Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1128
       
       
       
       
       
       
                                Barcode 138858                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/15/2011           .                                
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       The Committee on Budget (Richter) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Present paragraph (f) of subsection (1) of
    6  section 112.63, Florida Statutes, is redesignated as paragraph
    7  (g), and a new paragraph (f) is added to that subsection, to
    8  read:
    9         112.63 Actuarial reports and statements of actuarial
   10  impact; review.—
   11         (1) Each retirement system or plan subject to the
   12  provisions of this act shall have regularly scheduled actuarial
   13  reports prepared and certified by an enrolled actuary. The
   14  actuarial report shall consist of, but shall not be limited to,
   15  the following:
   16         (f) A disclosure of the present value of the plan’s accrued
   17  vested, nonvested, and total benefits, as adopted by the
   18  Financial Accounting Standards Board, using the Florida
   19  Retirement System’s assumed rate of return, in order to promote
   20  the comparability of actuarial data between local plans.
   21  
   22  The actuarial cost methods utilized for establishing the amount
   23  of the annual actuarial normal cost to support the promised
   24  benefits shall only be those methods approved in the Employee
   25  Retirement Income Security Act of 1974 and as permitted under
   26  regulations prescribed by the Secretary of the Treasury.
   27         Section 2. Subsections (11) through (13) are added to
   28  section 112.66, Florida Statutes, to read:
   29         112.66 General provisions.—The following general provisions
   30  relating to the operation and administration of any retirement
   31  system or plan covered by this part shall be applicable:
   32         (11) For noncollectively bargained service earned on or
   33  after July 1, 2011, or for service earned under collective
   34  bargaining agreements entered into on or after July 1, 2011, a
   35  pension system or plan sponsored by a local government may not
   36  include any overtime compensation in excess of 300 hours per
   37  year, or any payments for accrued unused sick leave or annual
   38  leave for purposes of calculating retirement benefits. For those
   39  members whose terms and conditions of employment are
   40  collectively bargained, this subsection is effective for the
   41  first agreement entered into on or after July 1, 2011. This
   42  subsection does not apply to state-administered retirement
   43  systems or plans.
   44         (12) An actuarial or cash surplus in any system or plan may
   45  not be used for any expenses outside the plan.
   46         (13)A local government sponsor of a retirement system or
   47  plan may not reduce contributions required to fund the normal
   48  cost. This subsection does not apply to state-administered
   49  retirement systems or plans.
   50         Section 3. Present paragraphs (e) and (f) of subsection (1)
   51  of section 112.665, Florida Statutes, are redesignated as
   52  paragraphs (f) and (g), respectively, and a new paragraph (e) is
   53  added to that subsection, to read:
   54         112.665 Duties of Department of Management Services.—
   55         (1) The Department of Management Services shall:
   56         (e) Provide a fact sheet for each participating local
   57  government defined benefit pension plan summarizing the plan’s
   58  actuarial status. The fact sheet should provide a summary of the
   59  plan’s most current actuarial data, minimum funding requirements
   60  as a percentage of pay, and a 5-year history of funded ratios.
   61  The fact sheet must include a brief explanation of each element
   62  in order to maximize the transparency of the local government
   63  plans. These documents shall be posted on the department’s
   64  website. Plan sponsors that have websites must provide a link to
   65  the department’s website.
   66         Section 4. Paragraph (b) of subsection (2) of section
   67  121.051, Florida Statutes, is amended to read:
   68         121.051 Participation in the system.—
   69         (2) OPTIONAL PARTICIPATION.—
   70         (b)1. The governing body of any municipality, metropolitan
   71  planning organization, or special district in the state may
   72  elect to participate in the system upon proper application to
   73  the administrator and may cover all or any of its units as
   74  approved by the Secretary of Health and Human Services and the
   75  administrator. The department shall adopt rules establishing
   76  provisions for the submission of documents necessary for such
   77  application. Before Prior to being approved for participation in
   78  the Florida Retirement System, the governing body of any such
   79  municipality, metropolitan planning organization, or special
   80  district that has a local retirement system shall submit to the
   81  administrator a certified financial statement showing the
   82  condition of the local retirement system as of a date within 3
   83  months before prior to the proposed effective date of membership
   84  in the Florida Retirement system. The statement must be
   85  certified by a recognized accounting firm that is independent of
   86  the local retirement system. All required documents necessary
   87  for extending Florida Retirement System coverage must be
   88  received by the department for consideration at least 15 days
   89  before prior to the proposed effective date of coverage. If the
   90  municipality, metropolitan planning organization, or special
   91  district does not comply with this requirement, the department
   92  may require that the effective date of coverage be changed.
   93         2. A local government employer sponsoring a local
   94  government retirement system or plan, including a firefighters’
   95  pension plan or a municipal police officers’ pension plan
   96  established in accordance with chapter 175 or chapter 185, is
   97  eligible for membership under this chapter if the local
   98  government retirement system or plan has no unfunded actuarial
   99  liabilities. Any municipality city, metropolitan planning
  100  organization, or special district that has an existing
  101  retirement system covering the employees in the units that are
  102  to be brought under the Florida Retirement System may
  103  participate only after holding a referendum in which all
  104  employees in the affected units have the right to participate.
  105  Only those employees electing coverage under the Florida
  106  Retirement System by affirmative vote in the said referendum are
  107  shall be eligible for coverage under this chapter, and those not
  108  participating or electing not to be covered by the Florida
  109  Retirement system shall remain in their present systems and are
  110  shall not be eligible for coverage under this chapter. After the
  111  referendum is held, all future employees are shall be compulsory
  112  members of the Florida Retirement System.
  113         3. The governing body of any municipality city,
  114  metropolitan planning organization, or special district
  115  complying with subparagraph 1. may elect to provide, or not
  116  provide, benefits based on past service of officers and
  117  employees as described in s. 121.081(1). However, if such
  118  employer elects to provide past service benefits, such benefits
  119  must be provided for all officers and employees of its covered
  120  group.
  121         4. Once this election is made and approved it may not be
  122  revoked, except pursuant to subparagraphs 5. and 6., and all
  123  present officers and employees electing coverage under this
  124  chapter and all future officers and employees are shall be
  125  compulsory members of the Florida Retirement System.
  126         5. Subject to the conditions set forth in subparagraph 6.,
  127  the governing body of any hospital licensed under chapter 395
  128  which is governed by the board of a special district as defined
  129  in s. 189.403(1) or by the board of trustees of a public health
  130  trust created under s. 154.07, hereinafter referred to as
  131  “hospital district,” and which participates in the system, may
  132  elect to cease participation in the system with regard to future
  133  employees in accordance with the following procedure:
  134         a. No more than 30 days and at least 7 days before adopting
  135  a resolution to partially withdraw from the Florida Retirement
  136  system and establish an alternative retirement plan for future
  137  employees, a public hearing must be held on the proposed
  138  withdrawal and proposed alternative plan.
  139         b. From 7 to 15 days before such hearing, notice of intent
  140  to withdraw, specifying the time and place of the hearing, must
  141  be provided in writing to employees of the hospital district
  142  proposing partial withdrawal and must be published in a
  143  newspaper of general circulation in the area affected, as
  144  provided by ss. 50.011-50.031. Proof of publication of such
  145  notice shall be submitted to the department of Management
  146  Services.
  147         c. The governing body of any hospital district seeking to
  148  partially withdraw from the system must, before such hearing,
  149  have an actuarial report prepared and certified by an enrolled
  150  actuary, as defined in s. 112.625(3), illustrating the cost to
  151  the hospital district of providing, through the retirement plan
  152  that the hospital district is to adopt, benefits for new
  153  employees comparable to those provided under the Florida
  154  Retirement system.
  155         d. Upon meeting all applicable requirements of this
  156  subparagraph, and subject to the conditions set forth in
  157  subparagraph 6., partial withdrawal from the system and adoption
  158  of the alternative retirement plan may be accomplished by
  159  resolution duly adopted by the hospital district board. The
  160  hospital district board must provide written notice of such
  161  withdrawal to the division by mailing a copy of the resolution
  162  to the division, postmarked no later than December 15, 1995. The
  163  withdrawal shall take effect January 1, 1996.
  164         6. Following the adoption of a resolution under sub
  165  subparagraph 5.d., all employees of the withdrawing hospital
  166  district who were participants in the Florida Retirement System
  167  before prior to January 1, 1996, shall remain as participants in
  168  the system for as long as they are employees of the hospital
  169  district, and all rights, duties, and obligations between the
  170  hospital district, the system, and the employees shall remain in
  171  full force and effect. Any employee who is hired or appointed on
  172  or after January 1, 1996, may not participate in the Florida
  173  Retirement System, and the withdrawing hospital district has
  174  shall have no obligation to the system with respect to such
  175  employees.
  176         Section 5. Subsection (3) of section 175.032, Florida
  177  Statutes, is amended to read:
  178         175.032 Definitions.—For any municipality, special fire
  179  control district, chapter plan, local law municipality, local
  180  law special fire control district, or local law plan under this
  181  chapter, the following words and phrases have the following
  182  meanings:
  183         (3) “Compensation” or “salary” means, for noncollectively
  184  bargained service earned before July 1, 2011, or for service
  185  earned under collective bargaining agreements in place before
  186  July 1, 2011, the fixed monthly remuneration paid a firefighter.
  187  If; where, as in the case of a volunteer firefighter,
  188  remuneration is based on actual services rendered, as in the
  189  case of a volunteer firefighter, the term means the total cash
  190  remuneration received yearly for such services, prorated on a
  191  monthly basis. For noncollectively bargained service earned on
  192  or after July 1, 2011, or for service earned under collective
  193  bargaining agreements entered into on or after July 1, 2011, the
  194  term has the same meaning except that overtime compensation in
  195  excess of 300 hours per year, or payments for accrued unused
  196  sick or annual leave, may not be included for purposes of
  197  calculating retirement benefits.
  198         (a) A retirement trust fund or plan may use a definition of
  199  salary other than the definition in this subsection but only if
  200  the monthly retirement income payable to each firefighter
  201  covered by the retirement trust fund or plan, as determined
  202  under s. 175.162(2)(a) and using such other definition, equals
  203  or exceeds the monthly retirement income that would be payable
  204  to each firefighter if his or her monthly retirement income were
  205  determined under s. 175.162(2)(a) and using the definition in
  206  this subsection.
  207         (a)(b) Any retirement trust fund or plan that which now or
  208  hereafter meets the requirements of this chapter does shall not,
  209  solely by virtue of this subsection, reduce or diminish the
  210  monthly retirement income otherwise payable to each firefighter
  211  covered by the retirement trust fund or plan.
  212         (b)(c) The member’s compensation or salary contributed as
  213  employee-elective salary reductions or deferrals to any salary
  214  reduction, deferred compensation, or tax-sheltered annuity
  215  program authorized under the Internal Revenue Code shall be
  216  deemed to be the compensation or salary the member would receive
  217  if he or she were not participating in such program and shall be
  218  treated as compensation for retirement purposes under this
  219  chapter.
  220         (c)(d) For any person who first becomes a member in any
  221  plan year beginning on or after January 1, 1996, compensation
  222  for that any plan year may shall not include any amounts in
  223  excess of the Internal Revenue Code s. 401(a)(17) limitation,
  224  (as amended by the Omnibus Budget Reconciliation Act of 1993),
  225  which limitation of $150,000 shall be adjusted as required by
  226  federal law for qualified government plans and shall be further
  227  adjusted for changes in the cost of living in the manner
  228  provided by Internal Revenue Code s. 401(a)(17)(B). For any
  229  person who first became a member before prior to the first plan
  230  year beginning on or after January 1, 1996, the limitation on
  231  compensation may shall be not be less than the maximum
  232  compensation amount that was allowed to be taken into account
  233  under the plan as in effect on July 1, 1993, which limitation
  234  shall be adjusted for changes in the cost of living since 1989
  235  in the manner provided by Internal Revenue Code s.
  236  401(a)(17)(1991).
  237         Section 6. Section 175.351, Florida Statutes, is amended to
  238  read:
  239         175.351 Municipalities and special fire control districts
  240  having their own pension plans for firefighters.—For any
  241  municipality, special fire control district, local law
  242  municipality, local law special fire control district, or local
  243  law plan under this chapter, in order for municipalities and
  244  special fire control districts with their own pension plans for
  245  firefighters, or for firefighters and police officers if, where
  246  included, to participate in the distribution of the tax fund
  247  established pursuant to s. 175.101, local law plans must meet
  248  the minimum benefits and minimum standards set forth in this
  249  chapter.
  250         (1) PREMIUM TAX INCOME.—If a municipality or special fire
  251  control district has a pension plan for firefighters, or a
  252  pension plan for firefighters and police officers if, where
  253  included, which in the opinion of the division meets the minimum
  254  benefits and minimum standards set forth in this chapter, the
  255  board of trustees of the pension plan, as approved by a majority
  256  of firefighters, or firefighters and police officers, of the
  257  municipality or fire control district, may:
  258         (a) Place the income from the premium tax in s. 175.101 in
  259  such pension plan for the sole and exclusive use of its
  260  firefighters, or for firefighters and police officers if, where
  261  included, where it shall become an integral part of that pension
  262  plan and shall be used to pay extra benefits to the
  263  firefighters, or firefighters and police officers, included in
  264  that pension plan; or
  265         (b) Place the income from the premium tax in s. 175.101 in
  266  a separate supplemental plan to pay extra benefits to
  267  firefighters, or to firefighters and police officers if where
  268  included, participating in such separate supplemental plan.
  269         (2) The premium tax provided by this chapter shall in all
  270  cases be used in its entirety to provide extra benefits to
  271  firefighters, or to firefighters and police officers if, where
  272  included. However, local law plans in effect on October 1, 1998,
  273  must shall be required to comply with the minimum benefit
  274  provisions of this chapter only to the extent that additional
  275  premium tax revenues become available to incrementally fund the
  276  cost of such compliance as provided in s. 175.162(2)(a). If When
  277  a plan is in compliance with such minimum benefit provisions, as
  278  subsequent additional premium tax revenues become available,
  279  they must shall be used to provide extra benefits. For the
  280  purpose of this chapter, “additional premium tax revenues” means
  281  revenues received by a municipality or special fire control
  282  district pursuant to s. 175.121 which exceed that amount
  283  received for calendar year 1997, and the term “extra benefits”
  284  means benefits in addition to or greater than those provided to
  285  general employees of the municipality and in addition to those
  286  in existence for firefighters on March 12, 1999. Local law plans
  287  created by special act before May 27 23, 1939, shall be deemed
  288  to comply with this chapter. Notwithstanding any other
  289  provisions of this section, if, based on the actuarial valuation
  290  prepared immediately before March 1, 2011:
  291         (a) A defined benefit plan’s market value of assets,
  292  divided by present value of accrued benefits, is less than 80
  293  percent, 50 percent of the annual premium tax revenues in excess
  294  of the adjusted base amount and 50 percent of accumulated excess
  295  premium tax revenues held in reserve shall be used to pay the
  296  plan’s actuarial accrued liability until the market value of
  297  assets, divided by the present value of accrued benefits,
  298  exceeds 80 percent. For purposes of this paragraph, the term
  299  “adjusted base amount” means the amount received for calendar
  300  year 1997, plus any amount attributable to the enactment of
  301  minimum benefits and any amount attributable to extra benefit
  302  improvements enacted since March 12, 1999.
  303         (b) For a supplemental plan that exists in conjunction with
  304  a defined benefit plan under this chapter, if the defined
  305  benefit plan’s market value of assets, divided by present value
  306  of accrued benefits, is less than 70 percent, the premium tax
  307  revenues in excess of the premium tax revenues received for
  308  calendar year 2009 must be used to pay the defined plan’s
  309  actuarial accrued liability until the defined benefit plan’s
  310  market value of assets, divided by present value of accrued
  311  benefits, is at least 80 percent.
  312         (3)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  313  retirement plan or amendment to a retirement plan may not shall
  314  be proposed for adoption unless the proposed plan or amendment
  315  contains an actuarial estimate of the costs involved. No Such
  316  proposed plan or proposed plan change may not shall be adopted
  317  without the approval of the municipality, special fire control
  318  district, or, where permitted, the Legislature. Copies of the
  319  proposed plan or proposed plan change and the actuarial impact
  320  statement of the proposed plan or proposed plan change shall be
  321  furnished to the division before prior to the last public
  322  hearing thereon. Such statement must shall also indicate whether
  323  the proposed plan or proposed plan change is in compliance with
  324  s. 14, Art. X of the State Constitution and those provisions of
  325  part VII of chapter 112 which are not expressly provided in this
  326  chapter. Notwithstanding any other provision, only those local
  327  law plans created by special act of legislation before prior to
  328  May 27 23, 1939, are shall be deemed to meet the minimum
  329  benefits and minimum standards only in this chapter.
  330         (4)(3) Notwithstanding any other provision, with respect to
  331  any supplemental plan municipality:
  332         (a) Section 175.032(3)(a) shall not apply, and A local law
  333  plan and a supplemental plan may continue to use their
  334  definition of compensation or salary in existence on March 12,
  335  1999 the effective date of this act.
  336         (b) Section 175.061(1)(b) does shall not apply, and a local
  337  law plan and a supplemental plan shall continue to be
  338  administered by a board or boards of trustees numbered,
  339  constituted, and selected as the board or boards were numbered,
  340  constituted, and selected on December 1, 2000.
  341         (c) The election set forth in paragraph (1)(b) is shall be
  342  deemed to have been made.
  343         (5)(4) The retirement plan setting forth the benefits and
  344  the trust agreement, if any, covering the duties and
  345  responsibilities of the trustees and the regulations of the
  346  investment of funds must be in writing, and copies thereof must
  347  be made available to the participants and to the general public.
  348         Section 7. Subsection (4) of section 185.02, Florida
  349  Statutes, is amended to read:
  350         185.02 Definitions.—For any municipality, chapter plan,
  351  local law municipality, or local law plan under this chapter,
  352  the following words and phrases as used in this chapter shall
  353  have the following meanings, unless a different meaning is
  354  plainly required by the context:
  355         (4) “Compensation” or “salary” means, for noncollectively
  356  bargained service earned before July 1, 2011, or for service
  357  earned under collective bargaining agreements in place before
  358  July 1, 2011, the total cash remuneration including “overtime”
  359  paid by the primary employer to a police officer for services
  360  rendered, but not including any payments for extra duty or a
  361  special detail work performed on behalf of a second party
  362  employer. However, A local law plan may limit the amount of
  363  overtime payments which can be used for retirement benefit
  364  calculation purposes; however, but in no event shall such
  365  overtime limit may not be less than 300 hours per officer per
  366  calendar year. For noncollectively bargained service earned on
  367  or after July 1, 2011, or for service earned under collective
  368  bargaining agreements entered into on or after July 1, 2011, the
  369  term has the same meaning except that overtime compensation in
  370  excess of 300 hours per year, or payments for accrued unused
  371  sick or annual leave, may not be included for purposes of
  372  calculating retirement benefits.
  373         (a) Any retirement trust fund or plan that which now or
  374  hereafter meets the requirements of this chapter does shall not,
  375  solely by virtue of this subsection, reduce or diminish the
  376  monthly retirement income otherwise payable to each police
  377  officer covered by the retirement trust fund or plan.
  378         (b) The member’s compensation or salary contributed as
  379  employee-elective salary reductions or deferrals to any salary
  380  reduction, deferred compensation, or tax-sheltered annuity
  381  program authorized under the Internal Revenue Code shall be
  382  deemed to be the compensation or salary the member would receive
  383  if he or she were not participating in such program and shall be
  384  treated as compensation for retirement purposes under this
  385  chapter.
  386         (c) For any person who first becomes a member in any plan
  387  year beginning on or after January 1, 1996, compensation for
  388  that any plan year may shall not include any amounts in excess
  389  of the Internal Revenue Code s. 401(a)(17) limitation, (as
  390  amended by the Omnibus Budget Reconciliation Act of 1993), which
  391  limitation of $150,000 shall be adjusted as required by federal
  392  law for qualified government plans and shall be further adjusted
  393  for changes in the cost of living in the manner provided by
  394  Internal Revenue Code s. 401(a)(17)(B). For any person who first
  395  became a member before prior to the first plan year beginning on
  396  or after January 1, 1996, the limitation on compensation may
  397  shall be not be less than the maximum compensation amount that
  398  was allowed to be taken into account under the plan as in effect
  399  on July 1, 1993, which limitation shall be adjusted for changes
  400  in the cost of living since 1989 in the manner provided by
  401  Internal Revenue Code s. 401(a)(17)(1991).
  402         Section 8. Section 185.35, Florida Statutes, is amended to
  403  read:
  404         185.35 Municipalities having their own pension plans for
  405  police officers.—For any municipality, chapter plan, local law
  406  municipality, or local law plan under this chapter, in order for
  407  municipalities with their own pension plans for police officers,
  408  or for police officers and firefighters if where included, to
  409  participate in the distribution of the tax fund established
  410  pursuant to s. 185.08, local law plans must meet the minimum
  411  benefits and minimum standards set forth in this chapter:
  412         (1) PREMIUM TAX INCOME.—If a municipality has a pension
  413  plan for police officers, or for police officers and
  414  firefighters if where included, which, in the opinion of the
  415  division, meets the minimum benefits and minimum standards set
  416  forth in this chapter, the board of trustees of the pension
  417  plan, as approved by a majority of police officers, or police
  418  officers and firefighters, of the municipality, may:
  419         (a) Place the income from the premium tax in s. 185.08 in
  420  such pension plan for the sole and exclusive use of its police
  421  officers, or its police officers and firefighters if where
  422  included, where it shall become an integral part of that pension
  423  plan and shall be used to pay extra benefits to the police
  424  officers, or police officers and firefighters, included in that
  425  pension plan; or
  426         (b) May place the income from the premium tax in s. 185.08
  427  in a separate supplemental plan to pay extra benefits to the
  428  police officers, or police officers and firefighters if where
  429  included, participating in such separate supplemental plan.
  430         (2) The premium tax provided by this chapter shall in all
  431  cases be used in its entirety to provide extra benefits to
  432  police officers, or to police officers and firefighters if,
  433  where included. However, local law plans in effect on October 1,
  434  1998, must shall be required to comply with the minimum benefit
  435  provisions of this chapter only to the extent that additional
  436  premium tax revenues become available to incrementally fund the
  437  cost of such compliance as provided in s. 185.16(2). If When a
  438  plan is in compliance with such minimum benefit provisions, as
  439  subsequent additional tax revenues become available, they shall
  440  be used to provide extra benefits. For the purpose of this
  441  chapter, “additional premium tax revenues” means revenues
  442  received by a municipality pursuant to s. 185.10 which exceed
  443  the amount received for calendar year 1997, and the term “extra
  444  benefits” means benefits in addition to or greater than those
  445  provided to general employees of the municipality and in
  446  addition to those in existence for police officers on March 12,
  447  1999. Local law plans created by special act before May 27 23,
  448  1939, shall be deemed to comply with this chapter.
  449  Notwithstanding any other provisions of this section, if, based
  450  on the actuarial valuation prepared immediately before March 1,
  451  2011:
  452         (a) A defined benefit plan’s market value of assets,
  453  divided by present value of accrued benefits, is less than 80
  454  percent, 50 percent of the annual premium tax revenues in excess
  455  of the adjusted base amount and 50 percent of accumulated excess
  456  premium tax revenues held in reserve shall be used to pay the
  457  plan’s actuarial accrued liability until the market value of
  458  assets, divided by present value of accrued benefits, exceeds 80
  459  percent. For purposes of this paragraph, the term “adjusted base
  460  amount” means the amount received for calendar year 1997, plus
  461  any amount attributable to the enactment of minimum benefits and
  462  any amount attributable to extra benefit improvements enacted
  463  since March 12, 1999.
  464         (b) For a supplemental plan that exists in conjunction with
  465  a defined benefit plan under this chapter, if the defined
  466  benefit plan’s market value of assets, divided by present value
  467  of accrued benefits, is less than 70 percent, the premium tax
  468  revenues in excess of the premium tax revenues received for
  469  calendar year 2009 must be used to pay the defined benefit
  470  plan’s actuarial accrued liability until the market value of
  471  assets, divided by present value of accrued benefits, is at
  472  least 80 percent.
  473         (3)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  474  retirement plan or amendment to a retirement plan may not shall
  475  be proposed for adoption unless the proposed plan or amendment
  476  contains an actuarial estimate of the costs involved. No Such
  477  proposed plan or proposed plan change may not shall be adopted
  478  without the approval of the municipality or, where permitted,
  479  the Legislature. Copies of the proposed plan or proposed plan
  480  change and the actuarial impact statement of the proposed plan
  481  or proposed plan change shall be furnished to the division
  482  before prior to the last public hearing thereon. Such statement
  483  must shall also indicate whether the proposed plan or proposed
  484  plan change is in compliance with s. 14, Art. X of the State
  485  Constitution and those provisions of part VII of chapter 112
  486  which are not expressly provided in this chapter.
  487  Notwithstanding any other provision, only those local law plans
  488  created by special act of legislation before prior to May 27 23,
  489  1939, are shall be deemed to meet the minimum benefits and
  490  minimum standards only in this chapter.
  491         (4)(3) Notwithstanding any other provision, with respect to
  492  any supplemental plan municipality:
  493         (a) Section 185.02(4)(a) does shall not apply, and a local
  494  law plan and a supplemental plan may continue to use their
  495  definition of compensation or salary in existence on March 12,
  496  1999 the effective date of this act.
  497         (b) Section 185.05(1)(b) does shall not apply, and a local
  498  law plan and a supplemental plan shall continue to be
  499  administered by a board or boards of trustees numbered,
  500  constituted, and selected as the board or boards were numbered,
  501  constituted, and selected on December 1, 2000.
  502         (c) The election set forth in paragraph (1)(b) is shall be
  503  deemed to have been made.
  504         (5)(4) The retirement plan setting forth the benefits and
  505  the trust agreement, if any, covering the duties and
  506  responsibilities of the trustees and the regulations of the
  507  investment of funds must be in writing and copies made available
  508  to the participants and to the general public.
  509         Section 9. Financial rating of local pension plans.—The
  510  Department of Financial Services shall develop standardized
  511  ratings for classifying the financial strength of all local
  512  government defined benefit pension plans.
  513         (1) In assigning a rating to a plan, the department shall
  514  consider, without limitation:
  515         (a) The plan’s current and future unfunded liabilities.
  516         (b) The plan’s net asset value, managed returns, and funded
  517  ratio.
  518         (c) Metrics related to the sustainability of the plan,
  519  including, but not limited to, the percentage that the annual
  520  contribution is of the participating employee payroll.
  521         (d) Municipal bond ratings for the local government, if
  522  applicable.
  523         (e) Whether the local government has reduced contribution
  524  rates to the plan when the plan has an actuarial surplus.
  525         (f) Whether the local government uses any actuarial surplus
  526  in the plan for obligations outside the plan.
  527         (2) The department may obtain all necessary data to
  528  formulate the ratings from all relevant entities, including
  529  local pension boards, local governments, and the Division of
  530  Retirement, all of which shall cooperate with the department in
  531  supplying all necessary information.
  532         (3) The ratings shall be posted on the department’s website
  533  in a standardized format.
  534         Section 10. Task Force on Public Employee Disability
  535  Presumptions.—
  536         (1) The Task Force on Public Employee Disability
  537  Presumptions is created for the purpose of developing findings
  538  and issuing recommendations on the disability presumptions in
  539  ss. 112.18, 175.231, and 185.34, Florida Statutes.
  540         (2) All members of the task force shall be appointed on or
  541  before July 15, 2011, and the task force shall hold its first
  542  meeting on or before August 15, 2011. The task force shall be
  543  composed of eight members as follows:
  544         (a) Three members appointed by the President of the Senate,
  545  one of whom must be an attorney in private practice who has
  546  experience in the relevant laws; one of whom must be a
  547  representative of organized labor and who is a member of a
  548  pension plan under chapter 175, Florida Statutes; and one of
  549  whom must be from the Florida Association of Counties.
  550         (b) Three members appointed by the Speaker of the House of
  551  Representatives, one of whom must be an attorney in private
  552  practice who has experience in the relevant laws; one of whom
  553  must be a representative of organized labor and who is a member
  554  of a pension plan under chapter 185, Florida Statutes; and one
  555  of whom must be from the Florida League of Cities.
  556         (c) A member employed by the Division of Retirement of the
  557  Department of Management Services who has experience in local
  558  government pension plans, appointed by the Governor.
  559         (d) A member employed by the Department of Financial
  560  Services who has relevant expertise in state risk management,
  561  appointed by the Chief Financial Officer.
  562         (3) The task force shall address issues, including, but not
  563  limited to:
  564         (a) Data related to the operation of the statutory
  565  disability presumptions.
  566         (b) The manner in which other states handle disability
  567  presumptions.
  568         (c) Proposals for changes to the existing disability
  569  presumptions.
  570         (4) The Department of Financial Services shall provide
  571  administrative support to the task force.
  572         (5) Upon request, the Auditor General shall provide
  573  technical assistance to the task force regarding local
  574  government auditing and finances.
  575         (6) Members of the task force shall serve without
  576  compensation while in the performance of their duties, but are
  577  entitled to reimbursement for per diem and travel expenses in
  578  accordance with s. 112.061, Florida Statutes.
  579         (7) The task force may obtain data, information, and
  580  assistance from any officer or state agency and any political
  581  subdivision thereof. All such officers, agencies, and political
  582  subdivisions shall provide the task force with all relevant
  583  information and assistance on any matter within their knowledge
  584  or control.
  585         (8) The task force shall submit a report, including
  586  findings and recommendations, to the Governor, the Chief
  587  Financial Officer, the President of the Senate, and the Speaker
  588  of the House of Representatives by January 1, 2012. The report
  589  must include specific recommendations for legislative action
  590  during the 2012 Regular Session of the Legislature.
  591         (9) The task force is dissolved upon submission of its
  592  report.
  593         Section 11. By December 1, 2011, the Department of
  594  Financial Services shall submit a report and recommendations to
  595  the Governor, the President of the Senate, and the Speaker of
  596  the House of Representatives on actions to be taken to increase
  597  the visibility and transparency of local government pension
  598  plans, including, but not limited to, those created pursuant to
  599  chapter 175 or chapter 185, Florida Statutes, with the goal of
  600  increasing the ability of a taxpayer or policymaker to assess
  601  the financial health of the local plans. The report must include
  602  specific recommendations for legislative action during the 2012
  603  Regular Session of the Legislature. The department shall consult
  604  with the Legislature’s Office of Economic and Demographic
  605  Research in formulating the recommendations, which must address,
  606  but need not be limited to:
  607         (1) Whether and what kinds of local pension plan data
  608  should be included in the financial audit reports required under
  609  s. 218.39, Florida Statutes.
  610         (2) Whether the reporting requirements of ss. 175.261 and
  611  185.221, Florida Statutes, should be supplemented with other
  612  types of financial data in order to give a more complete and
  613  transparent picture of a local government’s financial solvency.
  614         (3) Proposals for a uniform format for providing pension
  615  data, including standard terminology and data and the specific
  616  types of data which should be provided, including funding
  617  ratios, and whether contributions are sufficient to fund
  618  actuarial liabilities.
  619         (4) Whether to require local governments to provide pension
  620  financial data on local public websites.
  621         (5) Other related issues, including insurance benefits,
  622  health care benefits, and postemployment plan benefits.
  623         (6) Proposals related to the composition of local pension
  624  plan boards.
  625         Section 12. The Legislature finds that a proper and
  626  legitimate state purpose is served when employees and retirees
  627  of the state and of its political subdivisions, and the
  628  dependents, survivors, and beneficiaries of those employees and
  629  retirees, are extended the basic protections afforded by
  630  governmental retirement systems that provide fair and adequate
  631  benefits and that are managed, administered, and funded in an
  632  actuarially sound manner as required by s. 14, Article X of the
  633  State Constitution and part VII of chapter 112, Florida
  634  Statutes. Therefore, the Legislature determines and declares
  635  that this act fulfills an important state interest.
  636         Section 13. This act shall take effect July 1, 2011.
  637  
  638  
  639  ================= T I T L E  A M E N D M E N T ================
  640         And the title is amended as follows:
  641         Delete everything before the enacting clause
  642  and insert:
  643                        A bill to be entitled                      
  644         An act relating to public retirement plans; amending
  645         s. 112.63, F.S.; requiring plans to regularly disclose
  646         the plan’s accrued benefits; amending s. 112.66, F.S.;
  647         providing for the calculation of local government
  648         retirement benefits after a certain date; providing a
  649         prohibition on the use of certain compensation;
  650         prohibiting the use of surpluses for expenses outside
  651         the plan; prohibiting a reduction in certain
  652         contributions to a plan; amending s. 112.665, F.S.;
  653         requiring the Department of Management Services to
  654         provide a fact sheet on each local plan; amending s.
  655         121.051, F.S.; providing that a local government
  656         employer is eligible for participation in the Florida
  657         Retirement System if it has no unfunded actuarial
  658         liabilities; amending s. 175.032, F.S.; revising the
  659         definition of the term “compensation” or “salary” for
  660         purposes of firefighters’ pensions; amending s.
  661         175.351, F.S.; revising provisions relating to
  662         benefits paid from the premium tax by a municipality
  663         or special fire control district that has its own
  664         pension plan; providing for funding a plan’s actuarial
  665         accrued liability; conforming a cross-reference;
  666         amending s. 185.02, F.S.; revising the definition of
  667         the terms “compensation” and “salary” for purposes of
  668         police officers’ pensions; amending s. 185.35, F.S.;
  669         revising provisions relating to benefits paid by a
  670         municipality that has its own pension plan; providing
  671         for funding a plan’s actuarial accrued liability;
  672         directing the Department of Financial Services to rate
  673         the financial strength of local government defined
  674         benefit plans; specifying the factors for assigning
  675         the ratings; requiring local pension boards, local
  676         governments, the Division of Retirement, and all
  677         relevant entities to cooperate in providing data for
  678         the ratings; requiring the ratings to be posted on the
  679         department’s website; creating the Task Force on
  680         Public Employee Disability Presumptions; providing for
  681         appointment and membership; specifying the issues for
  682         the task force to address; providing for a report to
  683         be submitted to the Governor, Chief Financial Officer,
  684         and Legislature by a certain date; providing for
  685         future expiration; directing the Department of
  686         Financial Services to submit a report on the financial
  687         health of local government pension plans to the
  688         Governor and Legislature by a certain date; specifying
  689         the issues the report must address; providing a
  690         declaration of important state interest; providing an
  691         effective date.