Senate Bill 0094c1

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    Florida Senate - 2000                             CS for SB 94

    By the Committee on Fiscal Policy and Senator Brown-Waite





    309-1671-00

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.091, F.S.; increasing

  4         the disability retirement benefit for members

  5         of the special risk class; providing for

  6         contribution-rate increases to fund this act;

  7         directing the Division of Statutory Revision to

  8         adjust contribution rates set forth in s.

  9         121.071, F.S.; declaring that this act fulfills

10         an important state interest; providing an

11         effective date.

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

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15         Section 1.  Paragraph (f) of subsection (4) of section

16  121.091, Florida Statutes, is amended to read:

17         121.091  Benefits payable under the system.--Benefits

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

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

20  begun participation in the Deferred Retirement Option Program

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

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

23  department may cancel an application for retirement benefits

24  when the member or beneficiary fails to timely provide the

25  information and documents required by this chapter and the

26  department's rules. The department shall adopt rules

27  establishing procedures for application for retirement

28  benefits and for the cancellation of such application when the

29  required information or documents are not received.

30         (4)  DISABILITY RETIREMENT BENEFIT.--

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    Florida Senate - 2000                             CS for SB 94
    309-1671-00




  1         (f)  Computation of disability retirement benefit.--The

  2  amount of each monthly payment shall be computed in the same

  3  manner as for a normal retirement benefit, in accordance with

  4  subsection (1), but shall be based on disability option

  5  actuarial equivalency tables and the average monthly

  6  compensation and creditable service of the member as of the

  7  disability retirement date, subject to the following

  8  conditions:

  9         1.  If the member's disability occurred in the line of

10  duty, the monthly Option 1 benefit shall not be less than:

11         a.  Forty-two 42 percent of average monthly

12  compensation as of the disability retirement date; or

13         b.  Sixty-five percent of the average monthly

14  compensation as of the disability retirement date for a member

15  of the special risk class who retires on or after July 1,

16  2000; or

17         2.  If the member's disability occurred other than in

18  the line of duty, the monthly Option 1 benefit shall not be

19  less than 25 percent of average monthly compensation as of the

20  disability retirement date.

21         Section 2.  Effective July 1, 2000, in order to fund

22  the benefits provided under section 1 of this act:

23         (1)  The contribution rates that apply to the Special

24  Risk Class of the Florida Retirement System shall be increased

25  by 0.13 percentage points; and

26         (2)  The contribution rates that apply to the Special

27  Risk Administrative Support Class of the Florida Retirement

28  System shall be increased by 0.21 percentage points.

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30  These increases shall be in addition to all other changes to

31  such contribution rates which may be enacted into law to take

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    Florida Senate - 2000                             CS for SB 94
    309-1671-00




  1  effect on that date. The Division of Statutory Revision is

  2  directed to adjust accordingly the contribution rates set

  3  forth in section 121.071, Florida Statutes.

  4         Section 3.  The Legislature finds that a proper and

  5  legitimate state purpose is served when employees and retirees

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

  7  dependents, survivors, and beneficiaries of such employees and

  8  retirees, are extended the basic protections afforded by

  9  governmental retirement systems that provide fair and adequate

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

11  actuarially sound manner, as required by Section 14, Article X

12  of the State Constitution and part VII of chapter 112, Florida

13  Statutes. Therefore, the Legislature determines and declares

14  that this act fulfills an important state interest.

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

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17          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
18                              sb0094

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20  Clarifies that the improved disability benefits are for those
    members of the special risk class that retire on or after July
21  1, 2000.

22  Provides an effective date of July 1, 2000.

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