HB 1353

1
A bill to be entitled
2An act relating to the Florida Protection of Public
3Employee Retirement Benefits Act; amending s. 112.61,
4F.S.; revising legislative intent; amending s. 112.62,
5F.S.; revising application; amending s. 112.661, F.S.;
6revising the scope of limitations and conditions on the
7investment of the assets of any covered local retirement
8system or plan; providing for severability; providing an
9effective date.
10
11Be It Enacted by the Legislature of the State of Florida:
12
13     Section 1.  Section 112.61, Florida Statutes, is amended to
14read:
15     112.61  Legislative intent.-It is the intent of the
16Legislature in implementing the provisions of s. 14, Art. X of
17the State Constitution, relating to governmental retirement
18systems, that such retirement systems or plans be managed,
19administered, operated, and funded in such a manner as to
20maximize the protection of public employee retirement benefits.
21Inherent in this intent is the recognition that the pension
22liabilities attributable to the benefits promised public
23employees be fairly, orderly, and equitably funded by the
24current, as well as future, taxpayers. Accordingly, except as
25herein provided, it is the intent of this act to prohibit the
26use of any procedure, methodology, or assumptions the effect of
27which is to transfer to future taxpayers any portion of the
28costs which may reasonably have been expected to be paid by the
29current taxpayers. Actuarial experience may be used to fund
30additional benefits, provided that the present value of such
31benefits does not exceed the net actuarial experience
32accumulated from all sources of gains and losses. This act
33hereby establishes minimum standards for the operation and
34funding of all public employee retirement systems and plans.
35     Section 2.  Section 112.62, Florida Statutes, is amended to
36read:
37     112.62  Application.-The provisions of this part are
38applicable to any and all units, agencies, branches,
39departments, boards, and institutions of state, county, special
40district, and municipal governments which participate in,
41operate, or administer a retirement system or plan for public
42employees, funded in whole or in part by public funds. The
43provisions of this part supplement and, to the extent there are
44conflicts, prevail over the provisions of existing laws and
45local ordinances relating to such retirement systems or plans.
46     Section 3.  Paragraph (a) of subsection (5) of section
47112.661, Florida Statutes, is amended to read:
48     112.661  Investment policies.-Investment of the assets of
49any local retirement system or plan must be consistent with a
50written investment policy adopted by the board. Such policies
51shall be structured to maximize the financial return to the
52retirement system or plan consistent with the risks incumbent in
53each investment and shall be structured to establish and
54maintain an appropriate diversification of the retirement system
55or plan's assets.
56     (5)  AUTHORIZED INVESTMENTS.-
57     (a)  The investment policy shall list investments
58authorized by the board. Investments not listed in the
59investment policy are prohibited. Unless otherwise authorized by
60law or ordinance, The investment of the assets of any local
61retirement system or plan covered by this part shall be subject
62to 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
65to any person or circumstance is held invalid, the invalidity
66does not affect other provisions or applications of the act
67which can be given effect without the invalid provision or
68application, and to this end the provisions of this act are
69severable.
70     Section 5.  This act shall take effect upon becoming a law.


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