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Local Pension Bill Headed To Gov. Scott

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TALLAHASSEE (CBSMiami/NSF) -- A bill that would revamp funding for local pensions for police officers and firefighters is headed to Florida Governor Rick Scott.

The House on Friday overwhelmingly the measure.

The bill (SB 172), which passed the Senate on Wednesday, cleared the House in a 112-4 vote. Supporters say changes are necessary because of concerns about the financial health of some local pension plans. The bill would essentially repeal existing restrictions in state law on how insurance-premium taxes are spent, so long as local governments and unions can come to agreement.

Insurance premium taxes are a key source of money for the pension plans. If there is no agreement, the taxes would be sifted through a complex formula detailing how much should be spent on existing benefits and how much should be given to workers in a separate retirement account.

It was built on a deal struck last year between the cities and police and firefighters unions.

"This bill is extremely fair and balanced," said Rep. Travis Cummings, R-Orange Park. However, the Florida League of Cities has backed away this year.

Under Scott, the state Department of Management Services had issued what is known as the "Naples letter," a controversial reinterpretation of state law that gave cities a much freer hand in how they used the premium taxes --- driving unions to the bargaining table. But critics have questioned the letter's legality, and cities were concerned in 2014 that Democratic gubernatorial candidate Charlie Crist might return to the old interpretation of the law if he won the election.

Scott defeated Crist in the November election, something that the League of Cities has admitted played into its decision to oppose the deal this year.

(The News Service of Florida contributed to this report.)

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