HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
CHAMBER ACTION
Senate House
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11 Representative(s) Murman offered the following:
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13 Amendment (with title amendment)
14 On page 15, line 1 through page 15, line 24
15 remove from the bill: all of said lines
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17 and insert in lieu thereof:
18 121.35 Optional retirement program for the State
19 University System.--
20 (4) CONTRIBUTIONS.--
21 (a) Through June 30, 2001, each employer shall
22 contribute on behalf of each participant in the optional
23 retirement program an amount equal to the normal cost portion
24 of the employer retirement contribution which would be
25 required if the participant were a regular member of the
26 Florida Retirement System defined benefit program, plus the
27 portion of the contribution rate required in s. 112.363(8)
28 that would otherwise be assigned to the Retiree Health
29 Insurance Subsidy Trust Fund. Effective July 1, 2001, each
30 employer shall contribute on behalf of each participant in the
31 optional program an amount equal to 10.43 percent of the
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 participant's gross monthly compensation. The department
2 shall deduct, less an amount approved by the Legislature which
3 shall be deducted by the department to provide for the
4 administration of this program. The payment of the
5 contributions to the optional program which is required by
6 this paragraph for each participant shall be made by the
7 employer to the department, which shall forward the
8 contributions to the designated company or companies
9 contracting for payment of benefits for the participant under
10 the program. However, such contributions paid on behalf of an
11 employee described in paragraph (3)(c) shall not be forwarded
12 to a company and shall not begin to accrue interest until the
13 employee has executed an annuity contract and notified the
14 department.
15 Section 6. Paragraph (c) of subsection (2) of section
16 121.051, Florida Statutes, is amended to read:
17 121.051 Participation in the system.--
18 (2) OPTIONAL PARTICIPATION.--
19 (c) Employees of members of the Florida Community
20 College System or charter technical career centers sponsored
21 by members of the Florida Community College System, as
22 designated in s. 240.3031, who are members of the Regular
23 Class of the Florida Retirement System and who comply with the
24 criteria set forth in this paragraph and in s. 240.3195 may
25 elect, in lieu of participating in the Florida Retirement
26 System, to withdraw from the Florida Retirement System
27 altogether and participate in a lifetime monthly annuity
28 program, to be known as the State Community College System
29 Optional Retirement Program, which may be provided by the
30 employing agency under s. 240.3195. Pursuant thereto:
31 1. Through June 30, 2001, the cost to the employer for
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 such annuity shall equal the normal cost portion of the
2 employer retirement contribution which would be required if
3 the employee were a member of the Regular Class defined
4 benefit program, plus the portion of the contribution rate
5 required by s. 112.363(8) that would otherwise be assigned to
6 the Retiree Health Insurance Subsidy Trust Fund. Effective
7 July 1, 2001, each employer shall contribute on behalf of each
8 participant in the optional program an amount equal to 10.43
9 percent of the participant's gross monthly compensation. The
10 employer shall deduct, and less an amount approved by the
11 employer to provide for the administration of the optional
12 retirement program. The employer providing such annuity shall
13 contribute an additional amount to the Florida Retirement
14 System Trust Fund equal to the unfunded actuarial accrued
15 liability portion of the Regular Class contribution rate.
16 2. The decision to participate in such an optional
17 retirement program shall be irrevocable for as long as the
18 employee holds a position eligible for participation. Any
19 service creditable under the Florida Retirement System shall
20 be retained after the member withdraws from the Florida
21 Retirement System; however, additional service credit in the
22 Florida Retirement System shall not be earned while a member
23 of the optional retirement program.
24 3. Participation in an optional annuity program shall
25 be limited to those employees who satisfy the following
26 eligibility criteria:
27 a. The employee must be otherwise eligible for
28 membership in the Regular Class of the Florida Retirement
29 System, as provided in s. 121.021(11) and (12).
30 b. The employee must be employed in a full-time
31 position classified in the Accounting Manual for Florida's
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 Public Community Colleges as:
2 (I) Instructional; or
3 (II) Executive Management, Instructional Management,
4 or Institutional Management, if a community college determines
5 that recruiting to fill a vacancy in the position is to be
6 conducted in the national or regional market, and:
7 (A) The duties and responsibilities of the position
8 include either the formulation, interpretation, or
9 implementation of policies; or
10 (B) The duties and responsibilities of the position
11 include the performance of functions that are unique or
12 specialized within higher education and that frequently
13 involve the support of the mission of the community college.
14 c. The employee must be employed in a position not
15 included in the Senior Management Service Class of the Florida
16 Retirement System, as described in s. 121.055.
17 4. Participants in the program are subject to the same
18 reemployment limitations, renewed membership provisions, and
19 forfeiture provisions as are applicable to regular members of
20 the Florida Retirement System under ss. 121.091(9), 121.122,
21 and 121.091(5), respectively.
22 5. Eligible community college employees shall be
23 compulsory members of the Florida Retirement System until,
24 pursuant to the procedures set forth in s. 240.3195, the first
25 day of the next full calendar month following the filing of
26 both a written election to withdraw and a completed
27 application for an individual contract or certificate with the
28 program administrator and receipt of such election by the
29 division.
30 Section 7. Paragraph (d) of subsection (6) of section
31 121.055, Florida Statutes, is amended to read:
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 121.055 Senior Management Service Class.--There is
2 hereby established a separate class of membership within the
3 Florida Retirement System to be known as the "Senior
4 Management Service Class," which shall become effective
5 February 1, 1987.
6 (6)
7 (d) Contributions.--
8 1. Through June 30, 2001, each employer shall
9 contribute on behalf of each participant in the Senior
10 Management Service Optional Annuity Program an amount equal to
11 the normal cost portion of the employer retirement
12 contribution which would be required if the participant were a
13 Senior Management Service Class member of the Florida
14 Retirement System defined benefit program, plus the portion of
15 the contribution rate required in s. 112.363(8) that would
16 otherwise be assigned to the Retiree Health Insurance Subsidy
17 Trust Fund. Effective July 1, 2001, each employer shall
18 contribute on behalf of each participant in the optional
19 program an amount equal to 12.49 percent of the participant's
20 gross monthly compensation. The department shall deduct, less
21 an amount approved by the Legislature which shall be deducted
22 by the department to provide for the administration of this
23 program. The payment of the contributions to the optional
24 program which is required by this subparagraph for each
25 participant shall be made by the employer to the department,
26 which shall forward the contributions to the designated
27 company or companies contracting for payment of benefits for
28 the participant under the program.
29 2. Each employer shall contribute on behalf of each
30 participant in the Senior Management Service Optional Annuity
31 Program an amount equal to the unfunded actuarial accrued
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 liability portion of the employer contribution which would be
2 required for members of the Senior Management Service Class in
3 the Florida Retirement System. This contribution shall be
4 paid to the department for transfer to the Florida Retirement
5 System Trust Fund.
6 3. An Optional Annuity Program Trust Fund shall be
7 established in the State Treasury and administered by the
8 department to make payments to provider companies on behalf of
9 the optional annuity program participants, and to transfer the
10 unfunded liability portion of the state optional annuity
11 program contributions to the Florida Retirement System Trust
12 Fund.
13 4. Contributions required for social security by each
14 employer and each participant, in the amount required for
15 social security coverage as now or hereafter may be provided
16 by the federal Social Security Act shall be maintained for
17 each participant in the Senior Management Service retirement
18 program and shall be in addition to the retirement
19 contributions specified in this paragraph.
20 5. Each participant in the Senior Management Service
21 Optional Annuity Program may contribute by way of salary
22 reduction or deduction a percentage amount of the
23 participant's gross compensation not to exceed the percentage
24 amount contributed by the employer to the optional annuity
25 program. Payment of the participant's contributions shall be
26 made by the employer to the department, which shall forward
27 the contributions to the designated company or companies
28 contracting for payment of benefits for the participant under
29 the program.
30 Section 8. Paragraph (a) of subsection (4) of section
31 240.3195, Florida Statutes, is amended to read:
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HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 240.3195 State Community College System Optional
2 Retirement Program.--Each community college may implement an
3 optional retirement program, if such program is established
4 therefor pursuant to s. 240.319(4)(r), under which annuity
5 contracts providing retirement and death benefits may be
6 purchased by, and on behalf of, eligible employees who
7 participate in the program. Except as otherwise provided
8 herein, this retirement program, which shall be known as the
9 State Community College System Optional Retirement Program,
10 may be implemented and administered only by an individual
11 community college or by a consortium of community colleges.
12 (4)(a) Through June 30, 2001, each college must
13 contribute on behalf of each program participant an amount
14 equal to the normal cost portion of the employer retirement
15 contribution which would be required if the program
16 participant were a member of the Regular Class of the Florida
17 Retirement System as provided in s. 121.071, plus the portion
18 of the contribution rate required in s. 112.363(8) that would
19 otherwise be assigned to the Retiree Health Insurance Subsidy
20 Trust Fund Effective July 1, 2001, each college must
21 contribute on behalf of each program participant an amount
22 equal to 10.43 percent of the participant's gross monthly
23 compensation. The college shall deduct, and less an amount
24 approved by the community college to provide for the
25 administration of the optional retirement program. Payment of
26 this contribution must be made either directly by the
27 community college or through the program administrator to the
28 designated company contracting for payment of benefits to the
29 program participant.
30 (b) Each community college must contribute on behalf
31 of each program participant an amount equal to the unfunded
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hap0008 11:26 am 01821-0056-562937
HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 actuarial accrued liability portion of the employer
2 contribution which would be required if the program
3 participant were a member of the Regular Class of the Florida
4 Retirement System. Payment of this contribution must be made
5 directly by the college to the department for deposit in the
6 Florida Retirement System Trust Fund.
7 (c) Each program participant who has executed an
8 annuity contract may contribute by way of salary reduction or
9 deduction a percentage of the program participant's gross
10 compensation, but this percentage may not exceed the
11 corresponding percentage contributed by the community college
12 to the optional retirement program. Payment of this
13 contribution may be made either directly by the college or
14 through the program administrator to the designated company
15 contracting for payment of benefits to the program
16 participant.
17 (d) Contributions to an optional retirement program by
18 a college or a program participant are in addition to, and
19 have no effect upon, contributions required now or in future
20 by the federal Social Security Act.
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23 ================ T I T L E A M E N D M E N T ===============
24 And the title is amended as follows:
25 On page l, lines 6 through 9,
26 remove from the title of the bill: all of said lines
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28 and insert in lieu thereof:
29 subclasses; amending ss. 121.35, 121.051,
30 121.055, and 240.3195, F.S.; changing employer
31 contribution rates for participants in the
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hap0008 11:26 am 01821-0056-562937
HOUSE AMENDMENT
Bill No. HB 1821 Barcode 562937
Amendment No. 1 (for drafter's use only)
1 State University System optional retirement
2 program, the Community College optional
3 retirement program, and the Senior Management
4 Service optional annuity program; providing
5 legislative intent
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