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02-22-2013, 09:29 PM #1
Capitol report for week ending 2/22/13
Weekly Wrap Up: For the Week Ending February 22, 2013
Municipal Police and Firefighter Pensions were the major topics of the week in Tallahassee. The Senate Governmental Oversight & Accountability Committee held a hearing on Thursday, February 21, to discuss SB 458 by Senator Jeremy Ring. The legislation had been work-shopped twice during the interim committee weeks and the version presented yesterday was a combination of amendments by Senator Ring and Senator Rob Bradley. I will provide more details on the legislation in the recap below.
The Legislature is taking a one week break before the 2013 Session officially begins on Tuesday, March 5th. The Legislature will look at reforming state and local government pensions during this session so please keep informed by reading our weekly Capitol Reports. We will send you important information via email as it becomes available.
As always, stay safe out there.
Municipal Pension
CS/SB 458 by Senator Jeremy Ring
Firefighter and Police Pension Plans
This legislation's main objective is to redefine how premium tax revenue collected by the state from home and auto insurance policies will be used to provide benefits for police and firefighter pension plans. The two chapters of law being amended by this legislation are chapters 175 and 185 Florida Statutes.
Copy of the Legislation:
SB 458 Firefighter and Police Pension Plans
2/21 Broadcast of the Senate Government Oversight & Accountability Committee: PBA Lobbyist David Murrell's remarks begin at the 9:14 mark. Broadcast made available by the Florida Channel.
http://thefloridachannel.org/video/2211 ... ntability/
A quick summary of the legislation - excerpt from the committee staff analysis
"Plan benefits in existence in 1999 must be paid by the amount of premium tax revenues the plan sponsors received in 1997. Plans less than 80% funded (meaning these plans have an Unfunded Actuarial Liability 'UAL' of more than 20%) must use 50% of their post-2012 increase in premium tax revenues, and accumulated premium tax revenues, to pay the plans actuarial deficiency. Twenty-five percent of the post-2012 increase must fund defined contribution benefits, and 25% must be used to fund base benefits. Plans funded greater than 80% must use half of the post-2012 increase in premium tax revenues for defined contribution benefits, and the other half for the base benefits. The increase in additional premium tax revenues between 1997 and 2012 must be used to fund any benefits that were not included in the base benefits of the plan."
Major concerns the Florida PBA has with the current version of the legislation:
1) The legislation does not allow full use of the premium tax revenue for plans that are 100% funded.
2) Language in the legislation could give the cities an ability to reduce benefits without collective bargaining.
3) The legislation does not provide a delayed implementation period to allow the Division of Retirement to promulgate news rules.
4) The legislation does take into account previous legal decisions on the use of premium tax revenues in certain cities.
5) The legislation does not handle the use of accumulated premium tax revenues in a fair manner.
Florida PBA is currently opposed to the legislation, but we have a great relationship with Senator Jeremy Ring and we have pledged to continue to work with him during the committee process to attempt to address all of our concerns. The legislation will be heard in the Senate Community Affairs Committee once session officially begins.
The Senate Government Oversight & Accountability Committee voted unanimously in favor of SB 458.
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