HB 7241

1	A bill to be entitled
2	An act relating to public retirement plans; amending s.
3	175.032, F.S.; revising the definition of the term
4	"compensation" or "salary" for purposes of firefighters'
5	pensions; amending s. 175.061, F.S.; providing duties of
6	the board of trustees relating to the reporting of
7	expenses and the submission of a proposed administrative
8	expense budget; amending s. 175.071, F.S.; revising
9	requirements of the board relating to the employment of
10	legal counsel, actuaries, and other advisers; amending s.
11	175.091, F.S.; removing an adjustment requirement for
12	member contribution rates to a retirement plan for
13	firefighters; amending s. 175.351, F.S.; revising
14	provisions relating to benefits paid from the premium tax
15	by a municipality or special fire control district that
16	has its own pension plan; providing definitions; providing
17	uses for additional premium tax revenues; amending s.
18	185.02, F.S.; revising the definition of the term
19	"compensation" or "salary" for purposes of police
20	officers' pensions; amending s. 185.05, F.S.; providing
21	duties of the board of trustees relating to the reporting
22	of expenses and submission of a proposed administrative
23	expense budget; amending s. 185.06, F.S.; revising
24	requirements of the board relating to the employment of
25	legal counsel, actuaries, and other advisers; amending s.
26	185.07, F.S.; removing an adjustment requirement for
27	member contribution rates to a retirement plan for police
28	officers; amending s. 185.35, F.S.; revising provisions
29	relating to benefits paid by a municipality that has its
30	own pension plan; providing definitions; providing uses
31	for additional premium tax revenues; directing the
32	Division of Retirement in the Department of Management
33	Services to rate the financial strength of local
34	government defined benefit plans; specifying the factors
35	for assigning the ratings; requiring local pension boards,
36	local governments, and all relevant entities to cooperate
37	in providing data for the ratings; requiring the ratings
38	to be posted on the division's website; creating the Task
39	Force on Public Employee Disability Presumptions;
40	providing for appointment and membership; specifying the
41	issues for the task force to address; providing for a
42	report to be submitted to the Governor, Chief Financial
43	Officer, and Legislature by a certain date; providing for
44	future expiration; providing a declaration of important
45	state interest; providing an effective date.
46
47	Be It Enacted by the Legislature of the State of Florida:
48
49	Section 1.  Subsection (3) of section 175.032, Florida
50	Statutes, is amended to read:
51	175.032  Definitions.-For any municipality, special fire
52	control district, chapter plan, local law municipality, local
53	law special fire control district, or local law plan under this
54	chapter, the following words and phrases have the following
55	meanings:
56	(3)  "Compensation" or "salary" means, for noncollectively
57	bargained service earned before July 1, 2011, or for service
58	earned under collective bargaining agreements in place before
59	July 1, 2011, the fixed monthly remuneration paid a firefighter.
60	If ; where, as in the case of a volunteer firefighter,
61	remuneration is based on actual services rendered, as in the
62	case of a volunteer firefighter, the term means the total cash
63	remuneration received yearly for such services, prorated on a
64	monthly basis. For noncollectively bargained service earned on
65	or after July 1, 2011, or for service earned under collective
66	bargaining agreements entered into on or after July 1, 2011, the
67	term has the same meaning except that overtime compensation up
68	to 300 hours per year may be included for purposes of
69	calculating retirement benefits as specified in the plan or
70	collective bargaining agreement, but payments for unused sick or
71	annual leave may not be included for purposes of calculating
72	retirement benefits.
73	(a)  A retirement trust fund or plan may use a definition
74	of salary other than the definition in this subsection but only
75	if the monthly retirement income payable to each firefighter
76	covered by the retirement trust fund or plan, as determined
77	under s. 175.162(2)(a) and using such other definition, equals
78	or exceeds the monthly retirement income that would be payable
79	to each firefighter if his or her monthly retirement income were
80	determined under s. 175.162(2)(a) and using the definition in
81	this subsection.
82	(a)(b)  Any retirement trust fund or plan that which now or
83	hereafter meets the requirements of this chapter does shall not,
84	solely by virtue of this subsection, reduce or diminish the
85	monthly retirement income otherwise payable to each firefighter
86	covered by the retirement trust fund or plan.
87	(b)(c)  The member's compensation or salary contributed as
88	employee-elective salary reductions or deferrals to any salary
89	reduction, deferred compensation, or tax-sheltered annuity
90	program authorized under the Internal Revenue Code shall be
91	deemed to be the compensation or salary the member would receive
92	if he or she were not participating in such program and shall be
93	treated as compensation for retirement purposes under this
94	chapter.
95	(c)(d)  For any person who first becomes a member in any
96	plan year beginning on or after January 1, 1996, compensation
97	for that any plan year may shall not include any amounts in
98	excess of the Internal Revenue Code s. 401(a)(17) limitation,
99	(as amended by the Omnibus Budget Reconciliation Act of 1993),
100	which limitation of $150,000 shall be adjusted as required by
101	federal law for qualified government plans and shall be further
102	adjusted for changes in the cost of living in the manner
103	provided by Internal Revenue Code s. 401(a)(17)(B). For any
104	person who first became a member before prior to the first plan
105	year beginning on or after January 1, 1996, the limitation on
106	compensation may shall be not be less than the maximum
107	compensation amount that was allowed to be taken into account
108	under the plan as in effect on July 1, 1993, which limitation
109	shall be adjusted for changes in the cost of living since 1989
110	in the manner provided by Internal Revenue Code s.
111	401(a)(17)(1991).
112	Section 2.  Subsections (4), (5), (6), and (7) of section
113	175.061, Florida Statutes, are renumbered as subsections (5),
114	(6), (7), and (8), respectively, and a new subsection (4) is
115	added to that section, to read:
116	175.061  Board of trustees; members; terms of office;
117	meetings; legal entity; costs; attorney's fees.-For any
118	municipality, special fire control district, chapter plan, local
119	law municipality, local law special fire control district, or
120	local law plan under this chapter:
121	(4)  The board of trustees shall:
122	(a)  Provide a detailed accounting report of its expenses
123	for each fiscal year to the plan sponsor and the Department of
124	Management Services and shall make the report available to every
125	member of the plan. The report must include, but need not be
126	limited to, all administrative expenses which, for purposes of
127	this subsection, are all expenses relating to any legal counsel,
128	actuary, plan administrator, and all other consultants, and all
129	travel and other expenses paid to or on behalf of the members of
130	the board of trustees or anyone else on behalf of the plan.
131	(b)  Submit its proposed administrative expense budget for
132	each fiscal year at least 120 days before the beginning of the
133	fiscal year to the plan sponsor for review and modification. The
134	administrative expense budget is effective only upon approval by
135	the plan sponsor and must regulate the administrative expenses
136	of the board of trustees. The board of trustees may not amend
137	the budget without the prior approval of the plan sponsor.
138	Section 3.  Subsection (7) of section 175.071, Florida
139	Statutes, is amended to read:
140	175.071  General powers and duties of board of trustees.-
141	For any municipality, special fire control district, chapter
142	plan, local law municipality, local law special fire control
143	district, or local law plan under this chapter:
144	(7)  To assist the board in meeting its responsibilities
145	under this chapter, the board, if it so elects, and subject to
146	s. 175.061(4), may:
147	(a)  Employ independent legal counsel at the pension fund's
148	expense.
149	(b)  Employ an independent actuary, as defined in s.
150	175.032(7), at the pension fund's expense.
151	(c)  Employ such independent professional, technical, or
152	other advisers as it deems necessary at the pension fund's
153	expense.
154
155	If the board chooses to use the municipality's or special
156	district's legal counsel or actuary, or chooses to use any of
157	the municipality's or special district's other professional,
158	technical, or other advisers, it must do so only under terms and
159	conditions acceptable to the board.
160	Section 4.  Paragraph (b) of subsection (2) of section
161	175.091, Florida Statutes, is amended to read:
162	175.091  Creation and maintenance of fund.-For any
163	municipality, special fire control district, chapter plan, local
164	law municipality, local law special fire control district, or
165	local law plan under this chapter:
166	(2)  Member contribution rates may be adjusted as follows:
167	(b)  Firefighter member contributions may be increased by
168	consent of the members' collective bargaining representative or,
169	if none, by majority consent of firefighter members of the fund
170	to provide greater benefits.
171
172	Nothing in this section shall be construed to require adjustment
173	of member contribution rates in effect on the date this act
174	becomes a law, including rates that exceed 5 percent of salary,
175	provided that such rates are at least one-half of 1 percent of
176	salary.
177	Section 5.  Section 175.351, Florida Statutes, is amended
178	to read:
179	175.351  Municipalities and special fire control districts
180	having their own pension plans for firefighters.-For any
181	municipality, special fire control district, local law
182	municipality, local law special fire control district, or local
183	law plan under this chapter, in order for municipalities and
184	special fire control districts with their own pension plans for
185	firefighters, or for firefighters and police officers, where
186	included, to participate in the distribution of the tax fund
187	established pursuant to s. 175.101, local law plans must provide
188	a benefit or benefits within those pension plans for
189	firefighters, or for firefighters and police officers, where
190	included, that is in addition to or greater than a pension
191	benefit provided to general employees of the municipality or
192	special fire control district regardless of when such additional
193	or greater benefit was or is provided meet the minimum benefits
194	and minimum standards set forth in this chapter.
195	(1)  For the purpose of this chapter:
196	(a)  "Additional premium tax revenues" means revenues
197	received by a municipality or special fire control district
198	pursuant to s. 175.121 which exceed that amount received for
199	calendar year 1997.
200	(b)  "Extra benefits" means benefits in addition to or
201	greater than those provided to general employees of the
202	municipality or special fire control district regardless of when
203	such additional or greater benefit was or is provided. PREMIUM
204	TAX INCOME.-If a municipality has a pension plan for
205	firefighters, or a pension plan for firefighters and police
206	officers, where included, which in the opinion of the division
207	meets the minimum benefits and minimum standards set forth in
208	this chapter, the board of trustees of the pension plan, as
209	approved by a majority of firefighters of the municipality, may:
210	(a)  Place the income from the premium tax in s. 175.101 in
211	such pension plan for the sole and exclusive use of its
212	firefighters, or for firefighters and police officers, where
213	included, where it shall become an integral part of that pension
214	plan and shall be used to pay extra benefits to the firefighters
215	included in that pension plan; or
216	(b)  Place the income from the premium tax in s. 175.101 in
217	a separate supplemental plan to pay extra benefits to
218	firefighters, or to firefighters and police officers where
219	included, participating in such separate supplemental plan.
220	(2)  For plans that comply with the minimum benefit
221	provisions of this chapter, the additional premium tax revenues
222	provided by this chapter shall in all cases be used in its
223	entirety to:
224	(a)  Pay provide extra benefits to firefighters, or to
225	firefighters and police officers, where included; or
226	(b)  Pay the unfunded actuarial accrued liabilities of the
227	plan. If the aggregate level cost method is the actuarial cost
228	method used to fund the plan, the unfunded actuarial accrued
229	liabilities shall be measured using the entry age normal cost
230	method.
231	(3)  For However, local law plans in effect on October 1,
232	1998, that do not shall be required to comply with the minimum
233	benefit provisions of this chapter, as only to the extent that
234	additional premium tax revenues become available, such revenues
235	shall be used to incrementally fund the cost of such compliance
236	as provided in s. 175.162(2)(a).
237	(4)  If When a plan is in compliance with such minimum
238	benefit provisions, as subsequent additional premium tax
239	revenues become available, they shall be used to pay for provide
240	extra benefits or to pay the unfunded actuarial accrued
241	liabilities of the plan, as provided in subsection (2). For the
242	purpose of this chapter, "additional premium tax revenues" means
243	revenues received by a municipality or special fire control
244	district pursuant to s. 175.121 which exceed that amount
245	received for calendar year 1997, and the term "extra benefits"
246	means benefits in addition to or greater than those provided to
247	general employees of the municipality and in addition to those
248	in existence for firefighters on March 12, 1999.
249	(5)  Local law plans created by special act before May 27
250	23, 1939, shall be deemed to comply with this chapter.
251	(6)(2)  A ADOPTION OR REVISION OF A LOCAL LAW PLAN.-No
252	retirement plan or amendment to a retirement plan may not shall
253	be proposed for adoption unless the proposed plan or amendment
254	contains an actuarial estimate of the costs involved. The No
255	such proposed plan or proposed plan change may not shall be
256	adopted without the approval of the municipality, special fire
257	control district, or, where permitted, the Legislature. Copies
258	of the proposed plan or proposed plan change and the actuarial
259	impact statement of the proposed plan or proposed plan change
260	shall be furnished to the division before prior to the last
261	public hearing thereon. Such statement must shall also indicate
262	whether the proposed plan or proposed plan change is in
263	compliance with s. 14, Art. X of the State Constitution and
264	those provisions of part VII of chapter 112 which are not
265	expressly provided in this chapter. Notwithstanding any other
266	provision, only those local law plans created by special act of
267	legislation before prior to May 27 23, 1939, are shall be deemed
268	to meet the minimum benefits and minimum standards only in this
269	chapter.
270	(7)(3)  Notwithstanding any other provision, with respect
271	to any supplemental plan municipality:
272	(a)  Section 175.032(3)(a) does shall not apply, and a
273	local law plan and a supplemental plan may continue to use their
274	definition of compensation or salary in existence on March 12,
275	1999 the effective date of this act.
276	(b)  Section 175.061(1)(b) does shall not apply, and a
277	local law plan and a supplemental plan shall continue to be
278	administered by a board or boards of trustees numbered,
279	constituted, and selected as the board or boards were numbered,
280	constituted, and selected on December 1, 2000.
281	(c)  The election set forth in paragraph (1)(b) is shall be
282	deemed to have been made.
283	(8)(4)  The retirement plan setting forth the benefits and
284	the trust agreement, if any, covering the duties and
285	responsibilities of the trustees and the regulations of the
286	investment of funds must be in writing, and copies thereof must
287	be made available to the participants and to the general public.
288	Section 6.  Subsection (4) of section 185.02, Florida
289	Statutes, is amended to read:
290	185.02  Definitions.-For any municipality, chapter plan,
291	local law municipality, or local law plan under this chapter,
292	the following words and phrases as used in this chapter shall
293	have the following meanings, unless a different meaning is
294	plainly required by the context:
295	(4)  "Compensation" or "salary" means, for noncollectively
296	bargained service earned before July 1, 2011, or for service
297	earned under collective bargaining agreements in place before
298	July 1, 2011, the total cash remuneration including "overtime"
299	paid by the primary employer to a police officer for services
300	rendered, but not including any payments for extra duty or a
301	special detail work performed on behalf of a second party
302	employer. However, A local law plan may limit the amount of
303	overtime payments which can be used for retirement benefit
304	calculation purposes; however, but in no event shall such
305	overtime limit may not be less than 300 hours per officer per
306	calendar year. For noncollectively bargained service earned on
307	or after July 1, 2011, or for service earned under collective
308	bargaining agreements entered into on or after July 1, 2011, the
309	term has the same meaning except that overtime compensation up
310	to 300 hours per year may be included for purposes of
311	calculating retirement benefits as specified in the plan or
312	collective bargaining agreement, but payments for unused sick or
313	annual leave may not be included for purposes of calculating
314	retirement benefits.
315	(a)  Any retirement trust fund or plan that which now or
316	hereafter meets the requirements of this chapter does shall not,
317	solely by virtue of this subsection, reduce or diminish the
318	monthly retirement income otherwise payable to each police
319	officer covered by the retirement trust fund or plan.
320	(b)  The member's compensation or salary contributed as
321	employee-elective salary reductions or deferrals to any salary
322	reduction, deferred compensation, or tax-sheltered annuity
323	program authorized under the Internal Revenue Code shall be
324	deemed to be the compensation or salary the member would receive
325	if he or she were not participating in such program and shall be
326	treated as compensation for retirement purposes under this
327	chapter.
328	(c)  For any person who first becomes a member in any plan
329	year beginning on or after January 1, 1996, compensation for
330	that any plan year may shall not include any amounts in excess
331	of the Internal Revenue Code s. 401(a)(17) limitation, (as
332	amended by the Omnibus Budget Reconciliation Act of 1993), which
333	limitation of $150,000 shall be adjusted as required by federal
334	law for qualified government plans and shall be further adjusted
335	for changes in the cost of living in the manner provided by
336	Internal Revenue Code s. 401(a)(17)(B). For any person who first
337	became a member before prior to the first plan year beginning on
338	or after January 1, 1996, the limitation on compensation may
339	shall be not be less than the maximum compensation amount that
340	was allowed to be taken into account under the plan as in effect
341	on July 1, 1993, which limitation shall be adjusted for changes
342	in the cost of living since 1989 in the manner provided by
343	Internal Revenue Code s. 401(a)(17)(1991).
344	Section 7.  Subsections (4), (5), (6), and (7) of section
345	185.05, Florida Statutes, are renumbered as subsections (5),
346	(6), (7), and (8), respectively, and a new subsection (4) is
347	added to that section, to read:
348	185.05  Board of trustees; members; terms of office;
349	meetings; legal entity; costs; attorney's fees.-For any
350	municipality, chapter plan, local law municipality, or local law
351	plan under this chapter:
352	(4)  The board of trustees shall:
353	(a)  Provide a detailed accounting report of its expenses
354	for each fiscal year to the plan sponsor and the Department of
355	Management Services and shall make the report available to every
356	member of the plan. The report must include, but need not be
357	limited to, all administrative expenses which, for purposes of
358	this subsection, are all expenses relating to any legal counsel,
359	actuary, plan administrator, and all other consultants, and all
360	travel and other expenses paid to or on behalf of the members of
361	the board of trustees or anyone else on behalf of the plan.
362	(b)  Submit its proposed administrative expense budget for
363	each fiscal year at least 120 days before the beginning of the
364	fiscal year to the plan sponsor for review and modification. The
365	administrative expense budget is effective only upon approval by
366	the plan sponsor and must regulate the administrative expenses
367	of the board of trustees. The board of trustees may not amend
368	the budget without the prior approval of the plan sponsor.
369	Section 8.  Subsection (6) of section 185.06, Florida
370	Statutes, is amended to read:
371	185.06  General powers and duties of board of trustees.-For
372	any municipality, chapter plan, local law municipality, or local
373	law plan under this chapter:
374	(6)  To assist the board in meeting its responsibilities
375	under this chapter, the board, if it so elects, and subject to
376	s. 185.05(4), may:
377	(a)  Employ independent legal counsel at the pension fund's
378	expense.
379	(b)  Employ an independent actuary, as defined in s.
380	185.02(8), at the pension fund's expense.
381	(c)  Employ such independent professional, technical, or
382	other advisers as it deems necessary at the pension fund's
383	expense.
384
385	If the board chooses to use the municipality's or special
386	district's legal counsel or actuary, or chooses to use any of
387	the municipality's other professional, technical, or other
388	advisers, it must do so only under terms and conditions
389	acceptable to the board.
390	Section 9.  Paragraph (b) of subsection (2) of section
391	185.07, Florida Statutes, is amended to read:
392	185.07  Creation and maintenance of fund.-For any
393	municipality, chapter plan, local law municipality, or local law
394	plan under this chapter:
395	(2)  Member contribution rates may be adjusted as follows:
396	(b)  Police officer member contributions may be increased
397	by consent of the members' collective bargaining representative
398	or, if none, by majority consent of police officer members of
399	the fund to provide greater benefits.
400
401	Nothing in this section shall be construed to require adjustment
402	of member contribution rates in effect on the date this act
403	becomes a law, including rates that exceed 5 percent of salary,
404	provided that such rates are at least one-half of 1 percent of
405	salary.
406	Section 10.  Section 185.35, Florida Statutes, is amended
407	to read:
408	185.35  Municipalities having their own pension plans for
409	police officers.-For any municipality, chapter plan, local law
410	municipality, or local law plan under this chapter, in order for
411	municipalities with their own pension plans for police officers,
412	or for police officers and firefighters where included, to
413	participate in the distribution of the tax fund established
414	pursuant to s. 185.08, local law plans must provide a benefit or
415	benefits within those pension plans for police officers, or for
416	police officers and firefighters, where included, that is in
417	addition to or greater than a pension benefit provided to
418	general employees of the municipality regardless of when such
419	additional or greater benefit was or is provided. meet the
420	minimum benefits and minimum standards set forth in this
421	chapter:
422	(1)  For the purposes of this chapter:
423	(a)  "Additional premium tax revenues" means revenues
424	received by a municipality pursuant to s. 185.10 which exceed
425	the amount received for calendar year 1997.
426	(b)  "Extra benefits" means benefits in addition to or
427	greater than those provided to general employees of the
428	municipality regardless of when such additional or greater
429	benefit was or is provided. PREMIUM TAX INCOME.-If a
430	municipality has a pension plan for police officers, or for
431	police officers and firefighters where included, which, in the
432	opinion of the division, meets the minimum benefits and minimum
433	standards set forth in this chapter, the board of trustees of
434	the pension plan, as approved by a majority of police officers
435	of the municipality, may:
436	(a)  Place the income from the premium tax in s. 185.08 in
437	such pension plan for the sole and exclusive use of its police
438	officers, or its police officers and firefighters where
439	included, where it shall become an integral part of that pension
440	plan and shall be used to pay extra benefits to the police
441	officers included in that pension plan; or
442	(b)  May place the income from the premium tax in s. 185.08
443	in a separate supplemental plan to pay extra benefits to the
444	police officers, or police officers and firefighters where
445	included, participating in such separate supplemental plan.
446	(2)  For plans that comply with the minimum benefit
447	provisions of this chapter, the additional premium tax revenues
448	provided by this chapter shall in all cases be used in its
449	entirety to:
450	(a)  Pay provide extra benefits to police officers, or to
451	police officers and firefighters, where included; or
452	(b)  Pay the unfunded actuarial accrued liabilities of the
453	plan. If the aggregate level cost method is the actuarial cost
454	method used to fund the plan, the unfunded actuarial accrued
455	liabilities shall be measured using the entry age normal cost
456	method.
457	(3)  For However, local law plans in effect on October 1,
458	1998, that do not shall be required to comply with the minimum
459	benefit provisions of this chapter, as only to the extent that
460	additional premium tax revenues become available, such revenues
461	shall be used to incrementally fund the cost of such compliance
462	as provided in s. 185.16(2).
463	(4)  If When a plan is in compliance with such minimum
464	benefit provisions, as subsequent additional tax revenues become
465	available, they shall be used to pay for provide extra benefits
466	or to pay the unfunded actuarial accrued liabilities of the
467	plan, as provided in subsection (2). For the purpose of this
468	chapter, "additional premium tax revenues" means revenues
469	received by a municipality pursuant to s. 185.10 which exceed
470	the amount received for calendar year 1997, and the term "extra
471	benefits" means benefits in addition to or greater than those
472	provided to general employees of the municipality and in
473	addition to those in existence for police officers on March 12,
474	1999.
475	(5)  Local law plans created by special act before May 27
476	23, 1939, shall be deemed to comply with this chapter.
477	(6)(2)  A ADOPTION OR REVISION OF A LOCAL LAW PLAN.-No
478	retirement plan or amendment to a retirement plan may not shall
479	be proposed for adoption unless the proposed plan or amendment
480	contains an actuarial estimate of the costs involved. The No
481	such proposed plan or proposed plan change may not shall be
482	adopted without the approval of the municipality or, where
483	permitted, the Legislature. Copies of the proposed plan or
484	proposed plan change and the actuarial impact statement of the
485	proposed plan or proposed plan change shall be furnished to the
486	division before prior to the last public hearing thereon. Such
487	statement must shall also indicate whether the proposed plan or
488	proposed plan change is in compliance with s. 14, Art. X of the
489	State Constitution and those provisions of part VII of chapter
490	112 which are not expressly provided in this chapter.
491	Notwithstanding any other provision, only those local law plans
492	created by special act of legislation before prior to May 27 23,
493	1939, are shall be deemed to meet the minimum benefits and
494	minimum standards only in this chapter.
495	(7)(3)  Notwithstanding any other provision, with respect
496	to any supplemental plan municipality:
497	(a)  Section 185.02(4)(a) does shall not apply, and a local
498	law plan and a supplemental plan may continue to use their
499	definition of compensation or salary in existence on March 12,
500	1999 the effective date of this act.
501	(b)  Section 185.05(1)(b) does shall not apply, and a local
502	law plan and a supplemental plan shall continue to be
503	administered by a board or boards of trustees numbered,
504	constituted, and selected as the board or boards were numbered,
505	constituted, and selected on December 1, 2000.
506	(c)  The election set forth in paragraph (1)(b) is shall be
507	deemed to have been made.
508	(8)(4)  The retirement plan setting forth the benefits and
509	the trust agreement, if any, covering the duties and
510	responsibilities of the trustees and the regulations of the
511	investment of funds must be in writing and copies made available
512	to the participants and to the general public.
513	Section 11.  Financial rating of local pension plans.-The
514	Division of Retirement in the Department of Management Services
515	shall develop standardized ratings for classifying the financial
516	strength of all local government defined benefit pension plans.
517	(1)  In assigning a rating to a plan, the division shall
518	consider, without limitation:
519	(a)  The plan's current and future unfunded liabilities.
520	(b)  The plan's net asset value, managed returns, and
521	funded ratio.
522	(c)  Metrics related to the sustainability of the plan,
523	including, but not limited to, the percentage that the annual
524	contribution is of the participating employee payroll.
525	(d)  Municipal bond ratings for the local government, if
526	applicable.
527	(e)  Whether the local government has reduced contribution
528	rates to the plan when the plan has an actuarial surplus.
529	(f)  Whether the local government uses any actuarial
530	surplus in the plan for obligations outside the plan.
531	(2)  The division may obtain all necessary data to
532	formulate the ratings from all relevant entities, including
533	local pension boards and local governments, all of which shall
534	cooperate with the division in supplying all necessary
535	information.
536	(3)  The ratings shall be posted on the division's website
537	in a standardized format.
538	Section 12.  Task Force on Public Employee Disability
539	Presumptions.-
540	(1)  The Task Force on Public Employee Disability
541	Presumptions is created for the purpose of developing findings
542	and issuing recommendations on the disability presumptions in
543	ss. 112.18, 175.231, and 185.34, Florida Statutes.
544	(2)  All members of the task force shall be appointed on or
545	before July 15, 2011, and the task force shall hold its first
546	meeting on or before August 15, 2011. The task force shall be
547	composed of nine members as follows:
548	(a)  Three members appointed by the President of the
549	Senate, one of whom must be an attorney in private practice who
550	has experience in the relevant laws, one of whom must be a
551	representative of organized labor and a member of a pension plan
552	under chapter 175, Florida Statutes, and one of whom must be
553	from the Florida Association of Counties.
554	(b)  Three members appointed by the Speaker of the House of
555	Representatives, one of whom must be an attorney in private
556	practice who has experience in the relevant laws, one of whom
557	must be a representative of organized labor and a member of a
558	pension plan under chapter 185, Florida Statutes, and one of
559	whom must be from the Florida League of Cities.
560	(c)  A member employed by the Office of the Auditor General
561	who has experience in local government auditing and finances.
562	(d)  A member employed by the Division of Retirement of the
563	Department of Management Services who has experience in local
564	government pension plans, appointed by the Governor.
565	(e)  A member employed by the Department of Financial
566	Services who has relevant expertise in state risk management,
567	appointed by the Chief Financial Officer.
568	(3)  The task force shall address issues, including, but
569	not limited to:
570	(a)  Data related to the operation of the statutory
571	disability presumptions.
572	(b)  The manner in which other states handle disability
573	presumptions.
574	(c)  Proposals for changes to the existing disability
575	presumptions.
576	(4)  The Department of Financial Services shall provide
577	administrative support to the task force.
578	(5)  Members of the task force shall serve without
579	compensation, but are entitled to reimbursement for per diem and
580	travel expenses in accordance with s. 112.061, Florida Statutes.
581	(6)  The task force may obtain data, information, and
582	assistance from any officer or state agency and any political
583	subdivision thereof. All such officers, agencies, and political
584	subdivisions shall provide the task force with all relevant
585	information and assistance on any matter within their knowledge
586	or control.
587	(7)  The task force shall submit a report, including
588	findings and recommendations, to the Governor, the Chief
589	Financial Officer, the President of the Senate, and the Speaker
590	of the House of Representatives by January 1, 2012. The report
591	must include specific recommendations for legislative action
592	during the 2012 Regular Session of the Legislature.
593	(8)  The task force is dissolved upon submission of its
594	report.
595	Section 13.  The Legislature finds that a proper and
596	legitimate state purpose is served when employees and retirees
597	of the state and its political subdivisions, and the dependents,
598	survivors, and beneficiaries of such employees and retirees, are
599	extended the basic protections afforded by governmental
600	retirement systems that provide fair and adequate benefits and
601	that are managed, administered, and funded in an actuarially
602	sound manner as required by s. 14, Art. X of the State
603	Constitution and part VII of chapter 112, Florida Statutes.
604	Therefore, the Legislature determines and declares that this act
605	fulfill an important state interest.
606	Section 14.  This act shall take effect July 1, 2011.

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