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.