CS/HB 1399 - Firefighter and Police Officer Pension Plans Summary

• Requires all firefighter and police officer pension plans (Chapter 175 and Chapter 185) to meet minimum benefits and standards to receive insurance premium tax revenues, making compliance a condition precedent for tax fund distribution.

• Establishes mandatory additional pension fund payments by municipalities when local law plans have a long-term funded ratio below 80 percent, with amounts calculated under specified formulas.

• Requires all plan sponsors to implement defined contribution plan components within local law plans by October 1, 2013 (or July 1, 2014 for special act plans), alongside existing defined benefit components.

• Modifies premium tax revenue usage for plans with long-term funded ratios below 80 percent: 50 percent for actuarial deficiency, 25 percent for base benefits, remainder for defined contribution plan benefits.

• Effective July 1, 2013, with a declaration that the act serves an important state interest in providing fair, adequate, and actuarially sound retirement benefits for public employees and their beneficiaries.