House Bill 0191

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    Florida House of Representatives - 2000                 HB 191

        By Representative Fiorentino






  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.021, F.S.; revising the

  4         definition of the term "average final

  5         compensation" with respect to members of the

  6         special risk class; amending s. 121.091, F.S.;

  7         revising method of calculating average final

  8         compensation; upgrading service credit for

  9         certain years for special risk members;

10         providing for a declaration of important state

11         interest; providing an effective date.

12

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

14

15         Section 1.  Subsection (24) of section 121.021, Florida

16  Statutes, is amended to read:

17         121.021  Definitions.--The following words and phrases

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

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

20         (24)(a)  "Average final compensation" means the average

21  of the 5 highest fiscal years of compensation for creditable

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

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

24  creditable service have been completed, the term "average

25  final compensation" means the average annual compensation of

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

27  used in the calculation of average final compensation shall

28  commence on July 1.

29         (1)(a)  The average final compensation shall include:

30         a.1.  Accumulated annual leave payments, not to exceed

31  500 hours; and

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  1         b.2.  All payments defined as compensation in

  2  subsection (22).

  3         (2)(b)  The average final compensation shall not

  4  include:

  5         a.1.  Compensation paid to professional persons for

  6  special or particular services;

  7         b.2.  Payments for accumulated sick leave made due to

  8  retirement or termination;

  9         c.3.  Payments for accumulated annual leave in excess

10  of 500 hours;

11         d.4.  Bonuses as defined in subsection (47);

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

13  1990; or

14         f.6.  Fringe benefits (for example, automobile

15  allowances or housing allowances).

16         (b)  "Average final compensation"  with respect to

17  members of the special risk class means the average of the 3

18  highest fiscal years of compensation for creditable service

19  prior to retirement, termination, or death.  For

20  in-line-of-duty disability benefits, if less than 3 years of

21  creditable service have been completed, the term "average

22  final compensation" means the average annual compensation of

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

24  used in the calculation of average final compensation shall

25  commence on July 1.

26         (1)  The average final compensation shall include:

27         a.  Accumulated annual leave payments, not to exceed

28  500 hours; and

29         b.  All payments defined as compensation in subsection

30  (22).

31         (2)  The average final compensation shall not include:

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    Florida House of Representatives - 2000                 HB 191

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  1         a.  Compensation paid to professional persons for

  2  special or particular services;

  3         b.  Payments for accumulated sick leave made due to

  4  retirement or termination;

  5         c.  Payments for accumulated annual leave in excess of

  6  500 hours;

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

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

  9  1990; or

10         f.  Fringe benefits (for example, automobile allowances

11  or housing allowances).

12         Section 2.  Paragraphs (a) and (d) of subsection (1) of

13  section 121.091, Florida Statutes, are amended to read:

14         121.091  Benefits payable under the system.--Benefits

15  may not be paid under this section unless the member has

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

17  begun participation in the Deferred Retirement Option Program

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

19  been filed in the manner prescribed by the department. The

20  department may cancel an application for retirement benefits

21  when the member or beneficiary fails to timely provide the

22  information and documents required by this chapter and the

23  department's rules. The department shall adopt rules

24  establishing procedures for application for retirement

25  benefits and for the cancellation of such application when the

26  required information or documents are not received.

27         (1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or

28  her normal retirement date, the member, upon application to

29  the administrator, shall receive a monthly benefit which shall

30  begin to accrue on the first day of the month of retirement

31  and be payable on the last day of that month and each month

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    Florida House of Representatives - 2000                 HB 191

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  1  thereafter during his or her lifetime. The normal retirement

  2  benefit, including any past or additional retirement credit,

  3  may not exceed 100 percent of the average final compensation.

  4  The amount of monthly benefit shall be calculated as the

  5  product of A and B, subject to the adjustment of C, if

  6  applicable, as set forth below:

  7         (a)1.  For creditable years of Regular Class service, A

  8  is 1.60 percent of the member's average final compensation, up

  9  to the member's normal retirement date. Upon completion of the

10  first year after the normal retirement date, A is 1.63 percent

11  of the member's average final compensation.  Following the

12  second year after the normal retirement date, A is 1.65

13  percent of the member's average final compensation. Following

14  the third year after the normal retirement date, and for

15  subsequent years, A is 1.68 percent of the member's average

16  final compensation.

17         2.  For creditable years of special risk service, A is:

18         a.  Two percent of the member's average final

19  compensation for all creditable years prior to October 1,

20  1974;

21         b.  Three percent of the member's average final

22  compensation for all creditable years after September 30,

23  1974, and before October 1, 1978;

24         c.  Two percent of the member's average final

25  compensation for all creditable years after September 30,

26  1978, and before January 1, 1989;

27         d.  Two and two-tenths percent of the member's final

28  monthly compensation for all creditable years after December

29  31, 1988, and before January 1, 1990;

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  1         e.  Two and four-tenths percent of the member's average

  2  final compensation for all creditable years after December 31,

  3  1989, and before January 1, 1991;

  4         f.  Two and six-tenths percent of the member's average

  5  final compensation for all creditable years after December 31,

  6  1990, and before January 1, 1992;

  7         g.  Two and eight-tenths percent of the member's

  8  average final compensation for all creditable years after

  9  December 31, 1991, and before January 1, 1993; and

10         h.  Three percent of the member's average final

11  compensation for all creditable years after December 31, 1992;

12  and

13         i.  Three percent of the member's average final

14  compensation for all creditable years of service after

15  September 30, 1978, and before January 1, 1993, for any

16  special risk member who retires after July 1, 2000.

17         3.  For creditable years of Senior Management Service

18  Class service after January 31, 1987, A is 2 percent;

19         4.  For creditable years of Elected Officers' Class

20  service as a Supreme Court Justice, district court of appeal

21  judge, circuit judge, or county court judge, A is 3 1/3

22  percent of the member's average final compensation, and for

23  all other creditable service in such class, A is 3 percent of

24  average final compensation;

25         (d)  A member's average final compensation shall be

26  determined by formula to obtain the coverage for the 3 5

27  highest fiscal years' salaries, calculated as provided by

28  rule.

29         Section 3.  The Legislature finds that a proper and

30  legitimate state purpose is served when employees and retirees

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

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    Florida House of Representatives - 2000                 HB 191

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  1  dependents, survivors, and beneficiaries of such employees and

  2  retirees, are extended the basic protections afforded by

  3  governmental retirement systems that provide fair and adequate

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

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

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

  7  Florida Statutes. Therefore, the Legislature hereby determines

  8  and declares that the provisions of this act fulfill an

  9  important state interest.

10         Section 4.  This act shall take effect July 1, 2000,

11  provided that the provisions of this act which provide for

12  additional benefit improvements shall not take effect until

13  legislation is enacted to properly fund such benefit

14  improvement as required by section 14, Article X, of the State

15  Constitution.

16

17            *****************************************

18                          HOUSE SUMMARY

19
      Revises the definition of the term "average final
20    compensation" with respect to special risk members for
      the purposes of the Florida Retirement System to provide
21    for calculation based upon the 3 highest fiscal years of
      compensation.  Provides for upgraded service credit for
22    certain years for special risk members. See bill for
      details.
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