House Bill 3491
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Florida House of Representatives - 1998 HB 3491
By Representative Boyd
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 ss. 121.052, 121.055, and
10 121.071, F.S.; changing contribution rates for
11 specified classes and subclasses of the system
12 and for the retiree health insurance subsidy;
13 amending s. 121.091, F.S.; providing for
14 benefit computations using dual retirement ages
15 for service in the Senior Management Service
16 Class and the Elected State and County
17 Officer's Class; providing for nullification of
18 a joint annuitant designation in the event of
19 dissolution of marriage; providing for purchase
20 of additional service credit using a deceased
21 member's accumulated leave, out-of-state
22 service, or in-state service under certain
23 circumstances; specifying that a member's
24 spouse at the time of death shall be the
25 member's beneficiary under certain
26 circumstances; amending s. 121.122, F.S.;
27 allowing members with renewed membership in the
28 Senior Management Service Class to purchase
29 additional retirement credit for certain
30 postretirement service; amending s. 121.40,
31 F.S.; changing contribution rates for the
1
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1 supplemental retirement plan for the Institute
2 of Food and Agricultural Sciences at the
3 University of Florida; repealing ss. 121.0505
4 and 121.0516, F.S.; relating to duplicative
5 contribution rates; directing the Division of
6 Statutory Revision to make described
7 adjustments to the statutes with respect to
8 contribution rates; providing a finding of
9 important state interest; providing an
10 effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (d) is added to subsection (3),
15 paragraph (e) is added to subsection (8), and subsection (9)
16 of section 112.363, Florida Statutes, is amended, to read:
17 112.363 Retiree health insurance subsidy.--
18 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
19 (d) Beginning January 1, 1999, each eligible retiree
20 or a beneficiary who is a spouse or financial dependent shall
21 receive a monthly retiree health insurance subsidy payment
22 equal to the number of years of creditable service, as defined
23 in s. 121.021(17), completed at the time of retirement
24 multiplied by $4; however, no retiree may receive a subsidy
25 payment of more than $120 or less than $40.
26 (8) CONTRIBUTIONS.--For purposes of funding the
27 insurance subsidy provided by this section:
28 (e) Beginning July 1, 1998, the employer of each
29 member of a state-administered retirement plan shall
30 contribute 0.80 percent of gross compensation each pay period.
31
2
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1 Such contributions shall be submitted to the Division of
2 Retirement and deposited in the Retiree Health Insurance
3 Subsidy Trust Fund.
4 (9) BENEFITS.--Subsidy payments shall be payable under
5 the retiree health insurance subsidy program only to
6 participants in the program or their beneficiaries. If the
7 division receives certification of coverage for health
8 insurance for the retiree or beneficiary within 6 months after
9 retirement benefits commence, the Retiree Health Insurance
10 Subsidy shall be paid retroactive to the effective retirement
11 date. However, if the division receives the certification of
12 insurance coverage 6 or more months after retirement benefits
13 commence, the member will be eligible to receive retroactive
14 payments for a maximum of 6 months only. Such subsidy payments
15 shall not be subject to assignment, execution, or attachment
16 or to any legal process whatsoever.
17 Section 2. Paragraph (b) of subsection (2) of section
18 121.011, Florida Statutes, is amended to read:
19 121.011 Florida Retirement System.--
20 (2) CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--
21 (b) The chapters or retirement system laws named in
22 paragraph (a) are hereby consolidated as separate instruments
23 appended to the "Florida Retirement System Act" established by
24 this chapter, and the administration of said chapters or
25 retirement systems shall be consolidated with the
26 administration of the Florida Retirement System established by
27 this chapter and the Florida Retirement System shall assume
28 all liabilities related to the payment of benefits to members
29 and their beneficiaries.
30 Section 3. Paragraphs (a) and (c) of subsection (7) of
31 section 121.052, Florida Statutes, are amended to read:
3
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1 121.052 Membership class of elected state and county
2 officers.--
3 (7) CONTRIBUTIONS.--
4 (a) The following table states the required retirement
5 contribution rates for members of the Elected State and County
6 Officers' Class and their employers in terms of a percentage
7 of the member's gross compensation. A change in a contribution
8 rate is effective with the first salary paid on or after the
9 beginning date of the change. Contributions shall be made or
10 deducted as may be appropriate for each pay period and are in
11 addition to the contributions required for social security and
12 the Retiree Health Insurance Subsidy Trust Fund.
13
14 Dates of Contribution
15 Rate Changes Members Employers
16
17 July 1, 1972, through September 30, 1977
18 Legislators 8% 8%
19 All Other Members 8% 8%
20
21 October 1, 1977, through September 30, 1978
22 Legislators 8% 8%
23 All Other Members 4% 12%
24
25 October 1, 1978, through September 30, 1979
26 Legislators 8% 10.57%
27 All Other Members 4% 16.78%
28
29 October 1, 1979, through September 30, 1981
30 Legislators 8% 10.57%
31 Governor, Lt. Governor, Cabinet
4
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1 Officers 4% 16.78%
2 All Other Members 0% 20.78%
3
4 July 1, 1981, through June 30, 1984
5 County Elected Officers 0% 19.30%
6
7 July 1, 1984, through September 30, 1984
8 County Elected Officers 0% 20.25%
9
10 October 1, 1981, through September 30, 1984
11 Legislators 0% 19.30%
12 Governor, Lt. Governor, Cabinet
13 Officers 0% 21.03%
14 State Attorneys, Public Defenders 0% 20.95%
15 Justices, Judges 0% 22.55%
16
17 October 1, 1984, through September 30, 1986
18 Legislators 0% 10.98%
19 Governor, Lt. Governor, Cabinet
20 Officers 0% 10.98%
21 State Attorneys, Public Defenders 0% 10.98%
22 Justices, Judges 0% 21.79%
23 County Elected Officers 0% 16.97%
24
25 October 1, 1986, through December 31, 1988
26 Legislators 0% 11.50%
27 Governor, Lt. Governor, Cabinet
28 Officers 0% 11.50%
29 State Attorneys, Public Defenders 0% 11.50%
30 Justices, Judges 0% 20.94%
31 County Elected Officers 0% 17.19%
5
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1
2 January 1, 1989, through December 31, 1989
3 Legislators 0% 13.70%
4 Governor, Lt. Governor, Cabinet
5 Officers 0% 13.70%
6 State Attorneys, Public Defenders 0% 13.70%
7 Justices, Judges 0% 22.58%
8 County Elected Officers 0% 18.44%
9
10 January 1, 1990, through December 31, 1990
11 Legislators 0% 15.91%
12 Governor, Lt. Governor, Cabinet
13 Officers 0% 15.91%
14 State Attorneys, Public Defenders 0% 15.91%
15 Justices, Judges 0% 24.22%
16 County Elected Officers 0% 19.71%
17
18 January 1, 1991, through December 31, 1991
19 Legislators 0% 17.73%
20 Governor, Lt. Governor, Cabinet
21 Officers 0% 17.73%
22 State Attorneys, Public Defenders 0% 17.73%
23 Justices, Judges 0% 26.63%
24 County Elected Officers 0% 23.32%
25
26 January 1, 1992, through December 31, 1992
27 Legislators 0% 19.94%
28 Governor, Lt. Governor, Cabinet
29 Officers 0% 19.94%
30 State Attorneys, Public Defenders 0% 19.94%
31 Justices, Judges 0% 28.27%
6
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1 County Elected Officers 0% 24.59%
2
3 January 1, 1993, through December 31, 1993
4 Legislators 0% 22.14%
5 Governor, Lt. Governor, Cabinet
6 Officers 0% 22.14%
7 State Attorneys, Public Defenders 0% 22.14%
8 Justices, Judges 0% 29.91%
9 County Elected Officers 0% 25.84%
10
11 January 1, 1994, through December 31, 1994
12 Legislators 0% 22.65%
13 Governor, Lt. Governor, Cabinet
14 Officers 0% 22.65%
15 State Attorneys, Public Defenders 0% 22.65%
16 Justices, Judges 0% 30.52%
17 County Elected Officers 0% 26.07%
18
19 January 1, 1995, through December 31, 1995
20 Legislators 0% 22.80%
21 Governor, Lt. Governor, Cabinet
22 Officers 0% 22.80%
23 State Attorneys, Public Defenders 0% 22.80%
24 Justices, Judges 0% 30.21%
25 County Elected Officers 0% 27.48%
26
27 January 1, 1996, through June 30, 1996
28 Legislators 0% 22.90%
29 Governor, Lt. Governor, Cabinet
30 Officers 0% 22.90%
31 State Attorneys, Public Defenders 0% 22.90%
7
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1 Justices, Judges 0% 30.15%
2 County Elected Officers 0% 27.54%
3
4 Effective July 1, 1996 through June 30, 1998
5 Legislators 0% 23.07%
6 Governor, Lt. Governor, Cabinet
7 Officers 0% 23.07%
8 State Attorneys, Public Defenders 0% 23.07%
9 Justices, Judges 0% 29.55%
10 County Elected Officers 0% 27.33%
11
12 Effective July 1, 1998
13 Legislators 0% 22.33%
14 Governor, Lt. Governor, Cabinet Officers 0% 22.33%
15 State Attorneys, Public Defenders 0% 22.33%
16 Justices, Judges 0% 27.21%
17 County elected officers 0% 26.99%
18
19 (c) The following table states the required employer
20 contribution on behalf of each member of the Elected State and
21 County Officers' Class in terms of a percentage of the
22 member's gross compensation. Such contribution constitutes the
23 entire health insurance subsidy contribution with respect to
24 the member. A change in the contribution rate is effective
25 with the first salary paid on or after the beginning date of
26 the change. The retiree health insurance subsidy contribution
27 rate is as follows:
28
29 Dates of Contribution Contribution
30 Rate Changes Rate
31
8
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1 October 1, 1987, through December 31, 1988 0.24%
2 January 1, 1989, through December 31, 1993 0.48%
3 January 1, 1994, through December 31, 1994 0.56%
4 Effective January 1, 1995 through June 30,
5 1998 0.66%
6 Effective July 1, 1998 0.80%
7
8 Such contributions shall be deposited by the administrator in
9 the Retiree Health Insurance Subsidy Trust Fund.
10 Section 4. Paragraphs (a) and (c) of subsection (3) of
11 section 121.055, Florida Statutes, are amended to read:
12 121.055 Senior Management Service Class.--There is
13 hereby established a separate class of membership within the
14 Florida Retirement System to be known as the "Senior
15 Management Service Class," which shall become effective
16 February 1, 1987.
17 (3)(a) The following table states the required
18 retirement contribution rates for members of the Senior
19 Management Service Class and their employers in terms of a
20 percentage of the member's gross compensation. A change in
21 the contribution rate is effective with the first salary paid
22 on or after the beginning date of the change. Contributions
23 shall be made for each pay period and are in addition to the
24 contributions required for social security and the Retiree
25 Health Insurance Subsidy Trust Fund.
26
27 Dates of Contribution
28 Rate Changes Members Employers
29
30 February 1, 1987, through
31 December 31, 1988 0% 13.88%
9
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1 January 1, 1989, through
2 December 31, 1989 0% 14.95%
3 January 1, 1990, through
4 December 31, 1990 0% 16.04%
5 January 1, 1991, through
6 December 31, 1991 0% 18.39%
7 January 1, 1992, through
8 December 31, 1992 0% 19.48%
9 January 1, 1993, through
10 December 31, 1993 0% 20.55%
11 January 1, 1994, through
12 December 31, 1994 0% 23.07%
13 January 1, 1995, through
14 December 31, 1995 0% 23.88%
15 January 1, 1996, through
16 June 30, 1996 0% 24.14%
17 Effective July 1, 1996 through June 30,
18 1998 0% 21.58%
19 Effective July 1, 1998 0% 23.10%
20
21 (c) The following table states the required employer
22 contribution on behalf of each member of the Senior Management
23 Service Class in terms of a percentage of the member's gross
24 compensation. Such contribution constitutes the entire health
25 insurance subsidy contribution with respect to the member. A
26 change in the contribution rate is effective with the first
27 salary paid on or after the beginning date of the change. The
28 retiree health insurance subsidy contribution rate is as
29 follows:
30
31
10
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1 Dates of Contribution Contribution
2 Rate Changes Rate
3
4 October 1, 1987, through December 31, 1988 0.24%
5 January 1, 1989, through December 31, 1993 0.48%
6 January 1, 1994, through December 31, 1994 0.56%
7 Effective January 1, 1995 through June 30,
8 1998 0.66%
9 Effective July 1, 1998 0.80%
10
11 Such contributions shall be deposited by the administrator in
12 the Retiree Health Insurance Subsidy Trust Fund.
13 Section 5. Subsections (1) and (4) of section 121.071,
14 Florida Statutes, are amended to read:
15 121.071 Contributions.--Contributions to the system
16 shall be made as follows:
17 (1) The following tables state the required retirement
18 contribution rates for members of the Regular Class, Special
19 Risk Class, or Special Risk Administrative Support Class and
20 their employers in terms of a percentage of the member's gross
21 compensation. A change in a contribution rate is effective
22 with the first salary paid on or after the beginning date of
23 the change. Contributions shall be made or deducted as may be
24 appropriate for each pay period and are in addition to the
25 contributions required for social security and the Retiree
26 Health Insurance Subsidy Trust Fund.
27 (a) Retirement contributions for regular members are
28 as follows:
29
30 Dates of Contribution
31 Rate Changes Members Employers
11
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1
2 December 1, 1970, through December
3 31, 1974, for state agencies, state
4 universities, community colleges,
5 and district school boards 4% 4%
6
7 December 1, 1970, through September
8 30, 1975, for all other local
9 government agencies 4% 4%
10
11 January 1, 1975, through September
12 30, 1978, for state agencies and
13 state universities 0% 9%
14
15 January 1, 1975, through July 31,
16 1978, for community colleges and
17 district school boards 0% 9%
18
19 October 1, 1975, through September
20 30, 1978, for all other local
21 government agencies 0% 9%
22
23 August 1, 1978, through September 30,
24 1981, for community colleges and
25 district school boards 0% 9.1%
26
27 October 1, 1978, through September
28 30, 1981, for all other agencies 0% 9.1%
29
30 October 1, 1981, through
31 September 30, 1984 0% 10.93%
12
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1 October 1, 1984, through
2 September 30, 1986 0% 12.24%
3 October 1, 1986, through
4 December 31, 1988 0% 13.14%
5 January 1, 1989, through
6 December 31, 1989 0% 13.90%
7 January 1, 1990, through
8 December 31, 1990 0% 14.66%
9 January 1, 1991, through
10 December 31, 1991 0% 15.72%
11 January 1, 1992, through
12 December 31, 1992 0% 16.51%
13 January 1, 1993, through
14 December 31, 1993 0% 17.27%
15 January 1, 1994, through
16 December 31, 1994 0% 17.10%
17 January 1, 1995, through
18 December 31, 1995 0% 16.91%
19 January 1, 1996, through
20 June 30, 1996 0% 17.00%
21 Effective July 1, 1996 through June 30,
22 1998 0% 16.77%
23 Effective July 1, 1998 0% 15.51%
24
25 (b) Retirement contributions for special risk members
26 are as follows:
27
28 Dates of Contribution
29 Rate Changes Members Employers
30
31 December 1, 1970, through
13
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1 September 30, 1974 6% 6%
2
3 October 1, 1974, through December 31,
4 1974, for state agencies, state
5 universities, community colleges,
6 and district school boards 8% 8%
7
8 October 1, 1974, through September
9 30, 1975, for all other local
10 government agencies 8% 8%
11
12 January 1, 1975, through September
13 30, 1978, for state agencies, state
14 universities, community colleges,
15 and district school boards 0% 13%
16
17 October 1, 1975, through September
18 30, 1978, for other local
19 government agencies 0% 13%
20
21 October 1, 1978, through
22 September 30, 1981 0% 13.95%
23 October 1, 1981, through
24 September 30, 1984 0% 13.91%
25 October 1, 1984, through
26 September 30, 1986 0% 14.67%
27 October 1, 1986, through
28 December 31, 1988 0% 15.11%
29 January 1, 1989, through
30 December 31, 1989 0% 17.50%
31 January 1, 1990, through
14
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1 December 31, 1990 0% 19.90%
2 January 1, 1991, through
3 December 31, 1991 0% 25.52%
4 January 1, 1992, through
5 December 31, 1992 0% 26.35%
6 January 1, 1993, through
7 December 31, 1993 0% 27.14%
8 January 1, 1994, through
9 December 31, 1994 0% 27.03%
10 January 1, 1995, through
11 December 31, 1995 0% 26.83%
12 January 1, 1996, through
13 June 30, 1996 0% 26.84%
14 Effective July 1, 1996 through June 30,
15 1998 0% 26.44%
16 Effective July 1, 1998 0% 24.38%
17
18 (c) Retirement contributions for special risk
19 administrative support members are as follows:
20
21 Dates of Contribution
22 Rate Changes Members Employers
23
24 July 1, 1982, through
25 September 30, 1984 0% 11.14%
26 October 1, 1984, through
27 September 30, 1986 0% 13.09%
28 October 1, 1986, through
29 December 31, 1988 0% 15.44%
30 January 1, 1989, through
31 December 31, 1989 0% 14.76%
15
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1 January 1, 1990, through
2 December 31, 1990 0% 14.09%
3 January 1, 1991, through
4 December 31, 1991 0% 20.16%
5 January 1, 1992, through
6 December 31, 1992 0% 19.51%
7 January 1, 1993, through
8 December 31, 1993 0% 18.83%
9 January 1, 1994, through
10 December 31, 1994 0% 18.59%
11 January 1, 1995, through
12 December 31, 1995 0% 17.81%
13 January 1, 1996, through
14 June 30, 1996 0% 17.80%
15 Effective July 1, 1996 through June 30,
16 1998 0% 17.20%
17 Effective July 1, 1998 0% 14.64%
18
19 (4) The following table states the required employer
20 contribution on behalf of each member of the Regular Class,
21 Special Risk Class, or Special Risk Administrative Support
22 Class in terms of a percentage of the member's gross
23 compensation. Such contribution constitutes the entire health
24 insurance subsidy contribution with respect to the member. A
25 change in the contribution rate is effective with the first
26 salary paid on or after the beginning date of the change. The
27 retiree health insurance subsidy contribution rate is as
28 follows:
29
30 Dates of Contribution Contribution
31 Rate Changes Rate
16
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1
2 October 1, 1987, through December 31, 1988 0.24%
3 January 1, 1989, through December 31, 1993 0.48%
4 January 1, 1994, through December 31, 1994 0.56%
5 Effective January 1, 1995 through June 30.
6 1998 0.66%
7 Effective July 1, 1998 0.80%
8
9 Such contributions shall be deposited by the administrator in
10 the Retiree Health Insurance Subsidy Trust Fund.
11 Section 6. Subsection (2), paragraph (d) of subsection
12 (6), paragraph (a) of subsection (7), and subsection (8) of
13 section 121.091, Florida Statutes, are amended, paragraphs (f)
14 and (g) of subsection (7) of said section are redesignated as
15 paragraphs (g) and (h), respectively, and a new paragraph (f)
16 is added to said subsection, to read:
17 121.091 Benefits payable under the system.--No
18 benefits shall be paid under this section unless the member
19 has terminated employment as provided in s. 121.021(39) and a
20 proper application has been filed in the manner prescribed by
21 the division.
22 (2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT
23 AGES.--In the event a member accumulates retirement benefits
24 to commence at different normal retirement ages by virtue of
25 having performed duties for an employer which would entitle
26 him or her to benefits as both a regular member and special
27 risk member of the Special Risk Class and a member of either
28 the Regular Class, Senior Management Service Class, or Elected
29 State and County Officers' Class, the amount of benefits
30 payable shall be computed separately with respect to each such
31
17
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1 age and the sum of such computed amounts shall be paid as
2 provided in this section.
3 (6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND
4 DISABILITY RETIREMENT BENEFITS.--
5 (d) A member who elects the option in subparagraph
6 (a)3. or subparagraph (a)4. shall, on a form provided for that
7 purpose, designate a joint annuitant to receive the benefits
8 which continue to be payable upon the death of the member.
9 After benefits have commenced under the option in subparagraph
10 (a)3. or subparagraph (a)4., the following shall apply:
11 1. A retired member may change his or her designation
12 of a joint annuitant only twice. If such a retired member
13 desires to change his or her designation of a joint annuitant,
14 he or she shall file with the division a notarized "change of
15 joint annuitant" form and shall notify the former joint
16 annuitant in writing of such change. Upon receipt of a
17 completed change of joint annuitant form, the division shall
18 adjust the member's monthly benefit by the application of
19 actuarial tables and calculations developed to ensure that the
20 benefit paid is the actuarial equivalent of the present value
21 of the member's current benefit. The consent of a retired
22 member's first designated joint annuitant to any such change
23 shall not be required.
24 2. In the event of the dissolution of marriage of a
25 retired member and a joint annuitant, such member may make an
26 election to nullify the joint annuitant designation of the
27 former spouse, unless there is an existing qualified domestic
28 relations order preventing such action. The member shall file
29 with the division a written, notarized nullification which
30 shall be effective on the first day of the next month
31 following receipt by the division. Benefits shall be paid as
18
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1 if the former spouse predeceased the member. A member who
2 makes such an election may not reverse the nullification but
3 may designate a new joint annuitant in accordance with
4 subparagraph 1.
5 (7) DEATH BENEFITS.--
6 (a) If the employment of a member is terminated by
7 reason of his or her death prior to the completion of 10 years
8 of creditable service, except as provided in paragraph (f),
9 there shall be payable to his or her designated beneficiary
10 the member's accumulated contributions.
11 (f) Notwithstanding any other provisions in this
12 chapter to the contrary and upon application to the
13 administrator, the surviving spouse, or other eligible joint
14 annuitant of a member, whose employment is terminated by death
15 within 1 year of such member satisfying the service
16 requirements for vesting and retirement eligibility shall be
17 permitted to purchase only the additional service credit
18 necessary to vest and qualify for retirement benefits by one
19 of the following methods:
20 1. Such spouse or joint annuitant may use the deceased
21 member's accumulated hours of annual, sick, and compensatory
22 leave to purchase additional creditable service, on an hour by
23 hour basis, provided that such deceased member's accumulated
24 leave is sufficient to cover the additional months required.
25 For each month of service credit needed prior to the final
26 month, credit for the total number of work hours in that month
27 must be purchased, using an equal number of the deceased
28 member's accumulated leave hours. Service credit required for
29 the final month in which the deceased member would have become
30 vested shall be awarded upon the purchase of 1 hour of credit.
31 The spouse or joint annuitant shall pay the contribution rate
19
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1 in effect at the time of purchase of the deceased member's
2 class of membership, multiplied by such member's monthly
3 salary at the time of death. The accumulated leave payment
4 used in the average final compensation shall not include that
5 portion of the payment that represents any leave hours used in
6 the purchase of such creditable service.
7 2. Such spouse or joint annuitant may purchase
8 additional months of creditable service, up to a maximum of 1
9 year, for any periods of out-of-state service as provided in
10 s. 121.1115, or in-state service as provided in s. 121.1122,
11 that the deceased member would have been eligible to purchase
12 prior to his or her death.
13
14 Service purchased under this paragraph shall be added to the
15 creditable service of the member and used to vest for
16 retirement eligibility, and shall be used in the calculation
17 of any benefits which may be payable to the surviving spouse
18 or eligible joint annuitant. Any benefits paid in accordance
19 with this paragraph shall only be made prospectively.
20 (8) DESIGNATION OF BENEFICIARIES.--Each member may, on
21 a form provided for that purpose, signed and filed with the
22 division, designate a choice of one or more persons, named
23 sequentially or jointly, as his or her beneficiary who shall
24 receive the benefits, if any, which may be payable in the
25 event of the member's death pursuant to the provisions of this
26 chapter. If no beneficiary is named in the manner provided
27 above, or if no beneficiary designated by the member survives
28 the member, the beneficiary shall be the spouse of the
29 deceased, if living. If the member's spouse is not alive at
30 his or her death, the beneficiary shall be the living children
31 of the member. If no children survive, the beneficiary shall
20
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1 be the member's father or mother, if living; otherwise, the
2 beneficiary shall be the member's estate. The beneficiary
3 most recently designated by a member on a form or letter filed
4 with the division shall be the beneficiary entitled to any
5 benefits payable at the time of the member's death, except
6 benefits shall be paid as provided in paragraph (7)(d) when
7 death occurs in the line of duty. Notwithstanding any other
8 provisions in this subsection to the contrary, for a member
9 who dies prior to his or her effective date of retirement on
10 or after January 1, 1999, the spouse at the time of death
11 shall be the member's beneficiary unless such member
12 designates a different beneficiary as provided herein
13 subsequent to the member's most recent marriage.
14 Section 7. Subsection (3) of section 121.122, Florida
15 Statutes, is amended to read:
16 121.122 Renewed membership in system.--Except as
17 provided in s. 121.053, effective July 1, 1991, any retiree of
18 a state-administered retirement system who is employed in a
19 regularly established position with a covered employer shall
20 be enrolled as a compulsory member of the Regular Class of the
21 Florida Retirement System or, effective July 1, 1997, any
22 retiree of a state-administered retirement system who is
23 employed in a position included in the Senior Management
24 Service Class shall be enrolled as a compulsory member of the
25 Senior Management Service Class of the Florida Retirement
26 System as provided in s. 121.055, and shall be entitled to
27 receive an additional retirement benefit, subject to the
28 following conditions:
29 (3) Such member shall be entitled to purchase
30 additional retirement credit in the Regular Class or the
31 Senior Management Service Class, as applicable, for any
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1 postretirement service performed in a regularly established
2 position as follows:
3 (a) For regular class service prior to July 1, 1991,
4 by paying the Regular Class applicable employee and employer
5 contributions for the period being claimed, plus 4 percent
6 interest compounded annually from first year of service
7 claimed until July 1, 1975, and 6.5 percent interest
8 compounded thereafter, until full payment is made to the
9 Florida Retirement System Trust Fund; or
10 (b) For Senior Management Service Class prior to June
11 1, 1997, as provided in s. 121.055(1)(h).
12
13 The contribution for postretirement service between July 1,
14 1985, and July 1, 1991, for which the reemployed retiree
15 contribution was paid, shall be the difference between such
16 contribution and the total applicable contribution for the
17 period being claimed, plus interest. The employer of such
18 member may pay the applicable employer contribution in lieu of
19 the member.
20 Section 8. Paragraph (b) of subsection (12) of section
21 121.40, Florida Statutes, is amended to read:
22 121.40 Cooperative extension personnel at the
23 Institute of Food and Agricultural Sciences; supplemental
24 retirement benefits.--
25 (12) CONTRIBUTIONS.--
26 (b) The monthly contributions required to be paid
27 pursuant to paragraph (a) on the gross monthly salaries, from
28 all sources with respect to such employment, paid to those
29 employees of the institute who hold both state and federal
30 appointments and who participate in the federal Civil Service
31 Retirement System shall be as follows:
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1
2 Dates of Contribution Percentage
3 Rate Changes Due
4
5 July 1, 1985, through December 31, 1988 6.68%
6 January 1, 1989, through December 31, 1993 6.35%
7 January 1, 1994, through December 31, 1994 6.69%
8 January 1, 1995, through June 30, 1996 6.82%
9 Effective July 1, 1996 through June 30,
10 1998 5.64%
11 Effective July 1, 1998 7.17%
12
13 Section 9. Sections 121.0505 and 121.0516, Florida
14 Statutes, are repealed.
15 Section 10. (1) The changes to the retirement
16 contribution rates for the Florida Retirement System included
17 in this act are the result of the 1997 Actuarial Valuation of
18 the Florida Retirement System as recommended by the consulting
19 actuaries. These changes shall remain in effect until such
20 rates are further amended, or until such rates are adjusted as
21 provided in subsection (2).
22 (2) The rate adjustments set forth in this act are in
23 addition to all other changes to such contribution rates which
24 are separately enacted into law and applicable on July 1,
25 1998. With respect to such other changes, the Division of
26 Statutory Revision of the Joint Legislative Management
27 Committee is directed to edit the statutes as necessary to
28 adjust the contribution rate percentages listed under ss.
29 121.052(7)(a), 121.055(3)(a), and 121.071(1), Florida
30 Statutes, as appropriate. Pursuant to s. 11.242(5)(i),
31 Florida Statutes, the provisions of this section shall be
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1 omitted from publication in the Florida Statutes or any
2 revision or supplement thereof.
3 Section 11. The Legislature finds that a proper and
4 legitimate state purpose is served when employees and retirees
5 of the state and its political subdivisions, and the
6 dependents, survivors, and beneficiaries of such employees and
7 retirees, are extended the basic protections afforded by
8 governmental retirement systems that provide fair and adequate
9 benefits and are managed, administered, and funded in an
10 actuarially sound manner, as required by s. 14, Art. X of the
11 State Constitution and part VII of chapter 112, Florida
12 Statutes. Therefore, the Legislature hereby determines and
13 declares that the provisions of this act fulfill an important
14 state interest.
15 Section 12. This act shall take effect upon becoming a
16 law.
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2 HOUSE SUMMARY
3
Revises various provisions in the Florida Retirement
4 System to:
1. Increase the retiree health insurance subsidy
5 payment and the contribution rate and to provide for
retroactive payments under described circumstances.
6 2. Provide clarifying language with respect to
benefits payable under existing systems.
7 3. Revise contribution rates for described classes
and subclasses of the system and for the retiree health
8 insurance subsidy.
4. Provide for benefit computation using dual
9 normal retirement ages for service in the Senior
Management Service Class and the Elected State and County
10 Officer's Class.
5. Provide for nullification of a joint annuitant
11 designation in the event of dissolution of marriage and
to provide for purchase of additional service credit
12 using a deceased member's accumulated leave, out-of-state
service, or in-state service under described
13 circumstances.
6. Specify that a member's spouse at the time of
14 death shall be the member's beneficiary under described
circumstances.
15 7. Permit members with renewed membership in the
Senior Management Service Class to purchase additional
16 retirement credit for described postretirement service.
8. Revise the contribution rates for the
17 supplemental retirement plan for the Institute of Food
and Agricultural Sciences at the University of Florida.
18 9. Repeal language which contains duplicative
contribution rates.
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See bill for details.
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