Florida Senate - 2009 SB 538
By Senator Baker
20-00351-09 2009538__
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
5 purposes of determining credit for prior service as a
6 firefighter; revising the definition of the term
7 “firefighter”; amending s. 175.061, F.S.; authorizing
8 the terms of office for the board of trustees of the
9 firefighters' pension trust fund to be revised under
10 certain circumstances; authorizing the firefighters'
11 pension trust fund plan administrator to withhold
12 funds to pay for premiums for accident, health, and
13 long-term care insurance for the retiree and the
14 retiree's spouse and dependents; providing an
15 exemption from liability under certain circumstances;
16 amending s. 175.071, F.S.; requiring the board of
17 trustees to perform its powers subject to certain
18 fiduciary standards and ethics provisions; increasing
19 the percentage of assets of the firefighters' pension
20 trust fund that the board of trustees may invest in
21 foreign securities on a market-value basis;
22 authorizing certain individuals to sign drafts issued
23 upon the firefighters' pension trust fund; amending s.
24 175.101, F.S.; clarifying boundaries of a special fire
25 control district for purposes of assessment and
26 imposition of the excise tax on property insurance
27 premiums; amending s. 175.171, F.S.; authorizing
28 retired firefighters to change their designation of
29 joint annuitant or beneficiary up to two times without
30 the approval of the board of trustees or the prior
31 joint annuitant or beneficiary; amending s. 175.361,
32 F.S.; revising fund distribution procedures with
33 respect to plan termination; providing that the
34 Department of Management Services shall effect the
35 termination of the fund; amending s. 185.02, F.S.;
36 revising the definition of the term “creditable
37 service” for purposes of determining credit for prior
38 service as a police officer; amending s. 185.03, F.S.;
39 providing that a municipality that has entered into an
40 interlocal agreement to provide police protection
41 services to another incorporated municipality, in its
42 entirety, is eligible to receive the premium taxes
43 reported for the other municipality under certain
44 circumstances; authorizing the municipality receiving
45 the police protection services to enact an ordinance
46 levying a tax as provided by law; amending s. 185.05,
47 F.S.; revising municipal police officers' retirement
48 trust fund board of trustee selection procedures;
49 authorizing the terms of office for the board of
50 trustees of the municipal police officers' retirement
51 trust fund to be revised under certain circumstances;
52 authorizing the plan administrator to withhold funds
53 to pay for premiums for accident, health, and long
54 term care insurance for the retiree and the retiree's
55 spouse and dependents; providing an exemption from
56 liability under certain circumstances; amending s.
57 185.06, F.S.; requiring the board of trustees to
58 perform its powers subject to certain fiduciary
59 standards and ethics provisions; increasing the
60 percentage of assets of the municipal police officers'
61 retirement trust fund that the board of trustees may
62 invest in foreign securities on a market-value basis;
63 authorizing certain individuals to sign drafts issued
64 upon the municipal police officers' retirement trust
65 fund; amending s. 185.08, F.S.; authorizing certain
66 municipalities to assess and impose the excise tax on
67 casualty insurance premiums to receive certain police
68 protection services; providing for distribution of
69 premium tax proceeds; amending s. 185.161, F.S.;
70 authorizing retired police officers to change their
71 designation of joint annuitant or beneficiary up to
72 two times without the approval of the board of
73 trustees or the prior joint annuitant or beneficiary;
74 amending s. 185.37, F.S.; revising fund distribution
75 procedures with respect to plan termination; providing
76 that the Department of Management Services shall
77 effect the termination of the fund; providing an
78 effective date.
79
80 Be It Enacted by the Legislature of the State of Florida:
81
82 Section 1. Paragraph (c) of subsection (4) and paragraph
83 (a) of subsection (8) of section 175.032, Florida Statutes, are
84 amended to read:
85 175.032 Definitions.—For any municipality, special fire
86 control district, chapter plan, local law municipality, local
87 law special fire control district, or local law plan under this
88 chapter, the following words and phrases have the following
89 meanings:
90 (4) “Creditable service” or “credited service” means the
91 aggregate number of years of service, and fractional parts of
92 years of service, of any firefighter, omitting intervening years
93 and fractional parts of years when such firefighter may not have
94 been employed by the municipality or special fire control
95 district, subject to the following conditions:
96 (c) Credited service under this chapter shall be provided
97 only for service as a firefighter, as defined in subsection (8),
98 or for military service and shall not include credit for any
99 other type of service. A municipality may, by local ordinance,
100 or a special fire control district may, by resolution, provide
101 for the purchase of credit for military service prior to
102 employment as well as for prior service as a firefighter for
103 some other employer as long as a firefighter is not entitled to
104 receive a benefit for such other prior service as a firefighter.
105 For purposes of determining credit for prior service as a
106 firefighter, in addition to service as a firefighter in this
107 state, credit may be given for federal, other state, or county
108 service, as long as such prior fire service is recognized by the
109 Division of State Fire Marshal as provided under chapter 633 or
110 the firefighter provides proof to the board of trustees that
111 such service is equivalent to the service required to meet the
112 definition of a firefighter under subsection (8).
113 (8)(a) “Firefighter” means any person employed solely by a
114 constituted fire department of any municipality or special fire
115 control district who is certified as a firefighter as a
116 condition of employment in accordance with the provisions of s.
117 633.35 and whose duty it is to extinguish fires, to protect
118 life, or to protect property. “Firefighter” includes all
119 certified supervisory and command personnel whose duties
120 include, in whole or in part, the supervision, training,
121 guidance, and management responsibilities of full-time
122 firefighters, part-time firefighters, or auxiliary firefighters
123 but does not include part-time firefighters or auxiliary
124 firefighters. However, for purposes of this chapter only,
125 “firefighter” also includes public safety officers who are
126 responsible for performing both police and fire services, who
127 are certified as police officers or firefighters, and who are
128 certified by their employers to the Chief Financial Officer as
129 participating in this chapter prior to October 1, 1979.
130 Effective October 1, 1979, public safety officers who have not
131 been certified as participating in this chapter shall be
132 considered police officers for retirement purposes and shall be
133 eligible to participate in chapter 185. Any plan may provide
134 that the fire chief shall have an option to participate, or not,
135 in that plan.
136 Section 2. Paragraph (a) of subsection (1) and subsection
137 (7) of section 175.061, Florida Statutes, are amended to read:
138 175.061 Board of trustees; members; terms of office;
139 meetings; legal entity; costs; attorney's fees.—For any
140 municipality, special fire control district, chapter plan, local
141 law municipality, local law special fire control district, or
142 local law plan under this chapter:
143 (1) In each municipality and in each special fire control
144 district there is hereby created a board of trustees of the
145 firefighters' pension trust fund, which shall be solely
146 responsible for administering the trust fund. Effective October
147 1, 1986, and thereafter:
148 (a) The membership of the board of trustees for a chapter
149 plan shall consist of five members, two of whom, unless
150 otherwise prohibited by law, shall be legal residents of the
151 municipality or special fire control district, who shall be
152 appointed by the governing body of the municipality or special
153 fire control district, and two of whom shall be full-time
154 firefighters as defined in s. 175.032 who shall be elected by a
155 majority of the active firefighters who are members of such
156 plan. With respect to any chapter plan or local law plan that,
157 on January 1, 1997, allowed retired firefighters to vote in such
158 elections, retirees may continue to vote in such elections. The
159 fifth member shall be chosen by a majority of the previous four
160 members as provided for herein, and such person's name shall be
161 submitted to the governing body of the municipality or special
162 fire control district. Upon receipt of the fifth person's name,
163 the governing body of the municipality or special fire control
164 district shall, as a ministerial duty, appoint such person to
165 the board of trustees as its fifth member. The fifth member
166 shall have the same rights as each of the other four members
167 appointed or elected as herein provided, shall serve as trustee
168 for a period of 2 years, and may succeed himself or herself in
169 office. Each resident member shall serve as trustee for a period
170 of 2 years, unless sooner replaced by the governing body at
171 whose pleasure he or she shall serve, and may succeed himself or
172 herself as a trustee. Each firefighter member shall serve as
173 trustee for a period of 2 years, unless he or she sooner leaves
174 the employment of the municipality or special fire control
175 district as a firefighter, whereupon a successor shall be chosen
176 in the same manner as an original appointment. Each firefighter
177 may succeed himself or herself in office. The terms of office of
178 the appointed and elected members of the board of trustees may
179 be amended by municipal ordinance, special act of the
180 Legislature, or resolution adopted by the governing body of the
181 special fire control district to extend the terms of office from
182 2 years to 4 years. The length of the terms of office shall be
183 the same for all board members.
184 (7) The board of trustees may, upon written request by the
185 retiree of the plan, or by a dependent, when authorized by the
186 retiree or the retiree's beneficiary, authorize the plan
187 administrator to withhold from the monthly retirement payment
188 those funds that are necessary to pay for the benefits being
189 received through the governmental entity from which the employee
190 retired, to pay the certified bargaining agent of the
191 governmental entity, and to make any payments for child support
192 or alimony. Further, the board of trustees may, upon the written
193 request of the retiree of the plan, authorize the plan
194 administrator to withhold from the retirement payment those
195 funds that are necessary to pay for premiums for accident,
196 health, and long-term care insurance for the retiree and the
197 retiree's spouse and dependents. A retirement plan does not
198 incur any liability for participation in this permissive program
199 if its actions are taken in good faith.
200 Section 3. Subsection (1) of section 175.071, Florida
201 Statutes, is amended to read:
202 175.071 General powers and duties of board of trustees.—For
203 any municipality, special fire control district, chapter plan,
204 local law municipality, local law special fire control district,
205 or local law plan under this chapter:
206 (1) The board of trustees, subject to the fiduciary
207 standards in ss. 112.656, 112.661, and 518.11 and the Code of
208 Ethics in ss. 112.311-112.3187, may:
209 (a) Invest and reinvest the assets of the firefighters'
210 pension trust fund in annuity and life insurance contracts of
211 life insurance companies in amounts sufficient to provide, in
212 whole or in part, the benefits to which all of the participants
213 in the firefighters' pension trust fund shall be entitled under
214 the provisions of this chapter and pay the initial and
215 subsequent premiums thereon.
216 (b) Invest and reinvest the assets of the firefighters'
217 pension trust fund in:
218 1. Time or savings accounts of a national bank, a state
219 bank insured by the Bank Insurance Fund, or a savings, building,
220 and loan association insured by the Savings Association
221 Insurance Fund which is administered by the Federal Deposit
222 Insurance Corporation or a state or federal chartered credit
223 union whose share accounts are insured by the National Credit
224 Union Share Insurance Fund.
225 2. Obligations of the United States or obligations
226 guaranteed as to principal and interest by the government of the
227 United States.
228 3. Bonds issued by the State of Israel.
229 4. Bonds, stocks, or other evidences of indebtedness issued
230 or guaranteed by a corporation organized under the laws of the
231 United States, any state or organized territory of the United
232 States, or the District of Columbia, provided:
233 a. The corporation is listed on any one or more of the
234 recognized national stock exchanges or on the National Market
235 System of the NASDAQ Stock Market and, in the case of bonds
236 only, holds a rating in one of the three highest classifications
237 by a major rating service; and
238 b. The board of trustees shall not invest more than 5
239 percent of its assets in the common stock or capital stock of
240 any one issuing company, nor shall the aggregate investment in
241 any one issuing company exceed 5 percent of the outstanding
242 capital stock of that company or the aggregate of its
243 investments under this subparagraph at cost exceed 50 percent of
244 the assets of the fund.
245 This paragraph shall apply to all boards of trustees and
246 participants. However, in the event that a municipality or
247 special fire control district has a duly enacted pension plan
248 pursuant to, and in compliance with, s. 175.351, and the
249 trustees thereof desire to vary the investment procedures
250 herein, the trustees of such plan shall request a variance of
251 the investment procedures as outlined herein only through a
252 municipal ordinance, special act of the Legislature, or
253 resolution by the governing body of the special fire control
254 district; where a special act, or a municipality by ordinance
255 adopted prior to July 1, 1998, permits a greater than 50-percent
256 equity investment, such municipality shall not be required to
257 comply with the aggregate equity investment provisions of this
258 paragraph. Notwithstanding any other provision of law to the
259 contrary, nothing in this section may be construed to take away
260 any preexisting legal authority to make equity investments that
261 exceed the requirements of this paragraph. Notwithstanding any
262 law to the contrary, the board of trustees may invest up to 25
263 10 percent of plan assets in foreign securities on a market
264 value basis.
265 (c) Issue drafts upon the firefighters' pension trust fund
266 pursuant to this act and rules and regulations prescribed by the
267 board of trustees. All such drafts shall be consecutively
268 numbered, be signed by the chair and secretary or by two
269 individuals designated by the board who are subject to the same
270 fiduciary standards as required for the board of trustees under
271 this subsection, and state upon their faces the purpose for
272 which the drafts are drawn. The treasurer or depository of each
273 municipality or special fire control district shall retain such
274 drafts when paid, as permanent vouchers for disbursements made,
275 and no money shall be otherwise drawn from the fund.
276 (d) Convert into cash any securities of the fund.
277 (e) Keep a complete record of all receipts and
278 disbursements and of the board's acts and proceedings.
279 Section 4. Subsection (1) of section 175.101, Florida
280 Statutes, is amended to read:
281 175.101 State excise tax on property insurance premiums
282 authorized; procedure.—For any municipality, special fire
283 control district, chapter plan, local law municipality, local
284 law special fire control district, or local law plan under this
285 chapter:
286 (1) Each municipality or special fire control district in
287 this state described and classified in s. 175.041, having a
288 lawfully established firefighters' pension trust fund or
289 municipal fund or special fire control district fund, by
290 whatever name known, providing pension benefits to firefighters
291 as provided under this chapter, may assess and impose on every
292 insurance company, corporation, or other insurer now engaged in
293 or carrying on, or who shall hereinafter engage in or carry on,
294 the business of property insurance as shown by the records of
295 the Office of Insurance Regulation of the Financial Services
296 Commission an excise tax in addition to any lawful license or
297 excise tax now levied by each of the municipalities or special
298 fire control districts, respectively, amounting to 1.85 percent
299 of the gross amount of receipts of premiums from policyholders
300 on all premiums collected on property insurance policies
301 covering property within the corporate limits of such
302 municipalities or within the legally defined boundaries of
303 special fire control districts, respectively. Whenever the
304 boundaries of a special fire control district that has lawfully
305 established a firefighters' pension trust fund encompass a
306 portion of the corporate territory of a municipality that has
307 also lawfully established a firefighters' pension trust fund,
308 that portion of the tax receipts attributable to insurance
309 policies covering property situated both within the municipality
310 and the special fire control district shall be given to the fire
311 service provider. For the purpose of this section, the
312 boundaries of a special fire control district shall be deemed to
313 include an area that has been annexed until the completion of
314 the 4-year period provided for in s. 171.093(4), or other
315 agreed-upon extension, or when a special fire control district
316 is providing services pursuant to an interlocal agreement
317 executed pursuant to s. 171.093(3). The agent shall identify the
318 fire service provider on the property owner's application for
319 insurance. Remaining revenues collected pursuant to this chapter
320 shall be distributed to the municipality or special fire control
321 district according to the location of the insured property.
322 This section also applies to any municipality consisting of a
323 single consolidated government which is made up of a former
324 county and one or more municipalities, consolidated pursuant to
325 the authority in s. 3 or s. 6(e), Art. VIII of the State
326 Constitution, and to property insurance policies covering
327 property within the boundaries of the consolidated government,
328 regardless of whether the properties are located within one or
329 more separately incorporated areas within the consolidated
330 government, provided the properties are being provided fire
331 protection services by the consolidated government. This section
332 also applies to any municipality, as provided in s.
333 175.041(3)(c), which has entered into an interlocal agreement to
334 receive fire protection services from another municipality
335 participating under this chapter. The excise tax may be levied
336 on all premiums collected on property insurance policies
337 covering property located within the corporate limits of the
338 municipality receiving the fire protection services, but will be
339 available for distribution to the municipality providing the
340 fire protection services.
341 Section 5. Paragraph (c) of subsection (1) of section
342 175.171, Florida Statutes, is amended to read:
343 175.171 Optional forms of retirement income.—For any
344 municipality, special fire control district, chapter plan, local
345 law municipality, local law special fire control district, or
346 local law plan under this chapter:
347 (1) In lieu of the amount and form of retirement income
348 payable in the event of normal or early retirement as specified
349 in s. 175.162, a firefighter, upon written request to the board
350 of trustees and subject to the approval of the board of
351 trustees, may elect to receive a retirement income or benefit of
352 equivalent actuarial value payable in accordance with one of the
353 following options:
354 (c) Such other amount and form of retirement payments or
355 benefits as, in the opinion of the board of trustees, will best
356 meet the circumstances of the retiring firefighter.
357 1. The firefighter upon electing any option of this section
358 will designate the joint pensioner or beneficiary (or
359 beneficiaries) to receive the benefit, if any, payable under the
360 plan in the event of his or her death, and will have the power
361 to change such designation from time to time, but any such
362 change shall be deemed a new election and will be subject to
363 approval by the board of trustees. Such designation will name a
364 joint pensioner or one or more primary beneficiaries where
365 applicable. If a firefighter has elected an option with a joint
366 pensioner or beneficiary and his or her retirement income
367 benefits have commenced, the firefighter may thereafter change
368 the designated joint pensioner or beneficiary, but only if the
369 board of trustees consents to such change and if the joint
370 pensioner last previously designated by the firefighter is alive
371 when the firefighter files with the board of trustees a request
372 for such change.
373 2. The consent of a firefighter's joint pensioner or
374 beneficiary to any such change shall not be required.
375 3. The board of trustees may request such evidence of the
376 good health of the joint pensioner that is being removed as it
377 may require and the amount of the retirement income payable to
378 the firefighter upon designation of a new joint pensioner shall
379 be actuarially redetermined taking into account the age and sex
380 of the former joint pensioner, the new joint pensioner, and the
381 firefighter. Each such designation will be made in writing on a
382 form prepared by the board of trustees and on completion will be
383 filed with the board of trustees. In the event that no
384 designated beneficiary survives the firefighter, such benefits
385 as are payable in the event of the death of the firefighter
386 subsequent to his or her retirement shall be paid as provided in
387 s. 175.181.
388 4. Notwithstanding the provisions of this paragraph, the
389 retired firefighter may change his or her designation of joint
390 annuitant or beneficiary up to two times as provided in s.
391 175.333 without the approval of the board of trustees or the
392 prior joint annuitant or beneficiary. The retiree does not have
393 to provide proof of good health of the joint annuitant or
394 beneficiary being removed, and the joint annuitant or
395 beneficiary being removed does not have to be living.
396 Section 6. Section 175.361, Florida Statutes, is amended to
397 read:
398 175.361 Termination of plan and distribution of fund.—For
399 any municipality, special fire control district, chapter plan,
400 local law municipality, local law special fire control district,
401 or local law plan under this chapter, the plan may be terminated
402 by the municipality or special fire control district. Upon
403 termination of the plan by the municipality or special fire
404 control district for any reason or because of a transfer,
405 merger, or consolidation of governmental units, services, or
406 functions as provided in chapter 121, or upon written notice by
407 the municipality or special fire control district to the board
408 of trustees that contributions under the plan are being
409 permanently discontinued, the rights of all employees to
410 benefits accrued to the date of such termination and the amounts
411 credited to the employees' accounts are nonforfeitable. The fund
412 shall be apportioned and distributed in accordance with the
413 following procedures:
414 (1) The board of trustees shall determine the date of
415 distribution and the asset value required to fund all the
416 nonforfeitable benefits to be distributed, after taking into
417 account the expenses of such distribution. The board shall
418 inform the municipality or special fire control district if
419 additional assets are required, in which event the municipality
420 or special fire control district shall continue to financially
421 support the plan until all nonforfeitable benefits have been
422 funded.
423 (2) The board of trustees shall determine the method of
424 distribution of the asset value, that is, whether distribution
425 shall be by payment in cash, by the maintenance of another or
426 substituted trust fund, by the purchase of insured annuities, or
427 otherwise, for each firefighter entitled to benefits under the
428 plan as specified in subsection (3).
429 (3) The board of trustees shall distribute apportion the
430 asset value as of the date of termination in the manner set
431 forth in this subsection, on the basis that the amount required
432 to provide any given retirement income shall mean the
433 actuarially computed single-sum value of such retirement income,
434 except that if the method of distribution determined under
435 subsection (2) involves the purchase of an insured annuity, the
436 amount required to provide the given retirement income shall
437 mean the single premium payable for such annuity. The actuarial
438 single-sum value shall not be less than the employee's
439 accumulated contributions to the plan, with interest if provided
440 by the plan, less the value of any plan benefits previously paid
441 to the employee.
442 (a) Apportionment shall first be made in respect of each
443 retired firefighter receiving a retirement income hereunder on
444 such date, each person receiving a retirement income on such
445 date on account of a retired (but since deceased) firefighter,
446 and each firefighter who has, by such date, become eligible for
447 normal retirement but has not yet retired, in the amount
448 required to provide such retirement income, provided that, if
449 such asset value is less than the aggregate of such amounts,
450 such amounts shall be proportionately reduced so that the
451 aggregate of such reduced amounts will be equal to such asset
452 value.
453 (b) If there is any asset value remaining after the
454 apportionment under paragraph (a), apportionment shall next be
455 made in respect of each firefighter in the service of the
456 municipality or special fire control district on such date who
457 has completed at least 10 years of credited service, in the
458 firefighters' pension trust fund for at least 10 years, and who
459 is not entitled to an apportionment under paragraph (a), in the
460 amount required to provide the actuarial equivalent of the
461 accrued normal retirement income, based on the firefighter's
462 credited service and earnings to such date, and each former
463 participant then entitled to a benefit under the provisions of
464 s. 175.211 who has not by such date reached his or her normal
465 retirement date, in the amount required to provide the actuarial
466 equivalent of the accrued normal retirement income to which he
467 or she is entitled under s. 175.211; provided that, if such
468 remaining asset value is less than the aggregate of the amounts
469 apportioned hereunder, such latter amounts shall be
470 proportionately reduced so that the aggregate of such reduced
471 amounts will be equal to such remaining asset value.
472 (c) If there is any asset value after the apportionments
473 under paragraphs (a) and (b), apportionment shall lastly be made
474 in respect of each firefighter in the service of the
475 municipality or special fire control district on such date who
476 is not entitled to an apportionment under paragraphs (a) and (b)
477 in the amount equal to the firefighter's total contributions to
478 the plan to date of termination; provided that, if such
479 remaining asset value is less than the aggregate of the amounts
480 apportioned hereunder, such latter amounts shall be
481 proportionately reduced so that the aggregate of such reduced
482 amounts will be equal to such remaining asset value.
483 (4)(d) In the event that there is asset value remaining
484 after the full distribution apportionment specified in
485 subsection (3), and after the payment of any expenses incurred
486 with such distribution paragraphs (a), (b), and (c), such excess
487 shall be returned to the municipality or special fire control
488 district, less return to the state of the state's contributions,
489 provided that, if the excess is less than the total
490 contributions made by the municipality or special fire control
491 district and the state to date of termination of the plan, such
492 excess shall be divided proportionately to the total
493 contributions made by the municipality or special fire control
494 district and the state.
495 (5)(4) The board of trustees shall distribute, in
496 accordance with the manner of distribution determined under
497 subsection (2), the amounts determined apportioned under
498 subsection (3).
499 If, after a period of 24 months after the date on which the plan
500 terminated or the date on which the board received written
501 notice that the contributions thereunder were being permanently
502 discontinued, the municipality or special fire control district
503 or the board of trustees of the firefighters' pension trust fund
504 affected has not complied with all the provisions in this
505 section, the Department of Management Services division shall
506 effect the termination of the fund in accordance with this
507 section.
508 Section 7. Paragraph (c) of subsection (5) of section
509 185.02, Florida Statutes, is amended to read:
510 185.02 Definitions.—For any municipality, chapter plan,
511 local law municipality, or local law plan under this chapter,
512 the following words and phrases as used in this chapter shall
513 have the following meanings, unless a different meaning is
514 plainly required by the context:
515 (5) “Creditable service” or “credited service” means the
516 aggregate number of years of service and fractional parts of
517 years of service of any police officer, omitting intervening
518 years and fractional parts of years when such police officer may
519 not have been employed by the municipality subject to the
520 following conditions:
521 (c) Credited service under this chapter shall be provided
522 only for service as a police officer, as defined in subsection
523 (11), or for military service and shall not include credit for
524 any other type of service. A municipality may, by local
525 ordinance, provide for the purchase of credit for military
526 service occurring prior to employment as well as prior service
527 as a police officer for some other employer as long as the
528 police officer is not entitled to receive a benefit for such
529 other prior service as a police officer. For purposes of
530 determining credit for prior service as a police officer, in
531 addition to service as a police officer in this state, credit
532 may be given for federal, other state, or county service, as
533 long as such prior police service is recognized by the Criminal
534 Justice Standards and Training Commission within the Department
535 of Law Enforcement as provided under chapter 943 or the police
536 officer provides proof to the board of trustees that such
537 service is equivalent to the service required to meet the
538 definition of a police officer under subsection (11).
539 Section 8. Subsection (2) of section 185.03, Florida
540 Statutes, is amended to read:
541 185.03 Municipal police officers' retirement trust funds;
542 creation; applicability of provisions; participation by public
543 safety officers.—For any municipality, chapter plan, local law
544 municipality, or local law plan under this chapter:
545 (2)(a) The provisions of This chapter applies shall apply
546 only to municipalities organized and established under pursuant
547 to the laws of the state, and does said provisions shall not
548 apply to the unincorporated areas of any county or counties or
549 nor shall the provisions hereof apply to any governmental entity
550 whose police officers are eligible to participate in the Florida
551 Retirement System.
552 (b) A municipality that has entered into an interlocal
553 agreement to provide police protection services to any other
554 incorporated municipality, in its entirety, for a period of 12
555 months or more may be eligible to receive the premium taxes
556 reported for such other municipality. To be eligible for the
557 premium taxes, the municipality providing the police protection
558 services must notify the division that it has entered into an
559 interlocal agreement with another municipality. The municipality
560 receiving the police protection services may enact an ordinance
561 levying the tax as provided in s. 185.08. Upon being provided
562 copies of the interlocal agreement and the municipal ordinance
563 levying the tax, the division may distribute any premium taxes
564 reported for the municipality receiving the police protection
565 services to the participating municipality providing the police
566 protection services as long as the interlocal agreement is in
567 effect.
568 Section 9. Paragraph (a) of subsection (1) and subsection
569 (6) of section 185.05, Florida Statutes, are amended to read:
570 185.05 Board of trustees; members; terms of office;
571 meetings; legal entity; costs; attorney's fees.—For any
572 municipality, chapter plan, local law municipality, or local law
573 plan under this chapter:
574 (1) In each municipality described in s. 185.03 there is
575 hereby created a board of trustees of the municipal police
576 officers' retirement trust fund, which shall be solely
577 responsible for administering the trust fund. Effective October
578 1, 1986, and thereafter:
579 (a) The membership of the board of trustees for chapter
580 plans shall consist of five members, two of whom, unless
581 otherwise prohibited by law, shall be legal residents of the
582 municipality, who shall be appointed by the legislative body of
583 the municipality, and two of whom shall be police officers as
584 defined in s. 185.02 who shall be elected by a majority of the
585 active police officers who are members of such plan. With
586 respect to any chapter plan or local law plan that, on January
587 1, 1997, allowed retired police officers to vote in such
588 elections, retirees may continue to vote in such elections. The
589 fifth member shall be chosen by a majority of the previous four
590 members, and such person's name shall be submitted to the
591 legislative body of the municipality. Upon receipt of the fifth
592 person's name, the legislative body of the municipality shall,
593 as a ministerial duty, appoint such person to the board of
594 trustees as its fifth member. The fifth member shall have the
595 same rights as each of the other four members appointed or
596 elected as herein provided, shall serve as trustee for a period
597 of 2 years, and may succeed himself or herself in office. Each
598 resident member shall serve as trustee for a period of 2 years,
599 unless sooner replaced by the legislative body at whose pleasure
600 the member shall serve, and may succeed himself or herself as a
601 trustee. Each police officer member shall serve as trustee for a
602 period of 2 years, unless he or she sooner leaves the employment
603 of the municipality as a police officer, whereupon the
604 legislative body of the municipality shall choose a successor
605 shall be chosen in the same manner as an original appointment.
606 Each police officer may succeed himself or herself in office.
607 The terms of office of the appointed and elected members of the
608 board of trustees may be amended by municipal ordinance or
609 special act of the Legislature to extend the terms of office
610 from 2 years to 4 years. The length of the terms of office shall
611 be the same for all board members.
612 (6) The board of trustees may, upon written request by the
613 retiree of the plan, or by a dependent, when authorized by the
614 retiree or the retiree's beneficiary, authorize the plan
615 administrator to withhold from the monthly retirement payment
616 those funds that are necessary to pay for the benefits being
617 received through the governmental entity from which the employee
618 retired, to pay the certified bargaining agent of the
619 governmental entity, and to make any payments for child support
620 or alimony. Further, the board of trustees may, upon the written
621 request of the retiree of the plan, authorize the plan
622 administrator to withhold from the retirement payment those
623 funds that are necessary to pay for premiums for accident,
624 health, and long-term care insurance for the retiree and the
625 retiree's spouse and dependents. A retirement plan does not
626 incur any liability for participation in this permissive program
627 if its actions are taken in good faith.
628 Section 10. Subsection (1) of section 185.06, Florida
629 Statutes, is amended to read:
630 185.06 General powers and duties of board of trustees.—For
631 any municipality, chapter plan, local law municipality, or local
632 law plan under this chapter:
633 (1) The board of trustees, subject to the fiduciary
634 standards in ss. 112.656, 112.661, and 518.11 and the Code of
635 Ethics in ss. 112.311-112.3187, may:
636 (a) Invest and reinvest the assets of the retirement trust
637 fund in annuity and life insurance contracts of life insurance
638 companies in amounts sufficient to provide, in whole or in part,
639 the benefits to which all of the participants in the municipal
640 police officers' retirement trust fund shall be entitled under
641 the provisions of this chapter, and pay the initial and
642 subsequent premiums thereon.
643 (b) Invest and reinvest the assets of the retirement trust
644 fund in:
645 1. Time or savings accounts of a national bank, a state
646 bank insured by the Bank Insurance Fund, or a savings and loan
647 association insured by the Savings Association Insurance Fund
648 which is administered by the Federal Deposit Insurance
649 Corporation or a state or federal chartered credit union whose
650 share accounts are insured by the National Credit Union Share
651 Insurance Fund.
652 2. Obligations of the United States or obligations
653 guaranteed as to principal and interest by the United States.
654 3. Bonds issued by the State of Israel.
655 4. Bonds, stocks, or other evidences of indebtedness issued
656 or guaranteed by a corporation organized under the laws of the
657 United States, any state or organized territory of the United
658 States, or the District of Columbia, provided:
659 a. The corporation is listed on any one or more of the
660 recognized national stock exchanges or on the National Market
661 System of the NASDAQ Stock Market and, in the case of bonds
662 only, holds a rating in one of the three highest classifications
663 by a major rating service; and
664 b. The board of trustees shall not invest more than 5
665 percent of its assets in the common stock or capital stock of
666 any one issuing company, nor shall the aggregate investment in
667 any one issuing company exceed 5 percent of the outstanding
668 capital stock of the company or the aggregate of its investments
669 under this subparagraph at cost exceed 50 percent of the fund's
670 assets.
671 This paragraph shall apply to all boards of trustees and
672 participants. However, in the event that a municipality has a
673 duly enacted pension plan pursuant to, and in compliance with,
674 s. 185.35 and the trustees thereof desire to vary the investment
675 procedures herein, the trustees of such plan shall request a
676 variance of the investment procedures as outlined herein only
677 through a municipal ordinance or special act of the Legislature;
678 where a special act, or a municipality by ordinance adopted
679 prior to July 1, 1998, permits a greater than 50-percent equity
680 investment, such municipality shall not be required to comply
681 with the aggregate equity investment provisions of this
682 paragraph. Notwithstanding any other provision of law to the
683 contrary, nothing in this section may be construed to take away
684 any preexisting legal authority to make equity investments that
685 exceed the requirements of this paragraph. Notwithstanding any
686 law to the contrary, the board of trustees may invest up to 25
687 10 percent of plan assets in foreign securities on a market
688 value basis.
689 (c) Issue drafts upon the municipal police officers'
690 retirement trust fund pursuant to this act and rules and
691 regulations prescribed by the board of trustees. All such drafts
692 shall be consecutively numbered, be signed by the chair and
693 secretary or by two individuals designated by the board who are
694 subject to the same fiduciary standards as required for the
695 board of trustees under this subsection, and state upon their
696 faces the purposes for which the drafts are drawn. The city
697 treasurer or other depository shall retain such drafts when
698 paid, as permanent vouchers for disbursements made, and no money
699 shall otherwise be drawn from the fund.
700 (d) Finally decide all claims to relief under the board's
701 rules and regulations and pursuant to the provisions of this
702 act.
703 (e) Convert into cash any securities of the fund.
704 (f) Keep a complete record of all receipts and
705 disbursements and of the board's acts and proceedings.
706 Section 11. Section 185.08, Florida Statutes, is amended to
707 read:
708 185.08 State excise tax on casualty insurance premiums
709 authorized; procedure.—For any municipality, chapter plan, local
710 law municipality, or local law plan under this chapter:
711 (1) Each incorporated municipality in this state described
712 and classified in s. 185.03, as well as each other city or town
713 of this state which on July 31, 1953, had a lawfully established
714 municipal police officers' retirement trust fund or city fund,
715 by whatever name known, providing pension or relief benefits to
716 police officers as provided under this chapter, may assess and
717 impose on every insurance company, corporation, or other insurer
718 now engaged in or carrying on, or who shall hereafter engage in
719 or carry on, the business of casualty insurance as shown by
720 records of the Office of Insurance Regulation of the Financial
721 Services Commission, an excise tax in addition to any lawful
722 license or excise tax now levied by each of the said
723 municipalities, respectively, amounting to .85 percent of the
724 gross amount of receipts of premiums from policyholders on all
725 premiums collected on casualty insurance policies covering
726 property within the corporate limits of such municipalities,
727 respectively.
728 (2) In the case of multiple peril policies with a single
729 premium for both property and casualty coverages in such
730 policies, 30 percent of such premium shall be used as the basis
731 for the .85-percent tax above.
732 (3) The excise tax shall be payable annually March 1 of
733 each year after the passing of an ordinance assessing and
734 imposing the tax herein authorized. Installments of taxes shall
735 be paid according to the provisions of s. 624.5092(2)(a), (b),
736 and (c).
737 This section also applies to any municipality that has entered
738 into an interlocal agreement to receive police protection
739 services from another municipality under s. 185.03. The excise
740 tax may be levied on all premiums collected on casualty
741 insurance policies covering property located within the
742 corporate limits of the municipality receiving the police
743 protection services but is available for distribution to the
744 municipality providing the police protection services.
745 Section 12. Paragraph (c) is added to subsection (1) of
746 section 185.161, Florida Statutes, to read:
747 185.161 Optional forms of retirement income.—For any
748 municipality, chapter plan, local law municipality, or local law
749 plan under this chapter:
750 (1)
751 (c) Notwithstanding paragraph (b), the retired police
752 officer may change his or her designation of joint annuitant or
753 beneficiary up to two times as provided in s. 185.341 without
754 the approval of the board of trustees or the prior joint
755 annuitant or beneficiary. The retiree does not have to provide
756 proof of good health of the joint annuitant or beneficiary being
757 removed, and the joint annuitant or beneficiary being removed
758 does not have to be living.
759 Section 13. Section 185.37, Florida Statutes, is amended to
760 read:
761 185.37 Termination of plan and distribution of fund.—For
762 any municipality, chapter plan, local law municipality, or local
763 law plan under this chapter, the plan may be terminated by the
764 municipality. Upon termination of the plan by the municipality
765 for any reason, or because of a transfer, merger, or
766 consolidation of governmental units, services, or functions as
767 provided in chapter 121, or upon written notice to the board of
768 trustees by the municipality that contributions under the plan
769 are being permanently discontinued, the rights of all employees
770 to benefits accrued to the date of such termination or
771 discontinuance and the amounts credited to the employees'
772 accounts are nonforfeitable. The fund shall be apportioned and
773 distributed in accordance with the following procedures:
774 (1) The board of trustees shall determine the date of
775 distribution and the asset value required to fund all the
776 nonforfeitable benefits to be distributed, after taking into
777 account the expenses of such distribution. The board shall
778 inform the municipality if additional assets are required, in
779 which event the municipality shall continue to financially
780 support the plan until all nonforfeitable benefits have been
781 funded.
782 (2) The board of trustees shall determine the method of
783 distribution of the asset value, that is, whether distribution
784 shall be by payment in cash, by the maintenance of another or
785 substituted trust fund, by the purchase of insured annuities, or
786 otherwise, for each police officer entitled to benefits under
787 the plan, as specified in subsection (3).
788 (3) The board of trustees shall distribute apportion the
789 asset value as of the date of termination in the manner set
790 forth in this subsection, on the basis that the amount required
791 to provide any given retirement income shall mean the
792 actuarially computed single-sum value of such retirement income,
793 except that if the method of distribution determined under
794 subsection (2) involves the purchase of an insured annuity, the
795 amount required to provide the given retirement income shall
796 mean the single premium payable for such annuity. The actuarial
797 single-sum value shall not be less than the employee's
798 accumulated contributions to the plan, with interest if provided
799 by the plan, less the value of any plan benefits previously paid
800 to the employee.
801 (a) Apportionment shall first be made in respect of each
802 retired police officer receiving a retirement income hereunder
803 on such date, each person receiving a retirement income on such
804 date on account of a retired (but since deceased) police
805 officer, and each police officer who has, by such date, become
806 eligible for normal retirement but has not yet retired, in the
807 amount required to provide such retirement income, provided
808 that, if such asset value is less than the aggregate of such
809 amounts, such amounts shall be proportionately reduced so that
810 the aggregate of such reduced amounts will be equal to such
811 asset value.
812 (b) If there is any asset value remaining after the
813 apportionment under paragraph (a), apportionment shall next be
814 made in respect of each police officer in the service of the
815 municipality on such date who has completed at least 10 years of
816 credited service, in the municipal police officers' retirement
817 trust fund for at least 10 years, and who is not entitled to an
818 apportionment under paragraph (a), in the amount required to
819 provide the actuarial equivalent of the accrued normal
820 retirement income, based on the police officer's credited
821 service and earnings to such date, and each former participant
822 then entitled to a benefit under the provisions of s. 185.19 who
823 has not by such date reached his or her normal retirement date,
824 in the amount required to provide the actuarial equivalent of
825 the accrued normal retirement income to which he or she is
826 entitled under s. 185.19, provided that, if such remaining asset
827 value is less than the aggregate of the amounts apportioned
828 hereunder, such latter amounts shall be proportionately reduced
829 so that the aggregate of such reduced amounts will be equal to
830 such remaining asset value.
831 (c) If there is an asset value after the apportionments
832 under paragraphs (a) and (b), apportionment shall lastly be made
833 in respect of each police officer in the service of the
834 municipality on such date who is not entitled to an
835 apportionment under paragraphs (a) and (b) in the amount equal
836 to the police officer's total contributions to the plan to date
837 of termination, provided that, if such remaining asset value is
838 less than the aggregate of the amounts apportioned hereunder,
839 such latter amounts shall be proportionately reduced so that the
840 aggregate of such reduced amounts will be equal to such
841 remaining asset value.
842 (4)(d) In the event that there is asset value remaining
843 after the full distribution apportionment specified in
844 subsection (3), and after the payment of any expenses incurred
845 with such distribution paragraphs (a), (b), and (c), such excess
846 shall be returned to the municipality, less return to the state
847 of the state's contributions, provided that, if the excess is
848 less than the total contributions made by the municipality and
849 the state to date of termination of the plan, such excess shall
850 be divided proportionately to the total contributions made by
851 the municipality and the state.
852 (5)(4) The board of trustees shall distribute, in
853 accordance with the manner of distribution determined under
854 subsection (2), the amounts determined apportioned under
855 subsection (3).
856 If, after a period of 24 months after the date on which the plan
857 terminated or the date on which the board received written
858 notice that the contributions thereunder were being permanently
859 discontinued, the municipality or the board of trustees of the
860 municipal police officers' retirement trust fund affected has
861 not complied with all the provisions in this section, the
862 Department of Management Services division shall effect the
863 termination of the fund in accordance with this section.
864 Section 14. This act shall take effect July 1, 2009.