| 1 | A bill to be entitled |
| 2 | An act relating to municipal police pension plans; |
| 3 | amending s. 185.35, F.S.; allowing premium tax |
| 4 | revenues to be used to repay an advance from the |
| 5 | municipality which is used to purchase an annuity to |
| 6 | fund the accrued liabilities of the plan; providing an |
| 7 | effective date. |
| 8 |
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| 9 | WHEREAS, the merger or transfer of police services to |
| 10 | another governmental agency has resulted in certain |
| 11 | municipalities closing their police retirement plans, and |
| 12 | WHEREAS, the continued economic welfare of the plan, its |
| 13 | participants, and the municipality are best served by the |
| 14 | expedited funding of the plan's accumulated liabilities, and |
| 15 | WHEREAS, the amount of insurance premium tax revenue |
| 16 | received annually is insufficient to permit the immediate |
| 17 | payment of those accumulated liabilities, and |
| 18 | WHEREAS, the advanced payment of the cost of those |
| 19 | liabilities will result in enhanced actuarial soundness for the |
| 20 | plan and a savings to the taxpayers, and |
| 21 | WHEREAS, allowing the use of premium tax revenue under |
| 22 | certain limited circumstances does not threaten the integrity of |
| 23 | the premium tax program by creating a risk that the premium |
| 24 | taxes will not be used solely for the retirement benefits of |
| 25 | police officers, NOW, THEREFORE, |
| 26 |
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| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
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| 29 | Section 1. Subsection (1) of section 185.35, Florida |
| 30 | Statutes, is amended to read: |
| 31 | 185.35 Municipalities having their own pension plans for |
| 32 | police officers.-For any municipality, chapter plan, local law |
| 33 | municipality, or local law plan under this chapter, in order for |
| 34 | municipalities with their own pension plans for police officers, |
| 35 | or for police officers and firefighters where included, to |
| 36 | participate in the distribution of the tax fund established |
| 37 | pursuant to s. 185.08, local law plans must meet the minimum |
| 38 | benefits and minimum standards set forth in this chapter: |
| 39 | (1) PREMIUM TAX INCOME.- |
| 40 | (a) If a municipality has a pension plan for police |
| 41 | officers, or for police officers and firefighters where |
| 42 | included, which, in the opinion of the division, meets the |
| 43 | minimum benefits and minimum standards set forth in this |
| 44 | chapter, the board of trustees of the pension plan, as approved |
| 45 | by a majority of police officers of the municipality, may: |
| 46 | (a) place the income from the premium tax levied under in |
| 47 | s. 185.08 in: such |
| 48 | 1. The pension plan for the sole and exclusive use of its |
| 49 | police officers, or its police officers and firefighters where |
| 50 | included, where it shall become an integral part of that pension |
| 51 | plan and shall be used to pay extra benefits to the police |
| 52 | officers included in that pension plan; or |
| 53 | 2.(b) May Place the income from the premium tax in s. |
| 54 | 185.08 in A separate supplemental plan to pay extra benefits to |
| 55 | the police officers, or police officers and firefighters where |
| 56 | included, participating in the such separate supplemental plan. |
| 57 | (b) Except as provided in paragraph (c), the premium tax |
| 58 | must provided by this chapter shall in all cases be used in its |
| 59 | entirety to provide extra benefits to police officers, or to |
| 60 | police officers and firefighters, where included. However, local |
| 61 | law plans in effect on October 1, 1998, must shall be required |
| 62 | to comply with the minimum benefit provisions of this chapter |
| 63 | only to the extent that additional premium tax revenues become |
| 64 | available to incrementally fund the cost of such compliance as |
| 65 | provided in s. 185.16(2). When a plan is in compliance with the |
| 66 | such minimum benefit provisions, as subsequent additional tax |
| 67 | revenues become available, the revenues must they shall be used |
| 68 | to provide extra benefits. For the purpose of this chapter, |
| 69 | "additional premium tax revenues" means revenues received by a |
| 70 | municipality pursuant to s. 185.10 which exceed the amount |
| 71 | received for calendar year 1997, and the term "extra benefits" |
| 72 | means benefits in addition to or greater than those provided to |
| 73 | general employees of the municipality and in addition to those |
| 74 | in existence for police officers on March 12, 1999. Local law |
| 75 | plans created by special act before May 23, 1939, are shall be |
| 76 | deemed to comply with this chapter. |
| 77 | (c) In a closed plan that has fewer than five active |
| 78 | members where police services have been transferred or merged |
| 79 | with another governmental agency, the municipality may advance |
| 80 | payment for the cost of purchasing an annuity contract |
| 81 | applicable to the accrued liabilities of the plan. In such case, |
| 82 | the board of trustees, as approved by the members, may authorize |
| 83 | the repayment of the advanced cost from the future receipt of |
| 84 | premium taxes; however, the plan may not be deemed fully funded |
| 85 | until the full cost of the advanced payment has been returned to |
| 86 | the municipality by the plan. This paragraph does not preclude |
| 87 | the continued receipt of premium tax for the purpose of |
| 88 | providing additional benefits for active or retired police |
| 89 | officers as provided under paragraph (b). |
| 90 | Section 2. This act shall take effect July 1, 2010. |