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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Retirement [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

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
HB 5607
A bill to be entitled
2An act relating to retirement; amending s. 121.71, F.S.;
3revising the payroll contribution rates for the membership
4classes of the Florida Retirement System for the state
5fiscal years effective July 1, 2010, and July 1, 2011;
6deleting a provision providing for recognition and usage
7of current available excess assets of the Florida
8Retirement System Trust Fund to offset employer
9contribution rates for the Florida Retirement System;
10requiring the state actuary to consider additional factors
11when conducting the annual actuarial study of the Florida
12Retirement System; specifying the factors to be
13considered; providing a declaration of important state
14interest; providing an effective date.
16Be It Enacted by the Legislature of the State of Florida:
18 Section 1. Section 121.71, Florida Statutes, is amended to
20 121.71 Uniform rates; process; calculations; levy.-
21 (1) In conducting the system actuarial study required
22under s. 121.031, the actuary shall follow all requirements
23specified thereunder to determine, by Florida Retirement System
24employee membership class, the dollar contribution amounts
25necessary for the forthcoming fiscal year for the defined
26benefit program. In addition, the actuary shall determine, by
27Florida Retirement System membership class, based on an estimate
28for the forthcoming fiscal year of the gross compensation of
29employees participating in the optional retirement program, the
30dollar contribution amounts necessary to make the allocations
31required under ss. 121.72 and 121.73. For each employee
32membership class and subclass, the actuarial study shall
33establish a uniform rate necessary to fund the benefit
34obligations under both Florida Retirement System retirement
35plans by dividing the sum of total dollars required by the
36estimated gross compensation of members in both plans.
37 (2) Based on the uniform rates set forth in subsection
38(3), employers shall make monthly contributions to the Division
39of Retirement, which shall initially deposit the funds into the
40Florida Retirement System Contributions Clearing Trust Fund. A
41change in a contribution rate is effective the first day of the
42month for which a full month's employer contribution may be made
43on or after the beginning date of the change.
44 (3) Required employer retirement contribution rates for
45each membership class and subclass of the Florida Retirement
46System for both retirement plans are as follows:
Membership ClassPercentage of Gross Compensation, Effective July 1, 2010 2009Percentage of Gross Compensation, Effective July 1, 2011 2010
Regular Class9.76% 8.69%11.34% 9.63%
Special Risk Class22.15% 19.76%28.12% 22.11%
Special Risk Administrative Support Class11.24% 11.39%27.21% 12.10%
Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders14.38% 13.32%31.43% 15.20%
Elected Officers' Class- Justices, Judges19.39% 18.40%30.39% 20.65%
Elected Officers' Class- County Elected Officers16.62% 15.37%36.37% 17.50%
Senior Management Class11.70% 11.96%20.97% 13.43%
DROP14.23% 9.80%19.20% 11.14%
57 (4) The state actuary shall recognize and use an
58appropriate level of available excess assets of the Florida
59Retirement System Trust Fund to offset the difference between
60the normal costs of the Florida Retirement System and the
61statutorily prescribed contribution rates.
62 Section 2. As part of the actuarial study required by s.
63121.031(3), Florida Statutes, based on the results of June 30,
642010, the administrator of the Florida Retirement System shall
65contract with the state actuary to conduct an actuarial study of
66the Florida Retirement System which considers the following
67methods of funding the Deferred Retirement Option Program:
68 (1) Through a separate contribution rate regardless of the
69participant's membership class, which had been the principle
70method through the 2009 valuation;
71 (2) Treat participants as retirees such that the payroll
72associated with the participants is not used to develop the
73contribution rates for the respective membership class, and the
74employer is not required to make contributions on such payroll
75except for unfunded actuarial liability contributions; and
76 (3) Treat participants as active members such that the
77payroll associated with the participants is used to develop the
78contribution rates for the respective membership class, and the
79employer is required to make contributions on the payroll at the
80same contribution rate as the employer pays for an active member
81of the applicable class.
82 Section 3. The Legislature finds that a proper and
83legitimate state purpose is served when employees and retirees
84of the state and its political subdivisions, and the dependents,
85survivors, and beneficiaries of such employees and retirees, are
86extended the basic protections afforded by governmental
87retirement systems. These persons must be provided benefits that
88are fair and adequate and that are managed, administered, and
89funded in an actuarially sound manner, as required by s. 14,
90Article X of the State Constitution and part VII of chapter 112,
91Florida Statutes. Therefore, the Legislature determines and
92declares that this act fulfills an important state interest.
93 Section 4. This act shall take effect July 1, 2010.
CODING: Words stricken are deletions; words underlined are additions.