etw
Cypen & Cypen  
Home Attorney Profiles Clients Resource Links Newsletters navigation
    
777 Arthur Godfrey Road
Suite 320
Miami Beach, Florida 33140

Telephone 305.532.3200
Telecopier 305.535.0050
info@cypen.com

Click here for a
free subscription
to our newsletter

Miami

Cypen & Cypen
SPECIAL SUPPLEMENT

for
MAY 31, 2011

Stephen H. Cypen, Esq., Editor

FLORIDA MUNICIPAL POLICE OFFICERS’ AND
FIREFIGHTERS’ RETIREMENT FUND OFFICE
RELEASES SUMMARY OF NEW LEGISLATION

 

Senate Bill 1128 made several changes to all Florida’s local government defined benefit retirement plans with amendments to Chapter 112,Florida Statutes, as well as the Municipal Police Officers’ and Firefighters’ Retirement Trust Fund plans operating under chapters 175 and 185, Florida Statutes, (see C&C Special Supplement for May 12, 2011).

Although this bill has not yet become law, the Retirement Fund Office knows there are many questions, and wants to present information to help with understanding these changes.

Listed below are the key changes made in this legislation:

Overtime, accrued vacation and sick leave payments for pension purposes
Change applies to: all local plans – Chapter 112, Florida Statutes

  • For service earned on or after the “effective date” (July 1, 2011), for non-collectively bargained service; or the date of entry into the firstcollective bargaining agreement (CBA) entered into on or after July 1, 2011, for collectively bargained service), a defined benefit plan may include up to 300 hours per year of overtime compensation, as specified in the plan or CBA, but may not include any payments for accrued unused sick or annual leave in the retirement calculation.

Payments for overtime greater than 300 hours per year or accrued unused annual or sick leave accrued with service earned before the “effective date” may still be included in compensation for pension purposes, as provided in the plan document or CBA, even if the payment is not actually made until on or after the “effective date”.

Plan sponsor contributions relating to normal cost
Change applies to: all local plans – Chapter 112, Florida Statutes

  • Effective July 1, 2011, a local government sponsor of a defined benefit plan may not reduce contributions required to fund the normal cost of the plan.  If the Actuarially Required Contribution is less than the normal cost, employer contributions must at least equal the normal cost.

This change in funding will require actuarial review and must be funded in accordance with chapter 60T-1.004(4), F.A.C.  The minimum funding requirement must begin no later than the first day of the next fiscal year for the plan.

Overtime, accrued vacation and sick leave payments for pension purposes (175/185 specific)
Change applies to: local Police Officer and Firefighter pension plans – Chapters 175 & 185, Florida Statutes,

  • There are no changes to the definition of “compensation” or “salary” for service earned prior to the “effective date”. 
  • Police Plans continue to require 300 hours of overtime in the retirement calculation as a minimum benefit. Fire Plans may include up to 300 hours.
  • For service earned on or after the “effective date”, a Chapter 175 or 185 plan may include up to 300 hours per year of overtime compensation, as specified in the plan or CBA, but may not include any payments for accrued unused sick or annual leave in the retirement calculation.

Payments for overtime greater than 300 hours per year or accrued unused annual or sick leave accrued with service earned before the “effective date” may still be included in compensation for pension purposes, as provided in the plan document or CBA, even if the payment is not actually made until on or after the “effective date”.

Board of Trustees – makeup of the board of trustees
Change applies to: local Police Officer and Firefighter pension plans – Chapters 175 & 185, Florida Statutes,

  • This amendment only applies to those local law plans in effect on June 30, 1986 having a higher than 40% employee representation on the board. For these boards that were grandfathered in under the amendments in 1986, the City may now change the designated municipal representative on the board. Such municipal representatives must continue to be residents of the municipality. This change may not reduce the membership percentage of firefighters, police officers, or the municipal representatives on the board.

Employee Contribution increases
Change applies to: local Police Officer and Firefighter pension plans – Chapters 175 & 185, Florida Statutes

  • As of the “effective date”, employee contributions may be increased by consent of the members’ collective bargaining unit, or if none, by majority consent of the police officers and firefighters. Increases in employee contributions are no longer contingent upon providing greater benefits.

Collectively Bargained Benefits & Non-collectively Bargained Benefits – Effective Date
Change applies to: all local plans – Chapter 112, Florida Statutes, 175 & 185, Florida Statutes

  • Where the members are represented by a collective bargaining agent (whether the CBA includes pension benefits or not) these provisions are effective on the date of entry into the first CBA entered into on or after July 1, 2011.
  • For Chapters 175 & 185 plans, if some of the police and firefighters are represented by a collective bargaining agent, then the effective date is the date of entry into the first CBA entered into on or after July 1, 2011 for all police and firefighters regardless of whether they are members of the collective bargaining unit or not.
  • In cities/districts where the members are not represented by a collective bargaining agent, the effective date shall be July 1, 2011.

If you have questions regarding these changes, please call the Municipal Police Officers’ and Firefighters’ Retirement Fund Office at (850) 922-0667 or toll free (877) 738-6737.

A copy of this information sheet is posted on the Retirement Office website at www.myflorida.com/frs/mpf

Once the bill becomes law the website will be updated to show the Chapter number and section by section analysis. 

 

 

 

 

 

Copyright, 1996-2011, all rights reserved.

Items in this Newsletter may be excerpts or summaries of original or secondary source material, and may have been reorganized for clarity and brevity. This Newsletter is general in nature and is not intended to provide specific legal or other advice.


Site Directory:
Home // Attorney Profiles // Clients // Resource Links // Newsletters