CODING: Words stricken are deletions; words underlined are additions.
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Senator Burt moved the following amendment:
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Burt moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Paragraph (d) is added to subsection (3),
18 paragraph (e) is added to subsection (8), and subsection (9)
19 of section 112.363, Florida Statutes, is amended, to read:
20 112.363 Retiree health insurance subsidy.--
21 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
22 (d) Beginning January 1, 1999, each eligible retiree
23 or, if the retiree is deceased, his or her beneficiary who is
24 receiving a monthly benefit from such retiree's account and
25 who is a spouse, or a person who meets the definition of joint
26 annuitant in s. 121.021(28), shall receive a monthly retiree
27 health insurance subsidy payment equal to the number of years
28 of creditable service, as defined in s. 121.021(17), completed
29 at the time of retirement multiplied by $5; however, no
30 eligible retiree or such beneficiary may receive a subsidy
31 payment of more than $150 or less than $50. If there are
1
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 multiple beneficiaries, the total payment must not be greater
2 than the payment to which the retiree was entitled.
3 (8) CONTRIBUTIONS.--For purposes of funding the
4 insurance subsidy provided by this section:
5 (e) Beginning July 1, 1998, the employer of each
6 member of a state-administered retirement plan shall
7 contribute 0.94 percent of gross compensation each pay period.
8
9 Such contributions shall be submitted to the Division of
10 Retirement and deposited in the Retiree Health Insurance
11 Subsidy Trust Fund.
12 (9) BENEFITS.--Subsidy payments shall be payable under
13 the retiree health insurance subsidy program only to
14 participants in the program or their beneficiaries, beginning
15 with the month the division receives certification of coverage
16 for health insurance for the eligible retiree or beneficiary.
17 If the division receives such certification at any time during
18 the 6 months after retirement benefits commence, the retiree
19 health insurance subsidy shall be paid retroactive to the
20 effective retirement date. If, however, the division receives
21 such certification 7 or more months after commencement of
22 benefits, the retroactive retiree health insurance subsidy
23 payment will cover a maximum of 6 months. Such subsidy
24 payments shall not be subject to assignment, execution, or
25 attachment or to any legal process whatsoever.
26 Section 2. Paragraph (b) of subsection (2) of section
27 121.011, Florida Statutes, is amended to read:
28 121.011 Florida Retirement System.--
29 (2) CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--
30 (b) The chapters or retirement system laws named in
31 paragraph (a) are hereby consolidated as separate instruments
2
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 appended to the "Florida Retirement System Act" established by
2 this chapter, and the administration of said chapters or
3 retirement systems shall be consolidated with the
4 administration of the Florida Retirement System established by
5 this chapter and the Florida Retirement System shall assume
6 all liabilities related to the payment of benefits to members
7 and their beneficiaries.
8 Section 3. Effective July 1, 1998, subsections (22),
9 (24), (28), (29), and (30) of section 121.021, Florida
10 Statutes, are amended, and subsections (45) through (54) are
11 added to said section, to read:
12 121.021 Definitions.--The following words and phrases
13 as used in this chapter have the respective meanings set forth
14 unless a different meaning is plainly required by the context:
15 (22) "Compensation" means the monthly salary paid a
16 member by his or her employer for work performed arising from
17 that employment., including
18 (a) Compensation shall include:
19 1. Overtime payments paid from a salary fund., except
20 that:
21 2. Accumulated annual leave payments.
22 3. Payments in addition to the employee's base rate of
23 pay if all the following apply:
24 a. The payments are paid according to a formal written
25 policy that applies to all eligible employees equally;
26 b. The policy provides that payments shall commence no
27 later than the 11th year of employment;
28 c. The payments are paid for as long as the employee
29 continues his or her employment; and
30 d. The payments are paid at least annually.
31 4. Amounts withheld for tax sheltered annuities or
3
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Bill No. SB 1950
Amendment No.
1 deferred compensation programs, or any other type of salary
2 reduction plan authorized under the Internal Revenue Code.
3 5. Payments made in lieu of a permanent increase in
4 the base rate of pay, whether made annually or in 12 or 26
5 equal payments within a 12-month period, when the member's
6 base pay is at the maximum of his or her pay range. When a
7 portion of a member's annual increase raises his or her pay
8 range and the excess is paid as a lump sum payment, such lump
9 sum payment shall be compensation for retirement purposes.
10 (b)(a) Under no circumstances shall compensation
11 include:
12 1. Fees paid professional persons for special or
13 particular services or include salary payments made from a
14 faculty practice plan operated by rule of the Board of Regents
15 for eligible clinical faculty at the University of Florida and
16 the University of South Florida; or.
17 2. Any bonuses or other payments prohibited from
18 inclusion in the member's average final compensation and
19 defined in subsection (47).
20 (c)(b) For all purposes under this chapter, the
21 member's compensation or gross compensation contributed as
22 employee-elective salary reductions or deferrals to any salary
23 reduction, deferred compensation, or tax-sheltered annuity
24 program authorized under the Internal Revenue Code shall be
25 deemed to be the compensation or gross compensation which the
26 member would receive if he or she were not participating in
27 such program and shall be treated as compensation for
28 retirement purposes under this chapter. Any public funds
29 otherwise paid by an employer into an employee's salary
30 reduction, deferred compensation, or tax-sheltered annuity
31 program on or after July 1, 1990 (the date as of which all
4
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Bill No. SB 1950
Amendment No.
1 employers were notified in writing by the division to cease
2 making contributions to the System Trust Fund based on such
3 amounts), shall be considered a fringe benefit and shall not
4 be treated as compensation for retirement purposes under this
5 chapter. However, if an employer was notified in writing by
6 the division to cease making such contributions as of a
7 different date, that employer shall be subject to the
8 requirements of said written notice.
9 (d)(c) For any person who first becomes a member on or
10 after July 1, 1996, compensation for any plan year shall not
11 include any amounts in excess of the s. 401(a)(17), Internal
12 Revenue Code limitation (as amended by the Omnibus Budget
13 Reconciliation Act of 1993), which limitation of $150,000
14 effective July 1, 1996, shall be adjusted as required by
15 federal law for qualified government plans and shall be
16 further adjusted for changes in the cost of living in the
17 manner provided by s. 401(a)(17)(B), Internal Revenue Code.
18 For any person who first became a member prior to July 1,
19 1996, compensation for all plan years beginning on or after
20 July 1, 1990, shall not include any amounts in excess of the
21 compensation limitation (originally $200,000) established by
22 s. 401(a)(17), Internal Revenue Code prior to the Omnibus
23 Budget Reconciliation Act of 1993, which limitation shall be
24 adjusted for changes in the cost of living since 1989, in the
25 manner provided by s. 401(a)(17) of the Internal Revenue Code
26 of 1991. This limitation, which has been part of the Florida
27 Retirement System since plan years beginning on or after July
28 1, 1990, shall be adjusted as required by federal law for
29 qualified government plans.
30 (24) "Average final compensation" means the average of
31 the 5 highest fiscal years of compensation for creditable
5
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Bill No. SB 1950
Amendment No.
1 service prior to retirement, termination, or death. For
2 in-line-of-duty disability benefits, if less than 5 years of
3 creditable service have been completed, the term "average
4 final compensation" means the average annual compensation of
5 the total number of years of creditable service. Each year
6 used in the calculation of average final compensation shall
7 commence on July 1.
8 (a) The average final compensation shall include:
9 1. Accumulated annual leave payments, not to exceed
10 500 hours; and
11 2. All payments defined as compensation in subsection
12 (22).
13 (b) The average final compensation shall not include:
14 1. Compensation paid to professional persons for
15 special or particular services;
16 2. Payments for accumulated sick leave made due to
17 retirement or termination;
18 3. Payments for accumulated annual leave in excess of
19 500 hours;
20 4. Bonuses as defined in subsection (47);
21 5. Third party payments made on and after July 1,
22 1990; or
23 6. Fringe benefits (for example, automobile allowances
24 or housing allowances). The payment for accumulated sick
25 leave, accumulated annual leave in excess of 500 hours, and
26 bonuses, whether paid as salary or otherwise, shall not be
27 used in the calculation of the average final compensation.
28 (28) "Joint annuitant" or "dependent beneficiary"
29 means any person designated by the member to receive a
30 retirement benefit upon the member's death who is either:
31 (a) The spouse of the member;
6
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Bill No. SB 1950
Amendment No.
1 (b) The member's natural or adopted child who is under
2 age 25, or is physically or mentally disabled and incapable of
3 self-support, regardless of age; or any person other than the
4 spouse for whom the member is the legal guardian, provided
5 that such person is under age 25 and is financially dependent
6 for no less than one-half of his or her support from the
7 member at retirement or at the time of death of such member,
8 whichever occurs first; or
9 (c) A parent or grandparent, or a person age 25 or
10 older for whom the member is the legal guardian, provided that
11 such parent, grandparent, or other person is financially
12 dependent for no less than one-half of his or her support from
13 the member at retirement or at time of the death of such
14 member, whichever occurs first.
15 (29) "Normal retirement date" means the first day of
16 any month following the date a member attains one of the
17 following statuses:
18 (a) If a Regular Class member, the member:
19 1. Completes 10 or more years of creditable service
20 and attains age 62; or
21 2.(b) Completes 30 years of creditable service,
22 regardless of age, which may include a maximum of 4 years of
23 military service credit as, so long as such credit is not
24 claimed under any other system., regardless of age;
25 (b)(c) If a Special Risk Class member, the member:
26 1. Completes 10 or more years of creditable service in
27 the Special Risk Class and attains age 55;
28 2. Completes 25 years of creditable service in the
29 Special Risk Class, regardless of age; or
30 3. Completes 25 years of creditable service and
31 attains age 52, which service may include a maximum of 4 years
7
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 of military service credit as long as such credit is not
2 claimed under any other system and the remaining years are in
3 the Special Risk Class., and attains age 52; or
4 (c)(d) If a Senior Management Service Class member,
5 the member:
6 1. Completes 7 years of creditable service in the
7 Senior Management Service Class and attains age 62; or
8 2. Completes 30 years of any creditable service,
9 regardless of age, which may include a maximum of 4 years of
10 military service credit as long as such credit is not claimed
11 under any other system; or, regardless of age.
12 (d) If an Elected State County Officers' Class member,
13 the member:
14 1. Completes 8 years of creditable service in the
15 Elected State and County Officers' Class and attains age 62;
16 or
17 2. Completes 30 years of any creditable service,
18 regardless of age, which may include a maximum of 4 years of
19 military service credit as long as such credit is not claimed
20 under any other system.
21
22 "Normal retirement age" is attained on the "normal retirement
23 date."
24 (30) "Early retirement date" means the first day of
25 the month following the date a member becomes vested completes
26 10 years of creditable service and elects to receive
27 retirement benefits in accordance with this chapter. Such
28 benefits shall be based on average monthly compensation and
29 creditable service as of the member's early retirement date,
30 and the benefit so computed shall be reduced by five-twelfths
31 of 1 percent for each complete month by which the early
8
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 retirement date precedes his or her normal retirement date as
2 provided in s. 121.091(3).
3 (45) "Vested" or "vesting" means the guarantee that a
4 member is eligible to receive a future retirement benefit upon
5 completion of the required years of creditable service for the
6 employee's class of membership even though the member may have
7 terminated covered employment before reaching normal or early
8 retirement date. Being vested does not entitle a member to a
9 disability benefit based on a disability caused by an injury
10 or disease that occurs after termination of covered
11 employment.
12 (46) "Beneficiary" means the joint annuitant or any
13 other person, organization, estate, or trust fund designated
14 by the member to receive a retirement benefit, if any, which
15 may be payable upon the member's death.
16 (47) "Bonus" means a payment made in addition to an
17 employee's regular or overtime salary. A bonus is usually
18 nonrecurring, does not increase the employee's base rate of
19 pay, and includes no commitment for payment in a subsequent
20 year. Such payments are not considered compensation. Effective
21 July 1, 1989, employers may not report such payments to the
22 division as salary, and may not make retirement contributions
23 on such payments.
24 (a) A payment is a bonus if any of the following
25 circumstances apply:
26 1. The payment is not made according to a formal
27 written policy that applies to all eligible employees equally.
28 2. The payment commences later than the 11th year of
29 employment.
30 3. The payment is not based on permanent eligibility.
31 4. The payment is made less frequently than annually.
9
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 (b) Bonuses shall include, but not be limited to, the
2 following:
3 1. Exit bonus or severance pay.
4 2. Longevity payments in conformance with the
5 provisions of paragraph (a).
6 3. Salary increases granted pursuant to an employee's
7 agreement to retire, including increases paid over several
8 months or years prior to retirement.
9 4. Payments for accumulated overtime or compensatory
10 time, reserve time, or holiday time worked, if not made within
11 11 months of the month in which the work was performed.
12 5. Quality Instruction Incentives Program (QUIIP)
13 Payments.
14 6. Lump sum payments in recognition of employees'
15 accomplishments.
16 (48) "Accumulated annual leave payment" means any
17 payment, made either during an employee's employment or at
18 termination or retirement, for leave accrued during such
19 employee's career, which leave was intended for, but never
20 utilized by the employee for, his or her personal use. General
21 leave, which may be used for both sickness and vacation, is
22 considered accumulated annual leave. When leave is initially
23 accrued separately as annual leave or sick leave and is later
24 combined into a consolidated leave account, only the payment
25 for that portion of the account which represents annual leave
26 shall be considered as compensation. If any single lump-sum
27 annual leave payment, made at anytime during a member's
28 employment, exceeds 500 hours, only a maximum of 500 hours of
29 such annual leave payment shall be considered as compensation.
30 (49) "Accumulated sick leave payment" means leave
31 accrued during an employee's career which was intended for use
10
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Bill No. SB 1950
Amendment No.
1 in the event of sickness, injury, or other health problems of
2 a member or his or her family. General leave which may be used
3 for both sickness and vacation is not considered sick leave.
4 When leave is initially accrued separately as annual leave or
5 sick leave and is later combined into a consolidated leave
6 account, the payment for that portion of the account which
7 represents sick leave shall not be considered compensation.
8 (50) "Independent contractor" means an individual who
9 is not subject to the control and direction of the employer
10 for whom work is being performed, with respect not only to
11 what shall be done but to how it shall be done. If the
12 employer has the right to exert such control, an
13 employee-employer relationship exists, and, for purposes of
14 this chapter, the person is an employee and not an independent
15 contractor. The division shall adopt rules providing criteria
16 for determining whether an individual is an employee or an
17 independent contractor.
18 (51) "Previous service" means the number of years,
19 complete months, and any fractional part of a month, as
20 recognized and credited by an employer and approved by the
21 administrator, of service under one of the retirement systems
22 established by this chapter, chapter 122, former chapter 123,
23 chapter 238, or chapter 321, on which the required
24 contributions were paid at the member's termination of
25 employment, and for which the member has received no refund of
26 contributions.
27 (52) "Regularly established position" is defined as
28 follows:
29 (a) In a state agency, the term means a position which
30 is authorized and established pursuant to law and is
31 compensated from a salaries appropriation pursuant to s.
11
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 216.011(1)(x)1. and 2., or an established position which is
2 authorized pursuant to s. 216.262(1)(a) and (b) and is
3 compensated from a salaries account as provided by rule.
4 (b) In a local agency (district school board, county
5 agency, community college, city, or special district), the
6 term means a regularly established position which will be in
7 existence for a period beyond 6 consecutive months, except as
8 provided by rule.
9 (53) "Temporary position" is defined as follows:
10 (a) In a state agency, the term means an employment
11 position which is compensated from an other personal services
12 (OPS) account, as provided for in s. 216.011(1)(x).
13 (b) In a local agency, the term means an employment
14 position which will exist for less than 6 consecutive months,
15 or other employment position as determined by rule of the
16 division, regardless of whether it will exist for 6
17 consecutive months or longer.
18 (54) "Work year" means the period of time an employee
19 is required to work to receive a full year of retirement
20 credit, as provided by rule.
21 Section 4. Subsection (3) of section 121.031, Florida
22 Statutes, is amended to read:
23 121.031 Administration of system; appropriation;
24 oaths; actuarial studies; public records.--
25 (3) The administrator shall cause an actuarial study
26 of the system to be made at least once every year beginning
27 July 1, 1998 2 years and shall report the results of such
28 study to the Legislature by February 1 prior to the next
29 legislative session. Such study shall, at a minimum, conform
30 to the requirements of s. 112.63, with the following
31 exceptions and additions:
12
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 (a) The valuation of plan assets shall be based on a
2 5-year averaging methodology such as that specified in the
3 United States Department of Treasury Regulations, 26 C.F.R. s.
4 1.412(c)(2)-1, or a similar accepted approach designed to
5 attenuate fluctuations in asset values.
6 (b) The study shall include a narrative explaining the
7 changes in the covered group over the period between actuarial
8 valuations and the impact of those changes on actuarial
9 results.
10 (c) When substantial changes in actuarial assumptions
11 have been made, the study shall reflect the results of an
12 actuarial assumption as of the current date based on the
13 assumptions utilized in the prior actuarial report.
14 (d) The study shall include an analysis of the changes
15 in actuarial valuation results by the factors generating those
16 changes. Such analysis shall reconcile the current actuarial
17 valuation results with those results from the prior valuation.
18 (e) The study shall include measures of funding status
19 and funding progress designed to facilitate the assessment of
20 trends over several actuarial valuations with respect to the
21 overall solvency of the system. Such measures shall be adopted
22 by the division and shall be used consistently in all
23 actuarial valuations performed on the system.
24 Section 5. Paragraphs (a) and (c) of subsection (7) of
25 section 121.052, Florida Statutes, are amended to read:
26 121.052 Membership class of elected state and county
27 officers.--
28 (7) CONTRIBUTIONS.--
29 (a) The following table states the required retirement
30 contribution rates for members of the Elected State and County
31 Officers' Class and their employers in terms of a percentage
13
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 of the member's gross compensation. A change in a contribution
2 rate is effective with the first salary paid on or after the
3 beginning date of the change. Contributions shall be made or
4 deducted as may be appropriate for each pay period and are in
5 addition to the contributions required for social security and
6 the Retiree Health Insurance Subsidy Trust Fund. The
7 contribution rate changes made in this subsection are for the
8 period July 1, 1998 through June 30, 1999 only.
9
10 Dates of Contribution
11 Rate Changes Members Employers
12
13 July 1, 1972, through September 30, 1977
14 Legislators 8% 8%
15 All Other Members 8% 8%
16
17 October 1, 1977, through September 30, 1978
18 Legislators 8% 8%
19 All Other Members 4% 12%
20
21 October 1, 1978, through September 30, 1979
22 Legislators 8% 10.57%
23 All Other Members 4% 16.78%
24
25 October 1, 1979, through September 30, 1981
26 Legislators 8% 10.57%
27 Governor, Lt. Governor, Cabinet
28 Officers 4% 16.78%
29 All Other Members 0% 20.78%
30
31 July 1, 1981, through June 30, 1984
14
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Bill No. SB 1950
Amendment No.
1 County Elected Officers 0% 19.30%
2
3 July 1, 1984, through September 30, 1984
4 County Elected Officers 0% 20.25%
5
6 October 1, 1981, through September 30, 1984
7 Legislators 0% 19.30%
8 Governor, Lt. Governor, Cabinet
9 Officers 0% 21.03%
10 State Attorneys, Public Defenders 0% 20.95%
11 Justices, Judges 0% 22.55%
12
13 October 1, 1984, through September 30, 1986
14 Legislators 0% 10.98%
15 Governor, Lt. Governor, Cabinet
16 Officers 0% 10.98%
17 State Attorneys, Public Defenders 0% 10.98%
18 Justices, Judges 0% 21.79%
19 County Elected Officers 0% 16.97%
20
21 October 1, 1986, through December 31, 1988
22 Legislators 0% 11.50%
23 Governor, Lt. Governor, Cabinet
24 Officers 0% 11.50%
25 State Attorneys, Public Defenders 0% 11.50%
26 Justices, Judges 0% 20.94%
27 County Elected Officers 0% 17.19%
28
29 January 1, 1989, through December 31, 1989
30 Legislators 0% 13.70%
31 Governor, Lt. Governor, Cabinet
15
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 Officers 0% 13.70%
2 State Attorneys, Public Defenders 0% 13.70%
3 Justices, Judges 0% 22.58%
4 County Elected Officers 0% 18.44%
5
6 January 1, 1990, through December 31, 1990
7 Legislators 0% 15.91%
8 Governor, Lt. Governor, Cabinet
9 Officers 0% 15.91%
10 State Attorneys, Public Defenders 0% 15.91%
11 Justices, Judges 0% 24.22%
12 County Elected Officers 0% 19.71%
13
14 January 1, 1991, through December 31, 1991
15 Legislators 0% 17.73%
16 Governor, Lt. Governor, Cabinet
17 Officers 0% 17.73%
18 State Attorneys, Public Defenders 0% 17.73%
19 Justices, Judges 0% 26.63%
20 County Elected Officers 0% 23.32%
21
22 January 1, 1992, through December 31, 1992
23 Legislators 0% 19.94%
24 Governor, Lt. Governor, Cabinet
25 Officers 0% 19.94%
26 State Attorneys, Public Defenders 0% 19.94%
27 Justices, Judges 0% 28.27%
28 County Elected Officers 0% 24.59%
29
30 January 1, 1993, through December 31, 1993
31 Legislators 0% 22.14%
16
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Bill No. SB 1950
Amendment No.
1 Governor, Lt. Governor, Cabinet
2 Officers 0% 22.14%
3 State Attorneys, Public Defenders 0% 22.14%
4 Justices, Judges 0% 29.91%
5 County Elected Officers 0% 25.84%
6
7 January 1, 1994, through December 31, 1994
8 Legislators 0% 22.65%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 22.65%
11 State Attorneys, Public Defenders 0% 22.65%
12 Justices, Judges 0% 30.52%
13 County Elected Officers 0% 26.07%
14
15 January 1, 1995, through December 31, 1995
16 Legislators 0% 22.80%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 22.80%
19 State Attorneys, Public Defenders 0% 22.80%
20 Justices, Judges 0% 30.21%
21 County Elected Officers 0% 27.48%
22
23 January 1, 1996, through June 30, 1996
24 Legislators 0% 22.90%
25 Governor, Lt. Governor, Cabinet
26 Officers 0% 22.90%
27 State Attorneys, Public Defenders 0% 22.90%
28 Justices, Judges 0% 30.15%
29 County Elected Officers 0% 27.54%
30
31 Effective July 1, 1996, through June 30, 1998
17
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 Legislators 0% 23.07%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 23.07%
4 State Attorneys, Public Defenders 0% 23.07%
5 Justices, Judges 0% 29.55%
6 County Elected Officers 0% 27.33%
7
8 Effective July 1, 1998
9 Legislators 0% 19.48%
10 Governor, Lt. Governor, Cabinet Officers 0% 19.48%
11 State Attorneys, Public Defenders 0% 19.48%
12 Justices, Judges 0% 19.88%
13 County elected officers 0% 23.51%
14
15 (c) The following table states the required employer
16 contribution on behalf of each member of the Elected State and
17 County Officers' Class in terms of a percentage of the
18 member's gross compensation. Such contribution constitutes the
19 entire health insurance subsidy contribution with respect to
20 the member. A change in the contribution rate is effective
21 with the first salary paid on or after the beginning date of
22 the change. The retiree health insurance subsidy contribution
23 rate is as follows:
24
25 Dates of Contribution Contribution
26 Rate Changes Rate
27
28 October 1, 1987, through December 31, 1988 0.24%
29 January 1, 1989, through December 31, 1993 0.48%
30 January 1, 1994, through December 31, 1994 0.56%
31 Effective January 1, 1995, through June 30,
18
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Bill No. SB 1950
Amendment No.
1 1998 0.66%
2 Effective July 1, 1998 0.94%
3
4 Such contributions shall be deposited by the administrator in
5 the Retiree Health Insurance Subsidy Trust Fund.
6 Section 6. Paragraph (b) of subsection (1) and
7 paragraphs (a) and (c) of subsection (3) of section 121.055,
8 Florida Statutes, are amended to read:
9 121.055 Senior Management Service Class.--There is
10 hereby established a separate class of membership within the
11 Florida Retirement System to be known as the "Senior
12 Management Service Class," which shall become effective
13 February 1, 1987.
14 (1)
15 (b)1. Except as provided in subparagraph 2., effective
16 January 1, 1990, participation in the Senior Management
17 Service Class shall be compulsory for the president of each
18 community college, the manager of each participating city or
19 county, and all appointed district school superintendents.
20 Effective January 1, 1994, additional positions may be
21 designated for inclusion in the Senior Management Service
22 Class of the Florida Retirement System, provided that:
23 a. Positions to be included in the class shall be
24 designated by the local agency employer. Notice of intent to
25 designate positions for inclusion in the class shall be
26 published once a week for 2 consecutive weeks in a newspaper
27 of general circulation published in the county or counties
28 affected, as provided in chapter 50.
29 b. One nonelective full-time position may be
30 designated for each local agency employer reporting to the
31 Division of Retirement; for local agencies with 100 200 or
19
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 more regularly established positions, additional nonelective
2 full-time positions may be designated, not to exceed 1 0.5
3 percent of the regularly established positions within the
4 agency.
5 c. Each position added to the class must be a
6 managerial or policymaking position filled by an employee who
7 is not subject to continuing contract and serves at the
8 pleasure of the local agency employer without civil service
9 protection, and who:
10 (I) Heads an organizational unit; or
11 (II) Has responsibility to effect or recommend
12 personnel, budget, expenditure, or policy decisions in his or
13 her areas of responsibility.
14 2. In lieu of participation in the Senior Management
15 Service Class, members of the Senior Management Service Class
16 pursuant to the provisions of subparagraph 1. may withdraw
17 from the Florida Retirement System altogether and participate
18 in a lifetime monthly annuity program which may be provided by
19 the employing agency. The cost to the employer for such
20 annuity shall equal the normal cost portion of the
21 contributions required in the Senior Management Service Class.
22 The employer providing such annuity shall contribute an
23 additional amount to the Florida Retirement System Trust Fund
24 equal to the unfunded actuarial accrued liability portion of
25 the Senior Management Service Class contribution rate. The
26 decision to participate in such local government annuity shall
27 be irrevocable for as long as the employee holds a position
28 eligible for the annuity. Any service creditable under the
29 Senior Management Service Class shall be retained after the
30 member withdraws from the Florida Retirement System; however,
31 additional service credit in the Senior Management Service
20
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 Class shall not be earned after such withdrawal. Such members
2 shall not be eligible to participate in the Senior Management
3 Service Optional Annuity Program.
4 (3)(a) The following table states the required
5 retirement contribution rates for members of the Senior
6 Management Service Class and their employers in terms of a
7 percentage of the member's gross compensation. A change in
8 the contribution rate is effective with the first salary paid
9 on or after the beginning date of the change. Contributions
10 shall be made for each pay period and are in addition to the
11 contributions required for social security and the Retiree
12 Health Insurance Subsidy Trust Fund. The contribution rate
13 changes made in this subsection are for the period July 1,
14 1998 through June 30, 1999 only.
15
16 Dates of Contribution
17 Rate Changes Members Employers
18
19 February 1, 1987, through
20 December 31, 1988 0% 13.88%
21 January 1, 1989, through
22 December 31, 1989 0% 14.95%
23 January 1, 1990, through
24 December 31, 1990 0% 16.04%
25 January 1, 1991, through
26 December 31, 1991 0% 18.39%
27 January 1, 1992, through
28 December 31, 1992 0% 19.48%
29 January 1, 1993, through
30 December 31, 1993 0% 20.55%
31 January 1, 1994, through
21
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 December 31, 1994 0% 23.07%
2 January 1, 1995, through
3 December 31, 1995 0% 23.88%
4 January 1, 1996, through
5 June 30, 1996 0% 24.14%
6 Effective July 1, 1996, through June 30,
7 1998 0% 21.58%
8 Effective July 1, 1998, through
9 June 30, 1999 0% 22.06%
10
11 (c) The following table states the required employer
12 contribution on behalf of each member of the Senior Management
13 Service Class in terms of a percentage of the member's gross
14 compensation. Such contribution constitutes the entire health
15 insurance subsidy contribution with respect to the member. A
16 change in the contribution rate is effective with the first
17 salary paid on or after the beginning date of the change. The
18 retiree health insurance subsidy contribution rate is as
19 follows:
20
21 Dates of Contribution Contribution
22 Rate Changes Rate
23
24 October 1, 1987, through December 31, 1988 0.24%
25 January 1, 1989, through December 31, 1993 0.48%
26 January 1, 1994, through December 31, 1994 0.56%
27 Effective January 1, 1995, through June 30,
28 1998 0.66%
29 Effective July 1, 1998, through June 30, 1999 0.94%
30
31 Such contributions shall be deposited by the administrator in
22
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 the Retiree Health Insurance Subsidy Trust Fund.
2 Section 7. Subsections (1) and (4) of section 121.071,
3 Florida Statutes, are amended to read:
4 121.071 Contributions.--Contributions to the system
5 shall be made as follows:
6 (1) The following tables state the required retirement
7 contribution rates for members of the Regular Class, Special
8 Risk Class, or Special Risk Administrative Support Class and
9 their employers in terms of a percentage of the member's gross
10 compensation. A change in a contribution rate is effective
11 with the first salary paid on or after the beginning date of
12 the change. Contributions shall be made or deducted as may be
13 appropriate for each pay period and are in addition to the
14 contributions required for social security and the Retiree
15 Health Insurance Subsidy Trust Fund. The contribution rate
16 changes made in this subsection are for the period July 1,
17 1998 through June 30, 1999 only.
18 (a) Retirement contributions for regular members are
19 as follows:
20
21 Dates of Contribution
22 Rate Changes Members Employers
23
24 December 1, 1970, through December
25 31, 1974, for state agencies, state
26 universities, community colleges,
27 and district school boards 4% 4%
28
29 December 1, 1970, through September
30 30, 1975, for all other local
31 government agencies 4% 4%
23
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1
2 January 1, 1975, through September
3 30, 1978, for state agencies and
4 state universities 0% 9%
5
6 January 1, 1975, through July 31,
7 1978, for community colleges and
8 district school boards 0% 9%
9
10 October 1, 1975, through September
11 30, 1978, for all other local
12 government agencies 0% 9%
13
14 August 1, 1978, through September 30,
15 1981, for community colleges and
16 district school boards 0% 9.1%
17
18 October 1, 1978, through September
19 30, 1981, for all other agencies 0% 9.1%
20
21 October 1, 1981, through
22 September 30, 1984 0% 10.93%
23 October 1, 1984, through
24 September 30, 1986 0% 12.24%
25 October 1, 1986, through
26 December 31, 1988 0% 13.14%
27 January 1, 1989, through
28 December 31, 1989 0% 13.90%
29 January 1, 1990, through
30 December 31, 1990 0% 14.66%
31 January 1, 1991, through
24
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 December 31, 1991 0% 15.72%
2 January 1, 1992, through
3 December 31, 1992 0% 16.51%
4 January 1, 1993, through
5 December 31, 1993 0% 17.27%
6 January 1, 1994, through
7 December 31, 1994 0% 17.10%
8 January 1, 1995, through
9 December 31, 1995 0% 16.91%
10 January 1, 1996, through
11 June 30, 1996 0% 17.00%
12 Effective July 1, 1996, through June 30,
13 1998 0% 16.77%
14 Effective July 1, 1998, through
15 June 30, 1999 0% 12.19%
16
17 (b) Retirement contributions for special risk members
18 are as follows:
19
20 Dates of Contribution
21 Rate Changes Members Employers
22
23 December 1, 1970, through
24 September 30, 1974 6% 6%
25
26 October 1, 1974, through December 31,
27 1974, for state agencies, state
28 universities, community colleges,
29 and district school boards 8% 8%
30
31 October 1, 1974, through September
25
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 30, 1975, for all other local
2 government agencies 8% 8%
3
4 January 1, 1975, through September
5 30, 1978, for state agencies, state
6 universities, community colleges,
7 and district school boards 0% 13%
8
9 October 1, 1975, through September
10 30, 1978, for other local
11 government agencies 0% 13%
12
13 October 1, 1978, through
14 September 30, 1981 0% 13.95%
15 October 1, 1981, through
16 September 30, 1984 0% 13.91%
17 October 1, 1984, through
18 September 30, 1986 0% 14.67%
19 October 1, 1986, through
20 December 31, 1988 0% 15.11%
21 January 1, 1989, through
22 December 31, 1989 0% 17.50%
23 January 1, 1990, through
24 December 31, 1990 0% 19.90%
25 January 1, 1991, through
26 December 31, 1991 0% 25.52%
27 January 1, 1992, through
28 December 31, 1992 0% 26.35%
29 January 1, 1993, through
30 December 31, 1993 0% 27.14%
31 January 1, 1994, through
26
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 December 31, 1994 0% 27.03%
2 January 1, 1995, through
3 December 31, 1995 0% 26.83%
4 January 1, 1996, through
5 June 30, 1996 0% 26.84%
6 Effective July 1, 1996, through June 30,
7 1998 0% 26.44%
8 Effective July 1, 1998 through June 30, 1999 0% 14.53%
9
10 (c) Retirement contributions for special risk
11 administrative support members are as follows:
12
13 Dates of Contribution
14 Rate Changes Members Employers
15
16 July 1, 1982, through
17 September 30, 1984 0% 11.14%
18 October 1, 1984, through
19 September 30, 1986 0% 13.09%
20 October 1, 1986, through
21 December 31, 1988 0% 15.44%
22 January 1, 1989, through
23 December 31, 1989 0% 14.76%
24 January 1, 1990, through
25 December 31, 1990 0% 14.09%
26 January 1, 1991, through
27 December 31, 1991 0% 20.16%
28 January 1, 1992, through
29 December 31, 1992 0% 19.51%
30 January 1, 1993, through
31 December 31, 1993 0% 18.83%
27
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 January 1, 1994, through
2 December 31, 1994 0% 18.59%
3 January 1, 1995, through
4 December 31, 1995 0% 17.81%
5 January 1, 1996, through
6 June 30, 1996 0% 17.80%
7 Effective July 1, 1996, through June 30,
8 1998 0% 17.20%
9 Effective July 1, 1998, through
10 June 20, 1999 0% 6.48%
11
12 (4) The following table states the required employer
13 contribution on behalf of each member of the Regular Class,
14 Special Risk Class, or Special Risk Administrative Support
15 Class in terms of a percentage of the member's gross
16 compensation. Such contribution constitutes the entire health
17 insurance subsidy contribution with respect to the member. A
18 change in the contribution rate is effective with the first
19 salary paid on or after the beginning date of the change. The
20 retiree health insurance subsidy contribution rate is as
21 follows:
22
23 Dates of Contribution Contribution
24 Rate Changes Rate
25
26 October 1, 1987, through December 31, 1988 0.24%
27 January 1, 1989, through December 31, 1993 0.48%
28 January 1, 1994, through December 31, 1994 0.56%
29 Effective January 1, 1995, through June 30,
30 1998 0.66%
31 Effective July 1, 1998, through June 30, 1999 0.94%
28
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1
2 Such contributions shall be deposited by the administrator in
3 the Retiree Health Insurance Subsidy Trust Fund.
4 Section 8. Subsection (2), paragraph (d) of subsection
5 (6), paragraph (a) of subsection (7), and subsection (8) of
6 section 121.091, Florida Statutes, are amended, paragraphs (f)
7 and (g) of subsection (7) of said section are redesignated as
8 paragraphs (g) and (h), respectively, and a new paragraph (f)
9 is added to said subsection, to read:
10 121.091 Benefits payable under the system.--No
11 benefits shall be paid under this section unless the member
12 has terminated employment as provided in s. 121.021(39) and a
13 proper application has been filed in the manner prescribed by
14 the division.
15 (2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT
16 AGES.--In the event a member accumulates retirement benefits
17 to commence at different normal retirement ages by virtue of
18 having performed duties for an employer which would entitle
19 him or her to benefits as both a regular member and special
20 risk member of the Special Risk Class and a member of either
21 the Regular Class, Senior Management Service Class, or Elected
22 Officers' Class, the amount of benefits payable shall be
23 computed separately with respect to each such age and the sum
24 of such computed amounts shall be paid as provided in this
25 section.
26 (6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND
27 DISABILITY RETIREMENT BENEFITS.--
28 (d) A member who elects the option in subparagraph
29 (a)3. or subparagraph (a)4. shall, on a form provided for that
30 purpose, designate a joint annuitant to receive the benefits
31 which continue to be payable upon the death of the member.
29
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 After benefits have commenced under the option in subparagraph
2 (a)3. or subparagraph (a)4., the following shall apply:
3 1. A retired member may change his or her designation
4 of a joint annuitant only twice. If such a retired member
5 desires to change his or her designation of a joint annuitant,
6 he or she shall file with the division a notarized "change of
7 joint annuitant" form and shall notify the former joint
8 annuitant in writing of such change. Upon receipt of a
9 completed change of joint annuitant form, the division shall
10 adjust the member's monthly benefit by the application of
11 actuarial tables and calculations developed to ensure that the
12 benefit paid is the actuarial equivalent of the present value
13 of the member's current benefit. The consent of a retired
14 member's first designated joint annuitant to any such change
15 shall not be required.
16 2. In the event of the dissolution of marriage of a
17 retired member and a joint annuitant, such member may make an
18 election to nullify the joint annuitant designation of the
19 former spouse, unless there is an existing qualified domestic
20 relations order preventing such action. The member shall file
21 with the division a written, notarized nullification which
22 shall be effective on the first day of the next month
23 following receipt by the division. Benefits shall be paid as
24 if the former spouse predeceased the member. A member who
25 makes such an election may not reverse the nullification but
26 may designate a new joint annuitant in accordance with
27 subparagraph 1.
28 (7) DEATH BENEFITS.--
29 (a) If the employment of a member is terminated by
30 reason of his or her death prior to the completion of 10 years
31 of creditable service, except as provided in paragraph (f),
30
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 there shall be payable to his or her designated beneficiary
2 the member's accumulated contributions.
3 (f) Notwithstanding any other provisions in this
4 chapter to the contrary and upon application to the
5 administrator, an eligible joint annuitant, of a member whose
6 employment is terminated by death within 1 year of such member
7 satisfying the service requirements for vesting and retirement
8 eligibility, shall be permitted to purchase only the
9 additional service credit necessary to vest and qualify for
10 retirement benefits by one of the following methods:
11 1. Such eligible joint annuitant may use the deceased
12 member's accumulated hours of annual, sick, and compensatory
13 leave to purchase additional creditable service, on an hour by
14 hour basis, provided that such deceased member's accumulated
15 leave is sufficient to cover the additional months required.
16 For each month of service credit needed prior to the final
17 month, credit for the total number of work hours in that month
18 must be purchased, using an equal number of the deceased
19 member's accumulated leave hours. Service credit required for
20 the final month in which the deceased member would have become
21 vested shall be awarded upon the purchase of 1 hour of credit.
22 Such eligible joint annuitant shall pay the contribution rate
23 in effect at the time of purchase of the deceased member's
24 class of membership, multiplied by such member's monthly
25 salary at the time of death. The accumulated leave payment
26 used in the average final compensation shall not include that
27 portion of the payment that represents any leave hours used in
28 the purchase of such creditable service.
29 2. Such eligible joint annuitant may purchase
30 additional months of creditable service, up to a maximum of 1
31 year, for any periods of out-of-state service as provided in
31
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 s. 121.1115, or in-state service as provided in s. 121.1122,
2 that the deceased member would have been eligible to purchase
3 prior to his or her death.
4
5 Service purchased under this paragraph shall be added to the
6 creditable service of the member and used to vest for
7 retirement eligibility, and shall be used in the calculation
8 of any benefits which may be payable to the eligible joint
9 annuitant. Any benefits paid in accordance with this
10 paragraph shall only be made prospectively.
11 (8) DESIGNATION OF BENEFICIARIES.--Each member may, on
12 a form provided for that purpose, signed and filed with the
13 division, designate a choice of one or more persons, named
14 sequentially or jointly, as his or her beneficiary who shall
15 receive the benefits, if any, which may be payable in the
16 event of the member's death pursuant to the provisions of this
17 chapter. If no beneficiary is named in the manner provided
18 above, or if no beneficiary designated by the member survives
19 the member, the beneficiary shall be the spouse of the
20 deceased, if living. If the member's spouse is not alive at
21 his or her death, the beneficiary shall be the living children
22 of the member. If no children survive, the beneficiary shall
23 be the member's father or mother, if living; otherwise, the
24 beneficiary shall be the member's estate. The beneficiary
25 most recently designated by a member on a form or letter filed
26 with the division shall be the beneficiary entitled to any
27 benefits payable at the time of the member's death, except
28 benefits shall be paid as provided in paragraph (7)(d) when
29 death occurs in the line of duty. Notwithstanding any other
30 provisions in this subsection to the contrary, for a member
31 who dies prior to his or her effective date of retirement on
32
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 or after January 1, 1999, the spouse at the time of death
2 shall be the member's beneficiary unless such member
3 designates a different beneficiary as provided herein
4 subsequent to the member's most recent marriage.
5 Section 9. Subsection (1) of section 121.1122, Florida
6 Statutes, is amended to read:
7 121.1122 Purchase of retirement credit for in-state
8 public service and in-state service in accredited nonpublic,
9 nonsectarian schools and colleges, including charter
10 schools.--Effective January 1, 1998, a member of the Florida
11 Retirement System may purchase creditable service for periods
12 of certain public or nonpublic, nonsectarian employment
13 performed in this state, as provided in this section.
14 (1) PURCHASE OF RETIREMENT CREDIT AUTHORIZED.--Subject
15 to the provisions of subsections (2) and (3), a member of the
16 Florida Retirement System may purchase up to 5 years of
17 retirement credit for:
18 (a) Periods of public employment in this state; or
19 (b) Periods of employment in charter schools or in any
20 nonpublic, nonsectarian school or college in this state that
21 is accredited by the Southern Association of Colleges and
22 Schools.
23
24 Credit for 1 year of such service may be purchased for each
25 year of creditable service a member completes under the
26 Florida Retirement System.
27 Section 10. Section 121.121, Florida Statutes, is
28 amended to read:
29 121.121 Future service to include Authorized leaves of
30 absence.--
31 (1) A member may purchase creditable service for
33
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 Future service of any member as defined in s. 121.021(21)
2 shall also include up to 2 work years of creditable service
3 for authorized leaves of absence if:
4 (a)(1) The member has completed a minimum of 10 years
5 of creditable service, excluding periods of leave of absence;
6 (b)(2) The leave of absence is authorized in writing
7 by the employer of the member and approved by the
8 administrator;
9 (c)(3) The member returns to active employment
10 performing service with a Florida Retirement System employer
11 in a regularly established position immediately upon
12 termination of the leave of absence and remains on the
13 employer's payroll for 1 calendar month, except that a member
14 who retires on disability while on a medical leave of absence
15 shall not be required to return to employment; and
16 (d)(4) The member makes the required contributions for
17 service credit during the leave of absence, which shall be 8
18 percent until January 1, 1975, and 9 percent thereafter of his
19 or her rate of monthly compensation in effect immediately
20 prior to the commencement of such leave for each month of such
21 period, plus 4 percent interest until July 1, 1975, and 6.5
22 percent interest thereafter on such contributions, compounded
23 annually each June 30 from the due date of the contribution to
24 date of payment. Effective July 1, 1980, any leave of absence
25 purchased pursuant to this section shall be at the
26 contribution rates specified in s. 121.071 in effect at the
27 time the leave is granted for the class of membership from
28 which the leave of absence was granted; however, any member
29 who purchased leave-of-absence credit prior to July 1, 1980,
30 for a leave of absence from a position in a class other than
31 the regular membership class, may pay the appropriate
34
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 additional contributions plus compound interest thereon and
2 receive creditable service for such leave of absence in the
3 membership class from which the member was granted the leave
4 of absence.
5 (2) A member who is required to resign his or her
6 office as a subordinate officer, deputy sheriff, or police
7 officer because he or she is a candidate for a public office
8 which is currently held by his or her superior officer who is
9 also a candidate for reelection to the same office, in
10 accordance with s. 99.012(5), shall, upon return to covered
11 employment, be eligible to purchase retirement credit for the
12 period between his or her date of resignation and the
13 beginning of the term of office for which he or she was a
14 candidate as a leave of absence without pay, as provided in
15 subsection (1).
16 Section 11. Subsection (3) of section 121.122, Florida
17 Statutes, is amended to read:
18 121.122 Renewed membership in system.--Except as
19 provided in s. 121.053, effective July 1, 1991, any retiree of
20 a state-administered retirement system who is employed in a
21 regularly established position with a covered employer shall
22 be enrolled as a compulsory member of the Regular Class of the
23 Florida Retirement System or, effective July 1, 1997, any
24 retiree of a state-administered retirement system who is
25 employed in a position included in the Senior Management
26 Service Class shall be enrolled as a compulsory member of the
27 Senior Management Service Class of the Florida Retirement
28 System as provided in s. 121.055, and shall be entitled to
29 receive an additional retirement benefit, subject to the
30 following conditions:
31 (3) Such member shall be entitled to purchase
35
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 additional retirement credit in the Regular Class or the
2 Senior Management Service Class, as applicable, for any
3 postretirement service performed in a regularly established
4 position as follows:
5 (a) For regular class service prior to July 1, 1991,
6 by paying the Regular Class applicable employee and employer
7 contributions for the period being claimed, plus 4 percent
8 interest compounded annually from first year of service
9 claimed until July 1, 1975, and 6.5 percent interest
10 compounded thereafter, until full payment is made to the
11 Florida Retirement System Trust Fund; or
12 (b) For Senior Management Service Class prior to June
13 1, 1997, as provided in s. 121.055(1)(h).
14
15 The contribution for postretirement service between July 1,
16 1985, and July 1, 1991, for which the reemployed retiree
17 contribution was paid, shall be the difference between such
18 contribution and the total applicable contribution for the
19 period being claimed, plus interest. The employer of such
20 member may pay the applicable employer contribution in lieu of
21 the member.
22 Section 12. Subsection (5) of section 121.30, Florida
23 Statutes, is amended to read:
24 121.30 Statements of purpose and intent and other
25 provisions required for qualification under the Internal
26 Revenue Code of the United States.--Any other provisions in
27 this chapter to the contrary notwithstanding, it is
28 specifically provided that:
29 (5) No benefit payable hereunder for any limitation
30 year shall exceed the maximum amount, including cost-of-living
31 adjustments, allowable by law for qualified pension plans
36
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 under applicable provisions of the Internal Revenue Code of
2 the United States. In the event of any participation of a
3 Florida Retirement System member in any other plan that is
4 maintained by the participating employer, benefits that accrue
5 under the Florida Retirement System shall be considered
6 primary for any aggregate limitation applicable under s. 415
7 of the Internal Revenue Code.
8 Section 13. Section 121.133, Florida Statutes, is
9 created to read:
10 121.133 Cancellation of uncashed
11 warrants.--Notwithstanding the provisions of s. 17.26 or s.
12 717.123 to the contrary, effective July 1, 1998, if any state
13 warrant issued by the Comptroller for the payment of
14 retirement benefits from the Florida Retirement System Trust
15 Fund, or any other pension trust fund administered by the
16 division, is not presented for payment within 1 year after the
17 last day of the month in which it was originally issued, the
18 Comptroller shall cancel the benefit warrant and credit the
19 amount of the warrant to the Florida Retirement System Trust
20 Fund or other pension trust fund administered by the division,
21 as appropriate. The Division of Retirement may provide for
22 issuance of a replacement warrant when deemed appropriate.
23 Section 14. Paragraph (b) of subsection (12) of
24 section 121.40, Florida Statutes, is amended to read:
25 121.40 Cooperative extension personnel at the
26 Institute of Food and Agricultural Sciences; supplemental
27 retirement benefits.--
28 (12) CONTRIBUTIONS.--
29 (b) The monthly contributions required to be paid
30 pursuant to paragraph (a) on the gross monthly salaries, from
31 all sources with respect to such employment, paid to those
37
4:07 PM 04/24/98 s1950.go16.0a
SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 employees of the institute who hold both state and federal
2 appointments and who participate in the federal Civil Service
3 Retirement System shall be as follows:
4
5 Dates of Contribution Percentage
6 Rate Changes Due
7
8 July 1, 1985, through December 31, 1988 6.68%
9 January 1, 1989, through December 31, 1993 6.35%
10 January 1, 1994, through December 31, 1994 6.69%
11 January 1, 1995, through June 30, 1996 6.82%
12 Effective July 1, 1996, through June 30,
13 1998 5.64%
14 Effective July 1, 1998, through June 30, 1999 7.17%
15
16 Section 15. Sections 121.0505 and 121.0516, Florida
17 Statutes, are repealed.
18 Section 16. The Executive Director of the State Board
19 of Administration and the Director of the Division of
20 Retirement shall undertake a comprehensive review of the
21 assumptions and contribution rate structure underpinning the
22 operation of the Florida Retirement System. By March 1, 1999,
23 the State Board of Administration and the division shall
24 submit to the Board of Trustees of the State Board of
25 Administration, the President of the Senate, and the Speaker
26 of the House of Representatives a report which shall contain
27 the following elements:
28 (1) The method of development of actuarial assumptions
29 and their application.
30 (2) The relevance of present assumptions in light of
31 patterns of recruitment, retention, and retirement.
38
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 (3) The investment and economic market in which the
2 Florida Retirement System, and similarly constituted systems,
3 operate.
4 (4) Prospective conditions in economic forecasts
5 within a reasonable degree of estimation which may affect
6 investment performance, workforce, and salary trends.
7
8 The State Board of Administration and the Division of
9 Retirement may, at their discretion, utilize the services of
10 the Office of Economic and Demographic Research and may also
11 convene a working group of affected principals for use in the
12 development of the study proposed in this section. The
13 President of the Senate and the Speaker of the House of
14 Representatives may each appoint two legislative members to
15 the working group.
16 Section 17. (1) The changes to the retirement
17 contribution rates for the Florida Retirement System included
18 in this act are the result of the 1997 Actuarial Valuation of
19 the Florida Retirement System, as recommended by the
20 consulting actuaries and subsequently modified by the special
21 actuarial study of April 20, 1998. These changes shall remain
22 in effect until the rates are further amended or until the
23 rates are adjusted as provided in subsection (2).
24 (2) The rate adjustments set forth in this act are in
25 addition to all other changes to such contribution rates which
26 are separately enacted into law and applicable on July 1,
27 1998. With respect to such other changes, the Division of
28 Statutory Revision of the Joint Legislative Management
29 Committee shall edit the statutes as necessary to adjust the
30 contribution rate percentages listed in sections
31 121.052(7)(a), 121.055(3)(a), and 121.071(1), Florida
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 Statutes, as appropriate. Pursuant to section 11.242(5)(i),
2 Florida Statutes, this section shall be omitted from
3 publication in the Florida statutes or any revision or
4 supplement thereof.
5 Section 18. The Legislature finds that a proper and
6 legitimate state purpose is served when employees and retirees
7 of the state and its political subdivisions, and the
8 dependents, survivors, and beneficiaries of such employees and
9 retirees, are extended the basic protections afforded by
10 governmental retirement systems that provide fair and adequate
11 benefits and are managed, administered, and funded in an
12 actuarially sound manner, as required by s. 14, Art. X of the
13 State Constitution and part VII of chapter 112, Florida
14 Statutes. Therefore, the Legislature hereby determines and
15 declares that the provisions of this act fulfill an important
16 state interest.
17 Section 19. In editing manuscript for the next edition
18 of the official Florida Statutes, the Statutory Revision
19 Division of the Joint Legislative Management Committee, or its
20 successor, shall change "Elected State and County Officers'
21 Class" to "Elected Officers' Class" wherever the same appears
22 in chapter 121.
23 Section 20. Except as otherwise provided herein, this
24 act shall take effect upon becoming a law.
25
26
27 ================ T I T L E A M E N D M E N T ===============
28 And the title is amended as follows:
29 Delete everything before the enacting clause
30
31 and insert:
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 A bill to be entitled
2 An act relating to the Florida Retirement
3 System; amending s. 112.363, F.S.; increasing
4 the retiree health insurance subsidy payment
5 and the contribution rate; providing for
6 retroactive payments under certain
7 circumstances; amending s. 121.011, F.S.;
8 clarifying benefits payable under existing
9 systems; amending s. 121.021, F.S.; revising
10 and adding definitions; amending s. 121.031,
11 F.S.; providing an annual valuation of the
12 Florida Retirement System; amending ss.
13 121.052, 121.055, and 121.071, F.S.; modifying
14 the statutory limit on the number of
15 nonelective full-time positions that may be
16 designated by a local agency employer for
17 inclusion in the Senior Management Service
18 Class; changing contribution rates for
19 specified classes and subclasses of the system
20 and for the retiree health insurance subsidy;
21 amending s. 121.091, F.S.; providing for
22 benefit computations using dual retirement ages
23 for service in the Senior Management Service
24 Class and the Elected Officer's Class;
25 providing for nullification of a joint
26 annuitant designation in the event of
27 dissolution of marriage; providing for purchase
28 of additional service credit using a deceased
29 member's accumulated leave, out-of-state
30 service, or in-state service under certain
31 circumstances; specifying that a member's
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 spouse at the time of death shall be the
2 member's beneficiary under certain
3 circumstances; providing a directive to statute
4 editors; amending s. 121.1122, F.S.; deleting
5 reference to nonsectarian schools and colleges;
6 amending s. 121.121, F.S.; providing for
7 eligibility to purchase retirement credit for
8 certain leaves of absence; amending s. 121.122,
9 F.S.; allowing members with renewed membership
10 in the Senior Management Service Class to
11 purchase additional retirement credit for
12 certain postretirement service; amending s.
13 121.30, F.S.; conforming to the Internal
14 Revenue Code; creating s. 121.133, F.S.;
15 providing intent; requiring the Comptroller to
16 cancel any benefit warrant issued from the
17 Florida Retirement System Trust Fund, or from
18 certain other pension trust funds, if such
19 warrants are not presented within a specified
20 timeframe; providing that such funds shall be
21 transferred and recredited to specified trust
22 funds; providing for issuance of replacement
23 warrants; amending s. 121.40, F.S.; changing
24 contribution rates for the supplemental
25 retirement plan for the Institute of Food and
26 Agricultural Sciences at the University of
27 Florida; repealing ss. 121.0505 and 121.0516,
28 F.S.; relating to duplicative contribution
29 rates; providing for a report to the Board of
30 Trustees of the State Board of Administration,
31 the President of the Senate, and the Speaker of
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SENATE AMENDMENT
Bill No. SB 1950
Amendment No.
1 the House of Representatives on the Florida
2 Retirement System; directing the Division of
3 Statutory Revision to make described
4 adjustments to the statutes with respect to
5 contribution rates; providing a finding of
6 important state interest; providing effective
7 dates.
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