HB 1163

1
A bill to be entitled
2An act relating to the City Pension Fund for Firefighters
3and Police Officers in the City of Tampa, Hillsborough
4County; authorizing the City of Tampa to enter into a
5supplemental contract with certain firefighters and police
6officers to comply with chapter 2009-97, Laws of Florida;
7revising the manner in which elective trustees are
8elected; increasing the maximum length of time prior to
9term commencement in which to conduct trustee elections;
10allowing the board to retain the services of more than one
11nationally recognized professional investment counselor;
12increasing the investment cap on foreign securities;
13providing that the investment cap on foreign securities
14may not be revised, amended, increased, or repealed except
15as provided by general law; allowing retired members to
16elect to receive a reduced retirement benefit in order to
17provide a surviving spouse benefits under certain
18circumstances; allowing DROP participants upon entering
19DROP and annually thereafter to elect as an option for
20accruing annual interest a low-risk variable rate selected
21annually by the board of trustees, in its sole discretion,
22in lieu of a rate reflecting the fund's net investment
23performance, as determined by the board of trustees;
24prohibiting members from selecting certain pension
25contract changes and rejecting others; confirming in part
26the City of Tampa Firefighters and Police Officers Pension
27Contract; providing for severability; providing an
28effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  The City of Tampa is authorized and empowered
33to enter into a supplemental contract with each firefighter or
34police officer who was an active member of the City Pension Fund
35for Firefighters and Police Officers in the City of Tampa on or
36after the date this act becomes a law, or each firefighter or
37police officer who hereafter enters into a pension contract with
38the City, to comply with chapter 2009-97, Laws of Florida.
39     Section 2.  Section 5(C), Section 6, Section 9(C), and
40Section 26(D) of the City of Tampa Firefighters and Police
41Officers Pension Contract as prescribed by Section 28-17 of the
42City of Tampa Code [Ordinance No. 4746-A, enacted September 30,
431969], as amended by Section 28-19 of the City of Tampa Code
44[Ordinance No. 6038-A, enacted September 17, 1974], pursuant to
45chapter 74-613, Laws of Florida, as further amended by Ordinance
46No. 89-314, enacted December 21, 1989, and approved, ratified,
47validated, and confirmed by chapter 90-391, Laws of Florida, as
48further amended by chapter 92-231, Laws of Florida, chapter 94-
49463, Laws of Florida, chapter 98-515, Laws of Florida, chapter
502000-485, Laws of Florida, Ordinance No. 2001-133, enacted July
513, 2001, chapter 2001-288, Laws of Florida, chapter 2002-369,
52Laws of Florida, Ordinance No. 2003-22, enacted January 23,
532003, chapter 2004-427, Laws of Florida, and chapter 2007-304,
54Laws of Florida, are amended to read:
55     SECTION 5.  The general administration and responsibility
56for the proper operation of the pension system and for making
57effective the provisions of this Act are hereby vested in a
58board consisting of nine persons, as follows:
59     (1)  Three members of the City Administration other than
60firefighters or police officers to be appointed as hereinafter
61provided;
62     (2)  Three members of the Fire Department to be elected as
63hereinafter provided; and
64     (3)  Three members of the Police Department to be elected
65as hereinafter provided.
66     (C)  The elective trustees shall be elected in the following
67manner, to wit: by per capita vote of all members of each of said
68respective departments who come within the purview of this Act,
69both active and retired, at elections meetings to be held at
70places designated by the Board, at which elections meetings all
71qualified members entitled to vote shall be notified in person or
72by mail ten days in advance of said election meeting. The
73candidate receiving the majority of votes for each office shall
74be declared elected and shall take office immediately upon
75commencement of the term of office for which elected or as soon
76thereafter as he shall qualify therefor. An election shall be
77held each year not more than sixty thirty and not less than ten
78days prior to the commencement of the terms for which trustees
79are to be elected in that year. The Board of Trustees shall meet,
80organize, and elect one trustee as chairman, one trustee as vice
81chairman, and one trustee as secretary within ten days after any
82trustees are elected and duly qualified.
83     SECTION 6.  Money shall be withdrawn from the Pension Fund
84created by this Act only upon warrants executed by a majority of
85the Board of Trustees. Monies needed for the meeting of the
86current obligations of said fund may be deposited in a
87depository recognized by law for the deposit of funds of the
88State of Florida and upon the posting of similar security for
89that required for state deposits. The Board shall have exclusive
90charge of the investment of any surplus in said fund not needed
91for the current obligations thereof; and said funds shall be
92managed by said Board and shall be invested by said Board in
93accordance with the following:
94     (1)  That the Board shall retain the services of one or more
95a nationally recognized professional investment counselors
96counsel.
97     (2)  That not less than once every six (6) months a written
98opinion shall be obtained from the investment counselor or
99counselors counsel as to the overall condition and composition of
100the investment portfolio.
101     (3)  That the portfolio, representing the principal or
102surplus funds of the Pension Fund may be invested in the
103following securities or other property, real or personal,
104including, but without being limited to, bonds, notes, or other
105evidences of indebtedness issued, or assumed or guaranteed in
106whole or in part by the United States or any of its agencies or
107instrumentalities; or by any foreign government or political
108subdivisions or agencies thereof; or by the State of Florida, or
109by any county, city, school district, municipal corporation, or
110other political subdivision of the State of Florida, both general
111and revenue obligations; in mortgages and other interests in
112realty; or in such corporation bonds, notes, or other evidences
113of indebtedness, and corporation stocks including common and
114preferred stocks, of any corporation created or existing under
115the laws of the United States or any of the states of the United
116States, or of any foreign government or political subdivisions or
117agencies thereof, provided that in making each and all of such
118investments the Board of Trustees shall exercise the judgment and
119care under the circumstances then prevailing which men of
120ordinary prudence, discretion, and intelligence exercise in the
121management of their own affairs, not in regard to speculation but
122in regard to the permanent disposition of their funds,
123considering the probable income therefrom as well as probable
124safety of their capital; provided, however, that not more than
125sixty-five per centum (65%) of said fund, based on the total book
126value of all investments held, shall be invested at any given
127time in common stocks, and that not more than five per centum
128(5%) of said fund shall be invested at any given time in the
129preferred and common, or either, stock of any one corporation
130and its affiliates and that not more than twenty-five per centum
131(25%) ten per centum (10%) of said fund, based on the total book
132value of all investments held, shall be invested at any given time
133in the bonds, notes or other evidences of indebtedness of any
134foreign government or political subdivisions or agencies thereof
135or corporations created or existing under the laws thereof. The
136investment cap on foreign securities may not be revised,
137amended, increased, or repealed except as provided by general
138law.
139     SECTION 9.  To the widow or widower (until death or
140remarriage) and child or children (under the age of eighteen
141(18) years), until death or marriage before reaching the age of
142eighteen (18) years, of any member who dies from causes not
143attributed to his active duties in the departments, provided,
144however, that such member shall have been a member of such
145department for ten (10) years prior to the date of his death,
146the Trustees shall authorize and direct payment in equal monthly
147installments as follows:
148     (C)(1)  The widow or widower of a member who dies while
149receiving a retirement pension shall receive sixty-five per
150centum (65%) of the pension which the member was receiving;
151provided, however, that no pension shall be allowed to any widow
152or widower unless she or he was married to the member prior to
153the date of retirement of the member, except as provided in
154paragraph (2). For the widow or widower of any member of this
155Pension Fund who prior to October 16, 1992 was a member of
156Division B of the General Employees Pension Plan as established
157by Chapter 81-497, Laws of Florida, as amended, upon the
158reaching social security normal retirement age, except as
159provided in Section 28(C) of this Contract, the benefit paid to
160the widow or widower shall be reduced by an amount equal to the
161actual social security benefit earned by the member for
162employment as a firefighter or police officer for the City to
163the extent that such employment is considered to be creditable
164service under this Fund; provided, however, that if the widow or
165widower does not receive the member's accrued social security
166benefit, there shall be no reduction in benefits paid to such
167widow or widower. The effect of such reduction shall be that the
168sum of the benefit paid herein and said social security benefit
169shall be equal to the amount of the benefit otherwise payable
170herein. The widow or widower of each such member shall, upon
171demand by the Board, authorize the Social Security
172Administration to release any information necessary to calculate
173such reduction. The Board shall not make any payment for the
174benefit payable herein for any period during which such widow or
175widower willfully fails or refuses to authorize the release of
176such information in the manner and within the time prescribed by
177rules adopted by the Board.
178     (2)(a)  Members (i) who have been retired for less than
179forty (40) years as of the effective date of this act, (ii) who
180retired or entered DROP prior to October 1, 2002, and (iii) who
181married or remarried after the date of the member's retirement
182may elect prospectively to receive a voluntarily reduced
183retirement benefit payable to the widow or widower. The amount
184of the widow or widower's benefit will be based on the actuarial
185equivalence calculated by the Fund's actuary, and such benefit
186shall not result in any additional cost to the Fund or to the
187plan sponsor than would have been incurred if the member had not
188elected such benefit under this paragraph. Said actuarial
189calculation shall be paid for by the retired member.
190     (b)  The election under subparagraph (a) is available only
191if (i) the spouse is not more than twenty (20) years younger
192than the married or remarried member, (ii) the marriage or
193remarriage occur at least three (3) years prior to the member's
194said election, and (iii) the electing member is restricted to
195exercising this provision for a maximum of two remarriages after
196retirement.
197     SECTION 26.  DEFERRED RETIREMENT OPTION PROGRAM
198     Notwithstanding any other provisions of this contract, and
199subject to the provisions of this section, the Deferred
200Retirement Option Program, hereinafter referred to as the DROP,
201is an option under which an eligible member may elect to have
202the member's pension benefits calculated as of a certain date
203prior to retirement, and accumulate benefits plus the investment
204return pursuant to this section during the DROP calculation
205period. Participation in the DROP does not guarantee employment
206for the DROP calculation period, as defined in this section.
207     (D)  Interest and Administrative Costs - Interest shall
208accumulate annually at the rate to reflect the Fund's net
209investment performance, whether positive or negative, during the
210DROP calculation period, less the cost of administering the
211DROP, all of which shall be determined by the Board of Trustees.
212A DROP participant shall have the opportunity to elect, as
213provided in this subsection, an investment option to be applied
214to such DROP participant's account for the Plan Year when
215entering the DROP and for each subsequent Plan Year. In such
216election, the DROP participant shall choose to have interest
217accumulate annually, whether positive or negative, at either (i)
218a rate reflecting the Fund's net investment performance, as
219determined by the Board of Trustees, or (ii) a rate reflecting a
220low-risk variable rate selected annually by the Board of
221Trustees in its sole discretion. Each election must be made at
222such time, on such forms, and in such manner as the Board of
223Trustees may determine in its sole discretion. If the DROP
224participant fails to make a valid election upon entering the
225DROP, the Fund interest rate shall be applied as provided
226herein. If the DROP participant fails to make a valid election
227in a subsequent Plan Year, the election for the then-current
228Plan Year shall be applied.
229     Section 3.  The changes to the pension contract in this act
230for firefighters and police officers who are active members of
231the City Pension Fund for Firefighters and Police Officers in
232the City of Tampa on or after the date this act becomes a law
233shall be made available in a supplemental pension contract, and
234an individual shall not be permitted to select some of the
235pension contract changes and reject other pension contract
236changes. Any firefighter or police officer who is entitled to
237benefits under the City Pension Fund for Firefighters and Police
238Officers in the City of Tampa who is actively employed as a
239firefighter or police officer in the City of Tampa on or after
240the date this act becomes a law shall have the opportunity to
241sign such supplemental pension contract before October 1, 2010.
242However, any person who becomes a member of the City Pension
243Fund for Firefighters and Police Officers in the City of Tampa
244on or after the date this act becomes a law shall be required as
245a condition of membership into said Pension Fund to sign a
246pension contract which includes the provisions of this act, and
247shall be required to make contributions if required as a result
248of such benefits.
249     Section 4.  The City of Tampa Firefighters and Police
250Officers Pension Contract as prescribed by Section 28-17 of the
251City of Tampa Code [Ordinance No. 4746-A, enacted September 30,
2521969], as amended by Section 28-19 of the City of Tampa Code
253[Ordinance No. 6038-A, enacted September 17, 1974], pursuant to
254chapter 74-613, Laws of Florida, as further amended by Ordinance
255No. 89-314, enacted December 21, 1989, and approved, ratified,
256validated, and confirmed by chapter 90-391, Laws of Florida, as
257further amended by chapter 92-231, Laws of Florida, chapter 94-
258463, Laws of Florida, chapter 98-515, Laws of Florida, chapter
2592000-485, Laws of Florida, Ordinance No. 2001-133, enacted July
2603, 2001, chapter 2001-288, Laws of Florida, chapter 2002-369,
261Laws of Florida, Ordinance No. 2003-22, enacted January 23,
2622003, chapter 2004-427, Laws of Florida, and chapter 2007-304,
263Laws of Florida, is in all other respects approved, ratified,
264validated, and confirmed.
265     Section 5.  If any provision of this act or its application
266to any person or circumstance is held invalid, the invalidity
267does not affect other provisions or applications of the act
268which can be given effect without the invalid provision or
269application, and to this end the provisions of this act are
270severable.
271     Section 6.  This act shall take effect October 1, 2010.


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