House Bill 0099

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    Florida House of Representatives - 2000                  HB 99

        By Representatives Fiorentino and Fasano






  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"; amending s. 121.091, F.S.;

  6         revising method of calculating average final

  7         compensation; upgrading service credit for

  8         certain years for special risk members;

  9         providing for a declaration of important state

10         interest; providing an effective date.

11

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

13

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

15  Statutes, is amended to read:

16         121.021  Definitions.--The following words and phrases

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

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

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

20  the 3 5 highest fiscal years of compensation for creditable

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

22  in-line-of-duty disability benefits, if less than 3 5 years of

23  creditable service have been completed, the term "average

24  final compensation" means the average annual compensation of

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

26  used in the calculation of average final compensation shall

27  commence on July 1.

28         (a)  The average final compensation shall include:

29         1.  Accumulated annual leave payments, not to exceed

30  500 hours; and

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    Florida House of Representatives - 2000                  HB 99

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  1         2.  All payments defined as compensation in subsection

  2  (22).

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

  4         1.  Compensation paid to professional persons for

  5  special or particular services;

  6         2.  Payments for accumulated sick leave made due to

  7  retirement or termination;

  8         3.  Payments for accumulated annual leave in excess of

  9  500 hours;

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

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

12  1990; or

13         6.  Fringe benefits (for example, automobile allowances

14  or housing allowances).

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

16  section 121.091, Florida Statutes, are 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         (1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or

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

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    Florida House of Representatives - 2000                  HB 99

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  1  the administrator, shall receive a monthly benefit which shall

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

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

  4  thereafter during his or her lifetime. The normal retirement

  5  benefit, including any past or additional retirement credit,

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

  7  The amount of monthly benefit shall be calculated as the

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

  9  applicable, as set forth below:

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

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

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

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

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

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

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

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

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

19  final compensation.

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

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

22  compensation for all creditable years prior to October 1,

23  1974;

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

25  compensation for all creditable years after September 30,

26  1974, and before October 1, 1978;

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

28  compensation for all creditable years after September 30,

29  1978, and before January 1, 1989;

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

  2  monthly compensation for all creditable years after December

  3  31, 1988, and before January 1, 1990;

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

  5  final compensation for all creditable years after December 31,

  6  1989, and before January 1, 1991;

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

  8  final compensation for all creditable years after December 31,

  9  1990, and before January 1, 1992;

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

11  average final compensation for all creditable years after

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

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

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

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

16  compensation for all creditable years of service after

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

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

19         3.  For creditable years of Senior Management Service

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

21         4.  For creditable years of Elected Officers' Class

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

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

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

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

26  average final compensation;

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

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

29  highest fiscal years' salaries, calculated as provided by

30  rule.

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    Florida House of Representatives - 2000                  HB 99

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  1         Section 3.  The Legislature finds that a proper and

  2  legitimate state purpose is served when employees and retirees

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

  4  dependents, survivors, and beneficiaries of such employees and

  5  retirees, are extended the basic protections afforded by

  6  governmental retirement systems that provide fair and adequate

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

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

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

10  Florida Statutes. Therefore, the Legislature hereby determines

11  and declares that the provisions of this act fulfill an

12  important state interest.

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

14  provided that the provisions of this act which provide for

15  additional benefit improvements shall not take effect until

16  legislation is enacted to properly fund such benefit

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

18  Constitution.

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20            *****************************************

21                          HOUSE SUMMARY

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

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