Florida Senate - 2011                             CS for SB 1128
       
       
       
       By the Committee on Governmental Oversight and Accountability;
       and Senator Ring
       
       
       
       585-02641A-11                                         20111128c1
    1                        A bill to be entitled                      
    2         An act relating to public retirement plans; amending
    3         s. 112.66, F.S.; providing for the calculation of
    4         local government retirement benefits after a certain
    5         date; providing a prohibition on the use of plan
    6         revenues; prohibiting a reduction in certain
    7         contributions to a plan; amending s. 121.051, F.S.;
    8         providing that a plan is eligible for participation in
    9         the Florida Retirement System if it has no unfunded
   10         actuarial liabilities; amending s. 175.032, F.S.;
   11         revising the definition of the term “compensation” or
   12         “salary” for purposes of firefighters’ pensions;
   13         amending s. 175.351, F.S.; revising provisions
   14         relating to benefits paid from the premium tax by a
   15         municipality or special fire control district that has
   16         its own pension plan; providing for funding a plan’s
   17         actuarial accrued liability; conforming a cross
   18         reference; amending s. 185.02, F.S.; revising the
   19         definition of the terms “compensation” and “salary”
   20         for purposes of police officers’ pensions; amending s.
   21         185.35, F.S.; revising provisions relating to benefits
   22         paid by a municipality that has its own pension plan;
   23         providing for funding a plan’s actuarial accrued
   24         liability; authorizing a municipality to advance
   25         payment for purchasing an annuity contract for a
   26         closed plan; directing the Department of Financial
   27         Services to rate the financial strength of local
   28         government defined benefit plans; specifying the
   29         factors for assigning the ratings; requiring local
   30         pension boards, local governments, the Division of
   31         Retirement, and all relevant entities to cooperate in
   32         providing data for the ratings; requiring the ratings
   33         to be posted on the department’s website; creating the
   34         Task Force on Public Employee Disability Presumptions;
   35         providing for appointment and membership; specifying
   36         the issues for the task force to address; providing
   37         for a report to be submitted to the Governor, Chief
   38         Financial Officer, and Legislature by a certain date;
   39         providing for future expiration; directing the
   40         Department of Financial Services to submit a report on
   41         the financial health of local government pension plans
   42         to the Governor and Legislature by a certain date;
   43         specifying the issues the report must address;
   44         providing a declaration of important state interest;
   45         providing an effective date.
   46  
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. Subsections (11) through (13) are added to
   50  section 112.66, Florida Statutes, to read:
   51         112.66 General provisions.—The following general provisions
   52  relating to the operation and administration of any retirement
   53  system or plan covered by this part shall be applicable:
   54         (11) Effective July 1, 2011, for purposes of calculating
   55  retirement benefits, a pension system or plan sponsored by a
   56  local government may not include any overtime in excess of 300
   57  hours per year, or any payments for accrued unused sick leave or
   58  annual leave. For those members whose terms and conditions of
   59  employment are collectively bargained, this subsection is
   60  effective for the first agreement negotiated on or after July 1,
   61  2011. This subsection does not apply to state-administered
   62  retirement systems or plans.
   63         (12) An actuarial or cash surplus in any system or plan may
   64  not be used for any expenses outside the plan.
   65         (13)A plan or system may not reduce contributions required
   66  to fund normal cost.
   67         Section 2. Paragraph (g) is added to subsection (2) of
   68  section 121.051, Florida Statutes, to read:
   69         121.051 Participation in the system.—
   70         (2) OPTIONAL PARTICIPATION.—
   71         (g) A local government retirement system or plan, including
   72  a firefighters’ pension plan or a municipal police officers’
   73  retirement plan established in accordance with chapter 175 or
   74  chapter 185, is eligible for membership under this chapter if
   75  the plan has no unfunded actuarial liabilities.
   76         Section 3. Subsection (3) of section 175.032, Florida
   77  Statutes, is amended to read:
   78         175.032 Definitions.—For any municipality, special fire
   79  control district, chapter plan, local law municipality, local
   80  law special fire control district, or local law plan under this
   81  chapter, the following words and phrases have the following
   82  meanings:
   83         (3) “Compensation” or “salary” means, for noncollectively
   84  bargained service earned before July 1, 2011, or for service
   85  earned under collective bargaining agreements in place before
   86  July 1, 2011, the fixed monthly remuneration paid a firefighter.
   87  If; where, as in the case of a volunteer firefighter,
   88  remuneration is based on actual services rendered, as in the
   89  case of a volunteer firefighter, the term means the total cash
   90  remuneration received yearly for such services, prorated on a
   91  monthly basis. For noncollectively bargained service earned on
   92  or after July 1, 2011, or for service earned under collective
   93  bargaining agreements entered into on or after July 1, 2011, the
   94  term has the same meaning except that overtime compensation in
   95  excess of 300 hours per year, or payments for accrued unused
   96  sick or annual leave, may not be included for purposes of
   97  calculating retirement benefits.
   98         (a) A retirement trust fund or plan may use a definition of
   99  salary other than the definition in this subsection but only if
  100  the monthly retirement income payable to each firefighter
  101  covered by the retirement trust fund or plan, as determined
  102  under s. 175.162(2)(a) and using such other definition, equals
  103  or exceeds the monthly retirement income that would be payable
  104  to each firefighter if his or her monthly retirement income were
  105  determined under s. 175.162(2)(a) and using the definition in
  106  this subsection.
  107         (a)(b) Any retirement trust fund or plan that which now or
  108  hereafter meets the requirements of this chapter does shall not,
  109  solely by virtue of this subsection, reduce or diminish the
  110  monthly retirement income otherwise payable to each firefighter
  111  covered by the retirement trust fund or plan.
  112         (b)(c) The member’s compensation or salary contributed as
  113  employee-elective salary reductions or deferrals to any salary
  114  reduction, deferred compensation, or tax-sheltered annuity
  115  program authorized under the Internal Revenue Code shall be
  116  deemed to be the compensation or salary the member would receive
  117  if he or she were not participating in such program and shall be
  118  treated as compensation for retirement purposes under this
  119  chapter.
  120         (c)(d) For any person who first becomes a member in any
  121  plan year beginning on or after January 1, 1996, compensation
  122  for that any plan year may shall not include any amounts in
  123  excess of the Internal Revenue Code s. 401(a)(17) limitation,
  124  (as amended by the Omnibus Budget Reconciliation Act of 1993),
  125  which limitation of $150,000 shall be adjusted as required by
  126  federal law for qualified government plans and shall be further
  127  adjusted for changes in the cost of living in the manner
  128  provided by Internal Revenue Code s. 401(a)(17)(B). For any
  129  person who first became a member before prior to the first plan
  130  year beginning on or after January 1, 1996, the limitation on
  131  compensation may shall be not be less than the maximum
  132  compensation amount that was allowed to be taken into account
  133  under the plan as in effect on July 1, 1993, which limitation
  134  shall be adjusted for changes in the cost of living since 1989
  135  in the manner provided by Internal Revenue Code s.
  136  401(a)(17)(1991).
  137         Section 4. Section 175.351, Florida Statutes, is amended to
  138  read:
  139         175.351 Municipalities and special fire control districts
  140  having their own pension plans for firefighters.—For any
  141  municipality, special fire control district, local law
  142  municipality, local law special fire control district, or local
  143  law plan under this chapter, in order for municipalities and
  144  special fire control districts with their own pension plans for
  145  firefighters, or for firefighters and police officers if, where
  146  included, to participate in the distribution of the tax fund
  147  established pursuant to s. 175.101, local law plans must meet
  148  the minimum benefits and minimum standards set forth in this
  149  chapter.
  150         (1) PREMIUM TAX INCOME.—If a municipality or special fire
  151  control district has a pension plan for firefighters, or a
  152  pension plan for firefighters and police officers if, where
  153  included, which in the opinion of the division meets the minimum
  154  benefits and minimum standards set forth in this chapter, the
  155  board of trustees of the pension plan, as approved by a majority
  156  of firefighters, or firefighters and police officers, of the
  157  municipality or fire control district, may:
  158         (a) Place the income from the premium tax in s. 175.101 in
  159  such pension plan for the sole and exclusive use of its
  160  firefighters, or for firefighters and police officers if, where
  161  included, where it shall become an integral part of that pension
  162  plan and shall be used to pay extra benefits to the
  163  firefighters, or firefighters and police officers, included in
  164  that pension plan; or
  165         (b) Place the income from the premium tax in s. 175.101 in
  166  a separate supplemental plan to pay extra benefits to
  167  firefighters, or to firefighters and police officers if where
  168  included, participating in such separate supplemental plan.
  169         (2) The premium tax provided by this chapter shall in all
  170  cases be used in its entirety to provide retirement extra
  171  benefits to firefighters, or to firefighters and police officers
  172  if, where included. However, local law plans in effect on
  173  October 1, 1998, must shall be required to comply with the
  174  minimum benefit provisions of this chapter only to the extent
  175  that additional premium tax revenues become available to
  176  incrementally fund the cost of such compliance as provided in s.
  177  175.162(2)(a). If When a plan is in compliance with such minimum
  178  benefit provisions, as subsequent additional premium tax
  179  revenues become available, they must shall be used to provide
  180  extra benefits, except as provided in subsection (1). For the
  181  purpose of this chapter, “additional premium tax revenues” means
  182  revenues received by a municipality or special fire control
  183  district pursuant to s. 175.121 which exceed that amount
  184  received for calendar year 1997, and the term “extra benefits”
  185  means benefits in addition to or greater than those provided to
  186  general employees of the municipality and in addition to those
  187  in existence for firefighters on March 12, 1999. Local law plans
  188  created by special act before May 23, 1939, shall be deemed to
  189  comply with this chapter. Notwithstanding any other provisions
  190  of this section, if, as of March 1, 2011:
  191         (a) A plan’s actuarial accrued liability is funded below 80
  192  percent, 50 percent of the premium tax revenues in excess of the
  193  adjusted base amount and accumulated excess premium tax revenues
  194  held in reserve shall be used to pay the plan’s actuarial
  195  accrued liability until the liability exceeds 80 percent.
  196         (b) For a supplemental plan that exists in conjunction with
  197  a defined benefit plan under this chapter, the defined benefit
  198  plan’s actuarial accrued liability is funded below 70 percent,
  199  the premium tax revenues in excess of the adjusted base amount
  200  of the defined benefit plan shall be used to pay the plan’s
  201  actuarial accrued liability until such liability is at least 80
  202  percent funded.
  203         (3)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  204  retirement plan or amendment to a retirement plan may not shall
  205  be proposed for adoption unless the proposed plan or amendment
  206  contains an actuarial estimate of the costs involved. No Such
  207  proposed plan or proposed plan change may not shall be adopted
  208  without the approval of the municipality, special fire control
  209  district, or, where permitted, the Legislature. Copies of the
  210  proposed plan or proposed plan change and the actuarial impact
  211  statement of the proposed plan or proposed plan change shall be
  212  furnished to the division before prior to the last public
  213  hearing thereon. Such statement must shall also indicate whether
  214  the proposed plan or proposed plan change is in compliance with
  215  s. 14, Art. X of the State Constitution and those provisions of
  216  part VII of chapter 112 which are not expressly provided in this
  217  chapter. Notwithstanding any other provision, only those local
  218  law plans created by special act of legislation before prior to
  219  May 23, 1939, are shall be deemed to meet the minimum benefits
  220  and minimum standards only in this chapter.
  221         (4)(3) Notwithstanding any other provision, with respect to
  222  any supplemental plan municipality:
  223         (a) Section 175.032(3)(a) shall not apply, and A local law
  224  plan and a supplemental plan may continue to use their
  225  definition of compensation or salary in existence on the
  226  effective date of this act.
  227         (b) Section 175.061(1)(b) does shall not apply, and a local
  228  law plan and a supplemental plan shall continue to be
  229  administered by a board or boards of trustees numbered,
  230  constituted, and selected as the board or boards were numbered,
  231  constituted, and selected on December 1, 2000.
  232         (c) The election set forth in paragraph (1)(b) is shall be
  233  deemed to have been made.
  234         (5)(4) The retirement plan setting forth the benefits and
  235  the trust agreement, if any, covering the duties and
  236  responsibilities of the trustees and the regulations of the
  237  investment of funds must be in writing, and copies thereof must
  238  be made available to the participants and to the general public.
  239         Section 5. Subsection (4) of section 185.02, Florida
  240  Statutes, is amended to read:
  241         185.02 Definitions.—For any municipality, chapter plan,
  242  local law municipality, or local law plan under this chapter,
  243  the following words and phrases as used in this chapter shall
  244  have the following meanings, unless a different meaning is
  245  plainly required by the context:
  246         (4) “Compensation” or “salary” means, for noncollectively
  247  bargained service earned before July 1, 2011, or for service
  248  earned under collective bargaining agreements in place before
  249  July 1, 2011, the total cash remuneration including “overtime”
  250  paid by the primary employer to a police officer for services
  251  rendered, but not including any payments for extra duty or a
  252  special detail work performed on behalf of a second party
  253  employer. However, A local law plan may limit the amount of
  254  overtime payments which can be used for retirement benefit
  255  calculation purposes; however, but in no event shall such
  256  overtime limit may not be less than 300 hours per officer per
  257  calendar year. For noncollectively bargained service earned on
  258  or after July 1, 2011, or for service earned under collective
  259  bargaining agreements entered into on or after July 1, 2011, the
  260  term has the same meaning except that overtime compensation in
  261  excess of 300 hours per year, or payments for accrued unused
  262  sick or annual leave, may not be included for purposes of
  263  calculating retirement benefits.
  264         (a) Any retirement trust fund or plan that which now or
  265  hereafter meets the requirements of this chapter does shall not,
  266  solely by virtue of this subsection, reduce or diminish the
  267  monthly retirement income otherwise payable to each police
  268  officer covered by the retirement trust fund or plan.
  269         (b) The member’s compensation or salary contributed as
  270  employee-elective salary reductions or deferrals to any salary
  271  reduction, deferred compensation, or tax-sheltered annuity
  272  program authorized under the Internal Revenue Code shall be
  273  deemed to be the compensation or salary the member would receive
  274  if he or she were not participating in such program and shall be
  275  treated as compensation for retirement purposes under this
  276  chapter.
  277         (c) For any person who first becomes a member in any plan
  278  year beginning on or after January 1, 1996, compensation for
  279  that any plan year may shall not include any amounts in excess
  280  of the Internal Revenue Code s. 401(a)(17) limitation, (as
  281  amended by the Omnibus Budget Reconciliation Act of 1993), which
  282  limitation of $150,000 shall be adjusted as required by federal
  283  law for qualified government plans and shall be further adjusted
  284  for changes in the cost of living in the manner provided by
  285  Internal Revenue Code s. 401(a)(17)(B). For any person who first
  286  became a member before prior to the first plan year beginning on
  287  or after January 1, 1996, the limitation on compensation may
  288  shall be not be less than the maximum compensation amount that
  289  was allowed to be taken into account under the plan as in effect
  290  on July 1, 1993, which limitation shall be adjusted for changes
  291  in the cost of living since 1989 in the manner provided by
  292  Internal Revenue Code s. 401(a)(17)(1991).
  293         Section 6. Section 185.35, Florida Statutes, is amended to
  294  read:
  295         185.35 Municipalities having their own pension plans for
  296  police officers.—For any municipality, chapter plan, local law
  297  municipality, or local law plan under this chapter, in order for
  298  municipalities with their own pension plans for police officers,
  299  or for police officers and firefighters if where included, to
  300  participate in the distribution of the tax fund established
  301  pursuant to s. 185.08, local law plans must meet the minimum
  302  benefits and minimum standards set forth in this chapter:
  303         (1) PREMIUM TAX INCOME.—If a municipality has a pension
  304  plan for police officers, or for police officers and
  305  firefighters if where included, which, in the opinion of the
  306  division, meets the minimum benefits and minimum standards set
  307  forth in this chapter, the board of trustees of the pension
  308  plan, as approved by a majority of police officers, or police
  309  officers and firefighters, of the municipality, may:
  310         (a) Place the income from the premium tax in s. 185.08 in
  311  such pension plan for the sole and exclusive use of its police
  312  officers, or its police officers and firefighters if where
  313  included, where it shall become an integral part of that pension
  314  plan and shall be used to pay extra benefits to the police
  315  officers, or police officers and firefighters, included in that
  316  pension plan; or
  317         (b) May place the income from the premium tax in s. 185.08
  318  in a separate supplemental plan to pay extra benefits to the
  319  police officers, or police officers and firefighters if where
  320  included, participating in such separate supplemental plan.
  321         (2) Except as provided in subsection (3), the premium tax
  322  provided by this chapter shall in all cases be used in its
  323  entirety to provide retirement extra benefits to police
  324  officers, or to police officers and firefighters if, where
  325  included. However, local law plans in effect on October 1, 1998,
  326  must shall be required to comply with the minimum benefit
  327  provisions of this chapter only to the extent that additional
  328  premium tax revenues become available to incrementally fund the
  329  cost of such compliance as provided in s. 185.16(2). If When a
  330  plan is in compliance with such minimum benefit provisions, as
  331  subsequent additional tax revenues become available, they shall
  332  be used to provide extra benefits, except as provided under
  333  subsection (1). For the purpose of this chapter, “additional
  334  premium tax revenues” means revenues received by a municipality
  335  pursuant to s. 185.10 which exceed the amount received for
  336  calendar year 1997, and the term “extra benefits” means benefits
  337  in addition to or greater than those provided to general
  338  employees of the municipality and in addition to those in
  339  existence for police officers on March 12, 1999. Local law plans
  340  created by special act before May 23, 1939, shall be deemed to
  341  comply with this chapter. Notwithstanding any other provisions
  342  of this section, if, as of March 1, 2011:
  343         (a) A plan’s actuarial accrued liability is funded below 80
  344  percent, 50 percent of the premium tax revenues in excess of the
  345  adjusted base amount and accumulated excess premium tax revenues
  346  held in reserve shall be used to pay the plan’s actuarial
  347  accrued liability until the liability exceeds 80 percent.
  348         (b) For a supplemental plan that exists in conjunction with
  349  a defined benefit plan under this chapter, the defined benefit
  350  plan’s actuarial accrued liability is funded below 70 percent,
  351  the premium tax revenues in excess of the adjusted base amount
  352  of the defined benefit plan shall be used to pay the plan’s
  353  actuarial accrued liability until such liability is at least 80
  354  percent funded.
  355         (3) In a closed plan where police services have been
  356  transferred or merged with another governmental agency and the
  357  plan has fewer than five active members, the municipality may
  358  advance payment for purchasing an annuity contract applicable to
  359  the accrued liabilities of the plan. In such case, the board of
  360  trustees, as approved by the members, may authorize repayment
  361  from the future receipt of premium taxes; however, the plan may
  362  not be deemed fully funded until the full cost of the advanced
  363  payment has been returned to the municipality by the plan. This
  364  subsection does not preclude the continued receipt of premium
  365  tax to provide extra benefits for active or retired police
  366  officers as provided under subsection (2).
  367         (4)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  368  retirement plan or amendment to a retirement plan may not shall
  369  be proposed for adoption unless the proposed plan or amendment
  370  contains an actuarial estimate of the costs involved. No Such
  371  proposed plan or proposed plan change may not shall be adopted
  372  without the approval of the municipality or, where permitted,
  373  the Legislature. Copies of the proposed plan or proposed plan
  374  change and the actuarial impact statement of the proposed plan
  375  or proposed plan change shall be furnished to the division
  376  before prior to the last public hearing thereon. Such statement
  377  must shall also indicate whether the proposed plan or proposed
  378  plan change is in compliance with s. 14, Art. X of the State
  379  Constitution and those provisions of part VII of chapter 112
  380  which are not expressly provided in this chapter.
  381  Notwithstanding any other provision, only those local law plans
  382  created by special act of legislation before prior to May 23,
  383  1939, are shall be deemed to meet the minimum benefits and
  384  minimum standards only in this chapter.
  385         (5)(3) Notwithstanding any other provision, with respect to
  386  any supplemental plan municipality:
  387         (a) Section 185.02(4)(a) does shall not apply, and a local
  388  law plan and a supplemental plan may continue to use their
  389  definition of compensation or salary in existence on March 12,
  390  1999 the effective date of this act.
  391         (b) Section 185.05(1)(b) does shall not apply, and a local
  392  law plan and a supplemental plan shall continue to be
  393  administered by a board or boards of trustees numbered,
  394  constituted, and selected as the board or boards were numbered,
  395  constituted, and selected on December 1, 2000.
  396         (c) The election set forth in paragraph (1)(b) is shall be
  397  deemed to have been made.
  398         (6)(4) The retirement plan setting forth the benefits and
  399  the trust agreement, if any, covering the duties and
  400  responsibilities of the trustees and the regulations of the
  401  investment of funds must be in writing and copies made available
  402  to the participants and to the general public.
  403         Section 7. Financial rating of local pension plans.—The
  404  Department of Financial Services shall develop standardized
  405  ratings for classifying the financial strength of all local
  406  government defined benefit pension plans.
  407         (1) In assigning a rating to a plan, the department shall
  408  consider, without limitation:
  409         (a) The plan’s current and future unfunded liabilities.
  410         (b) The plan’s net asset value, managed returns, and funded
  411  ratio.
  412         (c) Metrics related to the sustainability of the plan,
  413  including, but not limited to, the percentage that the annual
  414  contribution is of the participating employee payroll.
  415         (d) Municipal bond ratings for the local government, if
  416  applicable.
  417         (e) Whether the local government has reduced contribution
  418  rates to the plan when the plan has an actuarial surplus.
  419         (f) Whether the local government uses any actuarial surplus
  420  in the plan for obligations outside the plan.
  421         (2) The department may obtain all necessary data to
  422  formulate the ratings from all relevant entities, including
  423  local pension boards, local governments, and the Division of
  424  Retirement, all of which shall cooperate with the department in
  425  supplying all necessary information.
  426         (3) The ratings shall be posted on the department’s website
  427  in a standardized format.
  428         Section 8. Task Force on Public Employee Disability
  429  Presumptions.—
  430         (1) The Task Force on Public Employee Disability
  431  Presumptions is created for the purpose of developing findings
  432  and issuing recommendations on the disability presumptions in
  433  ss. 112.18, 175.231, and 185.34, Florida Statutes.
  434         (2) All members of the task force shall be appointed on or
  435  before July 15, 2011, and the task force shall hold its first
  436  meeting on or before August 15, 2011. The task force shall be
  437  composed of nine members as follows:
  438         (a) Three members appointed by the President of the Senate,
  439  one of whom must be an attorney in private practice who has
  440  experience in the relevant laws; one of whom must be a
  441  representative of organized labor and who is a member of a
  442  pension plan under chapter 175, Florida Statutes; and one of
  443  whom must be from the Florida Association of Counties.
  444         (b) Three members appointed by the Speaker of the House of
  445  Representatives, one of whom must be an attorney in private
  446  practice who has experience in the relevant laws; one of whom
  447  must be a representative of organized labor and who is a member
  448  of a pension plan under chapter 185, Florida Statutes; and one
  449  of whom must be from the Florida League of Cities.
  450         (c) A member employed by the Office of the Auditor General
  451  who has experience in local government auditing and finances.
  452         (d) A member employed by the Division of Retirement of the
  453  Department of Management Services who has experience in local
  454  government pension plans, appointed by the Governor.
  455         (e) A member employed by the Department of Financial
  456  Services who has relevant expertise in state risk management,
  457  appointed by the Chief Financial Officer.
  458         (3) The task force shall address issues, including, but not
  459  limited to:
  460         (a) Data related to the operation of the statutory
  461  disability presumptions.
  462         (b) The manner in which other states handle disability
  463  presumptions.
  464         (c) Proposals for changes to the existing disability
  465  presumptions.
  466         (4) The Department of Financial Services shall provide
  467  administrative support to the task force.
  468         (5) Members of the task force shall serve without
  469  compensation while in the performance of their duties, but are
  470  entitled to reimbursement for per diem and travel expenses in
  471  accordance with s. 112.061, Florida Statutes.
  472         (6) The task force may obtain data, information, and
  473  assistance from any officer or state agency and any political
  474  subdivision thereof. All such officers, agencies, and political
  475  subdivisions shall provide the task force with all relevant
  476  information and assistance on any matter within their knowledge
  477  or control.
  478         (7) The task force shall submit a report, including
  479  findings and recommendations, to the Governor, the Chief
  480  Financial Officer, the President of the Senate, and the Speaker
  481  of the House of Representatives by January 1, 2012. The report
  482  must include specific recommendations for legislative action
  483  during the 2012 Regular Session of the Legislature.
  484         (8) The task force is dissolved upon submission of its
  485  report.
  486         Section 9. By December 1, 2011, the Department of Financial
  487  Services shall submit a report and recommendations to the
  488  Governor, the President of the Senate, and the Speaker of the
  489  House of Representatives on actions to be taken to increase the
  490  visibility and transparency of local government pension plans,
  491  including, but not limited to, those created pursuant to chapter
  492  175 or chapter 185, Florida Statutes, with the goal of
  493  increasing the ability of a taxpayer or policymaker to assess
  494  the financial health of the local plans. The report must include
  495  specific recommendations for legislative action during the 2012
  496  Regular Session of the Legislature. The department shall consult
  497  with the Legislature’s Office of Economic and Demographic
  498  Research in formulating the recommendations, which must address,
  499  but need not be limited to:
  500         (1) Whether and what kinds of local pension plan data
  501  should be included in the financial audit reports required under
  502  s. 218.39, Florida Statutes.
  503         (2) Whether the reporting requirements of ss. 175.261 and
  504  185.221, Florida Statutes, should be supplemented with other
  505  types of financial data in order to give a more complete and
  506  transparent picture of a local government’s financial solvency.
  507         (3) Proposals for a uniform format for providing pension
  508  data, including standard terminology and data and the specific
  509  types of data which should be provided, including funding
  510  ratios, and whether contributions are sufficient to fund
  511  actuarial liabilities.
  512         (4) Whether to require local governments to provide pension
  513  financial data on local public websites.
  514         (5) Other related issues, including insurance benefits,
  515  health care benefits, and postemployment plan benefits.
  516         (6) Proposals related to the composition of local pension
  517  plan boards.
  518         Section 10. The Legislature finds that a proper and
  519  legitimate state purpose is served when employees and retirees
  520  of the state and of its political subdivisions, and the
  521  dependents, survivors, and beneficiaries of those employees and
  522  retirees, are extended the basic protections afforded by
  523  governmental retirement systems that provide fair and adequate
  524  benefits and that are managed, administered, and funded in an
  525  actuarially sound manner as required by s. 14, Article X of the
  526  State Constitution and part VII of chapter 112, Florida
  527  Statutes. Therefore, the Legislature determines and declares
  528  that this act fulfills an important state interest.
  529         Section 11. This act shall take effect July 1, 2011.