Florida Senate - 2013                       CS for CS for SB 458
       
       
       
       By the Committees on Appropriations; and Governmental Oversight
       and Accountability; and Senators Ring and Bradley
       
       
       
       576-03574-13                                           2013458c2
    1                        A bill to be entitled                      
    2         An act relating to firefighter and police officer
    3         pension plans; amending s. 175.021, F.S.; revising the
    4         legislative declaration to require all plans to meet
    5         the requirements of ch. 175, F.S., in order to receive
    6         insurance premium tax revenues; amending s. 175.032,
    7         F.S.; revising definitions to conform to changes made
    8         by the act and adding new definitions; amending s.
    9         175.071, F.S.; conforming a cross-reference; amending
   10         s. 175.091, F.S.; revising existing payment provisions
   11         and providing for an additional mandatory payment by
   12         the municipality or special fire control district to
   13         the firefighters’ pension trust fund; amending s.
   14         175.162, F.S.; deleting a limitation on state
   15         contributions funding additional benefits; amending s.
   16         175.351, F.S., relating to municipalities and special
   17         fire control districts that have their own pension
   18         plans and want to participate in the distribution of a
   19         tax fund; revising criteria governing the use of
   20         income from the premium tax; requiring plan sponsors
   21         to have a defined contribution plan in place by a
   22         certain date; authorizing a municipality to implement
   23         certain changes to a local law plan which are contrary
   24         to ch. 175, F.S., under certain time-limited
   25         circumstances; amending s. 185.01, F.S.; revising the
   26         legislative declaration to require all plans to meet
   27         the requirements of ch. 185, F.S., in order to receive
   28         insurance premium tax revenues; amending s. 185.02,
   29         F.S.; revising definitions to conform to changes made
   30         by the act and adding new definitions; deleting a
   31         provision allowing a local law plan to limit the
   32         amount of overtime payments which can be used for
   33         retirement benefit calculations; amending s. 185.06,
   34         F.S.; conforming a cross-reference; amending s.
   35         185.07, F.S.; revising existing payment provisions and
   36         providing for an additional mandatory payment by the
   37         municipality to the police officers’ retirement trust
   38         fund; amending s. 185.16, F.S.; deleting a limitation
   39         on state contributions funding additional benefits;
   40         amending s. 185.35, F.S., relating to municipalities
   41         that have their own pension plans for police officers
   42         and want to participate in the distribution of a tax
   43         fund; revising criteria governing the use of income
   44         from the premium tax; requiring plan sponsors to have
   45         a defined contribution plan in place by a certain
   46         date; authorizing a municipality to implement certain
   47         changes to a local law plan which are contrary to ch.
   48         185, F.S., under certain time-limited circumstances;
   49         providing a declaration of important state interest;
   50         providing an effective date.
   51  
   52  Be It Enacted by the Legislature of the State of Florida:
   53  
   54         Section 1. Subsection (2) of section 175.021, Florida
   55  Statutes, is amended to read:
   56         175.021 Legislative declaration.—
   57         (2) This chapter hereby establishes, for all municipal and
   58  special district pension plans existing now or hereafter under
   59  this chapter, including chapter plans and local law plans,
   60  required minimum benefits and minimum standards for the
   61  operation and funding of such plans, hereinafter referred to as
   62  firefighters’ pension trust funds, which must be met as a
   63  condition precedent to the plan or plan sponsor receiving a
   64  distribution of insurance premium tax revenues under s. 175.121.
   65  The required minimum benefits and minimum standards for each
   66  plan as set forth in this chapter may not be diminished by local
   67  charter, ordinance, or resolution or by special act of the
   68  Legislature, or nor may the minimum benefits or minimum
   69  standards be reduced or offset by any other local, state, or
   70  federal law that may include firefighters in its operation,
   71  except as provided under s. 112.65.
   72         Section 2. Section 175.032, Florida Statutes, is amended to
   73  read:
   74         175.032 Definitions.—For any municipality, special fire
   75  control district, chapter plan, local law municipality, local
   76  law special fire control district, or local law plan under this
   77  chapter, the term following words and phrases have the following
   78  meanings:
   79         (1) “Additional premium tax revenues” means revenues
   80  received by a municipality or special fire control district
   81  pursuant to s. 175.121 which exceed base premium tax revenues.
   82         (2)(1)(a) “Average final compensation” for:
   83         (a) A full-time firefighter means one-twelfth of the
   84  average annual compensation of the 5 best years of the last 10
   85  years of creditable service before prior to retirement,
   86  termination, or death, or the career average as a full-time
   87  firefighter since July 1, 1953, whichever is greater. A year is
   88  shall be 12 consecutive months or such other consecutive period
   89  of time as is used and consistently applied.
   90         (b) “Average final compensation” for A volunteer
   91  firefighter means the average salary of the 5 best years of the
   92  last 10 best contributing years before a prior to change in
   93  status to a permanent full-time firefighter or retirement as a
   94  volunteer firefighter or the career average of a volunteer
   95  firefighter, since July 1, 1953, whichever is greater.
   96         (3) “Base benefits” means the level of benefits in
   97  existence for firefighters on March 12, 1999.
   98         (4) “Base premium tax revenues” means revenues received by
   99  a municipality or special fire control district pursuant to s.
  100  175.121 equal to the amount of such revenues received for
  101  calendar year 1997.
  102         (5)(2) “Chapter plan” means a separate defined benefit
  103  pension plan for firefighters which incorporates by reference
  104  the provisions of this chapter and has been adopted by the
  105  governing body of a municipality or special district. Except as
  106  may be specifically authorized in this chapter, the provisions
  107  of a chapter plan may not differ from the plan provisions set
  108  forth in ss. 175.021-175.341 and 175.361-175.401. Actuarial
  109  valuations of chapter plans shall be conducted by the division
  110  as provided by s. 175.261(1).
  111         (6)(3) “Compensation” or “salary” means, for
  112  noncollectively bargained service earned before July 1, 2011, or
  113  for service earned under collective bargaining agreements in
  114  place before July 1, 2011, the fixed monthly remuneration paid a
  115  firefighter. If remuneration is based on actual services
  116  rendered, as in the case of a volunteer firefighter, the term
  117  means the total cash remuneration received yearly for such
  118  services, prorated on a monthly basis. For noncollectively
  119  bargained service earned on or after July 1, 2011, or for
  120  service earned under collective bargaining agreements entered
  121  into on or after July 1, 2011, the term has the same meaning
  122  except that when calculating retirement benefits, up to 300
  123  hours per year in overtime compensation may be included as
  124  specified in the plan or collective bargaining agreement, but
  125  payments for accrued unused sick or annual leave may not be
  126  included.
  127         (a) Any retirement trust fund or plan that meets the
  128  requirements of this chapter does not, solely by virtue of this
  129  subsection, reduce or diminish the monthly retirement income
  130  otherwise payable to each firefighter covered by the retirement
  131  trust fund or plan.
  132         (b) The member’s compensation or salary contributed as
  133  employee-elective salary reductions or deferrals to any salary
  134  reduction, deferred compensation, or tax-sheltered annuity
  135  program authorized under the Internal Revenue Code shall be
  136  deemed to be the compensation or salary the member would receive
  137  if he or she were not participating in such program and shall be
  138  treated as compensation for retirement purposes under this
  139  chapter.
  140         (c) For any person who first becomes a member in any plan
  141  year beginning on or after January 1, 1996, compensation for
  142  that plan year may not include any amounts in excess of the
  143  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  144  the Omnibus Budget Reconciliation Act of 1993, which limitation
  145  of $150,000 shall be adjusted as required by federal law for
  146  qualified government plans and shall be further adjusted for
  147  changes in the cost of living in the manner provided by Internal
  148  Revenue Code s. 401(a)(17)(B). For any person who first became a
  149  member before the first plan year beginning on or after January
  150  1, 1996, the limitation on compensation may not be less than the
  151  maximum compensation amount that was allowed to be taken into
  152  account under the plan in effect on July 1, 1993, which
  153  limitation shall be adjusted for changes in the cost of living
  154  since 1989 in the manner provided by Internal Revenue Code s.
  155  401(a)(17)(1991).
  156         (7)(4) “Creditable service” or “credited service” means the
  157  aggregate number of years of service, and fractional parts of
  158  years of service, of any firefighter, omitting intervening years
  159  and fractional parts of years when such firefighter may not have
  160  been employed by the municipality or special fire control
  161  district, subject to the following conditions:
  162         (a) A No firefighter may not will receive credit for years
  163  or fractional parts of years of service if he or she has
  164  withdrawn his or her contributions to the fund for those years
  165  or fractional parts of years of service, unless the firefighter
  166  repays into the fund the amount he or she has withdrawn, plus
  167  interest determined by the board. The member shall have at least
  168  90 days after his or her reemployment to make repayment.
  169         (b) A firefighter may voluntarily leave his or her
  170  contributions in the fund for a period of 5 years after leaving
  171  the employ of the fire department, pending the possibility of
  172  being rehired by the same department, without losing credit for
  173  the time he or she has participated actively as a firefighter.
  174  If the firefighter is not reemployed as a firefighter, with the
  175  same department, within 5 years, his or her contributions shall
  176  be returned without interest.
  177         (c) Credited service under this chapter shall be provided
  178  only for service as a firefighter, as defined in subsection (8),
  179  or for military service and does not include credit for any
  180  other type of service. A municipality may, by local ordinance,
  181  or a special fire control district may, by resolution, may
  182  provide for the purchase of credit for military service prior to
  183  employment as well as for prior service as a firefighter for
  184  some other employer as long as a firefighter is not entitled to
  185  receive a benefit for such prior service as a firefighter. For
  186  purposes of determining credit for prior service as a
  187  firefighter, in addition to service as a firefighter in this
  188  state, credit may be given for federal, other state, or county
  189  service if the prior service is recognized by the Division of
  190  State Fire Marshal as provided under chapter 633, or the
  191  firefighter provides proof to the board of trustees that his or
  192  her service is equivalent to the service required to meet the
  193  definition of a firefighter under subsection (12) (8).
  194         (8)(5) “Deferred Retirement Option Plan” or “DROP” means a
  195  local law plan retirement option in which a firefighter may
  196  elect to participate. A firefighter may retire for all purposes
  197  of the plan and defer receipt of retirement benefits into a DROP
  198  account while continuing employment with his or her employer.
  199  However, a firefighter who enters the DROP and who is otherwise
  200  eligible to participate may shall not thereby be precluded from
  201  participating, or continuing to participate, in a supplemental
  202  plan in existence on, or created after, March 12, 1999 the
  203  effective date of this act.
  204         (9) “Defined contribution plan” means the component of a
  205  local law plan to which deposits are made to provide benefits
  206  for firefighters, or for firefighters and police officers if
  207  both are included. Such component is an element of a local law
  208  plan and exists in conjunction with the defined benefit
  209  component that meets the required benefits and minimum standards
  210  of this chapter. The retirement benefits of the defined
  211  contribution plan shall be provided through individual member
  212  accounts, in accordance with the applicable provisions of the
  213  Internal Revenue Code and related regulations, and are limited
  214  to the contributions made into each member’s account and the
  215  actual accumulated earnings, net of expenses, earned on the
  216  member’s account.
  217         (10)(6) “Division” means the Division of Retirement of the
  218  Department of Management Services.
  219         (11)(7) “Enrolled actuary” means an actuary who is enrolled
  220  under Subtitle C of Title III of the Employee Retirement Income
  221  Security Act of 1974 and who is a member of the Society of
  222  Actuaries or the American Academy of Actuaries.
  223         (12)(8)(a) “Firefighter” means any person employed solely
  224  by a constituted fire department of any municipality or special
  225  fire control district who is certified as a firefighter as a
  226  condition of employment in accordance with s. 633.35 and whose
  227  duty it is to extinguish fires, to protect life, or to protect
  228  property. The term includes all certified, supervisory, and
  229  command personnel whose duties include, in whole or in part, the
  230  supervision, training, guidance, and management responsibilities
  231  of full-time firefighters, part-time firefighters, or auxiliary
  232  firefighters but does not include part-time firefighters or
  233  auxiliary firefighters. However, for purposes of this chapter
  234  only, the term also includes public safety officers who are
  235  responsible for performing both police and fire services, who
  236  are certified as police officers or firefighters, and who are
  237  certified by their employers to the Chief Financial Officer as
  238  participating in this chapter before October 1, 1979. Effective
  239  October 1, 1979, public safety officers who have not been
  240  certified as participating in this chapter are considered police
  241  officers for retirement purposes and are eligible to participate
  242  in chapter 185. Any plan may provide that the fire chief has an
  243  option to participate, or not, in that plan.
  244         (b) “Volunteer firefighter” means any person whose name is
  245  carried on the active membership roll of a constituted volunteer
  246  fire department or a combination of a paid and volunteer fire
  247  department of any municipality or special fire control district
  248  and whose duty it is to extinguish fires, to protect life, and
  249  to protect property. Compensation for services rendered by a
  250  volunteer firefighter does shall not disqualify him or her as a
  251  volunteer. A person may shall not be disqualified as a volunteer
  252  firefighter solely because he or she has other gainful
  253  employment. Any person who volunteers assistance at a fire but
  254  is not an active member of a department described herein is not
  255  a volunteer firefighter within the meaning of this paragraph.
  256         (13)(9) “Firefighters’ Pension Trust Fund” means a trust
  257  fund, by whatever name known, as provided under s. 175.041, for
  258  the purpose of assisting municipalities and special fire control
  259  districts in establishing and maintaining a retirement plan for
  260  firefighters.
  261         (14)(10) “Local law municipality” is any municipality in
  262  which there exists a local law plan exists.
  263         (15)(11) “Local law plan” means a retirement defined
  264  benefit pension plan, which includes both a defined benefit plan
  265  component and a defined contribution plan component, for
  266  firefighters, or for firefighters or police officers if both are
  267  where included, as described in s. 175.351, established by
  268  municipal ordinance, special district resolution, or special act
  269  of the Legislature, which enactment sets forth all plan
  270  provisions. Local law plan provisions may vary from the
  271  provisions of this chapter if the, provided that required
  272  minimum benefits and minimum standards of this chapter are met.
  273  However, any such variance must shall provide a greater benefit
  274  for firefighters. Actuarial valuations of local law plans shall
  275  be conducted by an enrolled actuary as provided in s.
  276  175.261(2).
  277         (16)(12) “Local law special fire control district” is any
  278  special fire control district in which there exists a local law
  279  plan exists.
  280         (17) “Long-term funded ratio” or “funded ratio” means the
  281  ratio of the actuarial value of assets of the plan to the
  282  actuarial accrued liabilities of the plan, as reported in the
  283  most recent actuarial valuation of the plan, deemed to be in
  284  compliance with chapter 112 by the Department of Management
  285  Services.
  286         (18) “Minimum benefits” means the benefits set forth in ss.
  287  175.021-175.341 and ss. 175.361-175.401.
  288         (19) “Minimum standards” means the standards set forth in
  289  ss. 175.021-175.341 and ss. 175.361-175.401.
  290         (20)(13) “Property insurance” means property insurance as
  291  defined in s. 624.604 and covers real and personal property
  292  within the corporate limits of a any municipality, or within the
  293  boundaries of a any special fire control district, within the
  294  state. “Multiple peril” means a combination or package policy
  295  that includes both property and casualty coverage for a single
  296  premium.
  297         (21) “Required benefits” means the lesser of the minimum
  298  benefits set forth in this chapter and the base benefits of the
  299  plan. For local law plans created after March 1, 2013, the
  300  required benefits are the minimum benefits set forth in this
  301  chapter.
  302         (22)(14) “Retiree” or “retired firefighter” means a
  303  firefighter who has entered retirement status. For the purposes
  304  of a plan that includes a Deferred Retirement Option Plan
  305  (DROP), a firefighter who enters the DROP is shall be considered
  306  a retiree for all purposes of the plan. However, a firefighter
  307  who enters the DROP and who is otherwise eligible to participate
  308  may shall not thereby be precluded from participating, or
  309  continuing to participate, in a supplemental plan in existence
  310  on, or created after, March 12, 1999 the effective date of this
  311  act.
  312         (23)(15) “Retirement” means a firefighter’s separation from
  313  city or fire district employment as a firefighter with immediate
  314  eligibility for receipt of benefits under the plan. For purposes
  315  of a plan that includes a Deferred Retirement Option Plan
  316  (DROP), “retirement” means the date a firefighter enters the
  317  DROP.
  318         (24) “Special benefits” means benefits provided in a
  319  defined contribution plan for firefighters.
  320         (25)(16) “Special fire control district” means a special
  321  district, as defined in s. 189.403(1), established for the
  322  purposes of extinguishing fires, protecting life, and protecting
  323  property within the incorporated or unincorporated portions of a
  324  any county or combination of counties, or within any combination
  325  of incorporated and unincorporated portions of a any county or
  326  combination of counties. The term does not include any dependent
  327  or independent special district, as those terms are defined in
  328  s. 189.403(2) and (3), respectively, the employees of which are
  329  members of the Florida Retirement System pursuant to s.
  330  121.051(1) or (2).
  331         (26)(17) “Supplemental plan” means a plan to which deposits
  332  are made to provide extra benefits for firefighters, or for
  333  firefighters and police officers if both are where included
  334  under this chapter. Such a plan is an element of a local law
  335  plan and exists in conjunction with a defined benefit component
  336  plan that meets the required minimum benefits and minimum
  337  standards of this chapter. Any supplemental plan in existence on
  338  March 1, 2013, shall be deemed to be a defined contribution plan
  339  in compliance with s. 175.351(8).
  340         (27)(18) “Supplemental plan municipality” means a any local
  341  law municipality in which there existed a supplemental plan
  342  existed, of any type or nature, as of December 1, 2000.
  343         Section 3. Paragraph (b) of subsection (7) of section
  344  175.071, Florida Statutes, is amended to read:
  345         175.071 General powers and duties of board of trustees.—For
  346  any municipality, special fire control district, chapter plan,
  347  local law municipality, local law special fire control district,
  348  or local law plan under this chapter:
  349         (7) To assist the board in meeting its responsibilities
  350  under this chapter, the board, if it so elects, may:
  351         (b) Employ an independent enrolled actuary, as defined in
  352  s. 175.032(7), at the pension fund’s expense.
  353  
  354  If the board chooses to use the municipality’s or special
  355  district’s legal counsel or actuary, or chooses to use any of
  356  the municipality’s or special district’s other professional,
  357  technical, or other advisers, it must do so only under terms and
  358  conditions acceptable to the board.
  359         Section 4. Paragraphs (d) through (g) of subsection (1) of
  360  section 175.091, Florida Statutes, are amended, and a new
  361  paragraph (e) is added to that subsection, to read:
  362         175.091 Creation and maintenance of fund.—For any
  363  municipality, special fire control district, chapter plan, local
  364  law municipality, local law special fire control district, or
  365  local law plan under this chapter:
  366         (1) The firefighters’ pension trust fund in each
  367  municipality and in each special fire control district shall be
  368  created and maintained in the following manner:
  369         (d) By mandatory payment by the municipality or special
  370  fire control district of a sum equal to the normal cost of and
  371  the amount required to fund any actuarial deficiency shown by an
  372  actuarial valuation as provided in part VII of chapter 112 after
  373  taking into account the amounts described in paragraphs (b),
  374  (c), (f), (g), and (h) and the amounts of the tax proceeds
  375  described in paragraph (a) which must be used to fund defined
  376  benefit plan benefits, except as otherwise excluded from
  377  consideration in determining the mandatory payment.
  378         (e) For local law plans, and in addition to the mandatory
  379  payment specified in paragraph (d), by mandatory payment by the
  380  municipality or special fire control district of the amount
  381  specified in s. 175.351(3), if the long-term funded ratio of the
  382  plan is less than 80 percent.
  383         (f)(e) By all gifts, bequests, and devises when donated to
  384  the fund.
  385         (g)(f) By all accretions to the fund by way of interest or
  386  dividends on bank deposits, or otherwise.
  387         (h)(g) By all other sources or income now or hereafter
  388  authorized by law for the augmentation of such firefighters’
  389  pension trust fund.
  390  
  391         Nothing in this section shall be construed to require
  392  adjustment of member contribution rates in effect on the date
  393  this act becomes a law, including rates that exceed 5 percent of
  394  salary, provided that such rates are at least one-half of 1
  395  percent of salary.
  396         Section 5. Paragraph (a) of subsection (2) of section
  397  175.162, Florida Statutes, is amended to read:
  398         175.162 Requirements for retirement.—For any municipality,
  399  special fire control district, chapter plan, local law
  400  municipality, local law special fire control district, or local
  401  law plan under this chapter, any firefighter who completes 10 or
  402  more years of creditable service as a firefighter and attains
  403  age 55, or completes 25 years of creditable service as a
  404  firefighter and attains age 52, and who for such minimum period
  405  has been a member of the firefighters’ pension trust fund
  406  operating under a chapter plan or local law plan, is eligible
  407  for normal retirement benefits. Normal retirement under the plan
  408  is retirement from the service of the municipality or special
  409  fire control district on or after the normal retirement date. In
  410  such event, payment of retirement income will be governed by the
  411  following provisions of this section:
  412         (2)(a) The amount of monthly retirement income payable to a
  413  full-time firefighter who retires on or after his or her normal
  414  retirement date shall be an amount equal to the number of his or
  415  her years of credited service multiplied by 2 percent of his or
  416  her average final compensation as a full-time firefighter.
  417  However, if current state contributions pursuant to this chapter
  418  are not adequate to fund the additional benefits to meet the
  419  minimum requirements in this chapter, only such incremental
  420  increases shall be required as state moneys are adequate to
  421  provide. Such increments shall be provided as state moneys
  422  become available.
  423         Section 6. Section 175.351, Florida Statutes, is amended to
  424  read:
  425         175.351 Municipalities and special fire control districts
  426  that have having their own pension plans for firefighters.—For
  427  any municipality, special fire control district, local law
  428  municipality, local law special fire control district, or local
  429  law plan under this chapter, In order for a municipality or
  430  municipalities and special fire control district that has its
  431  districts with their own pension plan plans for firefighters, or
  432  for firefighters and police officers if both are included, to
  433  participate in the distribution of the tax fund established
  434  under pursuant to s. 175.101, a local law plan and its plan
  435  sponsor plans must meet the required minimum benefits and
  436  minimum standards set forth in this chapter.
  437         (1) If a municipality has a pension plan for firefighters,
  438  or a pension plan for firefighters and police officers if both
  439  are included, which in the opinion of the division meets the
  440  required minimum benefits and minimum standards set forth in
  441  this chapter, the board of trustees of the pension plan, must as
  442  approved by a majority of firefighters of the municipality, may:
  443         (a) place the income from the premium tax in s. 175.101 in
  444  such pension plan for the sole and exclusive use of its
  445  firefighters, or for firefighters and police officers if both
  446  are included, where it shall become an integral part of that
  447  pension plan and shall be used to fund benefits for firefighters
  448  as follows:
  449         (a) The base premium tax revenues must be used to fund base
  450  benefits.
  451         (b)Of the premium tax revenues received which are in
  452  excess of the amount received for the 2012 calendar year, and
  453  any accumulations of additional premium tax revenues that have
  454  not been applied to fund extra benefits:
  455         1. If the plan has a long-term funded ratio of less than 80
  456  percent:
  457         a. Fifty percent must be used as additional contributions
  458  to pay the plan’s actuarial deficiency and may not be considered
  459  in the determination of the mandatory payment described in s.
  460  175.091(1)(d);
  461         b. Twenty-five percent must be used to fund base benefits;
  462  and
  463         c. The remainder must be placed in a defined contribution
  464  plan to fund special benefits.
  465         2. If the plan has a long-term funded ratio of 80 percent
  466  or greater:
  467         a. Fifty percent must be used to fund base benefits; and
  468         b.The remainder must be placed in a defined contribution
  469  plan to fund special benefits.
  470         (c) Additional premium tax revenues not described in
  471  paragraph (b) must be used to fund benefits that were not
  472  included in the base benefits to pay extra benefits to the
  473  firefighters included in that pension plan; or
  474         (b) Place the income from the premium tax in s. 175.101 in
  475  a separate supplemental plan to pay extra benefits to
  476  firefighters, or to firefighters and police officers if
  477  included, participating in such separate supplemental plan.
  478         (2) Insurance premium tax revenues may not be used to fund
  479  benefits provided in a defined benefit plan which were not
  480  provided by the plan as of March 1, 2013; however, for a local
  481  law plan created after March 1, 2013, up to 50 percent of the
  482  insurance premium tax revenues may be used to fund defined
  483  benefit plan component benefits and the remainder must be used
  484  to fund defined contribution plan component benefits.
  485         (3) If a plan offers benefits in excess of its required
  486  benefits, such benefits may be reduced if the plan continues to
  487  meet the required benefits of the plan and the minimum standards
  488  set forth in this chapter. The amount of insurance premium tax
  489  revenues previously used to fund benefits in excess of the
  490  plan’s required benefits before the reduction must be used as
  491  provided in subsection (1)(b). Twenty-five percent of the amount
  492  of any mandatory contribution paid by the municipality or
  493  special fire control district which was previously used to fund
  494  benefits above the level of required benefits provided before
  495  the reduction must be used as additional contributions as
  496  specified in s. 175.091 to fund the plan’s actuarial deficiency.
  497         (4)(2) The premium tax provided by this chapter shall in
  498  all cases be used in its entirety to provide retirement extra
  499  benefits to firefighters, or to firefighters and police officers
  500  if both are included. However, local law plans in effect on
  501  October 1, 1998, must comply with the minimum benefit provisions
  502  of this chapter only to the extent that additional premium tax
  503  revenues become available to incrementally fund the cost of such
  504  compliance as provided in s. 175.162(2)(a). If a plan is in
  505  compliance with such minimum benefit provisions, as subsequent
  506  additional premium tax revenues become available, they must be
  507  used to provide extra benefits. Local law plans created by
  508  special act before May 27, 1939, are deemed to comply with this
  509  chapter. For the purpose of this chapter, the term:
  510         (a) “Additional premium tax revenues” means revenues
  511  received by a municipality or special fire control district
  512  pursuant to s. 175.121 which exceed that amount received for
  513  calendar year 1997.
  514         (b) “Extra benefits” means benefits in addition to or
  515  greater than those provided to general employees of the
  516  municipality and in addition to those in existence for
  517  firefighters on March 12, 1999.
  518         (5)(3) A retirement plan or amendment to a retirement plan
  519  may not be proposed for adoption unless the proposed plan or
  520  amendment contains an actuarial estimate of the costs involved.
  521  Such proposed plan or proposed plan change may not be adopted
  522  without the approval of the municipality, special fire control
  523  district, or, where permitted, the Legislature. Copies of the
  524  proposed plan or proposed plan change and the actuarial impact
  525  statement of the proposed plan or proposed plan change shall be
  526  furnished to the division before the last public hearing
  527  thereon. Such statement must also indicate whether the proposed
  528  plan or proposed plan change is in compliance with s. 14, Art. X
  529  of the State Constitution and those provisions of part VII of
  530  chapter 112 which are not expressly provided in this chapter.
  531  Notwithstanding any other provision, only those local law plans
  532  created by special act of legislation before May 27, 1939, are
  533  deemed to meet the minimum benefits and minimum standards only
  534  in this chapter.
  535         (6)(4) Notwithstanding any other provision, with respect to
  536  any supplemental plan municipality:
  537         (a) A local law plan and a supplemental plan may continue
  538  to use their definition of compensation or salary in existence
  539  on March 12, 1999.
  540         (b) Section 175.061(1)(b) does not apply, and a local law
  541  plan and a supplemental plan shall continue to be administered
  542  by a board or boards of trustees numbered, constituted, and
  543  selected as the board or boards were numbered, constituted, and
  544  selected on December 1, 2000.
  545         (c) The election set forth in paragraph (1)(b) is deemed to
  546  have been made.
  547         (7)(5) The retirement plan setting forth the benefits and
  548  the trust agreement, if any, covering the duties and
  549  responsibilities of the trustees and the regulations of the
  550  investment of funds must be in writing, and copies made
  551  available to the participants and to the general public.
  552         (8) In addition to the defined benefit component of the
  553  local law plan, each plan sponsor must have a defined
  554  contribution plan component within the local law plan by October
  555  1, 2013, or upon the creation date of a new participating plan.
  556  However, the plan sponsor of any plan established by special act
  557  of the Legislature has until July 1, 2014, to create a defined
  558  contribution component within the plan.
  559         (9) Notwithstanding any other provision of this chapter, a
  560  municipality or special fire control district that has
  561  implemented or proposed changes to a local law plan based on the
  562  municipality’s or district’s reliance on an interpretation of
  563  this chapter by the department on or after August 14, 2012, and
  564  before February 1, 2013, may continue the implemented changes or
  565  continue to implement proposed changes. Such reliance must be
  566  evidenced by formal correspondence between the municipality or
  567  district and the department which describes the specific changes
  568  to the local law plan, with the initial correspondence from the
  569  municipality or district dated prior to February 1, 2013. The
  570  changes to the local law plan that are otherwise contrary to the
  571  provisions of this chapter may continue in effect until the
  572  earlier of October 1, 2016, or the effective date of a
  573  collective bargaining agreement that is contrary to the changes
  574  to the local law plan.
  575         Section 7. Subsection (2) of section 185.01, Florida
  576  Statutes, is amended to read:
  577         185.01 Legislative declaration.—
  578         (2) This chapter hereby establishes, for all municipal
  579  pension plans now or hereinafter provided for under this
  580  chapter, including chapter plans and local law plans, required
  581  minimum benefits and minimum standards for the operation and
  582  funding of such plans, hereinafter referred to as municipal
  583  police officers’ retirement trust funds, which must be met as a
  584  condition precedent to the plan or plan sponsor receiving a
  585  distribution of insurance premium tax revenues under s. 185.10.
  586  The required minimum benefits and minimum standards for each
  587  plan as set forth in this chapter may not be diminished by local
  588  ordinance or by special act of the Legislature, or nor may the
  589  minimum benefits or minimum standards be reduced or offset by
  590  any other local, state, or federal plan that may include police
  591  officers in its operation, except as provided under s. 112.65.
  592         Section 8. Section 185.02, Florida Statutes, is amended to
  593  read:
  594         185.02 Definitions.—For any municipality, chapter plan,
  595  local law municipality, or local law plan under this chapter,
  596  the term following words and phrases as used in this chapter
  597  shall have the following meanings, unless a different meaning is
  598  plainly required by the context:
  599         (1) “Additional premium tax revenues” means revenues
  600  received by a municipality pursuant to s. 185.10 which exceed
  601  base premium tax revenues.
  602         (2)(1) “Average final compensation” means one-twelfth of
  603  the average annual compensation of the 5 best years of the last
  604  10 years of creditable service prior to retirement, termination,
  605  or death.
  606         (3) “Base benefits” means the level of benefits in
  607  existence for police officers on March 12, 1999.
  608         (4) “Base premium tax revenues” means revenues received by
  609  a municipality pursuant to s. 185.10 equal to the amount of such
  610  revenues received for calendar year 1997.
  611         (5)(2) “Casualty insurance” means automobile public
  612  liability and property damage insurance to be applied at the
  613  place of residence of the owner, or if the subject is a
  614  commercial vehicle, to be applied at the place of business of
  615  the owner; automobile collision insurance; fidelity bonds;
  616  burglary and theft insurance; and plate glass insurance.
  617  “Multiple peril” means a combination or package policy that
  618  includes both property coverage and casualty coverage for a
  619  single premium.
  620         (6)(3) “Chapter plan” means a separate defined benefit
  621  pension plan for police officers which incorporates by reference
  622  the provisions of this chapter and has been adopted by the
  623  governing body of a municipality as provided in s. 185.08.
  624  Except as may be specifically authorized in this chapter, the
  625  provisions of a chapter plan may not differ from the plan
  626  provisions set forth in ss. 185.01-185.341 and 185.37-185.39.
  627  Actuarial valuations of chapter plans shall be conducted by the
  628  division as provided by s. 185.221(1)(b).
  629         (7)(4) “Compensation” or “salary” means, for
  630  noncollectively bargained service earned before July 1, 2011, or
  631  for service earned under collective bargaining agreements in
  632  place before July 1, 2011, the total cash remuneration including
  633  “overtime” paid by the primary employer to a police officer for
  634  services rendered, but not including any payments for extra duty
  635  or special detail work performed on behalf of a second party
  636  employer. A local law plan may limit the amount of overtime
  637  payments which can be used for retirement benefit calculation
  638  purposes; however, such overtime limit may not be less than 300
  639  hours per officer per calendar year. For noncollectively
  640  bargained service earned on or after July 1, 2011, or for
  641  service earned under collective bargaining agreements entered
  642  into on or after July 1, 2011, the term has the same meaning
  643  except that when calculating retirement benefits, up to 300
  644  hours per year in overtime compensation may be included as
  645  specified in the plan or collective bargaining agreement, but
  646  payments for accrued unused sick or annual leave may not be
  647  included.
  648         (a) Any retirement trust fund or plan that meets the
  649  requirements of this chapter does not, solely by virtue of this
  650  subsection, reduce or diminish the monthly retirement income
  651  otherwise payable to each police officer covered by the
  652  retirement trust fund or plan.
  653         (b) The member’s compensation or salary contributed as
  654  employee-elective salary reductions or deferrals to any salary
  655  reduction, deferred compensation, or tax-sheltered annuity
  656  program authorized under the Internal Revenue Code shall be
  657  deemed to be the compensation or salary the member would receive
  658  if he or she were not participating in such program and shall be
  659  treated as compensation for retirement purposes under this
  660  chapter.
  661         (c) For any person who first becomes a member in any plan
  662  year beginning on or after January 1, 1996, compensation for
  663  that plan year may not include any amounts in excess of the
  664  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  665  the Omnibus Budget Reconciliation Act of 1993, which limitation
  666  of $150,000 shall be adjusted as required by federal law for
  667  qualified government plans and shall be further adjusted for
  668  changes in the cost of living in the manner provided by Internal
  669  Revenue Code s. 401(a)(17)(B). For any person who first became a
  670  member before the first plan year beginning on or after January
  671  1, 1996, the limitation on compensation may not be less than the
  672  maximum compensation amount that was allowed to be taken into
  673  account under the plan as in effect on July 1, 1993, which
  674  limitation shall be adjusted for changes in the cost of living
  675  since 1989 in the manner provided by Internal Revenue Code s.
  676  401(a)(17)(1991).
  677         (8)(5) “Creditable service” or “credited service” means the
  678  aggregate number of years of service and fractional parts of
  679  years of service of any police officer, omitting intervening
  680  years and fractional parts of years when such police officer may
  681  not have been employed by the municipality subject to the
  682  following conditions:
  683         (a) A No police officer may not will receive credit for
  684  years or fractional parts of years of service if he or she has
  685  withdrawn his or her contributions to the fund for those years
  686  or fractional parts of years of service, unless the police
  687  officer repays into the fund the amount he or she has withdrawn,
  688  plus interest as determined by the board. The member has shall
  689  have at least 90 days after his or her reemployment to make
  690  repayment.
  691         (b) A police officer may voluntarily leave his or her
  692  contributions in the fund for a period of 5 years after leaving
  693  the employ of the police department, pending the possibility of
  694  his or her being rehired by the same department, without losing
  695  credit for the time he or she has participated actively as a
  696  police officer. If he or she is not reemployed as a police
  697  officer with the same department within 5 years, his or her
  698  contributions shall be returned to him or her without interest.
  699         (c) Credited service under this chapter shall be provided
  700  only for service as a police officer, as defined in subsection
  701  (11), or for military service and may not include credit for any
  702  other type of service. A municipality may, by local ordinance,
  703  may provide for the purchase of credit for military service
  704  occurring before employment as well as prior service as a police
  705  officer for some other employer as long as the police officer is
  706  not entitled to receive a benefit for such other prior service
  707  as a police officer. For purposes of determining credit for
  708  prior service, in addition to service as a police officer in
  709  this state, credit may be given for federal, other state, or
  710  county service as long as such service is recognized by the
  711  Criminal Justice Standards and Training Commission within the
  712  Department of Law Enforcement as provided under chapter 943 or
  713  the police officer provides proof to the board of trustees that
  714  such service is equivalent to the service required to meet the
  715  definition of a police officer under subsection (16) (11).
  716         (d) In determining the creditable service of a any police
  717  officer, credit for up to 5 years of the time spent in the
  718  military service of the Armed Forces of the United States shall
  719  be added to the years of actual service, if:
  720         1. The police officer is in the active employ of the
  721  municipality before prior to such service and leaves a position,
  722  other than a temporary position, for the purpose of voluntary or
  723  involuntary service in the Armed Forces of the United States.
  724         2. The police officer is entitled to reemployment under the
  725  provisions of the Uniformed Services Employment and Reemployment
  726  Rights Act.
  727         3. The police officer returns to his or her employment as a
  728  police officer of the municipality within 1 year after from the
  729  date of his or her release from such active service.
  730         (9)(6) “Deferred Retirement Option Plan” or “DROP” means a
  731  local law plan retirement option in which a police officer may
  732  elect to participate. A police officer may retire for all
  733  purposes of the plan and defer receipt of retirement benefits
  734  into a DROP account while continuing employment with his or her
  735  employer. However, a police officer who enters the DROP and who
  736  is otherwise eligible to participate may shall not thereby be
  737  precluded from participating, or continuing to participate, in a
  738  supplemental plan in existence on, or created after, March 12,
  739  1999 the effective date of this act.
  740         (10) “Defined contribution plan” means the component of a
  741  local law plan to which deposits are made to provide benefits
  742  for police officers, or for police officers and firefighters if
  743  both are included. Such component is an element of a local law
  744  plan and exists in conjunction with the defined benefit
  745  component that meets the required benefits and minimum standards
  746  of this chapter. The retirement benefits of the defined
  747  contribution plan shall be provided through individual member
  748  accounts, in accordance with the applicable provisions of the
  749  Internal Revenue Code and related regulations, and are limited
  750  to the contributions made into each member’s account and the
  751  actual accumulated earnings, net of expenses, earned on the
  752  member’s account.
  753         (11)(7) “Division” means the Division of Retirement of the
  754  Department of Management Services.
  755         (12)(8) “Enrolled actuary” means an actuary who is enrolled
  756  under Subtitle C of Title III of the Employee Retirement Income
  757  Security Act of 1974 and who is a member of the Society of
  758  Actuaries or the American Academy of Actuaries.
  759         (13)(9) “Local law municipality” is any municipality in
  760  which there exists a local law plan exists.
  761         (14)(10) “Local law plan” means a retirement defined
  762  benefit pension plan, which includes both a defined benefit plan
  763  component and a defined contribution plan component, for police
  764  officers, or for police officers and firefighters if both are,
  765  where included, as described in s. 185.35, established by
  766  municipal ordinance or special act of the Legislature, which
  767  enactment sets forth all plan provisions. Local law plan
  768  provisions may vary from the provisions of this chapter if the,
  769  provided that required minimum benefits and minimum standards of
  770  this chapter are met. However, any such variance must shall
  771  provide a greater benefit for police officers. Actuarial
  772  valuations of local law plans shall be conducted by an enrolled
  773  actuary as provided in s. 185.221(2)(b).
  774         (15) “Long-term funded ratio” or “funded ratio” means the
  775  ratio of the actuarial value of assets of the plan to the
  776  actuarial accrued liabilities of the plan, as reported in the
  777  most recent actuarial valuation of the plan, deemed to be in
  778  compliance with chapter 112 by the Department of Management
  779  Services.
  780         (16) “Minimum benefits” means the benefits set forth in ss.
  781  185.01-185.341 and ss. 185.37-185.50.
  782         (17) “Minimum standards” means the standards set forth in
  783  ss. 185.01-185.341 and ss. 185.37-185.50.
  784         (18)(11) “Police officer” means any person who is elected,
  785  appointed, or employed full time by a any municipality, who is
  786  certified or required to be certified as a law enforcement
  787  officer in compliance with s. 943.1395, who is vested with
  788  authority to bear arms and make arrests, and whose primary
  789  responsibility is the prevention and detection of crime or the
  790  enforcement of the penal, criminal, traffic, or highway laws of
  791  the state. The term This definition includes all certified
  792  supervisory and command personnel whose duties include, in whole
  793  or in part, the supervision, training, guidance, and management
  794  responsibilities of full-time law enforcement officers, part
  795  time law enforcement officers, or auxiliary law enforcement
  796  officers, but does not include part-time law enforcement
  797  officers or auxiliary law enforcement officers as those terms
  798  the same are defined in s. 943.10(6) and (8), respectively. For
  799  the purposes of this chapter only, the term also includes
  800  “police officer” also shall include a public safety officer who
  801  is responsible for performing both police and fire services. Any
  802  plan may provide that the police chief shall have an option to
  803  participate, or not, in that plan.
  804         (19)(12) “Police Officers’ Retirement Trust Fund” means a
  805  trust fund, by whatever name known, as provided under s. 185.03
  806  for the purpose of assisting municipalities in establishing and
  807  maintaining a retirement plan for police officers.
  808         (20) “Required benefits” means the lesser of the minimum
  809  benefits set forth in this chapter and the base benefits of the
  810  plan. For local law plans created after March 1, 2013, the
  811  required benefits are the minimum benefits set forth in this
  812  chapter.
  813         (21)(13) “Retiree” or “retired police officer” means a
  814  police officer who has entered retirement status. For the
  815  purposes of a plan that includes a Deferred Retirement Option
  816  Plan (DROP), a police officer who enters the DROP is shall be
  817  considered a retiree for all purposes of the plan. However, a
  818  police officer who enters the DROP and who is otherwise eligible
  819  to participate may shall not thereby be precluded from
  820  participating, or continuing to participate, in a supplemental
  821  plan in existence on, or created after, March 12, 1999 the
  822  effective date of this act.
  823         (22)(14) “Retirement” means a police officer’s separation
  824  from city employment as a police officer with immediate
  825  eligibility for receipt of benefits under the plan. For purposes
  826  of a plan that includes a Deferred Retirement Option Plan
  827  (DROP), “retirement” means the date a police officer enters the
  828  DROP.
  829         (23) “Special benefits” means benefits provided in a
  830  defined contribution plan for police officers.
  831         (24)(15) “Supplemental plan” means a plan to which deposits
  832  of the premium tax moneys as provided in s. 185.08 are made to
  833  provide extra benefits to police officers, or police officers
  834  and firefighters if both are where included, under this chapter.
  835  Such a plan is an element of a local law plan and exists in
  836  conjunction with a defined benefit component plan that meets the
  837  required minimum benefits and minimum standards of this chapter.
  838  Any supplemental plan in existence on March 1, 2013, shall be
  839  deemed to be defined contribution plan in compliance with s.
  840  185.35(8).
  841         (25)(16) “Supplemental plan municipality” means a any local
  842  law municipality in which there existed a supplemental plan
  843  existed as of December 1, 2000.
  844         Section 9. Paragraph (b) of subsection (6) of section
  845  185.06, Florida Statutes, is amended to read:
  846         185.06 General powers and duties of board of trustees.—For
  847  any municipality, chapter plan, local law municipality, or local
  848  law plan under this chapter:
  849         (6) To assist the board in meeting its responsibilities
  850  under this chapter, the board, if it so elects, may:
  851         (b) Employ an independent enrolled actuary, as defined in
  852  s. 185.02(8), at the pension fund’s expense.
  853  
  854         If the board chooses to use the municipality’s or special
  855  district’s legal counsel or actuary, or chooses to use any of
  856  the municipality’s other professional, technical, or other
  857  advisers, it must do so only under terms and conditions
  858  acceptable to the board.
  859         Section 10. Paragraphs (d) through (g) of subsection (1) of
  860  section 185.07, Florida Statutes, are amended, and a new
  861  paragraph (e) is added to that subsection, to read:
  862         185.07 Creation and maintenance of fund.—For any
  863  municipality, chapter plan, local law municipality, or local law
  864  plan under this chapter:
  865         (1) The municipal police officers’ retirement trust fund in
  866  each municipality described in s. 185.03 shall be created and
  867  maintained in the following manner:
  868         (d) By payment by the municipality or other sources of a
  869  sum equal to the normal cost and the amount required to fund any
  870  actuarial deficiency shown by an actuarial valuation as provided
  871  in part VII of chapter 112 after taking into account the amounts
  872  described in paragraphs (b), (c), (f), (g), and (h) and the
  873  amounts of the tax proceeds described in paragraph (a) which
  874  must be used to fund defined benefit plan benefits, except as
  875  otherwise excluded from consideration in determining the
  876  mandatory payment.
  877         (e) For local law plans, and in addition to the mandatory
  878  payment described in paragraph (d), by mandatory payment by the
  879  municipality of the amount specified in s. 185.35(3), if the
  880  long-term funded ratio of the plan is less than 80 percent.
  881         (f)(e) By all gifts, bequests and devises when donated to
  882  the fund.
  883         (g)(f) By all accretions to the fund by way of interest or
  884  dividends on bank deposits or otherwise.
  885         (h)(g) By all other sources of income now or hereafter
  886  authorized by law for the augmentation of such municipal police
  887  officers’ retirement trust fund.
  888  
  889         Nothing in this section shall be construed to require
  890  adjustment of member contribution rates in effect on the date
  891  this act becomes a law, including rates that exceed 5 percent of
  892  salary, provided that such rates are at least one-half of 1
  893  percent of salary.
  894         Section 11. Subsection (2) of section 185.16, Florida
  895  Statutes, is amended to read:
  896         185.16 Requirements for retirement.—For any municipality,
  897  chapter plan, local law municipality, or local law plan under
  898  this chapter, any police officer who completes 10 or more years
  899  of creditable service as a police officer and attains age 55, or
  900  completes 25 years of creditable service as a police officer and
  901  attains age 52, and for such period has been a member of the
  902  retirement fund is eligible for normal retirement benefits.
  903  Normal retirement under the plan is retirement from the service
  904  of the city on or after the normal retirement date. In such
  905  event, for chapter plans and local law plans, payment of
  906  retirement income will be governed by the following provisions
  907  of this section:
  908         (2) The amount of the monthly retirement income payable to
  909  a police officer who retires on or after his or her normal
  910  retirement date shall be an amount equal to the number of the
  911  police officer’s years of credited service multiplied by 2
  912  percent of his or her average final compensation. However, if
  913  current state contributions pursuant to this chapter are not
  914  adequate to fund the additional benefits to meet the minimum
  915  requirements in this chapter, only increment increases shall be
  916  required as state moneys are adequate to provide. Such
  917  increments shall be provided as state moneys become available.
  918         Section 12. Section 185.35, Florida Statutes, is amended to
  919  read:
  920         185.35 Municipalities that have having their own retirement
  921  pension plans for police officers.—For any municipality, chapter
  922  plan, local law municipality, or local law plan under this
  923  chapter, In order for a municipality that has municipalities
  924  with its their own retirement plan pension plans for police
  925  officers, or for police officers and firefighters if both are
  926  included, to participate in the distribution of the tax fund
  927  established under pursuant to s. 185.08, a local law plan and
  928  its plan sponsor plans must meet the required minimum benefits
  929  and minimum standards set forth in this chapter:
  930         (1) If a municipality has a retirement pension plan for
  931  police officers, or for police officers and firefighters if both
  932  are included, which, in the opinion of the division, meets the
  933  required minimum benefits and minimum standards set forth in
  934  this chapter, the board of trustees of the pension plan must, as
  935  approved by a majority of police officers of the municipality,
  936  may:
  937         (a) place the income from the premium tax in s. 185.08 in
  938  such pension plan for the sole and exclusive use of its police
  939  officers, or its police officers and firefighters if included,
  940  where it shall become an integral part of that pension plan and
  941  shall be used to fund benefits for police officers as follows:
  942         (a) The base premium tax revenues must be used to fund base
  943  benefits.
  944         (b)Of the premium tax revenues received which are in
  945  excess of the amount received for the 2012 calendar year, and
  946  any accumulations of additional premium tax revenues which have
  947  not been applied to fund extra benefits:
  948         1. If the plan has a long-term funded ratio of less than 80
  949  percent:
  950         a. Fifty percent must be used as additional contributions
  951  to pay the plan’s actuarial deficiency and may not be considered
  952  in the determination of the mandatory payment described in s.
  953  185.07(1)(d);
  954         b. Twenty-five percent must be used to fund base benefits;
  955  and
  956         c. The remainder must be placed in a defined contribution
  957  plan to fund special benefits.
  958         2. If the plan has a long-term funded ratio of 80 percent
  959  or greater:
  960         a. Fifty percent must be used to fund base benefits; and
  961         b. The remainder must be placed in a defined contribution
  962  plan to fund special benefits.
  963         (c) Additional premium tax revenues not described in
  964  paragraph (b) must be used to fund benefits that were not
  965  included in the base benefits pay extra benefits to the police
  966  officers included in that pension plan; or
  967         (b) May place the income from the premium tax in s. 185.08
  968  in a separate supplemental plan to pay extra benefits to the
  969  police officers, or police officers and firefighters if
  970  included, participating in such separate supplemental plan.
  971         (2) Insurance premium tax revenues may not be used to fund
  972  benefits provided in a defined benefit plan which were not
  973  provided by the plan as of March 1, 2013; however, for a local
  974  law plan created after March 1, 2013, up to 50 percent of the
  975  insurance premium tax revenues may be used to fund defined
  976  benefit plan component benefits and the remainder must be used
  977  to fund defined contribution plan component benefits.
  978         (3) If a plan offers benefits in excess of its required
  979  benefits, such benefits may be reduced if the plan continues to
  980  meet the required benefits of the plan and the minimum standards
  981  set forth in this chapter. The amount of insurance premium tax
  982  revenues previously used to fund benefits in excess of the
  983  plan’s required benefits before the reduction must be used as
  984  provided in subsection (1)(b). Twenty-five percent of the amount
  985  of any mandatory contribution paid by the municipality or
  986  special fire control district which was previously used to fund
  987  benefits above the level of required benefits provided before
  988  the reduction must be used as additional contributions as
  989  specified in s. 185.07 to fund the plan’s actuarial deficiency.
  990         (4)(2) The premium tax provided by this chapter shall in
  991  all cases be used in its entirety to provide retirement extra
  992  benefits to police officers, or to police officers and
  993  firefighters if both are included. However, local law plans in
  994  effect on October 1, 1998, must comply with the minimum benefit
  995  provisions of this chapter only to the extent that additional
  996  premium tax revenues become available to incrementally fund the
  997  cost of such compliance as provided in s. 185.16(2). If a plan
  998  is in compliance with such minimum benefit provisions, as
  999  subsequent additional tax revenues become available, they shall
 1000  be used to provide extra benefits. Local law plans created by
 1001  special act before May 27, 1939, shall be deemed to comply with
 1002  this chapter. For the purpose of this chapter, the term:
 1003         (a) “Additional premium tax revenues” means revenues
 1004  received by a municipality pursuant to s. 185.10 which exceed
 1005  the amount received for calendar year 1997.
 1006         (b) “Extra benefits” means benefits in addition to or
 1007  greater than those provided to general employees of the
 1008  municipality and in addition to those in existence for police
 1009  officers on March 12, 1999.
 1010         (5)(3) A retirement plan or amendment to a retirement plan
 1011  may not be proposed for adoption unless the proposed plan or
 1012  amendment contains an actuarial estimate of the costs involved.
 1013  Such proposed plan or proposed plan change may not be adopted
 1014  without the approval of the municipality or, where permitted,
 1015  the Legislature. Copies of the proposed plan or proposed plan
 1016  change and the actuarial impact statement of the proposed plan
 1017  or proposed plan change shall be furnished to the division
 1018  before the last public hearing thereon. Such statement must also
 1019  indicate whether the proposed plan or proposed plan change is in
 1020  compliance with s. 14, Art. X of the State Constitution and
 1021  those provisions of part VII of chapter 112 which are not
 1022  expressly provided in this chapter. Notwithstanding any other
 1023  provision, only those local law plans created by special act of
 1024  legislation before May 27, 1939, are deemed to meet the minimum
 1025  benefits and minimum standards only in this chapter.
 1026         (6)(4) Notwithstanding any other provision, with respect to
 1027  any supplemental plan municipality:
 1028         (a) Section 185.02(7)(a) 185.02(4)(a) does not apply, and a
 1029  local law plan and a supplemental plan may continue to use their
 1030  definition of compensation or salary in existence on March 12,
 1031  1999.
 1032         (b) A local law plan and a supplemental plan must continue
 1033  to be administered by a board or boards of trustees numbered,
 1034  constituted, and selected as the board or boards were numbered,
 1035  constituted, and selected on December 1, 2000.
 1036         (c) The election set forth in paragraph (1)(b) is deemed to
 1037  have been made.
 1038         (7)(5) The retirement plan setting forth the benefits and
 1039  the trust agreement, if any, covering the duties and
 1040  responsibilities of the trustees and the regulations of the
 1041  investment of funds must be in writing and copies made available
 1042  to the participants and to the general public.
 1043         (8) In addition to the defined benefit component of the
 1044  local law plan, each plan sponsor must have a defined
 1045  contribution plan component within the local law plan by October
 1046  1, 2013, or upon the creation date of a new participating plan.
 1047  However, the plan sponsor of any plan established by special act
 1048  of the Legislature has until July 1, 2014, to create a defined
 1049  contribution component within the plan.
 1050         (9) Notwithstanding any other provision of this chapter, a
 1051  municipality that has implemented or proposed changes to a local
 1052  law plan based on the municipality’s reliance on an
 1053  interpretation of this chapter by the department on or after
 1054  August 14, 2012 and before February 1, 2013, may continue the
 1055  implemented changes or continue to implement proposed changes.
 1056  Such reliance must be evidenced by formal correspondence between
 1057  the municipality and the department which describes the specific
 1058  changes to the local law plan, with the initial correspondence
 1059  from the municipality dated prior to February 1, 2013. The
 1060  changes to the local law plan which are otherwise contrary to
 1061  the provisions of this chapter may continue in effect until the
 1062  earlier of October 1, 2016, or the effective date of a
 1063  collective bargaining agreement that is contrary to the changes
 1064  to the local law plan.
 1065         Section 13. The Legislature finds that a proper and
 1066  legitimate state purpose is served when employees and retirees
 1067  of the state and its political subdivisions, and the dependents,
 1068  survivors, and beneficiaries of such employees and retirees, are
 1069  extended the basic protections afforded by governmental
 1070  retirement systems that provide fair and adequate benefits and
 1071  that are managed, administered, and funded in an actuarially
 1072  sound manner as required by s. 14, Article X of the State
 1073  Constitution and part VII of chapter 112, Florida Statutes.
 1074  Therefore, the Legislature determines and declares that this act
 1075  fulfills an important state interest.
 1076         Section 14. This act shall take effect July 1, 2013.