CS/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22	increased, or repealed by an act of the Legislature;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. 175.101, F.S.;
27	clarifying boundaries of a special fire control district
28	for purposes of assessment and imposition of the excise
29	tax on property insurance premiums; amending s. 175.171,
30	F.S.; authorizing retired firefighters to change their
31	designation of joint annuitant or beneficiary up to two
32	times without the approval of the board of trustees or the
33	prior joint annuitant or beneficiary; conforming
34	provisions relating to joint pensioner or beneficiary to
35	reflect joint annuitant or beneficiary; amending s.
36	175.361, F.S.; revising fund distribution procedures with
37	respect to plan termination; providing that the Department
38	of Management Services shall effect the termination of the
39	fund; amending s. 185.02, F.S.; revising the definition of
40	the term "creditable service" for purposes of determining
41	credit for prior service as a police officer; amending s.
42	185.03, F.S.; clarifying the applicability of ch. 185,
43	F.S.; amending s. 185.05, F.S.; revising municipal police
44	officers' retirement trust fund board of trustee selection
45	procedures; authorizing the terms of office for the board
46	of trustees of the municipal police officers' retirement
47	trust fund to be revised under certain circumstances;
48	authorizing the plan administrator to withhold funds to
49	pay for premiums for accident, health, and long-term care
50	insurance for the retiree and the retiree's spouse and
51	dependents; providing an exemption from liability under
52	certain circumstances; amending s. 185.06, F.S.; requiring
53	the board of trustees to perform its powers subject to
54	certain fiduciary standards and ethics provisions;
55	increasing the percentage of assets of the municipal
56	police officers' retirement trust fund that the board of
57	trustees may invest in foreign securities on a market-
58	value basis; providing that the investment cap on foreign
59	securities may only be revised, amended, increased, or
60	repealed by an act of the Legislature; authorizing certain
61	individuals to sign drafts issued upon the municipal
62	police officers' retirement trust fund; requiring the
63	board of trustees to identify and divest of any
64	scrutinized companies by a certain date; amending s.
65	185.08, F.S.; making editorial changes; amending s.
66	185.161, F.S.; authorizing retired police officers to
67	change their designation of joint annuitant or beneficiary
68	up to two times without the approval of the board of
69	trustees or the prior joint annuitant or beneficiary;
70	conforming provisions relating to joint pensioner or
71	beneficiary to reflect joint annuitant or beneficiary;
72	amending s. 185.37, F.S.; revising fund distribution
73	procedures with respect to plan termination; providing
74	that the Department of Management Services shall effect
75	the termination of the fund; providing an effective date.
76
77	Be It Enacted by the Legislature of the State of Florida:
78
79	Section 1.  Paragraph (c) of subsection (4) and paragraph
80	(a) of subsection (8) of section 175.032, Florida Statutes, are
81	amended to read:
82	175.032  Definitions.--For any municipality, special fire
83	control district, chapter plan, local law municipality, local
84	law special fire control district, or local law plan under this
85	chapter, the following words and phrases have the following
86	meanings:
87	(4)  "Creditable service" or "credited service" means the
88	aggregate number of years of service, and fractional parts of
89	years of service, of any firefighter, omitting intervening years
90	and fractional parts of years when such firefighter may not have
91	been employed by the municipality or special fire control
92	district, subject to the following conditions:
93	(c)  Credited service under this chapter shall be provided
94	only for service as a firefighter, as defined in subsection (8),
95	or for military service and shall not include credit for any
96	other type of service. A municipality may, by local ordinance,
97	or a special fire control district may, by resolution, provide
98	for the purchase of credit for military service prior to
99	employment as well as for prior service as a firefighter for
100	some other employer as long as a firefighter is not entitled to
101	receive a benefit for such other prior service as a firefighter.
102	For purposes of determining credit for prior service as a
103	firefighter, in addition to service as a firefighter in this
104	state, credit may be given for federal, other state, or county
105	service, as long as such prior fire service is recognized by the
106	Division of State Fire Marshal as provided under chapter 633 or
107	the firefighter provides proof to the board of trustees that
108	such service is equivalent to the service required to meet the
109	definition of a firefighter under subsection (8).
110	(8)(a)  "Firefighter" means any person employed solely by a
111	constituted fire department of any municipality or special fire
112	control district who is certified as a firefighter as a
113	condition of employment in accordance with the provisions of s.
114	633.35 and whose duty it is to extinguish fires, to protect
115	life, or to protect property. "Firefighter" includes all
116	certified supervisory and command personnel whose duties
117	include, in whole or in part, the supervision, training,
118	guidance, and management responsibilities of full-time
119	firefighters, part-time firefighters, or auxiliary firefighters
120	but does not include part-time firefighters or auxiliary
121	firefighters. However, for purposes of this chapter only,
122	"firefighter" also includes public safety officers who are
123	responsible for performing both police and fire services, who
124	are certified as police officers or firefighters, and who are
125	certified by their employers to the Chief Financial Officer as
126	participating in this chapter prior to October 1, 1979.
127	Effective October 1, 1979, public safety officers who have not
128	been certified as participating in this chapter shall be
129	considered police officers for retirement purposes and shall be
130	eligible to participate in chapter 185. Any plan may provide
131	that the fire chief shall have an option to participate, or not,
132	in that plan.
133	Section 2.  Paragraph (a) of subsection (1) and subsection
134	(7) of section 175.061, Florida Statutes, are amended to read:
135	175.061  Board of trustees; members; terms of office;
136	meetings; legal entity; costs; attorney's fees.--For any
137	municipality, special fire control district, chapter plan, local
138	law municipality, local law special fire control district, or
139	local law plan under this chapter:
140	(1)  In each municipality and in each special fire control
141	district there is hereby created a board of trustees of the
142	firefighters' pension trust fund, which shall be solely
143	responsible for administering the trust fund. Effective October
144	1, 1986, and thereafter:
145	(a)  The membership of the board of trustees for a chapter
146	plan shall consist of five members, two of whom, unless
147	otherwise prohibited by law, shall be legal residents of the
148	municipality or special fire control district, who shall be
149	appointed by the governing body of the municipality or special
150	fire control district, and two of whom shall be full-time
151	firefighters as defined in s. 175.032 who shall be elected by a
152	majority of the active firefighters who are members of such
153	plan. With respect to any chapter plan or local law plan that,
154	on January 1, 1997, allowed retired firefighters to vote in such
155	elections, retirees may continue to vote in such elections. The
156	fifth member shall be chosen by a majority of the previous four
157	members as provided for herein, and such person's name shall be
158	submitted to the governing body of the municipality or special
159	fire control district. Upon receipt of the fifth person's name,
160	the governing body of the municipality or special fire control
161	district shall, as a ministerial duty, appoint such person to
162	the board of trustees as its fifth member. The fifth member
163	shall have the same rights as each of the other four members
164	appointed or elected as herein provided, shall serve as trustee
165	for a period of 2 years, and may succeed himself or herself in
166	office. Each resident member shall serve as trustee for a period
167	of 2 years, unless sooner replaced by the governing body at
168	whose pleasure he or she shall serve, and may succeed himself or
169	herself as a trustee. Each firefighter member shall serve as
170	trustee for a period of 2 years, unless he or she sooner leaves
171	the employment of the municipality or special fire control
172	district as a firefighter, whereupon a successor shall be chosen
173	in the same manner as an original appointment. Each firefighter
174	may succeed himself or herself in office. The terms of office of
175	the appointed and elected members of the board of trustees may
176	be amended by municipal ordinance, special act of the
177	Legislature, or resolution adopted by the governing body of the
178	special fire control district to extend the terms of office from
179	2 years to 4 years. The length of the terms of office shall be
180	the same for all board members.
181	(7)  The board of trustees may, upon written request by the
182	retiree of the plan, or by a dependent, when authorized by the
183	retiree or the retiree's beneficiary, authorize the plan
184	administrator to withhold from the monthly retirement payment
185	those funds that are necessary to pay for the benefits being
186	received through the governmental entity from which the employee
187	retired, to pay the certified bargaining agent of the
188	governmental entity, and to make any payments for child support
189	or alimony. Further, the board of trustees may, upon the written
190	request of the retiree of the plan, authorize the plan
191	administrator to withhold from the retirement payment those
192	funds that are necessary to pay for premiums for accident,
193	health, and long-term care insurance for the retiree and the
194	retiree's spouse and dependents. A retirement plan does not
195	incur any liability for participation in this permissive program
196	if its actions are taken in good faith.
197	Section 3.  Subsection (1) of section 175.071, Florida
198	Statutes, is amended, and subsection (8) is added to that
199	section, to read:
200	175.071  General powers and duties of board of
201	trustees.--For any municipality, special fire control district,
202	chapter plan, local law municipality, local law special fire
203	control district, or local law plan under this chapter:
204	(1)  The board of trustees, subject to the fiduciary
205	standards in ss. 112.656, 112.661, and 518.11 and the Code of
206	Ethics in ss. 112.311-112.3187, may:
207	(a)  Invest and reinvest the assets of the firefighters'
208	pension trust fund in annuity and life insurance contracts of
209	life insurance companies in amounts sufficient to provide, in
210	whole or in part, the benefits to which all of the participants
211	in the firefighters' pension trust fund shall be entitled under
212	the provisions of this chapter and pay the initial and
213	subsequent premiums thereon.
214	(b)  Invest and reinvest the assets of the firefighters'
215	pension trust fund in:
216	1.  Time or savings accounts of a national bank, a state
217	bank insured by the Bank Insurance Fund, or a savings, building,
218	and loan association insured by the Savings Association
219	Insurance Fund which is administered by the Federal Deposit
220	Insurance Corporation or a state or federal chartered credit
221	union whose share accounts are insured by the National Credit
222	Union Share Insurance Fund.
223	2.  Obligations of the United States or obligations
224	guaranteed as to principal and interest by the government of the
225	United States.
226	3.  Bonds issued by the State of Israel.
227	4.  Bonds, stocks, or other evidences of indebtedness
228	issued or guaranteed by a corporation organized under the laws
229	of the United States, any state or organized territory of the
230	United States, or the District of Columbia, provided:
231	a.  The corporation is listed on any one or more of the
232	recognized national stock exchanges or on the National Market
233	System of the NASDAQ Stock Market and, in the case of bonds
234	only, holds a rating in one of the three highest classifications
235	by a major rating service; and
236	b.  The board of trustees shall not invest more than 5
237	percent of its assets in the common stock or capital stock of
238	any one issuing company, nor shall the aggregate investment in
239	any one issuing company exceed 5 percent of the outstanding
240	capital stock of that company or the aggregate of its
241	investments under this subparagraph at cost exceed 50 percent of
242	the assets of the fund.
243
244	This paragraph shall apply to all boards of trustees and
245	participants. However, in the event that a municipality or
246	special fire control district has a duly enacted pension plan
247	pursuant to, and in compliance with, s. 175.351, and the
248	trustees thereof desire to vary the investment procedures
249	herein, the trustees of such plan shall request a variance of
250	the investment procedures as outlined herein only through a
251	municipal ordinance, special act of the Legislature, or
252	resolution by the governing body of the special fire control
253	district; where a special act, or a municipality by ordinance
254	adopted prior to July 1, 1998, permits a greater than 50-percent
255	equity investment, such municipality shall not be required to
256	comply with the aggregate equity investment provisions of this
257	paragraph. Notwithstanding any other provision of law to the
258	contrary, nothing in this section may be construed to take away
259	any preexisting legal authority to make equity investments that
260	exceed the requirements of this paragraph. Notwithstanding any
261	law to the contrary, the board of trustees may invest up to 25
262	10 percent of plan assets in foreign securities on a market-
263	value basis. The investment cap on foreign securities may not be
264	revised, amended, increased, or repealed except as provided by
265	general law.
266	(c)  Issue drafts upon the firefighters' pension trust fund
267	pursuant to this act and rules and regulations prescribed by the
268	board of trustees. All such drafts shall be consecutively
269	numbered, be signed by the chair and secretary or by two
270	individuals designated by the board who are subject to the same
271	fiduciary standards as required for the board of trustees under
272	this subsection, and state upon their faces the purpose for
273	which the drafts are drawn. The treasurer or depository of each
274	municipality or special fire control district shall retain such
275	drafts when paid, as permanent vouchers for disbursements made,
276	and no money shall be otherwise drawn from the fund.
277	(d)  Convert into cash any securities of the fund.
278	(e)  Keep a complete record of all receipts and
279	disbursements and of the board's acts and proceedings.
280	(8)  Notwithstanding the provisions of paragraph (1)(b) and
281	as provided in s. 215.473, the board of trustees shall identify
282	and publicly report any direct or indirect holdings it may have
283	in any scrutinized company, as defined in s. 215.473, and
284	proceed to sell, redeem, divest, or withdraw all publicly traded
285	securities it may have in such company beginning January 1,
286	2010. The divestiture of any such security must be completed by
287	March 1, 2010. The board and its named officers or investment
288	advisors may not be deemed to have breached their fiduciary duty
289	in any action taken to dispose of any such security, and the
290	board shall have satisfactorily discharged the fiduciary duties
291	of loyalty, prudence, and sole and exclusive benefit to the
292	participants of the pension fund and their beneficiaries if the
293	actions it takes are consistent with the duties imposed by s.
294	215.473, and the manner of the disposition, if any, is
295	reasonable as to the means chosen. For the purposes of effecting
296	compliance with s. 215.473, the pension fund shall designate
297	terror-free plans that allocate their funds among securities not
298	subject to divestiture. No person may bring any civil, criminal,
299	or administrative action against the board of trustees or any
300	employee, officer, director, or advisor of such pension fund
301	based upon the divestiture of any security pursuant to this
302	subsection.
303	Section 4.  Subsection (1) of section 175.101, Florida
304	Statutes, is amended to read:
305	175.101  State excise tax on property insurance premiums
306	authorized; procedure.--For any municipality, special fire
307	control district, chapter plan, local law municipality, local
308	law special fire control district, or local law plan under this
309	chapter:
310	(1)  Each municipality or special fire control district in
311	this state described and classified in s. 175.041, having a
312	lawfully established firefighters' pension trust fund or
313	municipal fund or special fire control district fund, by
314	whatever name known, providing pension benefits to firefighters
315	as provided under this chapter, may assess and impose on every
316	insurance company, corporation, or other insurer now engaged in
317	or carrying on, or who shall hereinafter engage in or carry on,
318	the business of property insurance as shown by the records of
319	the Office of Insurance Regulation of the Financial Services
320	Commission an excise tax in addition to any lawful license or
321	excise tax now levied by each of the municipalities or special
322	fire control districts, respectively, amounting to 1.85 percent
323	of the gross amount of receipts of premiums from policyholders
324	on all premiums collected on property insurance policies
325	covering property within the corporate limits of such
326	municipalities or within the legally defined boundaries of
327	special fire control districts, respectively. Whenever the
328	boundaries of a special fire control district that has lawfully
329	established a firefighters' pension trust fund encompass a
330	portion of the corporate territory of a municipality that has
331	also lawfully established a firefighters' pension trust fund,
332	that portion of the tax receipts attributable to insurance
333	policies covering property situated both within the municipality
334	and the special fire control district shall be given to the fire
335	service provider. For the purpose of this section, the
336	boundaries of a special fire control district shall be deemed to
337	include an area that has been annexed until the completion of
338	the 4-year period provided for in s. 171.093(4), or other
339	agreed-upon extension, or when a special fire control district
340	is providing services pursuant to an interlocal agreement
341	executed pursuant to s. 171.093(3). The agent shall identify the
342	fire service provider on the property owner's application for
343	insurance. Remaining revenues collected pursuant to this chapter
344	shall be distributed to the municipality or special fire control
345	district according to the location of the insured property.
346
347	This section also applies to any municipality consisting of a
348	single consolidated government which is made up of a former
349	county and one or more municipalities, consolidated pursuant to
350	the authority in s. 3 or s. 6(e), Art. VIII of the State
351	Constitution, and to property insurance policies covering
352	property within the boundaries of the consolidated government,
353	regardless of whether the properties are located within one or
354	more separately incorporated areas within the consolidated
355	government, provided the properties are being provided fire
356	protection services by the consolidated government. This section
357	also applies to any municipality, as provided in s.
358	175.041(3)(c), which has entered into an interlocal agreement to
359	receive fire protection services from another municipality
360	participating under this chapter. The excise tax may be levied
361	on all premiums collected on property insurance policies
362	covering property located within the corporate limits of the
363	municipality receiving the fire protection services, but will be
364	available for distribution to the municipality providing the
365	fire protection services.
366	Section 5.  Paragraphs (b) and (c) of subsection (1) and
367	paragraph (b) of subsection (2) of section 175.171, Florida
368	Statutes, are amended to read:
369	175.171  Optional forms of retirement income.--For any
370	municipality, special fire control district, chapter plan, local
371	law municipality, local law special fire control district, or
372	local law plan under this chapter:
373	(1)  In lieu of the amount and form of retirement income
374	payable in the event of normal or early retirement as specified
375	in s. 175.162, a firefighter, upon written request to the board
376	of trustees and subject to the approval of the board of
377	trustees, may elect to receive a retirement income or benefit of
378	equivalent actuarial value payable in accordance with one of the
379	following options:
380	(b)  A retirement income of a modified monthly amount,
381	payable to the firefighter during the joint lifetime of the
382	firefighter and a joint annuitant pensioner designated by the
383	firefighter, and following the death of either of them, 100
384	percent, 75 percent, 66 2/3 percent, or 50 percent of such
385	monthly amounts payable to the survivor for the lifetime of the
386	survivor.
387	(c)  Such other amount and form of retirement payments or
388	benefits as, in the opinion of the board of trustees, will best
389	meet the circumstances of the retiring firefighter.
390	1.  The firefighter upon electing any option of this
391	section shall will designate the joint annuitant pensioner or
392	beneficiary (or beneficiaries) to receive the benefit, if any,
393	payable under the plan in the event of his or her death, and may
394	will have the power to change such designation from time to
395	time, but any such change shall be deemed a new election and is
396	will be subject to approval by the board of trustees. Such
397	designation must will name a joint annuitant pensioner or one or
398	more primary beneficiaries where applicable. If a firefighter
399	has elected an option with a joint annuitant pensioner or
400	beneficiary and his or her retirement income benefits have
401	commenced, the firefighter may thereafter change the designated
402	joint annuitant pensioner or beneficiary, but only if the board
403	of trustees consents to such change and if the joint annuitant
404	pensioner last previously designated by the firefighter is alive
405	when the firefighter files with the board of trustees a request
406	for such change.
407	2.  The consent of a firefighter's joint annuitant
408	pensioner or beneficiary to any such change is shall not be
409	required.
410	3.  The board of trustees may request such evidence of the
411	good health of the joint annuitant pensioner that is being
412	removed as it may require and the amount of the retirement
413	income payable to the firefighter upon designation of a new
414	joint annuitant pensioner shall be actuarially redetermined
415	taking into account the age and gender sex of the former joint
416	annuitant pensioner, the new joint annuitant pensioner, and the
417	firefighter. Each such designation shall will be made in writing
418	on a form prepared by the board of trustees and on completion
419	will be filed with the board of trustees. If In the event that
420	no designated beneficiary survives the firefighter, such
421	benefits as are payable in the event of the death of the
422	firefighter subsequent to his or her retirement shall be paid as
423	provided in s. 175.181.
424	4.  Notwithstanding the provisions of this paragraph, a
425	retired firefighter may change his or her designation of joint
426	annuitant or beneficiary up to two times as provided in s.
427	175.333 without the approval of the board of trustees or the
428	current joint annuitant or beneficiary. The retiree need not
429	provide proof of the good health of the joint annuitant or
430	beneficiary being removed, and the joint annuitant or
431	beneficiary being removed need not be living.
432	(2)  Retirement income payments shall be made under the
433	option elected in accordance with the provisions of this section
434	and shall be subject to the following limitations:
435	(b)  If the designated beneficiary (or beneficiaries) or
436	joint annuitant pensioner dies before the firefighter's
437	retirement under the plan, the option elected will be canceled
438	automatically and a retirement income of the normal form and
439	amount will be payable to the firefighter upon retirement as if
440	the election had not been made, unless a new election is made in
441	accordance with the provisions of this section or a new
442	beneficiary is designated by the firefighter before his or her
443	prior to retirement and within 90 days after the death of the
444	beneficiary.
445	Section 6.  Section 175.361, Florida Statutes, is amended
446	to read:
447	175.361  Termination of plan and distribution of fund.--For
448	any municipality, special fire control district, chapter plan,
449	local law municipality, local law special fire control district,
450	or local law plan under this chapter, the plan may be terminated
451	by the municipality or special fire control district. Upon
452	termination of the plan by the municipality or special fire
453	control district for any reason or because of a transfer,
454	merger, or consolidation of governmental units, services, or
455	functions as provided in chapter 121, or upon written notice by
456	the municipality or special fire control district to the board
457	of trustees that contributions under the plan are being
458	permanently discontinued, the rights of all employees to
459	benefits accrued to the date of such termination and the amounts
460	credited to the employees' accounts are nonforfeitable. The fund
461	shall be apportioned and distributed in accordance with the
462	following procedures:
463	(1)  The board of trustees shall determine the date of
464	distribution and the asset value required to fund all the
465	nonforfeitable benefits to be distributed, after taking into
466	account the expenses of such distribution. The board shall
467	inform the municipality or special fire control district if
468	additional assets are required, in which event the municipality
469	or special fire control district shall continue to financially
470	support the plan until all nonforfeitable benefits have been
471	funded.
472	(2)  The board of trustees shall determine the method of
473	distribution of the asset value, that is, whether distribution
474	shall be by payment in cash, by the maintenance of another or
475	substituted trust fund, by the purchase of insured annuities, or
476	otherwise, for each firefighter entitled to benefits under the
477	plan as specified in subsection (3).
478	(3)  The board of trustees shall distribute apportion the
479	asset value as of the date of termination in the manner set
480	forth in this subsection, on the basis that the amount required
481	to provide any given retirement income shall mean the
482	actuarially computed single-sum value of such retirement income,
483	except that if the method of distribution determined under
484	subsection (2) involves the purchase of an insured annuity, the
485	amount required to provide the given retirement income shall
486	mean the single premium payable for such annuity. The actuarial
487	single-sum value shall not be less than the employee's
488	accumulated contributions to the plan, with interest if provided
489	by the plan, less the value of any plan benefits previously paid
490	to the employee.
491	(a)  Apportionment shall first be made in respect of each
492	retired firefighter receiving a retirement income hereunder on
493	such date, each person receiving a retirement income on such
494	date on account of a retired (but since deceased) firefighter,
495	and each firefighter who has, by such date, become eligible for
496	normal retirement but has not yet retired, in the amount
497	required to provide such retirement income, provided that, if
498	such asset value is less than the aggregate of such amounts,
499	such amounts shall be proportionately reduced so that the
500	aggregate of such reduced amounts will be equal to such asset
501	value.
502	(b)  If there is any asset value remaining after the
503	apportionment under paragraph (a), apportionment shall next be
504	made in respect of each firefighter in the service of the
505	municipality or special fire control district on such date who
506	has completed at least 10 years of credited service, in the
507	firefighters' pension trust fund for at least 10 years, and who
508	is not entitled to an apportionment under paragraph (a), in the
509	amount required to provide the actuarial equivalent of the
510	accrued normal retirement income, based on the firefighter's
511	credited service and earnings to such date, and each former
512	participant then entitled to a benefit under the provisions of
513	s. 175.211 who has not by such date reached his or her normal
514	retirement date, in the amount required to provide the actuarial
515	equivalent of the accrued normal retirement income to which he
516	or she is entitled under s. 175.211; provided that, if such
517	remaining asset value is less than the aggregate of the amounts
518	apportioned hereunder, such latter amounts shall be
519	proportionately reduced so that the aggregate of such reduced
520	amounts will be equal to such remaining asset value.
521	(c)  If there is any asset value after the apportionments
522	under paragraphs (a) and (b), apportionment shall lastly be made
523	in respect of each firefighter in the service of the
524	municipality or special fire control district on such date who
525	is not entitled to an apportionment under paragraphs (a) and (b)
526	in the amount equal to the firefighter's total contributions to
527	the plan to date of termination; provided that, if such
528	remaining asset value is less than the aggregate of the amounts
529	apportioned hereunder, such latter amounts shall be
530	proportionately reduced so that the aggregate of such reduced
531	amounts will be equal to such remaining asset value.
532	(4)(d)  In the event that there is asset value remaining
533	after the full distribution apportionment specified in
534	subsection (3), and after the payment of any expenses incurred
535	with such distribution paragraphs (a), (b), and (c), such excess
536	shall be returned to the municipality or special fire control
537	district, less return to the state of the state's contributions,
538	provided that, if the excess is less than the total
539	contributions made by the municipality or special fire control
540	district and the state to date of termination of the plan, such
541	excess shall be divided proportionately to the total
542	contributions made by the municipality or special fire control
543	district and the state.
544	(5)(4)  The board of trustees shall distribute, in
545	accordance with the manner of distribution determined under
546	subsection (2), the amounts determined apportioned under
547	subsection (3).
548
549	If, after a period of 24 months after the date on which the plan
550	terminated or the date on which the board received written
551	notice that the contributions thereunder were being permanently
552	discontinued, the municipality or special fire control district
553	or the board of trustees of the firefighters' pension trust fund
554	affected has not complied with all the provisions in this
555	section, the Department of Management Services division shall
556	effect the termination of the fund in accordance with this
557	section.
558	Section 7.  Paragraph (c) of subsection (5) of section
559	185.02, Florida Statutes, is amended to read:
560	185.02  Definitions.--For any municipality, chapter plan,
561	local law municipality, or local law plan under this chapter,
562	the following words and phrases as used in this chapter shall
563	have the following meanings, unless a different meaning is
564	plainly required by the context:
565	(5)  "Creditable service" or "credited service" means the
566	aggregate number of years of service and fractional parts of
567	years of service of any police officer, omitting intervening
568	years and fractional parts of years when such police officer may
569	not have been employed by the municipality subject to the
570	following conditions:
571	(c)  Credited service under this chapter shall be provided
572	only for service as a police officer, as defined in subsection
573	(11), or for military service and shall not include credit for
574	any other type of service. A municipality may, by local
575	ordinance, provide for the purchase of credit for military
576	service occurring prior to employment as well as prior service
577	as a police officer for some other employer as long as the
578	police officer is not entitled to receive a benefit for such
579	other prior service as a police officer. For purposes of
580	determining credit for prior service as a police officer, in
581	addition to service as a police officer in this state, credit
582	may be given for federal, other state, or county service, as
583	long as such prior police service is recognized by the Criminal
584	Justice Standards and Training Commission within the Department
585	of Law Enforcement as provided under chapter 943 or the police
586	officer provides proof to the board of trustees that such
587	service is equivalent to the service required to meet the
588	definition of a police officer under subsection (11).
589	Section 8.  Subsection (2) of section 185.03, Florida
590	Statutes, is amended to read:
591	185.03  Municipal police officers' retirement trust funds;
592	creation; applicability of provisions; participation by public
593	safety officers.--For any municipality, chapter plan, local law
594	municipality, or local law plan under this chapter:
595	(2)  The provisions of This chapter applies shall apply
596	only to municipalities organized and established under pursuant
597	to the laws of the state, and does said provisions shall not
598	apply to the unincorporated areas of any county or counties or
599	nor shall the provisions hereof apply to any governmental entity
600	whose police officers are eligible to participate in the Florida
601	Retirement System.
602	Section 9.  Paragraph (a) of subsection (1) and subsection
603	(6) of section 185.05, Florida Statutes, are amended to read:
604	185.05  Board of trustees; members; terms of office;
605	meetings; legal entity; costs; attorney's fees.--For any
606	municipality, chapter plan, local law municipality, or local law
607	plan under this chapter:
608	(1)  In each municipality described in s. 185.03 there is
609	hereby created a board of trustees of the municipal police
610	officers' retirement trust fund, which shall be solely
611	responsible for administering the trust fund. Effective October
612	1, 1986, and thereafter:
613	(a)  The membership of the board of trustees for chapter
614	plans shall consist of five members, two of whom, unless
615	otherwise prohibited by law, shall be legal residents of the
616	municipality, who shall be appointed by the legislative body of
617	the municipality, and two of whom shall be police officers as
618	defined in s. 185.02 who shall be elected by a majority of the
619	active police officers who are members of such plan. With
620	respect to any chapter plan or local law plan that, on January
621	1, 1997, allowed retired police officers to vote in such
622	elections, retirees may continue to vote in such elections. The
623	fifth member shall be chosen by a majority of the previous four
624	members, and such person's name shall be submitted to the
625	legislative body of the municipality. Upon receipt of the fifth
626	person's name, the legislative body of the municipality shall,
627	as a ministerial duty, appoint such person to the board of
628	trustees as its fifth member. The fifth member shall have the
629	same rights as each of the other four members appointed or
630	elected as herein provided, shall serve as trustee for a period
631	of 2 years, and may succeed himself or herself in office. Each
632	resident member shall serve as trustee for a period of 2 years,
633	unless sooner replaced by the legislative body at whose pleasure
634	the member shall serve, and may succeed himself or herself as a
635	trustee. Each police officer member shall serve as trustee for a
636	period of 2 years, unless he or she sooner leaves the employment
637	of the municipality as a police officer, whereupon the
638	legislative body of the municipality shall choose a successor
639	shall be chosen in the same manner as an original appointment.
640	Each police officer may succeed himself or herself in office.
641	The terms of office of the appointed and elected members of the
642	board of trustees may be amended by municipal ordinance or
643	special act of the Legislature to extend the terms of office
644	from 2 years to 4 years. The length of the terms of office shall
645	be the same for all board members.
646	(6)  The board of trustees may, upon written request by the
647	retiree of the plan, or by a dependent, when authorized by the
648	retiree or the retiree's beneficiary, authorize the plan
649	administrator to withhold from the monthly retirement payment
650	those funds that are necessary to pay for the benefits being
651	received through the governmental entity from which the employee
652	retired, to pay the certified bargaining agent of the
653	governmental entity, and to make any payments for child support
654	or alimony. Further, the board of trustees may, upon the written
655	request of the retiree of the plan, authorize the plan
656	administrator to withhold from the retirement payment those
657	funds that are necessary to pay for premiums for accident,
658	health, and long-term care insurance for the retiree and the
659	retiree's spouse and dependents. A retirement plan does not
660	incur any liability for participation in this permissive program
661	if its actions are taken in good faith.
662	Section 10.  Subsection (1) of section 185.06, Florida
663	Statutes, is amended, and subsection (7) is added to that
664	section, to read:
665	185.06  General powers and duties of board of
666	trustees.--For any municipality, chapter plan, local law
667	municipality, or local law plan under this chapter:
668	(1)  The board of trustees, subject to the fiduciary
669	standards in ss. 112.656, 112.661, and 518.11 and the Code of
670	Ethics in ss. 112.311-112.3187, may:
671	(a)  Invest and reinvest the assets of the retirement trust
672	fund in annuity and life insurance contracts of life insurance
673	companies in amounts sufficient to provide, in whole or in part,
674	the benefits to which all of the participants in the municipal
675	police officers' retirement trust fund shall be entitled under
676	the provisions of this chapter, and pay the initial and
677	subsequent premiums thereon.
678	(b)  Invest and reinvest the assets of the retirement trust
679	fund in:
680	1.  Time or savings accounts of a national bank, a state
681	bank insured by the Bank Insurance Fund, or a savings and loan
682	association insured by the Savings Association Insurance Fund
683	which is administered by the Federal Deposit Insurance
684	Corporation or a state or federal chartered credit union whose
685	share accounts are insured by the National Credit Union Share
686	Insurance Fund.
687	2.  Obligations of the United States or obligations
688	guaranteed as to principal and interest by the United States.
689	3.  Bonds issued by the State of Israel.
690	4.  Bonds, stocks, or other evidences of indebtedness
691	issued or guaranteed by a corporation organized under the laws
692	of the United States, any state or organized territory of the
693	United States, or the District of Columbia, provided:
694	a.  The corporation is listed on any one or more of the
695	recognized national stock exchanges or on the National Market
696	System of the NASDAQ Stock Market and, in the case of bonds
697	only, holds a rating in one of the three highest classifications
698	by a major rating service; and
699	b.  The board of trustees shall not invest more than 5
700	percent of its assets in the common stock or capital stock of
701	any one issuing company, nor shall the aggregate investment in
702	any one issuing company exceed 5 percent of the outstanding
703	capital stock of the company or the aggregate of its investments
704	under this subparagraph at cost exceed 50 percent of the fund's
705	assets.
706
707	This paragraph shall apply to all boards of trustees and
708	participants. However, in the event that a municipality has a
709	duly enacted pension plan pursuant to, and in compliance with,
710	s. 185.35 and the trustees thereof desire to vary the investment
711	procedures herein, the trustees of such plan shall request a
712	variance of the investment procedures as outlined herein only
713	through a municipal ordinance or special act of the Legislature;
714	where a special act, or a municipality by ordinance adopted
715	prior to July 1, 1998, permits a greater than 50-percent equity
716	investment, such municipality shall not be required to comply
717	with the aggregate equity investment provisions of this
718	paragraph. Notwithstanding any other provision of law to the
719	contrary, nothing in this section may be construed to take away
720	any preexisting legal authority to make equity investments that
721	exceed the requirements of this paragraph. Notwithstanding any
722	law to the contrary, the board of trustees may invest up to 25
723	10 percent of plan assets in foreign securities on a market-
724	value basis. The investment cap on foreign securities may not be
725	revised, amended, increased, or repealed except as provided by
726	general law.
727	(c)  Issue drafts upon the municipal police officers'
728	retirement trust fund pursuant to this act and rules and
729	regulations prescribed by the board of trustees. All such drafts
730	shall be consecutively numbered, be signed by the chair and
731	secretary or by two individuals designated by the board who are
732	subject to the same fiduciary standards as required for the
733	board of trustees under this subsection, and state upon their
734	faces the purposes for which the drafts are drawn. The city
735	treasurer or other depository shall retain such drafts when
736	paid, as permanent vouchers for disbursements made, and no money
737	shall otherwise be drawn from the fund.
738	(d)  Finally decide all claims to relief under the board's
739	rules and regulations and pursuant to the provisions of this
740	act.
741	(e)  Convert into cash any securities of the fund.
742	(f)  Keep a complete record of all receipts and
743	disbursements and of the board's acts and proceedings.
744	(7)  Notwithstanding the provisions of paragraph (1)(b) and
745	as provided in s. 215.473, the board of trustees shall identify
746	and publicly report any direct or indirect holdings it may have
747	in any scrutinized company, as defined in s. 215.473, and
748	proceed to sell, redeem, divest, or withdraw all publicly traded
749	securities it may have in such company beginning January 1,
750	2010. The divestiture of any such security must be completed by
751	March 1, 2010. The board and its named officers or investment
752	advisors may not be deemed to have breached their fiduciary duty
753	in any action taken to dispose of any such security, and the
754	board shall have satisfactorily discharged the fiduciary duties
755	of loyalty, prudence, and sole and exclusive benefit to the
756	participants of the pension fund and their beneficiaries if the
757	actions it takes are consistent with the duties imposed by s.
758	215.473, and the manner of the disposition, if any, is
759	reasonable as to the means chosen. For the purposes of effecting
760	compliance with s. 215.473, the pension fund shall designate
761	terror-free plans that allocate their funds among securities not
762	subject to divestiture. No person may bring any civil, criminal,
763	or administrative action against the board of trustees or any
764	employee, officer, director, or advisor of such pension fund
765	based upon the divestiture of any security pursuant to this
766	subsection.
767	Section 11.  Section 185.08, Florida Statutes, is amended
768	to read:
769	185.08  State excise tax on casualty insurance premiums
770	authorized; procedure.--For any municipality, chapter plan,
771	local law municipality, or local law plan under this chapter:
772	(1)  Each incorporated municipality in this state described
773	and classified in s. 185.03, as well as each other city or town
774	of this state which on July 31, 1953, had a lawfully established
775	municipal police officers' retirement trust fund or city fund,
776	by whatever name known, providing pension or relief benefits to
777	police officers as provided under this chapter, may assess and
778	impose on every insurance company, corporation, or other insurer
779	now engaged in or carrying on, or who shall hereafter engage in
780	or carry on, the business of casualty insurance as shown by
781	records of the Office of Insurance Regulation of the Financial
782	Services Commission, an excise tax in addition to any lawful
783	license or excise tax now levied by each of the said
784	municipalities, respectively, amounting to .85 percent of the
785	gross amount of receipts of premiums from policyholders on all
786	premiums collected on casualty insurance policies covering
787	property within the corporate limits of such municipalities,
788	respectively.
789	(2)  In the case of multiple peril policies with a single
790	premium for both property and casualty coverages in such
791	policies, 30 percent of such premium shall be used as the basis
792	for the .85-percent tax above.
793	(3)  The excise tax shall be payable annually March 1 of
794	each year after the passing of an ordinance assessing and
795	imposing the tax herein authorized. Installments of taxes shall
796	be paid according to the provisions of s. 624.5092(2)(a), (b),
797	and (c).
798	Section 12.  Subsection (1) and paragraph (b) of subsection
799	(2) of section 185.161, Florida Statutes, are amended to read:
800	185.161  Optional forms of retirement income.--For any
801	municipality, chapter plan, local law municipality, or local law
802	plan under this chapter:
803	(1)(a)  In lieu of the amount and form of retirement income
804	payable in the event of normal or early retirement as specified
805	in s. 185.16, a police officer, upon written request to the
806	board of trustees and subject to the approval of the board of
807	trustees, may elect to receive a retirement income or benefit of
808	equivalent actuarial value payable in accordance with one of the
809	following options:
810	1.  A retirement income of larger monthly amount, payable
811	to the police officer for his or her lifetime only.
812	2.  A retirement income of a modified monthly amount,
813	payable to the police officer during the joint lifetime of the
814	police officer and a joint annuitant pensioner designated by the
815	police officer, and following the death of either of them, 100
816	percent, 75 percent, 66 2/3 percent, or 50 percent of such
817	monthly amount payable to the survivor for the lifetime of the
818	survivor.
819	3.  Such other amount and form of retirement payments or
820	benefit as, in the opinion of the board of trustees, will best
821	meet the circumstances of the retiring police officer.
822	(b)  The police officer upon electing any option of this
823	section shall will designate the joint annuitant pensioner or
824	beneficiary (or beneficiaries) to receive the benefit, if any,
825	payable under the plan in the event of the police officer's
826	death, and may will have the power to change such designation
827	from time to time but any such change shall be deemed a new
828	election and is will be subject to approval by the pension
829	committee. Such designation must will name a joint annuitant
830	pensioner or one or more primary beneficiaries where applicable.
831	If a police officer has elected an option with a joint annuitant
832	pensioner or beneficiary and his or her retirement income
833	benefits have commenced, he or she may thereafter change the
834	designated joint annuitant pensioner or beneficiary but only if
835	the board of trustees consents to such change and if the joint
836	annuitant pensioner last previously designated by the police
837	officer is alive when he or she files with the board of trustees
838	a request for such change. The consent of a police officer's
839	joint annuitant pensioner or beneficiary to any such change is
840	shall not be required. The board of trustees may request such
841	evidence of the good health of the joint annuitant pensioner
842	that is being removed as it may require and the amount of the
843	retirement income payable to the police officer upon the
844	designation of a new joint annuitant pensioner shall be
845	actuarially redetermined taking into account the ages and gender
846	sex of the former joint annuitant pensioner, the new joint
847	annuitant pensioner, and the police officer. Each such
848	designation shall will be made in writing on a form prepared by
849	the board of trustees, and on completion will be filed with the
850	board of trustees. If In the event that no designated
851	beneficiary survives the police officer, such benefits as are
852	payable in the event of the death of the police officer
853	subsequent to his or her retirement shall be paid as provided in
854	s. 185.162.
855	(c)  Notwithstanding paragraph (b), a retired police
856	officer may change his or her designation of joint annuitant or
857	beneficiary up to two times as provided in s. 185.341 without
858	the approval of the board of trustees or the current joint
859	annuitant or beneficiary. The retiree need not provide proof of
860	the good health of the joint annuitant or beneficiary being
861	removed, and the joint annuitant or beneficiary being removed
862	need not be living.
863	(2)  Retirement income payments shall be made under the
864	option elected in accordance with the provisions of this section
865	and shall be subject to the following limitations:
866	(b)  If the designated beneficiary (or beneficiaries) or
867	joint annuitant pensioner dies before the police officer's
868	retirement under the plan, the option elected will be canceled
869	automatically and a retirement income of the normal form and
870	amount will be payable to the police officer upon his or her
871	retirement as if the election had not been made, unless a new
872	election is made in accordance with the provisions of this
873	section or a new beneficiary is designated by the police officer
874	before prior to his or her retirement and within 90 days after
875	the death of the beneficiary.
876	Section 13.  Section 185.37, Florida Statutes, is amended
877	to read:
878	185.37  Termination of plan and distribution of fund.--For
879	any municipality, chapter plan, local law municipality, or local
880	law plan under this chapter, the plan may be terminated by the
881	municipality. Upon termination of the plan by the municipality
882	for any reason, or because of a transfer, merger, or
883	consolidation of governmental units, services, or functions as
884	provided in chapter 121, or upon written notice to the board of
885	trustees by the municipality that contributions under the plan
886	are being permanently discontinued, the rights of all employees
887	to benefits accrued to the date of such termination or
888	discontinuance and the amounts credited to the employees'
889	accounts are nonforfeitable. The fund shall be apportioned and
890	distributed in accordance with the following procedures:
891	(1)  The board of trustees shall determine the date of
892	distribution and the asset value required to fund all the
893	nonforfeitable benefits to be distributed, after taking into
894	account the expenses of such distribution. The board shall
895	inform the municipality if additional assets are required, in
896	which event the municipality shall continue to financially
897	support the plan until all nonforfeitable benefits have been
898	funded.
899	(2)  The board of trustees shall determine the method of
900	distribution of the asset value, that is, whether distribution
901	shall be by payment in cash, by the maintenance of another or
902	substituted trust fund, by the purchase of insured annuities, or
903	otherwise, for each police officer entitled to benefits under
904	the plan, as specified in subsection (3).
905	(3)  The board of trustees shall distribute apportion the
906	asset value as of the date of termination in the manner set
907	forth in this subsection, on the basis that the amount required
908	to provide any given retirement income shall mean the
909	actuarially computed single-sum value of such retirement income,
910	except that if the method of distribution determined under
911	subsection (2) involves the purchase of an insured annuity, the
912	amount required to provide the given retirement income shall
913	mean the single premium payable for such annuity. The actuarial
914	single-sum value shall not be less than the employee's
915	accumulated contributions to the plan, with interest if provided
916	by the plan, less the value of any plan benefits previously paid
917	to the employee.
918	(a)  Apportionment shall first be made in respect of each
919	retired police officer receiving a retirement income hereunder
920	on such date, each person receiving a retirement income on such
921	date on account of a retired (but since deceased) police
922	officer, and each police officer who has, by such date, become
923	eligible for normal retirement but has not yet retired, in the
924	amount required to provide such retirement income, provided
925	that, if such asset value is less than the aggregate of such
926	amounts, such amounts shall be proportionately reduced so that
927	the aggregate of such reduced amounts will be equal to such
928	asset value.
929	(b)  If there is any asset value remaining after the
930	apportionment under paragraph (a), apportionment shall next be
931	made in respect of each police officer in the service of the
932	municipality on such date who has completed at least 10 years of
933	credited service, in the municipal police officers' retirement
934	trust fund for at least 10 years, and who is not entitled to an
935	apportionment under paragraph (a), in the amount required to
936	provide the actuarial equivalent of the accrued normal
937	retirement income, based on the police officer's credited
938	service and earnings to such date, and each former participant
939	then entitled to a benefit under the provisions of s. 185.19 who
940	has not by such date reached his or her normal retirement date,
941	in the amount required to provide the actuarial equivalent of
942	the accrued normal retirement income to which he or she is
943	entitled under s. 185.19, provided that, if such remaining asset
944	value is less than the aggregate of the amounts apportioned
945	hereunder, such latter amounts shall be proportionately reduced
946	so that the aggregate of such reduced amounts will be equal to
947	such remaining asset value.
948	(c)  If there is an asset value after the apportionments
949	under paragraphs (a) and (b), apportionment shall lastly be made
950	in respect of each police officer in the service of the
951	municipality on such date who is not entitled to an
952	apportionment under paragraphs (a) and (b) in the amount equal
953	to the police officer's total contributions to the plan to date
954	of termination, provided that, if such remaining asset value is
955	less than the aggregate of the amounts apportioned hereunder,
956	such latter amounts shall be proportionately reduced so that the
957	aggregate of such reduced amounts will be equal to such
958	remaining asset value.
959	(4)(d)  In the event that there is asset value remaining
960	after the full distribution apportionment specified in
961	subsection (3), and after the payment of any expenses incurred
962	with such distribution paragraphs (a), (b), and (c), such excess
963	shall be returned to the municipality, less return to the state
964	of the state's contributions, provided that, if the excess is
965	less than the total contributions made by the municipality and
966	the state to date of termination of the plan, such excess shall
967	be divided proportionately to the total contributions made by
968	the municipality and the state.
969	(5)(4)  The board of trustees shall distribute, in
970	accordance with the manner of distribution determined under
971	subsection (2), the amounts determined apportioned under
972	subsection (3).
973
974	If, after a period of 24 months after the date on which the plan
975	terminated or the date on which the board received written
976	notice that the contributions thereunder were being permanently
977	discontinued, the municipality or the board of trustees of the
978	municipal police officers' retirement trust fund affected has
979	not complied with all the provisions in this section, the
980	Department of Management Services division shall effect the
981	termination of the fund in accordance with this section.
982	Section 14.  This act shall take effect July 1, 2009.

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