House Bill 0061

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    Florida House of Representatives - 1999                  HB 61

        By Representative Lynn






  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.055, F.S.; revising

  4         provisions with respect to the Senior

  5         Management Service Class to remove certain

  6         contribution requirements and limitations on

  7         the amount and type of retirement benefits

  8         which may be provided for certain participants

  9         who opt to participate in the optional annuity

10         program; providing an effective date.

11

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

13

14         Section 1.  Paragraph (b) of subsection (1) of section

15  121.055, Florida Statutes, 1998 Supplement, is amended to

16  read:

17         121.055  Senior Management Service Class.--There is

18  hereby established a separate class of membership within the

19  Florida Retirement System to be known as the "Senior

20  Management Service Class," which shall become effective

21  February 1, 1987.

22         (1)

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

24  January 1, 1990, participation in the Senior Management

25  Service Class shall be compulsory for the president of each

26  community college, the manager of each participating city or

27  county, and all appointed district school superintendents.

28  Effective January 1, 1994, additional positions may be

29  designated for inclusion in the Senior Management Service

30  Class of the Florida Retirement System, provided that:

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    Florida House of Representatives - 1999                  HB 61

    560-194A-99






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

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

  3  designate positions for inclusion in the class shall be

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

  5  of general circulation published in the county or counties

  6  affected, as provided in chapter 50.

  7         b.  One nonelective full-time position may be

  8  designated for each local agency employer reporting to the

  9  Division of Retirement; for local agencies with 100 or more

10  regularly established positions, additional nonelective

11  full-time positions may be designated, not to exceed 1 percent

12  of the regularly established positions within the agency.

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

14  managerial or policymaking position filled by an employee who

15  is not subject to continuing contract and serves at the

16  pleasure of the local agency employer without civil service

17  protection, and who:

18         (I)  Heads an organizational unit; or

19         (II)  Has responsibility to effect or recommend

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

21  her areas of responsibility.

22         2.  In lieu of participation in the Senior Management

23  Service Class, members of the Senior Management Service Class

24  pursuant to the provisions of subparagraph 1. may withdraw

25  from the Florida Retirement System altogether and participate

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

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

28  annuity shall equal the normal cost portion of the

29  contributions required in the Senior Management Service Class.

30  The employer providing such annuity shall contribute an

31  additional amount to the Florida Retirement System Trust Fund

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    Florida House of Representatives - 1999                  HB 61

    560-194A-99






  1  equal to the unfunded actuarial accrued liability portion of

  2  the Senior Management Service Class contribution rate. The

  3  decision to participate in such local government annuity shall

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

  5  eligible for the annuity.  Any service creditable under the

  6  Senior Management Service Class shall be retained after the

  7  member withdraws from the Florida Retirement System; however,

  8  additional service credit in the Senior Management Service

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

10  shall not be eligible to participate in the Senior Management

11  Service Optional Annuity Program. With respect to Senior

12  Management Class participants who have withdrawn from the

13  Florida Retirement System pursuant to this subparagraph prior

14  to January 1, 1999, contributions to the Florida Retirement

15  System Trust Fund on behalf of such Senior Management Service

16  Class participants for unfunded actuarial accrued liability

17  shall no longer be required and the limitation on the amount

18  and type of retirement benefits which can be provided for such

19  participants shall no longer be applicable.

20         Section 2.  This act shall take effect October 1, 1999.

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22            *****************************************

23                          HOUSE SUMMARY

24
      Provides that with respect to certain Senior Management
25    Service Class participants in the Florida Retirement
      System who have withdrawn from the system and elected to
26    participate in the optional annuity program prior to
      January 1, 1999, contributions to the Florida Retirement
27    System Trust Fund on behalf of said participants for
      unfunded actuarial accrued liability shall no longer be
28    required and the limitation on the amount and type of
      retirement benefits which can be provided for said
29    participants is no longer applicable. See bill for
      details.
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