HB 1391

1
A bill to be entitled
2An act relating to Firefighters' Relief and Pension Fund
3of the City of Pensacola, Escambia County; amending
4chapter 21483, Laws of Florida, 1941, as amended;
5providing for compliance with applicable internal revenue
6code requirements; adding optional forms of benefits;
7providing for retirement after 10 years of service;
8providing for death benefits for survivors; providing for
9protection of benefits from legal process; providing for
10rollover distributions; providing for additional benefits
11required by law; providing definitions; providing for
12maximum pension; providing for plan termination; providing
13for forfeitures; providing an effective date.
14
15Be It Enacted by the Legislature of the State of Florida:
16
17     Section 1.  Subsections (h) through (o) are added to
18section 5 of chapter 21483, Laws of Florida, 1941, as amended by
19chapter 2000-468, Laws of Florida, to read:
20     Section 5.  Basis for compensation.-The pension of all
21persons entitled thereto, as hereinafter specified, shall be
22computed upon the basis of their compensation and their years of
23service in accordance with the following tables:
24     (h)  Any firefighter who has attained the age of 50 years
25and has served as a firefighter for the City of Pensacola for a
26period of 10 continuous years, upon application to the board of
27trustees of the Firefighters' Relief and Pension Fund, shall be
28retired on a pension as provided in Part 1 (Charter and Related
29Special Acts), Subpart B (Related Special Acts), Article VI,
30Section 5(a) of the Code of the City of Pensacola; provided,
31that the amount of such pension shall be reduced by 3 percent
32for each year by which the firefighter's age at retirement
33precedes the age of 55. The amount of such monthly benefit shall
34be reduced to take into account the firefighter's younger age
35and the earlier commencement of such benefits.
36     (i)  If after 10 years of service, a firefighter suffers a
37total and permanent disability that is not suffered in the line
38of duty and the firefighter retires, the firefighter's monthly
39benefit shall be the accrued normal retirement benefit, but
40shall not be less than 25 percent of the firefighter's average
41monthly salary at the time of disability.
42     (j)  The benefit payable to a firefighter who retires from
43the service of the city due to total and permanent disability as
44a direct result of a disability that occurred in the line of
45duty shall be the accrued normal retirement benefit, payable for
4610 years certain and life, but shall not be less than 42 percent
47of the firefighter's average monthly salary at the time of
48disability.
49     (k)  The amount of monthly retirement income payable to a
50firefighter who retires on or after the firefighter's normal
51retirement date shall be, at a minimum, an amount equal to the
52number of the firefighter's years of credited service multiplied
53by 2 percent of the firefighter's average final compensation as
54a firefighter.
55     (l)  In the event that a firefighter dies after retirement
56but before the firefighter has received retirement benefits for
57a period of 10 years, the same monthly benefit will be paid to
58the beneficiary or beneficiaries designated by the firefighter
59for the balance of such 10-year period, when the firefighter is
60not survived by a widow or widower entitled to receive spousal
61benefits. Such beneficiary designation must be in writing,
62received, and approved by the trustees before the firefighter's
63death.
64     (m)  If a firefighter continues in the service of the city
65beyond the firefighter's normal retirement date and dies before
66the firefighter's date of actual retirement, without either:
67     (1)  Leaving a widow or widower entitled to received
68spousal benefits; or
69     (2)  Affirmatively electing to receive an alternate form of
70retirement income permissible under the Plan,
71
72monthly retirement income payments will be made for a period of
7310 years to the beneficiary or beneficiaries designated by the
74firefighter as if the firefighter had retired on the date on
75which the firefighter's death occurred. Such beneficiary
76designation must be in writing, received, and approved by the
77trustees before the firefighter's death.
78     (n)(1)  In lieu of the amount and form of retirement income
79payable in the event of normal or early retirement as specified
80in this section, a firefighter, upon written request to the
81board of trustees, before receiving any retirement income or
82benefit from the Plan, and subject to the approval of the board
83of trustees, may elect to receive a retirement income or benefit
84of equivalent actuarial value as calculated under section
85175.162, Florida Statutes, payable in accordance with one of the
86following options:
87     a.  A retirement income of a larger monthly amount, payable
88to the firefighter for his or her lifetime only.
89     b.  A retirement income of a modified monthly amount,
90payable to the firefighter during the joint lifetime of the
91firefighter and a joint pensioner designated by the firefighter,
92and after the death of either of them, 100 percent, 75 percent,  
9366 and 2/3 percent, or 50 percent of such monthly amounts
94payable to the survivor for the lifetime of the survivor.
95     c.  Such other amount and form of retirement payment or
96benefits as, in the opinion of the board of trustees, will best
97meet the circumstances of the retirement of the firefighter.
98     1.  The firefighter upon electing any option under this
99section will designate the joint pensioner or beneficiary or
100beneficiaries to receive the benefit, if any, payable under the
101Plan in the event of his or her death, and will have the power
102to change such designation from time to time, but any such
103change shall be deemed a new election and will be subject to
104approval by the board of trustees. Such designation will name a
105joint pensioner or one or more primary beneficiaries where
106applicable. If a firefighter has elected an option with a joint
107pensioner or beneficiary and his or her retirement income
108benefits have commenced, the firefighter may thereafter change
109the designated joint pensioner or beneficiary, but only if the
110board of trustees consents to such change and if the joint
111pensioner last previously designated by the firefighter is alive
112when the firefighter files with the board of trustees a request
113for such change.
114     2.  The consent of a firefighter's joint pensioner or
115beneficiary to any such change shall not be required.
116     3.  The board of trustees may request such evidence of the
117good health of the joint pensioner that is being removed as it
118may require and the amount of the retirement income payable to
119the firefighter upon designation of a new joint pensioner shall
120be actuarially redetermined, taking into account the age and sex
121of the former joint pensioner, the new joint pensioner, and the
122firefighter. Each such designation will be made in writing on a
123form prepared by the board of trustees and on completion will be
124filed with the board of trustees. In the event that no
125designated beneficiary survives the firefighter, such benefits
126as are payable in the event of the death of the firefighter
127subsequent to his or her retirement shall be paid as provided in
128subsection (o).
129     (2)  Retirement income payments made under the option
130elected in accordance with the provisions of this section shall
131be subject to the following limitations:
132     a.  If a firefighter dies before his or her normal
133retirement date or early retirement date, whichever first
134occurs, no retirement benefit will be payable under the option
135to any person, but the benefits, if any, will be determined
136under sections 13 or 14 of the Plan or section 175.201, Florida
137Statutes, as the case may be.
138     b.  If the designated beneficiary or beneficiaries or joint
139pensioner dies before the firefighter's retirement under the
140Plan, the option elected will be canceled automatically and a
141retirement income of the normal form and amount will be payable
142to the firefighter upon retirement as if the election had not
143been made, unless a new election is made in accordance with the
144provisions of this section or a new beneficiary is designated by
145the firefighter before retirement and within 90 days after the
146death of the beneficiary.
147     c.  If both the retired firefighter and the beneficiary or
148beneficiaries designated by him or her die before the full
149payment has been effected under any option providing for
150payments for a period certain and life thereafter, made pursuant
151to the provisions of subparagraph (n)(1)c., the board of
152trustees may, in its discretion, direct that the actuarial
153equivalent value of the remaining payments be paid in a lump sum
154and in accordance with subsection (o).
155     d.  If a firefighter continues beyond his or her normal
156retirement date and dies before actual retirement and while an
157option made pursuant to the provisions of this section is in
158effect, monthly retirement income payments will be made, or a
159retirement benefit will be paid, under the option to a
160beneficiary or beneficiaries designated by the firefighter in
161the amount or amounts computed as if the firefighter had retired
162under the option on the date on which the death occurred.
163     (3)  No firefighter may make any change in his or her
164retirement option after the date of cashing or depositing the
165first retirement check.
166     (o)(1)  Each firefighter may, on a form provided for that
167purpose, signed and filed with the board of trustees, designate
168a choice of one or more persons, named sequentially or jointly,
169as his or her beneficiary or beneficiaries to receive the
170benefit, if any, which may be payable in the event of his or her
171death; and each designation may be revoked by such firefighter
172by signing and filing with the board of trustees a new
173designation-of-beneficiary form. A firefighter may change his or
174her beneficiary at any time.
175     (2)  If no beneficiary is named in the manner provided by
176paragraph (1), or if no beneficiary designated by the
177firefighter survives him or her, the death benefit, if any,
178which may be payable under the Plan with respect to such
179deceased firefighter shall be paid by the board of trustees to
180the estate of such deceased firefighter, provided that the board
181of trustees, in its discretion, may direct that the actuarial
182equivalent value of the remaining monthly income payments be
183paid in a lump sum. Any payment made to any person pursuant to
184this section shall operate as a complete discharge of all
185obligations under the Plan with regard to the deceased
186firefighter and any other persons with rights under the Plan and
187shall not be subject to review by anyone but shall be final,
188binding, and conclusive on all persons ever interested
189hereunder.
190     (3)  If a firefighter has elected an option with a joint
191pensioner and retirement income benefits have commenced, the
192firefighter may transfer, change the designated beneficiary at
193any time, but may only change the joint pensioner twice.
194     Section 2.  Section 8 of chapter 21483, Laws of Florida,
1951941, as amended by chapter 2000-468, Laws of Florida, is
196amended to read:
197     Section 8.  Automatic retirement.-
198     (a)  Automatic retirement.-Any firefighter subject to the
199provisions of this act attaining the age of 70 seventy (70)
200years shall be automatically retired and shall cease to draw his
201or her compensation as such employee, but shall become
202immediately entitled to the pension or benefits provided hereby.
203In the event of doubt as to the attainment of such age, the
204Civil Service Board shall make inquiry and determine such fact
205after due notice to interested parties; provided that the
206provisions of this section shall not become operative until
207January 1, 1960, the former law remaining in effect until such
208date.
209     (b)  Required minimum distributions.-Notwithstanding
210anything in the Firefighters' Relief and Pension Fund to the
211contrary, all distributions under the Firefighters' Relief and
212Pension Fund shall comply with section 401(a)(9) of the Code and
213the Regulations thereunder, as prescribed by the Commissioner in
214Revenue Rulings, Notices, and other guidance published in the
215Internal Revenue Bulletin, to the extent that said provisions
216apply to governmental plans under section 414(d) of the Code,
217and shall be made in accordance with the following requirements:
218     (1)  Time and manner of distribution.-
219     a.  Required beginning date.-The firefighter's entire
220interest will be distributed, or begin to be distributed, to the
221firefighter no later than the firefighter's required beginning
222date.
223     b.  Death of firefighter before distributions begin.-If the
224firefighter dies before distributions begin, the firefighter's
225entire interest will be distributed, or begin to be distributed,
226no later than as follows:
227     1.  If the firefighter's surviving spouse is the
228firefighter's sole designated beneficiary, distributions to the
229surviving spouse will begin by December 31 of the calendar year
230immediately after the calendar year in which the firefighter
231died, or by December 31 of the calendar year in which the
232firefighter would have attained age 70 years and 6 months, if
233later.
234     2.  If the firefighter's surviving spouse is not the
235firefighter's sole designated beneficiary, then distributions to
236the designated beneficiary will begin by December 31 of the
237calendar year immediately after the calendar year in which the
238firefighter died.
239     3.  If there is no designated beneficiary as of September
24030 of the year after the year of the firefighter's death, the
241firefighter's entire interest will be distributed by December 31
242of the calendar year containing the 5th anniversary of the
243firefighter's death.
244     4.  If the firefighter's surviving spouse is the
245firefighter's sole designated beneficiary and the surviving
246spouse dies after the firefighter but before distributions to
247the surviving spouse begin, this subparagraph, other than sub-
248sub-subparagraph 1., will apply as if the surviving spouse were
249the firefighter.
250
251For purposes of this subparagraph and paragraph (4),
252distributions are considered to begin on the firefighter's
253required beginning date or, if sub-subparagraph 4. applies, the
254date distributions are required to begin to the surviving spouse
255under sub-subparagraph 1. If annuity payments irrevocably
256commence to the firefighter before the firefighter's required
257beginning date or to the firefighter's surviving spouse before
258the date distributions are required to begin to the surviving
259spouse under sub-subparagraph 1., the date distributions are
260considered to begin is the date distributions actually commence.
261     (2)  Form of distribution.-Unless the firefighter's
262interest is distributed in the form of an annuity purchased from
263an insurance company or in a single sum on or before the
264required beginning date, as of the first distribution calendar
265year, distributions will be made in accordance with this
266paragraph and paragraphs (4) and (5). If the firefighter's
267interest is distributed in the form of an annuity purchased from
268an insurance company, distributions thereunder will be made in
269accordance with the requirements of section 401(a)(9) of the
270Code.
271     (3)  Determination of amount to be distributed each year.-
272     a.  General annuity requirements.-If the interest is paid
273in the form of annuity distributions under the Firefighters'
274Relief and Pension Fund, payments under the annuity will satisfy
275the following requirements:  
276     1.  The annuity distributions will be paid in periodic
277payments made at intervals not longer than 1 year;
278     2.  The distribution period will be over a life (or lives)
279or over a period certain not longer than the period described in
280paragraph (4) or paragraph (5);
281     3.  Once payments have begun over a period certain, the
282period certain will not be changed even if the period certain is
283shorter than the maximum permitted; and
284     4.  Payments will either be nonincreasing or increase only
285as follows:
286     (A)  By an annual percentage increase that does not exceed
287the annual percentage increase in a cost-of-living index that is
288based on prices of all items and issued by the Bureau of Labor
289Statistics;
290     (B)  To the extent of the reduction in the amount of the
291firefighter's payments to provide for a survivor benefit upon
292death, but only if the beneficiary whose life was being used to
293determine the distribution period described in paragraph (5)
294dies or is no longer the firefighter's beneficiary pursuant to a
295qualified domestic relations order within the meaning of section
296414(p) of the Code;
297     (C)  To provide cash refunds of firefighter contributions
298upon the firefighter's death; or
299     (D)  To pay increased benefits that result from a
300Firefighters' Relief and Pension Fund amendment.
301     b.  Amount required to be distributed by required beginning
302date.-The amount that must be distributed on or before the
303firefighter's required beginning date or, if the firefighter
304dies before distributions begin, the date distributions are
305required to begin under sub-subparagraph (1)b.1. or sub-
306subparagraph (1)(b)4. is the payment that is required for one
307payment interval. The second payment need not be made until the
308end of the next payment interval even if that payment interval
309ends in the next calendar year. Payment intervals are the
310periods for which payments are received, e.g., bi-monthly,
311monthly, semi-annually, or annually. All of the firefighter's
312benefit accruals as of the last day of the first distribution
313calendar year will be included in the calculation of the amount
314of the annuity payments for payment intervals ending on or after
315the firefighter's required beginning date.
316     c.  Additional accruals after first distribution calendar
317year.-Any additional benefits accruing to the firefighter in a
318calendar year after the first distribution calendar year will be
319distributed beginning with the first payment interval ending in
320the calendar year immediately after the calendar year in which
321such amount accrues.
322     (4)  Requirements for annuity distributions that commence
323during the firefighter's lifetime.-
324     a.  Joint life annuities where the beneficiary is not the
325firefighter's spouse.-If the firefighter's interest is being
326distributed in the form of a joint and survivor annuity for the
327joint lives of the firefighter and a nonspouse beneficiary,
328annuity payments to be made on or after the firefighter's
329required beginning date to the designated beneficiary after the
330firefighter's death and must not at any time exceed the
331applicable percentage of the annuity payment for such period
332that would have been payable to the firefighter using the table
333set forth in Q&A-2 of section 1.401(a)(9)-6T of the Regulations.
334If the form of distribution combines a joint and survivor
335annuity for the joint lives of the firefighter and a nonspouse
336beneficiary and a period certain annuity, the requirement in the
337preceding sentence will apply to annuity payments to be made to
338the designated beneficiary after the expiration of the period
339certain.
340     b.  Period certain annuities.-Unless the firefighter's
341spouse is the sole designated beneficiary and the form of
342distribution is a period certain and no life annuity, the period
343certain for an annuity distribution commencing during the
344firefighter's lifetime may not exceed the applicable
345distribution period for the firefighter under the Uniform
346Lifetime Table set forth in section 1.401(a)(9)-9 of the
347Regulations for the calendar year that contains the annuity
348starting date. If the annuity starting date precedes the year in
349which the firefighter reaches age 70, the applicable
350distribution period for the firefighter is the distribution
351period for age 70 under the Uniform Lifetime Table set forth in
352section 1.401(a)(9)-9 of the Regulations plus the excess of 70
353over the age of the firefighter as of the firefighter's birthday
354in the year that contains the annuity starting date. If the
355firefighter's spouse is the firefighter's sole designated
356beneficiary and the form of distribution is a period certain and
357no life annuity, the period certain may not exceed the longer of
358the firefighter's applicable distribution period, as determined
359under this subsection, or the joint life and last survivor
360expectancy of the firefighter and the firefighter's spouse as
361determined under the Joint and Last Survivor Table set forth in
362section 1.401(a)(9)-9 of the Regulations, using the
363firefighter's and spouse's attained ages as of the firefighter's
364and spouse's birthdays in the calendar year that contains the
365annuity starting date.
366     (5)  Requirements for minimum distributions where the
367firefighter dies before date distributions begin.-
368     a.  A firefighter survived by the designated beneficiary.-
369Except as provided in the Firefighters' Relief and Pension Fund,
370if the firefighter dies before the date distribution of his or
371her interest begins and there is a designated beneficiary, the
372firefighter's entire interest will be distributed, beginning no
373later than the time described in sub-subparagraph (1)b.1. or
374sub-subparagraph (1)b.2., over the life of the designated
375beneficiary or over a period certain not exceeding:
376     1.  Unless the annuity starting date is before the first
377distribution calendar year, the life expectancy of the
378designated beneficiary determined using the beneficiary's age as
379of the beneficiary's birthday in the calendar year immediately
380after the calendar year of the firefighter's death; or
381     2.  If the annuity starting date is before the first
382distribution calendar year, the life expectancy of the
383designated beneficiary determined using the beneficiary's age as
384of the beneficiary's birthday in the calendar year that contains
385the annuity starting date.
386     b.  No designated beneficiary.-If the firefighter dies
387before the date distributions begin and there is no designated
388beneficiary as of September 30th of the year after the year of
389the firefighter's death, distribution of the firefighter's
390entire interest will be completed by December 31 of the calendar
391year of the 5th anniversary of the firefighter's death.
392     c.  Death of surviving spouse before distributions to
393surviving spouse begin.-If the firefighter dies before the date
394distribution of his or her interest begins, the firefighter's
395surviving spouse is the firefighter's sole designated
396beneficiary, and the surviving spouse dies before distributions
397to the surviving spouse begin, this subsection will apply as if
398the surviving spouse were the firefighter, except that the time
399by which distributions must begin will be determined without
400regard to sub-subparagraph (1)b.2.
401     (6)  Definitions.-For purposes of this section, the
402following definitions shall apply:
403     a.  "Designated beneficiary" means the individual who is
404designated as the beneficiary in accordance with the
405Firefighters' Relief and Pension Fund and is the designated
406beneficiary under section 401(a)(9) of the Code and section
4071.401(a)(9)-1, Q&A-4, of the Regulations.
408     b.  "Distribution calendar year" means a calendar year for
409which a minimum distribution is required. For distributions
410beginning before the firefighter's death, the first distribution
411calendar year is the calendar year immediately before the
412calendar year that contains the firefighter's required beginning
413date. For distributions beginning after the firefighter's death,
414the first distribution calendar year is the calendar year in
415which distributions are required to begin pursuant to paragraph
416(1).
417     c.  "Life expectancy" means as computed by use of the
418Single Life Table in section 1.401(a)(9)-9 of the Treasury
419regulations.
420     d.  "Required beginning date" means April 1 of the calendar
421year after the later of:
422     1.  The calendar year in which the firefighter attains age
42370 years and 6 months; or
424     2.  The calendar year in which the firefighter retires from
425employment with the City of Pensacola.
426     Section 3.  Section 9 is added to of chapter 21483, Laws of
427Florida, 1941, as amended by chapter 2000-468, Laws of Florida,
428to read:
429     Section 9.  Director of the Fire Department.-The Director
430of the Fire Department who is a firefighter shall have the
431option to participate, or not, in the Firefighters' Relief and
432Pension Fund. The Director of the Fire Department will be deemed
433to have elected to participate in the Firefighters' Relief and
434Pension Fund unless, within 90 days after appointment to the
435Office of Director of the Fire Department, the Director of the
436Fire Department notifies the board of trustees and the City of
437Pensacola in writing otherwise.
438     Section 4.  Section 10 of chapter 21483, Laws of Florida,
4391941, as amended by chapter 2000-468, Laws of Florida, is
440amended to read:
441     Section 10.   Retirement after 10 years' service.-If any
442firefighter of the City of Pensacola shall, after serving as
443such for a period of 10 full years or becoming otherwise
444eligible for retirement, cease to be such firefighter for any
445cause and shall not make withdrawal of all his or her
446contributions to the Firefighters'  Relief and Pension  Fund as
447provided by law, or having withdrawn the same, shall return it
448with 8 percent interest from the date of such withdrawal, he or
449she shall be eligible to receive the benefits equal to the
450amount provided in section  5(a), multiplied by the number of
451years of service; for this purpose only the number of years of
452service can be no more than 25 and divided by 25 years upon
453attaining the age of 52 years or becoming eligible for
454retirement by length of service or otherwise; his or her spouse
455and children shall in the event of his or her death be likewise
456so entitled. For purposes of the Firefighters' Relief and
457Pension Fund, a firefighter that has attained age 52 and
458completed 10 full years of service or completed 25 full years of
459service will have attained normal retirement age. Each
460firefighter's benefit shall become 100 percent vested upon
461attaining normal retirement age.
462     Section 5.  Subsection (d) is added to section 13 of
463chapter 21483, Laws of Florida, 1941, as amended by chapter
4642000-468, Laws of Florida, to read:
465     Section 13.  Death benefits for survivors.-
466     (d)  Notwithstanding any provisions of the Firefighters'
467Relief and Pension Fund to the contrary, a retired firefighter
468may change his or her designation of joint annuitant or
469beneficiary up to two times, as provided in section 175.333,
470Florida Statues, without the approval of the board of trustees
471or the current joint annuitant or beneficiary. The retiree is
472not required to provide proof of the good health of the joint
473annuitant or beneficiary being removed, and the joint annuitant
474or beneficiary being removed need not be living. Upon change of
475a retiree's joint annuitant or beneficiary in accordance with
476this subsection, the amount of the benefit payable to the
477retiree shall be actuarially redetermined to take into account
478the age and sex of the former annuitant or beneficiary, the new
479annuitant or beneficiary and the retiree to ensure that the
480benefit paid is the actuarial equivalent of the present value of
481the retiree's then-current benefit at the time of the change.  
482Any such retiree shall pay the actuarial recalculation expenses.  
483Each request for a change shall be made in writing to the board
484of trustees.
485     Section 6.  Section 15 of chapter 21483, Laws of Florida,
4861941, as amended by chapter 2000-468, Laws of Florida, is
487amended to read:
488     Section 15.  Benefits to widows or, widowers, and
489dependents.-If a widow or widower enjoying a pension under any
490of the provisions of this act shall die, her or his pension
491shall cease; provided, however, if such death shall occur before
492such widow or widower, as the case may be, and the retiree,
493collectively, having received retirement benefits for a period
494of less than 10 years, the same benefit will be paid to the
495beneficiary or beneficiaries designated by the retiree for the
496balance of such 10-year period. Such beneficiary designation
497must be in writing, received, and approved by the trustees prior
498to the retiree's death. The remarriage of a widow or widower
499enjoying a pension under any of the provisions of this act shall
500not effect or alter such pension and if she or he shall remarry
501while enjoying any such pension, then and in the latter event,
502her or his pension shall cease and shall not be paid to such
503widow or widower; provided, however, in the event the deceased
504firefighter  shall be survived by one or more legitimate
505children under the age of eighteen years at the time the widow
506or widower shall remarry, the pension board may, in its
507discretion, grant an amount for the support and maintenance of
508said child or children until said child or children become
509eighteen years of age, not to exceed ten dollars ($10.00) per
510month for each child, in no event to exceed the sum of forty
511dollars ($40,00) per month for any one family.
512     Section 7.  Section 19 of chapter 21483, Laws of Florida,
5131941, as amended by chapter 2000-468, Laws of Florida, is
514amended to read:
515     Section 19.  The right of any firefighter or any
516beneficiary to any benefits under the Firefighters' Relief and
517Pension Fund or any other right accrued or accruing to any
518persons under the provisions of this Plan shall not be subject
519to execution, garnishment, attachment, the operation of any
520bankruptcy or insolvency law, or any other process of law
521whatever, and shall not be subject to assignment, pledge or
522hypothecation unless expressly authorized in Firefighters'
523Relief and Pension Fund. Protection of benefits from legal
524process.-The pensions and other benefits accrued or accruing to
525any person under this pension plan and the accumulated
526contributions and the cash securities in the funds created under
527this plan are exempted from any state, county, or municipal tax
528and shall not be subject to execution or attachment or to any
529legal process whatsoever, and shall be unassignable.
530     Section 8.  Section 28 of chapter 21483, Laws of Florida,
5311941, as amended by chapter 2000-468, Laws of Florida, is
532amended to read:
533     Section 28.  Rollover distributions.-Notwithstanding any
534other provision of the Firefighters' Relief and Pension Fund to
535the contrary, a "distributee" may elect, at the time and in the
536manner prescribed by the board of trustees, to have any portion
537or all of an eligible rollover distribution paid directly to an
538eligible retirement plan specified by the distributee in a
539direct rollover. For purposes of this section, the following
540definitions shall apply:
541     (a)  "Distributee" means a firefighter or former
542firefighter, the firefighter's surviving spouse, and the
543firefighter's spouse or former spouse who is the alternate payee
544under a court order, who is entitled to receive a portion of the
545firefighter's benefit. Effective for plan years beginning on and
546after January 1, 2007, a nonspouse beneficiary may elect to
547directly rollover an eligible distribution to an IRA, a Roth
548IRA, or an individual retirement annuity under section 408(b) of
549the Code that is established on behalf of the designated
550beneficiary as an inherited IRA, pursuant to the provisions of
551section 402(c)(11) of the Code. In order to be able to roll over
552the distribution, the distribution otherwise must satisfy the
553definition of eligible rollover distribution. In addition, the
554determination of any required minimum distribution under section
555401(a)(9) of the Code that is ineligible for rollover shall be
556made in accordance with IRS guidance.
557     (b)  "Eligible retirement plan" means an eligible
558retirement plan is an IRA described in section 408(a) of the
559Code, an individual retirement annuity described in section
560408(b) of the Code, an annuity plan described in section 403(a)
561of the Code, an annuity contract described in section 403(b) of
562the Code, an eligible plan under section 457 of the Code that
563agrees to separately account for such transferred amounts and
564which is maintained by a state, political subdivision of a
565state, an agency or instrumentality of a state or political
566subdivision of a state, or a qualified trust described in
567section 401(a) of the Code that accepts the distributee's
568eligible rollover distribution. For distributions made after
569December 31, 2007, an eligible retirement plan shall include a
570Roth IRA as defined under section 408A of the Code.
571     (c)  "Eligible rollover distribution" means any
572distribution of all or any portion of the firefighter's benefit,
573except that an eligible rollover distribution does not include
574any distribution that is one of a series of substantially equal
575periodic payments, at least annually, made for the life or life
576expectancy of the distributee or the joint lives or joint life
577expectancies of the distributee and the distributee's designated
578beneficiary, or for a specified period of 10 years or more; any
579distribution to the extent such distribution is required under
580section 401(a)(9) of the Code; the portion of any distribution
581that is not includible in gross income, determined without
582regard to the exclusion for net unrealized appreciation with
583respect to employer securities; and any distribution made to
584satisfy section 415 of the Code.
585     (d)  "Direct rollover" means a payment by the Firefighters'
586Relief and Pension Fund to the eligible retirement plan
587specified by the firefighter.
588     (e)  "Mandatory distribution" means a distribution that
589constitutes an eligible rollover distribution as defined in
590subsection (c) that is made without the firefighter's consent.
591See section 12 of the Plan for an example of a potential
592mandatory distribution. In the event a mandatory distribution is
593greater than $1,000, and a distributee fails to elect to have
594such distribution paid directly to an eligible retirement plan
595specified by the distributee in a direct rollover or to receive
596the distribution directly, then the board of trustees will pay
597the distribution in a direct rollover to an individual
598retirement account ("IRA") designated by the board of trustees.
599Notwithstanding any provision of the Firefighters' Relief and
600Pension Fund to the contrary that would otherwise limit a
601firefighter's or retired firefighter's election (or such
602deceased individual's surviving spouse's election) under this
603fund, such firefighter or retired firefighter, or such deceased
604individual's surviving spouse, may elect, at the time and in the
605manner prescribed by the plan administrator, to have any portion
606of an eligible rollover distribution paid directly to an
607eligible retirement plan specified by such pensioner in a direct
608rollover.
609     Section 9.  Sections 29 through 33 are added to chapter
61021483, Laws of Florida, 1941, as amended by chapter 2000-468,
611Laws of Florida, to read:
612     Section 29.  (a)  To the extent that the City of Pensacola,
613as an employer of firefighters and Firefighters' Relief and
614Pension Fund sponsor, may be required by law to provide
615additional benefits to firefighters employed by the city, or
616their beneficiaries, those additional benefits may be provided
617by ordinance.
618     (b)  Notwithstanding any other provision of the fund to the
619contrary, contributions, benefits, and service credit with
620respect to qualified military service, as defined in section
621414(u) of the Code, shall be provided in accordance with section
622414(u) of the Code, the Uniformed Services Employment and
623Reemployment Rights Act of 1994 (USERRA), and the Heroes
624Earnings Assistance and Relief Tax Act of 2008 (HEART Act) and
625shall be effective as of the dates indicated in the USERRRA and
626HEART Act.
627     (c)  A partial lump sum plan (PLOP) that shall have no
628material cost to the Firefighters' Relief and Pension Fund or
629the city shall be established by ordinance of the city within
630120 days after this act becomes law to be administered by the
631board of trustees.
632     Section 30.  Definitions.-The following words and phrases
633have the following meanings:
634     (a)  "Accrued benefit" means the monthly benefit payable at
635normal retirement age, as determined under the fund's formula.
636     (b)  "Actuarial equivalent" (or any synonymous term) means
637equality in value of the aggregate amount expected to be
638received.
639     (c)  "Code" means the Internal Revenue Code of 1986, as
640amended.
641     (d)  "Compensation," "salary," and "earnings" mean the
642wages paid to a firefighter, longevity pay, overtime pay,
643station or watch captain pay, special duty pay, in-service sick
644leave redemption pay when paid, bonuses, lump-sum payments not
645paid at termination, inclusive of employee-elective salary
646reductions or deferrals to any salary reduction, deferred
647compensation, or tax-sheltered annuity program authorized under
648the Internal Revenue Code if the firefighter would receive those
649reductions or deferrals if he or she were not participating in
650such program, and any other payments required by law to be
651included in pension calculations. Compensation for any plan year
652shall not exceed the annual compensation limit under section
653401(a)(17) of the Code as in effect on the first day of the plan
654year. This limit shall be adjusted by the Secretary of the
655Treasury to reflect increases in the cost of living, as provided
656in section 401(a)(17)(B) of the Code. However, the dollar
657increase in effect on January 1 of any calendar year is
658effective for the plan year beginning in such calendar year. If
659a plan determines compensation over a plan year that contains
660less than 12 months ("short plan year"), the compensation limit
661for such short plan year is equal to the compensation limit for
662the calendar year in which the short plan year begins multiplied
663by the ratio obtained by dividing the number of full months in
664the short plan year.
665     (e)  "Deferred Retirement Option Plan" or "DROP" means a
666retirement option in which a firefighter may elect to
667participate, under which a firefighter may retire for all
668purposes of the plan and defer receipt of retirement benefits
669into a DROP account while continuing employment with the city.
670     (f)  "Direct rollover" means a payment by the Firefighters'
671Relief and Pension Fund to the eligible retirement plan
672specified by the firefighter or retired firefighter or such
673deceased individual's surviving spouse.
674     (g)  "Eligible retirement plan" means an individual
675retirement account described in section 408(a) of the Internal
676Revenue Code of 1986, an individual retirement annuity described
677in section 408(b) of the Internal Revenue Code of 1986, an
678annuity plan described in section 403(a) of the Internal Revenue
679Code of 1986, or a qualified trust described in section 401(a)
680of the Internal Revenue Code of 1986 that accepts the
681firefighter's or retired firefighter's eligible rollover
682distribution. However, in the case of an eligible rollover
683distribution to the surviving spouse of a deceased firefighter
684or deceased retired firefighter, an eligible retirement plan is
685an individual retirement account or individual retirement
686annuity.
687     (h)  "Eligible rollover distribution" means any
688distribution of all or any portion of the balance to the credit
689of the firefighter or retired firefighter, except that an
690eligible rollover distribution does not include any distribution
691that is one of a series of substantially equal periodic payments  
692paid not less frequently than annually, made for the life or
693life expectancy of the firefighter or retired firefighter or the
694joint lives or joint life expectancies of the firefighter or
695retired firefighter and such individual's designated
696beneficiary, or for a specified period of 10 years or more; any
697distribution to the extent such distribution is required under
698section 401(a)(9) of the Internal Revenue Code of 1986; and the
699portion of any distribution that is not includable in gross
700income.
701     (i)  "Enrolled actuary" means an actuary who is enrolled
702under Subtitle C of Title III of the Employee Retirement Income
703Security Act of 1974 and who is a member of the Society of
704Actuaries or the American Academy of Actuaries.
705     (j)  "Firefighter" means any person employed by the City of
706Pensacola Fire Department who is certified as a firefighter as a
707condition of employment in accordance with the provisions of
708section 633.35, Florida Statutes, and whose duty it is to
709extinguish fires, to protect life, or to protect property.
710     (k)  "Limitation year" means the plan year.
711     (l)  "Plan" means the Firefighters' Relief and Pension
712Fund.
713     (m)  "Plan year" means the 12-month period ending on
714September 30.
715     (n)  "Retiree" or "retired firefighter" means a firefighter
716who has entered retirement status. A firefighter who enters a
717DROP created by the City of Pensacola for firefighters shall be
718considered a retiree for all purposes of the Firefighters'
719Relief and Pension Fund.
720     (o)  "Retirement" means a firefighter's separation from
721city employment as a firefighter with the immediate eligibility
722for receipt of benefits under the Firefighters' Relief and
723Pension Fund, including entry into a Deferred Retirement Option
724Plan.
725     (p)  "Years of service" means the aggregate number of years
726of service and fractional parts of a year of service, omitting
727intervention years and fractional parts of years when a
728firefighter may not have been employed by the city as a
729firefighter.
730     Section 31.  Maximum pension.-The benefits otherwise
731payable to a firefighter or a beneficiary under the
732Firefighters' Relief and Pension Fund, and, where relevant, the
733benefits of a firefighter, shall be limited to the extent
734required by the provisions of section 415 of the Code. To the
735extent applicable, the provisions of section 415 of the Code are
736incorporated by reference into the Firefighters' Relief and
737Pension Fund.  For this purpose, the limitation year is set
738forth in subsection 30(k).
739     Section 32.  Plan termination.-Upon termination of the
740Firefighters' Relief and Pension Fund for any reason, or upon
741written notice to the board of trustees that contributions
742thereunder are being permanently discontinued, the rights of all
743firefighters to benefits accrued to the date of such termination
744and the amounts credited to a firefighter's account, if
745applicable, are vested. Upon termination, the Firefighters'
746Relief and Pension Fund shall be distributed in accordance with
747the following procedures:
748     (a)  The board of trustees shall determine the date of
749distribution and the asset value required to Firefighters'
750Relief and Pension Fund all the vested benefits after taking
751into account the expenses of such distribution. The board shall
752inform the City of Pensacola if additional assets are required,
753in which event the City of Pensacola shall continue to
754financially support the Firefighters' Relief and Pension Fund
755until all vested benefits have been funded.
756     (b)  The board of trustees shall determine the method of
757distribution of the asset value, whether distribution shall be
758by payment in cash, by the maintenance of another or substituted
759trust fund, by the purchase of insured annuities, or otherwise,
760for each firefighter entitled to benefits under the
761Firefighters' Relief and Pension Fund as specified in subsection
762(c).
763     (c)  The board of trustees shall distribute the asset value
764as of the date of termination in the manner set forth in this
765subsection, on the basis that the amount required to provide any
766given retirement income is the actuarially equivalent single sum
767value of such retirement income, except that if the method of
768distribution determined under subsection (b) involves the
769purchase of an insured annuity, the amount required to provide
770the given retirement income is the single premium payable for
771such annuity. The actuarial equivalent single sum value may not
772be less than the firefighter's accumulated contributions to the
773Firefighters' Relief and Pension Fund, with interest if provided
774by the Firefighters' Relief and Pension Fund, less the value of
775any benefits previously paid to the firefighter from the
776Firefighters' Relief and Pension Fund.
777     (d)  If there is asset value remaining after the full
778distribution specified in subsection (c), and after the payment
779of any expenses incurred with such distribution, such excess
780shall be returned to the City of Pensacola, less return to the
781state of the state's contributions, provided that, if the excess
782is less than the total contributions made by the City of
783Pensacola and the state to date of termination of the
784Firefighters' Relief and Pension Fund, such excess shall be
785divided proportionately to the total contributions made by the
786City of Pensacola and the state.
787     (e)  The board of trustees shall distribute, in accordance
788with subsection (b), the amounts determined under subsection
789(c).
790
791If, 24 months after the date the Firefighters' Relief and
792Pension Fund terminated or the date the board received written
793notice that the contributions thereunder were being permanently
794discontinued, the City of Pensacola or the board of trustees of
795the Firefighters' Relief and Pension Fund has not complied with
796all the provisions in this section, the Department of Management
797Services shall effect the termination of the Firefighters'
798Relief and Pension Fund in accordance with section 175.361,
799Florida Statutes.
800     Section 33.  Forfeitures.-
801     (a)  A firefighter or such firefighter's beneficiary shall
802forfeit all benefits provided by the Firefighters' Relief and
803Pension Fund to the extent provided by the Florida State
804Constitution or general law.
805     (b)  Forfeitures arising from any cause whatsoever under
806the Firefighters' Relief and Pension Fund shall not be applied
807to increase the benefits to any firefighter would otherwise
808receive under the Firefighters' Relief and Pension Fund at any
809time before the termination of the Firefighters' Relief and
810Pension Fund or the complete discontinuance of contributions
811hereunder. Forfeitures shall be applied to reduce the
812contributions under the Firefighters' Relief and Pension Fund in
813the current or subsequent years by the City of Pensacola.
814     Section 10.  This act shall take effect upon becoming a
815law.


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