Florida Senate - 2013              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 458
       
       
       
       
       
                                Barcode 427674                          
       
       585-01499C-13                                                   
       Proposed Committee Substitute by the Committee on Governmental
       Oversight and Accountability
    1                        A bill to be entitled                      
    2         An act relating to firefighter and police officer
    3         pension plans; amending s. 175.032, F.S.; revising
    4         definitions to conform to changes made by the act and
    5         adding a definition for “defined contribution plan”;
    6         amending s. 175.071, F.S.; conforming a cross
    7         reference; amending s. 175.091, F.S.; providing for an
    8         additional mandatory payment by the municipality or
    9         special fire control district to the firefighters’
   10         pension trust fund; amending s. 175.351, F.S.,
   11         relating to municipalities and special fire control
   12         districts that have their own pension plans and want
   13         to participate in the distribution of a tax fund;
   14         revising definitions; revising how income from the
   15         premium tax must be used; requiring certain tax
   16         revenues to be placed in a defined contribution plan
   17         and used to fund special benefits; requiring plan
   18         sponsors to have a defined contribution plan in place
   19         by a certain date; amending s. 185.02, F.S.; revising
   20         definitions to conform to changes made by the act and
   21         adding a definition for “defined contribution plan”;
   22         deleting a provision allowing a local law plan to
   23         limit the amount of overtime payments which can be
   24         used for retirement benefit calculations; amending s.
   25         185.06, F.S.; conforming a cross-reference; amending
   26         s. 185.07, F.S.; providing for an additional mandatory
   27         payment by the municipality to the police officers’
   28         retirement trust fund; amending s. 185.35, F.S.,
   29         relating to municipalities that have their own pension
   30         plans for police officers and want to participate in
   31         the distribution of a tax fund; revising definitions;
   32         revising how income from the premium tax must be used;
   33         requiring certain tax revenues to be placed in a
   34         defined contribution plan and used to fund special
   35         benefits; requiring plan sponsors to have a defined
   36         contribution plan in place by a certain date;
   37         providing a declaration of important state interest;
   38         providing an effective date.
   39  
   40  Be It Enacted by the Legislature of the State of Florida:
   41  
   42         Section 1. Present subsections (6) through (18) of section
   43  175.032, Florida Statutes, are renumbered as subsections (7)
   44  through (19), respectively, a new subsection (6) is added to
   45  that section, and paragraph (c) of subsection (4) and present
   46  subsections (11) and (17) of that section are amended, and to
   47  read:
   48         175.032 Definitions.—For any municipality, special fire
   49  control district, chapter plan, local law municipality, local
   50  law special fire control district, or local law plan under this
   51  chapter, the following words and phrases have the following
   52  meanings:
   53         (4) “Creditable service” or “credited service” means the
   54  aggregate number of years of service, and fractional parts of
   55  years of service, of any firefighter, omitting intervening years
   56  and fractional parts of years when such firefighter may not have
   57  been employed by the municipality or special fire control
   58  district, subject to the following conditions:
   59         (c) Credited service under this chapter shall be provided
   60  only for service as a firefighter, as defined in subsection (8),
   61  or for military service and does not include credit for any
   62  other type of service. A municipality may, by local ordinance,
   63  or a special fire control district may, by resolution, may
   64  provide for the purchase of credit for military service prior to
   65  employment as well as for prior service as a firefighter for
   66  some other employer as long as a firefighter is not entitled to
   67  receive a benefit for such prior service as a firefighter. For
   68  purposes of determining credit for prior service as a
   69  firefighter, in addition to service as a firefighter in this
   70  state, credit may be given for federal, other state, or county
   71  service if the prior service is recognized by the Division of
   72  State Fire Marshal as provided under chapter 633, or the
   73  firefighter provides proof to the board of trustees that his or
   74  her service is equivalent to the service required to meet the
   75  definition of a firefighter under subsection (9) (8).
   76         (6) “Defined contribution plan” means the component of a
   77  local law plan to which deposits are made to provide special
   78  benefits for firefighters, or for firefighters and police
   79  officers if both are included, under this chapter. Such
   80  component is an element of a local law plan and exists in
   81  conjunction with the defined benefit component that meets the
   82  minimum benefits and minimum standards of this chapter. The
   83  retirement benefits of the defined contribution plan shall be
   84  provided through member-directed investments, in accordance with
   85  ss. 401(a), 401(k), or 457 of the Internal Revenue Code and
   86  related regulations.
   87         (12)(11) “Local law plan” means a retirement defined
   88  benefit pension plan, which includes both a defined benefit plan
   89  component and a defined contribution plan component, for
   90  firefighters, or for firefighters or police officers if both are
   91  where included, as described in s. 175.351, established by
   92  municipal ordinance, special district resolution, or special act
   93  of the Legislature, which enactment sets forth all plan
   94  provisions. Local law plan provisions may vary from the
   95  provisions of this chapter if the, provided that required
   96  minimum benefits and minimum standards of this chapter are met.
   97  However, any such variance must shall provide a greater benefit
   98  for firefighters. Actuarial valuations of local law plans shall
   99  be conducted by an enrolled actuary as provided in s.
  100  175.261(2).
  101         (18)(17) “Supplemental plan” means a plan to which deposits
  102  are made to provide extra benefits for firefighters, or for
  103  firefighters and police officers if both are where included,
  104  under this chapter. Such a plan is an element of a local law
  105  plan and exists in conjunction with a defined benefit component
  106  plan that meets the minimum benefits and minimum standards of
  107  this chapter.
  108         Section 2. Paragraph (b) of subsection (7) of section
  109  175.071, Florida Statutes, is amended to read:
  110         175.071 General powers and duties of board of trustees.—For
  111  any municipality, special fire control district, chapter plan,
  112  local law municipality, local law special fire control district,
  113  or local law plan under this chapter:
  114         (7) To assist the board in meeting its responsibilities
  115  under this chapter, the board, if it so elects, may:
  116         (b) Employ an independent enrolled actuary, as defined in
  117  s. 175.032(7), at the pension fund’s expense.
  118  
  119  If the board chooses to use the municipality’s or special
  120  district’s legal counsel or actuary, or chooses to use any of
  121  the municipality’s or special district’s other professional,
  122  technical, or other advisers, it must do so only under terms and
  123  conditions acceptable to the board.
  124         Section 3. Present paragraphs (e), (f), and (g) of
  125  subsection (1) of section 175.091, Florida Statutes, are
  126  redesignated as paragraphs (f), (g), and (h), respectively, and
  127  a new paragraph (e) is added to that subsection, to read:
  128         175.091 Creation and maintenance of fund.—For any
  129  municipality, special fire control district, chapter plan, local
  130  law municipality, local law special fire control district, or
  131  local law plan under this chapter:
  132         (1) The firefighters’ pension trust fund in each
  133  municipality and in each special fire control district shall be
  134  created and maintained in the following manner:
  135         (e) By mandatory payment by the municipality or special
  136  fire control district of the amount specified in s. 175.351(4)
  137  if the long-term funded ratio of the plan is less than 80
  138  percent as shown by the most recent valuation of the plan.
  139  
  140  Nothing in this section shall be construed to require adjustment
  141  of member contribution rates in effect on the date this act
  142  becomes a law, including rates that exceed 5 percent of salary,
  143  provided that such rates are at least one-half of 1 percent of
  144  salary.
  145         Section 4. Section 175.351, Florida Statutes, is amended to
  146  read:
  147         175.351 Municipalities and special fire control districts
  148  having their own pension plans for firefighters.—For any
  149  municipality, special fire control district, local law
  150  municipality, local law special fire control district, or local
  151  law plan under this chapter, In order for a municipality or
  152  municipalities and special fire control district that has its
  153  districts with their own pension plan plans for firefighters, or
  154  for firefighters and police officers if both are included, to
  155  participate in the distribution of the tax fund established
  156  under pursuant to s. 175.101, a local law plan and its plan
  157  sponsor plans must meet the minimum benefits and minimum
  158  standards set forth in this chapter.
  159         (1) As used in this section, the term:
  160         (a) “Additional premium tax revenues” means revenues
  161  received by a municipality or special fire control district
  162  pursuant to s. 175.121 which exceed base premium tax revenues.
  163         (b) “Base benefits” means those benefits in existence for
  164  firefighters on March 12, 1999.
  165         (c) “Base premium tax revenues” means revenues received by
  166  a municipality or special fire control district pursuant to s.
  167  175.121 equal to the amount of such revenues received for
  168  calendar year 1997.
  169         (d) “Extra benefits” means benefits in addition to or
  170  greater than those provided to general employees of the
  171  municipality and in addition to those in existence for
  172  firefighters on March 12, 1999.
  173         (e) “Special benefits” means benefits provided in a defined
  174  contribution plan.
  175         (2)(1) If a municipality has a pension plan for
  176  firefighters, or a pension plan for firefighters and police
  177  officers if both are included, which in the opinion of the
  178  division meets the minimum benefits and minimum standards set
  179  forth in this chapter, the board of trustees of the pension
  180  plan, as approved by a majority of firefighters of the
  181  municipality, must may:
  182         (a) place the income from the premium tax in s. 175.101 in
  183  such pension plan for the sole and exclusive use of its
  184  firefighters, or for firefighters and police officers if both
  185  are included, where it shall become an integral part of that
  186  pension plan and shall be used to fund benefits for firefighters
  187  as follows:
  188         (a) The base premium tax revenues must be used to fund base
  189  benefits.
  190         (b)Of the premium tax revenues received that are in excess
  191  of the amount received for the 2012 calendar year, and any
  192  accumulations of additional premium tax revenues that have not
  193  been applied to fund extra benefits:
  194         1. If the plan has a long-term funded ratio of less than 80
  195  percent as shown by the most recent valuation of the plan:
  196         a. Seventy-five percent must be used as additional
  197  contributions to pay the plan’s actuarial deficiency; and
  198         b. Twenty-five percent must be placed in a defined
  199  contribution plan to fund special benefits.
  200         2. If the plan has a long-term funded ratio of 80 percent
  201  or greater as shown by the most recent valuation of the plan,
  202  100 percent must be placed in a defined contribution plan to
  203  fund special benefits.
  204         (c) Additional premium tax revenues not described in
  205  paragraph (b) must be used to fund:
  206         1. Any minimum benefits that were not included in the base
  207  benefits; and
  208         2. Any extra benefits that were added after March 12, 1999,
  209  except as provided in subsection (4) to pay extra benefits to
  210  the firefighters included in that pension plan; or
  211         (b)Place the income from the premium tax in s. 175.101 in
  212  a separate supplemental plan to pay extra benefits to
  213  firefighters, or to firefighters and police officers if
  214  included, participating in such separate supplemental plan.
  215         (3) Insurance premium tax revenues may not be used to fund
  216  benefits provided in a defined benefit plan which were not
  217  provided by the plan as of March 1, 2013.
  218         (4) If a plan offers extra benefits, such benefits may be
  219  reduced if the plan continues to meet the base benefits of the
  220  plan and the minimum standards set forth in this chapter. The
  221  amount of insurance premium tax revenues previously used to fund
  222  extra benefits before the reduction must be used as provided in
  223  subsection (2)(b). Twenty-five percent of the amount of any
  224  mandatory contribution paid by the municipality or special fire
  225  control district that were previously used to fund extra
  226  benefits before the reduction must be used as additional
  227  contributions as specified in s. 175.091 to fund the plan’s
  228  actuarial deficiency.
  229         (5)(2) The premium tax provided by this chapter shall in
  230  all cases be used in its entirety to provide retirement extra
  231  benefits to firefighters, or to firefighters and police officers
  232  if both are included. However, local law plans in effect on
  233  October 1, 1998, must comply with the minimum benefit provisions
  234  of this chapter only to the extent that additional premium tax
  235  revenues become available to incrementally fund the cost of such
  236  compliance as provided in s. 175.162(2)(a). If a plan is in
  237  compliance with such minimum benefit provisions, as subsequent
  238  additional premium tax revenues become available, they must be
  239  used to provide extra benefits. Local law plans created by
  240  special act before May 27, 1939, are deemed to comply with this
  241  chapter. For the purpose of this chapter, the term:
  242         (a) “Additional premium tax revenues” means revenues
  243  received by a municipality or special fire control district
  244  pursuant to s. 175.121 which exceed that amount received for
  245  calendar year 1997.
  246         (b) “Extra benefits” means benefits in addition to or
  247  greater than those provided to general employees of the
  248  municipality and in addition to those in existence for
  249  firefighters on March 12, 1999.
  250         (6)(3) A retirement plan or amendment to a retirement plan
  251  may not be proposed for adoption unless the proposed plan or
  252  amendment contains an actuarial estimate of the costs involved.
  253  Such proposed plan or proposed plan change may not be adopted
  254  without the approval of the municipality, special fire control
  255  district, or, where permitted, the Legislature. Copies of the
  256  proposed plan or proposed plan change and the actuarial impact
  257  statement of the proposed plan or proposed plan change shall be
  258  furnished to the division before the last public hearing
  259  thereon. Such statement must also indicate whether the proposed
  260  plan or proposed plan change is in compliance with s. 14, Art. X
  261  of the State Constitution and those provisions of part VII of
  262  chapter 112 which are not expressly provided in this chapter.
  263  Notwithstanding any other provision, only those local law plans
  264  created by special act of legislation before May 27, 1939, are
  265  deemed to meet the minimum benefits and minimum standards only
  266  in this chapter.
  267         (7)(4) Notwithstanding any other provision, with respect to
  268  any supplemental plan municipality:
  269         (a) A local law plan and a supplemental plan may continue
  270  to use their definition of compensation or salary in existence
  271  on March 12, 1999.
  272         (b) Section 175.061(1)(b) does not apply, and a local law
  273  plan and a supplemental plan shall continue to be administered
  274  by a board or boards of trustees numbered, constituted, and
  275  selected as the board or boards were numbered, constituted, and
  276  selected on December 1, 2000.
  277         (c) The election set forth in paragraph (1)(b) is deemed to
  278  have been made.
  279         (8)(5) The retirement plan setting forth the benefits and
  280  the trust agreement, if any, covering the duties and
  281  responsibilities of the trustees and the regulations of the
  282  investment of funds must be in writing, and copies made
  283  available to the participants and to the general public.
  284         (9) In addition to the defined benefit component of the
  285  local law plan, each plan sponsor must have a defined
  286  contribution plan component within the local law plan by October
  287  1, 2013, or upon the creation date of a new participating plan.
  288  However, the plan sponsor of any plan established by special act
  289  of the Legislature has until July 1, 2014, to create a defined
  290  contribution component within the plan.
  291         Section 5. Present subsections (7) through (16) of section
  292  185.02, Florida Statutes, are renumbered as subsections (8)
  293  through (17), respectively, a new subsection (7) is added to
  294  that section, and subsection (4), paragraph (c) of subsection
  295  (5), and present subsections (10) and (15) of that section are
  296  amended, to read:
  297         185.02 Definitions.—For any municipality, chapter plan,
  298  local law municipality, or local law plan under this chapter,
  299  the following words and phrases as used in this chapter shall
  300  have the following meanings, unless a different meaning is
  301  plainly required by the context:
  302         (4) “Compensation” or “salary” means, for noncollectively
  303  bargained service earned before July 1, 2011, or for service
  304  earned under collective bargaining agreements in place before
  305  July 1, 2011, the total cash remuneration including “overtime”
  306  paid by the primary employer to a police officer for services
  307  rendered, but not including any payments for extra duty or
  308  special detail work performed on behalf of a second party
  309  employer. A local law plan may limit the amount of overtime
  310  payments which can be used for retirement benefit calculation
  311  purposes; however, such overtime limit may not be less than 300
  312  hours per officer per calendar year. For noncollectively
  313  bargained service earned on or after July 1, 2011, or for
  314  service earned under collective bargaining agreements entered
  315  into on or after July 1, 2011, the term has the same meaning
  316  except that when calculating retirement benefits, up to 300
  317  hours per year in overtime compensation may be included as
  318  specified in the plan or collective bargaining agreement, but
  319  payments for accrued unused sick or annual leave may not be
  320  included.
  321         (a) Any retirement trust fund or plan that meets the
  322  requirements of this chapter does not, solely by virtue of this
  323  subsection, reduce or diminish the monthly retirement income
  324  otherwise payable to each police officer covered by the
  325  retirement trust fund or plan.
  326         (b) The member’s compensation or salary contributed as
  327  employee-elective salary reductions or deferrals to any salary
  328  reduction, deferred compensation, or tax-sheltered annuity
  329  program authorized under the Internal Revenue Code shall be
  330  deemed to be the compensation or salary the member would receive
  331  if he or she were not participating in such program and shall be
  332  treated as compensation for retirement purposes under this
  333  chapter.
  334         (c) For any person who first becomes a member in any plan
  335  year beginning on or after January 1, 1996, compensation for
  336  that plan year may not include any amounts in excess of the
  337  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  338  the Omnibus Budget Reconciliation Act of 1993, which limitation
  339  of $150,000 shall be adjusted as required by federal law for
  340  qualified government plans and shall be further adjusted for
  341  changes in the cost of living in the manner provided by Internal
  342  Revenue Code s. 401(a)(17)(B). For any person who first became a
  343  member before the first plan year beginning on or after January
  344  1, 1996, the limitation on compensation may not be less than the
  345  maximum compensation amount that was allowed to be taken into
  346  account under the plan as in effect on July 1, 1993, which
  347  limitation shall be adjusted for changes in the cost of living
  348  since 1989 in the manner provided by Internal Revenue Code s.
  349  401(a)(17)(1991).
  350         (5) “Creditable service” or “credited service” means the
  351  aggregate number of years of service and fractional parts of
  352  years of service of any police officer, omitting intervening
  353  years and fractional parts of years when such police officer may
  354  not have been employed by the municipality subject to the
  355  following conditions:
  356         (c) Credited service under this chapter shall be provided
  357  only for service as a police officer, as defined in subsection
  358  (11), or for military service and may not include credit for any
  359  other type of service. A municipality may, by local ordinance,
  360  may provide for the purchase of credit for military service
  361  occurring before employment as well as prior service as a police
  362  officer for some other employer as long as the police officer is
  363  not entitled to receive a benefit for such other prior service
  364  as a police officer. For purposes of determining credit for
  365  prior service, in addition to service as a police officer in
  366  this state, credit may be given for federal, other state, or
  367  county service as long as such service is recognized by the
  368  Criminal Justice Standards and Training Commission within the
  369  Department of Law Enforcement as provided under chapter 943 or
  370  the police officer provides proof to the board of trustees that
  371  such service is equivalent to the service required to meet the
  372  definition of a police officer under subsection (12) (11).
  373         (7) “Defined contribution plan” means the component of a
  374  local law plan to which deposits are made to provide special
  375  benefits for police officers, or for police officers and
  376  firefighters if both are included. Such component is an element
  377  of a local law plan and exists in conjunction with the defined
  378  benefit component that meets the minimum benefits and minimum
  379  standards of this chapter. The retirement benefits of the
  380  defined contribution plan shall be provided through member
  381  directed investments, in accordance with ss. 401(a), 401(k), or
  382  457 of the Internal Revenue Code and related regulations.
  383         (11)(10) “Local law plan” means a retirement defined
  384  benefit pension plan, which includes both a defined benefit plan
  385  component and a defined contribution plan component, for police
  386  officers, or for police officers and firefighters if both are,
  387  where included, as described in s. 185.35, established by
  388  municipal ordinance or special act of the Legislature, which
  389  enactment sets forth all plan provisions. Local law plan
  390  provisions may vary from the provisions of this chapter if the,
  391  provided that required minimum benefits and minimum standards of
  392  this chapter are met. However, any such variance must shall
  393  provide a greater benefit for police officers. Actuarial
  394  valuations of local law plans shall be conducted by an enrolled
  395  actuary as provided in s. 185.221(2)(b).
  396         (16)(15) “Supplemental plan” means a plan to which deposits
  397  of the premium tax moneys as provided in s. 185.08 are made to
  398  provide extra benefits to police officers, or police officers
  399  and firefighters if both are where included, under this chapter.
  400  Such a plan is an element of a local law plan and exists in
  401  conjunction with a defined benefit component plan that meets the
  402  minimum benefits and minimum standards of this chapter.
  403         Section 6. Paragraph (b) of subsection (6) of section
  404  185.06, Florida Statutes, is amended to read:
  405         185.06 General powers and duties of board of trustees.—For
  406  any municipality, chapter plan, local law municipality, or local
  407  law plan under this chapter:
  408         (6) To assist the board in meeting its responsibilities
  409  under this chapter, the board, if it so elects, may:
  410         (b) Employ an independent enrolled actuary, as defined in
  411  s. 185.02(8), at the pension fund’s expense.
  412  
  413  If the board chooses to use the municipality’s or special
  414  district’s legal counsel or actuary, or chooses to use any of
  415  the municipality’s other professional, technical, or other
  416  advisers, it must do so only under terms and conditions
  417  acceptable to the board.
  418         Section 7. Present paragraphs (e), (f), and (g) of
  419  subsection (1) of section 185.07, Florida Statutes, are
  420  redesignated as paragraphs (f), (g), and (h), respectively, and
  421  a new paragraph (e) is added to that subsection, to read:
  422         185.07 Creation and maintenance of fund.—For any
  423  municipality, chapter plan, local law municipality, or local law
  424  plan under this chapter:
  425         (1) The municipal police officers’ retirement trust fund in
  426  each municipality described in s. 185.03 shall be created and
  427  maintained in the following manner:
  428         (e) By mandatory payment by the municipality of the amount
  429  specified in s. 185.35(4) if the long-term funded ratio of the
  430  plan is less than 80 percent as shown by the most recent
  431  valuation of the plan.
  432  
  433  Nothing in this section shall be construed to require adjustment
  434  of member contribution rates in effect on the date this act
  435  becomes a law, including rates that exceed 5 percent of salary,
  436  provided that such rates are at least one-half of 1 percent of
  437  salary.
  438         Section 8. Section 185.35, Florida Statutes, is amended to
  439  read:
  440         185.35 Municipalities having their own pension plans for
  441  police officers.—For any municipality, chapter plan, local law
  442  municipality, or local law plan under this chapter, In order for
  443  a municipality municipalities with its their own retirement plan
  444  pension plans for police officers, or for police officers and
  445  firefighters if both are included, to participate in the
  446  distribution of the tax fund established under pursuant to s.
  447  185.08, a local law plan and its plan sponsor plans must meet
  448  the minimum benefits and minimum standards set forth in this
  449  chapter:
  450         (1) As used in this section, the term:
  451         (a) “Additional premium tax revenues” means revenues
  452  received by a municipality pursuant to s. 185.10 which exceed
  453  base premium tax revenues.
  454         (b) “Base benefits” means benefits in existence for police
  455  officers on March 12, 1999.
  456         (c) “Base premium tax revenues” means revenues received by
  457  a municipality pursuant to s. 185.10 equal to the amount of such
  458  revenues received for calendar year 1997.
  459         (d) “Extra benefits” means benefits in addition to or
  460  greater than those provided to general employees of the
  461  municipality and in addition to those in existence for police
  462  officers on March 12, 1999.
  463         (e) “Special benefits” means benefits provided in a defined
  464  contribution plan.
  465         (2)(1)  If a municipality has a retirement pension plan for
  466  police officers, or for police officers and firefighters if both
  467  are included, which, in the opinion of the division, meets the
  468  minimum benefits and minimum standards set forth in this
  469  chapter, the board of trustees of the pension plan, as approved
  470  by a majority of police officers of the municipality, must may:
  471         (a) place the income from the premium tax in s. 185.08 in
  472  such pension plan for the sole and exclusive use of its police
  473  officers, or its police officers and firefighters if included,
  474  where it shall become an integral part of that pension plan and
  475  shall be used to fund benefits for police officers as follows:
  476         (a) The base premium tax revenues must be used to fund base
  477  benefits.
  478         (b)Of the premium tax revenues received that are in excess
  479  of the amount received for the 2012 calendar year, and any
  480  accumulations of additional premium tax revenues that have not
  481  been applied to fund extra benefits:
  482         1. If the plan has a long-term funded ratio of less than 80
  483  percent as shown by the most recent valuation of the plan:
  484         a. Seventy-five percent must be used as additional
  485  contributions to pay the plan’s actuarial deficiency; and
  486         b. Twenty-five percent must be placed in a defined
  487  contribution plan to fund special benefits.
  488         2. If the plan has a long-term funded ratio of 80 percent
  489  or greater as shown by the most recent valuation of the plan,
  490  100 percent must be placed in a defined contribution plan to
  491  fund special benefits.
  492         (c) Additional premium tax revenues not described in
  493  paragraph (b) must be used to fund:
  494         1. Any minimum benefits that were not included in the base
  495  benefits; and
  496         2. Any extra benefits that were added after March 12, 1999,
  497  except as provided in subsection (4) pay extra benefits to the
  498  police officers included in that pension plan; or
  499         (b)May place the income from the premium tax in s. 185.08
  500  in a separate supplemental plan to pay extra benefits to the
  501  police officers, or police officers and firefighters if
  502  included, participating in such separate supplemental plan.
  503         (3) Insurance premium tax revenues may not be used to fund
  504  benefits provided in a defined benefit plan which were not
  505  provided by the plan as of March 1, 2013.
  506         (4) If a plan offers extra benefits, such benefits may be
  507  reduced if the plan continues to meet the base benefits of the
  508  plan and the minimum standards set forth in this chapter. The
  509  amount of insurance premium tax revenues previously used to fund
  510  extra benefits before the reduction must be used as provided in
  511  subsection (2)(b). Twenty-five percent of the amount of any
  512  mandatory contribution paid by the municipality or special fire
  513  control district that were previously used to fund extra
  514  benefits before the reduction must be used as additional
  515  contributions as specified in s. 185.07 to fund the plan’s
  516  actuarial deficiency.
  517         (5)(2) The premium tax provided by this chapter shall in
  518  all cases be used in its entirety to provide extra benefits to
  519  police officers, or to police officers and firefighters if both
  520  are included. However, local law plans in effect on October 1,
  521  1998, must comply with the minimum benefit provisions of this
  522  chapter only to the extent that additional premium tax revenues
  523  become available to incrementally fund the cost of such
  524  compliance as provided in s. 185.16(2). If a plan is in
  525  compliance with such minimum benefit provisions, as subsequent
  526  additional tax revenues become available, they shall be used to
  527  provide extra benefits. Local law plans created by special act
  528  before May 27, 1939, shall be deemed to comply with this
  529  chapter. For the purpose of this chapter, the term:
  530         (a) “Additional premium tax revenues” means revenues
  531  received by a municipality pursuant to s. 185.10 which exceed
  532  the amount received for calendar year 1997.
  533         (b) “Extra benefits” means benefits in addition to or
  534  greater than those provided to general employees of the
  535  municipality and in addition to those in existence for police
  536  officers on March 12, 1999.
  537         (6)(3) A retirement plan or amendment to a retirement plan
  538  may not be proposed for adoption unless the proposed plan or
  539  amendment contains an actuarial estimate of the costs involved.
  540  Such proposed plan or proposed plan change may not be adopted
  541  without the approval of the municipality or, where permitted,
  542  the Legislature. Copies of the proposed plan or proposed plan
  543  change and the actuarial impact statement of the proposed plan
  544  or proposed plan change shall be furnished to the division
  545  before the last public hearing thereon. Such statement must also
  546  indicate whether the proposed plan or proposed plan change is in
  547  compliance with s. 14, Art. X of the State Constitution and
  548  those provisions of part VII of chapter 112 which are not
  549  expressly provided in this chapter. Notwithstanding any other
  550  provision, only those local law plans created by special act of
  551  legislation before May 27, 1939, are deemed to meet the minimum
  552  benefits and minimum standards only in this chapter.
  553         (7)(4) Notwithstanding any other provision, with respect to
  554  any supplemental plan municipality:
  555         (a) Section 185.02(4)(a) does not apply, and a local law
  556  plan and a supplemental plan may continue to use their
  557  definition of compensation or salary in existence on March 12,
  558  1999.
  559         (b) A local law plan and a supplemental plan must continue
  560  to be administered by a board or boards of trustees numbered,
  561  constituted, and selected as the board or boards were numbered,
  562  constituted, and selected on December 1, 2000.
  563         (c) The election set forth in paragraph (1)(b) is deemed to
  564  have been made.
  565         (8)(5) The retirement plan setting forth the benefits and
  566  the trust agreement, if any, covering the duties and
  567  responsibilities of the trustees and the regulations of the
  568  investment of funds must be in writing and copies made available
  569  to the participants and to the general public.
  570         (9) In addition to the defined benefit component of the
  571  local law plan, each plan sponsor must have a defined
  572  contribution plan component within the local law plan by October
  573  1, 2013, or upon the creation date of a new participating plan.
  574  However, the plan sponsor of any plan established by special act
  575  of the Legislature has until July 1, 2014, to create a defined
  576  contribution component within the plan.
  577         Section 9. The Legislature finds that a proper and
  578  legitimate state purpose is served when employees and retirees
  579  of the state and its political subdivisions, and the dependents,
  580  survivors, and beneficiaries of such employees and retirees, are
  581  extended the basic protections afforded by governmental
  582  retirement systems that provide fair and adequate benefits and
  583  that are managed, administered, and funded in an actuarially
  584  sound manner as required by s. 14, Article X of the State
  585  Constitution and part VII of chapter 112, Florida Statutes.
  586  Therefore, the Legislature determines and declares that this act
  587  fulfills an important state interest.
  588         Section 10. This act shall take effect July 1, 2013.