HB 229

1	A bill to be entitled
2	An act relating to the City of Tampa, Hillsborough County;
3	amending chapter 23559, Laws of Florida, 1945, as amended;
4	revising the General Employees' Pension Plan for the City
5	of Tampa; revising the definitions of the terms "Salaries
6	or Wages," "Employee," and "Military Service Time";
7	revising application of the term "Actuarial Equivalent";
8	defining the term "Limitation Year"; providing that all
9	employee contributions to the pension fund after a certain
10	date are mandatory and that the city shall pay such
11	contributions to the fund on behalf of the employee;
12	providing certain beneficiaries an option to roll over
13	certain death benefits; providing for a refund of employee
14	contributions; revising the provision that addresses the
15	reemployment of retired employees; revising construction
16	of the act; allowing DROP members the opportunity to elect
17	an investment option, as determined by the board of
18	trustees, to be applied to the participant's account for
19	the plan year entering the DROP program and for each
20	subsequent plan year; revising benefit limitations;
21	revising requirements for distribution of benefits;
22	providing a default distribution when a member fails to
23	elect a distribution option; revising direct rollover
24	options; revising the definitions of the terms "eligible
25	rollover distribution," "eligible rollover plan," and
26	"distributee"; providing an effective date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Subsections (A), (E), (H), and (P) of section
31	4, subsection (A) of section 5, subsection (B) of section 16,
32	section 19, subsection (D) of section 22, subsections (A), (B),
33	(D), (E), and (F) of section 24, and sections 25 and 26 of
34	chapter 23559, Laws of Florida, 1945, as amended, are amended,
35	and subsection (S) is added to section 4, subsection (C) is
36	added to section 12, and subsection (C) is added to section 14
37	of that chapter, to read:
38	Section 4.  Definitions.
39	(A)  Salaries or Wages.  Salaries or Wages for the purpose
40	of this Act shall be the base amounts earned by the Employee,
41	plus regular longevity bonuses, overtime, and shift premiums.
42	Salary or Wages shall also include elective amounts that are
43	excludible from the Employee's gross income under Sections 125
44	(including amounts that are not available to the Employee in
45	cash in lieu of group health coverage because the Employee is
46	unable to certify that he or she has other health coverage, but
47	only if the Employer does not request or collect information
48	regarding the Employee's other health coverage as part of the
49	enrollment for the health plan); 403(b) (tax-sheltered annuity);
50	457 (Section 457 plan); and 132(f)(4) of the Internal Revenue
51	Code of 1986, as amended, and the regulations thereunder (the
52	"Code"). Salaries or Wages shall exclude, but exclusive of other
53	premiums, other than shift premiums, allowances, or special
54	payments, or any casual nonrecurring or unpredictable bonuses;
55	payments for unused accrued bona fide sick, vacation, or other
56	leave; payments received by an Employee pursuant to a
57	nonqualified unfunded deferred salary or wages plan; and
58	severance pay that is paid after an Employee severs employment
59	with the City. However, Salaries or Wages, as defined herein,
60	earned but not paid to the Employee by the Employee's severance
61	date with the City shall be considered Salary or Wages for Plan
62	purposes. In addition to other applicable limitations set forth
63	in the Plan, and notwithstanding any other provision of the Plan
64	to the contrary, for Plan Years beginning on or after January 1,
65	1996, the annual Salaries or Wages of each Employee taken into
66	account under the Plan shall not exceed the annual compensation
67	limit provided for in Section 401(a)(17) of the Code the Omnibus
68	Budget Reconciliation Act of 1993 (the "OBRA 1993 Annual
69	Compensation Limit"). The OBRA 1993 Annual Compensation Limit is
70	$150,000, as adjusted by the Commissioner of the Internal
71	Revenue Service for increases in the cost-of-living in
72	accordance with Section 401(a)(17)(B) of the Internal Revenue
73	Code of 1986, as amended (the "Code"). The cost-of-living
74	adjustment in effect for a calendar year applies to any period,
75	not exceeding 12 months, over which Salaries or Wages are
76	determined (determination period) beginning in such calendar
77	year. If a determination period consists of fewer than 12
78	months, the OBRA 1993 Annual Compensation Limit will be
79	multiplied by a fraction, the numerator of which is the number
80	of months in the determination period, and the denominator of
81	which is 12. For Plan Years beginning on or after January 1,
82	1996, any reference in this Plan to the limitation under Section
83	401(a)(17) of the Code shall mean the OBRA 1993 Annual
84	Compensation Limit set forth in this provision. The limitation
85	on Salaries or Wages for an "eligible Employee" shall not be
86	less than the amount which was allowed to be taken into account
87	hereunder as in effect on July 1, 1993. "Eligible Employee" is
88	an individual who was a participant in the Plan before the first
89	Plan Year beginning after December 31, 1995. Commencing for
90	earnings paid the first pay date after October 1, 2005, all
91	mandatory Employee Contributions to the Fund shall be picked up
92	and paid by the City. Such contributions, although designated as
93	Employee Contributions, shall be paid by the City in lieu of
94	contributions by the Employee. The contributions so assumed
95	shall be treated as tax-deferred Employer "pickup" contributions
96	pursuant to Section 414(h) of the Internal Revenue Code. Members
97	shall not have the option of receiving the contributed amounts
98	directly instead of having such contributions paid by the City
99	to the Fund.
100	(E)  Employee.  For the purposes of this Act, "Employee"
101	shall mean an Employee covered or qualified to be covered under
102	either Division A or Division B of this Plan. An Employee
103	covered by this Plan shall include all Employees, whether full-
104	time full time, part-time, or temporary, who have taken the
105	physical examination required by Section 18. Employees whose
106	Salaries or Wages are paid pursuant to a federal grant-in-aid
107	program are included in this Act only when the federal
108	government pays the employer's contribution. Any individual who
109	is an independent contractor, or who performs services for the
110	City under an agreement that identifies the individual as an
111	independent contractor, is excluded from the Plan even if a
112	governmental agency retroactively reclassifies such individual
113	as an Employee. Casual laborers are excluded from this
114	definition as are employees covered by other City pension plans.
115	(H)  Military Service Time.  For members rehired after
116	leave to provide military service prior to December 12, 1994, in
117	computing Service allowance for retirement, creditable Service
118	shall, at the option of the Employee, include any service which
119	interrupted employment with the Employer, not to exceed a period
120	of 3 years, in any of the armed services of the United States
121	during time of war, upon condition that within 90 days from the
122	date of reinstatement of such Employee now or hereafter serving
123	in the armed forces, or within 90 days from the effective date
124	of this Act for those Employees already reinstated, such
125	Employee shall exercise such option by filing written notice
126	thereof with the Board of Trustees and, if a Division A
127	Employee, shall within the 12 ensuing months pay into the
128	retirement fund an amount equal to the aggregate contributions
129	such Employee would have made had such Employee not served in
130	the armed forces, based upon the Salary or Wages being earned at
131	the time of entering the armed services, and if any such
132	Employee shall fail to exercise such option within the time and
133	in the manner hereinabove prescribed, such period of military
134	service shall not thereafter be allowed as creditable Service,
135	but shall not be deemed a break in such Employee's Continuous
136	Service eligibility period. Members rehired on or after December
137	12, 1994, Notwithstanding the foregoing, an Employee shall be
138	credited with service for purposes of vesting and benefit
139	accrual under the Plan for his or her service in the uniformed
140	service (as defined in the Uniformed Services Employment and
141	Reemployment Rights Act of 1994, known as (the "USERR Act") upon
142	being granted leave by the Employer for such uniformed service
143	and termination from employment as an Employee with the
144	Employer, provided that the Employee must return to his or her
145	employment as an Employee with the Employer within the time
146	periods prescribed by the USERR Act; and must comply the
147	Employee complies with the Employee contribution requirements
148	prescribed by the USERR Act. The maximum service credit for
149	uniformed service shall be 5 years or such other time period as
150	may be prescribed by the USERR Act. Effective as of the dates
151	reflected in the Heroes Earnings Assistance and Relief Tax Act
152	("HEART Act"), the Plan must comply with all applicable
153	provisions of the HEART Act.
154	(P)  Actuarial Equivalent.  The Actuarial Equivalent of an
155	Employee's Accrued Pension shall be determined by basing
156	mortality on the 1983 Group Annuity Mortality Table for Males
157	with female ages set back 6 years and post-disablement mortality
158	upon 80 percent of the 1965 Railroad Board Ultimate Mortality
159	Table, or such other mortality tables as are in compliance with
160	the Code. This subsection does not apply to Plan Limitation
161	Years beginning after December 31, 2008.
162	(S)  Limitation Year.  The limitation year shall be the
163	Plan Year.
164	Section 5.  Contributions.  The Pension Fund shall consist
165	of moneys derived from the following sources:
166	(A)  Employee Contributions.  Division A Employees.
167	Commencing for earnings paid beginning with the first pay date
168	after January 1, 2005, all Employee contributions to the Fund
169	shall be mandatory Employee contributions and shall be picked up
170	and paid by the City on behalf of the member. Such contributions
171	shall be made by Employees in an amount equal to There shall be
172	a contribution of 7 percent of all Salaries or Wages of all
173	Employees participating in this Fund, which shall be deducted
174	from said Salaries or Wages by the Director of Finance, before
175	the same are paid, as long as the Employee continues in the
176	Service of the City of Tampa, regardless of the number of years
177	of Service with the City. Such contributions, although
178	designated as Employee contributions, shall be paid by the City
179	in lieu of contributions by the Employee. The contributions so
180	assumed shall be treated as tax-deferred Employer "pick-up"
181	contributions pursuant to Section 414(h) of the Code. Members
182	shall not have the option of receiving the contributed amounts
183	directly instead of having such contributions paid by the City
184	to the Fund.
185	Section 12.  Death Benefits.
186	(C)  When the designated beneficiary, as defined in Section
187	401(a)(9)(E) of the Code, is not the Employee's spouse
188	(including, without limitation, a child, parent, or sibling),
189	distributions made after December 31, 2006, from Division A and
190	Division B shall be made in accordance with Section 402(c)(11)
191	of the Code, and such designated beneficiary shall have the
192	option to roll over all or a portion of his or her death benefit
193	via a direct trustee-to-trustee transfer to an inherited
194	individual retirement account, as defined in Section
195	408(d)(3)(c) of the Code, provided such distribution meets the
196	definition of an eligible rollover distribution as defined in
197	Section 26 of this Act.
198	Section 14.  Refund of Contributions Contribution.
199	(C)  Refund of Employee contributions shall be paid in
200	accordance with Section 26 of this Act.
201	Section 16.  Reemployment of Retired Employees Employee.
202	Upon the employment of any person in Division A or Division B
203	who shall have retired under the pension or retirement Plan and
204	shall be receiving pension payments, such person shall resume
205	his participation in the Plan, shall not be entitled to receive
206	pension payments during or for the period of such additional
207	Service, the period of such retirement shall not constitute a
208	break in Service, and the period of such retirement shall not be
209	allowed as creditable Service. The monthly pension payable when
210	such officer or person is eligible to receive a pension shall
211	consist of the sum of (A) and (B) below, provided that the total
212	pension shall not be less than $100 per month after 25 years of
213	Service.
214	(A)  The monthly pension he was receiving immediately prior
215	to the commencement of his additional Service; plus
216	(B)  One and two-tenths one-tenths percent of his Average
217	Monthly Salary at the end of his period of additional Service
218	multiplied by the number of years of additional Service,
219	provided, however, that this additional benefit shall not be
220	payable before the age of 62 years.
221	Section 19.  Construction.  This Act shall be liberally
222	construed in accordance with general law and the federal tax
223	code, and if any part or portion thereof be declared invalid, or
224	the application thereof to any person, circumstance, or thing is
225	declared invalid, the validity of the remainder of this Act
226	shall not be affected thereby.
227	Section 22.  Deferred Retirement Option Program.
228	Notwithstanding any other provisions of this Act, and subject to
229	the provisions of this section, the Deferred Retirement Option
230	Program, hereinafter referred to as the DROP, is an option under
231	which an eligible member may elect, commencing on October 1,
232	1999, to have the member's pension benefits calculated as of a
233	certain date prior to retirement, and accumulate benefits plus
234	the investment return pursuant to this section during the DROP
235	calculation period. Participation in the DROP does not guarantee
236	employment for the DROP calculation period, as defined in this
237	section.
238	D.  Interest and administrative costs. Interest shall
239	accumulate annually at a rate reflecting the Fund's net
240	investment performance, whether positive or negative, during the
241	DROP calculation period, less the cost of administering the
242	DROP, all of which shall be determined by the Board of Trustees.
243	A DROP participant shall have the opportunity to elect, as
244	provided in this subsection, an investment option to be applied
245	to such DROP participant's account for the Plan Year when
246	entering the DROP and for each subsequent Plan Year. In such
247	election, the DROP participant shall choose to have interest
248	accumulate annually, whether positive or negative, at either (i)
249	a rate reflecting the Fund's net investment performance, as
250	determined by the Board of Trustees, or (ii) a rate reflective
251	of a low-risk variable rate selected annually by the Board of
252	Trustees in its sole discretion. Each election must be made at
253	such time, on such forms, and in such manner as the Board of
254	Trustees may determine in its sole discretion. If a DROP
255	participant fails to make a valid election upon entering the
256	DROP, the Fund interest rate shall be applied as provided in (i)
257	herein. If a DROP participant fails to make a valid election in
258	a subsequent Plan Year, the election for the then-current Plan
259	Year shall be applied.
260	Section 24.  Limitations on Amounts of Benefits.
261	(A)  For Plan Years ending after December 31, 2001,
262	benefits for an Employee under this Plan, when expressed as a
263	benefit payable annually in the form of a straight life annuity
264	without regard to the death benefit or any other ancillary
265	benefit, shall not at any time within the limitation year exceed
266	the limits provided under Section 415(b) of the Code $90,000.
267	(B)1.  The $90,000 limitation set forth in subsection (A)
268	shall be actuarially reduced in accordance with regulations
269	prescribed by the Secretary of the Treasury for any retirement
270	benefit that may begin before an Employee attains age 62, by
271	adjusting such benefit so that it is equivalent to such a
272	benefit beginning at age 62. For Plan Years ending before
273	January 1, 2002, and repealed for Plan Years ending thereafter,
274	the reduction shall not reduce the $90,000 limitation set forth
275	in subsection (A) to less than (a) $75,000 if the benefit begins
276	at or after age 55, or (b) if the benefit begins before age 55,
277	the equivalent of the $75,000 limitation for age 55.
278	2.  If any retirement benefit begins after the Employee
279	attains age 65, the $90,000 limitation set forth in subsection
280	(A) shall be adjusted (based upon an interest rate assumption of
281	5 percent) in accordance with regulations prescribed by the
282	Secretary of the Treasury, by adjusting such benefit so that it
283	is equivalent to such benefit beginning at age 65.
284	(D)  In accordance with Section 415(b)(5) of the Code, the
285	$90,000 limitation in subsection (A), and the limitation in
286	subsection (C), shall be multiplied by a fraction (not in excess
287	of 1), the numerator of which is the number of the Employee's
288	years of Service in the Plan (in the case of the $90,000
289	limitation set forth in subsection (A)) or the number of the
290	Employee's years of Service (in the case of the limitation set
291	forth in subsection (C)) and the denominator of which, in either
292	case, is 10.
293	(E)  As of January 1 of each calendar year, the $90,000
294	limitation set forth in subsection (A) shall be adjusted as and
295	if permitted by the Secretary of the Treasury, and any such
296	adjusted limitation shall become effective as the maximum dollar
297	limitation under the Plan for that calendar year. The maximum
298	dollar limitation for a calendar year, as so adjusted, shall
299	apply to limitation years ending with or within such calendar
300	year.
301	(F)  The following is repealed for Plan Limitation Years
302	beginning after December 31, 1999:
303	1.  In the event that any Employee participates in both a
304	defined benefit plan and a defined contribution plan maintained
305	by the City, then the sum of the Defined Benefit Plan Fraction
306	(as defined in Section 415(e) of the Code) and the Defined
307	Contribution Plan Fraction (as defined in Section 415(e) of the
308	Code) for any limitation year shall not exceed 1.0.
309	2.  In the event that the sum of the Defined Benefit Plan
310	Fraction and the Defined Contribution Plan Fraction exceeds 1.0,
311	then the Board of Trustees shall take such actions, applied in a
312	uniform and nondiscriminatory manner, as will keep the benefits
313	and annual additions thereto for such Employees from exceeding
314	these limits. Adjustments shall be made to this Plan before any
315	adjustments shall be required to any other plans.
316	Section 25.  Latest Date of Commencement of Benefits
317	Required Distributions.  The distribution of a member's benefit
318	shall be made in accordance with the following requirements, and
319	shall otherwise comply with Section 401(a)(9) of the Code and
320	the regulations thereunder, as prescribed by the Commissioner in
321	Revenue Rulings, Notices, and other guidance published in the
322	Internal Revenue Bulletin, to the extent that said provisions
323	apply to governmental plans under Section 414(d) of the Code.
324	The distribution provisions of Section 401(a)(9) of the Code
325	shall override any distribution options in the Plan inconsistent
326	with Section 401(a)(9) of the Code:
327	(A)  Any benefit paid to a member an Employee shall
328	commence not later than the last to occur of:
329	1.  April 1 of the year following the calendar year in
330	which the member Employee retires; or
331	2.  April 1 of the year immediately following the calendar
332	year in which the member Employee reaches age 70 1/2.
333	(B)  Distributions of members' benefits will be made in
334	accordance with Sections 1.401(a)(9)-2. through 1.401(a)(9)-9.
335	of the Code and such other rules thereunder as may be prescribed
336	by the Secretary of the Treasury, to the extent that said
337	provisions apply to governmental plans under Section 414(d) of
338	the Code.
339	(B)  In the case of a benefit payable by reason of an
340	Employee's retirement or other termination of employment, in no
341	event shall payment extend beyond the life or life expectancy of
342	the Employee or the joint lives or life expectancies of the
343	Employee and the Employee's designated beneficiary. In the case
344	of an Employee who is receiving his or her pension benefit as of
345	the date of his or her death, the survivor portion of the
346	Employee's pension benefit shall be paid at least as rapidly as
347	under the method being used prior to the Employee's death.
348	(C)  Notwithstanding anything contained herein to the
349	contrary, payments under the Plan to a Beneficiary due to a
350	member's death shall satisfy the incidental death benefit
351	requirements and all other applicable provisions of Section
352	401(a)(9)(G) of the Code, the regulations issued thereunder
353	(including Section 1.401(a)(9)-2 of the proposed Treasury
354	regulations), and such other rules thereunder as may be
355	prescribed by the Secretary of the Treasury, including IRS
356	Notice 2007-7, to the extent that said provisions apply to
357	governmental plans under Section 414(d) of the Code.
358	Section 26.  Direct Rollovers.
359	(A)  This section applies to distributions made on or after
360	January 1, 1993. Notwithstanding any provision of the Plan to
361	the contrary that would otherwise limit a distributee's (as
362	defined below) election under this section, a distributee may
363	elect, at the time and in the manner prescribed by the
364	Commissioner of the Internal Revenue Service, to have any
365	portion of an eligible rollover distribution (as defined below)
366	paid directly to an eligible retirement rollover plan (as
367	defined below) specified by the distributee in a direct rollover
368	(as defined below). If a member fails to elect a distribution
369	option as provided under Sections 14 and 22 of this Act, then
370	such member's benefit shall be rolled over to an individual
371	retirement account designated by the Board of Trustees, as
372	defined in Section 6.
373	(B)  For purposes of this section, the following terms
374	shall have the following meanings:
375	1.  An "eligible rollover distribution" is any distribution
376	of all or any portion of the balance to the credit of the
377	distributee, except that an eligible rollover distribution does
378	not include: any distribution that is one of a series of
379	substantially equal periodic payments (not less frequently than
380	annually) made for the life (or life expectancy) of the
381	distributee or the joint lives (or joint life expectancies) of
382	the distributee and the distributee's designated beneficiary, or
383	for a specified period of 10 years or more; any distribution to
384	the extent such distribution is required under Section 401(a)(9)
385	of the Code;, and the portion of any distribution that is not
386	includable in gross income (determined without regard to the
387	exclusion for net unrealized appreciation with respect to
388	employer securities). Notwithstanding the above, a portion of a
389	distribution shall not fail to be an "eligible rollover
390	distribution" merely because the portion consists of after-tax
391	voluntary Employee contributions that are not includable in
392	gross income. However, such portion may be transferred only to
393	an individual retirement account or annuity described in Section
394	408(a) or (b) of the Code or to a qualified defined contribution
395	plan described in Section 401(a) or 403(a) of the Code that
396	agrees to separately account for amounts transferred, including
397	separately accounting for the portion of such distribution that
398	is includable in gross income and the portion of such
399	distribution that is not so includable.
400	2.  An "eligible retirement rollover plan" is an individual
401	retirement account described in Section 408(a) of the Code, an
402	individual retirement annuity described in Section 408(b) of the
403	Code, other than an endowment contract; an annuity plan
404	described in Section 403(a) of the Code, or a qualified trust
405	(an employees' trust) described in Section 401(a) of the Code
406	that is exempt from tax under Section 501(a) of the Code; an
407	annuity plan described in Section 403(a) of the Code; an
408	eligible plan under Section 457(b) of the Code that is
409	maintained by a state, a political subdivision of a state, or
410	any agency or instrumentality of a state or political
411	subdivision and that agrees to separately account for amounts
412	transferred into such plan from this Plan; or an annuity
413	contract described in Section 403(b) of the Code that accepts
414	the distributee's eligible rollover distribution. However, in
415	the case of an eligible rollover distribution to the surviving
416	spouse, an eligible retirement rollover plan is an individual
417	retirement account or individual retirement annuity.
418	3.  A "distributee" includes the member or former member an
419	Employee or former employee. In addition, the member's
420	Employee's or former member's employee's surviving spouse and
421	the member's Employee's or former member's employee's spouse or
422	former spouse who is the alternate payee under a qualified
423	domestic relations order, as defined in Section 414(p) of the
424	Code, are distributees with regard to the interest of the spouse
425	or former spouse.
426	4.  A "direct rollover" is a payment by the Plan to the
427	eligible retirement plan specified by the distributee.
428	Section 2.  This act shall take effect October 1, 2011.

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