Senate Bill 2044

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    Florida Senate - 1998                                  SB 2044

    By Senator Meadows





    30-556D-98

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.021, F.S.; redefining

  4         the terms "normal retirement date" and "early

  5         retirement date" to provide for retirement

  6         after 5 years of service and attainment of the

  7         age requirement for the appropriate class of

  8         the system; defining the term "vested";

  9         amending ss. 121.052, 121.053, 121.055,

10         121.091, 121.111, 121.1115, 121.1122, 121.121,

11         F.S.; conforming such sections to the changes

12         made by the act; increasing contribution rates

13         to fund the provisions of the act; providing a

14         declaration of important state interest;

15         providing an effective date.

16

17  Be It Enacted by the Legislature of the State of Florida:

18

19         Section 1.  Subsections (29) and (30) of section

20  121.021, Florida Statutes, are amended, and subsection (45) is

21  added to that section, to read:

22         121.021  Definitions.--The following words and phrases

23  as used in this chapter have the respective meanings set forth

24  unless a different meaning is plainly required by the context:

25         (29)  "Normal retirement date" means the first day of

26  any month following the date on which a member attains one of

27  the following statuses:

28         (a)  If a Regular Class member, the member:

29         1.  Completes 5 10 or more years of creditable service

30  and attains age 62; or

31

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  1         2.(b)  Completes 30 years of creditable service, which

  2  may include a maximum of 4 years of military service credit,

  3  so long as such credit is not claimed under any other system,

  4  regardless of age;

  5         (b)(c)  If a Special Risk Class member, the member:

  6         1.  Completes 5 10 or more years of creditable service

  7  and attains age 55;

  8         2.  Completes 25 years of creditable service,

  9  regardless of age; or

10         3.  Completes 25 years of creditable service, which may

11  include a maximum of 4 years of military service credit not

12  claimed under any other system, and attains age 52; or

13         (c)(d)  If a Senior Management Service Class member,

14  the member:

15         1.  Completes 5 7 years of creditable service in the

16  Senior Management Service Class and attains age 62; or

17         2.  Completes 30 years of creditable service, which may

18  include a maximum of 4 years of military service credit not

19  claimed under any other system, regardless of age; or.

20         (d)  If an Elected State and County Officers' Class

21  member, the member:

22         1.  Completes 5 or more years of creditable service and

23  attains age 62; or

24         2.  Completes 30 years of creditable service, which may

25  include a maximum of 4 years of military service not claimed

26  under any other system, regardless of age.

27

28  "Normal retirement age" is attained on the "normal retirement

29  date."

30         (30)  "Early retirement date" means the first day of

31  the month following the date a member completes 5 10 years of

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  1  creditable service and elects to receive retirement benefits

  2  in accordance with this chapter. Such benefits shall be based

  3  on average monthly compensation and creditable service as of

  4  the member's early retirement date, and the benefit so

  5  computed shall be reduced by five-twelfths of 1 percent for

  6  each complete month by which the early retirement date

  7  precedes his or her normal retirement date as provided in s.

  8  121.091(3).

  9         (45)  "Vested" means the guarantee that a member is

10  eligible to receive a future retirement benefit upon

11  completion of the required years of creditable service for the

12  employee's class of membership even though the member may have

13  terminated covered employment before reaching his or her

14  normal or early retirement date. Being vested does not entitle

15  a member to a disability benefit based on a disability caused

16  by an injury or disease that occurs after termination of

17  covered employment.

18         Section 2.  Subsection (8) and paragraphs (b) and (c)

19  of subsection (12) of section 121.052, Florida Statutes, are

20  amended to read:

21         121.052  Membership class of elected state and county

22  officers.--

23         (8)  NORMAL RETIREMENT DATE; VESTING REQUIREMENT.--A

24  member of the Elected State and County Officers' Class shall

25  have the same normal retirement date as defined in s.

26  121.021(29) for a member of the regular class of the Florida

27  Retirement System, except that only 5 8 years of creditable

28  service in this class are needed to attain the normal

29  retirement date specified in s. 121.021(29)(a).  Any public

30  service commissioner who was removed from the Elected State

31  Officers' Class on July 1, 1979, after attaining at least 8

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  1  years of creditable service in that class shall be considered

  2  to have reached the normal retirement date upon attaining age

  3  62 as required in s. 121.021(29)(a).

  4         (12)  BENEFITS.--

  5         (b)  The benefit provisions of s. 121.091(2)-(6), (8),

  6  (9), and (11), relating to benefits payable for dual normal

  7  retirement ages, early retirement, disability retirement,

  8  termination benefits, optional forms of retirement,

  9  designation of beneficiaries, employment after retirement, and

10  method of computing actuarial equivalent, respectively, shall

11  also apply to members of the Elected State and County

12  Officers' Class, except that only 5 8 years of creditable

13  service in this class are needed to attain the benefits

14  specified in s. 121.091(3) and (5). These provisions shall be

15  construed in such manner as to make them compatible with the

16  provisions of this section.

17         (c)  The benefit provisions of s. 121.091(7), relating

18  to death benefits, shall apply to members of the Elected State

19  and County Officers' Class and shall be construed in such

20  manner as to make them compatible with the provisions of this

21  section; however, only 5 8 years of creditable service in this

22  class are needed to obtain such benefits, except that:

23         1.  In the event any elected official dies in office

24  who would have been vested under had 8 years of creditable

25  service in the Elected State and County Officers' Class, or 10

26  years of creditable service in any other class of the Florida

27  Retirement System or any other state-administered retirement

28  system, if the official had lived to complete his or her term

29  of office, the official's spouse may elect to leave the

30  official's retirement contributions in the retirement trust

31  fund and pay into said fund any required contributions which

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  1  would have been paid by the officer or the employer had the

  2  officer lived to complete the term of office.

  3         2.  If a deceased member's surviving spouse as

  4  described in subparagraph 1. previously received a refund of

  5  the member's contributions made to the retirement trust fund,

  6  the surviving spouse may pay into the retirement trust fund an

  7  amount equal to the deceased member's contributions previously

  8  refunded, together with interest at 4 percent compounded

  9  annually on the amount of such refunded contributions from the

10  date of refund until July 1, 1975, and at 6.5 percent

11  compounded annually thereafter to the date of payment, plus

12  such additional contributions as may be required under

13  subparagraph 1., in order to become vested qualify for 8 or 10

14  years of creditable service, as applicable.

15

16  Upon conclusion of the term of office to which the deceased

17  officer was elected, a spouse who pays into the retirement

18  trust fund such additional or refunded contributions, plus

19  interest, shall be eligible to receive a monthly benefit in

20  the same manner as the surviving spouse of a member who dies

21  after accumulating the required number of years of creditable

22  service as described herein.

23         Section 3.  Paragraph (b) of subsection (1) of section

24  121.053, Florida Statutes, is amended to read:

25         121.053  Participation in the Elected State and County

26  Officers' Class for retired members.--

27         (1)

28         (b)  Any retired member of the Florida Retirement

29  System, or any existing system as defined in s. 121.021(2),

30  who, on or after July 1, 1990, is serving in, or is elected or

31  appointed to, an elective office covered by the Elected State

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  1  and County Officers' Class shall be enrolled in the

  2  appropriate subclass of the Elected State and County Officers'

  3  Class of the Florida Retirement System, and applicable

  4  contributions shall be paid into the Florida Retirement System

  5  Trust Fund as provided in s. 121.052(7).  Pursuant thereto:

  6         1.  Any such retired member shall be eligible to

  7  continue to receive retirement benefits as well as

  8  compensation for the elected officer service for as long as he

  9  or she remains in an elective office covered by the Elected

10  State and County Officers' Class.

11         2.  If any such member serves in an elective office

12  covered by the Elected State and County Officers' Class and

13  becomes vested for a period of at least 8 years, he or she

14  shall be entitled to receive an additional retirement benefit

15  for such elected officer service.

16         3.  Such member shall be entitled to purchase

17  additional retirement credit in the Elected State and County

18  Officers' Class for any postretirement service performed in an

19  elected position eligible for the Elected State and County

20  Officers' Class prior to July 1, 1990, or in the Regular Class

21  for any postretirement service performed in any other

22  regularly established position prior to July 1, 1991, by

23  paying the applicable Elected State and County Officers' Class

24  or Regular Class employee and employer contributions for the

25  period being claimed, plus 4 percent interest compounded

26  annually from the first year of service claimed until July 1,

27  1975, and 6.5 percent interest compounded thereafter, until

28  full payment is made to the Florida Retirement System Trust

29  Fund. The contribution for postretirement Regular Class

30  service between July 1, 1985, and July 1, 1991, for which the

31  reemployed retiree contribution was paid, shall be the

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  1  difference between such contribution and the total applicable

  2  contribution for the period being claimed, plus interest. The

  3  employer of such member may pay the applicable employer

  4  contribution in lieu of the member.

  5         4.  No creditable service for which credit was

  6  received, or which remained unclaimed, at retirement may be

  7  claimed or applied toward service credit earned following

  8  renewed membership. However, service earned in accordance with

  9  the renewed membership provisions in s. 121.122 may be used in

10  conjunction with creditable service earned under this

11  paragraph, provided applicable vesting requirements and other

12  existing statutory conditions required by this chapter are

13  met.

14         Section 4.  Paragraph (b) of subsection (4) of section

15  121.055, Florida Statutes, is amended to read:

16         121.055  Senior Management Service Class.--There is

17  hereby established a separate class of membership within the

18  Florida Retirement System to be known as the "Senior

19  Management Service Class," which shall become effective

20  February 1, 1987.

21         (4)

22         (b)  Service in an eligible position prior to February

23  1, 1987, or after January 31, 1987, shall satisfy the

24  requirement of attaining the normal retirement date as defined

25  in s. 121.021(29) for a Senior Management Service Class

26  member, provided the employee is a member of the Senior

27  Management Service Class after January 31, 1987.  A member of

28  this class who fails to complete 5 7 years of creditable

29  service in an eligible position shall be required to satisfy

30  the requirements for the normal retirement date for a regular

31  member as provided in s. 121.021(29).

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  1         Section 5.  Paragraphs (a), (e), and (g) of subsection

  2  (4), paragraphs (a) and (b) of subsection (5), and paragraphs

  3  (a), (b), (f), and (g) of subsection (7) of section 121.091,

  4  Florida Statutes, are amended to read:

  5         121.091  Benefits payable under the system.--No

  6  benefits shall be paid under this section unless the member

  7  has terminated employment as provided in s. 121.021(39)(a) or

  8  begun participation in the Deferred Retirement Option Program

  9  as provided in subsection (13), and a proper application has

10  been filed in the manner prescribed by the division.

11         (4)  DISABILITY RETIREMENT BENEFIT.--

12         (a)  Disability retirement date.--A member who becomes

13  totally and permanently disabled, as defined in paragraph (b),

14  after completing 5 years of creditable service, or a member

15  who becomes totally and permanently disabled in the line of

16  duty regardless of service, shall be entitled to a monthly

17  disability benefit; except that any member with less than 5

18  years of creditable service on July 1, 1980, or any person who

19  becomes a member of the Florida Retirement System on or after

20  such date must have completed 10 years of creditable service

21  prior to becoming totally and permanently disabled in order to

22  receive disability retirement benefits for any disability

23  which occurs other than in the line of duty.  But in the event

24  that any member employed on July 1, 1980, with less than 5

25  years of creditable service as of that date, becomes totally

26  and permanently disabled after completing 5 years of

27  creditable service and is found not to have attained fully

28  insured status for benefits under the federal Social Security

29  Act, such member shall be entitled to a monthly disability

30  benefit.  The disability retirement date shall be the first

31  day of the month which coincides with or next follows the date

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  1  the administrator approves payment of disability retirement

  2  benefits to the member.

  3         (e)  Recovery from disability.--The administrator may

  4  require periodic reexaminations at the expense of the

  5  retirement fund, and:

  6         1.  If the administrator finds that a member who is

  7  receiving disability benefits is, at any time prior to his or

  8  her normal retirement date, no longer disabled, the

  9  administrator shall direct that the benefits be discontinued.

10  The decision of the administrator on this question shall be

11  final and binding.

12         2.  If the member, described in subparagraph 1., who

13  recovers from such disability prior to the normal retirement

14  date does not reenter the employ of an employer and had not

15  become vested completed 10 years of creditable service as of

16  the disability retirement date, he or she shall be entitled to

17  the excess, if any, of his or her accumulated contributions

18  over the total disability benefits received up to the date of

19  recovery.

20         3.  If the member, described in subparagraph 1., who

21  recovers from such disability prior to the normal retirement

22  date does not reenter the employ of an employer but had become

23  vested completed 10 or more years of creditable service as of

24  the disability retirement date, he or she may elect to

25  receive:

26         a.  The excess, if any, of his or her accumulated

27  contributions over the total disability benefits received up

28  to the date of recovery, or

29         b.  A deferred benefit commencing on the last day of

30  the month of the normal retirement date which shall be payable

31  on the last day of the month thereafter during his or her

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  1  lifetime.  The amount of such monthly benefit shall be

  2  computed in the same manner as for a normal retirement

  3  benefit, in accordance with subsection (1), but based on

  4  average monthly compensation and creditable service as of the

  5  member's disability retirement date.

  6         4.  If the member recovers from disability and reenters

  7  employment of an employer within 6 months after recovery, the

  8  member's service will be deemed to have been continuous, but

  9  the period beginning with the first month for which he or she

10  received a disability benefit payment and ending with the date

11  he or she reentered employment will not be considered as

12  creditable service for the purpose of computing benefits

13  except as provided in subparagraph 5. The term "accumulated

14  contributions" for such member wherever used in this section

15  after such recovery means the excess of a member's accumulated

16  contributions as of the disability retirement date over total

17  disability benefits received under paragraph (d).

18         5.  If the member recovers from disability, has his or

19  her disability benefit terminated, reenters covered

20  employment, and is continuously employed for a minimum of 1

21  year of creditable service, he or she may claim as creditable

22  service the months during which he or she was receiving a

23  disability benefit, upon payment of the required

24  contributions.  Contributions shall equal the total required

25  employee and employer contribution rate during the period the

26  retiree received retirement benefits, multiplied times his or

27  her rate of monthly compensation prior to the commencement of

28  disability retirement for each month of the period claimed,

29  plus 4 percent interest until July 1, 1975, and 6.5 percent

30  interest thereafter on such contributions, compounded annually

31  each June 30 to the date of payment.  If the member does not

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  1  claim credit for all of the months he or she received

  2  disability benefits, the months claimed must be the most

  3  recent months of retirement.

  4         6.  If after recovery of disability and reentry into

  5  covered employment, the member again becomes disabled and is

  6  again approved for disability retirement, the Option 1 monthly

  7  retirement benefit shall not be less than the Option 1 monthly

  8  benefit calculated at the time of the previous disability,

  9  plus any cost of living increases up to the time the

10  disability benefit was terminated upon his or her reentry into

11  covered employment.

12         (g)  Disability retirement of justice or judge by order

13  of Supreme Court.--

14         1.  If a member is a justice of the Supreme Court,

15  judge of a district court of appeal, circuit judge, or judge

16  of a county court who has served for 5 10 years or more as an

17  elected constitutional judicial officer, including service as

18  a judicial officer in any court abolished pursuant to Art. V

19  of the State Constitution, and who is retired for disability

20  by order of the Supreme Court upon recommendation of the

21  Judicial Qualifications Commission pursuant to the provisions

22  of Art. V of the State Constitution, the member's Option 1

23  monthly benefit as provided in subparagraph (6)(a)1. shall not

24  be less than two-thirds of his or her monthly compensation as

25  of the member's disability retirement date.  Such a member may

26  alternatively elect to receive a disability retirement benefit

27  under any other option as provided in paragraph (6)(a).

28         2.  Should any justice or judge who is a member of the

29  Florida Retirement System be retired for disability by order

30  of the Supreme Court upon recommendation of the Judicial

31  Qualifications Commission pursuant to the provisions of Art. V

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  1  of the State Constitution, then all contributions to his or

  2  her account and all contributions made on his or her behalf by

  3  the employer shall be transferred to and deposited in the

  4  General Revenue Fund of the state, and there is hereby

  5  appropriated annually out of the General Revenue Fund, to be

  6  paid into the Florida Retirement System Fund, an amount

  7  necessary to pay the benefits of all justices and judges

  8  retired from the Florida Retirement System pursuant to Art. V

  9  of the State Constitution.

10         (5)  TERMINATION BENEFITS.--

11         (a)  A member whose employment is terminated for any

12  reason other than death or retirement prior to becoming vested

13  the completion of 10 years of creditable service shall be

14  entitled to the return of his or her accumulated contributions

15  as of the date of termination.

16         (b)  A member whose employment is terminated for any

17  reason other than death or retirement after becoming vested

18  the completion of 10 years of creditable service may elect to

19  receive a deferred monthly benefit which shall begin to accrue

20  on the first day of the month of normal or early retirement

21  and shall be payable on the last day of that month and each

22  month thereafter during his or her lifetime.  The amount of

23  monthly benefit shall be computed in the same manner as for a

24  normal retirement benefit in accordance with subsection (1) or

25  early retirement benefit in accordance with s. 121.021(30),

26  but based on average monthly compensation and creditable

27  service as of the date of termination.

28         (7)  DEATH BENEFITS.--

29         (a)  If the employment of a member is terminated by

30  reason of his or her death before he or she becomes vested

31  prior to the completion of 10 years of creditable service,

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  1  there shall be payable to his or her designated beneficiary

  2  the member's accumulated contributions.

  3         (b)  If the employment of an active member who may or

  4  may not have applied for retirement is terminated by reason of

  5  his or her death subsequent to becoming vested the completion

  6  of 10 years of creditable service and prior to his or her

  7  effective date of retirement, if established, it shall be

  8  assumed that the member retired as of the date of death in

  9  accordance with subsection (1) if eligible for normal

10  retirement benefits, subsection (2) if eligible for benefits

11  payable for dual normal retirement, or subsection (3) if

12  eligible for early retirement benefits.  Benefits payable to

13  the designated beneficiary shall be as follows:

14         1.  For a beneficiary who qualifies as a joint

15  annuitant, the optional form of payment provided in accordance

16  with subparagraph (6)(a)3. shall be paid for the joint

17  annuitant's lifetime.

18         2.  For a beneficiary who does not qualify as a joint

19  annuitant, no continuing monthly benefit shall be paid and the

20  beneficiary shall be entitled only to the return of the

21  member's personal contributions.

22         (f)  Notwithstanding any other provisions in this

23  chapter to the contrary, if any member who has become vested

24  accumulated at least 10 years of creditable service dies and

25  the surviving spouse receives a refund of the accumulated

26  contributions made to the retirement trust fund, such spouse

27  may pay to the Division of Retirement an amount equal to the

28  sum of the amount of the deceased member's accumulated

29  contributions previously refunded plus interest at 4 percent

30  compounded annually each June 30 from the date of refund until

31  July 1, 1975, and 6.5 percent interest compounded annually

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  1  thereafter, until full payment is made, and receive the

  2  monthly retirement benefit as provided in paragraph (b).

  3         (g)  The designated beneficiary who is the surviving

  4  spouse or other dependent of a member whose employment is

  5  terminated by death subsequent to becoming vested the

  6  completion of 10 years of creditable service but prior to

  7  actual retirement may elect to receive a deferred monthly

  8  benefit as if the member had lived and had elected a deferred

  9  monthly benefit, as provided in paragraph (5)(b), calculated

10  on the basis of the average final compensation and creditable

11  service of the member at his or her death and the age the

12  member would have attained on the commencement date of the

13  deferred benefit elected by the beneficiary, paid in

14  accordance with option 3 of paragraph (6)(a).

15         Section 6.  Subsection (2) of section 121.111, Florida

16  Statutes, is amended to read:

17         121.111  Credit for military service.--

18         (2)  Any member whose initial date of employment is

19  before January 1, 1987, who has military service as defined in

20  s. 121.021(20)(b), and who does not claim such service under

21  subsection (1) may receive creditable service for such

22  military service if:

23         (a)  The member has become vested completed a minimum

24  of 10 years of creditable service;

25         (b)  Creditable service, not to exceed a total of 4

26  years, is claimed only as service earned in the Regular Class

27  of membership; and

28         (c)  The member pays into the proper retirement trust

29  fund 4 percent of gross salary, based upon his or her first

30  year of salary subsequent to July 1, 1945, that he or she has

31  credit for under this system, plus 4 percent interest thereon

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  1  compounded annually from the date of first creditable service

  2  under this chapter until July 1, 1975, and 6.5 percent

  3  interest compounded annually thereafter, until payment is made

  4  to the proper retirement trust fund.

  5         Section 7.  Paragraph (b) of subsection (1) of section

  6  121.1115, Florida Statutes, is amended to read:

  7         121.1115  Purchase of retirement credit for

  8  out-of-state and federal service.--Effective January 1, 1995,

  9  a member of the Florida Retirement System may purchase

10  creditable service for periods of public employment in another

11  state and receive creditable service for such periods of

12  employment. Service with the Federal Government, including any

13  military service, may be claimed. Upon completion of each year

14  of service earned under the Florida Retirement System, a

15  member may purchase up to 1 year of retirement credit for his

16  or her out-of-state service, subject to the following

17  provisions:

18         (1)  LIMITATIONS AND CONDITIONS.--To receive credit for

19  the out-of-state service:

20         (b)  The member must have become vested completed a

21  minimum of 10 years of creditable service under the Florida

22  Retirement System, excluding out-of-state service and in-state

23  service claimed and purchased under s. 121.1122.

24         Section 8.  Paragraph (a) of subsection (2) of section

25  121.1122, Florida Statutes, is amended to read:

26         121.1122  Purchase of retirement credit for in-state

27  public service and in-state service in accredited nonpublic,

28  nonsectarian schools and colleges, including charter

29  schools.--Effective January 1, 1998, a member of the Florida

30  Retirement System may purchase creditable service for periods

31

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  1  of certain public or nonpublic, nonsectarian employment

  2  performed in this state, as provided in this section.

  3         (2)  LIMITATIONS AND CONDITIONS.--

  4         (a)  A member is not eligible to receive credit for

  5  in-state service under this section until he or she has become

  6  vested completed 10 years of creditable service under the

  7  Florida Retirement System, excluding service purchased under

  8  this section and out-of-state service claimed and purchased

  9  under s. 121.1115.

10         Section 9.  Section 121.121, Florida Statutes, is

11  amended to read:

12         121.121  Future service to include authorized leaves of

13  absence.--Future service of any member as defined in s.

14  121.021(21) shall also include up to 2 work years of

15  creditable service for authorized leaves of absence if:

16         (1)  The member has become vested completed a minimum

17  of 10 years of creditable service, excluding periods of leave

18  of absence;

19         (2)  The leave of absence is authorized in writing by

20  the employer of the member and approved by the administrator;

21         (3)  The member returns to active employment performing

22  service with a Florida Retirement System employer in a

23  regularly established position immediately upon termination of

24  the leave of absence and remains on the employer's payroll for

25  1 calendar month, except that a member who retires on

26  disability while on a medical leave of absence shall not be

27  required to return to employment; and

28         (4)  The member makes the required contributions for

29  service credit during the leave of absence, which shall be 8

30  percent until January 1, 1975, and 9 percent thereafter of his

31  or her rate of monthly compensation in effect immediately

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    Florida Senate - 1998                                  SB 2044
    30-556D-98




  1  prior to the commencement of such leave for each month of such

  2  period, plus 4 percent interest until July 1, 1975, and 6.5

  3  percent interest thereafter on such contributions, compounded

  4  annually each June 30 from the due date of the contribution to

  5  date of payment. Effective July 1, 1980, any leave of absence

  6  purchased pursuant to this section shall be at the

  7  contribution rates specified in s. 121.071 in effect at the

  8  time the leave is granted for the class of membership from

  9  which the leave of absence was granted; however, any member

10  who purchased leave-of-absence credit prior to July 1, 1980,

11  for a leave of absence from a position in a class other than

12  the regular membership class, may pay the appropriate

13  additional contributions plus compound interest thereon and

14  receive creditable service for such leave of absence in the

15  membership class from which the member was granted the leave

16  of absence.

17         Section 10.  Effective January 1, 1999, to fund the

18  provisions of this act, the contribution rates applicable to

19  the Regular Class of the Florida Retirement System shall be

20  increased by 0.48 percentage points, the contribution rates

21  applicable to regular members of the Special Risk Class shall

22  be increased by 0.96 percentage points, the contribution rates

23  applicable to administrative members of the Special Risk Class

24  shall be increased by 0.47 percentage points, the contribution

25  rates applicable to judicial members of the Elected State and

26  County Officers' Class shall be increased by 0.45 percent, the

27  contribution rates applicable to legislative, attorney, and

28  Cabinet members of the Elected State and County Officers'

29  Class shall be increased by 0.65 percentage points, the

30  contribution rates applicable to county and certain municipal

31  and special-district members of the Elected State and County

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    Florida Senate - 1998                                  SB 2044
    30-556D-98




  1  Officers' Class shall be increased by 0.30 percentage points,

  2  and the contribution rates applicable to members of the Senior

  3  Management Service Class of the Florida Retirement System

  4  shall be increased by 0.19 percentage points.  These increases

  5  shall be in addition to all other changes to such contribution

  6  rates which may be enacted into law to take effect on that

  7  date.

  8         Section 11.  The Legislature finds that a proper and

  9  legitimate state purpose is served when employees and retirees

10  of the state and of its political subdivisions, and the

11  dependents, survivors, and beneficiaries of such employees and

12  retirees, are extended the basic protections afforded by

13  governmental retirement systems that provide fair and adequate

14  benefits and that are managed, administered, and funded in an

15  actuarially sound manner, as required by section 14, Article X

16  of the State Constitution and part VII of chapter 112 of the

17  Florida Statutes.  Therefore, the Legislature hereby

18  determines and declares that this act fulfills an important

19  state interest.

20         Section 12.  This act shall take effect January 1,

21  1999.

22

23            *****************************************

24                          SENATE SUMMARY

25    Revises the definitions of the terms "normal retirement
      date" and "early retirement date" under the Florida
26    Retirement System and defines the term "vested."
      Effective January 1, 1999, the normal retirement date
27    will be reached after 5 years of service and attainment
      of the age requirement for the respective class under the
28    system. Increases the rate of employer contributions in
      order to finance these changes.
29

30

31

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