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HomeMy WebLinkAboutFlorida Senate 20121 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2:7 _8, .29 Florida Senate - 2012 By Senator Hays 20-00646A-12 SB 910 2012910 A bill to be entitled An act relating to public employees; amending s. 112.18, F.S.; revising conditions under which certain firefighters, law enforcement officers, correctional officers, or. correctional probations officers who suffer or have died from any of specified medical conditions are presumed to have been injured or killed accidentally and in the line of duty; revising the conditions under which the presumption with respect to disability due to any of specified diseases is against occurrence in the line of duty for purposes of workers' compensation claims; changing an evidentiary standard; amending s. 175.061, F.S.; providing duties of the board of trustees relating to the reporting of expenses and the operation under an administrative expense budget; amending s. 175.071, F.S.; revising requirements of the board relating to the employment of legal counsel, actuaries, and other advisers; amending s. 175.231, F.S.; providing medical conditions or behaviors that are appropriate for consideration in denying or overcoming the presumption of accidental disabilities or death suffered in the line of duty for firefighters; changing an evidentiary standard; amending s. 175.351, F.S.; revising provisions relating to benefits paid from the premium tax by a municipality or, special fire control,district,. . _thathas-its;,own pension, plan, providing definitions, .providing a process for determining the a'llocatibri` of, ._the_premium tax revenues to a supplemental plan; Page 1 of 27 CODING: Words otrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 30 amending s. 175.361, F.S.; providing certain powers 31 and responsibilities to municipalities and special 32 fire control districts relating to termination of 33 plans and distribution of funds; amending s. 185.02, 34 F.S.; revising the definition of the term 35 "compensation" or "salary" for purposes of police 36 officers' pensions; amending s. 185.05, F.S.; 37 authorizing a municipality to change the municipal 38 representation of the board of trustees pursuant to 39 certain requirements; providing duties of the board of 40 trustees relating to the reporting of expenses and the 41 operation under an administrative expense budget; 42 amending s. 185.06, F.S.; revising requirements of the 43 board relating to the employment of legal counsel, 44 actuaries, and other advisers; amending s. 185.34, 45 F.S.; providing medical conditions or behaviors that 46 are appropriate for -consideration in denying or 47 overcoming the presumption of accidental disabilities 48 or death suffered in the line of duty for police 49 officers; changing an evidentiary standard; amending 50 s. 185.35, F.S.; revising provisions relating to 51 benefits paid by a municipality that has its own 52 pension plan; providing definitions; providing a 53 process for determining the allocation of the premium 54 tax revenues to a supplemental plan; amending s. 55 185.37, F.S.; providing certain.pow.ers and 5.6 responsibilities to municipalities relating toJ 57 .. termination of plans and distributions of -funds' 58 :providing,.a.declaration of important state interest; Page 2 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 TSB 910 20-00646A-12 2012910 59 providing an effective date. 60 61 Be It Enacted by the Legislature of the State of Florida: 62 63 Section 1.. Section 112.18, Florida Statutes, is amended to 64 read: 65 112.18 Firefighters and law enforcement or correctional 66 officers; special provisions relative to disability.- 67 (1) (a) Any condition or impairment of health of any Florida 68 state, municipal, county, port authority, special tax district, 69 or fire control district firefighter or any law enforcement 70 officer, correctional officer, or correctional probation officer 71 as defined in s. 943.10(1), (2), or (3), who has been employed 72 by the current employer for at least 5 years and who is less 73 than 37 years of age, caused by tuberculosis, heart disease, or 74 hypertension resulting in total or partial disability or death 75 shall be presumed to have been accidental and to have been 76 suffered in the line of duty unless the contrary be shown by a 77 preponderance of the compctcnt evidence. However, any such 78 firefighter, correctional officer, correctional probation 79 officer, or law enforcement officer must have successfully 80 passed a physical examination upon entering into any such 81 service as a firefighter, correctional officer, correctional 82 probation officer, or law enforcement officer, which examination 83 failed to reveal any evidence of any such condition. Risk 84 factors and epidemiological data relating ,,t.o..:..nonwork-related 85 conditions unique -to an individual, such as blood cholesterol, 86; ,body mass index, history of tobacco- andlcohol._us _87 :`medical conditions or behaviors that are associated with the,.,;_._.,_, . Page 3 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 88 disease or condition subject to the presumption, are appropriate 89 for consideration in denying or overcoming the presumption. Such 90 presumption does not apply to benefits payable under or granted 91 in a policy.of life insurance or disability insurance, unless 92 the insurer and insured have negotiated for such additional 93 benefits to be included in the policy contract. 94 (b)1. For any workers' compensation claim filed under this 95 section and chapter 440 occurring on or after July 1, 2010, a 96 firefighter, law enforcement officer, correctional officer, or 97 correctional probation officer as defined in s. 943.10(1), (2), 98 or (3) suffering from tuberculosis, heart disease, or 99 hypertension is presumed not to have incurred such disease in 100 the line of duty as provided in this section if the firefighter, 101 law enforcement officer, correctional officer, or correctional 102 probation officer: 103 a. Departed in a material fashion from the prescribed 104 course of treatment of his or her personal physician and the 105 departure is demonstrated to have resulted in a significant 106 aggravation of the tuberculosis, heart disease, or hypertension 107 resulting in disability or increasing the disability or need for 108 medical treatment; or 109 b. Was previously compensated pursuant to this section and 110 chapter 440 for tuberculosis, heart disease, or hypertension and 111 thereafter sustains and reports a new compensable workers' 112 compensation claim under this section and chapter 440, and the 113 firefighter, law enforcement officer, correctional, officer ,or 114 ,correctional probation officer has departed in a material .115 fashion from the prescribed course of -_treatment of `an authorized al6 physician for the preexisting workers' compensation claim_.and Page 4 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12. 2012910 117 the departure is demonstrated to have resulted in a significant 118 aggravation of the tuberculosis, heart disease, or hypertension 119 resulting in disability or increasing the disability or need for 120 medical treatment. 121 2. As used.in this paragraph, "prescribed course of 122 treatment" means prescribed medical courses of action and 123 prescribed medicines for the specific disease or diseases 124 claimed and as documented in the prescribing physician's medical 125 records. 126 3. If there is a dispute as to the appropriateness of the 127 course of treatment prescribed by a physician under sub- 128 subparagraph 1.a. or sub -subparagraph 1.b. or whether a 129 departure in a material fashion from the prescribed course of 130 treatment is demonstrated to have resulted in a significant 131 aggravation of the tuberculosis, heart disease, or hypertension 132 resulting in disability or increasing the disability or need for 133 medical treatment, the firefighter, law enforcement officer, 134 correctional officer, or correctional probation officer is 135 entitled to seek an independent medical examination pursuant to 136 s. 440.13 (5) . 137 4. A firefighter, law enforcement officer, correctional 138 officer, or correctional probation officer is not entitled to 139 the presumption provided in this section unless a claim for 140 benefits is made prior to or within 180 days after leaving the 141 employment of the employing agency. 142 (2) This section authorizes. each governmental entity p ifie eg p.. i.. y ,143 s ecified in ..subsection (1) to ne otiate, olic contracts for.. 144. life _.and disability insurance to include -a"ccidental--'= death 145 benefits or double indemnity coverage which shall include the Page 5 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012, SB 910 20-00646A-12 2012910 146 presumption that any condition or impairment of health of any 147 firefighter, law enforcement officer, or correctional officer 148 caused by tuberculosis, heart disease, or hypertension resulting 149 in total or partial disability or death was accidental and 150 suffered in the line of duty, unless the contrary be shown by a 151 preponderance of the competent evidence. 152 Section 2. Subsection (8) is added to section 175.061, 153 Florida Statutes, to read: 154 175.061 Board of trustees; members; terms of office; 155 meetings; legal entity; costs; attorney's fees. —For any 156 municipality, special fire control district, chapter plan, local 157 law municipality, local law special fire control district, or 158 local law plan under this chapter: 159 (8) The board of trustees shall: 160 (a) Provide a detailed accounting report of its expenses 161 for each fiscal year to the plan sponsor and the Department of 162 Management Services and make the report available to every 163 member of the plan. The report must include, but need not be 164 limited to, all administrative expenses that, for purposes of 165 this subsection, are expenses relating to any legal counsel, 166 actuary, plan administrator, and all other consultants, and all 167 travel and other expenses paid to or on behalf of the members of 168 the board of trustees or anyone else on behalf of the plan. 169 (b) Operate under an administrative expense budget for each 170 fiscal year, provide a copy of the budget to the plan sponsor, 171 and make available a copy of the budgetto,plan members.:;before. 172 the beginning of: the fiscal year. The administrative expense .,,1,73 ;.,budget must regulate the administrative expenses 'oftheoar`d 174 --- - -- _ _ trustees. If the board of trustees. amends the administrative Page 6 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 175 expense budget, the board must provide a copy of the amended 176 budget to the plan sponsor and make available a copy of the 177 amended budget to plan members before the amendment takes 178 effect. 179 Section 3. Subsection. (7) of section 175.071, Florida 180 Statutes, is amended to read: 181 175.071 General powers and duties of board of trustees. —For 182 any municipality, special fire control district, chapter plan, 183 local law municipality, local law special fire control district, 184 or local law plan under this chapter: 185 (7) To assist the board in meeting its responsibilities 186 under this chapter, the board, if it so elects, and subject to 187 s. 175.061(8), may: 188 (a) Employ independent legal counsel at the pension fund's 189 expense. 190 (b) Employ an independent actuary, as defined in s. 191 175.032(7), at the pension fund's expense. 192 (c) Employ such independent professional, technical, or 193 other advisers as it deems necessary at the pension fund's 194 expense. 195 196 Ifthe board chooses to use the municipality's or special 197 district's legal counsel or actuary, or chooses to use any of 198 the municipality's or special district's othcr professional, 199 technical, or other advisers, it must do so only under terms and 200 conditions acceptable to the board. 201 Section 4 Section 175.231, Florida 202 read 203 l75•.231 Diseases ;of -firefighters suffered in line of duty; 2012910 Page 7 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 23,0- 23-1. 232 20-00646A-12 2012910 presumption. -For any municipality, special fire control district, chapter plan, local law municipality, local law special fire control district, or local law plan under this chapter, any condition or impairment of health of a firefighter, who has been employed by the current employer for at least 5 years and who is less than 37 years of age, caused by tuberculosis, hypertension, or heart disease resulting in total or partial disability or death shall be presumed to have been accidental and suffered in the line of duty unless the contrary is shown by a preponderance of the compctcnt evidence, provided that such firefighter shall have successfully passed a physical examination before entering into such service, which examination failed to reveal any evidence of such condition. Risk factors and epidemiological data relating to nonwork-related conditions unique to an individual, such as blood cholesterol, body mass index, history of tobacco and alcohol use, and other medical conditions or behaviors that are associated with the disease or condition subject to the presumption, are appropriate for consideration in denying or overcoming the presumption. This section shall be applicable to all firefighters only with reference to pension and retirement benefits under this chapter. Section 5. Section 175.351, Florida Statutes, is amended to read: 175.351 Municipalities and special fire control districts having their own pension plans for firefighters. -For any municipality, special fire control district,, ocal. law .....- municipality, local law special fire control district, or local law plan .under,this,.chapter, in order foi municipaland special fire control districts with their own pension plans for._. Page 8 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 233 firefighters, or for firefighters and police officers if 234 included, to participate in the distribution of the tax fund 235 established pursuant to s. 175.101, local law plans must meet 236 the minimum benefits and minimum standards set forth in this 237 chapter. 238 (1) Notwithstanding any other provision, retirement 239 benefits provided pursuant to this chapter and the use of the 240 income from the premium tax in s. 175.101 must be determined and 241 implemented in accordance with the collective bargaining 242 process, and where collective bargaining is not applicable, in 243 accordance with the pension plan, except as provided in 244 subsection (2). If the term of a collective bargaining agreement 245 ends without a new collective bargaining agreement in effect, 246 the retirement benefits of a plan operating pursuant to this 247 chapter shall revert to the minimum benefit provisions of this 248 chapter for the period of time from the end of the collective 249 bargaining agreement until the effective date of the subsequent 250 collective bargaining agreement, and the income from the premium 251 tax may be used for any retirement benefit provided pursuant to 252 this chapter as determined unilaterally by the municipality or 253 special fire- control district. If a municipality has a pension 254 pan fo crs, or a pcnsi n plan f r firefighters and 255 police officers if included, which in thc opinion of thc 256 division meets thc minimum benefits and minimum standards sct 257 forth in this chapter, thc board of trustees of thc pension 258 plan, approved by .a maj rity f fircfightcr .259 municipality, may: -T.261_ — ee-thciHco to from the pTcfr trm tax in 175:101 in s lc and exclusive use f its Page 9 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 .2.90 20-00646A-12 2012910 firefighters, or for firefighters and police officers if included, where it hall bcc me an integral part of that pension plan and shall bc used to pay cxtra benefits to the firefighters included in that pension plan; or included, participating in such separate supplemental plan. (2) ?ire premium--tax-� ey±�e � h±s ' �tiri zn— cases bc used in its entirety to provide extra benefits to included. For However, local law plans in effect on October 1, 1998, which do not provisions additional of this premium must comply with the minimum benefit chapter, as only t the extent that tax revenues become available, such revenues shall be used to incrementally fund the cost of such compliance as provided in s. 1.75.162(2)(a). If a plan is in compliance with sions, as subsequent additional Local law plans created by special act before May 27, 1939, are deemed to comply with this chapter. For the purpose of this chapter, the term= } "additional premium tax revenues" means revenues received by a municipality or special fire control district pursuant to s. 175.121 which exceed that amount received for calendar year 1997. Once a plan is in compliance with the minimum;benefit.provisions of this chapter, the provisions of subsection (1) apply. b)- �Ext f tc," means benefits in addition to or' Page 10 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 3;1J. 318: ,319 20-00646A-12 2012910 greater than those pr vidcd t general employees of the municipality and in addition to those in existence for firefighters on March 12, 1999. (3) A retirement plan or amendment to a retirement plan.may not be proposed for adoption unless the proposed plan or amendment contains an actuarial estimate of the costs involved. The Such proposed plan or proposed plan change may not be adopted without the approval of the municipality, special fire control district, or, if required where permitted, the Legislature. Copies of the proposed plan or proposed plan change and the actuarial impact statement of the proposed plan or proposed plan change shall be furnished to the division before the last public hearing thereon. Such statement must also indicate whether the proposed plan or proposed plan change is in compliance with s. 14, Art. X of the State Constitution and those provisions of part VII of chapter 112 which are not expressly providedinthis chapter. Notwithstanding any other provision, only those local law plans created by special act of legislation before May 27, 1939, are deemed to meet the minimum benefits and minimum standards only in this chapter. (4) Notwithstanding any other provision, with respect to any supplemental plan municipality: (a) A local law plan and a supplemental plan may continue to use their definition of compensation or salary in existence on March 12, 1999. (b) Section 175.061(1) (b) does not apply, and a_local law... pIanand a_suppleniental,plan shall continue to be administered -.by.a board;or.boards of trustees numbered,' constit.utedand .s.elected as-ahe,board or boards were numbered, :constituted,.and. Page 11 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 320 selected on December 1, 2000. 321 (c) The election set forth in paragraph (1) (b) is deemed to 322 have been made. 323 (d) The annual amount of, premium tax revenues allocated to 324 the supplemental plan shall be .determined through collective 325 bargaining, where applicable, and in accordance with the pension 326 plan where collective bargaining does not apply. If the term of 327 a collective bargaining agreement ends without a new collective 328 bargaining agreement in effect, the amount of premium tax 329 revenues allocated to the supplemental plan shall be determined 330 unilaterally by the municipality or special fire control 331 district for the period of time from the end of the collective 332 bargaining agreement until the effective date of the subsequent 333 collective bargaining agreement. 334 (5) The retirement plan setting forth the benefits and the 335 trust agreement, if any, covering the duties and 336 responsibilities of the trusteesand the regulations of the 337 investment of funds must be in writing, and copies made 338 available to the participants and to the general public. 339 (6) A municipality or special fire control district may 340 unilaterally establish one or more new plans, or benefit levels 341 within a plan, which provide different benefit levels for plan 342 members based on the member's date of hire if the new plan or 343 benefit level provides pension benefits that, in the aggregate, 344 meet or exceed the minimum benefits set forth in this chapter, 345 as determined by the plan's or employer'_sac.tuary. A 34.6 municipality or special fire control district may unilaterally 347- -.elect to maintain an existing plan and join the Florida 348 Retirement System_or.establish a defined -contribution retirement--. Page 12 of 27 CODING: Words otrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 349 plan for employees hired after a specified date. A municipality 350 or special fire control district choosing to operate under this 351 subsection shall use the premium tax provided under this chapter 352 for the current plan or benefit level, for any. additional plan 353 or benefit level,, for. contributions to the Florida Retirement 354 System, or for contributions to a defined contribution 355 retirement plan. 356 Section 6. Section 175.361, Florida Statutes, is amended to 357 read: 358 175.361 Termination of plan and distribution of fund. —For 359 any municipality, special fire control district, chapter plan, 360 local law municipality, local law special fire control district, 361 or local law plan under this chapter, the plan may be terminated 362 by the municipality or special fire control district. Upon 363 termination of the plan by the municipality or special fire 364 control district for any reason or because of a transfer, 365 merger, or consolidation of governmental units, services, or 366 functions as provided in chapter 121, or upon written notice by 367 the municipality or special fire control district to the board 368 of trustees that contributions under the plan are being 369 permanently discontinued, the rights of all employees to 370 benefits accrued to the dateof such termination and the amounts 371 credited tothe employees' accounts are nonforfeitable. The fund 372 shall be distributed in accordance with the following 373 procedures: 374 (1) The board of trustees, subject to prior written " 375 - approval of th-e municipality or special fire control district, 37.6 determine.the date of distribution and the asset value 377- required,to.fund all the nonforfeitable benefits after taking Page 13 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 �404 405 406: 20-00646A-12 2012910 into account the expenses of such distribution. The board shall inform the municipality or special fire control district if additional assets are required, in which event the municipality or special fire control district shall continue to financially support the plan until all nonforfeitable benefits have been funded. (2) The board of trustees, subject to prior written approval of the municipality or special fire control district, shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each firefighter entitled to benefits under the plan as specified in subsection (3). (3) The board of trustees, subject to prior written approval of the municipality or special fire control district, shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially_ computed single -sum value of such retirement income, except that if the method of distribution determined under subsection (2) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single -sum value may not be less than the employee's accumulated contributions to the plan, with interest if provided_ by:.`. theplan_ ,_.,ess:the value of any plan benefits previously paid .: _. to the employee. (4),If there is asset value remaining after t e full Page 14 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 43:4, 20-00646A-12 2012910 distribution specified in subsection (3), and after the payment of any expenses incurred with such distribution, such excess shall be returned to the municipality or special fire control district, less return to the state of -the state's contributions, provided that, if the excess is.less than the total contributions made by the municipality or special fire control district and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the municipality or special fire control district and the state. (5) The board of trustees, subject to prior written approval of the municipality or special fire control district, shall distribute, in accordance with subsection (2), the amounts determined under subsection (3). If, after 24 months after the date the plan terminated or the date the board received written notice that the contributions thereunder were being permanently discontinued', the municipality , or special fire control district or the board of trustees of the firefighters' pension trust fund affected has not complied with all the provisions in this section, the Department, of Management Services shall effect the termination of the fund in accordance with this section and in the manner having the least fiscal impact on the municipality or special fire control district. Section 7. Subsection (4) of section 185.02, Florida Statutes, is amended to read: 185.0efinitions.-For any municipality, chapter plan, ;_local ---.law municipality, or local law plan._,under,this_chapter, _-the;fo.laowing_words:and phrases as used in this chapter shall Page 15 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463. 20-00646A-12 2012910 have the following meanings, unless a different meaning is plainly required by the context: (4) "Compensation" or "salary" means, for noncollectively bargained service earned before July 1, 2011, or for service earned under collective bargaining agreements in place before July 1, 2011, the total cash remuneration including "overtime'-' paid by the primary employer to a police officer for services rendered, but not including any payments for extra duty or special detail work performed on behalf of a second party employer. A local law plan may limit the amount of overtime payments which can be used for retirement benefit calculation purposes; howcvcr, such overtime limit may n t be lcso than 300 hours per officer per calendar year. For noncollectively bargained service earned on or after July 1, 2011, or for service earned under collective bargaining agreements entered into on or after July 1, 2011, the term has the same meaning except that when calculating retirement benefits, up to 300 hours per year in overtime compensation may be included as specified in the plan or collective bargaining agreement, but payments for accrued unused sick or annual leave may not be included. (a) Any retirement trust fund or plan that meets the requirements of this chapter does not, solely by virtue of this subsection, reduce or diminish the monthly retirement income otherwise payable to each police officer covered by the retirement trust fund orplan. (b):_The-_memb.er s compensationpor sal" ary contributed as employee -elective salary reductions or de:ferrals.:_to any.--_saiary,. reduction;.:deferred compensation, or tax-sheltered:annuity Page 16 of 27 CODING: Words otrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 --491 493 20-00646A-12 2012910 program authorized under the Internal Revenue Code shall be deemed to be the compensation or salary the member would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes under this chapter. (c) For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for that plan year may not include any amounts in excess of the Internal Revenue Code s. 401(a) (17) limitation, as amended by the Omnibus Budget Reconciliation Act of 1993, which limitation of $150,000 shall be adjusted as required by federal law for qualified government.plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a)(17)(B). For any person who first became a member before the first plan year beginning on or after January 1, 1996, the limitation on compensation may not be less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code s. 401 (a) (17) (1991) . Section 8. Subsection (8) is added to section 185.05, Florida Statutes, to read: 185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorney's fees. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (8) The board of trustees shall: . (a)_Provide_a detailed accounting report of its expenses • Page 17 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 ;SB 910 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 20-00646A-12 for each fiscal year to the plan Management Services and make the 2012910 sponsor and the Department of report available to every member of the plan. The report must include, but need not be limited to, all administrative expenses that, for purposes of this subsection, are expenses relating to any legal counsel, actuary, plan administrator, and all travel and other expenses paid to or the board of trustees or anyone else other consultants, and all on behalf of the members on behalf of the plan. of (b) Operate under an administrative expense budget for each fiscal year, provide and make available a the beginning of the budget must regulate a copy of the budget to the plan sponsor, copy of the budget to plan members before fiscal year. The administrative expense the administrative expenses of the board of trustees. If the board of trustees amends the administrative expense budget, the board must provide a copy of the amended budget to the plan sponsor and make available a copy of the amended budget. to plan members before the amendment takes effect Section 9. Subsection (6) Statutes, is amended to read: 185.06 General powers and duties of section 185.06, Florida of board of trustees. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (6) To assist the board in meeting its responsibilities under this chapter, the board, if it so elects, and subject to s. 185.05 (8) , may: (a) Employ.indepe.ndent legal counsel at the.,pension fund's expense. (.b) Employ an independent actuary, as definedin s. Page 18 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 523 185.02(8), at the pension fund's expense. 524 (c) Employ such independent professional, technical, or 525 other advisers as it deems necessary at the pension fund's 526 expense. 527 528 If the board chooses to use the municipality's or special 529 district's legal counsel or actuary, or chooses to use any of 530 the municipality's other professional, technical, or other 531 advisers, it must do so only under terms and conditions 532 acceptable to the board. 533 Section 10. Section 185.34, Florida Statutes, is amended to 534 read: 535 185.34 Disability in line of duty. —For any municipality, 536 chapter plan, local law municipality, or local law plan under 537 this chapter, any condition or impairment of health of any and 538 police officer officers employed in the state, who has been 539 employed by the current employer for at least 5 years and who is 540 less than 37 years of age, caused by tuberculosis, hypertension, 541 heart disease, or hardening of the arteries, resulting in total 542 or partial disability or death, shall be presumed to be 543 accidental and suffered in line of duty unless the contrary be 544 shown by a preponderance of the competent evidence. Any. 545 condition or impairment of health caused directly or proximately 546 by exposure, which exposure occurred in the active performance 547 of duty at some definite time or place without willful 548 negligence on the part of the police officer, resulting in total r549_ .�; or: "partial disability, shall be presumed to be accidental and 550___suffered in the line of duty, provided that such police officer 551 shall have_successfully passed a physical examination upon Page 19 of 27 CODING: Words .stricken are deletions; words underlined are additions. Florida ,Senate - 2012 SB 910 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 k5_-7 8_ :5.79: 580 20-00646A-12 2012910 entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition, and, further, that such presumption shall not apply to benefits payable under or granted in a policy of life insurance or disability insurance. Risk factors and epidemiological data relating to nonwork-related conditions unique to an individual, such as blood cholesterol, body mass index, history of tobacco and alcohol use, and other medical conditions or behaviors that are associated with the disease or condition subject to the presumption, are appropriate for consideration in denying or overcoming the presumption. This section shall be applicable to all police officers only with reference to pension and retirement benefits under this chapter. Section 11. Section 185.35, Florida Statutes, is amended to read: 185.35 Municipalities having their own pension plans for police officers. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter, in order for municipalities with their own pension plans for police officers, or for police officers and firefighters if included, to participate in the distribution of the tax fund established pursuant to s. 185.08, local law plans must meet the minimum benefits and minimum standards set forth in this chapter.-- (1) Notwithstanding any other provision, retirement benefits provided pursuant to this chapter and the use of the income from.the.premium tax in s. 185.08., must be determined and.., J_implemented.,i. accordance with the collective bargaining :::.process:i::. and_wher.e collective bargaining is not applicable..,::..in accordance.. with the pension plan, except as provided in. Page 20 of 27 CODING: Words ctrickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 6 07- 608_ 609 20-00646A-12 2012910 subsection (2). If the term of a collective bargaining agreement ends without a new collective bargaining agreement in effect, the retirement benefits of a plan operating pursuant to this chapter shall revert to the minimum benefit provisions of this chapter for the period of time. from the end of the collective bargaining agreement until the effective date of the subsequent collective bargaining agreement, and the income from the premium tax may be used for any retirement benefit provided pursuant to this chapter as determined unilaterally by the municipality. If has for for a municipality a pension plan police officcrs, or fircfightcrs if includcd, in policc officcrs and which, thc thc division, thc bcncfits opinion of mccts minimum and minimum forth in this thc board standards set chapter, of trustees of thc by pension plan, as approved a majority of policc officers thc of municipality, may: (a) Placc thc inc fr in 185.08 in me m thc premium tax s. , .,e c3,,.cti. clusiyc �re-e 1 --o-e-n-19it ec sol its fircfightcrs if included, officcrs, or policc officcrs and it bcc integral f where shall me an part that pcnsi n plan and bc to benefits to thc shall uscd pay cxtra policc officcrs includcd in that pension plan; or (b) May thc income from thc in 185.08 place premium tax s. in to bcncfits a scparatc supplemental plan pay cxtra to thc fircfightcrs if policc officcrs, or policc officers and includcd, in participating such scparatc supplemental plan. (2) The tax by in premium provided this chapter .shall all bc in.._.it, entirety benefits cases uscd to providc.extra t lice to fircfightcrs if p officers, r policc officers and includcd. For local However, law plans ineffecton October 1, Page 21 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 610 611 612 613 614 615 616 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 -636 `637 b38- 20-00646A-12 2012910 1998, which do not must comply with the minimum benefit provisions of this chapter, as my to the extent that additional premium tax revenues become available, such revenues shall be. used to incrementally fund the cost of such compliance as provided in s. 185.16(2). If a plan is in compliance with ouch minimum benefit provisions, as subsequent additi nal tax revenues become available, they shall be used to provide extra benefits. Local law plans created by special act before May 27, 1939, shall be deemed to comply with this chapter. For the purpose of this chapter, the term= (a) "additional premium tax revenues" means revenues received by a municipality pursuant to s. 185.10 which exceed the amount received for calendar year 1997. Oncea plan is in compliance with the minimum benefit provisions of this chapter, the provisions of subsection (1) apply. (b) "Extra benefits" means bcncfits in additi n to or greater than th sc provided to gener.al.cmploycc3 of the municipality and in addition to th se in existence f r police officers on March 12, 1999. (3) A retirement plan or amendment to a retirement plan may not be proposed for adoption unless the proposed plan or amendment contains an actuarial estimate of the costs involved. The Such proposed plan or proposed plan change may not be adopted without the approval of the municipality or, if required where permitted, the Legislature. Copies of the proposed plan or proposed plan change and the actuarial impact statement of the proposed plan -or -.proposed plan change shall be furnished to the: 'division before the.last public hearing thereon. Such statement -Must also indicate whether the proposed -plan or,proposedplan... Page 22 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 639 change is in compliance with s. 14, Art. X of the State 640 Constitution and those provisions of part VII of chapter 112 641 which are not expressly provided in this chapter. 642 Notwithstanding any other provision, only those local law plans 643 created by special act of legislation before May 27, 193,9, are 644 deemed to meet the minimum benefits and minimum standards only 645 in this chapter. 646 (4) Notwithstanding any other provision, with respect to 647 any supplemental plan municipality: 648 (a) Scction 185.02(4)(a) does not apply, and A local law 649 plan and a supplemental plan may continue to use their 650 definition of compensation or salary in existence on March 12, 651 1999. 652 (b) Section 185.05(1) (b) does not apply, and a local law 653 plan and a supplemental plan must continue to be administered by 654 a board or boards of trustees numbered, constituted, and 655 selected as .the board or boards were numbered, constituted, and 656 selected on December 1, 2000. 657 (c) The election set forth in paragraph (1) (b) is deemed to 658 have been made. 659 (d) The annual amount of -premium tax revenues allocated to 660 the supplemental plan shall be determined through collective 661 bargaining, where applicable, and in accordance with the pension 662 plan where collective bargaining does not apply. If the term of 663 a collective bargaining agreement ends without a new collective 664 bargaining agreement in effect, the amount of premium tax 665._.revenues allocated.to the supplemental plan shall be` -determined 666 unilaterally by -the municipality for the period of time from.the 667.--:end of the collective bargaining agreement .until the effective Page 23 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 668 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 •695 696 20-00646A-12 2012910 date of the subsequent collective bargaining agreement. (5) The retirement plan setting forth the benefits and the trust agreement, if any, covering the duties and responsibilities of the trustees and the regulations of the investment of funds must be in writing and copies made available to the participants and to the general public. (6) A municipality may unilaterally establish one or more new plans, or benefit levels within a plan, which provide different benefit levels for plan members based on the member's date of hire if the new plan or benefit level provides pension benefits that, in the aggregate, meet or exceed the minimum benefits set forth in this chapter, as determined by the plan's or employer's actuary. A municipality may unilaterally.elect to maintain an existing plan and join the Florida Retirement System or establish a defined contribution retirement plan for employees hired after a specified date. A municipality choosing to operate under this subsection shall use the premium tax provided under this chapter for the current plan or benefit level, for any additional plan or benefit level, for contributions to the Florida Retirement System, or for contributions to a defined contribution retirement plan. Section 12. Section 185.37, Florida Statutes, is amended to read: 185.37 Termination of plan and distribution of fund. -For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the plan may be terminated by the -muni.cipaiity. Upon termination- of the plan -by the municipality' -for any_.reason, or because of a transfer, .merger, or consolidation=of-governmental units, services, or functions as Page 24 of 27 CODING: Words ,strickcn are deletions; words underlined are additions. Florida Senate - 2012 SB 910 20-00646A-12 2012910 697 provided in chapter 121, or upon written notice to the board of 698 trustees by the municipality that contributions under the plan 699 are being permanently discontinued, the rights of all employees 700 to benefits accrued to the date of such termination or 701 discontinuance and the amounts credited to the employees' 702 accounts are nonforfeitable. The fund shall be distributed in 703 accordance with the following procedures: 704 (1) The board of trustees, subject to prior written 705 approval of the municipality, shall determine the date of 706 distribution and the asset value required to fund all the 707 nonforfeitable benefits, after taking into account the expenses 708 of such distribution. The board shall inform the municipality if 709 additional assets are required, in which event the municipality 710 shall continue to financially support the plan until all 711 nonforfeitable benefits have been funded. 712 (2) The board of trustees, subject to prior written 713 approval of the municipality, shall determine the method of 714 distribution of the asset value, whether distribution shall be 715 by'payment in cash, by the maintenance of another or substituted 716 trust fund, by the purchase of insured annuities, or otherwise, 717 for each police officer entitled to benefits under the plan, as 718 specified in subsection (3). 719 (3) The board of trustees, subject to prior written 720 approval of the municipality, shall distribute the asset value 721 as of the date of termination in the manner set forth in this 722. subsection, on the basis that the amount required to provide any 72.3...:--_given-retirement.::income is the actuarially computed single -sum 724 value'of'such -retirement income, except.,that if.the..method of 7.2:5: distribution determined under subsection (2) 'involves the Page 25 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 75.2- 753 754 20-00646A-12 2012910 purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single -sum value may not be less than the employee's accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the employee. (4) If there is asset value remaining after the full distribution specified in subsection (3), and after payment of any expenses incurred with such distribution, such excess shall be returned to the municipality, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the municipality and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the municipality and the state. (5) The board of trustees, subject to prior written approval of themunicipality, shall distribute, in accordance with the manner of distribution determined under subsection (2), the amounts determined under subsection (3). . If, after 24 months after the date the plan terminated or the date the board received written notice that the contributions thereunder were being permanently discontinued, the municipality or the board of trustees of the municipal police officers' retirement trust fund affected has not complied with. all the provisions in this section, the Department of Management • -= -Services shall- effect -the termination of. the fund in accordance with this±section.-and in the manner having.the least..fis.cal impact on the municipality. Page 26 of 27 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 2012 SB 910 755 756 757 758 759 760 761 762 763 764 765 766 20-00646A-12 2012910 Section 13. The Legislature finds that a proper and legitimate state purpose is served when employees and retirees of the state and its political subdivisions, and the dependents, survivors, and beneficiaries of such employees and retirees are extended the basic protections afforded by governmental retirement systems that provide fair and adequate benefits and that are managed, administered, and funded in an actuarially sound manner as required by s. 14, Article X of the State Constitution and part VII of chapter 112, Florida Statutes. Therefore, the Legislature determines and declares that this act fulfills an important state interest. Section 14. This act shall take effect July 1, 2012. Page 27 of 27 CODING: Words strickcn are deletions; words underlinedare additions.