	chapter, the following words and phrases have the following
83	meanings:
84	(4)  "Creditable service" or "credited service" means the
85	aggregate number of years of service, and fractional parts of
86	years of service, of any firefighter, omitting intervening years
87	and fractional parts of years when such firefighter may not have
88	been employed by the municipality or special fire control
89	district, subject to the following conditions:
90	(c)  Credited service under this chapter shall be provided
91	only for service as a firefighter, as defined in subsection (8),
92	or for military service and shall not include credit for any
93	other type of service. A municipality may, by local ordinance,
94	or a special fire control district may, by resolution, provide
95	for the purchase of credit for military service prior to
96	employment as well as for prior service as a firefighter for
97	some other employer as long as a firefighter is not entitled to
98	receive a benefit for such other prior service as a firefighter.
99	For purposes of determining credit for prior service as a
100	firefighter, in addition to service as a firefighter in this
101	state, credit may be given for federal, other state, or county
102	service, as long as such prior fire service is recognized by the
103	Division of State Fire Marshal as provided under chapter 633 or
104	the firefighter provides proof to the board of trustees that
105	such service is equivalent to the service required to meet the
106	definition of a firefighter under subsection (8).
107	(8)(a)  "Firefighter" means any person employed solely by a
108	constituted fire department of any municipality or special fire
109	control district who is certified as a firefighter as a
110	condition of employment in accordance with the provisions of s.
111	633.35 and whose duty it is to extinguish fires, to protect
112	life, or to protect property. "Firefighter" includes all
113	certified supervisory and command personnel whose duties
114	include, in whole or in part, the supervision, training,
115	guidance, and management responsibilities of full-time
116	firefighters, part-time firefighters, or auxiliary firefighters
117	but does not include part-time firefighters or auxiliary
118	firefighters. However, for purposes of this chapter only,
119	"firefighter" also includes public safety officers who are
120	responsible for performing both police and fire services, who
121	are certified as police officers or firefighters, and who are
122	certified by their employers to the Chief Financial Officer as
123	participating in this chapter prior to October 1, 1979.
124	Effective October 1, 1979, public safety officers who have not
125	been certified as participating in this chapter shall be
126	considered police officers for retirement purposes and shall be
127	eligible to participate in chapter 185. Any plan may provide
128	that the fire chief shall have an option to participate, or not,
129	in that plan.
130	Section 2.  Paragraph (a) of subsection (1) and subsection
131	(7) of section 175.061, Florida Statutes, are amended to read:
132	175.061  Board of trustees; members; terms of office;
133	meetings; legal entity; costs; attorney's fees.--For any
134	municipality, special fire control district, chapter plan, local
135	law municipality, local law special fire control district, or
136	local law plan under this chapter:
137	(1)  In each municipality and in each special fire control
138	district there is hereby created a board of trustees of the
139	firefighters' pension trust fund, which shall be solely
140	responsible for administering the trust fund. Effective October
141	1, 1986, and thereafter:
142	(a)  The membership of the board of trustees for a chapter
143	plan shall consist of five members, two of whom, unless
144	otherwise prohibited by law, shall be legal residents of the
145	municipality or special fire control district, who shall be
146	appointed by the governing body of the municipality or special
147	fire control district, and two of whom shall be full-time
148	firefighters as defined in s. 175.032 who shall be elected by a
149	majority of the active firefighters who are members of such
150	plan. With respect to any chapter plan or local law plan that,
151	on January 1, 1997, allowed retired firefighters to vote in such
152	elections, retirees may continue to vote in such elections. The
153	fifth member shall be chosen by a majority of the previous four
154	members as provided for herein, and such person's name shall be
155	submitted to the governing body of the municipality or special
156	fire control district. Upon receipt of the fifth person's name,
157	the governing body of the municipality or special fire control
158	district shall, as a ministerial duty, appoint such person to
159	the board of trustees as its fifth member. The fifth member
160	shall have the same rights as each of the other four members
161	appointed or elected as herein provided, shall serve as trustee
162	for a period of 2 years, and may succeed himself or herself in
163	office. Each resident member shall serve as trustee for a period
164	of 2 years, unless sooner replaced by the governing body at
165	whose pleasure he or she shall serve, and may succeed himself or
166	herself as a trustee. Each firefighter member shall serve as
167	trustee for a period of 2 years, unless he or she sooner leaves
168	the employment of the municipality or special fire control
169	district as a firefighter, whereupon a successor shall be chosen
170	in the same manner as an original appointment. Each firefighter
171	may succeed himself or herself in office. The terms of office of
172	the appointed and elected members of the board of trustees may
173	be amended by municipal ordinance, special act of the
174	Legislature, or resolution adopted by the governing body of the
175	special fire control district to extend the terms of office from
176	2 years to 4 years. The length of the terms of office shall be
177	the same for all board members.
178	(7)  The board of trustees may, upon written request by the
179	retiree of the plan, or by a dependent, when authorized by the
180	retiree or the retiree's beneficiary, authorize the plan
181	administrator to withhold from the monthly retirement payment
182	those funds that are necessary to pay for the benefits being
183	received through the governmental entity from which the employee
184	retired, to pay the certified bargaining agent of the
185	governmental entity, and to make any payments for child support
186	or alimony. Further, the board of trustees may, upon the written
187	request of the retiree of the plan, authorize the plan
188	administrator to withhold from the retirement payment those
189	funds that are necessary to pay for premiums for accident,
190	health, and long-term care insurance for the retiree and the
191	retiree's spouse and dependents. A retirement plan does not
192	incur any liability for participation in this permissive program
193	if its actions are taken in good faith.
194	Section 3.  Subsection (1) of section 175.071, Florida
195	Statutes, is amended, and subsection (8) is added to that
196	section, to read:
197	175.071  General powers and duties of board of
198	trustees.--For any municipality, special fire control district,
199	chapter plan, local law municipality, local law special fire
200	control district, or local law plan under this chapter:
201	(1)  The board of trustees, subject to the fiduciary
202	standards in ss. 112.656, 112.661, and 518.11 and the Code of
203	Ethics in ss. 112.311-112.3187, may:
204	(a)  Invest and reinvest the assets of the firefighters'
205	pension trust fund in annuity and life insurance contracts of
206	life insurance companies in amounts sufficient to provide, in
207	whole or in part, the benefits to which all of the participants
208	in the firefighters' pension trust fund shall be entitled under
209	the provisions of this chapter and pay the initial and
210	subsequent premiums thereon.
211	(b)  Invest and reinvest the assets of the firefighters'
212	pension trust fund in:
213	1.  Time or savings accounts of a national bank, a state
214	bank insured by the Bank Insurance Fund, or a savings, building,
215	and loan association insured by the Savings Association
216	Insurance Fund which is administered by the Federal Deposit
217	Insurance Corporation or a state or federal chartered credit
218	union whose share accounts are insured by the National Credit
219	Union Share Insurance Fund.
220	2.  Obligations of the United States or obligations
221	guaranteed as to principal and interest by the government of the
222	United States.
223	3.  Bonds issued by the State of Israel.
224	4.  Bonds, stocks, or other evidences of indebtedness
225	issued or guaranteed by a corporation organized under the laws
226	of the United States, any state or organized territory of the
227	United States, or the District of Columbia, provided:
228	a.  The corporation is listed on any one or more of the
229	recognized national stock exchanges or on the National Market
230	System of the NASDAQ Stock Market and, in the case of bonds
231	only, holds a rating in one of the three highest classifications
232	by a major rating service; and
233	b.  The board of trustees shall not invest more than 5
234	percent of its assets in the common stock or capital stock of
235	any one issuing company, nor shall the aggregate investment in
236	any one issuing company exceed 5 percent of the outstanding
237	capital stock of that company or the aggregate of its
238	investments under this subparagraph at cost exceed 50 percent of
239	the assets of the fund.
240
241	This paragraph shall apply to all boards of trustees and
242	participants. However, in the event that a municipality or
243	special fire control district has a duly enacted pension plan
244	pursuant to, and in compliance with, s. 175.351, and the
245	trustees thereof desire to vary the investment procedures
246	herein, the trustees of such plan shall request a variance of
247	the investment procedures as outlined herein only through a
248	municipal ordinance, special act of the Legislature, or
249	resolution by the governing body of the special fire control
250	district; where a special act, or a municipality by ordinance
251	adopted prior to July 1, 1998, permits a greater than 50-percent
252	equity investment, such municipality shall not be required to
253	comply with the aggregate equity investment provisions of this
254	paragraph. Notwithstanding any other provision of law to the
255	contrary, nothing in this section may be construed to take away
256	any preexisting legal authority to make equity investments that
257	exceed the requirements of this paragraph. Notwithstanding any
258	law to the contrary, the board of trustees may invest up to 25
259	10 percent of plan assets in foreign securities on a market-
260	value basis. The investment cap on foreign securities may not be
261	revised, amended, increased, or repealed except as provided by
262	general law.
263	(c)  Issue drafts upon the firefighters' pension trust fund
264	pursuant to this act and rules and regulations prescribed by the
265	board of trustees. All such drafts shall be consecutively
266	numbered, be signed by the chair and secretary or by two
267	individuals designated by the board who are subject to the same
268	fiduciary standards as required for the board of trustees under
269	this subsection, and state upon their faces the purpose for
270	which the drafts are drawn. The treasurer or depository of each
271	municipality or special fire control district shall retain such
272	drafts when paid, as permanent vouchers for disbursements made,
273	and no money shall be otherwise drawn from the fund.
274	(d)  Convert into cash any securities of the fund.
275	(e)  Keep a complete record of all receipts and
276	disbursements and of the board's acts and proceedings.
277	(8)  Notwithstanding the provisions of paragraph (1)(b) and
278	as provided in s. 215.473, the board of trustees shall identify
279	and publicly report any direct or indirect holdings it may have
280	in any scrutinized company, as defined in s. 215.473, and
281	proceed to sell, redeem, divest, or withdraw all publicly traded
282	securities it may have in such company beginning January 1,
283	2010. The divestiture of any such security must be completed by
284	March 1, 2010. The board and its named officers or investment
285	advisors may not be deemed to have breached their fiduciary duty
286	in any action taken to dispose of any such security, and the
287	board shall have satisfactorily discharged the fiduciary duties
288	of loyalty, prudence, and sole and exclusive benefit to the
289	participants of the pension fund and their beneficiaries if the
290	actions it takes are consistent with the duties imposed by s.
291	215.473, and the manner of the disposition, if any, is
292	reasonable as to the means chosen. For the purposes of effecting
293	compliance with s. 215.473, the pension fund shall designate
294	terror-free plans that allocate their funds among securities not
295	subject to divestiture. No person may bring any civil, criminal,
296	or administrative action against the board of trustees or any
297	employee, officer, director, or advisor of such pension fund
298	based upon the divestiture of any security pursuant to this
299	subsection.
300	Section 4.  Paragraphs (b) and (c) of subsection (1) and
301	paragraph (b) of subsection (2) of section 175.171, Florida
302	Statutes, are amended to read:
303	175.171  Optional forms of retirement income.--For any
304	municipality, special fire control district, chapter plan, local
305	law municipality, local law special fire control district, or
306	local law plan under this chapter:
307	(1)  In lieu of the amount and form of retirement income
308	payable in the event of normal or early retirement as specified
309	in s. 175.162, a firefighter, upon written request to the board
310	of trustees and subject to the approval of the board of
311	trustees, may elect to receive a retirement income or benefit of
312	equivalent actuarial value payable in accordance with one of the
313	following options:
314	(b)  A retirement income of a modified monthly amount,
315	payable to the firefighter during the joint lifetime of the
316	firefighter and a joint annuitant pensioner designated by the
317	firefighter, and following the death of either of them, 100
318	percent, 75 percent, 66 2/3 percent, or 50 percent of such
319	monthly amounts payable to the survivor for the lifetime of the
320	survivor.
321	(c)  Such other amount and form of retirement payments or
322	benefits as, in the opinion of the board of trustees, will best
323	meet the circumstances of the retiring firefighter.
324	1.  The firefighter upon electing any option of this
325	section shall will designate the joint annuitant pensioner or
326	beneficiary (or beneficiaries) to receive the benefit, if any,
327	payable under the plan in the event of his or her death, and may
328	will have the power to change such designation from time to
329	time, but any such change shall be deemed a new election and is
330	will be subject to approval by the board of trustees. Such
331	designation must will name a joint annuitant pensioner or one or
332	more primary beneficiaries where applicable. If a firefighter
333	has elected an option with a joint annuitant pensioner or
334	beneficiary and his or her retirement income benefits have
335	commenced, the firefighter may thereafter change the designated
336	joint annuitant pensioner or beneficiary, but only if the board
337	of trustees consents to such change and if the joint annuitant
338	pensioner last previously designated by the firefighter is alive
339	when the firefighter files with the board of trustees a request
340	for such change.
341	2.  The consent of a firefighter's joint annuitant
342	pensioner or beneficiary to any such change is shall not be
343	required.
344	3.  The board of trustees may request such evidence of the
345	good health of the joint annuitant pensioner that is being
346	removed as it may require and the amount of the retirement
347	income payable to the firefighter upon designation of a new
348	joint annuitant pensioner shall be actuarially redetermined
349	taking into account the age and gender sex of the former joint
350	annuitant pensioner, the new joint annuitant pensioner, and the
351	firefighter. Each such designation shall will be made in writing
352	on a form prepared by the board of trustees and on completion
353	will be filed with the board of trustees. If In the event that
354	no designated beneficiary survives the firefighter, such
355	benefits as are payable in the event of the death of the
356	firefighter subsequent to his or her retirement shall be paid as
357	provided in s. 175.181.
358	4.  Notwithstanding the provisions of this paragraph, a
359	retired firefighter may change his or her designation of joint
360	annuitant or beneficiary up to two times as provided in s.
361	175.333 without the approval of the board of trustees or the
362	current joint annuitant or beneficiary. The retiree need not
363	provide proof of the good health of the joint annuitant or
364	beneficiary being removed, and the joint annuitant or
365	beneficiary being removed need not be living.
366	(2)  Retirement income payments shall be made under the
367	option elected in accordance with the provisions of this section
368	and shall be subject to the following limitations:
369	(b)  If the designated beneficiary (or beneficiaries) or
370	joint annuitant pensioner dies before the firefighter's
371	retirement under the plan, the option elected will be canceled
372	automatically and a retirement income of the normal form and
373	amount will be payable to the firefighter upon retirement as if
374	the election had not been made, unless a new election is made in
375	accordance with the provisions of this section or a new
376	beneficiary is designated by the firefighter before his or her
377	prior to retirement and within 90 days after the death of the
378	beneficiary.
379	Section 5.  Section 175.361, Florida Statutes, is amended
380	to read:
381	175.361  Termination of plan and distribution of fund.--For
382	any municipality, special fire control district, chapter plan,
383	local law municipality, local law special fire control district,
384	or local law plan under this chapter, the plan may be terminated
385	by the municipality or special fire control district. Upon
386	termination of the plan by the municipality or special fire
387	control district for any reason or because of a transfer,
388	merger, or consolidation of governmental units, services, or
389	functions as provided in chapter 121, or upon written notice by
390	the municipality or special fire control district to the board
391	of trustees that contributions under the plan are being
392	permanently discontinued, the rights of all employees to
393	benefits accrued to the date of such termination and the amounts
394	credited to the employees' accounts are nonforfeitable. The fund
395	shall be apportioned and distributed in accordance with the
396	following procedures:
397	(1)  The board of trustees shall determine the date of
398	distribution and the asset value required to fund all the
399	nonforfeitable benefits to be distributed, after taking into
400	account the expenses of such distribution. The board shall
401	inform the municipality or special fire control district if
402	additional assets are required, in which event the municipality
403	or special fire control district shall continue to financially
404	support the plan until all nonforfeitable benefits have been
405	funded.
406	(2)  The board of trustees shall determine the method of
407	distribution of the asset value, that is, whether distribution
408	shall be by payment in cash, by the maintenance of another or
409	substituted trust fund, by the purchase of insured annuities, or
410	otherwise, for each firefighter entitled to benefits under the
411	plan as specified in subsection (3).
412	(3)  The board of trustees shall distribute apportion the
413	asset value as of the date of termination in the manner set
414	forth in this subsection, on the basis that the amount required
415	to provide any given retirement income shall mean the
416	actuarially computed single-sum value of such retirement income,
417	except that if the method of distribution determined under
418	subsection (2) involves the purchase of an insured annuity, the
419	amount required to provide the given retirement income shall
420	mean the single premium payable for such annuity. The actuarial
421	single-sum value shall not be less than the employee's
422	accumulated contributions to the plan, with interest if provided
423	by the plan, less the value of any plan benefits previously paid
424	to the employee.
425	(a)  Apportionment shall first be made in respect of each
426	retired firefighter receiving a retirement income hereunder on
427	such date, each person receiving a retirement income on such
428	date on account of a retired (but since deceased) firefighter,
429	and each firefighter who has, by such date, become eligible for
430	normal retirement but has not yet retired, in the amount
431	required to provide such retirement income, provided that, if
432	such asset value is less than the aggregate of such amounts,
433	such amounts shall be proportionately reduced so that the
434	aggregate of such reduced amounts will be equal to such asset
435	value.
436	(b)  If there is any asset value remaining after the
437	apportionment under paragraph (a), apportionment shall next be
438	made in respect of each firefighter in the service of the
439	municipality or special fire control district on such date who
440	has completed at least 10 years of credited service, in the
441	firefighters' pension trust fund for at least 10 years, and who
442	is not entitled to an apportionment under paragraph (a), in the
443	amount required to provide the actuarial equivalent of the
444	accrued normal retirement income, based on the firefighter's
445	credited service and earnings to such date, and each former
446	participant then entitled to a benefit under the provisions of
447	s. 175.211 who has not by such date reached his or her normal
448	retirement date, in the amount required to provide the actuarial
449	equivalent of the accrued normal retirement income to which he
450	or she is entitled under s. 175.211; provided that, if such
451	remaining asset value is less than the aggregate of the amounts
452	apportioned hereunder, such latter amounts shall be
453	proportionately reduced so that the aggregate of such reduced
454	amounts will be equal to such remaining asset value.
455	(c)  If there is any asset value after the apportionments
456	under paragraphs (a) and (b), apportionment shall lastly be made
457	in respect of each firefighter in the service of the
458	municipality or special fire control district on such date who
459	is not entitled to an apportionment under paragraphs (a) and (b)
460	in the amount equal to the firefighter's total contributions to
461	the plan to date of termination; provided that, if such
462	remaining asset value is less than the aggregate of the amounts
463	apportioned hereunder, such latter amounts shall be
464	proportionately reduced so that the aggregate of such reduced
465	amounts will be equal to such remaining asset value.
466	(4)(d)  In the event that there is asset value remaining
467	after the full distribution apportionment specified in
468	subsection (3), and after the payment of any expenses incurred
469	with such distribution paragraphs (a), (b), and (c), such excess
470	shall be returned to the municipality or special fire control
471	district, less return to the state of the state's contributions,
472	provided that, if the excess is less than the total
473	contributions made by the municipality or special fire control
474	district and the state to date of termination of the plan, such
475	excess shall be divided proportionately to the total
476	contributions made by the municipality or special fire control
477	district and the state.
478	(5)(4)  The board of trustees shall distribute, in
479	accordance with the manner of distribution determined under
480	subsection (2), the amounts determined apportioned under
481	subsection (3).
482
483	If, after a period of 24 months after the date on which the plan
484	terminated or the date on which the board received written
485	notice that the contributions thereunder were being permanently
486	discontinued, the municipality or special fire control district
487	or the board of trustees of the firefighters' pension trust fund
488	affected has not complied with all the provisions in this
489	section, the Department of Management Services division shall
490	effect the termination of the fund in accordance with this
491	section.
492	Section 6.  Paragraph (c) of subsection (5) of section
493	185.02, Florida Statutes, is amended to read:
494	185.02  Definitions.--For any municipality, chapter plan,
495	local law municipality, or local law plan under this chapter,
496	the following words and phrases as used in this chapter shall
497	have the following meanings, unless a different meaning is
498	plainly required by the context:
499	(5)  "Creditable service" or "credited service" means the
500	aggregate number of years of service and fractional parts of
501	years of service of any police officer, omitting intervening
502	years and fractional parts of years when such police officer may
503	not have been employed by the municipality subject to the
504	following conditions:
505	(c)  Credited service under this chapter shall be provided
506	only for service as a police officer, as defined in subsection
507	(11), or for military service and shall not include credit for
508	any other type of service. A municipality may, by local
509	ordinance, provide for the purchase of credit for military
510	service occurring prior to employment as well as prior service
511	as a police officer for some other employer as long as the
512	police officer is not entitled to receive a benefit for such
513	other prior service as a police officer. For purposes of
514	determining credit for prior service as a police officer, in
515	addition to service as a police officer in this state, credit
516	may be given for federal, other state, or county service, as
517	long as such prior police service is recognized by the Criminal
518	Justice Standards and Training Commission within the Department
519	of Law Enforcement as provided under chapter 943 or the police
520	officer provides proof to the board of trustees that such
521	service is equivalent to the service required to meet the
522	definition of a police officer under subsection (11).
523	Section 7.  Subsection (2) of section 185.03, Florida
524	Statutes, is amended to read:
525	185.03  Municipal police officers' retirement trust funds;
526	creation; applicability of provisions; participation by public
527	safety officers.--For any municipality, chapter plan, local law
528	municipality, or local law plan under this chapter:
529	(2)  The provisions of This chapter applies shall apply
530	only to municipalities organized and established under pursuant
531	to the laws of the state, and does said provisions shall not
532	apply to the unincorporated areas of any county or counties or
533	nor shall the provisions hereof apply to any governmental entity
534	whose police officers are eligible to participate in the Florida
535	Retirement System.
536	Section 8.  Paragraph (a) of subsection (1) and subsection
537	(6) of section 185.05, Florida Statutes, are amended to read:
538	185.05  Board of trustees; members; terms of office;
539	meetings; legal entity; costs; attorney's fees.--For any
540	municipality, chapter plan, local law municipality, or local law
541	plan under this chapter:
542	(1)  In each municipality described in s. 185.03 there is
543	hereby created a board of trustees of the municipal police
544	officers' retirement trust fund, which shall be solely
545	responsible for administering the trust fund. Effective October
546	1, 1986, and thereafter:
547	(a)  The membership of the board of trustees for chapter
548	plans shall consist of five members, two of whom, unless
549	otherwise prohibited by law, shall be legal residents of the
550	municipality, who shall be appointed by the legislative body of
551	the municipality, and two of whom shall be police officers as
552	defined in s. 185.02 who shall be elected by a majority of the
553	active police officers who are members of such plan. With
554	respect to any chapter plan or local law plan that, on January
555	1, 1997, allowed retired police officers to vote in such
556	elections, retirees may continue to vote in such elections. The
557	fifth member shall be chosen by a majority of the previous four
558	members, and such person's name shall be submitted to the
559	legislative body of the municipality. Upon receipt of the fifth
560	person's name, the legislative body of the municipality shall,
561	as a ministerial duty, appoint such person to the board of
562	trustees as its fifth member. The fifth member shall have the
563	same rights as each of the other four members appointed or
564	elected as herein provided, shall serve as trustee for a period
565	of 2 years, and may succeed himself or herself in office. Each
566	resident member shall serve as trustee for a period of 2 years,
567	unless sooner replaced by the legislative body at whose pleasure
568	the member shall serve, and may succeed himself or herself as a
569	trustee. Each police officer member shall serve as trustee for a
570	period of 2 years, unless he or she sooner leaves the employment
571	of the municipality as a police officer, whereupon the
572	legislative body of the municipality shall choose a successor
573	shall be chosen in the same manner as an original appointment.
574	Each police officer may succeed himself or herself in office.
575	The terms of office of the appointed and elected members of the
576	board of trustees may be amended by municipal ordinance or
577	special act of the Legislature to extend the terms of office
578	from 2 years to 4 years. The length of the terms of office shall
579	be the same for all board members.
580	(6)  The board of trustees may, upon written request by the
581	retiree of the plan, or by a dependent, when authorized by the
582	retiree or the retiree's beneficiary, authorize the plan
583	administrator to withhold from the monthly retirement payment
584	those funds that are necessary to pay for the benefits being
585	received through the governmental entity from which the employee
586	retired, to pay the certified bargaining agent of the
587	governmental entity, and to make any payments for child support
588	or alimony. Further, the board of trustees may, upon the written
589	request of the retiree of the plan, authorize the plan
590	administrator to withhold from the retirement payment those
591	funds that are necessary to pay for premiums for accident,
592	health, and long-term care insurance for the retiree and the
593	retiree's spouse and dependents. A retirement plan does not
594	incur any liability for participation in this permissive program
595	if its actions are taken in good faith.
596	Section 9.  Subsection (1) of section 185.06, Florida
597	Statutes, is amended, and subsection (7) is added to that
598	section, to read:
599	185.06  General powers and duties of board of
600	trustees.--For any municipality, chapter plan, local law
601	municipality, or local law plan under this chapter:
602	(1)  The board of trustees, subject to the fiduciary
603	standards in ss. 112.656, 112.661, and 518.11 and the Code of
604	Ethics in ss. 112.311-112.3187, may:
605	(a)  Invest and reinvest the assets of the retirement trust
606	fund in annuity and life insurance contracts of life insurance
607	companies in amounts sufficient to provide, in whole or in part,
608	the benefits to which all of the participants in the municipal
609	police officers' retirement trust fund shall be entitled under
610	the provisions of this chapter, and pay the initial and
611	subsequent premiums thereon.
612	(b)  Invest and reinvest the assets of the retirement trust
613	fund in:
614	1.  Time or savings accounts of a national bank, a state
615	bank insured by the Bank Insurance Fund, or a savings and loan
616	association insured by the Savings Association Insurance Fund
617	which is administered by the Federal Deposit Insurance
618	Corporation or a state or federal chartered credit union whose
619	share accounts are insured by the National Credit Union Share
620	Insurance Fund.
621	2.  Obligations of the United States or obligations
622	guaranteed as to principal and interest by the United States.
623	3.  Bonds issued by the State of Israel.
624	4.  Bonds, stocks, or other evidences of indebtedness
625	issued or guaranteed by a corporation organized under the laws
626	of the United States, any state or organized territory of the
627	United States, or the District of Columbia, provided:
628	a.  The corporation is listed on any one or more of the
629	recognized national stock exchanges or on the National Market
630	System of the NASDAQ Stock Market and, in the case of bonds
631	only, holds a rating in one of the three highest classifications
632	by a major rating service; and
633	b.  The board of trustees shall not invest more than 5
634	percent of its assets in the common stock or capital stock of
635	any one issuing company, nor shall the aggregate investment in
636	any one issuing company exceed 5 percent of the outstanding
637	capital stock of the company or the aggregate of its investments
638	under this subparagraph at cost exceed 50 percent of the fund's
639	assets.
640
641	This paragraph shall apply to all boards of trustees and
642	participants. However, in the event that a municipality has a
643	duly enacted pension plan pursuant to, and in compliance with,
644	s. 185.35 and the trustees thereof desire to vary the investment
645	procedures herein, the trustees of such plan shall request a
646	variance of the investment procedures as outlined herein only
647	through a municipal ordinance or special act of the Legislature;
648	where a special act, or a municipality by ordinance adopted
649	prior to July 1, 1998, permits a greater than 50-percent equity
650	investment, such municipality shall not be required to comply
651	with the aggregate equity investment provisions of this
652	paragraph. Notwithstanding any other provision of law to the
653	contrary, nothing in this section may be construed to take away
654	any preexisting legal authority to make equity investments that
655	exceed the requirements of this paragraph. Notwithstanding any
656	law to the contrary, the board of trustees may invest up to 25
657	10 percent of plan assets in foreign securities on a market-
658	value basis. The investment cap on foreign securities may not be
659	revised, amended, increased, or repealed except as provided by
660	general law.
661	(c)  Issue drafts upon the municipal police officers'
662	retirement trust fund pursuant to this act and rules and
663	regulations prescribed by the board of trustees. All such drafts
664	shall be consecutively numbered, be signed by the chair and
665	secretary or by two individuals designated by the board who are
666	subject to the same fiduciary standards as required for the
667	board of trustees under this subsection, and state upon their
668	faces the purposes for which the drafts are drawn. The city
669	treasurer or other depository shall retain such drafts when
670	paid, as permanent vouchers for disbursements made, and no money
671	shall otherwise be drawn from the fund.
672	(d)  Finally decide all claims to relief under the board's
673	rules and regulations and pursuant to the provisions of this
674	act.
675	(e)  Convert into cash any securities of the fund.
676	(f)  Keep a complete record of all receipts and
677	disbursements and of the board's acts and proceedings.
678	(7)  Notwithstanding the provisions of paragraph (1)(b) and
679	as provided in s. 215.473, the board of trustees shall identify
680	and publicly report any direct or indirect holdings it may have
681	in any scrutinized company, as defined in s. 215.473, and
682	proceed to sell, redeem, divest, or withdraw all publicly traded
683	securities it may have in such company beginning January 1,
684	2010. The divestiture of any such security must be completed by
685	March 1, 2010. The board and its named officers or investment
686	advisors may not be deemed to have breached their fiduciary duty
687	in any action taken to dispose of any such security, and the
688	board shall have satisfactorily discharged the fiduciary duties
689	of loyalty, prudence, and sole and exclusive benefit to the
690	participants of the pension fund and their beneficiaries if the
691	actions it takes are consistent with the duties imposed by s.
692	215.473, and the manner of the disposition, if any, is
693	reasonable as to the means chosen. For the purposes of effecting
694	compliance with s. 215.473, the pension fund shall designate
695	terror-free plans that allocate their funds among securities not
696	subject to divestiture. No person may bring any civil, criminal,
697	or administrative action against the board of trustees or any
698	employee, officer, director, or advisor of such pension fund
699	based upon the divestiture of any security pursuant to this
700	subsection.
701	Section 10.  Section 185.08, Florida Statutes, is amended
702	to read:
703	185.08  State excise tax on casualty insurance premiums
704	authorized; procedure.--For any municipality, chapter plan,
705	local law municipality, or local law plan under this chapter:
706	(1)  Each incorporated municipality in this state described
707	and classified in s. 185.03, as well as each other city or town
708	of this state which on July 31, 1953, had a lawfully established
709	municipal police officers' retirement trust fund or city fund,
710	by whatever name known, providing pension or relief benefits to
711	police officers as provided under this chapter, may assess and
712	impose on every insurance company, corporation, or other insurer
713	now engaged in or carrying on, or who shall hereafter engage in
714	or carry on, the business of casualty insurance as shown by
715	records of the Office of Insurance Regulation of the Financial
716	Services Commission, an excise tax in addition to any lawful
717	license or excise tax now levied by each of the said
718	municipalities, respectively, amounting to .85 percent of the
719	gross amount of receipts of premiums from policyholders on all
720	premiums collected on casualty insurance policies covering
721	property within the corporate limits of such municipalities,
722	respectively.
723	(2)  In the case of multiple peril policies with a single
724	premium for both property and casualty coverages in such
725	policies, 30 percent of such premium shall be used as the basis
726	for the .85-percent tax above.
727	(3)  The excise tax shall be payable annually March 1 of
728	each year after the passing of an ordinance assessing and
729	imposing the tax herein authorized. Installments of taxes shall
730	be paid according to the provisions of s. 624.5092(2)(a), (b),
731	and (c).
732	Section 11.  Subsection (1) and paragraph (b) of subsection
733	(2) of section 185.161, Florida Statutes, are amended to read:
734	185.161  Optional forms of retirement income.--For any
735	municipality, chapter plan, local law municipality, or local law
736	plan under this chapter:
737	(1)(a)  In lieu of the amount and form of retirement income
738	payable in the event of normal or early retirement as specified
739	in s. 185.16, a police officer, upon written request to the
740	board of trustees and subject to the approval of the board of
741	trustees, may elect to receive a retirement income or benefit of
742	equivalent actuarial value payable in accordance with one of the
743	following options:
744	1.  A retirement income of larger monthly amount, payable
745	to the police officer for his or her lifetime only.
746	2.  A retirement income of a modified monthly amount,
747	payable to the police officer during the joint lifetime of the
748	police officer and a joint annuitant pensioner designated by the
749	police officer, and following the death of either of them, 100
750	percent, 75 percent, 66 2/3 percent, or 50 percent of such
751	monthly amount payable to the survivor for the lifetime of the
752	survivor.
753	3.  Such other amount and form of retirement payments or
754	benefit as, in the opinion of the board of trustees, will best
755	meet the circumstances of the retiring police officer.
756	(b)  The police officer upon electing any option of this
757	section shall will designate the joint annuitant pensioner or
758	beneficiary (or beneficiaries) to receive the benefit, if any,
759	payable under the plan in the event of the police officer's
760	death, and may will have the power to change such designation
761	from time to time but any such change shall be deemed a new
762	election and is will be subject to approval by the pension
763	committee. Such designation must will name a joint annuitant
764	pensioner or one or more primary beneficiaries where applicable.
765	If a police officer has elected an option with a joint annuitant
766	pensioner or beneficiary and his or her retirement income
767	benefits have commenced, he or she may thereafter change the
768	designated joint annuitant pensioner or beneficiary but only if
769	the board of trustees consents to such change and if the joint
770	annuitant pensioner last previously designated by the police
771	officer is alive when he or she files with the board of trustees
772	a request for such change. The consent of a police officer's
773	joint annuitant pensioner or beneficiary to any such change is
774	shall not be required. The board of trustees may request such
775	evidence of the good health of the joint annuitant pensioner
776	that is being removed as it may require and the amount of the
777	retirement income payable to the police officer upon the
778	designation of a new joint annuitant pensioner shall be
779	actuarially redetermined taking into account the ages and gender
780	sex of the former joint annuitant pensioner, the new joint
781	annuitant pensioner, and the police officer. Each such
782	designation shall will be made in writing on a form prepared by
783	the board of trustees, and on completion will be filed with the
784	board of trustees. If In the event that no designated
785	beneficiary survives the police officer, such benefits as are
786	payable in the event of the death of the police officer
787	subsequent to his or her retirement shall be paid as provided in
788	s. 185.162.
789	(c)  Notwithstanding paragraph (b), a retired police
790	officer may change his or her designation of joint annuitant or
791	beneficiary up to two times as provided in s. 185.341 without
792	the approval of the board of trustees or the current joint
793	annuitant or beneficiary. The retiree need not provide proof of
794	the good health of the joint annuitant or beneficiary being
795	removed, and the joint annuitant or beneficiary being removed
796	need not be living.
797	(2)  Retirement income payments shall be made under the
798	option elected in accordance with the provisions of this section
799	and shall be subject to the following limitations:
800	(b)  If the designated beneficiary (or beneficiaries) or
801	joint annuitant pensioner dies before the police officer's
802	retirement under the plan, the option elected will be canceled
803	automatically and a retirement income of the normal form and
804	amount will be payable to the police officer upon his or her
805	retirement as if the election had not been made, unless a new
806	election is made in accordance with the provisions of this
807	section or a new beneficiary is designated by the police officer
808	before prior to his or her retirement and within 90 days after
809	the death of the beneficiary.
810	Section 12.  Section 185.37, Florida Statutes, is amended
811	to read:
812	185.37  Termination of plan and distribution of fund.--For
813	any municipality, chapter plan, local law municipality, or local
814	law plan under this chapter, the plan may be terminated by the
815	municipality. Upon termination of the plan by the municipality
816	for any reason, or because of a transfer, merger, or
817	consolidation of governmental units, services, or functions as
818	provided in chapter 121, or upon written notice to the board of
819	trustees by the municipality that contributions under the plan
820	are being permanently discontinued, the rights of all employees
821	to benefits accrued to the date of such termination or
822	discontinuance and the amounts credited to the employees'
823	accounts are nonforfeitable. The fund shall be apportioned and
824	distributed in accordance with the following procedures:
825	(1)  The board of trustees shall determine the date of
826	distribution and the asset value required to fund all the
827	nonforfeitable benefits to be distributed, after taking into
828	account the expenses of such distribution. The board shall
829	inform the municipality if additional assets are required, in
830	which event the municipality shall continue to financially
831	support the plan until all nonforfeitable benefits have been
832	funded.
833	(2)  The board of trustees shall determine the method of
834	distribution of the asset value, that is, whether distribution
835	shall be by payment in cash, by the maintenance of another or
836	substituted trust fund, by the purchase of insured annuities, or
837	otherwise, for each police officer entitled to benefits under
838	the plan, as specified in subsection (3).
839	(3)  The board of trustees shall distribute apportion the
840	asset value as of the date of termination in the manner set
841	forth in this subsection, on the basis that the amount required
842	to provide any given retirement income shall mean the
843	actuarially computed single-sum value of such retirement income,
844	except that if the method of distribution determined under
845	subsection (2) involves the purchase of an insured annuity, the
846	amount required to provide the given retirement income shall
847	mean the single premium payable for such annuity. The actuarial
848	single-sum value shall not be less than the employee's
849	accumulated contributions to the plan, with interest if provided
850	by the plan, less the value of any plan benefits previously paid
851	to the employee.
852	(a)  Apportionment shall first be made in respect of each
853	retired police officer receiving a retirement income hereunder
854	on such date, each person receiving a retirement income on such
855	date on account of a retired (but since deceased) police
856	officer, and each police officer who has, by such date, become
857	eligible for normal retirement but has not yet retired, in the
858	amount required to provide such retirement income, provided
859	that, if such asset value is less than the aggregate of such
860	amounts, such amounts shall be proportionately reduced so that
861	the aggregate of such reduced amounts will be equal to such
862	asset value.
863	(b)  If there is any asset value remaining after the
864	apportionment under paragraph (a), apportionment shall next be
865	made in respect of each police officer in the service of the
866	municipality on such date who has completed at least 10 years of
867	credited service, in the municipal police officers' retirement
868	trust fund for at least 10 years, and who is not entitled to an
869	apportionment under paragraph (a), in the amount required to
870	provide the actuarial equivalent of the accrued normal
871	retirement income, based on the police officer's credited
872	service and earnings to such date, and each former participant
873	then entitled to a benefit under the provisions of s. 185.19 who
874	has not by such date reached his or her normal retirement date,
875	in the amount required to provide the actuarial equivalent of
876	the accrued normal retirement income to which he or she is
877	entitled under s. 185.19, provided that, if such remaining asset
878	value is less than the aggregate of the amounts apportioned
879	hereunder, such latter amounts shall be proportionately reduced
880	so that the aggregate of such reduced amounts will be equal to
881	such remaining asset value.
882	(c)  If there is an asset value after the apportionments
883	under paragraphs (a) and (b), apportionment shall lastly be made
884	in respect of each police officer in the service of the
885	municipality on such date who is not entitled to an
886	apportionment under paragraphs (a) and (b) in the amount equal
887	to the police officer's total contributions to the plan to date
888	of termination, provided that, if such remaining asset value is
889	less than the aggregate of the amounts apportioned hereunder,
890	such latter amounts shall be proportionately reduced so that the
891	aggregate of such reduced amounts will be equal to such
892	remaining asset value.
893	(4)(d)  In the event that there is asset value remaining
894	after the full distribution apportionment specified in
895	subsection (3), and after the payment of any expenses incurred
896	with such distribution paragraphs (a), (b), and (c), such excess
897	shall be returned to the municipality, less return to the state
898	of the state's contributions, provided that, if the excess is
899	less than the total contributions made by the municipality and
900	the state to date of termination of the plan, such excess shall
901	be divided proportionately to the total contributions made by
902	the municipality and the state.
903	(5)(4)  The board of trustees shall distribute, in
904	accordance with the manner of distribution determined under
905	subsection (2), the amounts determined apportioned under
906	subsection (3).
907
908	If, after a period of 24 months after the date on which the plan
909	terminated or the date on which the board received written
910	notice that the contributions thereunder were being permanently
911	discontinued, the municipality or the board of trustees of the
912	municipal police officers' retirement trust fund affected has
913	not complied with all the provisions in this section, the
914	Department of Management Services division shall effect the
915	termination of the fund in accordance with this section.
916	Section 13.  This act shall take effect July 1, 2009.

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