Bill Text: FL H1319 | 2010 | Regular Session | Introduced

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Bill Title: Governmental Retirement Systems

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-30 - Died in Committee on Governmental Affairs Policy (EDCA) [H1319 Detail]

Download: Florida-2010-H1319-Introduced.html

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HB 1319

1	A bill to be entitled
2	An act relating to governmental retirement systems;
3	providing a short title; creating s. 112.049, F.S.;
4	requiring certain public employees to contribute an
5	additional specified percentage of their gross income to
6	the primary public-sponsored retirement plan in which they
7	are participating; amending s. 112.63, F.S.; providing
8	requirements for certain retirement system or plan
9	actuarial reports; providing requirements for certain
10	system or plan experience studies; providing for the
11	closing of certain plans; amending s. 112.65, F.S.;
12	providing a maximum retirement benefit for certain
13	retirement system or plan members hired after a specified
14	date; prohibiting the factoring of overtime and certain
15	other compensation into any pension benefit; amending s.
16	112.66, F.S.; requiring the board of trustees of each
17	retirement system or plan to provide a detailed accounting
18	report of its expenses for each fiscal year to the plan
19	sponsor and to the Department of Management Services;
20	providing reporting requirements; requiring the board of
21	trustees of each retirement system or plan to provide an
22	administrative expense budget to the plan sponsor;
23	amending s. 121.021, F.S.; redefining the terms
24	"compensation," "average final compensation," and "normal
25	retirement date" for purposes of the benefit retirement
26	program or the Public Employee Optional Retirement Program
27	of the Florida Retirement System; amending s. 121.0515,
28	F.S.; conforming provisions to changes made by this act;
29	amending s. 121.052, F.S.; conforming provisions to
30	changes made by this act; amending s. 121.091, F.S.;
31	providing limitations on benefits payable to certain
32	members of the system; prohibiting the factoring of
33	overtime and certain other compensation into any pension
34	benefit; revising formula for the determination of
35	credible years of service for certain members; conforming
36	a cross-reference; amending s. 121.4501, F.S.; conforming
37	provisions to changes made by this act; amending s.
38	122.02, F.S.; redefining the term "average final
39	compensation" for purposes of the State and County
40	Officers and Employees' Retirement System; amending s.
41	175.032, F.S.; redefining the term "average final
42	compensation" for purposes of determining credit for prior
43	service as a firefighter; amending s. 175.061, F.S.;
44	providing that certain members of a special fire control
45	district board of trustees may not be members or
46	participants of the plan for which the board administers
47	the trust fund; amending s. 175.091, F.S.; revising
48	requirements for increasing firefighter member
49	contributions; amending s. 175.162, F.S.; conforming
50	provisions to changes made by this act; amending s.
51	175.351, F.S.; removing a cross-reference to conform to
52	changes made by the act; authorizing a municipality or
53	special fire control district to establish a defined
54	contribution retirement plan for certain purposes;
55	requiring municipalities and special fire control
56	districts with their own pension plans for firefighters to
57	provide certain extra benefits; amending s. 185.02, F.S.;
58	redefining the terms "average final compensation" and
59	"compensation" for purposes of determining credit for
60	prior service as a municipal police officer; amending s.
61	185.05, F.S.; providing that certain members of a
62	municipality board of trustees may not be members or
63	participants of the plan for which the board administers
64	the trust fund; amending s. 185.07, F.S.; revising
65	requirements for increasing police officer member
66	contributions; amending s. 185.16, F.S.; conforming
67	provisions to changes made by this act; amending s.
68	185.35, F.S.; removing a cross-reference to conform to
69	changes made by the act; authorizing a municipality to
70	establish a defined contribution retirement plan for
71	certain purposes; requiring municipalities with their own
72	pension plans for police officers to provide certain extra
73	benefits; requiring state and local government balance
74	sheets to contain certain pension information; creating
75	ch. 214, F.S., relating to truth in accounting; creating
76	s. 214.101, F.S.; providing a short title; providing
77	definitions; F.S.; creating s. 214.102, F.S.; requiring
78	the Chief Financial Officer and officials of governing
79	bodies of a political subdivision of the state to issue
80	specified reports; providing reporting requirements;
81	creating s. 214.103, F.S.; providing report submission
82	requirements; requiring the reports to be posted online
83	and made available to the public; authorizing certain
84	units of government to postpone compliance with the
85	provisions of this act under specified conditions;
86	providing effective dates.
87
88	WHEREAS, it is important for state and local governments to
89	provide reasonable retirement benefits for their employees, who
90	are their most valuable resource, and
91	WHEREAS, it is necessary for state and local governments to
92	be in an adequate financial position in order to keep the
93	retirement promises made and to fund retirement benefits, and
94	WHEREAS, state and local governments must increase the
95	predictability of, and reduce the expense of, future pension
96	obligations in order to remain financially solvent, thus
97	preserving the benefits of current employees who may have
98	already been promised certain retirement benefits, and
99	WHEREAS, citizens have a right to know, and governments
100	have an obligation to disclose, the dollar amount of all
101	retirement-related liabilities owed at any point in time, NOW,
102	THEREFORE,
103
104	Be It Enacted by the Legislature of the State of Florida:
105
106	Section 1. This act may be cited as the "Public Employee
107	Retirement Preservation Act."
108	Section 2. Section 112.049, Florida Statutes, is created
109	to read:
110	112.049 Contributions to primary public-sponsored
111	retirement plans.-All public employees hired on or after July 1,
112	2011, and all employees whose DROP participation begins on or
113	after July 1, 2011, shall contribute an additional 1 percent of
114	their gross income to the primary public-sponsored retirement
115	plan in which they are participating. Such contribution shall be
116	made before any benefit improvement.
117	Section 3. Subsection (1) of section 112.63, Florida
118	Statutes, is amended, and subsection (7) is added to that
119	section, to read:
120	112.63 Actuarial reports and statements of actuarial
121	impact; review.-
122	(1) Each retirement system or plan subject to the
123	provisions of this part act shall have regularly scheduled
124	actuarial reports prepared and certified by an enrolled actuary.
125	The actuarial report shall consist of, but shall not be limited
126	to, the following:
127	(a) Adequacy of employer and employee contribution rates
128	in meeting levels of employee benefits provided in the system
129	and changes, if any, needed in such rates to achieve or preserve
130	a level of funding deemed adequate to enable payment through the
131	indefinite future of the benefit amounts prescribed by the
132	system, which shall include a valuation of present assets, based
133	on statement value, and prospective assets and liabilities of
134	the system and the extent of unfunded accrued liabilities, if
135	any.
136	(b) A plan to amortize any unfunded liability pursuant to
137	s. 112.64 and a description of actions taken to reduce the
138	unfunded liability.
139	(c) A description and explanation of actuarial
140	assumptions.
141	(d) A schedule illustrating the amortization of unfunded
142	liabilities, if any.
143	(e) A comparative review illustrating the actual salary
144	increases granted and the rate of investment return realized
145	over the 3-year period preceding the actuarial report with the
146	assumptions used in both the preceding and current actuarial
147	reports.
148	(f) A statement by the enrolled actuary that the report is
149	complete and accurate and that in his or her opinion the
150	techniques and assumptions used are reasonable and meet the
151	requirements and intent of this part act.
152	(g) A 5-year projection of the employer's annual required
153	contributions for each of the 5 fiscal years immediately after
154	the date of the actuarial report, based on actual experience for
155	the preceding 5-year period and the current assumptions and cost
156	methods of the retirement system or plan. Plans with fewer than
157	20 members are not subject to the requirements of this
158	paragraph, but if the State Board of Administration determines
159	that the sponsor of such an exempt plan fails to adequately plan
160	for future plan expenses for 3 consecutive years, the plan shall
161	be closed within 2 years after such a determination and any
162	employee hired after the date of the inadequacy determination
163	shall join the Florida Retirement System.
164
165	The actuarial cost methods utilized for establishing the amount
166	of the annual actuarial normal cost to support the promised
167	benefits shall only be those methods approved in the Employee
168	Retirement Income Security Act of 1974 and as permitted under
169	regulations prescribed by the Secretary of the Treasury.
170	(7) Each retirement system or plan subject to the
171	provisions of this part shall have an experience study prepared
172	and certified by an enrolled actuary at least once every 5
173	years. The study shall compare the retirement system's or plan's
174	actual experience on key factors, including, but not limited to,
175	investment return, payroll growth, employee salary changes,
176	employee retirement rates, and employee turnover, with the
177	retirement system's or plan's assumptions on each factor. If a
178	retirement system's or plan's actual experience materially
179	varies from any retirement system or plan's assumption, the
180	enrolled actuary shall explain the material variance and provide
181	a recommendation as to whether a change in the assumption is
182	appropriate. Plans with fewer than 20 members are not subject to
183	the requirements of this paragraph, but if the State Board of
184	Administration determines that the sponsor of such an exempt
185	plan fails to use realistic assumptions for 3 consecutive years,
186	the plan shall be closed within 2 years after such determination
187	and any employee hired after the date of the closing shall join
188	the Florida Retirement System.
189	Section 4. Subsection (1) of section 112.65, Florida
190	Statutes, is amended to read:
191	112.65 Limitation of benefits.-
192	(1) ESTABLISHMENT OF PROGRAM.-The normal retirement
193	benefit or pension payable to a retiree who becomes a member of
194	any retirement system or plan and who has not previously
195	participated in such plan, on or after January 1, 1980, shall
196	not exceed 100 percent of his or her average final compensation.
197	The normal retirement benefit or pension payable to a member of
198	any retirement system or plan who has not attained 10 years of
199	credited service under such a system or plan on or before July
200	1, 2010, shall not exceed 80 percent of his or her average final
201	compensation. Overtime or any other compensation beyond base
202	hourly or annual salary may not be factored into any pension
203	benefit. However, nothing contained in this section shall apply
204	to supplemental retirement benefits or to pension increases
205	attributable to cost-of-living increases or adjustments. For the
206	purposes of this section, benefits accruing in individual
207	participant accounts established under the Public Employee
208	Optional Retirement Program established in part II of chapter
209	121 are considered supplemental benefits. As used in this
210	section, the term "average final compensation" means the average
211	of the member's earnings over a period of time which the
212	governmental entity has established by statute, charter, or
213	ordinance.
214	Section 5. Subsections (11) and (12) are added to section
215	112.66, Florida Statutes, to read:
216	112.66 General provisions.-The following general
217	provisions relating to the operation and administration of any
218	retirement system or plan covered by this part shall be
219	applicable:
220	(11) The board of trustees of each retirement system or
221	plan shall provide a detailed accounting report of its expenses
222	for each fiscal year to the plan sponsor and the Department of
223	Management Services and shall make the report available to every
224	member of the retirement system or plan. The report shall
225	include, but is not limited to, all administrative expenses,
226	defined for the purpose of this subsection and subsection (12)
227	as all expenses relating to any legal counsel, actuary, plan
228	administrator, or other consultant, and all travel and other
229	expenses paid to or on behalf of the members of the board of
230	trustees or any other person on behalf of the retirement system
231	or plan.
232	(12) The board of trustees of each retirement system or
233	plan shall submit its proposed administrative expense budget for
234	each fiscal year at least 120 days before the fiscal year to the
235	plan sponsor for the sponsor's review and approval. The plan
236	sponsor may amend any part of the budget prior to approval. The
237	budget shall regulate administrative expenses of the board of
238	trustees. The board of trustees may not amend the budget without
239	the prior approval of the amendment by the plan sponsor.
240	Section 6. Paragraph (a) of subsection (22) and
241	subsections (24) and (29) of section 121.021, Florida Statutes,
242	are amended to read:
243	121.021 Definitions.-The following words and phrases as
244	used in this chapter have the respective meanings set forth
245	unless a different meaning is plainly required by the context:
246	(22) "Compensation" means the monthly salary paid a member
247	by his or her employer for work performed arising from that
248	employment.
249	(a) Compensation shall include:
250	1. Overtime payments paid from a salary fund.
251	2. Accumulated annual leave payments.
252	3. Payments in addition to the employee's base rate of pay
253	if all the following apply:
254	a. The payments are paid according to a formal written
255	policy that applies to all eligible employees equally;
256	b. The policy provides that payments shall commence no
257	later than the 11th year of employment;
258	c. The payments are paid for as long as the employee
259	continues his or her employment; and
260	d. The payments are paid at least annually.
261	4. amounts withheld for tax sheltered annuities or
262	deferred compensation programs, or any other type of salary
263	reduction plan authorized under the Internal Revenue Code.
264	5. Payments made in lieu of a permanent increase in the
265	base rate of pay, whether made annually or in 12 or 26 equal
266	payments within a 12-month period, when the member's base pay is
267	at the maximum of his or her pay range. When a portion of a
268	member's annual increase raises his or her pay range and the
269	excess is paid as a lump sum payment, such lump sum payment
270	shall be compensation for retirement purposes.
271	(24) "Average final compensation" means the average of the
272	5 highest fiscal years of compensation for creditable service
273	prior to retirement, termination, or death. For in-line-of-duty
274	disability benefits, if less than 5 years of creditable service
275	have been completed, the term "average final compensation" means
276	the average annual compensation of the total number of years of
277	creditable service prior to retirement, termination, or death.
278	Each year used in the calculation of average final compensation
279	shall commence on July 1. If there are no records to show the
280	total number of years of creditable service performed by an
281	employee, "average final compensation" means the average annual
282	compensation for the total number of years of creditable service
283	for which records exist prior to retirement, termination, or
284	death.
285	(a) The average final compensation shall include:
286	1. Accumulated annual leave payments, not to exceed 500
287	hours; and
288	2. all payments defined as compensation in subsection
289	(22).
290	(b) The average final compensation shall not include:
291	1. Compensation paid to professional persons for special
292	or particular services;
293	2. Payments for accumulated sick leave made due to
294	retirement or termination;
295	3. Payments for accumulated annual leave in excess of 500
296	hours;
297	4. Bonuses as defined in subsection (47);
298	5. Third party payments made on and after July 1, 1990; or
299	6. Fringe benefits (for example, automobile allowances or
300	housing allowances).; or
301	7. Overtime compensation.
302	(29) "Normal retirement date" means:
303	(a) For persons employed before July 1, 2011, the date a
304	member attains normal retirement age and is vested, which is
305	determined as follows:
306	1.(a) If a Regular Class member, a Senior Management
307	Service Class member, or an Elected Officers' Class member:
308	a.1. The first day of the month the member completes 6 or
309	more years of creditable service and attains age 62; or
310	b.2. The first day of the month following the date the
311	member completes 30 years of creditable service, regardless of
312	age.
313	2.(b) If a Special Risk Class member:
314	a.1. The first day of the month the member completes 6 or
315	more years of creditable service in the Special Risk Class and
316	attains age 55;
317	b.2. The first day of the month following the date the
318	member completes 25 years of creditable service in the Special
319	Risk Class, regardless of age; or
320	c.3. The first day of the month following the date the
321	member completes 25 years of creditable service and attains age
322	52, which service may include a maximum of 4 years of military
323	service credit as long as such credit is not claimed under any
324	other system and the remaining years are in the Special Risk
325	Class.
326	(b) For persons employed on or after July 1, 2011, the
327	date a member attains normal retirement age and is vested, which
328	is determined as follows:
329	1. If a Regular Class member, a Senior Management Service
330	Class member, or an Elected Officers' Class member:
331	a. The first day of the month the member completes 6 or
332	more years of creditable service and attains age 65; or
333	b. The first day of the month following the date the
334	member completes 33 years of creditable service, regardless of
335	age.
336	2. If a Special Risk Class member:
337	a. The first day of the month the member completes 6 or
338	more years of creditable service in the Special Risk Class and
339	attains age 60;
340	b. The first day of the month following the date the
341	member completes 33 years of creditable service in the Special
342	Risk Class, regardless of age; or
343	c. The first day of the month following the date the
344	member completes 25 years of creditable service and attains age
345	60, which service may include a maximum of 4 years of military
346	service credit as long as such credit is not claimed under any
347	other system and the remaining years are in the Special Risk
348	Class.
349
350	"Normal retirement age" is attained on the "normal retirement
351	date."
352	Section 7. Paragraph (a) of subsection (7) of section
353	121.0515, Florida Statutes, is amended to read:
354	121.0515 Special risk membership.-
355	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.-
356	(a) A special risk member who is moved or reassigned to a
357	nonspecial risk law enforcement, firefighting, correctional, or
358	emergency medical care administrative support position with the
359	same agency, or who is subsequently employed in such a position
360	with any law enforcement, firefighting, correctional, or
361	emergency medical care agency under the Florida Retirement
362	System, shall participate in the Special Risk Administrative
363	Support Class and shall earn credit for such service at the same
364	percentage rate as that earned by a regular member.
365	Notwithstanding the provisions of subsection (4), service in
366	such an administrative support position shall, for purposes of
367	s. 121.091, apply toward satisfaction of the special risk normal
368	retirement date, as defined in s. 121.021(29)(b), provided that,
369	while in such position, the member remains certified as a law
370	enforcement officer, firefighter, correctional officer,
371	emergency medical technician, or paramedic; remains subject to
372	reassignment at any time to a position qualifying for special
373	risk membership; and completes an aggregate of 6 or more years
374	of service as a designated special risk member prior to
375	retirement.
376	Section 8. Effective July 1, 2011, subsection (1) of
377	section 121.0515, Florida Statutes, is amended to read:
378	121.0515 Special risk membership.-
379	(1) LEGISLATIVE INTENT.-In creating the Special Risk Class
380	of membership within the Florida Retirement System, it is the
381	intent and purpose of the Legislature to recognize that persons
382	employed in certain categories of law enforcement, firefighting,
383	criminal detention, and emergency medical care positions are
384	required as one of the essential functions of their positions to
385	perform work that is physically demanding or arduous, or work
386	that requires extraordinary agility and mental acuity, and that
387	such persons, because of diminishing physical and mental
388	faculties, may find that they are not able, without risk to the
389	health and safety of themselves, the public, or their coworkers,
390	to continue performing such duties and thus enjoy the full
391	career and retirement benefits enjoyed by persons employed in
392	other positions and that, if they find it necessary, due to the
393	physical and mental limitations of their age, to retire at an
394	earlier age and usually with less service, they will suffer an
395	economic deprivation therefrom. Therefore, as a means of
396	recognizing the peculiar and special problems of this class of
397	employees, it is the intent and purpose of the Legislature to
398	establish a class of retirement membership that awards more
399	retirement credit per year of service than that awarded to other
400	employees; however, nothing contained herein shall require
401	ineligibility for special risk membership upon reaching age 60
402	55.
403	Section 9. Subsection (8) of section 121.052, Florida
404	Statutes, is amended to read:
405	121.052 Membership class of elected officers.-
406	(8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.-A member
407	of the Elected Officers' Class shall have the same normal
408	retirement date as defined in s. 121.021(29) for a member of the
409	regular class of the Florida Retirement System. Any public
410	service commissioner who was removed from the Elected State
411	Officers' Class on July 1, 1979, after attaining at least 8
412	years of creditable service in that class shall be considered to
413	have reached the normal retirement date upon attaining the
414	required age provided 62 as required in s. 121.021(29)(a).
415	Section 10. Subsection (1) and paragraph (a) of subsection
416	(3) of section 121.091, Florida Statutes, are amended to read:
417	121.091 Benefits payable under the system.-Benefits may
418	not be paid under this section unless the member has terminated
419	employment as provided in s. 121.021(39)(a) or begun
420	participation in the Deferred Retirement Option Program as
421	provided in subsection (13), and a proper application has been
422	filed in the manner prescribed by the department. The department
423	may cancel an application for retirement benefits when the
424	member or beneficiary fails to timely provide the information
425	and documents required by this chapter and the department's
426	rules. The department shall adopt rules establishing procedures
427	for application for retirement benefits and for the cancellation
428	of such application when the required information or documents
429	are not received.
430	(1) NORMAL RETIREMENT BENEFIT.-Upon attaining his or her
431	normal retirement date, the member, upon application to the
432	administrator, shall receive a monthly benefit which shall begin
433	to accrue on the first day of the month of retirement and be
434	payable on the last day of that month and each month thereafter
435	during his or her lifetime. The normal retirement benefit,
436	including any past or additional retirement credit, may not
437	exceed 100 percent of the average final compensation. The normal
438	retirement benefit or pension payable to a member of the Florida
439	Retirement System who has not attained 6 years of credited
440	service under the system on or before July 1, 2010, shall not
441	exceed 80 percent of his or her average final compensation.
442	Overtime or any other compensation beyond base hourly or annual
443	salary shall not be factored into any pension benefit. The
444	amount of monthly benefit shall be calculated as the product of
445	A and B, subject to the adjustment of C, if applicable, as set
446	forth below:
447	(a)1. For creditable years of Regular Class service, A is:
448	a. 1.60 percent of the member's average final
449	compensation, for all creditable years before October 1, 2011;
450	b. 1.44 percent of the member's average final compensation
451	for all creditable years after September 30, 2011, up to the
452	member's normal retirement date; or.
453	c. Upon completion of the first year after the normal
454	retirement date, A is increased by 1.87 1.63 percent of the
455	member's average final compensation. Following the second year
456	after the normal retirement date, A is increased by 3.125 1.65
457	percent of the member's average final compensation. Following
458	the third year after the normal retirement date, and for
459	subsequent years, A is increased by 5.00 1.68 percent of the
460	member's average final compensation. This sub-subparagraph
461	expires July 1, 2011.
462	2. For creditable years of special risk service, A is:
463	a. Two percent of the member's average final compensation
464	for all creditable years prior to October 1, 1974;
465	b. Three percent of the member's average final
466	compensation for all creditable years after September 30, 1974,
467	and before October 1, 1978;
468	c. Two percent of the member's average final compensation
469	for all creditable years after September 30, 1978, and before
470	January 1, 1989;
471	d. Two and two-tenths percent of the member's final
472	monthly compensation for all creditable years after December 31,
473	1988, and before January 1, 1990;
474	e. Two and four-tenths percent of the member's average
475	final compensation for all creditable years after December 31,
476	1989, and before January 1, 1991;
477	f. Two and six-tenths percent of the member's average
478	final compensation for all creditable years after December 31,
479	1990, and before January 1, 1992;
480	g. Two and eight-tenths percent of the member's average
481	final compensation for all creditable years after December 31,
482	1991, and before January 1, 1993;
483	h. Three percent of the member's average final
484	compensation for all creditable years after December 31, 1992;
485	and
486	i. Three percent of the member's average final
487	compensation for all creditable years of service after September
488	30, 1978, and before January 1, 1993;
489	j. Three percent, for any special risk member who retires
490	after July 1, 2000, and before October 1, 2011, or any member of
491	the Special Risk Administrative Support Class entitled to retain
492	the special risk normal retirement date who was a member of the
493	Special Risk Class during the time period and who retires after
494	July 1, 2000, and before October 1, 2011; and
495	k. Two and seven-tenths percent of the member's final
496	compensation for all creditable years of service after September
497	30, 2011, or any member of the Special Risk Administrative
498	Support Class entitled to retain the special risk normal
499	retirement date who was a member of the Special Risk Class
500	during the time period and who retires after September 30, 2011.
501	3. For creditable years of Senior Management Service Class
502	service after January 31, 1987, A is:
503	a. Two 2 percent of the member's average final
504	compensation for all creditable years prior to October 1, 2011;
505	and
506	b. One and eight-tenths percent of the member's average
507	final compensation for all creditable years after September 30,
508	2011, up to the member's normal retirement date.;
509	4. For creditable years of Elected Officers' Class service
510	as a Supreme Court Justice, district court of appeal judge,
511	circuit judge, or county court judge, A is 3 1/3 percent of the
512	member's average final compensation, and for all other
513	creditable service in such class, A is 3 percent of average
514	final compensation.;
515	(b) B is the number of the member's years and any
516	fractional part of a year of creditable service earned
517	subsequent to November 30, 1970.; and
518	(c) C is the normal retirement benefit credit brought
519	forward as of November 30, 1970, by a former member of an
520	existing system. Such normal retirement benefit credit shall be
521	determined as the product of X and Y when X is the percentage of
522	average final compensation which the member would have been
523	eligible to receive if the member had attained his or her normal
524	retirement date as of November 30, 1970, all in accordance with
525	the existing system under which the member is covered on
526	November 30, 1970, and Y is average final compensation as
527	defined in s. 121.021(24). However, any member of an existing
528	retirement system who is eligible to retire and who does retire,
529	become disabled, or die prior to April 15, 1971, may have his or
530	her retirement benefits calculated on the basis of the best 5 of
531	the last 10 years of service.
532	(d) A member's average final compensation shall be
533	determined by formula to obtain the coverage for the 5 highest
534	fiscal years' salaries, calculated as provided by rule.
535	(3) EARLY RETIREMENT BENEFIT.-Upon retirement on his or
536	her early retirement date, the member shall receive an immediate
537	monthly benefit that shall begin to accrue on the first day of
538	the month of the retirement date and be payable on the last day
539	of that month and each month thereafter during his or her
540	lifetime. Such benefit shall be calculated as follows:
541	(a) The amount of each monthly payment shall be computed
542	in the same manner as for a normal retirement benefit, in
543	accordance with subsection (1), but shall be based on the
544	member's average monthly compensation and creditable service as
545	of the member's early retirement date. The benefit so computed
546	shall be reduced by five-twelfths of 1 percent for each complete
547	month by which the early retirement date precedes the normal
548	retirement date of age 62 for a member of the Regular Class,
549	Senior Management Service Class, or the Elected Officers' Class,
550	and age 55 for a member of the Special Risk Class, or age 52 if
551	a Special Risk member has completed 25 years of creditable
552	service in accordance with s. 121.021(29)(a)2.c.(b)3.
553	Section 11. Effective July 1, 2011, paragraph (a) of
554	subsection (3) and paragraph (a) of subsection (13) of section
555	121.091, Florida Statutes, as amended by this act, are amended
556	to read:
557	121.091 Benefits payable under the system.-Benefits may
558	not be paid under this section unless the member has terminated
559	employment as provided in s. 121.021(39)(a) or begun
560	participation in the Deferred Retirement Option Program as
561	provided in subsection (13), and a proper application has been
562	filed in the manner prescribed by the department. The department
563	may cancel an application for retirement benefits when the
564	member or beneficiary fails to timely provide the information
565	and documents required by this chapter and the department's
566	rules. The department shall adopt rules establishing procedures
567	for application for retirement benefits and for the cancellation
568	of such application when the required information or documents
569	are not received.
570	(3) EARLY RETIREMENT BENEFIT.-Upon retirement on his or
571	her early retirement date, the member shall receive an immediate
572	monthly benefit that shall begin to accrue on the first day of
573	the month of the retirement date and be payable on the last day
574	of that month and each month thereafter during his or her
575	lifetime. Such benefit shall be calculated as follows:
576	(a) The amount of each monthly payment shall be computed
577	in the same manner as for a normal retirement benefit, in
578	accordance with subsection (1), but shall be based on the
579	member's average monthly compensation and creditable service as
580	of the member's early retirement date. The benefit so computed
581	shall be reduced by five-twelfths of 1 percent for each complete
582	month by which the early retirement date precedes the normal
583	retirement date of age 62 for a member of the Regular Class,
584	Senior Management Service Class, or the Elected Officers' Class,
585	and age 55 for a member of the Special Risk Class, or age 52 if
586	a Special Risk member has completed 25 years of creditable
587	service in accordance with s. 121.021(29)(a)2.c.
588	(13) DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
589	subject to this section, the Deferred Retirement Option Program,
590	hereinafter referred to as DROP, is a program under which an
591	eligible member of the Florida Retirement System may elect to
592	participate, deferring receipt of retirement benefits while
593	continuing employment with his or her Florida Retirement System
594	employer. The deferred monthly benefits shall accrue in the
595	Florida Retirement System on behalf of the participant, plus
596	interest compounded monthly, for the specified period of the
597	DROP participation, as provided in paragraph (c). Upon
598	termination of employment, the participant shall receive the
599	total DROP benefits and begin to receive the previously
600	determined normal retirement benefits. Participation in the DROP
601	does not guarantee employment for the specified period of DROP.
602	Participation in DROP by an eligible member beyond the initial
603	60-month period as authorized in this subsection shall be on an
604	annual contractual basis for all participants.
605	(a) Eligibility of member to participate in DROP.-All
606	active Florida Retirement System members in a regularly
607	established position, and all active members of the Teachers'
608	Retirement System established in chapter 238 or the State and
609	County Officers' and Employees' Retirement System established in
610	chapter 122, which are consolidated within the Florida
611	Retirement System under s. 121.011, are eligible to elect
612	participation in DROP if:
613	1. The member is not a renewed member under s. 121.122 or
614	a member of the State Community College System Optional
615	Retirement Program under s. 121.051, the Senior Management
616	Service Optional Annuity Program under s. 121.055, or the
617	optional retirement program for the State University System
618	under s. 121.35.
619	2. Except as provided in subparagraph 6., election to
620	participate is made within 12 months immediately following the
621	date on which the member first reaches normal retirement date,
622	or, for a member who reaches normal retirement date based on
623	service before he or she reaches age 65 62, or age 60 55 for
624	Special Risk Class members, election to participate may be
625	deferred to the 12 months immediately following the date the
626	member attains age 60 57, or age 55 52 for Special Risk Class
627	members. A member who delays DROP participation during the 12-
628	month period immediately following his or her maximum DROP
629	deferral date, except as provided in subparagraph 6., loses a
630	month of DROP participation for each month delayed. A member who
631	fails to make an election within the 12-month limitation period
632	forfeits all rights to participate in DROP. The member shall
633	advise his or her employer and the division in writing of the
634	date DROP begins. The beginning date may be subsequent to the
635	12-month election period but must be within the original 60-
636	month participation period provided in subparagraph (b)1. When
637	establishing eligibility of the member to participate in DROP,
638	the member may elect to include or exclude any optional service
639	credit purchased by the member from the total service used to
640	establish the normal retirement date. A member who has dual
641	normal retirement dates is eligible to elect to participate in
642	DROP after attaining normal retirement date in either class.
643	3. The employer of a member electing to participate in
644	DROP, or employers if dually employed, shall acknowledge in
645	writing to the division the date the member's participation in
646	DROP begins and the date the member's employment and DROP
647	participation will terminate.
648	4. Simultaneous employment of a participant by additional
649	Florida Retirement System employers subsequent to the
650	commencement of participation in DROP is permissible if such
651	employers acknowledge in writing a DROP termination date no
652	later than the participant's existing termination date or the
653	maximum participation period provided in subparagraph (b)1.
654	5. A DROP participant may change employers while
655	participating in DROP, subject to the following:
656	a. A change of employment must take place without a break
657	in service so that the member receives salary for each month of
658	continuous DROP participation. If a member receives no salary
659	during a month, DROP participation shall cease unless the
660	employer verifies a continuation of the employment relationship
661	for such participant pursuant to s. 121.021(39)(b).
662	b. Such participant and new employer shall notify the
663	division of the identity of the new employer on forms required
664	by the division.
665	c. The new employer shall acknowledge, in writing, the
666	participant's DROP termination date, which may be extended but
667	not beyond the maximum participation period provided in
668	subparagraph (b)1., shall acknowledge liability for any
669	additional retirement contributions and interest required if the
670	participant fails to timely terminate employment, and is subject
671	to the adjustment required in sub-subparagraph (c)5.d.
672	6. Effective July 1, 2001, for instructional personnel as
673	defined in s. 1012.01(2), election to participate in DROP may be
674	made at any time following the date on which the member first
675	reaches normal retirement date. The member shall advise his or
676	her employer and the division in writing of the date on which
677	DROP begins. When establishing eligibility of the member to
678	participate in DROP for the 60-month participation period
679	provided in subparagraph (b)1., the member may elect to include
680	or exclude any optional service credit purchased by the member
681	from the total service used to establish the normal retirement
682	date. A member who has dual normal retirement dates is eligible
683	to elect to participate in either class.
684	Section 12. Paragraph (c) of subsection (3) of section
685	121.4501, Florida Statutes, is amended to read:
686	121.4501 Public Employee Optional Retirement Program.-
687	(3) ELIGIBILITY; RETIREMENT SERVICE CREDIT.-
688	(c)1. Notwithstanding paragraph (b), each eligible
689	employee who elects to participate in the Public Employee
690	Optional Retirement Program and establishes one or more
691	individual participant accounts under the optional program may
692	elect to transfer to the optional program a sum representing the
693	present value of the employee's accumulated benefit obligation
694	under the defined benefit retirement program of the Florida
695	Retirement System. Upon such transfer, all service credit
696	previously earned under the defined benefit program of the
697	Florida Retirement System shall be nullified for purposes of
698	entitlement to a future benefit under the defined benefit
699	program of the Florida Retirement System. A participant is
700	precluded from transferring the accumulated benefit obligation
701	balance from the defined benefit program upon the expiration of
702	the period afforded to enroll in the optional program.
703	2. For purposes of this subsection, the present value of
704	the member's accumulated benefit obligation is based upon the
705	member's estimated creditable service and estimated average
706	final compensation under the defined benefit program, subject to
707	recomputation under subparagraph 3. For state employees
708	enrolling under subparagraph (4)(a)1., initial estimates will be
709	based upon creditable service and average final compensation as
710	of midnight on June 30, 2002; for district school board
711	employees enrolling under subparagraph (4)(b)1., initial
712	estimates will be based upon creditable service and average
713	final compensation as of midnight on September 30, 2002; and for
714	local government employees enrolling under subparagraph
715	(4)(c)1., initial estimates will be based upon creditable
716	service and average final compensation as of midnight on
717	December 31, 2002. The dates respectively specified above shall
718	be construed as the "estimate date" for these employees. The
719	actuarial present value of the employee's accumulated benefit
720	obligation shall be based on the following:
721	a. The discount rate and other relevant actuarial
722	assumptions used to value the Florida Retirement System Trust
723	Fund at the time the amount to be transferred is determined,
724	consistent with the factors provided in sub-subparagraphs b. and
725	c.
726	b. A benefit commencement age, based on the member's
727	estimated creditable service as of the estimate date. The
728	benefit commencement age shall be the younger of the following,
729	but shall not be younger than the member's age as of the
730	estimate date:
731	(I) Age 62 or, for persons employed on or after July 1,
732	2011, age 65; or
733	(II) The age the member would attain if the member
734	completed 30 years of service with an employer or, for persons
735	employed on or after July 1, 2011, 33 years of service with an
736	employer, assuming the member worked continuously from the
737	estimate date, and disregarding any vesting requirement that
738	would otherwise apply under the defined benefit program of the
739	Florida Retirement System.
740	c. For members of the Special Risk Class and for members
741	of the Special Risk Administrative Support Class entitled to
742	retain special risk normal retirement date, the benefit
743	commencement age shall be the younger of the following, but
744	shall not be younger than the member's age as of the estimate
745	date:
746	(I) Age 55 or, for persons employed on or after July 1,
747	2011, age 60; or
748	(II) The age the member would attain if the member
749	completed 25 years of service with an employer, or, for persons
750	employed on or after July 1, 2011, 33 years of service with an
751	employer, assuming the member worked continuously from the
752	estimate date, and disregarding any vesting requirement that
753	would otherwise apply under the defined benefit program of the
754	Florida Retirement System.
755	d. The calculation shall disregard vesting requirements
756	and early retirement reduction factors that would otherwise
757	apply under the defined benefit retirement program.
758	3. For each participant who elects to transfer moneys from
759	the defined benefit program to his or her account in the
760	optional program, the division shall recompute the amount
761	transferred under subparagraph 2. not later than 60 days after
762	the actual transfer of funds based upon the participant's actual
763	creditable service and actual final average compensation as of
764	the initial date of participation in the optional program. If
765	the recomputed amount differs from the amount transferred under
766	subparagraph 2. by $10 or more, the division shall:
767	a. Transfer, or cause to be transferred, from the Florida
768	Retirement System Trust Fund to the participant's account in the
769	optional program the excess, if any, of the recomputed amount
770	over the previously transferred amount together with interest
771	from the initial date of transfer to the date of transfer under
772	this subparagraph, based upon effective annual interest equal to
773	the assumed return on the actuarial investment which was used in
774	the most recent actuarial valuation of the system, compounded
775	annually.
776	b. Transfer, or cause to be transferred, from the
777	participant's account to the Florida Retirement System Trust
778	Fund the excess, if any, of the previously transferred amount
779	over the recomputed amount, together with interest from the
780	initial date of transfer to the date of transfer under this
781	subparagraph, based upon 6 percent effective annual interest,
782	compounded annually, pro rata based on the participant's
783	allocation plan.
784	4. As directed by the participant, the board shall
785	transfer or cause to be transferred the appropriate amounts to
786	the designated accounts. The board shall establish transfer
787	procedures by rule, but the actual transfer shall not be later
788	than 30 days after the effective date of the member's
789	participation in the optional program unless the major financial
790	markets for securities available for a transfer are seriously
791	disrupted by an unforeseen event which also causes the
792	suspension of trading on any national securities exchange in the
793	country where the securities were issued. In that event, such
794	30-day period of time may be extended by a resolution of the
795	trustees. Transfers are not commissionable or subject to other
796	fees and may be in the form of securities or cash as determined
797	by the state board. Such securities shall be valued as of the
798	date of receipt in the participant's account.
799	5. If the board or the division receives notification from
800	the United States Internal Revenue Service that this paragraph
801	or any portion of this paragraph will cause the retirement
802	system, or a portion thereof, to be disqualified for tax
803	purposes under the Internal Revenue Code, then the portion that
804	will cause the disqualification does not apply. Upon such
805	notice, the state board and the division shall notify the
806	presiding officers of the Legislature.
807	Section 13. Subsection (2) of section 122.02, Florida
808	Statutes, is amended to read:
809	122.02 Definitions.-The following words and phrases as
810	used in this chapter shall have the following meaning unless a
811	different meaning is plainly required by the context:
812	(2) "Average final compensation" shall mean the average
813	salary of all the 10 best contributing years of the last 15
814	years of creditable service prior to retirement, or the career
815	average since July 1, 1945, whichever is greater. A year shall
816	be 12 running months. If there are no records to show the total
817	number of years of creditable service performed by an employee,
818	"average final compensation" means the average annual
819	compensation for the total number of years of creditable service
820	for which records exist prior to retirement, termination, or
821	death. In the event that an officer or employee has not
822	contributed to the retirement trust fund for at least 10 years,
823	then the average final compensation shall mean the average
824	salary of the last 10 years' service.
825	Section 14. Subsections (1) and (3) of section 175.032,
826	Florida Statutes, are amended to read:
827	175.032 Definitions.-For any municipality, special fire
828	control district, chapter plan, local law municipality, local
829	law special fire control district, or local law plan under this
830	chapter, the following words and phrases have the following
831	meanings:
832	(1)(a) "Average final compensation" for a full-time
833	firefighter means one-twelfth of the average annual compensation
834	of the 5 best years of all the last 10 years of creditable
835	service prior to retirement, termination, or death, or the
836	career average as a full-time firefighter since July 1, 1953,
837	whichever is greater. A year shall be 12 consecutive months. If
838	there are no records to show the total number of years of
839	creditable service performed by an employee, "average final
840	compensation" means the average annual compensation for the
841	total number of years of creditable service for which records
842	exist prior to retirement, termination, or death or such other
843	consecutive period of time as is used and consistently applied.
844	(b) "Average final compensation" for a volunteer
845	firefighter means the average salary of all the 5 best years of
846	the last 10 best contributing years prior to change in status to
847	a permanent full-time firefighter or retirement as a volunteer
848	firefighter. If there are no records to show the total number of
849	years of creditable service performed by an employee, "average
850	final compensation" means the average annual compensation for
851	the total number of years of creditable service for which
852	records exist prior to change in status to a permanent full-time
853	firefighter or retirement as a volunteer firefighter or the
854	career average of a volunteer firefighter, since July 1, 1953,
855	whichever is greater.
856	(3) "Compensation" or "salary" means the fixed monthly
857	remuneration paid a firefighter; where, as in the case of a
858	volunteer firefighter, remuneration is based on actual services
859	rendered, the term means the total cash remuneration received
860	yearly for such services, prorated on a monthly basis. This
861	shall include only base pay and shall not include any pay for
862	overtime or other pay beyond base hourly or annual salary.
863	(a) A retirement trust fund or plan may use a definition
864	of salary other than the definition in this subsection but only
865	if the monthly retirement income payable to each firefighter
866	covered by the retirement trust fund or plan, as determined
867	under s. 175.162(2)(a) and using such other definition, equals
868	or exceeds the monthly retirement income that would be payable
869	to each firefighter if his or her monthly retirement income were
870	determined under s. 175.162(2)(a) and using the definition in
871	this subsection.
872	(b) Any retirement trust fund or plan which now or
873	hereafter meets the requirements of this chapter shall not,
874	solely by virtue of this subsection, reduce or diminish the
875	monthly retirement income otherwise payable to each firefighter
876	covered by the retirement trust fund or plan.
877	(a)(c) The member's compensation or salary contributed as
878	employee-elective salary reductions or deferrals to any salary
879	reduction, deferred compensation, or tax-sheltered annuity
880	program authorized under the Internal Revenue Code shall be
881	deemed to be the compensation or salary the member would receive
882	if he or she were not participating in such program and shall be
883	treated as compensation for retirement purposes under this
884	chapter.
885	(b)(d) For any person who first becomes a member in any
886	plan year beginning on or after January 1, 1996, compensation
887	for any plan year shall not include any amounts in excess of the
888	Internal Revenue Code s. 401(a)(17) limitation (as amended by
889	the Omnibus Budget Reconciliation Act of 1993), which limitation
890	of $150,000 shall be adjusted as required by federal law for
891	qualified government plans and shall be further adjusted for
892	changes in the cost of living in the manner provided by Internal
893	Revenue Code s. 401(a)(17)(B). For any person who first became a
894	member prior to the first plan year beginning on or after
895	January 1, 1996, the limitation on compensation shall be not
896	less than the maximum compensation amount that was allowed to be
897	taken into account under the plan as in effect on July 1, 1993,
898	which limitation shall be adjusted for changes in the cost of
899	living since 1989 in the manner provided by Internal Revenue
900	Code s. 401(a)(17)(1991).
901	Section 15. Paragraph (a) of subsection (1) of section
902	175.061, Florida Statutes, is amended to read:
903	175.061 Board of trustees; members; terms of office;
904	meetings; legal entity; costs; attorney's fees.-For any
905	municipality, special fire control district, chapter plan, local
906	law municipality, local law special fire control district, or
907	local law plan under this chapter:
908	(1) In each municipality and in each special fire control
909	district there is hereby created a board of trustees of the
910	firefighters' pension trust fund, which shall be solely
911	responsible for administering the trust fund. Effective October
912	1, 1986, and thereafter:
913	(a) The membership of the board of trustees for a chapter
914	plan consists of five members, two of whom, unless otherwise
915	prohibited by law, must be legal residents of the municipality
916	or special fire control district and must be appointed by the
917	governing body of the municipality or special fire control
918	district, and two of whom must be full-time firefighters as
919	defined in s. 175.032 who are elected by a majority of the
920	active firefighters who are members of such plan. With respect
921	to any chapter plan or local law plan that, on January 1, 1997,
922	allowed retired firefighters to vote in such elections, retirees
923	may continue to vote in such elections. The fifth member shall
924	be chosen by a majority of the previous four members as provided
925	herein and may not be a member or retiree of the plan whose
926	funds the board administers, and such person's name shall be
927	submitted to the governing body of the municipality or special
928	fire control district. Upon receipt of the fifth person's name,
929	the governing body of the municipality or special fire control
930	district shall, as a ministerial duty, appoint such person to
931	the board of trustees. The fifth member shall have the same
932	rights as each of the other four members, shall serve as trustee
933	for a period of 2 years, and may succeed himself or herself in
934	office. Each resident member shall serve as trustee for a period
935	of 2 years, unless sooner replaced by the governing body at
936	whose pleasure he or she serves, and may succeed himself or
937	herself as a trustee. Each firefighter member shall serve as
938	trustee for a period of 2 years, unless he or she sooner leaves
939	the employment of the municipality or special fire control
940	district as a firefighter, whereupon a successor shall be chosen
941	in the same manner as an original appointment. Each firefighter
942	may succeed himself or herself in office. The terms of office of
943	the appointed and elected members may be amended by municipal
944	ordinance, special act of the Legislature, or resolution adopted
945	by the governing body of the special fire control district to
946	extend the terms from 2 years to 4 years. The length of the
947	terms of office shall be the same for all board members.
948	Section 16. Paragraph (b) of subsection (2) of section
949	175.091, Florida Statutes, is amended to read:
950	175.091 Creation and maintenance of fund.-For any
951	municipality, special fire control district, chapter plan, local
952	law municipality, local law special fire control district, or
953	local law plan under this chapter:
954	(2) Member contribution rates may be adjusted as follows:
955	(b) Firefighter member contributions may be increased by
956	consent of the members' collective bargaining representative or,
957	if none, by majority consent of firefighter members of the fund
958	to provide greater benefits.
959
960	Nothing in this section shall be construed to require adjustment
961	of member contribution rates in effect on the date this act
962	becomes a law, including rates that exceed 5 percent of salary,
963	provided that such rates are at least one-half of 1 percent of
964	salary.
965	Section 17. Effective July 1, 2011, section 175.162,
966	Florida Statutes, is amended to read:
967	175.162 Requirements for retirement.-For any municipality,
968	special fire control district, chapter plan, local law
969	municipality, local law special fire control district, or local
970	law plan under this chapter, any firefighter who completes 15 10
971	or more years of creditable service as a firefighter and attains
972	age 60 55, or completes 30 25 years of creditable service as a
973	firefighter and attains age 57 52, and who for such minimum
974	period has been a member of the firefighters' pension trust fund
975	operating under a chapter plan or local law plan, is eligible
976	for normal retirement benefits. Normal retirement under the plan
977	is retirement from the service of the municipality or special
978	fire control district on or after the normal retirement date. In
979	such event, payment of retirement income will be governed by the
980	following provisions of this section:
981	(1) The normal retirement date of each firefighter will be
982	the first day of the month coincident with or next following the
983	date on which he or she has completed 15 10 or more years of
984	creditable service and attained age 60 55 or completed 30 25
985	years of creditable service and attained age 57 52.
986	(2)(a) The amount of monthly retirement income payable to
987	a full-time firefighter who retires on or after his or her
988	normal retirement date shall be an amount equal to the number of
989	his or her years of credited service multiplied by 2 percent of
990	his or her average final compensation as a full-time
991	firefighter. However, if current state contributions pursuant to
992	this chapter are not adequate to fund the additional benefits to
993	meet the minimum requirements in this chapter, only such
994	incremental increases shall be required as state moneys are
995	adequate to provide. Such increments shall be provided as state
996	moneys become available.
997	(b) The amount of monthly retirement income payable to a
998	volunteer firefighter who retires on or after his or her normal
999	retirement date shall be an amount equal to the number of his or
1000	her years of credited service multiplied by 2 percent of his or
1001	her average final compensation as a volunteer firefighter.
1002	(3) The monthly retirement income payable in the event of
1003	normal retirement will be payable on the first day of each
1004	month. The first payment will be made on the firefighter's
1005	normal retirement date, or on the first day of the month
1006	coincident with or next following his or her actual retirement,
1007	if later, and the last payment will be the payment due next
1008	preceding the firefighter's death; except that, in the event the
1009	firefighter dies after retirement but before he or she has
1010	received retirement benefits for a period of 10 years, the same
1011	monthly benefit will be paid to the beneficiary (or
1012	beneficiaries) as designated by the firefighter for the balance
1013	of such 15-year 10-year period. If a firefighter continues in
1014	the service of the municipality or special fire control district
1015	beyond his or her normal retirement date and dies prior to his
1016	or her date of actual retirement, without an option made
1017	pursuant to s. 175.171 being in effect, monthly retirement
1018	income payments will be made for a period of 15 10 years to a
1019	beneficiary (or beneficiaries) designated by the firefighter as
1020	if the firefighter had retired on the date on which his or her
1021	death occurred.
1022	(4) Early retirement under the plan is retirement from the
1023	service of the municipality or special fire control district,
1024	with the consent of the municipality or special fire control
1025	district, as of the first day of any calendar month which is
1026	prior to the firefighter's normal retirement date but subsequent
1027	to the date as of which he or she has both attained the age of
1028	55 50 years and has been a member of this fund for 15 10
1029	continuous years. In the event of early retirement, payment of
1030	retirement income shall be governed as follows: The monthly
1031	amount of retirement income payable to a firefighter who retires
1032	prior to his or her normal retirement date shall be in the
1033	amount computed as described in subsection (2), taking into
1034	account the firefighter's credited service to his or her date of
1035	actual retirement and final monthly compensation as of such
1036	date, such amount of retirement income to be actuarially reduced
1037	to take into account the firefighter's younger age and the
1038	earlier commencement of retirement income benefits. The amount
1039	of monthly income payable in the event of early retirement will
1040	be paid in the same manner as in subsection (3). In no event
1041	shall the early retirement reduction exceed 3 percent for each
1042	year by which the member's age at retirement preceded the
1043	member's normal retirement age, as provided in subsection (1).
1044	Section 18. Paragraph (a) of subsection (3) of section
1045	175.351, Florida Statutes, is amended, and subsection (5) is
1046	added to that section, to read:
1047	175.351 Municipalities and special fire control districts
1048	having their own pension plans for firefighters.-For any
1049	municipality, special fire control district, local law
1050	municipality, local law special fire control district, or local
1051	law plan under this chapter, in order for municipalities and
1052	special fire control districts with their own pension plans for
1053	firefighters, or for firefighters and police officers, where
1054	included, to participate in the distribution of the tax fund
1055	established pursuant to s. 175.101, local law plans must meet
1056	the minimum benefits and minimum standards set forth in this
1057	chapter.
1058	(3) Notwithstanding any other provision, with respect to
1059	any supplemental plan municipality:
1060	(a) Section 175.032(3)(a) shall not apply, and A local law
1061	plan and a supplemental plan may continue to use their
1062	definition of compensation or salary in existence on the
1063	effective date of this act.
1064	(5) A municipality or special fire control district may
1065	close a retirement plan subject to this chapter and establish a
1066	defined contribution plan for employees after a date certain.
1067	Employees hired before that date may choose to transfer to the
1068	defined contribution plan, but may not then transfer back to the
1069	defined benefit retirement plan subject to this chapter or
1070	belong to both plans simultaneously. A municipality or special
1071	fire control district may elect to close an existing plan
1072	subject to the provisions of this chapter and join the Florida
1073	Retirement System under chapter 121 for employees based on the
1074	member's date of hire. A municipality or special fire control
1075	district choosing to operate under this subsection shall receive
1076	the premium tax provided by this chapter for use for the defined
1077	benefit plan subject to this chapter until the plan is fully
1078	funded as described in s. 175.371(2), as determined by the
1079	plan's actuary.
1080	Section 19. Subsections (1) and (4) of section 185.02,
1081	Florida Statutes, are amended to read:
1082	185.02 Definitions.-For any municipality, chapter plan,
1083	local law municipality, or local law plan under this chapter,
1084	the following words and phrases as used in this chapter shall
1085	have the following meanings, unless a different meaning is
1086	plainly required by the context:
1087	(1) "Average final compensation" means one-twelfth of the
1088	average annual compensation of all the 5 best years of the last
1089	10 years of creditable service prior to retirement, termination,
1090	or death. A year shall be 12 consecutive months. If there are no
1091	records to show the total number of years of creditable service
1092	performed by an employee, "average final compensation" means the
1093	average annual compensation for the total number of years of
1094	creditable service for which records exist prior to retirement,
1095	termination, or death.
1096	(4) "Compensation" or "salary" means the total cash
1097	remuneration including "overtime" paid by the primary employer
1098	to a police officer for services rendered, but not including any
1099	payments for extra duty or a special detail work performed on
1100	behalf of a second party employer, or any overtime compensation.
1101	However, a local law plan may limit the amount of overtime
1102	payments which can be used for retirement benefit calculation
1103	purposes, but in no event shall such overtime limit be less than
1104	300 hours per officer per calendar year.
1105	(a) Any retirement trust fund or plan which now or
1106	hereafter meets the requirements of this chapter shall not,
1107	solely by virtue of this subsection, reduce or diminish the
1108	monthly retirement income otherwise payable to each police
1109	officer covered by the retirement trust fund or plan.
1110	(a)(b) The member's compensation or salary contributed as
1111	employee-elective salary reductions or deferrals to any salary
1112	reduction, deferred compensation, or tax-sheltered annuity
1113	program authorized under the Internal Revenue Code shall be
1114	deemed to be the compensation or salary the member would receive
1115	if he or she were not participating in such program and shall be
1116	treated as compensation for retirement purposes under this
1117	chapter.
1118	(b)(c) For any person who first becomes a member in any
1119	plan year beginning on or after January 1, 1996, compensation
1120	for any plan year shall not include any amounts in excess of the
1121	Internal Revenue Code s. 401(a)(17) limitation (as amended by
1122	the Omnibus Budget Reconciliation Act of 1993), which limitation
1123	of $150,000 shall be adjusted as required by federal law for
1124	qualified government plans and shall be further adjusted for
1125	changes in the cost of living in the manner provided by Internal
1126	Revenue Code s. 401(a)(17)(B). For any person who first became a
1127	member prior to the first plan year beginning on or after
1128	January 1, 1996, the limitation on compensation shall be not
1129	less than the maximum compensation amount that was allowed to be
1130	taken into account under the plan as in effect on July 1, 1993,
1131	which limitation shall be adjusted for changes in the cost of
1132	living since 1989 in the manner provided by Internal Revenue
1133	Code s. 401(a)(17)(1991).
1134	Section 20. Paragraph (a) of subsection (1) of section
1135	185.05, Florida Statutes, is amended to read:
1136	185.05 Board of trustees; members; terms of office;
1137	meetings; legal entity; costs; attorney's fees.-For any
1138	municipality, chapter plan, local law municipality, or local law
1139	plan under this chapter:
1140	(1) In each municipality described in s. 185.03 there is
1141	hereby created a board of trustees of the municipal police
1142	officers' retirement trust fund, which shall be solely
1143	responsible for administering the trust fund. Effective October
1144	1, 1986, and thereafter:
1145	(a) The membership of the board of trustees for chapter
1146	plans consists of five members, two of whom, unless otherwise
1147	prohibited by law, must be legal residents of the municipality
1148	and must be appointed by the legislative body of the
1149	municipality, and two of whom must be police officers as defined
1150	in s. 185.02 who are elected by a majority of the active police
1151	officers who are members of such plan. With respect to any
1152	chapter plan or local law plan that, on January 1, 1997, allowed
1153	retired police officers to vote in such elections, retirees may
1154	continue to vote in such elections. The fifth member shall be
1155	chosen by a majority of the previous four members and may not be
1156	a member or retiree of the plan whose funds the board
1157	administers, and such person's name shall be submitted to the
1158	legislative body of the municipality. Upon receipt of the fifth
1159	person's name, the legislative body shall, as a ministerial
1160	duty, appoint such person to the board of trustees. The fifth
1161	member shall have the same rights as each of the other four
1162	members appointed or elected, shall serve as trustee for a
1163	period of 2 years, and may succeed himself or herself in office.
1164	Each resident member shall serve as trustee for a period of 2
1165	years, unless sooner replaced by the legislative body at whose
1166	pleasure the member serves, and may succeed himself or herself
1167	as a trustee. Each police officer member shall serve as trustee
1168	for a period of 2 years, unless he or she sooner leaves the
1169	employment of the municipality as a police officer, whereupon a
1170	successor shall be chosen in the same manner as an original
1171	appointment. Each police officer may succeed himself or herself
1172	in office. The terms of office of the appointed and elected
1173	members of the board of trustees may be amended by municipal
1174	ordinance or special act of the Legislature to extend the terms
1175	from 2 years to 4 years. The length of the terms of office shall
1176	be the same for all board members.
1177	Section 21. Paragraph (b) of subsection (2) of section
1178	185.07, Florida Statutes, is amended to read:
1179	185.07 Creation and maintenance of fund.-For any
1180	municipality, chapter plan, local law municipality, or local law
1181	plan under this chapter:
1182	(2) Member contribution rates may be adjusted as follows:
1183	(b) Police officer member contributions may be increased
1184	by consent of the members' collective bargaining representative
1185	or, if none, by majority consent of police officer members of
1186	the fund to provide greater benefits.
1187
1188	Nothing in this section shall be construed to require adjustment
1189	of member contribution rates in effect on the date this act
1190	becomes a law, including rates that exceed 5 percent of salary,
1191	provided that such rates are at least one-half of 1 percent of
1192	salary.
1193	Section 22. Effective July 1, 2011, section 185.16,
1194	Florida Statutes, is amended to read:
1195	185.16 Requirements for retirement.-For any municipality,
1196	chapter plan, local law municipality, or local law plan under
1197	this chapter, any police officer who completes 15 10 or more
1198	years of creditable service as a police officer and attains age
1199	60 55, or completes 30 25 years of creditable service as a
1200	police officer and attains age 57 52, and for such period has
1201	been a member of the retirement fund is eligible for normal
1202	retirement benefits. Normal retirement under the plan is
1203	retirement from the service of the city on or after the normal
1204	retirement date. In such event, for chapter plans and local law
1205	plans, payment of retirement income will be governed by the
1206	following provisions of this section:
1207	(1) The normal retirement date of each police officer will
1208	be the first day of the month coincident with or next following
1209	the date on which the police officer has completed 15 10 or more
1210	years of creditable service and attained age 60 55 or completed
1211	25 years of creditable service and attained age 57 52.
1212	(2) The amount of the monthly retirement income payable to
1213	a police officer who retires on or after his or her normal
1214	retirement date shall be an amount equal to the number of the
1215	police officer's years of credited service multiplied by 2
1216	percent of his or her average final compensation. However, if
1217	current state contributions pursuant to this chapter are not
1218	adequate to fund the additional benefits to meet the minimum
1219	requirements in this chapter, only increment increases shall be
1220	required as state moneys are adequate to provide. Such
1221	increments shall be provided as state moneys become available.
1222	(3) The monthly retirement income payable in the event of
1223	normal retirement will be payable on the first day of each
1224	month. The first payment will be made on the police officer's
1225	normal retirement date, or on the first day of the month
1226	coincident with or next following the police officer's actual
1227	retirement, if later, and the last payment will be the payment
1228	due next preceding the police officer's death; except that, in
1229	the event the police officer dies after retirement but before
1230	receiving retirement benefits for a period of 15 10 years, the
1231	same monthly benefit will be paid to the beneficiary (or
1232	beneficiaries) as designated by the police officer for the
1233	balance of such 15-year 10-year period, or, if no beneficiary is
1234	designated, to the estate of the police officer, as provided in
1235	s. 185.162. If a police officer continues in the service of the
1236	city beyond his or her normal retirement date and dies prior to
1237	the date of actual retirement, without an option made pursuant
1238	to s. 185.161 being in effect, monthly retirement income
1239	payments will be made for a period of 15 10 years to a
1240	beneficiary (or beneficiaries) designated by the police officer
1241	as if the police officer had retired on the date on which death
1242	occurred, or, if no beneficiary is designated, to the estate of
1243	the police officer, as provided in s. 185.162.
1244	(4) Early retirement under the plan is retirement from the
1245	service of the city, with the consent of the city, as of the
1246	first day of any calendar month which is prior to the police
1247	officer's normal retirement date but subsequent to the date as
1248	of which the police officer has both attained the age of 50
1249	years and completed 15 10 years of contributing service. In the
1250	event of early retirement, payment of retirement income will be
1251	governed as follows:
1252	(a) The early retirement date shall be the first day of
1253	the calendar month coincident with or immediately following the
1254	date a police officer retires from the service of the city under
1255	the provisions of this section prior to his or her normal
1256	retirement date.
1257	(b) The monthly amount of retirement income payable to a
1258	police officer who retires prior to his or her normal retirement
1259	date under the provisions of this section shall be an amount
1260	computed as described in subsection (2), taking into account his
1261	or her credited service to the date of actual retirement and his
1262	or her final monthly compensation as of such date, such amount
1263	of retirement income to be actuarially reduced to take into
1264	account the police officer's younger age and the earlier
1265	commencement of retirement income payments. In no event shall
1266	the early retirement reduction exceed 3 percent for each year by
1267	which the member's age at retirement preceded the member's
1268	normal retirement age, as provided in subsection (1).
1269	(c) The retirement income payable in the event of early
1270	retirement will be payable on the first day of each month. The
1271	first payment will be made on the police officer's early
1272	retirement date and the last payment will be the payment due
1273	next preceding the retired police officer's death; except that,
1274	in the event the police officer dies before receiving retirement
1275	benefits for a period of 15 10 years, the same monthly benefit
1276	will be paid to the beneficiary designated by the police officer
1277	for the balance of such 15-year 10-year period, or, if no
1278	designated beneficiary is surviving, the same monthly benefit
1279	for the balance of such 10-year period shall be payable as
1280	provided in s. 185.162.
1281	Section 23. Paragraph (a) of subsection (3) of section
1282	185.35, Florida Statutes, is amended, and subsection (5) is
1283	added to that section, to read:
1284	185.35 Municipalities having their own pension plans for
1285	police officers.-For any municipality, chapter plan, local law
1286	municipality, or local law plan under this chapter, in order for
1287	municipalities with their own pension plans for police officers,
1288	or for police officers and firefighters where included, to
1289	participate in the distribution of the tax fund established
1290	pursuant to s. 185.08, local law plans must meet the minimum
1291	benefits and minimum standards set forth in this chapter:
1292	(3) Notwithstanding any other provision, with respect to
1293	any supplemental plan municipality:
1294	(a) Section 185.02(4)(a) shall not apply, and A local law
1295	plan and a supplemental plan may continue to use their
1296	definition of compensation or salary in existence on the
1297	effective date of this act.
1298	(5) A municipality may close a retirement plan subject to
1299	this chapter and establish a defined contribution retirement
1300	plan for employees hired after a date certain. Employees hired
1301	before that date may choose to transfer to the defined
1302	contribution plan, but may not then transfer back to the defined
1303	benefit retirement plan subject to this chapter or belong to
1304	both plans simultaneously. A municipality may elect to close an
1305	existing plan subject to the provisions of this chapter and join
1306	the Florida Retirement System under chapter 121 for employees
1307	hired after a date certain. A municipality choosing to operate
1308	under this subsection shall receive the premium tax provided by
1309	this chapter for use for the plan subject to this chapter until
1310	the plan is fully funded as described in s. 185.38(2), as
1311	determined by the plan's actuary.
1312	Section 24. Section 214.101, Florida Statutes, is created
1313	to read:
1314	214.101 Truth in accounting; short title; definitions.-
1315	(1) SHORT TITLE.--This chapter may be cited as the "Truth
1316	in Accounting Act."
1317	(2) DEFINITIONS.-As used in this chapter, unless a
1318	different meaning is plainly required by the context, the term:
1319	(a) "Amounts due other postemployment benefit plan" means
1320	the unfunded actuarial accrued liability for any other
1321	postemployment benefit plan, including the portion of multiple-
1322	employer plans attributed to the plan sponsor.
1323	(b) "Amounts due pension fund" means the unfunded
1324	actuarial accrued liability for a pension plan, including the
1325	portion of a multiple-employer plan attributed to the plan
1326	sponsor.
1327	(c) "Benefit enhancements" means the actuarial present
1328	value of total projected benefits attributed to the estimated
1329	increase in the benefits of retirees or beneficiaries granted by
1330	the proposed budget, employment contracts, or proposed or
1331	enacted changes to the state relating to pension plans. The
1332	benefit enhancements that result from plan members' expected
1333	future service amount may be reduced by the amount of specified
1334	revenue sources enacted into law.
1335	(d) "Capital assets" shall be defined using Governmental
1336	Accounting Standards Board concepts outlined in Governmental
1337	Accounting Standards Board Statement 34.
1338	(e) "Estimated balance sheet" means the estimated
1339	statement of net assets prepared using the Governmental
1340	Accounting Standards Board concepts outlined in Governmental
1341	Accounting Standards Board Statement 34.
1342	(f) "Estimated retirement plan's assets gain or loss"
1343	means the change in the actuarial value of assets at the
1344	beginning of the budget period and the actuarial value of assets
1345	at the end of the budget period.
1346	(g) "Fiduciary funds" shall be defined using Governmental
1347	Accounting Standards Board concepts outlined in Governmental
1348	Accounting Standards Board Statement 34.
1349	(h) "Fiscal budget documents" includes the estimated
1350	balance sheet, the estimated statement of activities, the
1351	estimated statement of cash flow, the estimated statement of
1352	fiscal balance, the estimated statement of fiscal deficit, and
1353	the estimated financial state of the state.
1354	(i) "Governmentwide generally accepted accounting
1355	principles" means the accounting standards used in the
1356	preparation of the governmentwide financial statements of the
1357	state and any political subdivision thereof which is required to
1358	prepare financial statements, using Governmental Accounting
1359	Standards Board concepts outlined in the Governmental Accounting
1360	Standards Board Statement 34.
1361	(j) "Increase or decrease in other postemployment benefits
1362	due" means the difference between any other postemployment
1363	benefit plan's estimated actuarial accrued liability at the
1364	beginning of the budget period and estimated actuarial accrued
1365	liability at the end of the budget period.
1366	(k) "Increase or decrease in pension benefits due" means
1367	the difference between a pension plan's estimated actuarial
1368	accrued liability at the beginning of the budget period and the
1369	estimated actuarial accrued liability at the end of the budget
1370	period.
1371	(l) "Net pension obligation," "net pension asset," "net
1372	other postemployment benefit obligation," "net other
1373	postemployment asset," "actuarial value of assets," "actuarial
1374	accrued liability," "unfunded actuarial accrued liability," and
1375	"actuarial present value of total projected benefits" shall be
1376	defined using Governmental Accounting Standards Board concepts
1377	outlined in Governmental Accounting Standards Board Statements
1378	45, 25, and 27, as amended by Governmental Accounting Standards
1379	Board Statement 50.
1380	(m) "Off-balance-sheet other postemployment benefit
1381	liabilities" means the difference between any other
1382	postemployment benefit plan's estimated unfunded actuarial
1383	accrued liability and the estimated net other postemployment
1384	benefit obligation or other postemployment benefit asset
1385	included in the estimated balance sheet.
1386	(n) "Off-balance-sheet pension liabilities" means the
1387	difference between a pension plan's estimated unfunded actuarial
1388	accrued liability and the estimated net pension obligation or
1389	net pension asset included in the estimated balance sheet.
1390	(o) "Other postemployment benefit plan" means any benefit
1391	plan other than a pension plan provided to employees or their
1392	families after retirement, termination, or death.
1393	(p) "Pension plan" means a retirement plan provided to
1394	employees by the state or any political subdivision of the state
1395	as provided by law.
1396	Section 25. Section 214.102, Florida Statutes, is created
1397	to read:
1398	214.102 Reporting requirements.-The Chief Financial
1399	Officer shall, for the state, and an official designated by the
1400	governing body of a political subdivision of the state shall,
1401	for each political subdivision, issue the following reports each
1402	year using data from the most recently completed fiscal year:
1403	(1) Statement of fiscal balance, which shall include the:
1404	(a) Columns used in the estimated balance sheet.
1405	(b) Total net assets as determined in the estimated
1406	balance sheet.
1407	(c) Off-balance-sheet pension liability.
1408	(d) Off-balance-sheet other postemployment benefit
1409	liability.
1410	(e) Resulting fiscal balance, which shall be calculated by
1411	subtracting the sum of all liabilities in paragraphs (a)-(d)
1412	from the sum of all assets in paragraphs (a)-(d).
1413	(2) Statement of fiscal deficit, which shall include the:
1414	(a) Columns used in the estimated statement of activities.
1415	(b) Change in net assets, as determined in the statement
1416	of activities.
1417	(c) Benefit enhancements.
1418	(d) Estimated retirement plan's gain or loss.
1419	(e) Increase or decrease in pension benefits due.
1420	(f) Increase or decrease in other postemployment benefits
1421	due.
1422	(g) Resulting fiscal deficit, which shall be calculated by
1423	subtracting all increases in liabilities in paragraphs (a)-(f)
1424	from all decreases in liabilities in paragraphs (a)-(f).
1425	(3) Estimated financial state of the state, estimated
1426	financial state of the county, or estimated financial state of
1427	the municipality, or other similar report where the title
1428	reflects the type of political subdivision releasing the report,
1429	which shall include:
1430	(a) The total revenues collected in each of the previous 3
1431	fiscal years.
1432	(b) The most recent estimate of the total revenues to be
1433	collected in the current and next 3 fiscal years.
1434	(c) A summary of the dollar amount of the reporting body's
1435	assets, broken down to include capital assets and other assets,
1436	and a total of all assets which shall be labeled "what we own."
1437	(d) A summary of the dollar amount of the reporting body's
1438	liabilities, broken down to include outstanding general
1439	obligation and special revenue bonds, amounts due pension funds,
1440	amounts due other postemployment benefit plans, other
1441	liabilities, and a total of all liabilities which shall be
1442	labeled "our bills."
1443	(e) A statement of the estimated financial state of the
1444	reporting body, which shall be calculated by subtracting the
1445	amount described in paragraph (d) from the amount described in
1446	paragraph (c).
1447	Section 26. Section 214.103, Florida Statutes, is created
1448	to read:
1449	214.103 Date of submission.-The reports required by this
1450	chapter shall be submitted by the Chief Financial Officer to the
1451	Governor, the Speaker of the House of Representatives, and the
1452	President of the Senate on or before February 28 of each year or
1453	by the official designated by the governing body of a political
1454	subdivision of the state to the governing body of that political
1455	subdivision no later than 120 days prior to the beginning of
1456	each fiscal year of that political subdivision. These reports
1457	shall also be posted online on a website owned and maintained by
1458	the body receiving the report and shall be available to the
1459	public.
1460	Section 27. If any unit of government makes a good faith
1461	determination that, in complying with the provisions of this
1462	act, the additional administrative costs will exceed the savings
1463	estimated by the increased employee contributions provided for,
1464	then that unit of government may postpone compliance with the
1465	provisions of this act until it determines that the estimated
1466	benefits will exceed the estimated costs.
1467	Section 28. Except as otherwise expressly provided in this
1468	act, this act shall take effect July 1, 2010.

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