Florida Senate - 2009 CS for SB 1802
By the Policy and Steering Committee on Ways and Means; and
Senator Alexander
576-04564-09 20091802c1
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.71,
3 F.S.; revising the payroll contribution rates for the
4 membership classes of the Florida Retirement System
5 for the state fiscal years effective July 1, 2009, and
6 July 1, 2010; providing a declaration of important
7 state interest; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Section 121.71, Florida Statutes, is amended to
12 read:
13 121.71 Uniform rates; process; calculations; levy.—
14 (1) In conducting the system actuarial study required under
15 s. 121.031, the actuary shall follow all requirements specified
16 thereunder to determine, by Florida Retirement System employee
17 membership class, the dollar contribution amounts necessary for
18 the forthcoming fiscal year for the defined benefit program. In
19 addition, the actuary shall determine, by Florida Retirement
20 System membership class, based on an estimate for the
21 forthcoming fiscal year of the gross compensation of employees
22 participating in the optional retirement program, the dollar
23 contribution amounts necessary to make the allocations required
24 under ss. 121.72 and 121.73. For each employee membership class
25 and subclass, the actuarial study shall establish a uniform rate
26 necessary to fund the benefit obligations under both Florida
27 Retirement System retirement plans, by dividing the sum of total
28 dollars required by the estimated gross compensation of members
29 in both plans.
30 (2) Based on the uniform rates set forth in subsection (3),
31 employers shall make monthly contributions to the Division of
32 Retirement, which shall initially deposit the funds into the
33 Florida Retirement System Contributions Clearing Trust Fund. A
34 change in a contribution rate is effective the first day of the
35 month for which a full month’s employer contribution may be made
36 on or after the beginning date of the change.
37 (3) Required employer retirement contribution rates for
38 each membership class and subclass of the Florida Retirement
39 System for both retirement plans are as follows:
40 Membership Class Percentage of Gross Compensation,Effective July 1, 2009 2008Percentage of Gross Compensation,Effective July 1, 2010 2009
41 Regular Class 8.69% 9.63% 9.60%
42 Special Risk Class 19.76% 22.11% 22.03%
43 Special Risk Administrative Support Class 11.39% 12.10% 11.98%
44 Elected Officers’ Class - Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.32% 15.20% 14.56%
45 Elected Officers’ Class - Justices, Judges 18.40% 20.65% 20.37%
46 Elected Officers’ Class - County Elected Officers 15.37% 17.50% 17.06%
47 Senior Management Class 11.96% 13.43% 13.36%
48 DROP 9.80% 10.96%
49 (4) The state actuary shall recognize and use an
50 appropriate level of available excess assets of the Florida
51 Retirement System Trust Fund to offset the difference between
52 the normal costs of the Florida Retirement System and the
53 statutorily prescribed contribution rates.
54 Section 2. The Legislature finds that a proper and
55 legitimate state purpose is served when employees and retirees
56 of the state and its political subdivisions, and the dependents,
57 survivors, and beneficiaries of such employees and retirees, are
58 extended the basic protections afforded by governmental
59 retirement systems. These persons must be provided benefits that
60 are fair and adequate and that are managed, administered, and
61 funded in an actuarially sound manner, as required by s. 14,
62 Article X of the State Constitution and part VII of chapter 112,
63 Florida Statutes. Therefore, the Legislature determines and
64 declares that this act fulfills an important state interest.
65 Section 3. This act shall take effect July 1, 2009.