CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. SB 1950

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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10                                                                

11  Senator Williams moved the following amendment to amendment

12  (375588):

13

14         Senate Amendment (with title amendment) 

15         On page 40, between lines 22 and 23,

16

17  insert:

18         Section 1.  (1)  There is created the Florida Defined

19  Contribution Retirement Study Commission for the purpose of

20  advising the Legislature and the Governor on measures in the

21  formulation and implementation of an optional portable

22  retirement program.

23         (a)  The commission shall consist of 20 members, as

24  follows:

25         1.  Two legislators appointed by the President of the

26  Senate;

27         2.  Two legislators appointed by the Speaker of the

28  House of Representatives;

29         3.  One employee of the Governors Office of Planning

30  and Budgeting, appointed by the Governor;

31         4.  The President of the Senate and the Speaker of the

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                                                  SENATE AMENDMENT

    Bill No. SB 1950

    Amendment No.    





 1  House of Representatives shall appoint the following

 2  commission members based upon the recommendations of each of

 3  the respective employer or employee member organizations:

 4         a.  Three members representing the financial services

 5  industry, to include a provider of mutual funds, a provider of

 6  insurance/annuity products, and a provider from a financial

 7  services company;

 8         b.  One member representing the Division of Retirement;

 9         c.  One member representing the State Board of

10  Administration;

11         d.  One member representing municipality members of the

12  Florida Retirement System;

13         e.  Two members representing counties, one representing

14  the employer, and one representing the non-managerial,

15  nonsupervisory employees;

16         f.  Four members representing education, one school

17  board member, one superintendent or administrator, and two

18  teachers;

19         g.  One member representing state employees;

20         h.  One representing the special risk class of the

21  Florida Retirement System;

22         i.  One member representing Special District members of

23  the Florida Retirement System.

24         (2)  The Commission shall be co-chaired by one

25  Representative and one Senator.

26         (3)  It is the duty of the commission to:

27         (a)  Review existing defined benefit and defined

28  contribution pension plans, taking into consideration:

29         1.  The proper relationship of employer and employee

30  contributions to any alternate plan;

31         2.  Any effects on the existing retirement plan

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                                                  SENATE AMENDMENT

    Bill No. SB 1950

    Amendment No.    





 1  resulting from implementation of a new retirement plan,

 2  including, but not limited to:

 3         a.  Vesting rights and portability options;

 4         b.  Other factors influencing the demand for either

 5  program; and

 6         c.  Considering the effect of implementing the optional

 7  defined contribution plan, including affect on unfunded

 8  accrued liabilities of existing defined benefit plans.

 9         3.  Review of a study performed by the Florida

10  Retirement System on credit for transferring funds from the

11  existing retirement plan to an optional retirement plan.

12         (b)  Recommend and address:

13         1.  The role and obligations for educating employees

14  regarding the differences and advantages of the two plans, and

15  regarding their investment choices;

16         2.  Program administration and its cost, and who shall

17  bear the cost; and

18         3.  The offering of plans independently, or as a group.

19         (4)  The commission shall make its recommendation in an

20  official report, adopted by the commission and transmitted to

21  the Governor, the President of the Senate, and the Speaker of

22  the House of Representatives by January 1, 1999.

23         (5)  Commission members shall be appointed by June 1,

24  1998 and shall convene to organize immediately after the

25  appointments have been completed.

26         (6)  Members of the commission shall service without

27  compensation.  Members of the commission shall be entitled to

28  receive reimbursement for travel and per diem as provided in

29  section 112.061, Florida Statutes, while carrying out official

30  business of the commission.

31         (7)  The commission shall hold meetings when deemed

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                                                  SENATE AMENDMENT

    Bill No. SB 1950

    Amendment No.    





 1  necessary.

 2         Section 2.  The Division of Retirement shall furnish

 3  funds necessary for the completion of the study.

 4

 5

 6  ================ T I T L E   A M E N D M E N T ===============

 7  And the title is amended as follows:

 8         On page 43, lines 6 and 7, delete those lines

 9

10  and insert:

11         important state interest; creating the Florida

12         Defined Contribution Retirement Study

13         Commission; providing for membership; providing

14         powers and duties of the commission; providing

15         an effective date.

16

17         WHEREAS, pursuant to chapter 97-296, Laws of Florida,

18  the Workforce 2000 Study Commission complete a comprehensive

19  study comparing employee benefits in the public and private

20  sectors, and

21         WHEREAS, the appropriate application of a defined

22  contribution plan in the Florida Retirement System might

23  enable a more efficient use of public tax dollars while

24  providing additional choices for the workforce, and

25         WHEREAS, the initiative to create a defined benefit

26  retirement plan for members of the Florida Retirement System

27  can be accomplished through a review of all the components of

28  public-employee compensation, and

29         WHEREAS, the proper relationship of salary and benefit

30  compensation is acritical issue in personnel administration

31  policies in the public sector, NOW, THEREFORE,

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