1. (1) In order for municipalities with their own pension plans for police officers or for police officers and other employees to participate in the distribution of the tax fund established in ss. 185.07, 185.08, and 185.09, their retirement funds must meet each of the following standards:

   1. (a) The plan must be for the purpose of providing retirement and disability income for police officers.
   2. (b) The normal retirement age, if any, must not be higher than age 60.
   3. (c) If the plan provides for a stated period of service as a requirement to receive a retirement income, that period must not be higher than 30 years.
   4. (d) The benefit formula to determine the amount of monthly pension must be equal to at least 2 percent for each year of the police officer's credited service, multiplied by his or her average final compensation. However, if current state contributions pursuant to this chapter are not adequate to fund the additional benefits to meet the minimum requirements in this chapter, only increment increases shall be required as state moneys are adequate to provide. Such increments shall be provided as state moneys become available.
   5. (e) If a ceiling on the monthly payment is stated in the plan, it should be no lower than $100.

   6. (f) Death or survivor benefits and disability benefits may be incorporated into the plan as the municipality wishes but in no event should the single-sum value of such benefits as of the date of termination of service because of death or disability exceed:

      1. One hundred times the estimated normal monthly retirement income, based on the assumption that the present rate of compensation continues without change to normal retirement date,

      2. Twice the annual rate of compensation as of the date of termination of service, or

      3. The single-sum value of the accrued deferred retirement income (beginning at normal retirement date) at date of termination of service, whichever is greatest; however, nothing in this paragraph shall require any reduction in death or disability benefits provided by a retirement plan in effect on July 1, 1959.

   7. (g) Eligibility for coverage under the plan must be based upon length of service, or attained age, or both, and benefits must be determined by a nondiscriminatory formula based upon:

      1. Length of service and compensation, or

      2. Length of service. The retirement plan shall require participants to contribute toward the cost of the plan an amount which shall not be less than 1 percent of salary, and it must set forth the termination rights, if any, of an employee in the event of the separation or withdrawal of an employee before retirement.

   8. (h) An actuarial valuation of the retirement plan must be made at least once in every 5 years commencing with December 31, 1963, and at least every 3 years commencing from the last actuarial report of the plan or system or from October 1, 1986, if no actuarial report has been issued within the 3 years prior to October 1, 1983. Such valuation shall be prepared by an enrolled actuary.

      1. The cost of the actuarial valuation must be paid by the individual retirement fund or by the municipality.

      2. A report of the valuation, including actuarial assumptions and type and basis of funding, shall be made to the division within 3 months after the date of valuation. If any benefits are insured with a commercial insurance company, the report shall include a statement of the relationship of the retirement plan benefits to the insured benefits and, in addition, the name of the insurer, basis of premium rates, and the mortality table, interest rate, and method used in valuing retirement benefits.

   9. (i) Commencing on July 1, 1964, the municipality shall contribute to the plan annually an amount which together with the contributions from the police officers, the amount derived from the premium tax provided in s. 185.08, and other income sources will be sufficient to meet the normal cost of the plan and to fund the actuarial deficiency over a period not longer than 40 years.
   10. (j) No retirement plan or amendment to a retirement plan shall be proposed unless the proposed plan or amendment contains an actuarial estimate of the costs involved. No such proposed plan change shall be adopted without the approval of the municipality. Copies of the proposed change and the actuarial impact statement of the proposed change shall be furnished to the division prior to the last public hearing thereon. Such statement shall also indicate whether the proposed change is in compliance with s. 14, Art. X of the State Constitution and those provisions of part VII of chapter 112 which are not expressly provided in this chapter.

   11. (k) Each year on or before March 15, the trustees of the retirement plan must submit the following information to the division in order for the retirement plan of such municipality to receive a share of state funds for the then-current calendar year; when any of these items would be identical with the corresponding item submitted for a previous year, it is not necessary for the trustees to submit duplicate information if they make reference to the item in such previous year's report:

       1. A certified copy of each and every instrument constituting or evidencing the plan.

       2. An independent audit by a certified public accountant if the fund has $100,000 or more in assets, or a certified statement of accounting if the fund has less than $100,000 in assets, for the most recent fiscal year of the municipality showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year.

       3. A certified statement listing the investments of the plan and a description of the methods used in valuing the investments.

       4. A statistical exhibit showing the total number of police officers, the number included in the plan, and the number ineligible classified according to the reasons for their being ineligible.

       5. A statement of the amount the municipality and other income sources have contributed toward the plan or will contribute toward the plan for the current calendar year.

2. (2) If a municipality has a police officers' retirement plan which, in the opinion of the division, meets the standards set forth in subsection (1), the board of trustees of the pension plan, as approved by a majority of the police officers of the municipality affected, or the official pension committee, as approved by a majority of the police officers of the municipality affected, may place the income from the premium tax in s. 185.08 in its existing pension fund for the sole and exclusive use of its police officers (or for firefighters and police officers where included), where it shall become an integral part of that fund, or may use the income to pay extra benefits to the police officers included in the fund.
3. (3) The retirement plan setting forth the benefits and the trust agreement, if any, covering the duties and responsibilities of the trustees and the regulations of the investment of funds must be in writing and copies made available to the participants and to the general public.

4. (4)

   1. (a) The membership of the board of trustees for pension plans operated pursuant to this section shall be as follows:

      1. If a municipality has a pension plan for police officers only, the provisions of s. 185.05 shall apply.

      2. If a municipality has a pension plan for police officers and firefighters, the provisions of s. 185.05 shall apply, except that two members of the board shall be police officers or firefighters who shall be elected by a majority of the police officers and firefighters who are members of the plan.

      3. If a municipality has a pension plan for police officers and general employees, at least one member of the board shall be a police officer who shall be elected by a majority of the police officers who are members of the plan.

      4. If a municipality has a pension plan for police officers, firefighters, and general employees, at least one member of the board shall be a police officer or firefighter who shall be elected by a majority of the police officers and firefighters who are members of the plan.

   2. (b) Nothing in this section shall permit the reduction of the membership percentage of police officers, or police officers and firefighters where a joint or mixed fund exists, on any board of trustees operating a pension plan pursuant to this section on June 30, 1986.
5. (5) The provisions of this section and s. 185.05 may not be changed by a participating municipality operating a pension plan pursuant to this section.

History.--s. 7, ch. 59-320; s. 2, ch. 61-119; s. 3, ch. 63-196; ss. 13, 35, ch. 69-106; s. 23, ch. 86-42; s. 47, ch. 93-193; s. 956, ch. 95-147.