Bill Text: FL H5607 | 2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Retirement [WPSC]

Sponsorship: Partisan Bill (Republican 1)

Status: (Vetoed) 2010-07-19 - Veto Message received -HJ 00011; Veto Message referred to Rules and Calendar Council -HJ 00016 [H5607 Detail]

Download: Florida-2010-H5607-Introduced.html

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HB 5607

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A bill to be entitled

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An act relating to retirement; amending s. 121.71, F.S.;

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revising the payroll contribution rates for the membership

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classes of the Florida Retirement System for the state

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fiscal years effective July 1, 2010, and July 1, 2011;

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deleting a provision providing for recognition and usage

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of current available excess assets of the Florida

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Retirement System Trust Fund to offset employer

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contribution rates for the Florida Retirement System;

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requiring the state actuary to consider additional factors

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when conducting the annual actuarial study of the Florida

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Retirement System; specifying the factors to be

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considered; providing a declaration of important state

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interest; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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Section 1. Section 121.71, Florida Statutes, is amended to

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read:

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121.71 Uniform rates; process; calculations; levy.-

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(1) In conducting the system actuarial study required

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under s. 121.031, the actuary shall follow all requirements

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specified thereunder to determine, by Florida Retirement System

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employee membership class, the dollar contribution amounts

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necessary for the forthcoming fiscal year for the defined

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benefit program. In addition, the actuary shall determine, by

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Florida Retirement System membership class, based on an estimate

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for the forthcoming fiscal year of the gross compensation of

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employees participating in the optional retirement program, the

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dollar contribution amounts necessary to make the allocations

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required under ss. 121.72 and 121.73. For each employee

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membership class and subclass, the actuarial study shall

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establish a uniform rate necessary to fund the benefit

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obligations under both Florida Retirement System retirement

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plans by dividing the sum of total dollars required by the

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estimated gross compensation of members in both plans.

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(2) Based on the uniform rates set forth in subsection

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(3), employers shall make monthly contributions to the Division

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of Retirement, which shall initially deposit the funds into the

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Florida Retirement System Contributions Clearing Trust Fund. A

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change in a contribution rate is effective the first day of the

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month for which a full month's employer contribution may be made

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on or after the beginning date of the change.

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(3) Required employer retirement contribution rates for

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each membership class and subclass of the Florida Retirement

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System for both retirement plans are as follows:

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Membership Class

Percentage of Gross Compensation,Effective July 1, 2010 2009

Percentage of Gross Compensation,Effective July 1, 2011 2010

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Regular Class

9.76% 8.69%

11.34% 9.63%

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Special Risk Class

22.15% 19.76%

28.12% 22.11%

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Special Risk Administrative Support Class

11.24% 11.39%

27.21% 12.10%

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Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders

14.38% 13.32%

31.43% 15.20%

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Elected Officers' Class- Justices, Judges

19.39% 18.40%

30.39% 20.65%

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Elected Officers' Class- County Elected Officers

16.62% 15.37%

36.37% 17.50%

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Senior Management Class

11.70% 11.96%

20.97% 13.43%

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DROP

14.23% 9.80%

19.20% 11.14%

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(4) The state actuary shall recognize and use an

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appropriate level of available excess assets of the Florida

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Retirement System Trust Fund to offset the difference between

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the normal costs of the Florida Retirement System and the

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statutorily prescribed contribution rates.

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Section 2. As part of the actuarial study required by s.

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121.031(3), Florida Statutes, based on the results of June 30,

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2010, the administrator of the Florida Retirement System shall

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contract with the state actuary to conduct an actuarial study of

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the Florida Retirement System which considers the following

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methods of funding the Deferred Retirement Option Program:

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(1) Through a separate contribution rate regardless of the

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participant's membership class, which had been the principle

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method through the 2009 valuation;

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(2) Treat participants as retirees such that the payroll

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associated with the participants is not used to develop the

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contribution rates for the respective membership class, and the

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employer is not required to make contributions on such payroll

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except for unfunded actuarial liability contributions; and

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(3) Treat participants as active members such that the

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payroll associated with the participants is used to develop the

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contribution rates for the respective membership class, and the

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employer is required to make contributions on the payroll at the

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same contribution rate as the employer pays for an active member

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of the applicable class.

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Section 3. The Legislature finds that a proper and

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legitimate state purpose is served when employees and retirees

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of the state and its political subdivisions, and the dependents,

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survivors, and beneficiaries of such employees and retirees, are

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extended the basic protections afforded by governmental

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retirement systems. These persons must be provided benefits that

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are fair and adequate and that are managed, administered, and

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funded in an actuarially sound manner, as required by s. 14,

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Article X of the State Constitution and part VII of chapter 112,

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Florida Statutes. Therefore, the Legislature determines and

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declares that this act fulfills an important state interest.

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Section 4. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.