Bill Text: FL S2506 | 2014 | Regular Session | Introduced


Bill Title: State-administered Retirement Systems

Spectrum: Committee Bill

Status: (Introduced - Dead) 2014-04-03 - Laid on Table, companion bill(s) passed, see HB 5005 (Ch. 2014-54), HB 5001 (Ch. 2014-51) [S2506 Detail]

Download: Florida-2014-S2506-Introduced.html
       Florida Senate - 2014                                    SB 2506
       
       
        
       By the Committee on Governmental Oversight and Accountability
       
       
       
       
       
       585-02566-14                                          20142506__
    1                        A bill to be entitled                      
    2         An act relating to state-administered retirement
    3         systems; amending s. 112.363, F.S.; increasing the
    4         employer contribution to the retiree health insurance
    5         subsidy for members of a state-administered plan;
    6         amending s. 121.052, F.S.; increasing the employer
    7         contribution to the health insurance subsidy for
    8         members of the Elected Officers’ Class; amending s.
    9         121.055, F.S.; increasing the employer contribution to
   10         the health insurance subsidy for members of the Senior
   11         Management Service Class; amending s. 121.071, F.S.;
   12         increasing the employer contribution to the health
   13         insurance subsidy for members of the Regular, Special
   14         Risk, and Special Risk Administrative Support Classes;
   15         amending s. 121.71, F.S.; revising the amount of
   16         employer contributions for the next fiscal year;
   17         amending s. 121.74, F.S.; revising terminology to
   18         refer to an employer assessment to offset the costs of
   19         administering the investment plan and providing
   20         education services; providing findings of important
   21         state interests; providing an effective date.
   22          
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Paragraph (h) is added to subsection (8) of
   26  section 112.363, Florida Statutes, to read:
   27         112.363 Retiree health insurance subsidy.—
   28         (8) CONTRIBUTIONS.—For purposes of funding the insurance
   29  subsidy provided by this section:
   30         (h) Beginning July 1, 2014, the employer of each member of
   31  a state-administered plan shall contribute 1.30 percent of gross
   32  compensation each pay period.
   33  
   34  Such contributions shall be submitted to the Department of
   35  Management Services and deposited in the Retiree Health
   36  Insurance Subsidy Trust Fund.
   37         Section 2. Paragraph (d) of subsection (7) of section
   38  121.052, Florida Statutes, is amended to read:
   39         121.052 Membership class of elected officers.—
   40         (7) CONTRIBUTIONS.—
   41         (d) The following table states the required employer
   42  contribution on behalf of each member of the Elected Officers’
   43  Class in terms of a percentage of the member’s gross
   44  compensation. Such contribution constitutes the entire health
   45  insurance subsidy contribution with respect to each such member.
   46  A change in the contribution rate is effective with the first
   47  salary paid on or after the beginning date of the change. The
   48  retiree health insurance subsidy contribution rate is as
   49  follows:
   50  
   51  Dates of Contribution Rate Changes        ContributionRate         
   52  October 1, 1987, through December 31, 1988              0.24%              
   53  January 1, 1989, through December 31, 1993              0.48%              
   54  January 1, 1994, through December 31, 1994              0.56%              
   55  January 1, 1995, through June 30, 1998              0.66%              
   56  July 1, 1998, through June 30, 2001              0.94%              
   57  July 1, 2001, through June 30, 2013              1.11%              
   58  Effective July 1, 2013, through June 30, 2014              1.20%              
   59  Effective July 1, 2014                         1.30%              
   60  
   61  Such contributions and accompanying payroll data are due and
   62  payable no later than the 5th working day of the month
   63  immediately following the month during which the payroll period
   64  ended and shall be deposited by the administrator in the Retiree
   65  Health Insurance Subsidy Trust Fund.
   66         Section 3. Paragraph (d) of subsection (3) of section
   67  121.055, Florida Statutes, is amended to read:
   68         121.055 Senior Management Service Class.—There is hereby
   69  established a separate class of membership within the Florida
   70  Retirement System to be known as the “Senior Management Service
   71  Class,” which shall become effective February 1, 1987.
   72         (3)
   73         (d) The following table states the required employer
   74  contribution on behalf of each member of the Senior Management
   75  Service Class in terms of a percentage of the member’s gross
   76  compensation. Such contribution constitutes the entire health
   77  insurance subsidy contribution with respect to each such member.
   78  A change in the contribution rate is effective with the first
   79  salary paid on or after the beginning date of the change. The
   80  retiree health insurance subsidy contribution rate is as
   81  follows:
   82  
   83  Dates of Contribution Rate Changes        ContributionRate         
   84  
   85  October 1, 1987, through December 31, 1988              0.24%              
   86  January 1, 1989, through December 31, 1993              0.48%              
   87  January 1, 1994, through December 31, 1994              0.56%              
   88  January 1, 1995, through June 30, 1998              0.66%              
   89  July 1, 1998, through June 30, 2001              0.94%              
   90  July 1, 2001, through June 30, 2013              1.11%              
   91  Effective July 1, 2013, through June 30, 2014              1.20%              
   92  Effective July 1, 2014                         1.30%              
   93  
   94  Such contributions and accompanying payroll data are due and
   95  payable no later than the 5th working day of the month
   96  immediately following the month during which the payroll period
   97  ended and shall be deposited by the administrator in the Retiree
   98  Health Insurance Subsidy Trust Fund.
   99         Section 4. Subsection (4) of section 121.071, Florida
  100  Statutes, is amended to read:
  101         121.071 Contributions.—Contributions to the system shall be
  102  made as follows:
  103         (4) The following table states the required employer
  104  contribution on behalf of each member of the Regular Class,
  105  Special Risk Class, or Special Risk Administrative Support Class
  106  in terms of a percentage of the member’s gross compensation.
  107  Such contribution constitutes the entire health insurance
  108  subsidy contribution with respect to each such member. A change
  109  in the contribution rate is effective with the first salary paid
  110  on or after the beginning date of the change. The retiree health
  111  insurance subsidy contribution rate is as follows:
  112  
  113  Dates of Contribution Rate Changes        ContributionRate         
  114  October 1, 1987, through December 31, 1988              0.24%              
  115  January 1, 1989, through December 31, 1993              0.48%              
  116  January 1, 1994, through December 31, 1994              0.56%              
  117  January 1, 1995, through June 30, 1998              0.66%              
  118  July 1, 1998, through June 30, 2001              0.94%              
  119  July 1, 2001, through June 30, 2013              1.11%              
  120  Effective July 1, 2013, through June 30, 2014              1.20%              
  121  Effective July 1, 2014                         1.30%              
  122  
  123  Such contributions shall be deposited by the administrator in
  124  the Retiree Health Insurance Subsidy Trust Fund.
  125         Section 5. Subsections (4) and (5) of section 121.71,
  126  Florida Statutes, are amended to read:
  127         121.71 Uniform rates; process; calculations; levy.—
  128         (4) Required employer retirement contribution rates for
  129  each membership class and subclass of the Florida Retirement
  130  System for both retirement plans are as follows:
  131  
  132  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
  133  
  134  Regular Class                                3.53%                 
  135  Special Risk Class                       11.01% 11.00%             
  136  Special Risk Administrative Support Class              4.18% 4.17%              
  137  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              6.30% 6.52%              
  138  Elected Officers’ Class— Justices, Judges             10.10% 10.05%             
  139  Elected Officers’ Class— County Elected Officers              8.36% 8.44%              
  140  Senior Management Class                   4.80% 4.81%              
  141  DROP                                      4.30% 4.63%              
  142         (5) In order to address unfunded actuarial liabilities of
  143  the system, the required employer retirement contribution rates
  144  for each membership class and subclass of the Florida Retirement
  145  System for both retirement plans are as follows:
  146  
  147  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
  148  
  149  Regular Class                             2.54% 2.19%              
  150  Special Risk Class                        7.51% 6.83%              
  151  Special Risk Administrative Support Class             36.59% 30.56%             
  152  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             38.66% 24.85%             
  153  Elected Officers’ Class— Justices, Judges             21.77% 17.00%             
  154  Elected Officers’ Class— County Elected Officers             33.58% 23.36%             
  155  Senior Management Service Class             15.04% 12.27%             
  156  DROP                                      6.72% 7.01%              
  157         Section 6. Section 121.74, Florida Statutes, is amended to
  158  read:
  159         121.74 Administrative and educational expenses.—In addition
  160  to contributions required to fund member accounts under ss.
  161  121.71 and 121.73, effective July 1, 2010, through June 30,
  162  2014, employers participating in the Florida Retirement System
  163  shall contribute an employer assessment amount equal to 0.03
  164  percent of the payroll reported for each class or subclass of
  165  Florida Retirement System membership. Effective July 1, 2014,
  166  the employer assessment is contribution rate shall be 0.04
  167  percent of the payroll reported for each class or subclass of
  168  membership. The amount assessed contributed shall be transferred
  169  by the Division of Retirement from the Florida Retirement System
  170  Contributions Clearing Trust Fund to the State Board of
  171  Administration’s Administrative Trust Fund to offset the costs
  172  of administering the investment plan and the costs of providing
  173  educational services to members of the Florida Retirement
  174  System. Approval of the trustees is required before the
  175  expenditure of these funds. Payments for third-party
  176  administrative or educational expenses shall be made only
  177  pursuant to the terms of the approved contracts for such
  178  services.
  179         Section 7. The Legislature finds that a proper and
  180  legitimate state purpose is served when employees, officers, and
  181  retirees of the state and its political subdivisions, and the
  182  dependents, survivors, and beneficiaries of such employees,
  183  officers, and retirees, are extended the basic protections
  184  afforded by governmental retirement systems. These persons must
  185  be provided benefits that are fair and adequate and that are
  186  managed, administered, and funded in an actuarially sound
  187  manner, as required by s. 14, Article X of the State
  188  Constitution and part VII of chapter 112, Florida Statutes.
  189  Therefore, the Legislature determines and declares that this act
  190  fulfills an important state interest.
  191         Section 8. The Legislature finds that a proper and
  192  legitimate state purpose is served when employees, officers, and
  193  retirees of the state and its political subdivisions, and the
  194  dependents, survivors, and beneficiaries of such employees,
  195  officers, and retirees, are extended the basic protections
  196  afforded by governmental retirement systems that provide fair
  197  and adequate benefits, including health insurance subsidies, and
  198  that are managed, administered, and funded in a sustainable
  199  manner. Therefore, the Legislature determines and declares that
  200  this act fulfills an important state interest.
  201         Section 9. This act shall take effect July 1, 2014.

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