House Bill 0885e1

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                                           HB 885, First Engrossed



  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 permit certain

  6         local government senior managers to withdraw

  7         from the Florida Retirement System altogether;

  8         providing for matters relative thereto;

  9         amending s. 121.055, F.S.; requiring that a

10         judge of compensation claims who is a member of

11         the Florida Retirement System participate in

12         the Senior Management Service Class unless such

13         judge elects to participate in the Senior

14         Management Service Optional Annuity Program;

15         providing an effective date.

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

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

20  121.055, Florida Statutes, 1998 Supplement, is amended to

21  read:

22         121.055  Senior Management Service Class.--There is

23  hereby established a separate class of membership within the

24  Florida Retirement System to be known as the "Senior

25  Management Service Class," which shall become effective

26  February 1, 1987.

27         (1)

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

29  January 1, 1990, participation in the Senior Management

30  Service Class shall be compulsory for the president of each

31  community college, the manager of each participating city or


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                                           HB 885, First Engrossed



  1  county, and all appointed district school superintendents.

  2  Effective January 1, 1994, additional positions may be

  3  designated for inclusion in the Senior Management Service

  4  Class of the Florida Retirement System, provided that:

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

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

  7  designate positions for inclusion in the class shall be

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

  9  of general circulation published in the county or counties

10  affected, as provided in chapter 50.

11         b.  One nonelective full-time position may be

12  designated for each local agency employer reporting to the

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

14  regularly established positions, additional nonelective

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

16  of the regularly established positions within the agency.

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

18  managerial or policymaking position filled by an employee who

19  is not subject to continuing contract and serves at the

20  pleasure of the local agency employer without civil service

21  protection, and who:

22         (I)  Heads an organizational unit; or

23         (II)  Has responsibility to effect or recommend

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

25  her areas of responsibility.

26         2.  In lieu of participation in the Senior Management

27  Service Class, members of the Senior Management Service Class

28  pursuant to the provisions of subparagraph 1. may withdraw

29  from the Florida Retirement System altogether and participate

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

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


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                                           HB 885, First Engrossed



  1  annuity shall equal the normal cost portion of the

  2  contributions required in the Senior Management Service Class.

  3  The employer providing such annuity shall contribute an

  4  additional amount to the Florida Retirement System Trust Fund

  5  equal to the unfunded actuarial accrued liability portion of

  6  the Senior Management Service Class contribution rate. The

  7  decision to withdraw from the Florida Retirement System

  8  participate in such local government annuity shall be

  9  irrevocable for as long as the employee holds such a position

10  eligible for the annuity.  Any service creditable under the

11  Senior Management Service Class shall be retained after the

12  member withdraws from the Florida Retirement System; however,

13  additional service credit in the Senior Management Service

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

15  shall not be eligible to participate in the Senior Management

16  Service Optional Annuity Program.

17         Section 2.  Subsection (1) of section 121.055, Florida

18  Statutes, 1998 Supplement, is amended to read:

19         121.055  Senior Management Service Class.--There is

20  hereby established a separate class of membership within the

21  Florida Retirement System to be known as the "Senior

22  Management Service Class," which shall become effective

23  February 1, 1987.

24         (1)(a)  Participation in the Senior Management Service

25  Class shall be limited to and compulsory for any member of the

26  Florida Retirement System who holds a position in the Senior

27  Management Service of the State of Florida, established by

28  part III of chapter 110, unless such member elects, within the

29  time specified herein, to participate in the Senior Management

30  Service Optional Annuity Program as established in subsection

31  (6).


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                                           HB 885, First Engrossed



  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 or more

18  regularly established positions, additional nonelective

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

20  of the regularly established positions within the agency.

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

22  managerial or policymaking position filled by an employee who

23  is not subject to continuing contract and serves at the

24  pleasure of the local agency employer without civil service

25  protection, and who:

26         (I)  Heads an organizational unit; or

27         (II)  Has responsibility to effect or recommend

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

29  her areas of responsibility.

30         2.  In lieu of participation in the Senior Management

31  Service Class, members of the Senior Management Service Class


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                                           HB 885, First Engrossed



  1  pursuant to the provisions of subparagraph 1. may withdraw

  2  from the Florida Retirement System altogether and participate

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

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

  5  annuity shall equal the normal cost portion of the

  6  contributions required in the Senior Management Service Class.

  7  The employer providing such annuity shall contribute an

  8  additional amount to the Florida Retirement System Trust Fund

  9  equal to the unfunded actuarial accrued liability portion of

10  the Senior Management Service Class contribution rate. The

11  decision to participate in such local government annuity shall

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

13  eligible for the annuity.  Any service creditable under the

14  Senior Management Service Class shall be retained after the

15  member withdraws from the Florida Retirement System; however,

16  additional service credit in the Senior Management Service

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

18  shall not be eligible to participate in the Senior Management

19  Service Optional Annuity Program.

20         (c)1.  Effective January 1, 1990, participation in the

21  Senior Management Service Class shall be compulsory for up to

22  75 nonelective positions at the level of committee staff

23  director or higher or equivalent managerial or policymaking

24  positions within the House of Representatives, as selected by

25  the Speaker of the House of Representatives, up to 50

26  nonelective positions at the level of committee staff director

27  or higher or equivalent managerial or policymaking positions

28  within the Senate, as selected by the President of the Senate,

29  all staff directors of joint committees and service offices of

30  the Legislature, the Auditor General and up to 9 managerial or

31  policymaking positions within his or her office as selected by


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                                           HB 885, First Engrossed



  1  the Auditor General, and the executive director of the

  2  Commission on Ethics.

  3         2.  Participation in this class shall be compulsory,

  4  except as provided in subparagraph 3., for any legislative

  5  employee who holds a position designated for coverage in the

  6  Senior Management Service Class, and such participation shall

  7  continue until the employee terminates employment in a covered

  8  position.

  9         3.  In lieu of participation in the Senior Management

10  Service Class, at the discretion of the President of the

11  Senate and the Speaker of the House of Representatives, such

12  members may participate in the Senior Management Service

13  Optional Annuity Program as established in subsection (6).

14         (d)  Effective January 1, 1991, participation in the

15  Senior Management Service Class shall be compulsory for any

16  member of the Florida Retirement System in a position that has

17  been designated eligible for inclusion in the Executive

18  Service of the State University System or who holds a position

19  as president of a state university, unless such member elects,

20  pursuant to s. 121.35, to participate in the optional

21  retirement program.

22         (e)  Effective January 1, 1991, participation in the

23  Senior Management Service Class shall be compulsory for the

24  number of senior managers who have policymaking authority with

25  the State Board of Administration, as determined by the

26  Governor, Treasurer, and Comptroller acting as the State Board

27  of Administration, unless such member elects to participate in

28  the Senior Management Service Optional Annuity Program as

29  established in subsection (6) in lieu of participation in the

30  Senior Management Service Class. Such election shall be made

31  in writing and filed with the division and the personnel


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                                           HB 885, First Engrossed



  1  officer of the State Board of Administration within 90 days

  2  after becoming eligible for membership in the Senior

  3  Management Service Class.

  4         (f)  Effective July 1, 1997:

  5         1.  Any elected state officer eligible for membership

  6  in the Elected State and County Officers' Class under s.

  7  121.052(2)(a), (b), or (c) who elects membership in the Senior

  8  Management Service Class under s. 121.052(3)(c) may, within 6

  9  months after assuming office or within 6 months after this act

10  becomes a law for serving elected state officers, elect to

11  participate in the Senior Management Service Optional Annuity

12  Program, as provided in subsection (6), in lieu of membership

13  in the Senior Management Service Class.

14         2.  Any elected county officer eligible for membership

15  in the Elected State and County Officers' Class under s.

16  121.052(2)(d) who elects membership in the Senior Management

17  Service Class under s. 121.052(3)(c) may, within 6 months

18  after assuming office, or within 6 months after this act

19  becomes a law for serving elected county officers, elect to

20  participate in a lifetime monthly annuity program, as provided

21  in subparagraph (b)2., in lieu of membership in the Senior

22  Management Service Class.

23         (g)  Effective July 1, 1996, participation in the

24  Senior Management Service Class shall be compulsory for any

25  member of the Florida Retirement System employed with the

26  Department of Military Affairs in the positions of the

27  Adjutant General, Assistant Adjutant General-Army, Assistant

28  Adjutant General-Air, State Quartermaster, Director of

29  Military Personnel, Director of Administration, and additional

30  directors as designated by the agency head, not to exceed a

31  total of 10 positions.  In lieu of participation in the Senior


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                                           HB 885, First Engrossed



  1  Management Service Class, such members may participate in the

  2  Senior Management Service Optional Annuity Program as

  3  established in subsection (6).

  4         (h)1.  Except as provided in subparagraph 3., effective

  5  January 1, 1994, participation in the Senior Management

  6  Service Class shall be compulsory for the State Courts

  7  Administrator and the Deputy State Courts Administrators, the

  8  Clerk of the Supreme Court, the Marshal of the Supreme Court,

  9  the Executive Director of the Justice Administrative

10  Commission, the Capital Collateral Representative, the clerks

11  of the district courts of appeals, the marshals of the

12  district courts of appeals, and the trial court administrator

13  in each judicial circuit. Effective January 1, 1994,

14  additional positions in the offices of the state attorney and

15  public defender in each judicial circuit may be designated for

16  inclusion in the Senior Management Service Class of the

17  Florida Retirement System, provided that:

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

19  designated by the state attorney or public defender, as

20  appropriate.  Notice of intent to designate positions for

21  inclusion in the class shall be published once a week for 2

22  consecutive weeks in a newspaper of general circulation

23  published in the county or counties affected, as provided in

24  chapter 50.

25         b.  One nonelective full-time position may be

26  designated for each state attorney and public defender

27  reporting to the Division of Retirement; for agencies with 200

28  or more regularly established positions under the state

29  attorney or public defender, additional nonelective full-time

30  positions may be designated, not to exceed 0.5 percent of the

31  regularly established positions within the agency.


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                                           HB 885, First Engrossed



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

  2  managerial or policymaking position filled by an employee who

  3  serves at the pleasure of the state attorney or public

  4  defender without civil service protection, and who:

  5         (I)  Heads an organizational unit; or

  6         (II)  Has responsibility to effect or recommend

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

  8  her areas of responsibility.

  9         2.  Participation in this class shall be compulsory,

10  except as provided in subparagraph 3., for any judicial

11  employee who holds a position designated for coverage in the

12  Senior Management Service Class and such participation shall

13  continue until the employee terminates employment in a covered

14  position.

15         3.  In lieu of participation in the Senior Management

16  Service Class, such members may participate in the Senior

17  Management Service Optional Annuity Program as established in

18  subsection (6).

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

20  July 1, 1999, participation in the Senior Management Service

21  Class is compulsory for any member of the Florida Retirement

22  System who is employed as a judge of compensation claims with

23  the Office of the Judges of Compensation Claims within the

24  Department of Labor and Employment Security.

25         2.  In lieu of participating in the Senior Management

26  Service Class, a judge of compensation claims may participate

27  in the Senior Management Service Optional Annuity Program

28  established under subsection (6).

29         (j)(i)  Except as may otherwise be provided, any member

30  of the Senior Management Service Class may purchase additional

31  retirement credit in such class for creditable service within


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                                           HB 885, First Engrossed



  1  the purview of the Senior Management Service Class retroactive

  2  to February 1, 1987, and may upgrade retirement credit for

  3  such service, to the extent of 2 percent of the member's

  4  average monthly compensation as specified in paragraph (4)(d)

  5  for such service. Contributions for upgrading the additional

  6  Senior Management Service credit pursuant to this paragraph

  7  shall be equal to the difference in the contributions paid and

  8  the Senior Management Service Class contribution rate as a

  9  percentage of gross salary in effect for the period being

10  claimed, plus interest thereon at the rate of 6.5 percent a

11  year, compounded annually until the date of payment. This

12  service credit may be purchased by the employer on behalf of

13  the member.

14         Section 3.  This act shall take effect July 1, 1999.

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