HB 231

1	A bill to be entitled
2	An act relating to the City Pension Fund for Firefighters
3	and Police Officers in the City of Tampa, Hillsborough
4	County; authorizing the City of Tampa to enter into a
5	supplemental contract with certain firefighters and police
6	officers to comply with chapter 2009-97, Laws of Florida;
7	revising the manner in which elective trustees are
8	elected; increasing the maximum length of time prior to
9	term commencement in which to conduct trustee elections;
10	allowing the board to retain the services of more than one
11	nationally recognized professional investment counselor;
12	increasing the investment cap on foreign securities;
13	providing that the investment cap on foreign securities
14	may not be revised, amended, increased, or repealed except
15	as provided by general law; allowing retired members to
16	elect to receive a reduced retirement benefit in order to
17	provide a surviving spouse benefit under certain
18	circumstances; allowing members to purchase up to an
19	additional 5 years of credited service based upon prior
20	service as a full-time certified firefighter or certified
21	police officer or for military service in the Armed Forces
22	of the United States subject to certain conditions;
23	allowing DROP participants upon entering DROP and annually
24	thereafter to elect an option for accruing annual interest
25	at a low-risk variable rate selected annually by the board
26	of trustees, in its sole discretion, in lieu of a rate
27	reflecting the fund's net investment performance, as
28	determined by the board of trustees; prohibiting members
29	from selecting certain pension contract changes and
30	rejecting others; confirming in part the City of Tampa
31	Firefighters and Police Officers Pension Contract;
32	providing for severability; providing an effective date.
33
34	Be It Enacted by the Legislature of the State of Florida:
35
36	Section 1.  The City of Tampa is authorized and empowered
37	to enter into a supplemental contract with each firefighter or
38	police officer who was an active member of the City Pension Fund
39	for Firefighters and Police Officers in the City of Tampa on or
40	after the date this act becomes a law, or each firefighter or
41	police officer who hereafter enters into a pension contract with
42	the City, to comply with chapter 2009-97, Laws of Florida.
43	Section 2.  Section 5(C), Section 6, Section 9(C), Section
44	17, and Section 26(D) of the City of Tampa Firefighters and
45	Police Officers Pension Contract as prescribed by Section 28-17
46	of the City of Tampa Code [Ordinance No. 4746-A, enacted
47	September 30, 1969], as amended by Section 28-19 of the City of
48	Tampa Code [Ordinance No. 6038-A, enacted September 17, 1974],
49	pursuant to chapter 74-613, Laws of Florida, as further amended
50	by Ordinance No. 89-314, enacted December 21, 1989, and
51	approved, ratified, validated, and confirmed by chapter 90-391,
52	Laws of Florida, as further amended by chapter 92-231, Laws of
53	Florida, chapter 94-463, Laws of Florida, chapter 98-515, Laws
54	of Florida, chapter 2000-485, Laws of Florida, Ordinance No.
55	2001-133, enacted July 3, 2001, chapter 2001-288, Laws of
56	Florida, chapter 2002-369, Laws of Florida, Ordinance No. 2003-
57	22, enacted January 23, 2003, chapter 2004-427, Laws of Florida,
58	and chapter 2007-304, Laws of Florida, are amended to read:
59	SECTION 5.  The general administration and responsibility
60	for the proper operation of the pension system and for making
61	effective the provisions of this Act are hereby vested in a
62	board consisting of nine persons, as follows:
63	(1)  Three members of the City Administration other than
64	firefighters or police officers to be appointed as hereinafter
65	provided;
66	(2)  Three members of the Fire Department to be elected as
67	hereinafter provided; and
68	(3)  Three members of the Police Department to be elected
69	as hereinafter provided.
70	(C)  The elective trustees shall be elected in the following
71	manner, to wit: by per capita vote of all members of each of said
72	respective departments who come within the purview of this Act,
73	both active and retired, at elections meetings to be held at
74	places designated by the Board, at which elections meetings all
75	qualified members entitled to vote shall be notified in person or
76	by mail ten days in advance of said election meeting. The
77	candidate receiving the majority of votes for each office shall
78	be declared elected and shall take office immediately upon
79	commencement of the term of office for which elected or as soon
80	thereafter as he shall qualify therefor. An election shall be
81	held each year not more than sixty (60) thirty (30) and not less
82	than ten (10) days prior to the commencement of the terms for
83	which trustees are to be elected in that year. The Board of
84	Trustees shall meet, organize, and elect one trustee as chairman,
85	one trustee as vice chairman, and one trustee as secretary within
86	ten days after any trustees are elected and duly qualified.
87	SECTION 6.  Money shall be withdrawn from the Pension Fund
88	created by this Act only upon warrants executed by a majority of
89	the Board of Trustees. Monies needed for the meeting of the
90	current obligations of said fund may be deposited in a
91	depository recognized by law for the deposit of funds of the
92	State of Florida and upon the posting of similar security for
93	that required for state deposits. The Board shall have exclusive
94	charge of the investment of any surplus in said fund not needed
95	for the current obligations thereof; and said funds shall be
96	managed by said Board and shall be invested by said Board in
97	accordance with the following:
98	(1)  That the Board shall retain the services of one or more
99	a nationally recognized professional investment counselors
100	counsel.
101	(2)  That not less than once every six (6) months a written
102	opinion shall be obtained from the investment counselor or
103	counselors counsel as to the overall condition and composition of
104	the investment portfolio.
105	(3)  That the portfolio, representing the principal or
106	surplus funds of the Pension Fund may be invested in the
107	following securities or other property, real or personal,
108	including, but without being limited to, bonds, notes, or other
109	evidences of indebtedness issued, or assumed or guaranteed in
110	whole or in part by the United States or any of its agencies or
111	instrumentalities; or by any foreign government or political
112	subdivisions or agencies thereof; or by the State of Florida, or
113	by any county, city, school district, municipal corporation, or
114	other political subdivision of the State of Florida, both general
115	and revenue obligations; in mortgages and other interests in
116	realty; or in such corporation bonds, notes, or other evidences
117	of indebtedness, and corporation stocks including common and
118	preferred stocks, of any corporation created or existing under
119	the laws of the United States or any of the states of the United
120	States, or of any foreign government or political subdivisions or
121	agencies thereof, provided that in making each and all of such
122	investments the Board of Trustees shall exercise the judgment and
123	care under the circumstances then prevailing which men of
124	ordinary prudence, discretion, and intelligence exercise in the
125	management of their own affairs, not in regard to speculation but
126	in regard to the permanent disposition of their funds,
127	considering the probable income therefrom as well as probable
128	safety of their capital; provided, however, that not more than
129	sixty-five per centum (65%) of said fund, based on the total book
130	value of all investments held, shall be invested at any given
131	time in common stocks, and that not more than five per centum
132	(5%) of said fund shall be invested at any given time in
133	preferred and common, or either, stock of any one corporation
134	and its affiliates and that not more than twenty-five per centum
135	(25%) ten per centum (10%) of said fund, based on the total book
136	value of all investments held, shall be invested at any given time
137	in the bonds, notes or other evidences of indebtedness of any
138	foreign government or political subdivisions or agencies thereof
139	or corporations created or existing under the laws thereof. The
140	investment cap on foreign securities may not be revised,
141	amended, increased, or repealed except as provided by general
142	law.
143	SECTION 9.  To the widow or widower (until death or
144	remarriage) and child or children (under the age of eighteen
145	(18) years), until death or marriage before reaching the age of
146	eighteen (18) years, of any member who dies from causes not
147	attributed to his active duties in the departments, provided,
148	however, that such member shall have been a member of such
149	department for ten (10) years prior to the date of his death,
150	the Trustees shall authorize and direct payment in equal monthly
151	installments as follows:
152	(C)(1)  The widow or widower of a member who dies while
153	receiving a retirement pension shall receive sixty-five per
154	centum (65%) of the pension which the member was receiving;
155	provided, however, that no pension shall be allowed to any widow
156	or widower unless she or he was married to the member prior to
157	the date of retirement of the member, except as provided in
158	paragraph (2). For the widow or widower of any member of this
159	Pension Fund who prior to October 16, 1992 was a member of
160	Division B of the General Employees Pension Plan as established
161	by Chapter 81-497, Laws of Florida, as amended, upon the
162	reaching social security normal retirement age, except as
163	provided in Section 28(C) of this Contract, the benefit paid to
164	the widow or widower shall be reduced by an amount equal to the
165	actual social security benefit earned by the member for
166	employment as a firefighter or police officer for the City to
167	the extent that such employment is considered to be creditable
168	service under this Fund; provided, however, that if the widow or
169	widower does not receive the member's accrued social security
170	benefit, there shall be no reduction in benefits paid to such
171	widow or widower. The effect of such reduction shall be that the
172	sum of the benefit paid herein and said social security benefit
173	shall be equal to the amount of the benefit otherwise payable
174	herein. The widow or widower of each such member shall, upon
175	demand by the Board, authorize the Social Security
176	Administration to release any information necessary to calculate
177	such reduction. The Board shall not make any payment for the
178	benefit payable herein for any period during which such widow or
179	widower willfully fails or refuses to authorize the release of
180	such information in the manner and within the time prescribed by
181	rules adopted by the Board.
182	(2)(a)  Members (i) who have been retired for less than
183	forty (40) years as of the effective date of this act, (ii) who
184	retired or entered DROP prior to October 1, 2002, and (iii) who
185	married or remarried after the date of the member's retirement
186	may elect prospectively to receive a voluntarily reduced
187	retirement benefit payable to the widow or widower. The amount
188	of the widow or widower's benefit will be based on the actuarial
189	equivalence calculated by the Fund's actuary, and such benefit
190	shall not result in any additional cost to the Fund or to the
191	plan sponsor than would have been incurred if the member had not
192	elected such benefit under this paragraph. Said actuarial
193	calculation shall be paid for by the retired member.
194	(b)  The election under subparagraph (a) is available only
195	if (i) the spouse is not more than twenty (20) years younger
196	than the married or remarried member, (ii) the marriage or
197	remarriage occurred at least three (3) years prior to the
198	member's said election, and (iii) the electing member is
199	restricted to exercising this provision for a maximum of two
200	remarriages after retirement.
201	SECTION 17.  COMPUTATION OF PENSION SERVICES AND PURCHASE
202	OF PAST CREDITED SERVICE.
203	(A)  In computing service allowance, creditable service
204	shall include all service or employment of the member in the
205	Fire or Police Department, either continuous or interrupted,
206	provided, however, that any leave of absence without pay shall
207	not be included. Credited service shall include credit for up to
208	five (5) years of the time spent in the military service of the
209	Armed Forces of the United States if the member is in the active
210	employ of the City of Tampa immediately prior to such service
211	and leaves a permanent, full-time position as a firefighter or
212	police officer with the City of Tampa for the purpose of
213	voluntary or involuntary service in the Armed Forces of the
214	United States. The member must be entitled to re-employment
215	under the provisions of the Uniformed Services Employment and
216	Re-Employment Rights Act (USERRA). In order to be eligible for
217	the benefits of this section, a member must return to employment
218	as a firefighter or a police officer of the City of Tampa within
219	one (1) year from the date of release of such active service.
220	Pension contributions shall not be required for military service
221	as described in this section, unless permitted by the Florida
222	Statutes. The provision of this section shall not apply to
223	temporary service for reserve training. No credited service
224	shall be given for military service prior to employment or for
225	service as a firefighter or police officer for any other
226	employer. However, the amount of any pension or compensation
227	that may be received from the Federal Government on account of
228	disability from such service shall be deducted from the amount
229	of any pension due under this Act. The deduction of the amount
230	of any pension or compensation received from the Federal
231	Government shall be made only where the period of military
232	service (not exceeding five (5) years) is added to the period of
233	actual service of the member in either the Fire or Police
234	Department in order to make up the required number of years for
235	retirement on a City pension; that the disability for which any
236	pension or compensation is received from the Federal Government
237	shall be only such disability that was incurred in the military
238	service during the same period of military service used by the
239	member to add to his actual service in the Police or Fire
240	Departments in order to make up the number of years required for
241	retirement on a City pension; and that no deduction of the
242	amount of any pension or compensation received from the Federal
243	Government can or shall be made from the amount of any City
244	pension granted solely on account of disability. Any member who,
245	in order to perform such active military service, has left his
246	employment in the Police or Fire Departments of the City of
247	Tampa and (a) who received a certificate of honorable discharge
248	upon completion of such active military service, (b) is still
249	qualified to perform the duties of such position, (c) makes or
250	shall have made application for reemployment within thirty (30)
251	days after he is released from active military service, shall be
252	restored by the Police or Fire Department of the City of Tampa
253	to such position or a position of like seniority, status and
254	pay.
255	(B)  Immediately upon the passage of this Act the Board of
256	Trustees shall at once establish the service record of all
257	employees, who may be entitled to participate in the benefits of
258	this Act, and shall keep a record thereof.
259	(C)  For each firefighter and police officer who on October
260	15, 1992 was not a member of this Pension Fund, but who was a
261	member of Division B of the General Employees Pension Plan as
262	established by Chapter 81-497, Laws of Florida, as amended, who
263	elects to join this pension fund, for purposes of determining
264	eligibility for any benefit in which length of service is a
265	factor, the entire period of time served as a firefighter or
266	police officer with the City of Tampa, either continuous or
267	interrupted, shall be included; provided, however, that any
268	leave of absence without pay shall not be included unless
269	required by applicable law, any service as a police recruit
270	shall not be included, and any service in which the firefighter
271	or police officer withdrew his/her contributions shall not be
272	included. Active military service shall be included to the
273	extent required by law.
274	(D)  A member who has separated from service as a
275	firefighter or police officer and who has taken a refund of his
276	pension contributions, who is later readmitted to the Fund,
277	shall have the option of purchasing past creditable service.
278	(1)  The readmitted member shall make the election in
279	writing to purchase past creditable service on a form prescribed
280	by the Board within 90 days of readmission, which election shall
281	be legally binding.
282	(2)  The readmitted member who elects to purchase past
283	creditable service shall repay the withdrawn contributions with
284	interest at the actuarially assumed rate of return of the Fund
285	within 90 days of the later of, readmission or receipt of
286	written notification from the Board of the amount due. Interest
287	shall be calculated from the date of withdrawal to the date of
288	repayment at the actuarially assumed rate of return of the Fund.
289	(3)  A member who fails to pay withdrawn contributions with
290	interest as provided in this subsection within 90 days of the
291	later of, readmission or receipt of written notification from
292	the Board of the amount due, shall not receive creditable
293	service for the period of time for which the withdrawn
294	contributions apply.
295	(E)  All active police officer or firefighter members shall
296	be permitted to purchase up to an additional five (5) years of
297	credited service based upon (i) service as a full-time certified
298	firefighter or certified police officer employed by a city,
299	county, state, federal, or other public agency, or (ii) military
300	service in the Armed Forces of the United States. Temporary,
301	auxiliary, reserve, volunteer, or private agency service shall
302	not apply. Service credit purchased under the provisions of this
303	section shall not count for vesting purposes.
304	(1)  Prior service shall not be granted until the member
305	has paid to the Pension Fund the actuarial cost of the service
306	purchased, as determined by the actuary for the Plan. Said
307	actuarial calculation shall be paid for by the member. Members
308	purchasing service credit shall provide the Board of Trustees
309	with proof of prior service with honorable separation. No
310	service credit may be purchased if the member is receiving or
311	will receive any other retirement benefit based on this service,
312	except in the case of a military pension.
313	(2)  The contribution by the member of the actuarially
314	determined cost of the buyback may be made in one lump sum or
315	may be made by payroll deductions in installments for a period
316	of time which shall not exceed the number of years being
317	purchased. A member electing to make installment payments shall
318	be charged interest based on the actuarially assumed rate of
319	return for the Plan. A member making installment payments shall
320	complete all required payments prior to payment of any benefit
321	under this section.
322	(3)  A member who terminates service prior to vesting in
323	the Plan shall be entitled to a refund, without interest, of all
324	money paid to buy back prior military, firefighter, or police
325	officer service.
326	SECTION 26.  DEFERRED RETIREMENT OPTION PROGRAM
327	Notwithstanding any other provisions of this contract, and
328	subject to the provisions of this section, the Deferred
329	Retirement Option Program, hereinafter referred to as the DROP,
330	is an option under which an eligible member may elect to have
331	the member's pension benefits calculated as of a certain date
332	prior to retirement, and accumulate benefits plus the investment
333	return pursuant to this section during the DROP calculation
334	period. Participation in the DROP does not guarantee employment
335	for the DROP calculation period, as defined in this section.
336	(D)  Interest and Administrative Costs - Interest shall
337	accumulate annually at the rate to reflect the Fund's net
338	investment performance, whether positive or negative, during the
339	DROP calculation period, less the cost of administering the
340	DROP, all of which shall be determined by the Board of Trustees.
341	A DROP participant shall have the opportunity to elect, as
342	provided in this subsection, an investment option to be applied
343	to such DROP participant's account for the Plan Year when
344	entering the DROP and for each subsequent Plan Year. In such
345	election, the DROP participant shall choose to have interest
346	accumulate annually, whether positive or negative, at either (i)
347	a rate reflecting the Fund's net investment performance, as
348	determined by the Board of Trustees, or (ii) a rate reflecting a
349	low-risk variable rate selected annually by the Board of
350	Trustees in its sole discretion. Each election must be made at
351	such time, on such forms, and in such manner as the Board of
352	Trustees may determine in its sole discretion. If the DROP
353	participant fails to make a valid election upon entering the
354	DROP, the Fund interest rate shall be applied as provided
355	herein. If the DROP participant fails to make a valid election
356	in a subsequent Plan Year, the election for the then-current
357	Plan Year shall be applied.
358	Section 3.  The changes to the pension contract in this act
359	for firefighters and police officers who are active members of
360	the City Pension Fund for Firefighters and Police Officers in
361	the City of Tampa on or after the date this act becomes a law
362	shall be made available in a supplemental pension contract, and
363	an individual shall not be permitted to select some of the
364	pension contract changes and reject other pension contract
365	changes. Any firefighter or police officer who is entitled to
366	benefits under the City Pension Fund for Firefighters and Police
367	Officers in the City of Tampa who is actively employed as a
368	firefighter or police officer in the City of Tampa on or after
369	the date this act becomes a law shall have the opportunity to
370	sign such supplemental pension contract before October 1, 2011.
371	However, any person who becomes a member of the City Pension
372	Fund for Firefighters and Police Officers in the City of Tampa
373	on or after the date this act becomes a law shall be required as
374	a condition of membership into said Pension Fund to sign a
375	pension contract which includes the provisions of this act and
376	shall be required to make contributions if required as a result
377	of such benefits.
378	Section 4.  The City of Tampa Firefighters and Police
379	Officers Pension Contract as prescribed by Section 28-17 of the
380	City of Tampa Code [Ordinance No. 4746-A, enacted September 30,
381	1969], as amended by Section 28-19 of the City of Tampa Code
382	[Ordinance No. 6038-A, enacted September 17, 1974], pursuant to
383	chapter 74-613, Laws of Florida, as further amended by Ordinance
384	No. 89-314, enacted December 21, 1989, and approved, ratified,
385	validated, and confirmed by chapter 90-391, Laws of Florida, as
386	further amended by chapter 92-231, Laws of Florida, chapter 94-
387	463, Laws of Florida, chapter 98-515, Laws of Florida, chapter
388	2000-485, Laws of Florida, Ordinance No. 2001-133, enacted July
389	3, 2001, chapter 2001-288, Laws of Florida, chapter 2002-369,
390	Laws of Florida, Ordinance No. 2003-22, enacted January 23,
391	2003, chapter 2004-427, Laws of Florida, and chapter 2007-304,
392	Laws of Florida, is in all other respects approved, ratified,
393	validated, and confirmed.
394	Section 5.  If any provision of this act or its application
395	to any person or circumstance is held invalid, the invalidity
396	does not affect other provisions or applications of the act
397	which can be given effect without the invalid provision or
398	application, and to this end the provisions of this act are
399	severable.
400	Section 6.  This act shall take effect October 1, 2011.

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