175.351  Municipalities and special fire control districts having their own pension plans for firefighters.--In order for municipalities and special fire control districts with their own pension plans for firefighters or for firefighters and other employees to participate in the distribution of the tax fund established in ss. 175.101-175.121 and 175.131-175.151, their pension funds must meet each of the following standards:

(1)  The plan must be for the purpose of providing retirement and disability income for firefighters or their beneficiaries.

(2)  The normal retirement age, if any, must not be more than age 60.

(3)  If the plan provides for a stated period of service as a requirement to receive a retirement income, that period must not be more than 30 years.

(4)  The benefit formula to determine the amount of monthly pension must be equal to at least 2 percent for each year of the firefighter'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)  If a ceiling on the monthly payment is stated in the plan, it should be no lower than $100.

(6)  Death or survivor benefits and disability benefits may be incorporated into the plan as the municipalities or special fire control districts wish, 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:

(a)  One hundred times the estimated normal retirement income, based on the assumption that the present rate of compensation continues without change to normal retirement date,

(b)  Twice the annual rate of compensation as of date of termination of service, or

(c)  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 subsection shall require any reduction in death or disability benefits provided by a retirement plan in effect prior to July 1, 1963.

(7)  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:

(a)  Length of service and compensation, or

(b)  Length of service.

(8)  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 before retirement.

(9)  An actuarial valuation of the retirement plan must be made at least once every 5 years commencing December 31, 1968, 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. Such valuation shall be subject to the following:

(a)  The assets shall be valued at cost or market or on such other basis as may be approved by the division.

(b)  Minimum actuarial assumptions and methods to be used in valuing the liabilities shall be provided by the division and revised from time to time by it. The valuation must be on basis and methods not less conservative than those set forth by the division.

(c)  The cost of the actuarial valuation must be paid by each individual firefighters' retirement fund or by the municipality or special fire control district.

(d)  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 should 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, mortality table, interest rate, and method used in valuing the retirement benefits.

(e)  However, if an actuarial valuation has been made subsequent to December 31, 1963, the 5-year period will commence on the date of that valuation.

(10)  The municipality or special fire control district shall contribute to the plan annually an amount which, together with the contributions from the firefighters and the amount derived from the premium tax provided in s. 175.101 and other income sources as authorized by law, will be sufficient to meet the normal cost of the plan and to fund the actuarial deficiency over a period of not more than 40 years.

(11)  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 or special fire control district. 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.

(12)  Each year, on or before March 15, the trustees of the retirement plan shall submit the following information to the division in order for the retirement plan of such municipality or special fire control district to receive a share of the 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:

(a)  A certified copy of each and every instrument constituting or evidencing the plan. This includes the formal plan, including all amendments, the trust agreement, copies of all insurance contracts, and formal announcement material.

(b)  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 or special fire control district, 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.

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

(d)  A statistical exhibit showing the total number of firefighters, the number included in the plan, and the number ineligible classified according to the reasons for their being ineligible.

(e)  A certified statement describing the methods, factors, and actuarial assumption used in determining the cost.

(f)  A certified statement by an enrolled actuary showing the results of the latest triennial valuation of the plan and a copy of the detailed worksheets showing the computations used in arriving at the results.

(g)  A statement of the amount the municipality or special fire control district, or other income source, has contributed toward the plan for the most recent fiscal year and will contribute toward the plan for the current fiscal year.

(13)  If a municipality or special fire control district has a firefighters' retirement fund which, in the opinion of the division, meets the standards set forth in subsections (1) through (12), the board of trustees of the pension fund, as approved by a majority of firefighters of the municipality or special fire control district affected, or the official pension committee, as approved by a majority of firefighters of the municipality or special fire control district affected, may place the income from the premium tax in s. 175.101 in its existing pension fund for the sole and exclusive use of its firefighters (or for firefighters and police officers where included), where it shall become an integral part of that fund, or may use such income to pay extra benefits to the firefighters included in the fund.

(14)  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 thereof must be made available to the participants and to the general public.

(15)(a)  The membership of boards of trustees for pension plans operated pursuant to this section shall be as follows:

1.  If a municipality or special fire control district has a pension plan for firefighters only, the provisions of s. 175.061 shall apply.

2.  If a municipality has a pension plan for firefighters and police officers, the provisions of s. 175.061 shall apply, except that two members of the board shall be firefighters or police officers who shall be elected by a majority of the firefighters and police officers who are members of the plan.

3.  If a municipality or special fire control district has a pension plan for firefighters and general employees, at least one member of the board shall be a firefighter who shall be elected by a majority of the firefighters who are members of the plan.

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

(b)  Nothing in this section shall permit the reduction of the membership percentage of firefighters, or firefighters and police officers where a joint or mixed fund exists, on any board of trustees operating a pension plan pursuant to this section on June 30, 1986.

(16)  The provisions of this section and s. 175.061 may not be changed by a participating municipality or special fire control district operating a pension plan pursuant to this section.