Florida Senate - 2013 SB 1810
By the Committee on Governmental Oversight and Accountability
585-02856-13 20131810__
1 A bill to be entitled
2 An act relating to the Florida Retirement System;
3 amending ss. 112.363, 121.052, 121.055, and 121.071,
4 F.S.; revising the employer contribution rates for the
5 retiree health insurance subsidy; amending s. 121.71,
6 F.S.; revising the required employer retirement
7 contribution rates for members of each membership
8 class and subclass of the Florida Retirement System;
9 providing findings of an important state interest;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (8) of section 112.363, Florida
15 Statutes, is amended to read:
16 112.363 Retiree health insurance subsidy.—
17 (8) CONTRIBUTIONS.—For purposes of funding the insurance
18 subsidy provided by this section:
19 (a) Beginning October 1, 1987, the employer of each member
20 of a state-administered retirement plan shall contribute 0.24
21 percent of gross compensation each pay period.
22 (b) Beginning January 1, 1989, the employer of each member
23 of a state-administered retirement plan shall contribute 0.48
24 percent of gross compensation each pay period.
25 (c) Beginning January 1, 1994, the employer of each member
26 of a state-administered retirement plan shall contribute 0.56
27 percent of gross compensation each pay period.
28 (d) Beginning January 1, 1995, the employer of each member
29 of a state-administered retirement plan shall contribute 0.66
30 percent of gross compensation each pay period.
31 (e) Beginning July 1, 1998, the employer of each member of
32 a state-administered retirement plan shall contribute 0.94
33 percent of gross compensation each pay period.
34 (f) Beginning July 1, 2001, the employer of each member of
35 a state-administered plan shall contribute 1.11 percent of gross
36 compensation each pay period.
37 (g) Beginning July 1, 2013, the employer of each member of
38 a state-administered plan shall contribute 1.25 percent of gross
39 compensation each pay period.
40
41 Such contributions shall be submitted to the Department of
42 Management Services and deposited in the Retiree Health
43 Insurance Subsidy Trust Fund.
44 Section 2. Subsection (7) of section 121.052, Florida
45 Statutes, is amended to read:
46 121.052 Membership class of elected officers.—
47 (7) CONTRIBUTIONS.—
48 (a) The following table states the required retirement
49 contribution rates for members of the Elected Officers’ Class
50 and their employers in terms of a percentage of the member’s
51 gross compensation. A change in a contribution rate is effective
52 with the first salary paid on or after the beginning date of the
53 change. Contributions shall be made or deducted as may be
54 appropriate for each pay period and are in addition to the
55 contributions required for social security and the Retiree
56 Health Insurance Subsidy Trust Fund.
57 1.
58 Dates of Contribution Rate Changes Members Employers
59
60 July 1, 2001, through June 30, 2002
61 Legislators 0% 15.14%
62 Governor, Lt. Governor, Cabinet Officers 0% 15.14%
63 State Attorneys, Public Defenders 0% 15.14%
64 Justices, Judges 0% 20.61%
65 County Elected Officers 0% 17.61%
66 2. Effective July 1, 2002, the required retirement
67 contribution rates shall be specified in s. 121.71.
68 (b) The employer paying the salary of a member of the
69 Elected Officers’ Class shall contribute an amount as specified
70 in this subsection or s. 121.71, as appropriate, which shall
71 constitute the employer retirement contribution with respect to
72 such member. The employer shall also withhold one-half of the
73 entire contribution of the member required for social security
74 coverage. Effective July 1, 2011, each member of the Elected
75 Officers’ Class shall pay employee contributions as specified in
76 s. 121.71.
77 (c) If a member of the Elected Officers’ Class ceases to
78 fill an office covered by this class for 3 calendar months for
79 any reason other than retirement and has not been employed in
80 any capacity with any participating employer for 3 calendar
81 months, the member may receive a refund of all contributions he
82 or she has made to the pension plan, subject to the restrictions
83 otherwise provided in this chapter. Partial refunds are not
84 permitted. The refund shall not include any interest earnings on
85 the contributions for a member of the pension plan. Employer
86 contributions made on behalf of the member are not refundable. A
87 member may not receive a refund of employee contributions if a
88 pending or an approved qualified domestic relations order is
89 filed against the member’s retirement account. By obtaining a
90 refund of contributions, a member waives all rights under the
91 Florida Retirement System and the health insurance subsidy
92 provided under s. 112.363 to the service credit represented by
93 the refunded contributions, except the right to purchase his or
94 her prior service credit in accordance with s. 121.081(2).
95 (d) The following table states the required employer
96 contribution on behalf of each member of the Elected Officers’
97 Class in terms of a percentage of the member’s gross
98 compensation. Such contribution constitutes the entire health
99 insurance subsidy contribution with respect to each such member.
100 A change in the contribution rate is effective with the first
101 salary paid on or after the beginning date of the change. The
102 retiree health insurance subsidy contribution rate is as
103 follows:
104 Dates of Contribution Rate Changes ContributionRate
105 October 1, 1987, through December 31, 1988 0.24%
106 January 1, 1989, through December 31, 1993 0.48%
107 January 1, 1994, through December 31, 1994 0.56%
108 January 1, 1995, through June 30, 1998 0.66%
109 July 1, 1998, through June 30, 2001 0.94%
110 Effective July 1, 2001, through June 30, 2013 1.11%
111 Effective July 1, 2013 1.25%
112 Such contributions and accompanying payroll data are due and
113 payable no later than the 5th working day of the month
114 immediately following the month during which the payroll period
115 ended and shall be deposited by the administrator in the Retiree
116 Health Insurance Subsidy Trust Fund.
117 Section 3. Subsection (3) of section 121.055, Florida
118 Statutes, is amended to read:
119 121.055 Senior Management Service Class.—There is hereby
120 established a separate class of membership within the Florida
121 Retirement System to be known as the “Senior Management Service
122 Class,” which shall become effective February 1, 1987.
123 (3)(a) The following table states the required retirement
124 contribution rates for members of the Senior Management Service
125 Class and their employers in terms of a percentage of the
126 member’s gross compensation. A change in the contribution rate
127 is effective with the first salary paid on or after the
128 beginning date of the change. Contributions shall be made for
129 each pay period and are in addition to the contributions
130 required for social security and the Retiree Health Insurance
131 Subsidy Trust Fund.
132 1.
133 Dates of Contribution Rate Changes Members Employers
134
135 July 1, 2001, through June 30, 2002 0% 11.73%
136
137 2. Effective July 1, 2002, the required retirement
138 contribution rate shall be as specified in s. 121.71.
139 (b) The employer paying the salary of a member of the
140 Senior Management Service Class shall contribute an amount as
141 specified in this section or s. 121.71, as appropriate, which
142 shall constitute the entire employer retirement contribution
143 with respect to such member. The employer shall also withhold
144 one-half of the entire contribution of the member required for
145 social security coverage. Effective July 1, 2011, each member
146 shall pay employee contributions as specified in s. 121.71.
147 (c) Upon termination of employment from all participating
148 employers for 3 calendar months for any reason other than
149 retirement pursuant to s. 121.021(39)(c), a member may receive a
150 refund of all contributions he or she has made to the pension
151 plan, subject to the restrictions otherwise provided in this
152 chapter. Partial refunds are not permitted. The refund shall not
153 include any interest earnings on the contributions for a member
154 of the pension plan. Employer contributions made on behalf of
155 the member are not refundable. A member may not receive a refund
156 of employee contributions if a pending or an approved qualified
157 domestic relations order is filed against the member’s
158 retirement account. By obtaining a refund of contributions, a
159 member waives all rights under the Florida Retirement System and
160 the health insurance subsidy provided under s. 112.363 to the
161 service credit represented by the refunded contributions, except
162 the right to purchase his or her prior service credit in
163 accordance with s. 121.081(2).
164 (d) The following table states the required employer
165 contribution on behalf of each member of the Senior Management
166 Service Class in terms of a percentage of the member’s gross
167 compensation. Such contribution constitutes the entire health
168 insurance subsidy contribution with respect to each such member.
169 A change in the contribution rate is effective with the first
170 salary paid on or after the beginning date of the change. The
171 retiree health insurance subsidy contribution rate is as
172 follows:
173 Dates of Contribution Rate Changes ContributionRate
174
175 October 1, 1987, through December 31, 1988 0.24%
176 January 1, 1989, through December 31, 1993 0.48%
177 January 1, 1994, through December 31, 1994 0.56%
178 January 1, 1995, through June 30, 1998 0.66%
179 July 1, 1998, through June 30, 2001 0.94%
180 Effective July 1, 2001, through June 30, 2013 1.11%
181 Effective July 1, 2013 1.25%
182 Such contributions and accompanying payroll data are due and
183 payable no later than the 5th working day of the month
184 immediately following the month during which the payroll period
185 ended and shall be deposited by the administrator in the Retiree
186 Health Insurance Subsidy Trust Fund.
187 Section 4. Subsection (4) of section 121.071, Florida
188 Statutes, is amended to read:
189 121.071 Contributions.—Contributions to the system shall be
190 made as follows:
191 (4) The following table states the required employer
192 contribution on behalf of each member of the Regular Class,
193 Special Risk Class, or Special Risk Administrative Support Class
194 in terms of a percentage of the member’s gross compensation.
195 Such contribution constitutes the entire health insurance
196 subsidy contribution with respect to each such member. A change
197 in the contribution rate is effective with the first salary paid
198 on or after the beginning date of the change. The retiree health
199 insurance subsidy contribution rate is as follows:
200 Dates of Contribution Rate Changes ContributionRate
201 October 1, 1987, through December 31, 1988 0.24%
202 January 1, 1989, through December 31, 1993 0.48%
203 January 1, 1994, through December 31, 1994 0.56%
204 January 1, 1995, through June 30, 1998 0.66%
205 July 1, 1998, through June 30, 2001 0.94%
206 Effective July 1, 2001, through June 30, 2013 1.11%
207 Effective July 1, 2013 1.25%
208 Such contributions shall be deposited by the administrator in
209 the Retiree Health Insurance Subsidy Trust Fund.
210 Section 5. Subsections (4) and (5) of section 121.71,
211 Florida Statutes, are amended to read:
212 121.71 Uniform rates; process; calculations; levy.—
213 (4) Required employer retirement contribution rates for
214 each membership class and subclass of the Florida Retirement
215 System for both retirement plans are as follows:
216 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2013 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
217
218 Regular Class 3.53% 3.55% 3.53% 3.55%
219 Special Risk Class 11.00% 11.01% 11.00% 11.01%
220 Special Risk Administrative Support Class 4.17% 3.94% 4.17% 3.94%
221 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.52% 6.51% 6.52% 6.51%
222 Elected Officers’ Class— Justices, Judges 10.05% 10.02% 10.05% 10.02%
223 Elected Officers’ Class— County Elected Officers 8.44% 8.36% 8.44% 8.36%
224 Senior Management Class 4.81% 4.84% 4.81% 4.84%
225 DROP 4.63% 4.33% 4.63% 4.33%
226 (5) In order to address unfunded actuarial liabilities of
227 the system, the required employer retirement contribution rates
228 for each membership class and subclass of the Florida Retirement
229 System for both retirement plans are as follows:
230
231 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2013 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
232
233 Regular Class 2.19% 0.49% 2.19% 2.02%
234 Special Risk Class 6.83% 2.75% 6.83% 7.03%
235 Special Risk Administrative Support Class 30.56% 0.83% 30.56% 27.04%
236 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 24.85% 0.88% 24.85% 27.18%
237 Elected Officers’ Class— Justices, Judges 17.00% 0.77% 17.00% 16.38%
238 Elected Officers’ Class— County Elected Officers 23.36% 0.73% 23.36% 23.01%
239 Senior Management Service Class 12.27% 0.32% 12.27% 11.25%
240 DROP 7.01% 0.00% 7.01% 6.21%
241 Section 6. The Legislature finds that a proper and
242 legitimate state purpose is served when employees, officers, and
243 retirees of the state and its political subdivisions, and the
244 dependents, survivors, and beneficiaries of such employees,
245 officers, and retirees, are extended the basic protections
246 afforded by governmental retirement systems. These persons must
247 be provided benefits that are fair and adequate and that are
248 managed, administered, and funded in an actuarially sound
249 manner, as required by s. 14, Article X of the State
250 Constitution and part VII of chapter 112, Florida Statutes.
251 Therefore, the Legislature determines and declares that this act
252 fulfills an important state interest.
253 Section 7. The Legislature finds that a proper and
254 legitimate state purpose is served when employees, officers, and
255 retirees of the state and of its political subdivisions, and the
256 dependents, survivors, and beneficiaries of such employees,
257 officers, and retirees, are extended the basic protections
258 afforded governmental retirement systems that provide fair and
259 adequate benefits, including health insurance subsidies, and
260 that are managed, administered, and funded in a reasonable
261 manner. Therefore, the Legislature hereby determines and
262 declares that this act fulfills an important state interest.
263 Section 8. This act shall take effect July 1, 2013.