Bill Text: FL S0198 | 2010 | Regular Session | Comm Sub

---

Bill Title: Retirement/Special Risk Class [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-04-30 - In Messages; Died in Messages [S0198 Detail]

Download: Florida-2010-S0198-Comm_Sub.html

---

 
Florida Senate - 2010                              CS for SB 198 
 
By the Committee on Governmental Oversight and Accountability; 
and Senator Baker 
585-05282-10                                           2010198c1 
1                        A bill to be entitled 
2         An act relating to retirement; amending s. 121.0515, 
3         F.S.; authorizing certain employees to purchase the 
4         retirement credit for past service at a 3 percent 
5         Special Risk Class accrual value; providing 
6         requirements for calculating the first 2 percent of a 
7         member’s average monthly compensation for purposes of 
8         purchasing past service credit; providing requirements 
9         for purchasing past service credit in excess of 2 
10         percent but not to exceed 3 percent of the member’s 
11         average monthly compensation; providing requirements 
12         for calculating the contribution amount; requiring the 
13         employer to pay the costs for performing the 
14         calculation; requiring the contribution for past 
15         service credit to be paid immediately upon 
16         notification by the Division of Retirement; providing 
17         that past service credit may be purchased by the 
18         member or by the employer on behalf of the member; 
19         providing a declaration of important state interest; 
20         providing an effective date. 
21 
22  Be It Enacted by the Legislature of the State of Florida: 
23 
24         Section 1. Subsection (5) of section 121.0515, Florida 
25  Statutes, is amended to read: 
26         121.0515 Special risk membership.— 
27         (5) CREDIT FOR PAST SERVICE.—A special risk member may 
28  purchase retirement credit in the Special Risk Class based upon 
29  past service, and may upgrade retirement credit for such past 
30  service, to the extent of 3 2 percent of the member’s average 
31  monthly compensation as specified in s. 121.091(1)(a) for such 
32  service as follows: 
33         (a) The member may purchase special risk credit for past 
34  service with a city or special district which has elected to 
35  join the Florida Retirement System, or with a participating 
36  agency to which a member’s governmental unit was transferred, 
37  merged, or consolidated as provided in s. 121.081(1)(f), if the 
38  member was employed with the city or special district at the 
39  time it commenced participating in the Florida Retirement System 
40  or with the governmental unit at the time of its transfer, 
41  merger, or consolidation with the participating agency. The 
42  service must satisfy the criteria set forth in subsection (2) 
43  for special risk membership as a law enforcement officer, a 
44  firefighter, a or correctional officer, or an emergency medical 
45  technician or paramedic whose employer was a licensed advanced 
46  life support or basic life support provider; however, no 
47  certificate or waiver of certificate of compliance with s. 
48  943.1395 or s. 633.35 shall be required for such service. 
49         (b) Contributions for upgrading the first 2 percent of the 
50  member’s average monthly compensation for the additional special 
51  risk credit pursuant to this subsection shall be equal to the 
52  difference in the contributions paid and the special risk 
53  percentage rate of gross salary in effect at the time of 
54  purchase for the period being claimed, plus interest thereon at 
55  the rate of 4 percent a year compounded annually from the date 
56  of such service until July 1, 1975, and 6.5 percent a year 
57  thereafter until the date of payment. This past service may be 
58  purchased by the member or by the employer on behalf of the 
59  member. 
60         (c) Contributions for upgrading additional special risk 
61  credit in excess of 2 percent but not to exceed 3 percent of the 
62  member’s average monthly compensation shall be an amount 
63  representing the actuarial accrued liability for the difference 
64  in accrual value during the period of service for which credit 
65  is being purchased. Contributions shall be calculated by an 
66  actuary designated by the department using the discount rate and 
67  other relevant actuarial assumptions that were used to value the 
68  Florida Retirement System defined benefit plan liabilities in 
69  the most recent actuarial valuation. Before such calculations 
70  are performed, the employer shall pay the division $400 per 
71  calculation or all costs associated with an actuarial study to 
72  determine the contribution, whichever is higher, regardless of 
73  whether the credit upgrade is purchased. The contribution for 
74  the service credit being purchased must be paid by the member or 
75  by the employer on behalf of the member immediately upon 
76  notification by the division. 
77         Section 2. The Legislature finds that a proper and 
78  legitimate state purpose is served when employees and retirees 
79  of the state and of its political subdivisions, and the 
80  dependents, survivors, and beneficiaries of such employees and 
81  retirees, are extended the basic protections afforded by 
82  governmental retirement systems that provide fair and adequate 
83  benefits and that are managed, administered, and funded in an 
84  actuarially sound manner as required by s. 14, Article X of the 
85  State Constitution and part VII of chapter 112, Florida 
86  Statutes. Therefore, the Legislature determines and declares 
87  that the provisions of this act fulfill an important state 
88  interest. 
89         Section 3. This act shall take effect July 1, 2010.