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.
