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