HB 303

1	A bill to be entitled
2	An act relating to public retirement plans; amending s.
3	112.65, F.S.; limiting benefits available under public
4	retirement systems or plans; amending s. 121.021, F.S.;
5	revising definitions relating to compensation; creating s.
6	121.024, F.S.; providing application of the benefit
7	limitations in s. 112.65, F.S., to the Florida Retirement
8	System; amending s. 121.0515, F.S.; revising the
9	calculations used for upgrading a special risk member's
10	contributions for past service; amending s. 175.021, F.S.;
11	revising legislative declaration with respect to
12	firefighter pension plans; amending s. 175.032, F.S.;
13	revising definitions; creating s. 175.033, F.S.; providing
14	application of the benefit limitations in s. 112.65, F.S.,
15	to firefighter pension plans; amending s. 175.041, F.S.;
16	revising the applicability of ch. 175, F.S., to
17	firefighters who are eligible for the Florida Retirement
18	System; removing a provision prohibiting municipalities
19	from establishing more than one retirement plan for
20	certain public safety officers; amending s. 175.061, F.S.;
21	authorizing the change of municipal representation on the
22	board of trustees under certain conditions; limiting the
23	number of trustees of a firefighters' pension trust fund
24	who may also be members of the plan; providing duties of
25	the board relating to the reporting of expenses and the
26	submission of a proposed administrative expense budget;
27	removing provisions to conform; amending s. 175.071, F.S.;
28	revising requirements of the board relating to the
29	employment of legal counsel, actuaries, and other
30	advisers; amending s. 175.091, F.S.; removing an
31	adjustment requirement for member contribution rates to a
32	retirement plan for firefighters; amending s. 175.162,
33	F.S.; revising requirements for retirement for
34	firefighters; amending s. 175.191, F.S.; revising
35	provisions relating to the determination of disability for
36	purposes of awarding firefighter retirement benefits;
37	repealing s. 175.231, F.S., relating to a presumption with
38	respect to diseases of firefighters suffered in the line
39	of duty; amending s. 175.351, F.S.; revising provisions
40	relating to benefits paid from the premium tax by a
41	municipality or special fire control district that has its
42	own pension plan; amending s. 175.361, F.S.; transferring
43	certain powers and responsibilities from the board of
44	trustees to municipalities and special fire control
45	districts relating to termination of plans and
46	distribution of funds; repealing s. 175.371, F.S.,
47	relating to transfer to another state retirement system
48	and payment of benefits; creating s. 175.372, F.S.;
49	providing for the payment of benefits under another
50	retirement system and the use of premium tax moneys;
51	repealing s. 175.381, F.S., relating to applicability of
52	ch. 175, F.S., relating to firefighter pension plans;
53	amending s. 185.01, F.S.; revising legislative declaration
54	with respect to municipal police pension plans; amending
55	s. 185.02, F.S.; revising definitions; creating s.
56	185.021, F.S.; providing application of the benefit
57	limitations in s. 112.65, F.S., to municipal police
58	pension plans; amending s. 185.03, F.S.; revising the
59	applicability of ch. 185, F.S., to municipal police
60	officers who are eligible for the Florida Retirement
61	System; removing a provision prohibiting municipalities
62	from establishing more than one retirement plan for
63	certain public safety officers; amending s. 185.05, F.S.;
64	authorizing the change of municipal representation on the
65	board of trustees under certain conditions; limiting the
66	number of trustees of a municipal police officers' pension
67	trust fund who may also be members of the plan; providing
68	duties of the board relating to the reporting of expenses
69	and the submission of a proposed administrative expense
70	budget; removing provisions to conform; amending s.
71	185.06, F.S.; revising requirements of the board relating
72	to the employment of legal counsel, actuaries, and other
73	advisers; amending s. 185.07, F.S.; removing an adjustment
74	requirement for member contribution rates to a retirement
75	plan for police officers; amending s. 185.16, F.S.;
76	revising requirements for retirement for police officers;
77	amending s. 185.18, F.S.; revising provisions relating to
78	the determination of disability for purposes of awarding
79	police officer retirement benefits; repealing s. 185.34,
80	F.S., relating to a presumption with respect to disability
81	in the line of duty; amending s. 185.35, F.S.; revising
82	provisions relating to benefits paid by a municipality
83	that has its own pension plan; amending s. 185.37, F.S.;
84	transferring certain powers and responsibilities from the
85	board of trustees to the municipalities relating to
86	termination of plans and distribution of funds; repealing
87	s. 185.38, F.S., relating to transfer to another state
88	retirement system and payment of benefits; creating s.
89	185.381, F.S.; providing for the payment of benefits under
90	another retirement system and the use of premium tax
91	moneys; repealing s. 185.39, F.S., relating to
92	applicability of ch. 185, F.S., relating to municipal
93	police pension plans; providing a declaration of important
94	state interest; providing an effective date.
95
96	Be It Enacted by the Legislature of the State of Florida:
97
98	Section 1.  Subsection (3) is added to section 112.65,
99	Florida Statutes, to read:
100	112.65  Limitation of benefits.-
101	(3)  LIMITATIONS ON RETIREMENT AGE, CREDIT RATE, AND
102	EMPLOYER CONTRIBUTIONS; TERMINATION OF DEFERRED RETIREMENT
103	OPTION PLANS.-Notwithstanding any other provision of law,
104	general or special, including, but not limited to, this chapter,
105	chapter 121, chapter 175, chapter 185, or any local ordinance or
106	resolution:
107	(a)  A public employee is not eligible for normal
108	retirement benefits under a public employer's retirement system
109	or plan until the employee attains age 55 and as further
110	specified or limited, including, but not limited to, a higher
111	minimum age, in the public employer's retirement system or plan.
112	(b)  Effective for fiscal years beginning after June 30,
113	2011, a public employer's defined benefit retirement system or
114	plan may not use a retirement credit rate multiplier greater
115	than 1.6 percent per year for future years of service for
116	current  or new plan participants. Current plan participants who
117	have accrued retirement credit rate multipliers greater than 1.6
118	percent per year for past service shall receive such greater
119	multipliers for the respective past service. In addition to a
120	defined benefit retirement system or plan, a public employer may
121	offer a defined contribution retirement system or plan to plan
122	participants in the defined benefit retirement system or plan.
123	However, plan participant contributions in the defined
124	contribution retirement system or plan must equal or exceed the
125	public employer's contributions to that system or plan.
126	(c)  A public employer is not and may not be required to
127	make a contribution to a public retirement system or plan that
128	exceeds 15 percent of the collective payroll for the
129	participants of the system or plan. For purposes of this
130	paragraph, the collective payroll for the participants of a
131	public retirement system or plan includes the costs of all
132	retirement or pension benefits, including all administrative and
133	other system or plan expenses, provided by the public employer
134	to the participants of the system or plan. If an actuarial
135	valuation or other report on a public retirement system or plan
136	indicates that the public employer's contribution to the system
137	or plan will exceed the limitation under this paragraph, the
138	public employer shall provide the participants of the system or
139	plan with 30 days within which to agree, by majority vote, to
140	require or increase participant contributions to the system or
141	plan to pay for any costs in excess of the limitation. After
142	that 30-day period or upon a vote of the participants not to pay
143	for the excess costs, the public employer shall unilaterally
144	decrease benefits in the system or plan to the extent that the
145	public employer's contribution does not exceed the limitation
146	under this paragraph.
147	(d)  Effective December 31, 2012, a public employer's
148	retirement system or plan may not provide a deferred retirement
149	option plan and participation in an existing deferred retirement
150	option plan shall cease and all participants in a deferred
151	retirement option plan shall receive their proper distribution
152	on or before December 31, 2012.
153	Section 2.  Paragraph (a) of subsection (22) and subsection
154	(24) of section 121.021, Florida Statutes, are amended to read:
155	121.021  Definitions.-The following words and phrases as
156	used in this chapter have the respective meanings set forth
157	unless a different meaning is plainly required by the context:
158	(22)  "Compensation" means the monthly salary paid a member
159	by his or her employer for work performed arising from that
160	employment.
161	(a)  Compensation includes shall include:
162	1.  Overtime payments paid from a salary fund.
163	2.  Accumulated annual leave payments.
164	3.  Payments in addition to the employee's base rate of pay
165	if all the following apply:
166	a.  The payments are paid according to a formal written
167	policy that applies to all eligible employees equally;
168	b.  The policy provides that payments shall commence no
169	later than the 11th year of employment;
170	c.  The payments are paid for as long as the employee
171	continues his or her employment; and
172	d.  The payments are paid at least annually.
173	4.  amounts withheld for tax sheltered annuities or
174	deferred compensation programs, or any other type of salary
175	reduction plan authorized under the Internal Revenue Code.
176	5.  Payments made in lieu of a permanent increase in the
177	base rate of pay, whether made annually or in 12 or 26 equal
178	payments within a 12-month period, when the member's base pay is
179	at the maximum of his or her pay range. When a portion of a
180	member's annual increase raises his or her pay range and the
181	excess is paid as a lump sum payment, such lump sum payment
182	shall be compensation for retirement purposes.
183	(24)  "Average final compensation" means the average of the
184	5 highest fiscal years of compensation for creditable service
185	prior to retirement, termination, or death. For in-line-of-duty
186	disability benefits, if less than 5 years of creditable service
187	have been completed, the term "average final compensation" means
188	the average annual compensation of the total number of years of
189	creditable service. Each year used in the calculation of average
190	final compensation shall commence on July 1.
191	(a)  The Average final compensation includes shall include:
192	1.  Accumulated annual leave payments, not to exceed 500
193	hours; and
194	2.  all payments defined as compensation in subsection
195	(22).
196	(b)  The Average final compensation does shall not include:
197	1.  Compensation paid to professional persons for special
198	or particular services;
199	2.  Payments for accumulated sick leave made due to
200	retirement or termination;
201	3.  Payments for accumulated annual leave in excess of 500
202	hours;
203	4.  Bonuses as defined in subsection (47);
204	5.  Third party payments made on and after July 1, 1990; or
205	6.  Fringe benefits (for example, automobile allowances or
206	housing allowances); or
207	7.  Overtime, unused leave, or any other compensation
208	beyond base hourly or annual salary, notwithstanding any other
209	provision of law, general or special, including, but not limited
210	to, this chapter, chapter 112, chapter 175, chapter 185, or any
211	local ordinance or resolution.
212	Section 3.  Section 121.024, Florida Statutes, is created
213	to read:
214	121.024  Application.-Notwithstanding any other provision
215	of law, s. 112.65 applies to this chapter and controls over any
216	conflicting provision of this chapter.
217	Section 4.  Subsection (5) of section 121.0515, Florida
218	Statutes, is amended to read:
219	121.0515  Special risk membership.-
220	(5)  CREDIT FOR PAST SERVICE.-A special risk member may
221	purchase retirement credit in the Special Risk Class based upon
222	past service, and may upgrade retirement credit for such past
223	service, to the extent of 2 percent of the member's average
224	monthly compensation as specified in s. 121.091(1)(a) for such
225	service as follows:
226	(a)  The member may purchase special risk credit for past
227	service with a city or special district that which has elected
228	to join the Florida Retirement System, or with a participating
229	agency to which a member's governmental unit was transferred,
230	merged, or consolidated, as provided in s. 121.081(1)(f), if the
231	member was employed with the city or special district at the
232	time it commenced participating in the Florida Retirement System
233	or with the governmental unit at the time of its transfer,
234	merger, or consolidation with the participating agency. The
235	service must satisfy the criteria set forth in subsection (2)
236	for special risk membership as a law enforcement officer,
237	firefighter, or correctional officer; however, a no certificate
238	or waiver of certificate of compliance with s. 943.1395 or s.
239	633.35 is not shall be required for such service.
240	(b)  Contributions for upgrading the first 2 percent of the
241	member's average monthly compensation for the additional special
242	risk credit pursuant to this subsection shall be equal to the
243	difference in the contributions paid and the special risk
244	percentage rate of gross salary in effect at the time of
245	purchase for the period being claimed, plus interest thereon at
246	the rate of 4 percent a year compounded annually from the date
247	of such service until July 1, 1975, and 6.5 percent a year
248	thereafter until the date of payment. This Past service may be
249	purchased by the member or by the employer on behalf of the
250	member.
251	(c)  Contributions for upgrading additional special risk
252	credit greater than 2 percent but not exceeding 3 percent of the
253	member's average monthly compensation must be in an amount
254	representing the actuarial accrued liability for the difference
255	in accrual value during the period of service for which credit
256	is being purchased. Contributions shall be calculated by an
257	actuary designated by the department using the discount rate and
258	other relevant actuarial assumptions used to value the Florida
259	Retirement System defined benefit plan liabilities in the most
260	recent actuarial valuation. The contribution for service credit
261	being purchased must be paid by the member or by the employer on
262	behalf of the member immediately upon notification by the
263	division.
264	Section 5.  Section 175.021, Florida Statutes, is amended
265	to read:
266	175.021  Legislative declaration.-
267	(1)  It is hereby declared by the Legislature that
268	firefighters, as hereinafter defined, perform state and
269	municipal functions; that it is their duty to extinguish fires,
270	to protect life, and to protect property at their own risk and
271	peril; that it is their duty to prevent conflagration and to
272	continuously instruct school personnel, public officials, and
273	private citizens in the prevention of fires and firesafety; that
274	they protect both life and property from local emergencies as
275	defined in s. 252.34(3); and that their activities are vital to
276	the public safety. It is further declared that firefighters
277	employed by special fire control districts serve under the same
278	circumstances and perform the same duties as firefighters
279	employed by municipalities and should therefore be entitled to
280	the benefits available under this chapter. Therefore, the
281	Legislature declares that it is a proper and legitimate state
282	purpose to provide a uniform retirement system for the benefit
283	of firefighters as hereinafter defined and intends, in
284	implementing the provisions of s. 14, Art. X of the State
285	Constitution as they relate to municipal and special district
286	firefighters' pension trust fund systems and plans, that such
287	retirement systems or plans be managed, administered, operated,
288	and funded in such manner as to maximize the protection of the
289	firefighters' pension trust funds. Pursuant to s. 18, Art. VII
290	of the State Constitution, the Legislature hereby determines and
291	declares that the provisions of this act fulfill an important
292	state interest.
293	(2)  This chapter hereby establishes, for all municipal and
294	special district pension plans existing now or hereafter under
295	this chapter, including chapter plans and local law plans,
296	minimum benefits and minimum standards for the operation and
297	funding of such plans, hereinafter referred to as firefighters'
298	pension trust funds. The minimum benefits and minimum standards
299	set forth in this chapter may not be diminished by local
300	charter, ordinance, or resolution or by special act of the
301	Legislature, nor may the minimum benefits or minimum standards
302	be reduced or offset by any other local, state, or federal law
303	that may include firefighters in its operation, except as
304	provided under s. 112.65.
305	Section 6.  Subsections (3), (11), and (17) of section
306	175.032, Florida Statutes, are amended to read:
307	175.032  Definitions.-For any municipality, special fire
308	control district, chapter plan, local law municipality, local
309	law special fire control district, or local law plan under this
310	chapter, the following words and phrases have the following
311	meanings:
312	(3)  "Compensation" or "salary" means the fixed monthly
313	remuneration paid a firefighter; where, as in the case of a
314	volunteer firefighter, remuneration is based on actual services
315	rendered, the term means the total cash remuneration received
316	yearly for such services, prorated on a monthly basis. Overtime
317	compensation, unused leave, or any other form of compensation
318	beyond base hourly or annual salary may not be included when
319	calculating the member's compensation or salary.
320	(a)  A retirement trust fund or plan may use a definition
321	of salary other than the definition in this subsection but only
322	if the monthly retirement income payable to each firefighter
323	covered by the retirement trust fund or plan, as determined
324	under s. 175.162(2)(a) and using such other definition, equals
325	or exceeds the monthly retirement income that would be payable
326	to each firefighter if his or her monthly retirement income were
327	determined under s. 175.162(2)(a) and using the definition in
328	this subsection.
329	(b)  Any retirement trust fund or plan which now or
330	hereafter meets the requirements of this chapter shall not,
331	solely by virtue of this subsection, reduce or diminish the
332	monthly retirement income otherwise payable to each firefighter
333	covered by the retirement trust fund or plan.
334	(c)  The member's compensation or salary contributed as
335	employee-elective salary reductions or deferrals to any salary
336	reduction, deferred compensation, or tax-sheltered annuity
337	program authorized under the Internal Revenue Code shall be
338	deemed to be the compensation or salary the member would receive
339	if he or she were not participating in such program and shall be
340	treated as compensation for retirement purposes under this
341	chapter.
342	(b)(d)  For any person who first becomes a member in any
343	plan year beginning on or after January 1, 1996, compensation
344	for any plan year shall not include any amounts in excess of the
345	Internal Revenue Code s. 401(a)(17) limitation (as amended by
346	the Omnibus Budget Reconciliation Act of 1993), which limitation
347	of $150,000 shall be adjusted as required by federal law for
348	qualified government plans and shall be further adjusted for
349	changes in the cost of living in the manner provided by Internal
350	Revenue Code s. 401(a)(17)(B). For any person who first became a
351	member prior to the first plan year beginning on or after
352	January 1, 1996, the limitation on compensation shall be not
353	less than the maximum compensation amount that was allowed to be
354	taken into account under the plan as in effect on July 1, 1993,
355	which limitation shall be adjusted for changes in the cost of
356	living since 1989 in the manner provided by Internal Revenue
357	Code s. 401(a)(17)(1991).
358	(11)  "Local law plan" means a defined benefit pension plan
359	for firefighters, or for firefighters or police officers where
360	included, as described in s. 175.351, established by municipal
361	ordinance, special district resolution, or special act of the
362	Legislature, which enactment sets forth all plan provisions.
363	Local law plan provisions may vary from the provisions of this
364	chapter, provided that required minimum benefits and minimum
365	standards are met. Any such variance shall provide a greater
366	benefit for firefighters. Actuarial valuations of local law
367	plans shall be conducted by an enrolled actuary as provided in
368	s. 175.261(2).
369	(17)  "Supplemental plan" means a plan to which deposits
370	are made to provide extra benefits for firefighters, or for
371	firefighters and police officers where included under this
372	chapter. Such a plan is an element of a local law plan and
373	exists in conjunction with a defined benefit plan that meets the
374	minimum benefits and minimum standards of this chapter.
375	Section 7.  Section 175.033, Florida Statutes, is created
376	to read:
377	175.033  Application.-Notwithstanding any other provision
378	of law, s. 112.65 applies to this chapter and controls over any
379	conflicting provision of this chapter.
380	Section 8.  Subsections (3) and (4) of section 175.041,
381	Florida Statutes, are amended to read:
382	175.041  Firefighters' Pension Trust Fund created;
383	applicability of provisions.-For any municipality, special fire
384	control district, chapter plan, local law municipality, local
385	law special fire control district, or local law plan under this
386	chapter:
387	(3)  The provisions of This chapter applies shall apply
388	only to municipalities organized and established pursuant to law
389	the laws of the state and to special fire control districts.
390	This chapter does, and said provisions shall not apply to the
391	unincorporated areas of any county or counties, except with
392	respect to special fire control districts that include
393	unincorporated areas, or nor shall the provisions hereof apply
394	to any governmental entity whose firefighters are eligible to
395	participate in the Florida Retirement System, except as provided
396	in s. 175.351(5) or s. 175.372.
397	(a)  Special fire control districts that include, or
398	consist exclusively of, unincorporated areas of one or more
399	counties may levy and impose the tax and participate in the
400	retirement programs enabled by this chapter.
401	(b)  With respect to the distribution of premium taxes, a
402	single consolidated government consisting of a former county and
403	one or more municipalities, consolidated pursuant to s. 3 or s.
404	6(e), Art. VIII of the State Constitution, may is also eligible
405	to participate under this chapter. The consolidated government
406	shall notify the division when it has entered into an interlocal
407	agreement to provide fire services to a municipality within its
408	boundaries. The municipality may enact an ordinance levying the
409	tax as provided in s. 175.101. Upon being provided copies of the
410	interlocal agreement and the municipal ordinance levying the
411	tax, the division may distribute any premium taxes reported for
412	the municipality to the consolidated government as long as the
413	interlocal agreement is in effect.
414	(c)  Any municipality that has entered into an interlocal
415	agreement to provide fire protection services to any other
416	incorporated municipality, in its entirety, for a period of 12
417	months or more may be eligible to receive the premium taxes
418	reported for such other municipality. In order To be eligible
419	for such premium taxes, the municipality providing the fire
420	services must notify the division that it has entered into an
421	interlocal agreement with another municipality. The municipality
422	receiving the fire services may enact an ordinance levying the
423	tax as provided in s. 175.101. Upon being provided copies of the
424	interlocal agreement and the municipal ordinance levying the
425	tax, the division may distribute any premium taxes reported for
426	the municipality receiving the fire services to the
427	participating municipality providing the fire services as long
428	as the interlocal agreement is in effect.
429	(4)  No municipality shall establish more than one
430	retirement plan for public safety officers which is supported in
431	whole or in part by the distribution of premium tax funds as
432	provided by this chapter or chapter 185, nor shall any
433	municipality establish a retirement plan for public safety
434	officers which receives premium tax funds from both this chapter
435	and chapter 185.
436	Section 9.  Subsection (1) of section 175.061, Florida
437	Statutes, is amended to read:
438	175.061  Board of trustees; members; terms of office;
439	meetings; legal entity; costs; attorney's fees.-For any
440	municipality, special fire control district, chapter plan, local
441	law municipality, local law special fire control district, or
442	local law plan under this chapter:
443	(1)  In each municipality and in each special fire control
444	district there is hereby created a board of trustees of the
445	firefighters' pension trust fund, which shall be solely
446	responsible for administering the trust fund. Effective October
447	1, 1986, and thereafter:
448	(a)  The membership of the board of trustees for a chapter
449	plan consists of five members, two of whom, unless otherwise
450	prohibited by law, must be legal residents of the municipality
451	or special fire control district and must be appointed by the
452	governing body of the municipality or special fire control
453	district, and two of whom must be full-time firefighters as
454	defined in s. 175.032 who are elected by a majority of the
455	active firefighters who are members of such plan. With respect
456	to any chapter plan or local law plan that, on January 1, 1997,
457	allowed retired firefighters to vote in such elections, retirees
458	may continue to vote in such elections. The fifth member shall
459	be chosen by a majority of the previous four members as provided
460	herein, and such person's name shall be submitted to the
461	governing body of the municipality or special fire control
462	district. Upon receipt of the fifth person's name, the governing
463	body of the municipality or special fire control district shall,
464	as a ministerial duty, appoint such person to the board of
465	trustees. The fifth member shall have the same rights as each of
466	the other four members, shall serve as trustee for a period of 2
467	years, and may succeed himself or herself in office. Each
468	resident member shall serve as trustee for a period of 2 years,
469	unless sooner replaced by the governing body at whose pleasure
470	he or she serves, and may succeed himself or herself as a
471	trustee. Each firefighter member shall serve as trustee for a
472	period of 2 years, unless he or she sooner leaves the employment
473	of the municipality or special fire control district as a
474	firefighter, whereupon a successor shall be chosen in the same
475	manner as an original appointment. Each firefighter may succeed
476	himself or herself in office. The terms of office of the
477	appointed and elected members may be amended by municipal
478	ordinance, special act of the Legislature, or resolution adopted
479	by the governing body of the special fire control district to
480	extend the terms from 2 years to 4 years. The length of the
481	terms of office shall be the same for all board members.
482	(b)  The membership of boards of trustees for local law
483	plans shall be as follows:
484	1.  If a municipality or special fire control district has
485	a pension plan for firefighters only, the provisions of
486	paragraph (a) shall apply.
487	2.  If a municipality has a pension plan for firefighters
488	and police officers, the provisions of paragraph (a) shall
489	apply, except that one member of the board shall be a
490	firefighter as defined in s. 175.032 and one member of the board
491	shall be a police officer as defined in s. 185.02, respectively
492	elected by a majority of the active firefighters or police
493	officers who are members of the plan.
494	3.  Any board of trustees operating a local law plan on
495	July 1, 1999, which is combined with a plan for general
496	employees shall hold an election of the firefighters, or
497	firefighters and police officers, if included, to determine
498	whether a plan is to be established for firefighters only, or
499	for firefighters and police officers where included. Based on
500	the election results, a new board shall be established as
501	provided in subparagraph 1. or subparagraph 2., as appropriate.
502	The municipality or fire control district shall enact an
503	ordinance or resolution to implement the new board by October 1,
504	1999. The newly established board shall take whatever action is
505	necessary to determine the amount of assets which is
506	attributable to firefighters, or firefighters and police
507	officers where included. Such assets shall include all employer,
508	employee, and state contributions made by or on behalf of
509	firefighters, or firefighters and police officers where
510	included, and any investment income derived from such
511	contributions. All such moneys shall be transferred into the
512	newly established retirement plan, as directed by the board.
513
514	With respect to any board of trustees operating a local law plan
515	on June 30, 1986, nothing in this paragraph does not shall
516	permit the reduction of the membership percentage of
517	firefighters, or of firefighters and police officers where a
518	joint or mixed fund exists. A municipality may change the
519	municipal representation on the board of trustees operating a
520	local law plan by ordinance if the change does not reduce the
521	membership percentage of firefighters, or firefighters and
522	police officers, that existed on June 30, 1986.
523	(c)  A majority of the members of a board of trustees may
524	not be members or retirees of the plan for which the board is
525	administering the trust fund.
526	(d)  The board of trustees shall:
527	1.  Provide a detailed accounting report of its expenses
528	for each fiscal year to the plan sponsor and the Department of
529	Management Services and shall make the report available to every
530	member of the plan. The report must include, but need not be
531	limited to, all administrative expenses, which for purposes of
532	this subparagraph are all expenses relating to any legal
533	counsel, actuary, plan administrator, and all other consultants,
534	and all travel and other expenses paid to or on behalf of the
535	members of the board of trustees or anyone else on behalf of the
536	plan.
537	2.  Submit its proposed administrative expense budget for
538	each fiscal year at least 120 days before the beginning of the
539	fiscal year to the plan sponsor for review and modification. The
540	administrative expense budget is effective only upon approval by
541	the plan sponsor and must regulate the administrative expenses
542	of the board of trustees. The board of trustees may not amend
543	the budget without the prior approval of the plan sponsor.
544	(c)  Whenever the active firefighter membership of a closed
545	chapter plan or closed local law plan as provided in s. 175.371
546	falls below 10, an active firefighter member seat may be held by
547	either a retired member or an active firefighter member of the
548	plan who is elected by the active and retired members of the
549	plan. If there are no active or retired firefighters remaining
550	in the plan or capable of serving, the remaining board members
551	may elect an individual to serve in the active firefighter seat.
552	Upon receipt of such person's name, the legislative body of the
553	municipality or special fire control district shall, as a
554	ministerial duty, appoint such person to the board of trustees.
555	This paragraph applies only to those plans that are closed to
556	new members under s. 175.371(2), and does not apply to any other
557	municipality or fire control district having a chapter or local
558	law plan.
559	Section 10.  Subsection (7) of section 175.071, Florida
560	Statutes, is amended to read:
561	175.071  General powers and duties of board of trustees.-
562	For any municipality, special fire control district, chapter
563	plan, local law municipality, local law special fire control
564	district, or local law plan under this chapter:
565	(7)  To assist the board in meeting its responsibilities
566	under this chapter, the board, if it so elects, and subject to
567	s. 175.061(1)(d), may:
568	(a)  Employ independent legal counsel at the pension fund's
569	expense.
570	(b)  Employ an independent actuary, as defined in s.
571	175.032(7), at the pension fund's expense.
572	(c)  Employ such independent professional, technical, or
573	other advisers as it deems necessary at the pension fund's
574	expense.
575
576	If the board chooses to use the municipality's or special
577	district's legal counsel or actuary, or chooses to use any of
578	the municipality's or special district's other professional,
579	technical, or other advisers, it must do so only under terms and
580	conditions acceptable to the board.
581	Section 11.  Paragraph (b) of subsection (2) of section
582	175.091, Florida Statutes, is amended to read:
583	175.091  Creation and maintenance of fund.-For any
584	municipality, special fire control district, chapter plan, local
585	law municipality, local law special fire control district, or
586	local law plan under this chapter:
587	(2)  Member contribution rates may be adjusted as follows:
588	(b)  Firefighter member contributions may be increased by
589	consent of the members' collective bargaining representative or,
590	if none, by majority consent of firefighter members of the fund
591	to provide greater benefits.
592
593	Nothing in this section shall be construed to require adjustment
594	of member contribution rates in effect on the date this act
595	becomes a law, including rates that exceed 5 percent of salary,
596	provided that such rates are at least one-half of 1 percent of
597	salary.
598	Section 12.  Section 175.162, Florida Statutes, is amended
599	to read:
600	175.162  Requirements for retirement.-For any municipality,
601	special fire control district, chapter plan, local law
602	municipality, local law special fire control district, or local
603	law plan under this chapter, any firefighter who completes 10 or
604	more years of creditable service as a firefighter and attains
605	age 55, or completes 25 years of creditable service as a
606	firefighter and attains age 52, and who for such minimum period
607	has been a member of the firefighters' pension trust fund
608	operating under a chapter plan or local law plan, is eligible
609	for normal retirement benefits. Normal retirement under the plan
610	is retirement from the service of the municipality or special
611	fire control district on or after the normal retirement date. In
612	such event, payment of retirement income will be governed by the
613	following provisions of this section:
614	(1)  The normal retirement date of each firefighter will be
615	the first day of the month coincident with or next following the
616	date on which he or she has completed 10 or more years of
617	creditable service and attained age 55 or completed 25 years of
618	creditable service and attained age 52.
619	(2)(a)  Except as provided in s. 112.65(3)(b), the amount
620	of monthly retirement income payable to a full-time firefighter
621	who retires on or after his or her normal retirement date shall
622	be an amount equal to the number of his or her years of credited
623	service multiplied by 2 percent of his or her average final
624	compensation as a full-time firefighter. However, if current
625	state contributions pursuant to this chapter are not adequate to
626	fund the additional benefits to meet the minimum requirements in
627	this chapter, only such incremental increases shall be required
628	as state moneys are adequate to provide. Such increments shall
629	be provided as state moneys become available.
630	(b)  Except as provided in s. 112.65(3)(b), the amount of
631	monthly retirement income payable to a volunteer firefighter who
632	retires on or after his or her normal retirement date shall be
633	an amount equal to the number of his or her years of credited
634	service multiplied by 2 percent of his or her average final
635	compensation as a volunteer firefighter.
636	(3)  The monthly retirement income payable in the event of
637	normal retirement will be payable on the first day of each
638	month. The first payment will be made on the firefighter's
639	normal retirement date, or on the first day of the month
640	coincident with or next following his or her actual retirement,
641	if later, and the last payment will be the payment due next
642	preceding the firefighter's death; except that, in the event the
643	firefighter dies after retirement but before he or she has
644	received retirement benefits for a period of 10 years, the same
645	monthly benefit will be paid to the beneficiary (or
646	beneficiaries) as designated by the firefighter for the balance
647	of such 10-year period. If a firefighter continues in the
648	service of the municipality or special fire control district
649	beyond his or her normal retirement date and dies prior to his
650	or her date of actual retirement, without an option made
651	pursuant to s. 175.171 being in effect, monthly retirement
652	income payments will be made for a period of 10 years to a
653	beneficiary (or beneficiaries) designated by the firefighter as
654	if the firefighter had retired on the date on which his or her
655	death occurred.
656	(4)  Early retirement under the plan is retirement from the
657	service of the municipality or special fire control district,
658	with the consent of the municipality or special fire control
659	district, as of the first day of any calendar month which is
660	prior to the firefighter's normal retirement date but subsequent
661	to the date as of which he or she has both attained the age of
662	50 years and has been a member of this fund for 10 continuous
663	years. In the event of early retirement, payment of retirement
664	income shall be governed as follows: The monthly amount of
665	retirement income payable to a firefighter who retires prior to
666	his or her normal retirement date shall be in the amount
667	computed as described in subsection (2), taking into account the
668	firefighter's credited service to his or her date of actual
669	retirement and final monthly compensation as of such date, such
670	amount of retirement income to be actuarially reduced to take
671	into account the firefighter's younger age and the earlier
672	commencement of retirement income benefits. The amount of
673	monthly income payable in the event of early retirement will be
674	paid in the same manner as in subsection (3). In no event shall
675	The early retirement reduction shall be 5 exceed 3 percent for
676	each year by which the member's age at retirement preceded the
677	member's normal retirement age, as provided in subsection (1).
678	Section 13.  Subsections (2), (4), (6), and (7) of section
679	175.191, Florida Statutes, are amended to read:
680	175.191  Disability retirement.-For any municipality,
681	special fire control district, chapter plan, local law
682	municipality, local law special fire control district, or local
683	law plan under this chapter:
684	(2)  A firefighter will be considered totally disabled if,
685	in the opinion of the board of trustees and the employer, he or
686	she is wholly prevented from rendering useful and efficient
687	service as an employee a firefighter; and a firefighter will be
688	considered permanently disabled if, in the opinion of the board
689	of trustees and the employer, he or she is likely to remain so
690	disabled continuously and permanently from a cause other than is
691	specified in subsection (3).
692	(4)  A No firefighter is not shall be permitted to retire
693	under the provisions of this section until he or she is examined
694	by a duly qualified physician or surgeon, to be selected by the
695	board of trustees and the employer for that purpose, and is
696	found to be disabled in the degree and in the manner specified
697	in this section. Any firefighter retiring under this section may
698	be examined periodically by a duly qualified physician or
699	surgeon or board of physicians and surgeons, to be selected by
700	the board of trustees or the employer for that purpose, to
701	determine if such disability has ceased to exist.
702	(6)  The monthly retirement income to which a firefighter
703	is entitled in the event of his or her disability retirement
704	shall be payable on the first day of the first month after the
705	board of trustees and the employer determine determines such
706	entitlement. However, the monthly retirement income shall be
707	payable as of the date the board and the employer determine
708	determines such entitlement, and any portion due for a partial
709	month shall be paid together with the first payment. The last
710	payment will be, if the firefighter recovers from the
711	disability, the payment due next preceding the date of such
712	recovery or, if the firefighter dies without recovering from the
713	disability, the payment due next preceding his or her death or
714	the 120th monthly payment, whichever is later. In lieu of the
715	benefit payment as provided in this subsection paragraph, a
716	firefighter may select an optional form as provided in s.
717	175.171. Any monthly retirement income payments due after the
718	death of a disabled firefighter shall be paid to the
719	firefighter's designated beneficiary (or beneficiaries) as
720	provided in ss. 175.181 and 175.201.
721	(7)  If the board of trustees or the employer finds that a
722	firefighter who is receiving a disability retirement income is
723	no longer disabled, as provided in this section herein, the
724	board of trustees or the employer shall direct that the
725	disability retirement income be discontinued. "Recovery from
726	disability" as used in this section herein means the ability of
727	the firefighter to render useful and efficient service as an
728	employee a firefighter.
729	Section 14.  Section 175.231, Florida Statutes, is
730	repealed.
731	Section 15.  Section 175.351, Florida Statutes, is amended
732	to read:
733	175.351  Municipalities and special fire control districts
734	having their own pension plans for firefighters.-For any
735	municipality, special fire control district, local law
736	municipality, local law special fire control district, or local
737	law plan under this chapter, in order for municipalities and
738	special fire control districts with their own pension plans for
739	firefighters, or for firefighters and police officers, where
740	included, to participate in the distribution of the tax fund
741	established pursuant to s. 175.101, local law plans must provide
742	a benefit or benefits within those pension plans for
743	firefighters, or for firefighters and police officers where
744	included, which are equal to or greater than the pension
745	benefits provided to general employees of the municipality or
746	special fire control district, regardless of when such
747	additional or greater benefit was or is provided meet the
748	minimum benefits and minimum standards set forth in this
749	chapter.
750	(1)  PREMIUM TAX INCOME.-If a municipality has a pension
751	plan for firefighters, or a pension plan for firefighters and
752	police officers, where included, which in the opinion of the
753	division meets the minimum benefits and minimum standards set
754	forth in this chapter, the board of trustees of the pension
755	plan, as approved by a majority of firefighters of the
756	municipality, may:
757	(a)  Place the income from the premium tax in s. 175.101 in
758	such pension plan for the sole and exclusive use of its
759	firefighters, or for firefighters and police officers, where
760	included, where it shall become an integral part of that pension
761	plan and shall be used to pay extra benefits to the firefighters
762	included in that pension plan; or
763	(b)  Place the income from the premium tax in s. 175.101 in
764	a separate supplemental plan to pay extra benefits to
765	firefighters, or to firefighters and police officers where
766	included, participating in such separate supplemental plan. The
767	premium tax provided by this chapter must shall in all cases be
768	used in its entirety to provide extra benefits to firefighters,
769	or to firefighters and police officers, where included.
770	Notwithstanding any other provision of this chapter However,
771	local law plans in effect on or after October 1, 1998, may shall
772	be required to comply with the minimum benefit provisions of
773	this chapter by providing pension benefits that, in the
774	aggregate, exceed the minimum benefits set forth in this chapter
775	as determined by the plan's actuary only to the extent that
776	additional premium tax revenues become available to
777	incrementally fund the cost of such compliance as provided in s.
778	175.162(2)(a). When a plan is in compliance with such minimum
779	benefit provisions, as subsequent additional premium tax
780	revenues become available, they shall be used to provide extra
781	benefits. For the purpose of this chapter, "additional premium
782	tax revenues" means revenues received by a municipality or
783	special fire control district pursuant to s. 175.121 which
784	exceed that amount received for calendar year 1997, and the term
785	"extra benefits" means benefits in addition to or greater than
786	those provided to general employees of the municipality and in
787	addition to those in existence for firefighters on March 12,
788	1999. Local law plans created by special act before May 23,
789	1939, are shall be deemed to comply with this chapter.
790	(2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.- A No
791	retirement plan or amendment to a retirement plan may not shall
792	be proposed for adoption unless the proposed plan or amendment
793	contains an actuarial estimate of the costs involved. The No
794	such proposed plan or proposed plan change may not shall be
795	adopted without the approval of the municipality, special fire
796	control district, and or, if required where permitted, the
797	Legislature. Copies of the proposed plan or proposed plan change
798	and the actuarial impact statement of the proposed plan or
799	proposed plan change shall be furnished to the division prior to
800	the last public hearing thereon. The impact Such statement must
801	shall also indicate whether the proposed plan or proposed plan
802	change is in compliance with s. 14, Art. X of the State
803	Constitution and those provisions of part VII of chapter 112
804	which are not expressly provided in this chapter.
805	Notwithstanding any other provision, only those local law plans
806	created by special act of legislation before prior to May 23,
807	1939, are shall be deemed to meet the minimum benefits and
808	minimum standards only in this chapter.
809	(3)  Notwithstanding any other provision, with respect to a
810	any supplemental plan municipality:
811	(a)  Section 175.032(3)(a) does shall not apply, and a
812	local law plan and a supplemental plan may continue to use their
813	definition of compensation or salary in existence on March 12,
814	1999 the effective date of this act.
815	(b)  Section 175.061(1)(b) does shall not apply, and a
816	local law plan and a supplemental plan shall continue to be
817	administered by a board or boards of trustees numbered,
818	constituted, and selected as the board or boards were numbered,
819	constituted, and selected on December 1, 2000.
820	(c)  The election set forth in paragraph (1)(b) shall be
821	deemed to have been made.
822	(4)  The retirement plan setting forth the benefits and the
823	trust agreement, if any, covering the duties and
824	responsibilities of the trustees and the regulations of the
825	investment of funds must be in writing, and copies thereof must
826	be made available to the participants and to the general public.
827	(5)  A municipality or special fire control district may
828	unilaterally establish one or more new plans, or benefit levels
829	within a plan, which provide different benefit levels for plan
830	members based on the member's date of hire if the new plan or
831	benefit level provides pension benefits that, in the aggregate,
832	meet or exceed the minimum benefits set forth in this chapter,
833	as determined by the plan's or employer's actuary. A
834	municipality or special fire control district may unilaterally
835	elect to maintain an existing plan and join the Florida
836	Retirement System for employees hired after a specified date. A
837	municipality or special fire control district choosing to
838	operate under this subsection shall use the premium tax provided
839	under this chapter for the current plan or benefit level, for
840	any additional plan or benefit level, or for contributions to
841	the Florida Retirement System.
842	Section 16.  Section 175.361, Florida Statutes, is amended
843	to read:
844	175.361  Termination of plan and distribution of fund.-For
845	any municipality, special fire control district, chapter plan,
846	local law municipality, local law special fire control district,
847	or local law plan under this chapter, the plan may be terminated
848	by the municipality or special fire control district. Upon
849	termination of the plan by the municipality or special fire
850	control district for any reason or because of a transfer,
851	merger, or consolidation of governmental units, services, or
852	functions as provided in chapter 121, or upon written notice by
853	the municipality or special fire control district to the board
854	of trustees that contributions under the plan are being
855	permanently discontinued, the rights of all employees to
856	benefits accrued to the date of such termination and the amounts
857	credited to the employees' accounts are nonforfeitable. The fund
858	shall be distributed in accordance with the following
859	procedures:
860	(1)  The municipality or special fire control district
861	board of trustees shall determine the date of distribution and
862	the asset value required to fund all the nonforfeitable benefits
863	after taking into account the expenses of such distribution. The
864	board shall inform the municipality or special fire control
865	district shall determine if additional assets are required, in
866	which event the municipality or special fire control district
867	shall continue to financially support the plan until all
868	nonforfeitable benefits have been funded.
869	(2)  The municipality or special fire control district
870	board of trustees shall determine the method of distribution of
871	the asset value, whether distribution shall be by payment in
872	cash, by the maintenance of another or substituted trust fund,
873	by the purchase of insured annuities, or otherwise, for each
874	firefighter entitled to benefits under the plan as specified in
875	subsection (3).
876	(3)  The municipality or special fire control district
877	board of trustees shall distribute the asset value as of the
878	date of termination in the manner set forth in this subsection,
879	on the basis that the amount required to provide any given
880	retirement income is the actuarially computed single-sum value
881	of such retirement income, except that if the method of
882	distribution determined under subsection (2) involves the
883	purchase of an insured annuity, the amount required to provide
884	the given retirement income is the single premium payable for
885	such annuity. The actuarial single-sum value may not be less
886	than the employee's accumulated contributions to the plan, with
887	interest if provided by the plan, less the value of any plan
888	benefits previously paid to the employee.
889	(4)  If there is asset value remaining after the full
890	distribution specified in subsection (3), and after the payment
891	of any expenses incurred with such distribution, such excess
892	shall be returned to the municipality or special fire control
893	district, less return to the state of the state's contributions,
894	provided that, if the excess is less than the total
895	contributions made by the municipality or special fire control
896	district and the state to date of termination of the plan, such
897	excess shall be divided proportionately to the total
898	contributions made by the municipality or special fire control
899	district and the state.
900	(5)  The municipality or special fire control district
901	board of trustees shall distribute, in accordance with
902	subsection (2), the amounts determined under subsection (3).
903
904	If, after 24 months after the date the plan terminated or the
905	date the board received written notice that the contributions
906	thereunder were being permanently discontinued, the municipality
907	or special fire control district or the board of trustees of the
908	firefighters' pension trust fund affected has not complied with
909	all the provisions in this section, the Department of Management
910	Services shall effect the termination of the fund in accordance
911	with this section.
912	Section 17.  Section 175.371, Florida Statutes, is
913	repealed.
914	Section 18.  Section 175.372, Florida Statutes, is created
915	to read:
916	175.372  Benefits under another retirement system or
917	pension program.-For any municipality, special fire control
918	district, chapter plan, local law municipality, local law
919	special fire control district, or local law plan under this
920	chapter:
921	(1)  A firefighter who has a vested right to benefits under
922	the pension plan may not receive a benefit under a new
923	retirement system or pension program for any period of service
924	for which benefits are being paid pursuant to the pension plan
925	subject to this chapter.
926	(2)  If a municipality or special fire control district
927	unilaterally chooses to create or transfer to another retirement
928	system or pension program, including, but not limited to, a
929	defined contribution program, for all or a portion of its active
930	firefighters who are in a pension plan subject to this chapter,
931	or for firefighters hired after a date certain, the municipality
932	or special fire control district shall continue to receive state
933	premium tax moneys and must use those funds to fund a
934	preexisting plan subject to this chapter or to reduce the
935	required contributions of the municipality or special fire
936	control district to the new retirement system or pension
937	program. A new retirement system or pension program shall
938	provide for disability retirement for firefighters who suffer
939	total and permanent disabilities in the line of duty, as
940	determined by the employer under the definitions of and a
941	process similar to the process in s. 175.191, and the monthly
942	benefit shall be the accrued retirement benefit under the plan
943	or system, but the benefit shall provide not less than an amount
944	equal to 42 percent of the firefighter's average monthly
945	compensation at the time of the disability for the life of the
946	firefighter or until the firefighter recovers from the
947	disability, as determined by the employer.
948	Section 19.  Section 175.381, Florida Statutes, is
949	repealed.
950	Section 20.  Section 185.01, Florida Statutes, is amended
951	to read:
952	185.01  Legislative declaration.-
953	(1)  It is hereby found and declared by the Legislature
954	that police officers as hereinafter defined perform both state
955	and municipal functions; that they make arrests for violations
956	of state traffic laws on public highways; that they keep the
957	public peace; that they conserve both life and property; and
958	that their activities are vital to public welfare of this state.
959	Therefore the Legislature declares that it is a proper and
960	legitimate state purpose to provide a uniform retirement system
961	for the benefit of police officers as hereinafter defined and
962	intends, in implementing the provisions of s. 14, Art. X of the
963	State Constitution as they relate to municipal police officers'
964	retirement trust fund systems and plans, that such retirement
965	systems or plans be managed, administered, operated, and funded
966	in such manner as to maximize the protection of police officers'
967	retirement trust funds. Therefore, the Legislature hereby
968	determines and declares that the provisions of this act fulfill
969	an important state interest.
970	(2)  This chapter hereby establishes, for all municipal
971	pension plans now or hereinafter provided for under this
972	chapter, including chapter plans and local law plans, minimum
973	benefits and minimum standards for the operation and funding of
974	such plans, hereinafter referred to as municipal police
975	officers' retirement trust funds. The minimum benefits and
976	minimum standards set forth in this chapter may not be
977	diminished by local ordinance or by special act of the
978	Legislature, nor may the minimum benefits or minimum standards
979	be reduced or offset by any other local, state, or federal plan
980	that may include police officers in its operation, except as
981	provided under s. 112.65.
982	Section 21.  Subsections (4), (10), and (15) of section
983	185.02, Florida Statutes, are amended to read:
984	185.02  Definitions.-For any municipality, chapter plan,
985	local law municipality, or local law plan under this chapter,
986	the following words and phrases as used in this chapter shall
987	have the following meanings, unless a different meaning is
988	plainly required by the context:
989	(4)  "Compensation" or "salary" means the fixed monthly
990	total cash remuneration including "overtime" paid by the primary
991	employer to a police officer for services rendered, but not
992	including any payments for extra duty or a special detail work
993	performed on behalf of a second party employer, any overtime,
994	unused leave, or any other compensation beyond base hourly or
995	annual salary. However, a local law plan may limit the amount of
996	overtime payments which can be used for retirement benefit
997	calculation purposes, but in no event shall such overtime limit
998	be less than 300 hours per officer per calendar year.
999	(a)  Any retirement trust fund or plan which now or
1000	hereafter meets the requirements of this chapter shall not,
1001	solely by virtue of this subsection, reduce or diminish the
1002	monthly retirement income otherwise payable to each police
1003	officer covered by the retirement trust fund or plan.
1004	(b)  The member's compensation or salary contributed as
1005	employee-elective salary reductions or deferrals to any salary
1006	reduction, deferred compensation, or tax-sheltered annuity
1007	program authorized under the Internal Revenue Code shall be
1008	deemed to be the compensation or salary the member would receive
1009	if he or she were not participating in such program and shall be
1010	treated as compensation for retirement purposes under this
1011	chapter.
1012	(b)(c)  For any person who first becomes a member in any
1013	plan year beginning on or after January 1, 1996, compensation
1014	for any plan year shall not include any amounts in excess of the
1015	Internal Revenue Code s. 401(a)(17) limitation (as amended by
1016	the Omnibus Budget Reconciliation Act of 1993), which limitation
1017	of $150,000 shall be adjusted as required by federal law for
1018	qualified government plans and shall be further adjusted for
1019	changes in the cost of living in the manner provided by Internal
1020	Revenue Code s. 401(a)(17)(B). For any person who first became a
1021	member prior to the first plan year beginning on or after
1022	January 1, 1996, the limitation on compensation shall be not
1023	less than the maximum compensation amount that was allowed to be
1024	taken into account under the plan as in effect on July 1, 1993,
1025	which limitation shall be adjusted for changes in the cost of
1026	living since 1989 in the manner provided by Internal Revenue
1027	Code s. 401(a)(17)(1991).
1028	(10)  "Local law plan" means a defined benefit pension plan
1029	for police officers or for police officers and firefighters,
1030	where included, as described in s. 185.35, established by
1031	municipal ordinance or special act of the Legislature, which
1032	enactment sets forth all plan provisions. Local law plan
1033	provisions may vary from the provisions of this chapter,
1034	provided that required minimum benefits and minimum standards
1035	are met. Any such variance shall provide a greater benefit for
1036	police officers. Actuarial valuations of local law plans shall
1037	be conducted by an enrolled actuary as provided in s.
1038	185.221(2)(b).
1039	(15)  "Supplemental plan" means a plan to which deposits of
1040	the premium tax moneys as provided in s. 185.08 are made to
1041	provide extra benefits to police officers, or police officers
1042	and firefighters where included, under this chapter. Such a plan
1043	is an element of a local law plan and exists in conjunction with
1044	a defined benefit plan that meets the minimum benefits and
1045	minimum standards of this chapter.
1046	Section 22.  Section 185.021, Florida Statutes, is created
1047	to read:
1048	185.021  Application.-Notwithstanding any other provision
1049	of law, s. 112.65 applies to this chapter and controls over any
1050	conflicting provision of this chapter.
1051	Section 23.  Subsections (2) and (3) of section 185.03,
1052	Florida Statutes, are amended to read:
1053	185.03  Municipal police officers' retirement trust funds;
1054	creation; applicability of provisions; participation by public
1055	safety officers.-For any municipality, chapter plan, local law
1056	municipality, or local law plan under this chapter:
1057	(2)  The provisions of This chapter applies shall apply
1058	only to municipalities organized and established pursuant to
1059	law. This chapter does the laws of the state, and said
1060	provisions shall not apply to the unincorporated areas of any
1061	county or counties or nor shall the provisions hereof apply to
1062	any governmental entity whose police officers are eligible to
1063	participate in the Florida Retirement System, except as provided
1064	in s. 185.35(5) or s. 185.381.
1065	(3)  No municipality shall establish more than one
1066	retirement plan for public safety officers which is supported in
1067	whole or in part by the distribution of premium tax funds as
1068	provided by this chapter or chapter 175, nor shall any
1069	municipality establish a retirement plan for public safety
1070	officers which receives premium tax funds from both this chapter
1071	and chapter 175.
1072	Section 24.  Subsection (1) of section 185.05, Florida
1073	Statutes, is amended to read:
1074	185.05  Board of trustees; members; terms of office;
1075	meetings; legal entity; costs; attorney's fees.-For any
1076	municipality, chapter plan, local law municipality, or local law
1077	plan under this chapter:
1078	(1)  In each municipality described in s. 185.03 there is
1079	hereby created a board of trustees of the municipal police
1080	officers' retirement trust fund, which shall be solely
1081	responsible for administering the trust fund. Effective October
1082	1, 1986, and thereafter:
1083	(a)  The membership of the board of trustees for chapter
1084	plans consists of five members, two of whom, unless otherwise
1085	prohibited by law, must be legal residents of the municipality
1086	and must be appointed by the legislative body of the
1087	municipality, and two of whom must be police officers as defined
1088	in s. 185.02 who are elected by a majority of the active police
1089	officers who are members of such plan. With respect to any
1090	chapter plan or local law plan that, on January 1, 1997, allowed
1091	retired police officers to vote in such elections, retirees may
1092	continue to vote in such elections. The fifth member shall be
1093	chosen by a majority of the previous four members, and such
1094	person's name shall be submitted to the legislative body of the
1095	municipality. Upon receipt of the fifth person's name, the
1096	legislative body shall, as a ministerial duty, appoint such
1097	person to the board of trustees. The fifth member shall have the
1098	same rights as each of the other four members appointed or
1099	elected, shall serve as trustee for a period of 2 years, and may
1100	succeed himself or herself in office. Each resident member shall
1101	serve as trustee for a period of 2 years, unless sooner replaced
1102	by the legislative body at whose pleasure the member serves, and
1103	may succeed himself or herself as a trustee. Each police officer
1104	member shall serve as trustee for a period of 2 years, unless he
1105	or she sooner leaves the employment of the municipality as a
1106	police officer, whereupon a successor shall be chosen in the
1107	same manner as an original appointment. Each police officer may
1108	succeed himself or herself in office. The terms of office of the
1109	appointed and elected members of the board of trustees may be
1110	amended by municipal ordinance or special act of the Legislature
1111	to extend the terms from 2 years to 4 years. The length of the
1112	terms of office shall be the same for all board members.
1113	(b)  The membership of boards of trustees for local law
1114	plans shall be as follows:
1115	1.  If a municipality has a pension plan for police
1116	officers only, the provisions of paragraph (a) shall apply.
1117	2.  If a municipality has a pension plan for police
1118	officers and firefighters, the provisions of paragraph (a) shall
1119	apply, except that one member of the board shall be a police
1120	officer as defined in s. 185.02 and one member shall be a
1121	firefighter as defined in s. 175.032, respectively, elected by a
1122	majority of the active firefighters and police officers who are
1123	members of the plan.
1124	3.  Any board of trustees operating a local law plan on
1125	July 1, 1999, which is combined with a plan for general
1126	employees shall hold an election of the police officers, or
1127	police officers and firefighters if included, to determine
1128	whether a plan is to be established for police officers only, or
1129	for police officers and firefighters where included. Based on
1130	the election results, a new board shall be established as
1131	provided in subparagraph 1. or subparagraph 2., as appropriate.
1132	The municipality shall enact an ordinance to implement the new
1133	board by October 1, 1999. The newly established board shall take
1134	whatever action is necessary to determine the amount of assets
1135	which is attributable to police officers, or police officers and
1136	firefighters where included. Such assets shall include all
1137	employer, employee, and state contributions made by or on behalf
1138	of police officers, or police officers and firefighters where
1139	included, and any investment income derived from such
1140	contributions. All such moneys shall be transferred into the
1141	newly established retirement plan, as directed by the board.
1142
1143	With respect to any board of trustees operating a local law plan
1144	on June 30, 1986, nothing in this paragraph does not shall
1145	permit the reduction of the membership percentage of police
1146	officers or police officers and firefighters. A municipality may
1147	change the municipal representation on the board of trustees
1148	operating a local law plan by ordinance if the change does not
1149	reduce the membership percentage of police officers, or police
1150	officers and firefighters, that were employed on June 30, 1986.
1151	(c)  A majority of the members of a board of trustees may
1152	not be members or retirees of the plan for which the board is
1153	administering the trust fund.
1154	(d)  The board of trustees shall:
1155	1.  Provide a detailed accounting report of its expenses
1156	for each fiscal year to the plan sponsor and the Department of
1157	Management Services and shall make the report available to every
1158	member of the plan. The report must include, but need not be
1159	limited to, all administrative expenses, which for purposes of
1160	this subparagraph are all expenses relating to any legal
1161	counsel, actuary, plan administrator, and all other consultants,
1162	and all travel and other expenses paid to or on behalf of the
1163	members of the board of trustees or anyone else on behalf of the
1164	plan.
1165	2.  Submit its proposed administrative expense budget for
1166	each fiscal year at least 120 days before the beginning of the
1167	fiscal year to the plan sponsor for review and modification. The
1168	administrative expense budget is effective only upon approval by
1169	the plan sponsor and must regulate the administrative expenses
1170	of the board of trustees. The board of trustees may not amend
1171	the budget without the prior approval of the plan sponsor.
1172	(c)  Whenever the active police officer membership of a
1173	closed chapter plan or closed local law plan as provided in s.
1174	185.38 falls below 10, an active police officer member seat may
1175	be held by either a retired police officer or an active police
1176	officer member of the plan who is elected by the active and
1177	retired members of the plan. If there are no active or retired
1178	police officers remaining in the plan or capable of serving, the
1179	remaining board members may elect an individual to serve in the
1180	active police officer member seat. Upon receipt of such person's
1181	name, the legislative body of the municipality shall, as a
1182	ministerial duty, appoint such person to the board of trustees.
1183	This paragraph applies only to those plans that are closed to
1184	new members under s. 185.38(2), and does not apply to any other
1185	municipality having a chapter or local law plan.
1186	(d)  If the chapter plan or local law plan with an active
1187	membership of 10 or more is closed to new members, the member
1188	seats may be held by either a retiree, as defined in s. 185.02,
1189	or an active police officer of the plan who has been elected by
1190	the active police officers. A closed plan means a plan that is
1191	closed to new members but continues to operate, pursuant to s.
1192	185.38(2), for participants who elect to remain in the existing
1193	plan. This paragraph applies only to those plans that are closed
1194	to new members pursuant to s. 185.38(2) and does not apply to
1195	any other municipality that has a chapter plan or a local law
1196	plan.
1197	Section 25.  Subsection (6) of section 185.06, Florida
1198	Statutes, is amended to read:
1199	185.06  General powers and duties of board of trustees.-For
1200	any municipality, chapter plan, local law municipality, or local
1201	law plan under this chapter:
1202	(6)  To assist the board in meeting its responsibilities
1203	under this chapter, the board, if it so elects, and subject to
1204	s. 185.05(1)(d), may:
1205	(a)  Employ independent legal counsel at the pension fund's
1206	expense.
1207	(b)  Employ an independent actuary, as defined in s.
1208	185.02(8), at the pension fund's expense.
1209	(c)  Employ such independent professional, technical, or
1210	other advisers as it deems necessary at the pension fund's
1211	expense.
1212
1213	If the board chooses to use the municipality's or special
1214	district's legal counsel or actuary, or chooses to use any of
1215	the municipality's other professional, technical, or other
1216	advisers, it must do so only under terms and conditions
1217	acceptable to the board.
1218	Section 26.  Paragraph (b) of subsection (2) of section
1219	185.07, Florida Statutes, is amended to read:
1220	185.07  Creation and maintenance of fund.-For any
1221	municipality, chapter plan, local law municipality, or local law
1222	plan under this chapter:
1223	(2)  Member contribution rates may be adjusted as follows:
1224	(b)  Police officer member contributions may be increased
1225	by consent of the members' collective bargaining representative
1226	or, if none, by majority consent of police officer members of
1227	the fund to provide greater benefits.
1228
1229	Nothing in this section shall be construed to require adjustment
1230	of member contribution rates in effect on the date this act
1231	becomes a law, including rates that exceed 5 percent of salary,
1232	provided that such rates are at least one-half of 1 percent of
1233	salary.
1234	Section 27.  Section 185.16, Florida Statutes, is amended
1235	to read:
1236	185.16  Requirements for retirement.-For any municipality,
1237	chapter plan, local law municipality, or local law plan under
1238	this chapter, any police officer who completes 10 or more years
1239	of creditable service as a police officer and attains age 55, or
1240	completes 25 years of creditable service as a police officer and
1241	attains age 52, and for such period has been a member of the
1242	retirement fund is eligible for normal retirement benefits.
1243	Normal retirement under the plan is retirement from the service
1244	of the city on or after the normal retirement date. In such
1245	event, for chapter plans and local law plans, payment of
1246	retirement income will be governed by the following provisions
1247	of this section:
1248	(1)  The normal retirement date of each police officer will
1249	be the first day of the month coincident with or next following
1250	the date on which the police officer has completed 10 or more
1251	years of creditable service and attained age 55 or completed 25
1252	years of creditable service and attained age 52.
1253	(2)  Except as provided in s. 112.65(3)(b), the amount of
1254	the monthly retirement income payable to a police officer who
1255	retires on or after his or her normal retirement date shall be
1256	an amount equal to the number of the police officer's years of
1257	credited service multiplied by 2 percent of his or her average
1258	final compensation. However, if current state contributions
1259	pursuant to this chapter are not adequate to fund the additional
1260	benefits to meet the minimum requirements in this chapter, only
1261	increment increases shall be required as state moneys are
1262	adequate to provide. Such increments shall be provided as state
1263	moneys become available.
1264	(3)  The monthly retirement income payable in the event of
1265	normal retirement will be payable on the first day of each
1266	month. The first payment will be made on the police officer's
1267	normal retirement date, or on the first day of the month
1268	coincident with or next following the police officer's actual
1269	retirement, if later, and the last payment will be the payment
1270	due next preceding the police officer's death; except that, in
1271	the event the police officer dies after retirement but before
1272	receiving retirement benefits for a period of 10 years, the same
1273	monthly benefit will be paid to the beneficiary (or
1274	beneficiaries) as designated by the police officer for the
1275	balance of such 10-year period, or, if no beneficiary is
1276	designated, to the estate of the police officer, as provided in
1277	s. 185.162. If a police officer continues in the service of the
1278	city beyond his or her normal retirement date and dies prior to
1279	the date of actual retirement, without an option made pursuant
1280	to s. 185.161 being in effect, monthly retirement income
1281	payments will be made for a period of 10 years to a beneficiary
1282	(or beneficiaries) designated by the police officer as if the
1283	police officer had retired on the date on which death occurred,
1284	or, if no beneficiary is designated, to the estate of the police
1285	officer, as provided in s. 185.162.
1286	(4)  Early retirement under the plan is retirement from the
1287	service of the city, with the consent of the city, as of the
1288	first day of any calendar month which is prior to the police
1289	officer's normal retirement date but subsequent to the date as
1290	of which the police officer has both attained the age of 50
1291	years and completed 10 years of contributing service. In the
1292	event of early retirement, payment of retirement income will be
1293	governed as follows:
1294	(a)  The early retirement date shall be the first day of
1295	the calendar month coincident with or immediately following the
1296	date a police officer retires from the service of the city under
1297	the provisions of this section prior to his or her normal
1298	retirement date.
1299	(b)  The monthly amount of retirement income payable to a
1300	police officer who retires prior to his or her normal retirement
1301	date under the provisions of this section shall be an amount
1302	computed as described in subsection (2), taking into account his
1303	or her credited service to the date of actual retirement and his
1304	or her final monthly compensation as of such date, such amount
1305	of retirement income to be actuarially reduced to take into
1306	account the police officer's younger age and the earlier
1307	commencement of retirement income payments. In no event shall
1308	The early retirement reduction shall be 5 exceed 3 percent for
1309	each year by which the member's age at retirement preceded the
1310	member's normal retirement age, as provided in subsection (1).
1311	(c)  The retirement income payable in the event of early
1312	retirement will be payable on the first day of each month. The
1313	first payment will be made on the police officer's early
1314	retirement date and the last payment will be the payment due
1315	next preceding the retired police officer's death; except that,
1316	in the event the police officer dies before receiving retirement
1317	benefits for a period of 10 years, the same monthly benefit will
1318	be paid to the beneficiary designated by the police officer for
1319	the balance of such 10-year period, or, if no designated
1320	beneficiary is surviving, the same monthly benefit for the
1321	balance of such 10-year period shall be payable as provided in
1322	s. 185.162.
1323	Section 28.  Subsections (2), (4), (6), and (7) of section
1324	185.18, Florida Statutes, are amended to read:
1325	185.18  Disability retirement.-For any municipality,
1326	chapter plan, local law municipality, or local law plan under
1327	this chapter:
1328	(2)  A police officer will be considered totally disabled
1329	if, in the opinion of the board of trustees and the employer, he
1330	or she is wholly prevented from rendering useful and efficient
1331	service as an employee a police officer; and a police officer
1332	will be considered permanently disabled if, in the opinion of
1333	the board of trustees and the employer, such police officer is
1334	likely to remain so disabled continuously and permanently from a
1335	cause other than as specified in subsection (3).
1336	(4)  A No police officer is not shall be permitted to
1337	retire under the provisions of this section until examined by a
1338	duly qualified physician or surgeon, to be selected by the board
1339	of trustees and the employer for that purpose, and is found to
1340	be disabled in the degree and in the manner specified in this
1341	section. Any police officer retiring under this section may be
1342	examined periodically by a duly qualified physician or surgeon
1343	or board of physicians and surgeons to be selected by the board
1344	of trustees or the employer for that purpose, to determine if
1345	such disability has ceased to exist.
1346	(6)  The monthly retirement income to which a police
1347	officer is entitled in the event of his or her disability
1348	retirement shall be payable on the first day of the first month
1349	after the board of trustees and the employer determine
1350	determines such entitlement. However, the monthly retirement
1351	income shall be payable as of the date the board and the
1352	employer determine determines such entitlement, and any portion
1353	due for a partial month shall be paid together with the first
1354	payment. The last payment will be, if the police officer
1355	recovers from the disability, the payment due next preceding the
1356	date of such recovery or, if the police officer dies without
1357	recovering from his or her disability, the payment due next
1358	preceding death or the 120th monthly payment, whichever is
1359	later. In lieu of the benefit payment as provided in this
1360	subsection, a police officer may select an optional form as
1361	provided in s. 185.161. Any monthly retirement income payments
1362	due after the death of a disabled police officer shall be paid
1363	to the police officer's designated beneficiary (or
1364	beneficiaries) as provided in ss. 185.162 and 185.21.
1365	(7)  If the board of trustees or the employer finds that a
1366	police officer who is receiving a disability retirement income
1367	is no longer disabled, as provided in this section herein, the
1368	board of trustees or the employer shall direct that the
1369	disability retirement income be discontinued. Recovery from
1370	disability as used in this section herein shall mean the ability
1371	of the police officer to render useful and efficient service as
1372	an employee a police officer.
1373	Section 29.  Section 185.34, Florida Statutes, is repealed.
1374	Section 30.  Section 185.35, Florida Statutes, is amended
1375	to read:
1376	185.35  Municipalities having their own pension plans for
1377	police officers.-For any municipality, chapter plan, local law
1378	municipality, or local law plan under this chapter, in order for
1379	municipalities with their own pension plans for police officers,
1380	or for police officers and firefighters where included, to
1381	participate in the distribution of the tax fund established
1382	pursuant to s. 185.08, local law plans must provide a benefit or
1383	benefits within those pension plans for police officers, or for
1384	police officers and firefighters where included, which are equal
1385	to or greater than pension benefits provided to general
1386	employees of the municipality regardless of when such additional
1387	or greater benefit was or is provided. meet the minimum benefits
1388	and minimum standards set forth in this chapter:
1389	(1)  PREMIUM TAX INCOME.-If a municipality has a pension
1390	plan for police officers, or for police officers and
1391	firefighters where included, which, in the opinion of the
1392	division, meets the minimum benefits and minimum standards set
1393	forth in this chapter, the board of trustees of the pension
1394	plan, as approved by a majority of police officers of the
1395	municipality, may:
1396	(a)  Place the income from the premium tax in s. 185.08 in
1397	such pension plan for the sole and exclusive use of its police
1398	officers, or its police officers and firefighters where
1399	included, where it shall become an integral part of that pension
1400	plan and shall be used to pay extra benefits to the police
1401	officers included in that pension plan; or
1402	(b)  May place the income from the premium tax in s. 185.08
1403	in a separate supplemental plan to pay extra benefits to the
1404	police officers, or police officers and firefighters where
1405	included, participating in such separate supplemental plan. The
1406	premium tax provided by this chapter must shall in all cases be
1407	used in its entirety to provide extra benefits to police
1408	officers, or to police officers and firefighters, where
1409	included. Notwithstanding any other provision of this chapter
1410	However, local law plans in effect on October 1, 1998, may shall
1411	be required to comply with the minimum benefit provisions of
1412	this chapter by providing pension benefits that, in the
1413	aggregate, exceed the minimum benefits set forth in this chapter
1414	as determined by the plan's or employer's actuary only to the
1415	extent that additional premium tax revenues become available to
1416	incrementally fund the cost of such compliance as provided in s.
1417	185.16(2). When a plan is in compliance with such minimum
1418	benefit provisions, as subsequent additional tax revenues become
1419	available, they shall be used to provide extra benefits. For the
1420	purpose of this chapter, "additional premium tax revenues" means
1421	revenues received by a municipality pursuant to s. 185.10 which
1422	exceed the amount received for calendar year 1997, and the term
1423	"extra benefits" means benefits in addition to or greater than
1424	those provided to general employees of the municipality and in
1425	addition to those in existence for police officers on March 12,
1426	1999. Local law plans created by special act before May 23,
1427	1939, are shall be deemed to comply with this chapter.
1428	(2)  ADOPTION OR REVISION OF A LOCAL LAW PLAN.- A No
1429	retirement plan or amendment to a retirement plan may not shall
1430	be proposed for adoption unless the proposed plan or amendment
1431	contains an actuarial estimate of the costs involved. The No
1432	such proposed plan or proposed plan change may only be adopted
1433	with shall be adopted without the approval of the municipality
1434	and or, if required where permitted, the Legislature. Copies of
1435	the proposed plan or proposed plan change and the actuarial
1436	impact statement of the proposed plan or proposed plan change
1437	shall be furnished to the division prior to the last public
1438	hearing thereon. The impact Such statement must shall also
1439	indicate whether the proposed plan or proposed plan change is in
1440	compliance with s. 14, Art. X of the State Constitution and
1441	those provisions of part VII of chapter 112 which are not
1442	expressly provided in this chapter. Notwithstanding any other
1443	provision, only those local law plans created by special act of
1444	legislation before prior to May 23, 1939, are shall be deemed to
1445	meet the minimum benefits and minimum standards only in this
1446	chapter.
1447	(3)  Notwithstanding any other provision, with respect to a
1448	any supplemental plan municipality:
1449	(a)  Section 185.02(4)(a) does shall not apply, and a local
1450	law plan and a supplemental plan may continue to use their
1451	definition of compensation or salary in existence on March 12,
1452	1999 the effective date of this act.
1453	(b)  Section 185.05(1)(b) does shall not apply, and a local
1454	law plan and a supplemental plan shall continue to be
1455	administered by a board or boards of trustees numbered,
1456	constituted, and selected as the board or boards were numbered,
1457	constituted, and selected on December 1, 2000.
1458	(c)  The election set forth in paragraph (1)(b) shall be
1459	deemed to have been made.
1460	(4)  The retirement plan setting forth the benefits and the
1461	trust agreement, if any, covering the duties and
1462	responsibilities of the trustees and the regulations of the
1463	investment of funds must be in writing and copies must be made
1464	available to the participants and to the general public.
1465	(5)  A municipality may unilaterally establish one or more
1466	new plans, or benefit levels within a plan, which provide
1467	different benefit levels for plan members based on the member's
1468	date of hire if the new plan or benefit level provides pension
1469	benefits that, in the aggregate, meet or exceed the minimum
1470	benefits set forth in this chapter, as determined by the plan's
1471	or employer's actuary. A municipality may unilaterally elect to
1472	maintain an existing plan and join the Florida Retirement System
1473	for employees hired after a specified date. A municipality
1474	choosing to operate under this subsection shall use the premium
1475	tax provided under this chapter for the current plan or benefit
1476	level, for any additional plan or benefit level, or for
1477	contributions to the Florida Retirement System.
1478	Section 31.  Section 185.37, Florida Statutes, is amended
1479	to read:
1480	185.37  Termination of plan and distribution of fund.-For
1481	any municipality, chapter plan, local law municipality, or local
1482	law plan under this chapter, the plan may be terminated by the
1483	municipality. Upon termination of the plan by the municipality
1484	for any reason, or because of a transfer, merger, or
1485	consolidation of governmental units, services, or functions as
1486	provided in chapter 121, or upon written notice to the board of
1487	trustees by the municipality that contributions under the plan
1488	are being permanently discontinued, the rights of all employees
1489	to benefits accrued to the date of such termination or
1490	discontinuance and the amounts credited to the employees'
1491	accounts are nonforfeitable. The fund shall be distributed in
1492	accordance with the following procedures:
1493	(1)  The municipality board of trustees shall determine the
1494	date of distribution and the asset value required to fund all
1495	the nonforfeitable benefits, after taking into account the
1496	expenses of such distribution. The board shall inform the
1497	municipality shall determine if additional assets are required,
1498	in which event the municipality shall continue to financially
1499	support the plan until all nonforfeitable benefits have been
1500	funded.
1501	(2)  The municipality board of trustees shall determine the
1502	method of distribution of the asset value, whether distribution
1503	shall be by payment in cash, by the maintenance of another or
1504	substituted trust fund, by the purchase of insured annuities, or
1505	otherwise, for each police officer entitled to benefits under
1506	the plan, as specified in subsection (3).
1507	(3)  The municipality board of trustees shall distribute
1508	the asset value as of the date of termination in the manner set
1509	forth in this subsection, on the basis that the amount required
1510	to provide any given retirement income is the actuarially
1511	computed single-sum value of such retirement income, except that
1512	if the method of distribution determined under subsection (2)
1513	involves the purchase of an insured annuity, the amount required
1514	to provide the given retirement income is the single premium
1515	payable for such annuity. The actuarial single-sum value may not
1516	be less than the employee's accumulated contributions to the
1517	plan, with interest if provided by the plan, less the value of
1518	any plan benefits previously paid to the employee.
1519	(4)  If there is asset value remaining after the full
1520	distribution specified in subsection (3), and after payment of
1521	any expenses incurred with such distribution, such excess shall
1522	be returned to the municipality, less return to the state of the
1523	state's contributions, provided that, if the excess is less than
1524	the total contributions made by the municipality and the state
1525	to date of termination of the plan, such excess shall be divided
1526	proportionately to the total contributions made by the
1527	municipality and the state.
1528	(5)  The municipality board of trustees shall distribute,
1529	in accordance with the manner of distribution determined under
1530	subsection (2), the amounts determined under subsection (3).
1531
1532	If, after 24 months after the date the plan terminated or the
1533	date the board received written notice that the contributions
1534	thereunder were being permanently discontinued, the municipality
1535	or the board of trustees of the municipal police officers'
1536	retirement trust fund affected has not complied with all the
1537	provisions in this section, the Department of Management
1538	Services shall effect the termination of the fund in accordance
1539	with this section.
1540	Section 32.  Section 185.38, Florida Statutes, is repealed.
1541	Section 33.  Section 185.381, Florida Statutes, is created
1542	to read:
1543	185.381  Benefits under another retirement system or
1544	pension program.-For any municipality, chapter plan, local law
1545	municipality, or local law plan under this chapter:
1546	(1)  A police officer who has a vested right to benefits
1547	under the pension plan may not receive a benefit under a new
1548	retirement system or pension program for any period of service
1549	for which benefits are paid pursuant to the pension plan subject
1550	to this chapter.
1551	(2)  If a municipality unilaterally chooses to create or
1552	transfer to another retirement system or pension program,
1553	including, but not limited to, a defined contribution program,
1554	for all or a portion of its active police officers who are in a
1555	pension plan subject to this chapter, or for police officers
1556	hired after a date certain, the municipality shall continue to
1557	receive state premium tax moneys and must use those funds as
1558	needed to fully fund a preexisting plan subject to this chapter
1559	or to reduce the required contributions of the municipality to
1560	the new retirement system or pension program. A new retirement
1561	system or pension program shall make provision for disability
1562	retirement for police officers who suffer total and permanent
1563	disabilities in the line of duty, as determined by the employer
1564	under the definitions of and a process similar to the process in
1565	s. 185.18, and the monthly benefit shall be the accrued
1566	retirement benefit under the plan or system, but the benefit
1567	shall provide not less than an amount equal to 42 percent of the
1568	police officer's average monthly compensation at the time of the
1569	disability for the life of the police officer or until the
1570	police officer recovers from the disability, as determined by
1571	the employer.
1572	Section 34.  Section 185.39, Florida Statutes, is repealed.
1573	Section 35.  The Legislature finds that a proper and
1574	legitimate state purpose is served when employees and retirees
1575	of the state and of its political subdivisions, and the
1576	dependents, survivors, and beneficiaries of such employees and
1577	retirees, are extended the basic protections afforded by
1578	governmental retirement systems that provide fair and adequate
1579	benefits and that are managed, administered, and funded in an
1580	actuarially sound manner as required by s. 14, Art. X of the
1581	State Constitution and part VII of chapter 112, Florida
1582	Statutes. Therefore, the Legislature determines and declares
1583	that this act fulfill an important state interest.
1584	Section 36.  This act shall take effect upon becoming a
1585	law.

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