House Bill 3491c2

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    Florida House of Representatives - 1998          CS/CS/HB 3491

        By the Committees on Finance & Taxation, Governmental
    Operations and Representatives Boyd, Crady, Stafford,
    Turnbull, Bloom, Lynn, Smith, Albright and Posey




  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 ss. 121.052,

11         121.055, and 121.071, F.S.; modifying the

12         statutory limit on the number of nonelective

13         full-time positions that may be designated by a

14         local agency employer for inclusion in the

15         Senior Management Service Class; changing

16         contribution rates for specified classes and

17         subclasses of the system and for the retiree

18         health insurance subsidy; amending s. 121.091,

19         F.S.; providing for benefit computations using

20         dual retirement ages for service in the Senior

21         Management Service Class and the Elected

22         Officer's Class; providing for nullification of

23         a joint annuitant designation in the event of

24         dissolution of marriage; providing for purchase

25         of additional service credit using a deceased

26         member's accumulated leave, out-of-state

27         service, or in-state service under certain

28         circumstances; specifying that a member's

29         spouse at the time of death shall be the

30         member's beneficiary under certain

31         circumstances; providing a directive to statute

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  1         editors; amending s. 121.1122, F.S.; deleting

  2         reference to nonsectarian schools and colleges;

  3         amending s. 121.121, F.S.; providing for

  4         eligibility to purchase retirement credit for

  5         certain leaves of absence; amending s. 121.122,

  6         F.S.; allowing members with renewed membership

  7         in the Senior Management Service Class to

  8         purchase additional retirement credit for

  9         certain postretirement service; amending s.

10         121.30, F.S.; conforming to the Internal

11         Revenue Code; creating s. 121.133, F.S.;

12         providing intent; requiring the Comptroller to

13         cancel any benefit warrant issued from the

14         Florida Retirement System Trust Fund, or from

15         certain other pension trust funds, if such

16         warrants are not presented within a specified

17         timeframe; providing that such funds shall be

18         transferred and recredited to specified trust

19         funds; providing for issuance of replacement

20         warrants; amending s. 121.40, F.S.; changing

21         contribution rates for the supplemental

22         retirement plan for the Institute of Food and

23         Agricultural Sciences at the University of

24         Florida; repealing ss. 121.0505 and 121.0516,

25         F.S.; relating to duplicative contribution

26         rates; directing the Division of Statutory

27         Revision to make described adjustments to the

28         statutes with respect to contribution rates;

29         providing a finding of important state

30         interest; providing effective dates.

31

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

  2

  3         Section 1.  Paragraph (d) is added to subsection (3),

  4  paragraph (e) is added to subsection (8), and subsection (9)

  5  of section 112.363, Florida Statutes, is amended, to read:

  6         112.363  Retiree health insurance subsidy.--

  7         (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--

  8         (d)  Beginning January 1, 1999, each eligible retiree

  9  or, if the retiree is deceased, his or her beneficiary who is

10  receiving a monthly benefit from such retiree's account and

11  who is a spouse, or a person who meets the definition of joint

12  annuitant in s. 121.021(28), shall receive a monthly retiree

13  health insurance subsidy payment equal to the number of years

14  of creditable service, as defined in s. 121.021(17), completed

15  at the time of retirement multiplied by $4; however, no

16  eligible retiree or such beneficiary may receive a subsidy

17  payment of more than $120 or less than $40.  If there are

18  multiple beneficiaries, the total payment must not be greater

19  than the payment to which the retiree was entitled.

20         (8)  CONTRIBUTIONS.--For purposes of funding the

21  insurance subsidy provided by this section:

22         (e)  Beginning July 1, 1998, the employer of each

23  member of a state-administered retirement plan shall

24  contribute 0.80 percent of gross compensation each pay period.

25

26  Such contributions shall be submitted to the Division of

27  Retirement and deposited in the Retiree Health Insurance

28  Subsidy Trust Fund.

29         (9)  BENEFITS.--Subsidy payments shall be payable under

30  the retiree health insurance subsidy program only to

31  participants in the program or their beneficiaries, beginning

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  1  with the month the division receives certification of coverage

  2  for health insurance for the eligible retiree or beneficiary.

  3  If the division receives such certification at any time during

  4  the 6 months after retirement benefits commence, the retiree

  5  health insurance subsidy shall be paid retroactive to the

  6  effective retirement date. If, however, the division receives

  7  such certification 7 or more months after commencement of

  8  benefits, the retroactive retiree health insurance subsidy

  9  payment will cover a maximum of 6 months. Such subsidy

10  payments shall not be subject to assignment, execution, or

11  attachment or to any legal process whatsoever.

12         Section 2.  Paragraph (b) of subsection (2) of section

13  121.011, Florida Statutes, is amended to read:

14         121.011  Florida Retirement System.--

15         (2)  CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--

16         (b)  The chapters or retirement system laws named in

17  paragraph (a) are hereby consolidated as separate instruments

18  appended to the "Florida Retirement System Act" established by

19  this chapter, and the administration of said chapters or

20  retirement systems shall be consolidated with the

21  administration of the Florida Retirement System established by

22  this chapter and the Florida Retirement System shall assume

23  all liabilities related to the payment of benefits to members

24  and their beneficiaries.

25         Section 3.  Effective July 1, 1998, subsections (22),

26  (24), (28), (29), and (30) of section 121.021, Florida

27  Statutes, are amended, and subsections (45) through (54) are

28  added to said section, to read:

29         121.021  Definitions.--The following words and phrases

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

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

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  1         (22)  "Compensation" means the monthly salary paid a

  2  member by his or her employer for work performed arising from

  3  that employment., including

  4         (a)  Compensation shall include:

  5         1.  Overtime payments paid from a salary fund., except

  6  that:

  7         2.  Accumulated annual leave payments.

  8         3.  Payments in addition to the employee's base rate of

  9  pay if all the following apply:

10         a.  The payments are paid according to a formal written

11  policy that applies to all eligible employees equally;

12         b.  The policy provides that payments shall commence no

13  later than the 11th year of employment;

14         c.  The payments are paid for as long as the employee

15  continues his or her employment; and

16         d.  The payments are paid at least annually.

17         4.  Amounts withheld for tax sheltered annuities or

18  deferred compensation programs, or any other type of salary

19  reduction plan authorized under the Internal Revenue Code.

20         5.  Payments made in lieu of a permanent increase in

21  the base rate of pay, whether made annually or in 12 or 26

22  equal payments within a 12-month period, when the member's

23  base pay is at the maximum of his or her pay range. When a

24  portion of a member's annual increase raises his or her pay

25  range and the excess is paid as a lump sum payment, such lump

26  sum payment shall be compensation for retirement purposes.

27         (b)(a)  Under no circumstances shall compensation

28  include:

29         1.  Fees paid professional persons for special or

30  particular services or include salary payments made from a

31  faculty practice plan operated by rule of the Board of Regents

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  1  for eligible clinical faculty at the University of Florida and

  2  the University of South Florida; or.

  3         2. Any bonuses or other payments prohibited from

  4  inclusion in the member's average final compensation and

  5  defined in subsection (47).

  6         (c)(b)  For all purposes under this chapter, the

  7  member's compensation or gross compensation contributed as

  8  employee-elective salary reductions or deferrals to any salary

  9  reduction, deferred compensation, or tax-sheltered annuity

10  program authorized under the Internal Revenue Code shall be

11  deemed to be the compensation or gross compensation which the

12  member would receive if he or she were not participating in

13  such program and shall be treated as compensation for

14  retirement purposes under this chapter. Any public funds

15  otherwise paid by an employer into an employee's salary

16  reduction, deferred compensation, or tax-sheltered annuity

17  program on or after July 1, 1990 (the date as of which all

18  employers were notified in writing by the division to cease

19  making contributions to the System Trust Fund based on such

20  amounts), shall be considered a fringe benefit and shall not

21  be treated as compensation for retirement purposes under this

22  chapter.  However, if an employer was notified in writing by

23  the division to cease making such contributions as of a

24  different date, that employer shall be subject to the

25  requirements of said written notice.

26         (d)(c)  For any person who first becomes a member on or

27  after July 1, 1996, compensation for any plan year shall not

28  include any amounts in excess of the s. 401(a)(17), Internal

29  Revenue Code limitation (as amended by the Omnibus Budget

30  Reconciliation Act of 1993), which limitation of $150,000

31  effective July 1, 1996, shall be adjusted as required by

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  1  federal law for qualified government plans and shall be

  2  further adjusted for changes in the cost of living in the

  3  manner provided by s. 401(a)(17)(B), Internal Revenue Code.

  4  For any person who first became a member prior to July 1,

  5  1996, compensation for all plan years beginning on or after

  6  July 1, 1990, shall not include any amounts in excess of the

  7  compensation limitation (originally $200,000) established by

  8  s. 401(a)(17), Internal Revenue Code prior to the Omnibus

  9  Budget Reconciliation Act of 1993, which limitation shall be

10  adjusted for changes in the cost of living since 1989, in the

11  manner provided by s. 401(a)(17) of the Internal Revenue Code

12  of 1991.  This limitation, which has been part of the Florida

13  Retirement System since plan years beginning on or after July

14  1, 1990, shall be adjusted as required by federal law for

15  qualified government plans.

16         (24)  "Average final compensation" means the average of

17  the 5 highest fiscal years of compensation for creditable

18  service prior to retirement, termination, or death.  For

19  in-line-of-duty disability benefits, if less than 5 years of

20  creditable service have been completed, the term "average

21  final compensation" means the average annual compensation of

22  the total number of years of creditable service.  Each year

23  used in the calculation of average final compensation shall

24  commence on July 1.

25         (a)  The average final compensation shall include:

26         1.  Accumulated annual leave payments, not to exceed

27  500 hours; and

28         2.  All payments defined as compensation in subsection

29  (22).

30         (b)  The average final compensation shall not include:

31

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  1         1.  Compensation paid to professional persons for

  2  special or particular services;

  3         2.  Payments for accumulated sick leave made due to

  4  retirement or termination;

  5         3.  Payments for accumulated annual leave in excess of

  6  500 hours;

  7         4.  Bonuses as defined in subsection (47);

  8         5.  Third party payments made on and after July 1,

  9  1990; or

10         6.  Fringe benefits (for example, automobile allowances

11  or housing allowances). The payment for accumulated sick

12  leave, accumulated annual leave in excess of 500 hours, and

13  bonuses, whether paid as salary or otherwise, shall not be

14  used in the calculation of the average final compensation.

15         (28)  "Joint annuitant" or "dependent beneficiary"

16  means any person designated by the member to receive a

17  retirement benefit upon the member's death who is either:

18         (a)  The spouse of the member;

19         (b)  The member's natural or adopted child who is under

20  age 25, or is physically or mentally disabled and incapable of

21  self-support, regardless of age; or any person other than the

22  spouse for whom the member is the legal guardian, provided

23  that such person is under age 25 and is financially dependent

24  for no less than one-half of his or her support from the

25  member at retirement or at the time of death of such member,

26  whichever occurs first; or

27         (c)  A parent or grandparent, or a person age 25 or

28  older for whom the member is the legal guardian, provided that

29  such parent, grandparent, or other person is financially

30  dependent for no less than one-half of his or her support from

31

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  1  the member at retirement or at time of the death of such

  2  member, whichever occurs first.

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

  4  any month following the date a member attains one of the

  5  following statuses:

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

  7         1.  Completes 10 or more years of creditable service

  8  and attains age 62; or

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

10  regardless of age, which may include a maximum of 4 years of

11  military service credit as, so long as such credit is not

12  claimed under any other system., regardless of age;

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

14         1.  Completes 10 or more years of creditable service in

15  the Special Risk Class and attains age 55;

16         2.  Completes 25 years of creditable service in the

17  Special Risk Class, regardless of age; or

18         3.  Completes 25 years of creditable service and

19  attains age 52, which service may include a maximum of 4 years

20  of military service credit as long as such credit is not

21  claimed under any other system and the remaining years are in

22  the Special Risk Class., and attains age 52; or

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

24  the member:

25         1.  Completes 7 years of creditable service in the

26  Senior Management Service Class and attains age 62; or

27         2.  Completes 30 years of any creditable service,

28  regardless of age, which may include a maximum of 4 years of

29  military service credit as long as such credit is not claimed

30  under any other system; or, regardless of age.

31

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  1         (d)  If an Elected State County Officers' Class member,

  2  the member:

  3         1.  Completes 8 years of creditable service in the

  4  Elected State and County Officers' Class and attains age 62;

  5  or

  6         2.  Completes 30 years of any creditable service,

  7  regardless of age, which may include a maximum of 4 years of

  8  military service credit as long as such credit is not claimed

  9  under any other system.

10

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

12  date."

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

14  the month following the date a member becomes vested completes

15  10 years of creditable service and elects to receive

16  retirement benefits in accordance with this chapter. Such

17  benefits shall be based on average monthly compensation and

18  creditable service as of the member's early retirement date,

19  and the benefit so computed shall be reduced by five-twelfths

20  of 1 percent for each complete month by which the early

21  retirement date precedes his or her normal retirement date as

22  provided in s. 121.091(3).

23         (45)  "Vested" or "vesting" means the guarantee that a

24  member is eligible to receive a future retirement benefit upon

25  completion of the required years of creditable service for the

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

27  terminated covered employment before reaching normal or early

28  retirement date. Being vested does not entitle a member to a

29  disability benefit based on a disability caused by an injury

30  or disease that occurs after termination of covered

31  employment.

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  1         (46)  "Beneficiary" means the joint annuitant or any

  2  other person, organization, estate, or trust fund designated

  3  by the member to receive a retirement benefit, if any, which

  4  may be payable upon the member's death.

  5         (47)  "Bonus" means a payment made in addition to an

  6  employee's regular or overtime salary. A bonus is usually

  7  nonrecurring, does not increase the employee's base rate of

  8  pay, and includes no commitment for payment in a subsequent

  9  year. Such payments are not considered compensation. Effective

10  July 1, 1999, employers may not report such payments to the

11  division as salary, and may not make retirement contributions

12  on such payments.

13         (a)  A payment is a bonus if any of the following

14  circumstances apply:

15         1.  The payment is not made according to a formal

16  written policy that applies to all eligible employees equally.

17         2.  The payment commences later than the 11th year of

18  employment.

19         3.  The payment is not based on permanent eligibility.

20         4.  The payment is made less frequently than annually.

21         (b)  Bonuses shall include, but not be limited to, the

22  following:

23         1.  Exit bonus or severance pay.

24         2.  Longevity payments in conformance with the

25  provisions of paragraph (a).

26         3.  Salary increases granted pursuant to an employee's

27  agreement to retire, including increases paid over several

28  months or years prior to retirement.

29         4.  Payments for accumulated overtime or compensatory

30  time, reserve time, or holiday time worked, if not made within

31  11 months of the month in which the work was performed.

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  1         5.  Quality Instruction Incentives Program (QUIIP)

  2  Payments.

  3         6.  Lump sum payments in recognition of employees'

  4  accomplishments.

  5         (48)  "Accumulated annual leave payment" means any

  6  payment, made either during an employee's employment or at

  7  termination or retirement, for leave accrued during such

  8  employee's career, which leave was intended for, but never

  9  utilized by the employee for, his or her personal use. General

10  leave, which may be used for both sickness and vacation, is

11  considered accumulated annual leave. When leave is initially

12  accrued separately as annual leave or sick leave and is later

13  combined into a consolidated leave account, only the payment

14  for that portion of the account which represents annual leave

15  shall be considered as compensation. If any single lump-sum

16  annual leave payment, made at anytime during a member's

17  employment, exceeds 500 hours, only a maximum of 500 hours of

18  such annual leave payment shall be considered as compensation.

19         (49)  "Accumulated sick leave payment" means leave

20  accrued during an employee's career which was intended for use

21  in the event of sickness, injury, or other health problems of

22  a member or his or her family. General leave which may be used

23  for both sickness and vacation is not considered sick leave.

24  When leave is initially accrued separately as annual leave or

25  sick leave and is later combined into a consolidated leave

26  account, the payment for that portion of the account which

27  represents sick leave shall not be considered compensation.

28         (50)  "Independent contractor" means an individual who

29  is not subject to the control and direction of the employer

30  for whom work is being performed, with respect not only to

31  what shall be done but to how it shall be done. If the

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  1  employer has the right to exert such control, an

  2  employee-employer relationship exists, and, for purposes of

  3  this chapter, the person is an employee and not an independent

  4  contractor. The division shall adopt rules providing criteria

  5  for determining whether an individual is an employee or an

  6  independent contractor.

  7         (51)  "Previous service" means the number of years,

  8  complete months, and any fractional part of a month, as

  9  recognized and credited by an employer and approved by the

10  administrator, of service under one of the retirement systems

11  established by this chapter, chapter 122, former chapter 123,

12  chapter 238, or chapter 321, on which the required

13  contributions were paid at the member's termination of

14  employment, and for which the member has received no refund of

15  contributions.

16         (52)  "Regularly established position" is defined as

17  follows:

18         (a)  In a state agency, the term means a position which

19  is authorized and established pursuant to law and is

20  compensated from a salaries appropriation pursuant to s.

21  216.011(1)(x)1. and 2., or an established position which is

22  authorized pursuant to s. 216.262(1)(a) and (b) and is

23  compensated from a salaries account as provided by rule.

24         (b)  In a local agency (district school board, county

25  agency, community college, city, or special district), the

26  term means a regularly established position which will be in

27  existence for a period beyond 6 consecutive months, except as

28  provided by rule.

29         (53)  "Temporary position" is defined as follows:

30

31

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  1         (a)  In a state agency, the term means an employment

  2  position which is compensated from an other personal services

  3  (OPS) account, as provided for in s. 216.011(1)(x).

  4         (b)  In a local agency, the term means an employment

  5  position which will exist for less than 6 consecutive months,

  6  or other employment position as determined by rule of the

  7  division, regardless of whether it will exist for 6

  8  consecutive months or longer.

  9         (54)  "Work year" means the period of time an employee

10  is required to work to receive a full year of retirement

11  credit, as provided by rule.

12         Section 4.  Paragraphs (a) and (c) of subsection (7) of

13  section 121.052, Florida Statutes, are amended to read:

14         121.052  Membership class of elected state and county

15  officers.--

16         (7)  CONTRIBUTIONS.--

17         (a)  The following table states the required retirement

18  contribution rates for members of the Elected State and County

19  Officers' Class and their employers in terms of a percentage

20  of the member's gross compensation. A change in a contribution

21  rate is effective with the first salary paid on or after the

22  beginning date of the change. Contributions shall be made or

23  deducted as may be appropriate for each pay period and are in

24  addition to the contributions required for social security and

25  the Retiree Health Insurance Subsidy Trust Fund.

26

27  Dates of Contribution

28    Rate Changes                             Members   Employers

29

30  July 1, 1972, through September 30, 1977

31    Legislators                                 8%           8%

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  1    All Other Members                           8%           8%

  2

  3  October 1, 1977, through September 30, 1978

  4    Legislators                                 8%           8%

  5    All Other Members                           4%          12%

  6

  7  October 1, 1978, through September 30, 1979

  8    Legislators                                 8%       10.57%

  9    All Other Members                           4%       16.78%

10

11  October 1, 1979, through September 30, 1981

12    Legislators                                 8%       10.57%

13    Governor, Lt. Governor, Cabinet

14      Officers                                  4%       16.78%

15    All Other Members                           0%       20.78%

16

17  July 1, 1981, through June 30, 1984

18    County Elected Officers                     0%       19.30%

19

20  July 1, 1984, through September 30, 1984

21    County Elected Officers                     0%       20.25%

22

23  October 1, 1981, through September 30, 1984

24    Legislators                                 0%       19.30%

25    Governor, Lt. Governor, Cabinet

26      Officers                                  0%       21.03%

27    State Attorneys, Public Defenders           0%       20.95%

28    Justices, Judges                            0%       22.55%

29

30  October 1, 1984, through September 30, 1986

31    Legislators                                 0%       10.98%

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  1    Governor, Lt. Governor, Cabinet

  2      Officers                                  0%       10.98%

  3    State Attorneys, Public Defenders           0%       10.98%

  4    Justices, Judges                            0%       21.79%

  5    County Elected Officers                     0%       16.97%

  6

  7  October 1, 1986, through December 31, 1988

  8    Legislators                                 0%       11.50%

  9    Governor, Lt. Governor, Cabinet

10      Officers                                  0%       11.50%

11    State Attorneys, Public Defenders           0%       11.50%

12    Justices, Judges                            0%       20.94%

13    County Elected Officers                     0%       17.19%

14

15  January 1, 1989, through December 31, 1989

16    Legislators                                 0%       13.70%

17    Governor, Lt. Governor, Cabinet

18      Officers                                  0%       13.70%

19    State Attorneys, Public Defenders           0%       13.70%

20    Justices, Judges                            0%       22.58%

21    County Elected Officers                     0%       18.44%

22

23  January 1, 1990, through December 31, 1990

24    Legislators                                 0%       15.91%

25    Governor, Lt. Governor, Cabinet

26      Officers                                  0%       15.91%

27    State Attorneys, Public Defenders           0%       15.91%

28    Justices, Judges                            0%       24.22%

29    County Elected Officers                     0%       19.71%

30

31  January 1, 1991, through December 31, 1991

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  1    Legislators                                 0%       17.73%

  2    Governor, Lt. Governor, Cabinet

  3      Officers                                  0%       17.73%

  4    State Attorneys, Public Defenders           0%       17.73%

  5    Justices, Judges                            0%       26.63%

  6    County Elected Officers                     0%       23.32%

  7

  8  January 1, 1992, through December 31, 1992

  9    Legislators                                 0%       19.94%

10    Governor, Lt. Governor, Cabinet

11      Officers                                  0%       19.94%

12    State Attorneys, Public Defenders           0%       19.94%

13    Justices, Judges                            0%       28.27%

14    County Elected Officers                     0%       24.59%

15

16  January 1, 1993, through December 31, 1993

17    Legislators                                 0%       22.14%

18    Governor, Lt. Governor, Cabinet

19      Officers                                  0%       22.14%

20    State Attorneys, Public Defenders           0%       22.14%

21    Justices, Judges                            0%       29.91%

22    County Elected Officers                     0%       25.84%

23

24  January 1, 1994, through December 31, 1994

25    Legislators                                 0%       22.65%

26    Governor, Lt. Governor, Cabinet

27      Officers                                  0%       22.65%

28    State Attorneys, Public Defenders           0%       22.65%

29    Justices, Judges                            0%       30.52%

30    County Elected Officers                     0%       26.07%

31

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  1  January 1, 1995, through December 31, 1995

  2    Legislators                                 0%       22.80%

  3    Governor, Lt. Governor, Cabinet

  4      Officers                                  0%       22.80%

  5    State Attorneys, Public Defenders           0%       22.80%

  6    Justices, Judges                            0%       30.21%

  7    County Elected Officers                     0%       27.48%

  8

  9  January 1, 1996, through June 30, 1996

10    Legislators                                 0%       22.90%

11    Governor, Lt. Governor, Cabinet

12      Officers                                  0%       22.90%

13    State Attorneys, Public Defenders           0%       22.90%

14    Justices, Judges                            0%       30.15%

15    County Elected Officers                     0%       27.54%

16

17  Effective July 1, 1996, through June 30, 1998

18    Legislators                                 0%       23.07%

19    Governor, Lt. Governor, Cabinet

20      Officers                                  0%       23.07%

21    State Attorneys, Public Defenders           0%       23.07%

22    Justices, Judges                            0%       29.55%

23    County Elected Officers                     0%       27.33%

24

25  Effective July 1, 1998

26  Legislators                                   0%       22.33%

27  Governor, Lt. Governor, Cabinet Officers      0%       22.33%

28  State Attorneys, Public Defenders             0%       22.33%

29  Justices, Judges                              0%       27.21%

30  County elected officers                       0%       26.99%

31

                                  18

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  1         (c)  The following table states the required employer

  2  contribution on behalf of each member of the Elected State and

  3  County Officers' Class in terms of a percentage of the

  4  member's gross compensation. Such contribution constitutes the

  5  entire health insurance subsidy contribution with respect to

  6  the member. A change in the contribution rate is effective

  7  with the first salary paid on or after the beginning date of

  8  the change. The retiree health insurance subsidy contribution

  9  rate is as follows:

10

11  Dates of Contribution                             Contribution

12    Rate Changes                                        Rate

13

14  October 1, 1987, through December 31, 1988             0.24%

15  January 1, 1989, through December 31, 1993             0.48%

16  January 1, 1994, through December 31, 1994             0.56%

17  Effective January 1, 1995, through June 30,

18  1998                                                   0.66%

19  Effective July 1, 1998                                 0.80%

20

21  Such contributions shall be deposited by the administrator in

22  the Retiree Health Insurance Subsidy Trust Fund.

23         Section 5.  Paragraph (b) of subsection (1) and

24  paragraphs (a) and (c) of subsection (3) of section 121.055,

25  Florida Statutes, are amended to read:

26         121.055  Senior Management Service Class.--There is

27  hereby established a separate class of membership within the

28  Florida Retirement System to be known as the "Senior

29  Management Service Class," which shall become effective

30  February 1, 1987.

31         (1)

                                  19

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  1         (b)1.  Except as provided in subparagraph 2., effective

  2  January 1, 1990, participation in the Senior Management

  3  Service Class shall be compulsory for the president of each

  4  community college, the manager of each participating city or

  5  county, and all appointed district school superintendents.

  6  Effective January 1, 1994, additional positions may be

  7  designated for inclusion in the Senior Management Service

  8  Class of the Florida Retirement System, provided that:

  9         a.  Positions to be included in the class shall be

10  designated by the local agency employer.  Notice of intent to

11  designate positions for inclusion in the class shall be

12  published once a week for 2 consecutive weeks in a newspaper

13  of general circulation published in the county or counties

14  affected, as provided in chapter 50.

15         b.  One nonelective full-time position may be

16  designated for each local agency employer reporting to the

17  Division of Retirement; for local agencies with 100 200 or

18  more regularly established positions, additional nonelective

19  full-time positions may be designated, not to exceed 1 0.5

20  percent of the regularly established positions within the

21  agency.

22         c.  Each position added to the class must be a

23  managerial or policymaking position filled by an employee who

24  is not subject to continuing contract and serves at the

25  pleasure of the local agency employer without civil service

26  protection, and who:

27         (I)  Heads an organizational unit; or

28         (II)  Has responsibility to effect or recommend

29  personnel, budget, expenditure, or policy decisions in his or

30  her areas of responsibility.

31

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  1         2.  In lieu of participation in the Senior Management

  2  Service Class, members of the Senior Management Service Class

  3  pursuant to the provisions of subparagraph 1. may withdraw

  4  from the Florida Retirement System altogether and participate

  5  in a lifetime monthly annuity program which may be provided by

  6  the employing agency.  The cost to the employer for such

  7  annuity shall equal the normal cost portion of the

  8  contributions required in the Senior Management Service Class.

  9  The employer providing such annuity shall contribute an

10  additional amount to the Florida Retirement System Trust Fund

11  equal to the unfunded actuarial accrued liability portion of

12  the Senior Management Service Class contribution rate. The

13  decision to participate in such local government annuity shall

14  be irrevocable for as long as the employee holds a position

15  eligible for the annuity.  Any service creditable under the

16  Senior Management Service Class shall be retained after the

17  member withdraws from the Florida Retirement System; however,

18  additional service credit in the Senior Management Service

19  Class shall not be earned after such withdrawal.  Such members

20  shall not be eligible to participate in the Senior Management

21  Service Optional Annuity Program.

22         (3)(a)  The following table states the required

23  retirement contribution rates for members of the Senior

24  Management Service Class and their employers in terms of a

25  percentage of the member's gross compensation.  A change in

26  the contribution rate is effective with the first salary paid

27  on or after the beginning date of the change.  Contributions

28  shall be made for each pay period and are in addition to the

29  contributions required for social security and the Retiree

30  Health Insurance Subsidy Trust Fund.

31

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  1  Dates of Contribution

  2    Rate Changes                          Members   Employers

  3

  4  February 1, 1987, through

  5    December 31, 1988                       0%       13.88%

  6  January 1, 1989, through

  7    December 31, 1989                       0%       14.95%

  8  January 1, 1990, through

  9    December 31, 1990                       0%       16.04%

10  January 1, 1991, through

11    December 31, 1991                       0%       18.39%

12  January 1, 1992, through

13    December 31, 1992                       0%       19.48%

14  January 1, 1993, through

15    December 31, 1993                       0%       20.55%

16  January 1, 1994, through

17    December 31, 1994                       0%       23.07%

18  January 1, 1995, through

19    December 31, 1995                       0%       23.88%

20  January 1, 1996, through

21    June 30, 1996                           0%       24.14%

22  Effective July 1, 1996, through June 30,

23  1998                                      0%       21.58%

24  Effective July 1, 1998                    0%       23.10%

25

26         (c)  The following table states the required employer

27  contribution on behalf of each member of the Senior Management

28  Service Class in terms of a percentage of the member's gross

29  compensation.  Such contribution constitutes the entire health

30  insurance subsidy contribution with respect to the member. A

31  change in the contribution rate is effective with the first

                                  22

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  1  salary paid on or after the beginning date of the change.  The

  2  retiree health insurance subsidy contribution rate is as

  3  follows:

  4

  5  Dates of Contribution                             Contribution

  6    Rate Changes                                        Rate

  7

  8  October 1, 1987, through December 31, 1988             0.24%

  9  January 1, 1989, through December 31, 1993             0.48%

10  January 1, 1994, through December 31, 1994             0.56%

11  Effective January 1, 1995, through June 30,

12  1998                                                   0.66%

13  Effective July 1, 1998                                 0.80%

14

15  Such contributions shall be deposited by the administrator in

16  the Retiree Health Insurance Subsidy Trust Fund.

17         Section 6.  Subsections (1) and (4) of section 121.071,

18  Florida Statutes, are amended to read:

19         121.071  Contributions.--Contributions to the system

20  shall be made as follows:

21         (1)  The following tables state the required retirement

22  contribution rates for members of the Regular Class, Special

23  Risk Class, or Special Risk Administrative Support Class and

24  their employers in terms of a percentage of the member's gross

25  compensation.  A change in a contribution rate is effective

26  with the first salary paid on or after the beginning date of

27  the change. Contributions shall be made or deducted as may be

28  appropriate for each pay period and are in addition to the

29  contributions required for social security and the Retiree

30  Health Insurance Subsidy Trust Fund.

31

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  1         (a)  Retirement contributions for regular members are

  2  as follows:

  3

  4  Dates of Contribution

  5    Rate Changes                             Members   Employers

  6

  7  December 1, 1970, through December

  8    31, 1974, for state agencies, state

  9    universities, community colleges,

10    and district school boards                  4%           4%

11

12  December 1, 1970, through September

13    30, 1975, for all other local

14    government agencies                         4%           4%

15

16  January 1, 1975, through September

17    30, 1978, for state agencies and

18    state universities                          0%           9%

19

20  January 1, 1975, through July 31,

21    1978, for community colleges and

22    district school boards                      0%           9%

23

24  October 1, 1975, through September

25    30, 1978, for all other local

26    government agencies                         0%           9%

27

28  August 1, 1978, through September 30,

29    1981, for community colleges and

30    district school boards                      0%         9.1%

31

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  1

  2  October 1, 1978, through September

  3    30, 1981, for all other agencies            0%         9.1%

  4

  5  October 1, 1981, through

  6    September 30, 1984                          0%       10.93%

  7  October 1, 1984, through

  8    September 30, 1986                          0%       12.24%

  9  October 1, 1986, through

10    December 31, 1988                           0%       13.14%

11  January 1, 1989, through

12    December 31, 1989                           0%       13.90%

13  January 1, 1990, through

14    December 31, 1990                           0%       14.66%

15  January 1, 1991, through

16    December 31, 1991                           0%       15.72%

17  January 1, 1992, through

18    December 31, 1992                           0%       16.51%

19  January 1, 1993, through

20    December 31, 1993                           0%       17.27%

21  January 1, 1994, through

22    December 31, 1994                           0%       17.10%

23  January 1, 1995, through

24    December 31, 1995                           0%       16.91%

25  January 1, 1996, through

26    June 30, 1996                               0%       17.00%

27  Effective July 1, 1996, through June 30,

28  1998                                          0%       16.77%

29  Effective July 1, 1998                        0%       15.51%

30

31

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  1         (b)  Retirement contributions for special risk members

  2  are as follows:

  3

  4  Dates of Contribution

  5    Rate Changes                             Members   Employers

  6

  7  December 1, 1970, through

  8    September 30, 1974                          6%           6%

  9

10  October 1, 1974, through December 31,

11    1974, for state agencies, state

12    universities, community colleges,

13    and district school boards                  8%           8%

14

15  October 1, 1974, through September

16    30, 1975, for all other local

17    government agencies                         8%           8%

18

19  January 1, 1975, through September

20    30, 1978, for state agencies, state

21    universities, community colleges,

22    and district school boards                  0%          13%

23

24  October 1, 1975, through September

25    30, 1978, for other local

26    government agencies                         0%          13%

27

28  October 1, 1978, through

29    September 30, 1981                          0%       13.95%

30  October 1, 1981, through

31    September 30, 1984                          0%       13.91%

                                  26

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  1  October 1, 1984, through

  2    September 30, 1986                          0%       14.67%

  3  October 1, 1986, through

  4    December 31, 1988                           0%       15.11%

  5  January 1, 1989, through

  6    December 31, 1989                           0%       17.50%

  7  January 1, 1990, through

  8    December 31, 1990                           0%       19.90%

  9  January 1, 1991, through

10    December 31, 1991                           0%       25.52%

11  January 1, 1992, through

12    December 31, 1992                           0%       26.35%

13  January 1, 1993, through

14    December 31, 1993                           0%       27.14%

15  January 1, 1994, through

16    December 31, 1994                           0%       27.03%

17  January 1, 1995, through

18    December 31, 1995                           0%       26.83%

19  January 1, 1996, through

20    June 30, 1996                               0%       26.84%

21  Effective July 1, 1996, through June 30,

22  1998                                          0%       26.44%

23  Effective July 1, 1998                        0%       24.38%

24

25         (c)  Retirement contributions for special risk

26  administrative support members are as follows:

27

28  Dates of Contribution

29    Rate Changes                             Members   Employers

30

31  July 1, 1982, through

                                  27

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  1    September 30, 1984                          0%       11.14%

  2  October 1, 1984, through

  3    September 30, 1986                          0%       13.09%

  4  October 1, 1986, through

  5    December 31, 1988                           0%       15.44%

  6  January 1, 1989, through

  7    December 31, 1989                           0%       14.76%

  8  January 1, 1990, through

  9    December 31, 1990                           0%       14.09%

10  January 1, 1991, through

11    December 31, 1991                           0%       20.16%

12  January 1, 1992, through

13    December 31, 1992                           0%       19.51%

14  January 1, 1993, through

15    December 31, 1993                           0%       18.83%

16  January 1, 1994, through

17    December 31, 1994                           0%       18.59%

18  January 1, 1995, through

19    December 31, 1995                           0%       17.81%

20  January 1, 1996, through

21    June 30, 1996                               0%       17.80%

22  Effective July 1, 1996, through June 30,

23  1998                                          0%       17.20%

24  Effective July 1, 1998                        0%       14.64%

25

26         (4)  The following table states the required employer

27  contribution on behalf of each member of the Regular Class,

28  Special Risk Class, or Special Risk Administrative Support

29  Class in terms of a percentage of the member's gross

30  compensation.  Such contribution constitutes the entire health

31  insurance subsidy contribution with respect to the member.  A

                                  28

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  1  change in the contribution rate is effective with the first

  2  salary paid on or after the beginning date of the change. The

  3  retiree health insurance subsidy contribution rate is as

  4  follows:

  5

  6  Dates of Contribution                             Contribution

  7    Rate Changes                                        Rate

  8

  9  October 1, 1987, through December 31, 1988             0.24%

10  January 1, 1989, through December 31, 1993             0.48%

11  January 1, 1994, through December 31, 1994             0.56%

12  Effective January 1, 1995, through June 30,

13  1998                                                   0.66%

14  Effective July 1, 1998                                 0.80%

15

16  Such contributions shall be deposited by the administrator in

17  the Retiree Health Insurance Subsidy Trust Fund.

18         Section 7.  Subsection (2), paragraph (d) of subsection

19  (6), paragraph (a) of subsection (7), and subsection (8) of

20  section 121.091, Florida Statutes, are amended, paragraphs (f)

21  and (g) of subsection (7) of said section are redesignated as

22  paragraphs (g) and (h), respectively, and a new paragraph (f)

23  is added to said subsection, to read:

24         121.091  Benefits payable under the system.--No

25  benefits shall be paid under this section unless the member

26  has terminated employment as provided in s. 121.021(39) and a

27  proper application has been filed in the manner prescribed by

28  the division.

29         (2)  BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT

30  AGES.--In the event a member accumulates retirement benefits

31  to commence at different normal retirement ages by virtue of

                                  29

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  1  having performed duties for an employer which would entitle

  2  him or her to benefits as both a regular member and special

  3  risk member of the Special Risk Class and a member of either

  4  the Regular Class, Senior Management Service Class, or Elected

  5  Officers' Class, the amount of benefits payable shall be

  6  computed separately with respect to each such age and the sum

  7  of such computed amounts shall be paid as provided in this

  8  section.

  9         (6)  OPTIONAL FORMS OF RETIREMENT BENEFITS AND

10  DISABILITY RETIREMENT BENEFITS.--

11         (d)  A member who elects the option in subparagraph

12  (a)3. or subparagraph (a)4. shall, on a form provided for that

13  purpose, designate a joint annuitant to receive the benefits

14  which continue to be payable upon the death of the member.

15  After benefits have commenced under the option in subparagraph

16  (a)3. or subparagraph (a)4., the following shall apply:

17         1.  A retired member may change his or her designation

18  of a joint annuitant only twice. If such a retired member

19  desires to change his or her designation of a joint annuitant,

20  he or she shall file with the division a notarized "change of

21  joint annuitant" form and shall notify the former joint

22  annuitant in writing of such change. Upon receipt of a

23  completed change of joint annuitant form, the division shall

24  adjust the member's monthly benefit by the application of

25  actuarial tables and calculations developed to ensure that the

26  benefit paid is the actuarial equivalent of the present value

27  of the member's current benefit. The consent of a retired

28  member's first designated joint annuitant to any such change

29  shall not be required.

30         2.  In the event of the dissolution of marriage of a

31  retired member and a joint annuitant, such member may make an

                                  30

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  1  election to nullify the joint annuitant designation of the

  2  former spouse, unless there is an existing qualified domestic

  3  relations order preventing such action.  The member shall file

  4  with the division a written, notarized nullification which

  5  shall be effective on the first day of the next month

  6  following receipt by the division.  Benefits shall be paid as

  7  if the former spouse predeceased the member.  A member who

  8  makes such an election may not reverse the nullification but

  9  may designate a new joint annuitant in accordance with

10  subparagraph 1.

11         (7)  DEATH BENEFITS.--

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

13  reason of his or her death prior to the completion of 10 years

14  of creditable service, except as provided in paragraph (f),

15  there shall be payable to his or her designated beneficiary

16  the member's accumulated contributions.

17         (f)  Notwithstanding any other provisions in this

18  chapter to the contrary and upon application to the

19  administrator, an eligible joint annuitant, of a member whose

20  employment is terminated by death within 1 year of such member

21  satisfying the service requirements for vesting and retirement

22  eligibility, shall be permitted to purchase only the

23  additional service credit necessary to vest and qualify for

24  retirement benefits by one of the following methods:

25         1.  Such eligible joint annuitant may use the deceased

26  member's accumulated hours of annual, sick, and compensatory

27  leave to purchase additional creditable service, on an hour by

28  hour basis, provided that such deceased member's accumulated

29  leave is sufficient to cover the additional months required.

30  For each month of service credit needed prior to the final

31  month, credit for the total number of work hours in that month

                                  31

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  1  must be purchased, using an equal number of the deceased

  2  member's accumulated leave hours.  Service credit required for

  3  the final month in which the deceased member would have become

  4  vested shall be awarded upon the purchase of 1 hour of credit.

  5  Such eligible joint annuitant shall pay the contribution rate

  6  in effect at the time of purchase of the deceased member's

  7  class of membership, multiplied by such member's monthly

  8  salary at the time of death.  The accumulated leave payment

  9  used in the average final compensation shall not include that

10  portion of the payment that represents any leave hours used in

11  the purchase of such creditable service.

12         2.  Such eligible joint annuitant may purchase

13  additional months of creditable service, up to a maximum of 1

14  year, for any periods of out-of-state service as provided in

15  s. 121.1115, or in-state service as provided in s. 121.1122,

16  that the deceased member would have been eligible to purchase

17  prior to his or her death.

18

19  Service purchased under this paragraph shall be added to the

20  creditable service of the member and used to vest for

21  retirement eligibility, and shall be used in the calculation

22  of any benefits which may be payable to the eligible joint

23  annuitant.  Any benefits paid in accordance with this

24  paragraph shall only be made prospectively.

25         (8)  DESIGNATION OF BENEFICIARIES.--Each member may, on

26  a form provided for that purpose, signed and filed with the

27  division, designate a choice of one or more persons, named

28  sequentially or jointly, as his or her beneficiary who shall

29  receive the benefits, if any, which may be payable in the

30  event of the member's death pursuant to the provisions of this

31  chapter. If no beneficiary is named in the manner provided

                                  32

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  1  above, or if no beneficiary designated by the member survives

  2  the member, the beneficiary shall be the spouse of the

  3  deceased, if living. If the member's spouse is not alive at

  4  his or her death, the beneficiary shall be the living children

  5  of the member.  If no children survive, the beneficiary shall

  6  be the member's father or mother, if living; otherwise, the

  7  beneficiary shall be the member's estate.  The beneficiary

  8  most recently designated by a member on a form or letter filed

  9  with the division shall be the beneficiary entitled to any

10  benefits payable at the time of the member's death, except

11  benefits shall be paid as provided in paragraph (7)(d) when

12  death occurs in the line of duty. Notwithstanding any other

13  provisions in this subsection to the contrary, for a member

14  who dies prior to his or her effective date of retirement on

15  or after January 1, 1999, the spouse at the time of death

16  shall be the member's beneficiary unless such member

17  designates a different beneficiary as provided herein

18  subsequent to the member's most recent marriage.

19         Section 8.  Subsection (1) of section 121.1122, Florida

20  Statutes, is amended to read:

21         121.1122  Purchase of retirement credit for in-state

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

23  nonsectarian schools and colleges, including charter

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

25  Retirement System may purchase creditable service for periods

26  of certain public or nonpublic, nonsectarian employment

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

28         (1)  PURCHASE OF RETIREMENT CREDIT AUTHORIZED.--Subject

29  to the provisions of subsections (2) and (3), a member of the

30  Florida Retirement System may purchase up to 5 years of

31  retirement credit for:

                                  33

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  1         (a)  Periods of public employment in this state; or

  2         (b)  Periods of employment in charter schools or in any

  3  nonpublic, nonsectarian school or college in this state that

  4  is accredited by the Southern Association of Colleges and

  5  Schools.

  6

  7  Credit for 1 year of such service may be purchased for each

  8  year of creditable service a member completes under the

  9  Florida Retirement System.

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.--

14         (1)  A member may purchase creditable service for

15  Future service of any member as defined in s. 121.021(21)

16  shall also include up to 2 work years of creditable service

17  for authorized leaves of absence if:

18         (a)(1)  The member has completed a minimum of 10 years

19  of creditable service, excluding periods of leave of absence;

20         (b)(2)  The leave of absence is authorized in writing

21  by the employer of the member and approved by the

22  administrator;

23         (c)(3)  The member returns to active employment

24  performing service with a Florida Retirement System employer

25  in a regularly established position immediately upon

26  termination of the leave of absence and remains on the

27  employer's payroll for 1 calendar month, except that a member

28  who retires on disability while on a medical leave of absence

29  shall not be required to return to employment; and

30         (d)(4)  The member makes the required contributions for

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

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

  2  or her rate of monthly compensation in effect immediately

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

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

  5  percent interest thereafter on such contributions, compounded

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

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

  8  purchased pursuant to this section shall be at the

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

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

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

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

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

14  the regular membership class, may pay the appropriate

15  additional contributions plus compound interest thereon and

16  receive creditable service for such leave of absence in the

17  membership class from which the member was granted the leave

18  of absence.

19         (2)  A member who is required to resign his or her

20  office as a subordinate officer, deputy sheriff, or police

21  officer because he or she is a candidate for a public office

22  which is currently held by his or her superior officer who is

23  also a candidate for reelection to the same office, in

24  accordance with s. 99.012(5), shall, upon return to covered

25  employment, be eligible to purchase retirement credit for the

26  period between his or her date of resignation and the

27  beginning of the term of office for which he or she was a

28  candidate as a leave of absence without pay, as provided in

29  subsection (1).

30         Section 10.  Subsection (3) of section 121.122, Florida

31  Statutes, is amended to read:

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  1         121.122  Renewed membership in system.--Except as

  2  provided in s. 121.053, effective July 1, 1991, any retiree of

  3  a state-administered retirement system who is employed in a

  4  regularly established position with a covered employer shall

  5  be enrolled as a compulsory member of the Regular Class of the

  6  Florida Retirement System or, effective July 1, 1997, any

  7  retiree of a state-administered retirement system who is

  8  employed in a position included in the Senior Management

  9  Service Class shall be enrolled as a compulsory member of the

10  Senior Management Service Class of the Florida Retirement

11  System as provided in s. 121.055, and shall be entitled to

12  receive an additional retirement benefit, subject to the

13  following conditions:

14         (3)  Such member shall be entitled to purchase

15  additional retirement credit in the Regular Class or the

16  Senior Management Service Class, as applicable, for any

17  postretirement service performed in a regularly established

18  position as follows:

19         (a)  For regular class service prior to July 1, 1991,

20  by paying the Regular Class applicable employee and employer

21  contributions for the period being claimed, plus 4 percent

22  interest compounded annually from first year of service

23  claimed until July 1, 1975, and 6.5 percent interest

24  compounded thereafter, until full payment is made to the

25  Florida Retirement System Trust Fund; or

26         (b)  For Senior Management Service Class prior to June

27  1, 1997, as provided in s. 121.055(1)(h).

28

29  The contribution for postretirement service between July 1,

30  1985, and July 1, 1991, for which the reemployed retiree

31  contribution was paid, shall be the difference between such

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  1  contribution and the total applicable contribution for the

  2  period being claimed, plus interest.  The employer of such

  3  member may pay the applicable employer contribution in lieu of

  4  the member.

  5         Section 11.  Subsection (5) of section 121.30, Florida

  6  Statutes, is amended to read:

  7         121.30  Statements of purpose and intent and other

  8  provisions required for qualification under the Internal

  9  Revenue Code of the United States.--Any other provisions in

10  this chapter to the contrary notwithstanding, it is

11  specifically provided that:

12         (5)  No benefit payable hereunder for any limitation

13  year shall exceed the maximum amount, including cost-of-living

14  adjustments, allowable by law for qualified pension plans

15  under applicable provisions of the Internal Revenue Code of

16  the United States. In the event of any participation of a

17  Florida Retirement System member in any other plan that is

18  maintained by the participating employer, benefits that accrue

19  under the Florida Retirement System shall be considered

20  primary for any aggregate limitation applicable under s. 415

21  of the Internal Revenue Code.

22         Section 12.  Section 121.133, Florida Statutes, is

23  created to read:

24         121.133  Cancellation of uncashed

25  warrants.--Notwithstanding the provisions of s. 17.26 or s.

26  717.123 to the contrary, effective July 1, 1998, if any state

27  warrant issued by the Comptroller for the payment of

28  retirement benefits from the Florida Retirement System Trust

29  Fund, or any other pension trust fund administered by the

30  division, is not presented for payment within 1 year after the

31  last day of the month in which it was originally issued, the

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  1  Comptroller shall cancel the benefit warrant and credit the

  2  amount of the warrant to the Florida Retirement System Trust

  3  Fund or other pension trust fund administered by the division,

  4  as appropriate.  The Division of Retirement may provide for

  5  issuance of a replacement warrant when deemed appropriate.

  6         Section 13.  Paragraph (b) of subsection (12) of

  7  section 121.40, Florida Statutes, is amended to read:

  8         121.40  Cooperative extension personnel at the

  9  Institute of Food and Agricultural Sciences; supplemental

10  retirement benefits.--

11         (12)  CONTRIBUTIONS.--

12         (b)  The monthly contributions required to be paid

13  pursuant to paragraph (a) on the gross monthly salaries, from

14  all sources with respect to such employment, paid to those

15  employees of the institute who hold both state and federal

16  appointments and who participate in the federal Civil Service

17  Retirement System shall be as follows:

18

19  Dates of Contribution                              Percentage

20    Rate Changes                                        Due

21

22  July 1, 1985, through December 31, 1988              6.68%

23  January 1, 1989, through December 31, 1993           6.35%

24  January 1, 1994, through December 31, 1994           6.69%

25  January 1, 1995, through June 30, 1996               6.82%

26  Effective July 1, 1996, through June 30,

27  1998                                                 5.64%

28  Effective July 1, 1998                               7.17%

29

30         Section 14.  Sections 121.0505 and 121.0516, Florida

31  Statutes, are repealed.

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  1         Section 15.  (1)  The changes to the retirement

  2  contribution rates for the Florida Retirement System included

  3  in this act are the result of the 1997 Actuarial Valuation of

  4  the Florida Retirement System as recommended by the consulting

  5  actuaries. These changes shall remain in effect until such

  6  rates are further amended, or until such rates are adjusted as

  7  provided in subsection (2).

  8         (2)  The rate adjustments set forth in this act are in

  9  addition to all other changes to such contribution rates which

10  are separately enacted into law and applicable on July 1,

11  1998.  With respect to such other changes, the Division of

12  Statutory Revision of the Joint Legislative Management

13  Committee is directed to edit the statutes as necessary to

14  adjust the contribution rate percentages listed under ss.

15  121.052(7)(a), 121.055(3)(a), and 121.071(1), Florida

16  Statutes, as appropriate.  Pursuant to s. 11.242(5)(i),

17  Florida Statutes, the provisions of this section shall be

18  omitted from publication in the Florida Statutes or any

19  revision or supplement thereof.

20         Section 16.  The Legislature finds that a proper and

21  legitimate state purpose is served when employees and retirees

22  of the state and its political subdivisions, and the

23  dependents, survivors, and beneficiaries of such employees and

24  retirees, are extended the basic protections afforded by

25  governmental retirement systems that provide fair and adequate

26  benefits and are managed, administered, and funded in an

27  actuarially sound manner, as required by s. 14, Art. X of the

28  State Constitution and part VII of chapter 112, Florida

29  Statutes.  Therefore, the Legislature hereby determines and

30  declares that the provisions of this act fulfill an important

31  state interest.

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  1         Section 17.  In editing manuscript for the next edition

  2  of the official Florida Statutes, the Statutory Revision

  3  Division of the Joint Legislative Management Committee, or its

  4  successor, shall change "Elected State and County Officers'

  5  Class" to "Elected Officers' Class" wherever the same appears

  6  in chapter 121.

  7         Section 18.  Except as otherwise provided herein, this

  8  act shall take effect upon becoming a law.

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