CS/CS/HB 341 - Local Government Pension Reform Summary

• Requires firefighter and police officer pension plans to meet minimum benefits and minimum standards in chapters 175 and 185 to receive insurance premium tax revenues.

• Mandates that pension plan boards provide detailed annual accounting reports of expenses to plan sponsors and members, and operate under administrative expense budgets.

• Establishes minimum retirement benefit calculations at 2.75 percent of average final compensation for full-time firefighters and police officers, with provisions allowing plans with lower percentages as of July 1, 2015 to maintain those levels without increasing.

• Requires all plan sponsors to establish a defined contribution plan component by October 1, 2015 for noncollectively bargained service and upon entering into new collective bargaining agreements.

• Allocates insurance premium tax revenues with 50 percent directed to defined benefit components and 50 percent to defined contribution components for plans created after March 1, 2015, with flexibility for mutual consent deviations that maintain minimum benefits and standards.