HB 1353

1	A bill to be entitled
2	An act relating to the Florida Protection of Public
3	Employee Retirement Benefits Act; amending s. 112.61,
4	F.S.; revising legislative intent; amending s. 112.62,
5	F.S.; revising application; amending s. 112.661, F.S.;
6	revising the scope of limitations and conditions on the
7	investment of the assets of any covered local retirement
8	system or plan; providing for severability; providing an
9	effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1.  Section 112.61, Florida Statutes, is amended to
14	read:
15	112.61  Legislative intent.-It is the intent of the
16	Legislature in implementing the provisions of s. 14, Art. X of
17	the State Constitution, relating to governmental retirement
18	systems, that such retirement systems or plans be managed,
19	administered, operated, and funded in such a manner as to
20	maximize the protection of public employee retirement benefits.
21	Inherent in this intent is the recognition that the pension
22	liabilities attributable to the benefits promised public
23	employees be fairly, orderly, and equitably funded by the
24	current, as well as future, taxpayers. Accordingly, except as
25	herein provided, it is the intent of this act to prohibit the
26	use of any procedure, methodology, or assumptions the effect of
27	which is to transfer to future taxpayers any portion of the
28	costs which may reasonably have been expected to be paid by the
29	current taxpayers. Actuarial experience may be used to fund
30	additional benefits, provided that the present value of such
31	benefits does not exceed the net actuarial experience
32	accumulated from all sources of gains and losses. This act
33	hereby establishes minimum standards for the operation and
34	funding of all public employee retirement systems and plans.
35	Section 2.  Section 112.62, Florida Statutes, is amended to
36	read:
37	112.62  Application.-The provisions of this part are
38	applicable to any and all units, agencies, branches,
39	departments, boards, and institutions of state, county, special
40	district, and municipal governments which participate in,
41	operate, or administer a retirement system or plan for public
42	employees, funded in whole or in part by public funds. The
43	provisions of this part supplement and, to the extent there are
44	conflicts, prevail over the provisions of existing laws and
45	local ordinances relating to such retirement systems or plans.
46	Section 3.  Paragraph (a) of subsection (5) of section
47	112.661, Florida Statutes, is amended to read:
48	112.661  Investment policies.-Investment of the assets of
49	any local retirement system or plan must be consistent with a
50	written investment policy adopted by the board. Such policies
51	shall be structured to maximize the financial return to the
52	retirement system or plan consistent with the risks incumbent in
53	each investment and shall be structured to establish and
54	maintain an appropriate diversification of the retirement system
55	or plan's assets.
56	(5)  AUTHORIZED INVESTMENTS.-
57	(a)  The investment policy shall list investments
58	authorized by the board. Investments not listed in the
59	investment policy are prohibited. Unless otherwise authorized by
60	law or ordinance, The investment of the assets of any local
61	retirement system or plan covered by this part shall be subject
62	to the limitations and conditions set forth in s. 215.47(1)-(6),
63	(8), (9), (11) and (17).
64	Section 4.  If any provision of this act or its application
65	to any person or circumstance is held invalid, the invalidity
66	does not affect other provisions or applications of the act
67	which can be given effect without the invalid provision or
68	application, and to this end the provisions of this act are
69	severable.
70	Section 5.  This act shall take effect upon becoming a law.

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