House Bill hb1821
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Florida House of Representatives - 2001 HB 1821
By the Fiscal Responsibility Council and Representatives
Murman, Byrd, Ball, Bense, Cantens, Alexander, Maygarden,
Dockery, Greenstein, Kosmas, Crow, Kendrick, Gottlieb, Ryan,
Lynn and Attkisson
1 A bill to be entitled
2 An act relating to state retirement
3 contributions; amending ss. 121.052, 121.055,
4 121.071, and 121.40, F.S.; changing
5 contribution rates for specified classes and
6 subclasses; amending s. 121.35, F.S.; changing
7 contribution rates for participants in the
8 optional retirement program of the State
9 University System; providing legislative
10 intent; recognizing excess actuarial assets to
11 fund costs and rate reductions; reducing
12 certain contribution rates; repealing
13 subsection (2) of s. 20 of ch. 2000-169, Laws
14 of Florida, relating to increasing
15 contributions rates; providing a finding of
16 important state interest; providing an
17 effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Paragraph (a) of subsection (7) of section
22 121.052, Florida Statutes, is amended to read:
23 121.052 Membership class of elected officers.--
24 (7) CONTRIBUTIONS.--
25 (a) The following table states the required retirement
26 contribution rates for members of the Elected Officers' Class
27 and their employers in terms of a percentage of the member's
28 gross compensation. A change in a contribution rate is
29 effective with the first salary paid on or after the beginning
30 date of the change. Contributions shall be made or deducted as
31 may be appropriate for each pay period and are in addition to
1
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1 the contributions required for social security and the Retiree
2 Health Insurance Subsidy Trust Fund.
3
4 Dates of Contribution
5 Rate Changes Members Employers
6
7 July 1, 1972, through September 30, 1977
8 Legislators 8% 8%
9 All Other Members 8% 8%
10
11 October 1, 1977, through September 30, 1978
12 Legislators 8% 8%
13 All Other Members 4% 12%
14
15 October 1, 1978, through September 30, 1979
16 Legislators 8% 10.57%
17 All Other Members 4% 16.78%
18
19 October 1, 1979, through September 30, 1981
20 Legislators 8% 10.57%
21 Governor, Lt. Governor, Cabinet
22 Officers 4% 16.78%
23 All Other Members 0% 20.78%
24
25 July 1, 1981, through June 30, 1984
26 County Elected Officers 0% 19.30%
27
28 July 1, 1984, through September 30, 1984
29 County Elected Officers 0% 20.25%
30
31 October 1, 1981, through September 30, 1984
2
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1 Legislators 0% 19.30%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 21.03%
4 State Attorneys, Public Defenders 0% 20.95%
5 Justices, Judges 0% 22.55%
6
7 October 1, 1984, through September 30, 1986
8 Legislators 0% 10.98%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 10.98%
11 State Attorneys, Public Defenders 0% 10.98%
12 Justices, Judges 0% 21.79%
13 County Elected Officers 0% 16.97%
14
15 October 1, 1986, through December 31, 1988
16 Legislators 0% 11.50%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 11.50%
19 State Attorneys, Public Defenders 0% 11.50%
20 Justices, Judges 0% 20.94%
21 County Elected Officers 0% 17.19%
22
23 January 1, 1989, through December 31, 1989
24 Legislators 0% 13.70%
25 Governor, Lt. Governor, Cabinet
26 Officers 0% 13.70%
27 State Attorneys, Public Defenders 0% 13.70%
28 Justices, Judges 0% 22.58%
29 County Elected Officers 0% 18.44%
30
31 January 1, 1990, through December 31, 1990
3
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1 Legislators 0% 15.91%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 15.91%
4 State Attorneys, Public Defenders 0% 15.91%
5 Justices, Judges 0% 24.22%
6 County Elected Officers 0% 19.71%
7
8 January 1, 1991, through December 31, 1991
9 Legislators 0% 17.73%
10 Governor, Lt. Governor, Cabinet
11 Officers 0% 17.73%
12 State Attorneys, Public Defenders 0% 17.73%
13 Justices, Judges 0% 26.63%
14 County Elected Officers 0% 23.32%
15
16 January 1, 1992, through December 31, 1992
17 Legislators 0% 19.94%
18 Governor, Lt. Governor, Cabinet
19 Officers 0% 19.94%
20 State Attorneys, Public Defenders 0% 19.94%
21 Justices, Judges 0% 28.27%
22 County Elected Officers 0% 24.59%
23
24 January 1, 1993, through December 31, 1993
25 Legislators 0% 22.14%
26 Governor, Lt. Governor, Cabinet
27 Officers 0% 22.14%
28 State Attorneys, Public Defenders 0% 22.14%
29 Justices, Judges 0% 29.91%
30 County Elected Officers 0% 25.84%
31
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1 January 1, 1994, through December 31, 1994
2 Legislators 0% 22.65%
3 Governor, Lt. Governor, Cabinet
4 Officers 0% 22.65%
5 State Attorneys, Public Defenders 0% 22.65%
6 Justices, Judges 0% 30.52%
7 County Elected Officers 0% 26.07%
8
9 January 1, 1995, through December 31, 1995
10 Legislators 0% 22.80%
11 Governor, Lt. Governor, Cabinet
12 Officers 0% 22.80%
13 State Attorneys, Public Defenders 0% 22.80%
14 Justices, Judges 0% 30.21%
15 County Elected Officers 0% 27.48%
16
17 January 1, 1996, through June 30, 1996
18 Legislators 0% 22.90%
19 Governor, Lt. Governor, Cabinet
20 Officers 0% 22.90%
21 State Attorneys, Public Defenders 0% 22.90%
22 Justices, Judges 0% 30.15%
23 County Elected Officers 0% 27.54%
24
25 July 1, 1996, through June 30, 1998
26 Legislators 0% 23.07%
27 Governor, Lt. Governor, Cabinet
28 Officers 0% 23.07%
29 State Attorneys, Public Defenders 0% 23.07%
30 Justices, Judges 0% 29.55%
31 County Elected Officers 0% 27.33%
5
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1
2 July 1, 1998, through June 30, 1999
3 Legislators 0% 22.33%
4 Governor, Lt. Governor, Cabinet
5 Officers 0% 22.33%
6 State Attorneys, Public Defenders 0% 22.33%
7 Justices, Judges 0% 27.21%
8 County Elected Officers 0% 26.99%
9
10 Effective July 1, 1999, through
11 June 30, 2001
12 Legislators 0% 14.31%
13 Governor, Lt. Governor, Cabinet
14 Officers 0% 14.31%
15 State Attorneys, Public Defenders 0% 14.31%
16 Justices, Judges 0% 20.48%
17 County Elected Officers 0% 17.05%
18
19 Effective July 1, 2001
20 Legislators 0% 15.14%
21 Governor, Lt. Governor, Cabinet
22 Officers 0% 15.14%
23 State Attorneys, Public Defenders 0% 15.14%
24 Justices, Judges 0% 20.61%
25 County Elected Officers 0% 17.61%
26
27 Section 2. Paragraph (a) of subsection (3) of section
28 121.055, Florida Statutes, is amended to read:
29 121.055 Senior Management Service Class.--There is
30 hereby established a separate class of membership within the
31 Florida Retirement System to be known as the "Senior
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1 Management Service Class," which shall become effective
2 February 1, 1987.
3 (3)(a) The following table states the required
4 retirement contribution rates for members of the Senior
5 Management Service Class and their employers in terms of a
6 percentage of the member's gross compensation. A change in the
7 contribution rate is effective with the first salary paid on
8 or after the beginning date of the change. Contributions
9 shall be made for each pay period and are in addition to the
10 contributions required for social security and the Retiree
11 Health Insurance Subsidy Trust Fund.
12
13 Dates of Contribution
14 Rate Changes Members Employers
15
16 February 1, 1987, through
17 December 31, 1988 0% 13.88%
18 January 1, 1989, through
19 December 31, 1989 0% 14.95%
20 January 1, 1990, through
21 December 31, 1990 0% 16.04%
22 January 1, 1991, through
23 December 31, 1991 0% 18.39%
24 January 1, 1992, through
25 December 31, 1992 0% 19.48%
26 January 1, 1993, through
27 December 31, 1993 0% 20.55%
28 January 1, 1994, through
29 December 31, 1994 0% 23.07%
30 January 1, 1995, through
31 December 31, 1995 0% 23.88%
7
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1 January 1, 1996, through
2 June 30, 1996 0% 24.14%
3 July 1, 1996, through
4 June 30, 1998 0% 21.58%
5 July 1, 1998, through
6 June 30, 1999 0% 23.10%
7 Effective July 1, 1999, through
8 June 30, 2001 0% 11.19%
9 Effective July 1, 2001 0% 11.73%
10
11 Section 3. Subsection (1) of section 121.071, Florida
12 Statutes, is amended to read:
13 121.071 Contributions.--Contributions to the system
14 shall be made as follows:
15 (1) The following tables state the required retirement
16 contribution rates for members of the Regular Class, Special
17 Risk Class, or Special Risk Administrative Support Class and
18 their employers in terms of a percentage of the member's gross
19 compensation. A change in a contribution rate is effective
20 with the first salary paid on or after the beginning date of
21 the change. Contributions shall be made or deducted as may be
22 appropriate for each pay period and are in addition to the
23 contributions required for social security and the Retiree
24 Health Insurance Subsidy Trust Fund.
25 (a) Retirement contributions for regular members are
26 as follows:
27
28 Dates of Contribution
29 Rate Changes Members Employers
30
31
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1
2 December 1, 1970, through December
3 31, 1974, for state agencies, state
4 universities, community colleges,
5 and district school boards 4% 4%
6
7 December 1, 1970, through September
8 30, 1975, for all other local
9 government agencies 4% 4%
10
11 January 1, 1975, through September
12 30, 1978, for state agencies and
13 state universities 0% 9%
14
15 January 1, 1975, through July 31,
16 1978, for community colleges and
17 district school boards 0% 9%
18
19 October 1, 1975, through September
20 30, 1978, for all other local
21 government agencies 0% 9%
22
23 August 1, 1978, through September 30,
24 1981, for community colleges and
25 district school boards 0% 9.1%
26
27 October 1, 1978, through September
28 30, 1981, for all other agencies 0% 9.1%
29
30 October 1, 1981, through
31 September 30, 1984 0% 10.93%
9
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1 October 1, 1984, through
2 September 30, 1986 0% 12.24%
3 October 1, 1986, through
4 December 31, 1988 0% 13.14%
5 January 1, 1989, through
6 December 31, 1989 0% 13.90%
7 January 1, 1990, through
8 December 31, 1990 0% 14.66%
9 January 1, 1991, through
10 December 31, 1991 0% 15.72%
11 January 1, 1992, through
12 December 31, 1992 0% 16.51%
13 January 1, 1993, through
14 December 31, 1993 0% 17.27%
15 January 1, 1994, through
16 December 31, 1994 0% 17.10%
17 January 1, 1995, through
18 December 31, 1995 0% 16.91%
19 January 1, 1996, through
20 June 30, 1996 0% 17.00%
21 July 1, 1996, through
22 June 30, 1998 0% 16.77%
23 July 1, 1998, through
24 June 30, 1999 0% 15.51%
25 Effective July 1, 1999, through
26 June 30, 2001 0% 9.21%
27 Effective July 1, 2001 0% 9.91%
28
29 (b) Retirement contributions for special risk members
30 are as follows:
31
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1 Dates of Contribution
2 Rate Changes Members Employers
3
4 December 1, 1970, through
5 September 30, 1974 6% 6%
6
7 October 1, 1974, through December 31,
8 1974, for state agencies, state
9 universities, community colleges,
10 and district school boards 8% 8%
11
12 October 1, 1974, through September
13 30, 1975, for all other local
14 government agencies 8% 8%
15
16 January 1, 1975, through September
17 30, 1978, for state agencies, state
18 universities, community colleges,
19 and district school boards 0% 13%
20
21 October 1, 1975, through September
22 30, 1978, for other local
23 government agencies 0% 13%
24
25 October 1, 1978, through
26 September 30, 1981 0% 13.95%
27 October 1, 1981, through
28 September 30, 1984 0% 13.91%
29 October 1, 1984, through
30 September 30, 1986 0% 14.67%
31 October 1, 1986, through
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1 December 31, 1988 0% 15.11%
2 January 1, 1989, through
3 December 31, 1989 0% 17.50%
4 January 1, 1990, through
5 December 31, 1990 0% 19.90%
6 January 1, 1991, through
7 December 31, 1991 0% 25.52%
8 January 1, 1992, through
9 December 31, 1992 0% 26.35%
10 January 1, 1993, through
11 December 31, 1993 0% 27.14%
12 January 1, 1994, through
13 December 31, 1994 0% 27.03%
14 January 1, 1995, through
15 December 31, 1995 0% 26.83%
16 January 1, 1996, through
17 June 30, 1996 0% 26.84%
18 July 1, 1996, through
19 June 30, 1998 0% 26.44%
20 July 1, 1998, through
21 June 30, 1999 0% 24.38%
22 July 1, 1999, through
23 June 30, 2000 0% 20.22%
24 Effective July 1, 2000, through
25 June 30, 2001 0% 20.35%
26 Effective July 1, 2001 0% 22.07%
27
28 (c) Retirement contributions for special risk
29 administrative support members are as follows:
30
31
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1 Dates of Contribution
2 Rate Changes Members Employers
3
4 July 1, 1982, through
5 September 30, 1984 0% 11.14%
6 October 1, 1984, through
7 September 30, 1986 0% 13.09%
8 October 1, 1986, through
9 December 31, 1988 0% 15.44%
10 January 1, 1989, through
11 December 31, 1989 0% 14.76%
12 January 1, 1990, through
13 December 31, 1990 0% 14.09%
14 January 1, 1991, through
15 December 31, 1991 0% 20.16%
16 January 1, 1992, through
17 December 31, 1992 0% 19.51%
18 January 1, 1993, through
19 December 31, 1993 0% 18.83%
20 January 1, 1994, through
21 December 31, 1994 0% 18.59%
22 January 1, 1995, through
23 December 31, 1995 0% 17.81%
24 January 1, 1996, through
25 June 30, 1996 0% 17.80%
26 July 1, 1996, through
27 June 30, 1998 0% 17.20%
28 July 1, 1998, through
29 June 30, 1999 0% 14.64%
30 July 1, 1999, through
31 June 30, 2000 0% 11.53%
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1 Effective July 1, 2000, through
2 June 30, 2001 0% 11.74%
3 Effective July 1, 2001 0% 12.55%
4
5 Section 4. Paragraph (b) of subsection (12) of section
6 121.40, Florida Statutes, is amended to read:
7 121.40 Cooperative extension personnel at the
8 Institute of Food and Agricultural Sciences; supplemental
9 retirement benefits.--
10 (12) CONTRIBUTIONS.--
11 (b) The monthly contributions required to be paid
12 pursuant to paragraph (a) on the gross monthly salaries, from
13 all sources with respect to such employment, paid to those
14 employees of the institute who hold both state and federal
15 appointments and who participate in the federal Civil Service
16 Retirement System shall be as follows:
17
18 Dates of Contribution Percentage
19 Rate Changes Due
20
21 July 1, 1985, through December 31, 1988 6.68%
22 January 1, 1989, through December 31, 1993 6.35%
23 January 1, 1994, through December 31, 1994 6.69%
24 January 1, 1995, through June 30, 1996 6.82%
25 July 1, 1996, through June 30, 1998 5.64%
26 Effective July 1, 1998, through
27 June 30, 2001 7.17%
28 Effective July 1, 2001 6.96%
29
30 Section 5. Paragraph (a) of subsection (4) of section
31 121.35, Florida Statutes, is amended to read:
14
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1 121.35 Optional retirement program for the State
2 University System.--
3 (4) CONTRIBUTIONS.--
4 (a) Each employer shall contribute on behalf of each
5 participant in the optional retirement program an amount equal
6 to 10.43 percent of the participant's gross monthly salary the
7 normal cost portion of the employer retirement contribution
8 which would be required if the participant were a regular
9 member of the Florida Retirement System, plus the portion of
10 the contribution rate required in s. 112.363(8) that would
11 otherwise be assigned to the Retiree Health Insurance Subsidy
12 Trust Fund, less an amount approved by the Legislature which
13 shall be deducted by the department to provide for the
14 administration of this program. The payment of the
15 contributions to the optional program which is required by
16 this paragraph for each participant shall be made by the
17 employer to the department, which shall forward the
18 contributions to the designated company or companies
19 contracting for payment of benefits for the participant under
20 the program. However, such contributions paid on behalf of an
21 employee described in paragraph (3)(c) shall not be forwarded
22 to a company and shall not begin to accrue interest until the
23 employee has executed an annuity contract and notified the
24 department.
25 Section 6. (1) It is the intent of the Legislature
26 that the normal costs attributable to the 1999 actuarial
27 experience study and the 2000 actuarial valuation study of the
28 Florida Retirement System defined benefit retirement program
29 conducted by Milliman & Robertson, Inc., consulting actuaries
30 for the system, shall be funded by recognition of a lump sum
31 from the excess actuarial assets of the Florida Retirement
15
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1 System Trust Fund. For fiscal year 2001-2002, the lump sum to
2 be recognized shall be the annual cost attributable to the
3 1999 actuarial experience study and the 2000 actuarial
4 valuation.
5 (2) Effective July 1, 2001, for fiscal year 2001-2002
6 only, the contribution rates set forth in sections 1 through 3
7 of this act shall be reduced as follows:
8 (a) The contribution rate that applies to the Regular
9 Class of the Florida Retirement System defined benefit program
10 shall be reduced by 0.70 percentage points.
11 (b) The contribution rate that applies to the Special
12 Risk Class of the Florida Retirement System defined benefit
13 program shall be reduced by 1.72 percentage points.
14 (c) The contribution rate that applies to the Special
15 Risk Administrative Support Class of the Florida Retirement
16 System defined benefit program shall be reduced by 0.81
17 percentage points.
18 (d) The contribution rate that applies to the Judicial
19 subclass of the Elected Officers' Class of the Florida
20 Retirement System defined benefit program shall be reduced by
21 0.14 percentage points.
22 (e) The contribution rate that applies to the
23 legislative-attorney-Cabinet subclass of the Elected Officers'
24 Class of the Florida Retirement System defined benefit program
25 shall be reduced by 0.83 percentage points.
26 (f) The contribution rate that applies to the County
27 Officers' subclass of the Elected Officers' Class of the
28 Florida Retirement System defined benefit program shall be
29 reduced by 0.57 percentage points.
30 (g) The contribution rate that applies to the Senior
31 Management Service Class of the Florida Retirement System
16
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1 defined benefit program shall be reduced by 0.54 percentage
2 points.
3 Section 7. (1) Effective July 1, 2001, for fiscal
4 year 2001-2002 only, the contribution rates for the defined
5 benefit program for the Regular Class, Special Risk Class,
6 Special Risk Administrative Support Class, each subclass of
7 the Elected Officers' Class, and the Senior Management Service
8 Class each shall be reduced by 2.6 percentage points. These
9 reductions shall be in addition to all other changes to such
10 contribution rates which may be enacted into law after July 1,
11 2001.
12 (2) It is the intent of the Legislature that the costs
13 attributable to the reduction of contribution rates pursuant
14 to subsection (1) shall be funded by recognition of a lump sum
15 equal to the annual cost attributable to this reduction of the
16 contribution rates from the excess actuarial assets of the
17 Florida Retirement System Trust Fund.
18 Section 8. Subsection (2) of section 20 of chapter
19 2000-169, Laws of Florida, is repealed.
20 Section 9. The Legislature finds that a proper and
21 legitimate state purpose is served when employees, officers,
22 and retirees of the state and of its political subdivisions,
23 and the dependents, survivors, and beneficiaries of such
24 employees, officers, and retirees, are extended the basic
25 protections afforded by governmental retirement systems that
26 provide fair and adequate benefits and that are managed,
27 administered, and funded in an actuarially sound manner, as
28 required by s. 14 of Art. X of the State Constitution and part
29 VII of chapter 112 of the Florida Statutes. Therefore, the
30 Legislature hereby determines and declares that the provisions
31 of this act fulfill an important state interest.
17
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1 Section 10. This act shall take effect July 1,2001.
2
3 *****************************************
4 HOUSE SUMMARY
5
Revises various provisions of the Florida Retirement
6 System to:
1. Revise contribution rates for specified classes
7 and subclasses of the system.
2. Revise contribution rates for participants in
8 the optional retirement program of the State University
System.
9 3. Recognize excess actuarial assets to fund costs
and rate reduction.
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