House Bill hb1821e2
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HB 1821, Second Engrossed
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 ss. 121.35, 121.051,
7 121.055, and 240.3195, F.S.; changing employer
8 contribution rates for participants in the
9 State University System optional retirement
10 program, the Community College optional
11 retirement program, and the Senior Management
12 Service optional annuity program; providing
13 legislative intent; recognizing excess
14 actuarial assets to fund costs and rate
15 reductions; reducing certain contribution
16 rates; repealing s. 20 of ch. 2000-169, Laws of
17 Florida, relating to increasing contributions
18 rates; amending s. 112.363, 121.052, 121.055,
19 and 121.071, F.S.; changing the employer
20 contribution for the retiree health insurance
21 subsidy; amending s. 121.571, F.S.; adding
22 cross references; providing a finding of
23 important state interest; providing an
24 effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Paragraph (a) of subsection (7) of section
29 121.052, Florida Statutes, is amended to read:
30 121.052 Membership class of elected officers.--
31 (7) CONTRIBUTIONS.--
1
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HB 1821, Second Engrossed
1 (a) The following table states the required retirement
2 contribution rates for members of the Elected Officers' Class
3 and their employers in terms of a percentage of the member's
4 gross compensation. A change in a contribution rate is
5 effective with the first salary paid on or after the beginning
6 date of the change. Contributions shall be made or deducted as
7 may be appropriate for each pay period and are in addition to
8 the contributions required for social security and the Retiree
9 Health Insurance Subsidy Trust Fund.
10
11 Dates of Contribution
12 Rate Changes Members Employers
13
14 July 1, 1972, through September 30, 1977
15 Legislators 8% 8%
16 All Other Members 8% 8%
17
18 October 1, 1977, through September 30, 1978
19 Legislators 8% 8%
20 All Other Members 4% 12%
21
22 October 1, 1978, through September 30, 1979
23 Legislators 8% 10.57%
24 All Other Members 4% 16.78%
25
26 October 1, 1979, through September 30, 1981
27 Legislators 8% 10.57%
28 Governor, Lt. Governor, Cabinet
29 Officers 4% 16.78%
30 All Other Members 0% 20.78%
31
2
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HB 1821, Second Engrossed
1 July 1, 1981, through June 30, 1984
2 County Elected Officers 0% 19.30%
3
4 July 1, 1984, through September 30, 1984
5 County Elected Officers 0% 20.25%
6
7 October 1, 1981, through September 30, 1984
8 Legislators 0% 19.30%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 21.03%
11 State Attorneys, Public Defenders 0% 20.95%
12 Justices, Judges 0% 22.55%
13
14 October 1, 1984, through September 30, 1986
15 Legislators 0% 10.98%
16 Governor, Lt. Governor, Cabinet
17 Officers 0% 10.98%
18 State Attorneys, Public Defenders 0% 10.98%
19 Justices, Judges 0% 21.79%
20 County Elected Officers 0% 16.97%
21
22 October 1, 1986, through December 31, 1988
23 Legislators 0% 11.50%
24 Governor, Lt. Governor, Cabinet
25 Officers 0% 11.50%
26 State Attorneys, Public Defenders 0% 11.50%
27 Justices, Judges 0% 20.94%
28 County Elected Officers 0% 17.19%
29
30 January 1, 1989, through December 31, 1989
31 Legislators 0% 13.70%
3
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HB 1821, Second Engrossed
1 Governor, Lt. Governor, Cabinet
2 Officers 0% 13.70%
3 State Attorneys, Public Defenders 0% 13.70%
4 Justices, Judges 0% 22.58%
5 County Elected Officers 0% 18.44%
6
7 January 1, 1990, through December 31, 1990
8 Legislators 0% 15.91%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 15.91%
11 State Attorneys, Public Defenders 0% 15.91%
12 Justices, Judges 0% 24.22%
13 County Elected Officers 0% 19.71%
14
15 January 1, 1991, through December 31, 1991
16 Legislators 0% 17.73%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 17.73%
19 State Attorneys, Public Defenders 0% 17.73%
20 Justices, Judges 0% 26.63%
21 County Elected Officers 0% 23.32%
22
23 January 1, 1992, through December 31, 1992
24 Legislators 0% 19.94%
25 Governor, Lt. Governor, Cabinet
26 Officers 0% 19.94%
27 State Attorneys, Public Defenders 0% 19.94%
28 Justices, Judges 0% 28.27%
29 County Elected Officers 0% 24.59%
30
31 January 1, 1993, through December 31, 1993
4
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HB 1821, Second Engrossed
1 Legislators 0% 22.14%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 22.14%
4 State Attorneys, Public Defenders 0% 22.14%
5 Justices, Judges 0% 29.91%
6 County Elected Officers 0% 25.84%
7
8 January 1, 1994, through December 31, 1994
9 Legislators 0% 22.65%
10 Governor, Lt. Governor, Cabinet
11 Officers 0% 22.65%
12 State Attorneys, Public Defenders 0% 22.65%
13 Justices, Judges 0% 30.52%
14 County Elected Officers 0% 26.07%
15
16 January 1, 1995, through December 31, 1995
17 Legislators 0% 22.80%
18 Governor, Lt. Governor, Cabinet
19 Officers 0% 22.80%
20 State Attorneys, Public Defenders 0% 22.80%
21 Justices, Judges 0% 30.21%
22 County Elected Officers 0% 27.48%
23
24 January 1, 1996, through June 30, 1996
25 Legislators 0% 22.90%
26 Governor, Lt. Governor, Cabinet
27 Officers 0% 22.90%
28 State Attorneys, Public Defenders 0% 22.90%
29 Justices, Judges 0% 30.15%
30 County Elected Officers 0% 27.54%
31
5
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HB 1821, Second Engrossed
1 July 1, 1996, through June 30, 1998
2 Legislators 0% 23.07%
3 Governor, Lt. Governor, Cabinet
4 Officers 0% 23.07%
5 State Attorneys, Public Defenders 0% 23.07%
6 Justices, Judges 0% 29.55%
7 County Elected Officers 0% 27.33%
8
9 July 1, 1998, through June 30, 1999
10 Legislators 0% 22.33%
11 Governor, Lt. Governor, Cabinet
12 Officers 0% 22.33%
13 State Attorneys, Public Defenders 0% 22.33%
14 Justices, Judges 0% 27.21%
15 County Elected Officers 0% 26.99%
16
17 Effective July 1, 1999
18 Legislators 0% 14.31%
19 Governor, Lt. Governor, Cabinet
20 Officers 0% 14.31%
21 State Attorneys, Public Defenders 0% 14.31%
22 Justices, Judges 0% 20.48%
23 County Elected Officers 0% 17.05%
24
25 Effective July 1, 2001
26 Legislators 0% 15.14%
27 Governor, Lt. Governor, Cabinet
28 Officers 0% 15.14%
29 State Attorneys, Public Defenders 0% 15.14%
30 Justices, Judges 0% 20.61%
31 County Elected Officers 0% 17.61%
6
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HB 1821, Second Engrossed
1
2 Section 2. Paragraph (a) of subsection (3) of section
3 121.055, Florida Statutes, is amended to read:
4 121.055 Senior Management Service Class.--There is
5 hereby established a separate class of membership within the
6 Florida Retirement System to be known as the "Senior
7 Management Service Class," which shall become effective
8 February 1, 1987.
9 (3)(a) The following table states the required
10 retirement contribution rates for members of the Senior
11 Management Service Class and their employers in terms of a
12 percentage of the member's gross compensation. A change in the
13 contribution rate is effective with the first salary paid on
14 or after the beginning date of the change. Contributions
15 shall be made for each pay period and are in addition to the
16 contributions required for social security and the Retiree
17 Health Insurance Subsidy Trust Fund.
18
19 Dates of Contribution
20 Rate Changes Members Employers
21
22 February 1, 1987, through
23 December 31, 1988 0% 13.88%
24 January 1, 1989, through
25 December 31, 1989 0% 14.95%
26 January 1, 1990, through
27 December 31, 1990 0% 16.04%
28 January 1, 1991, through
29 December 31, 1991 0% 18.39%
30 January 1, 1992, through
31 December 31, 1992 0% 19.48%
7
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HB 1821, Second Engrossed
1 January 1, 1993, through
2 December 31, 1993 0% 20.55%
3 January 1, 1994, through
4 December 31, 1994 0% 23.07%
5 January 1, 1995, through
6 December 31, 1995 0% 23.88%
7 January 1, 1996, through
8 June 30, 1996 0% 24.14%
9 July 1, 1996, through
10 June 30, 1998 0% 21.58%
11 July 1, 1998, through
12 June 30, 1999 0% 23.10%
13 Effective July 1, 1999
14 0% 11.19%
15 Effective July 1, 2001 0% 11.73%
16
17 Section 3. Subsection (1) of section 121.071, Florida
18 Statutes, is amended to read:
19 121.071 Contributions.--Contributions to the system
20 shall be made as follows:
21 (1) The following tables state the required retirement
22 contribution rates for members of the Regular Class, Special
23 Risk Class, or Special Risk Administrative Support Class and
24 their employers in terms of a percentage of the member's gross
25 compensation. A change in a contribution rate is effective
26 with the first salary paid on or after the beginning date of
27 the change. Contributions shall be made or deducted as may be
28 appropriate for each pay period and are in addition to the
29 contributions required for social security and the Retiree
30 Health Insurance Subsidy Trust Fund.
31
8
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HB 1821, Second Engrossed
1 (a) Retirement contributions for regular members are
2 as follows:
3
4 Dates of Contribution
5 Rate Changes Members Employers
6
7 December 1, 1970, through December
8 31, 1974, for state agencies, state
9 universities, community colleges,
10 and district school boards 4% 4%
11
12 December 1, 1970, through September
13 30, 1975, for all other local
14 government agencies 4% 4%
15
16 January 1, 1975, through September
17 30, 1978, for state agencies and
18 state universities 0% 9%
19
20 January 1, 1975, through July 31,
21 1978, for community colleges and
22 district school boards 0% 9%
23
24 October 1, 1975, through September
25 30, 1978, for all other local
26 government agencies 0% 9%
27
28 August 1, 1978, through September 30,
29 1981, for community colleges and
30 district school boards 0% 9.1%
31
9
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HB 1821, Second Engrossed
1
2 October 1, 1978, through September
3 30, 1981, for all other agencies 0% 9.1%
4
5 October 1, 1981, through
6 September 30, 1984 0% 10.93%
7 October 1, 1984, through
8 September 30, 1986 0% 12.24%
9 October 1, 1986, through
10 December 31, 1988 0% 13.14%
11 January 1, 1989, through
12 December 31, 1989 0% 13.90%
13 January 1, 1990, through
14 December 31, 1990 0% 14.66%
15 January 1, 1991, through
16 December 31, 1991 0% 15.72%
17 January 1, 1992, through
18 December 31, 1992 0% 16.51%
19 January 1, 1993, through
20 December 31, 1993 0% 17.27%
21 January 1, 1994, through
22 December 31, 1994 0% 17.10%
23 January 1, 1995, through
24 December 31, 1995 0% 16.91%
25 January 1, 1996, through
26 June 30, 1996 0% 17.00%
27 July 1, 1996, through
28 June 30, 1998 0% 16.77%
29 July 1, 1998, through
30 June 30, 1999 0% 15.51%
31 Effective July 1, 1999
10
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HB 1821, Second Engrossed
1 0% 9.21%
2 Effective July 1, 2001 0% 9.91%
3
4 (b) Retirement contributions for special risk members
5 are as follows:
6
7 Dates of Contribution
8 Rate Changes Members Employers
9
10 December 1, 1970, through
11 September 30, 1974 6% 6%
12
13 October 1, 1974, through December 31,
14 1974, for state agencies, state
15 universities, community colleges,
16 and district school boards 8% 8%
17
18 October 1, 1974, through September
19 30, 1975, for all other local
20 government agencies 8% 8%
21
22 January 1, 1975, through September
23 30, 1978, for state agencies, state
24 universities, community colleges,
25 and district school boards 0% 13%
26
27 October 1, 1975, through September
28 30, 1978, for other local
29 government agencies 0% 13%
30
31 October 1, 1978, through
11
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HB 1821, Second Engrossed
1 September 30, 1981 0% 13.95%
2 October 1, 1981, through
3 September 30, 1984 0% 13.91%
4 October 1, 1984, through
5 September 30, 1986 0% 14.67%
6 October 1, 1986, through
7 December 31, 1988 0% 15.11%
8 January 1, 1989, through
9 December 31, 1989 0% 17.50%
10 January 1, 1990, through
11 December 31, 1990 0% 19.90%
12 January 1, 1991, through
13 December 31, 1991 0% 25.52%
14 January 1, 1992, through
15 December 31, 1992 0% 26.35%
16 January 1, 1993, through
17 December 31, 1993 0% 27.14%
18 January 1, 1994, through
19 December 31, 1994 0% 27.03%
20 January 1, 1995, through
21 December 31, 1995 0% 26.83%
22 January 1, 1996, through
23 June 30, 1996 0% 26.84%
24 July 1, 1996, through
25 June 30, 1998 0% 26.44%
26 July 1, 1998, through
27 June 30, 1999 0% 24.38%
28 July 1, 1999, through
29 June 30, 2000 0% 20.22%
30 Effective July 1, 2000
31 0% 20.35%
12
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HB 1821, Second Engrossed
1 Effective July 1, 2001 0% 22.07%
2
3 (c) Retirement contributions for special risk
4 administrative support members are as follows:
5
6 Dates of Contribution
7 Rate Changes Members Employers
8
9 July 1, 1982, through
10 September 30, 1984 0% 11.14%
11 October 1, 1984, through
12 September 30, 1986 0% 13.09%
13 October 1, 1986, through
14 December 31, 1988 0% 15.44%
15 January 1, 1989, through
16 December 31, 1989 0% 14.76%
17 January 1, 1990, through
18 December 31, 1990 0% 14.09%
19 January 1, 1991, through
20 December 31, 1991 0% 20.16%
21 January 1, 1992, through
22 December 31, 1992 0% 19.51%
23 January 1, 1993, through
24 December 31, 1993 0% 18.83%
25 January 1, 1994, through
26 December 31, 1994 0% 18.59%
27 January 1, 1995, through
28 December 31, 1995 0% 17.81%
29 January 1, 1996, through
30 June 30, 1996 0% 17.80%
31 July 1, 1996, through
13
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HB 1821, Second Engrossed
1 June 30, 1998 0% 17.20%
2 July 1, 1998, through
3 June 30, 1999 0% 14.64%
4 July 1, 1999, through
5 June 30, 2000 0% 11.53%
6 Effective July 1, 2000
7 0% 11.74%
8 Effective July 1, 2001 0% 12.55%
9
10 Section 4. Paragraph (b) of subsection (12) of section
11 121.40, Florida Statutes, is amended to read:
12 121.40 Cooperative extension personnel at the
13 Institute of Food and Agricultural Sciences; supplemental
14 retirement benefits.--
15 (12) CONTRIBUTIONS.--
16 (b) The monthly contributions required to be paid
17 pursuant to paragraph (a) on the gross monthly salaries, from
18 all sources with respect to such employment, paid to those
19 employees of the institute who hold both state and federal
20 appointments and who participate in the federal Civil Service
21 Retirement System shall be as follows:
22
23 Dates of Contribution Percentage
24 Rate Changes Due
25
26 July 1, 1985, through December 31, 1988 6.68%
27 January 1, 1989, through December 31, 1993 6.35%
28 January 1, 1994, through December 31, 1994 6.69%
29 January 1, 1995, through June 30, 1996 6.82%
30 July 1, 1996, through June 30, 1998 5.64%
31 Effective July 1, 1998, through
14
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HB 1821, Second Engrossed
1 June 30, 2001 7.17%
2 Effective July 1, 2001 6.96%
3
4 Section 5. Paragraph (a) of subsection (4) of section
5 121.35, Florida Statutes, is amended to read:
6 121.35 Optional retirement program for the State
7 University System.--
8 (4) CONTRIBUTIONS.--
9 (a) Through June 30, 2001, each employer shall
10 contribute on behalf of each participant in the optional
11 retirement program an amount equal to the normal cost portion
12 of the employer retirement contribution which would be
13 required if the participant were a regular member of the
14 Florida Retirement System defined benefit program, plus the
15 portion of the contribution rate required in s. 112.363(8)
16 that would otherwise be assigned to the Retiree Health
17 Insurance Subsidy Trust Fund. Effective July 1, 2001, each
18 employer shall contribute on behalf of each participant in the
19 optional program an amount equal to 10.43 percent of the
20 participant's gross monthly compensation. The department
21 shall deduct, less an amount approved by the Legislature which
22 shall be deducted by the department to provide for the
23 administration of this program. The payment of the
24 contributions to the optional program which is required by
25 this paragraph for each participant shall be made by the
26 employer to the department, which shall forward the
27 contributions to the designated company or companies
28 contracting for payment of benefits for the participant under
29 the program. However, such contributions paid on behalf of an
30 employee described in paragraph (3)(c) shall not be forwarded
31 to a company and shall not begin to accrue interest until the
15
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HB 1821, Second Engrossed
1 employee has executed an annuity contract and notified the
2 department.
3 Section 6. Paragraph (c) of subsection (2) of section
4 121.051, Florida Statutes, is amended to read:
5 121.051 Participation in the system.--
6 (2) OPTIONAL PARTICIPATION.--
7 (c) Employees of members of the Florida Community
8 College System or charter technical career centers sponsored
9 by members of the Florida Community College System, as
10 designated in s. 240.3031, who are members of the Regular
11 Class of the Florida Retirement System and who comply with the
12 criteria set forth in this paragraph and in s. 240.3195 may
13 elect, in lieu of participating in the Florida Retirement
14 System, to withdraw from the Florida Retirement System
15 altogether and participate in a lifetime monthly annuity
16 program, to be known as the State Community College System
17 Optional Retirement Program, which may be provided by the
18 employing agency under s. 240.3195. Pursuant thereto:
19 1. Through June 30, 2001, the cost to the employer for
20 such annuity shall equal the normal cost portion of the
21 employer retirement contribution which would be required if
22 the employee were a member of the Regular Class defined
23 benefit program, plus the portion of the contribution rate
24 required by s. 112.363(8) that would otherwise be assigned to
25 the Retiree Health Insurance Subsidy Trust Fund. Effective
26 July 1, 2001, each employer shall contribute on behalf of each
27 participant in the optional program an amount equal to 10.43
28 percent of the participant's gross monthly compensation. The
29 employer shall deduct, and less an amount approved by the
30 employer to provide for the administration of the optional
31 retirement program. The employer providing such annuity shall
16
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HB 1821, Second Engrossed
1 contribute an additional amount to the Florida Retirement
2 System Trust Fund equal to the unfunded actuarial accrued
3 liability portion of the Regular Class contribution rate.
4 2. The decision to participate in such an optional
5 retirement program shall be irrevocable for as long as the
6 employee holds a position eligible for participation. Any
7 service creditable under the Florida Retirement System shall
8 be retained after the member withdraws from the Florida
9 Retirement System; however, additional service credit in the
10 Florida Retirement System shall not be earned while a member
11 of the optional retirement program.
12 3. Participation in an optional annuity program shall
13 be limited to those employees who satisfy the following
14 eligibility criteria:
15 a. The employee must be otherwise eligible for
16 membership in the Regular Class of the Florida Retirement
17 System, as provided in s. 121.021(11) and (12).
18 b. The employee must be employed in a full-time
19 position classified in the Accounting Manual for Florida's
20 Public Community Colleges as:
21 (I) Instructional; or
22 (II) Executive Management, Instructional Management,
23 or Institutional Management, if a community college determines
24 that recruiting to fill a vacancy in the position is to be
25 conducted in the national or regional market, and:
26 (A) The duties and responsibilities of the position
27 include either the formulation, interpretation, or
28 implementation of policies; or
29 (B) The duties and responsibilities of the position
30 include the performance of functions that are unique or
31
17
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HB 1821, Second Engrossed
1 specialized within higher education and that frequently
2 involve the support of the mission of the community college.
3 c. The employee must be employed in a position not
4 included in the Senior Management Service Class of the Florida
5 Retirement System, as described in s. 121.055.
6 4. Participants in the program are subject to the same
7 reemployment limitations, renewed membership provisions, and
8 forfeiture provisions as are applicable to regular members of
9 the Florida Retirement System under ss. 121.091(9), 121.122,
10 and 121.091(5), respectively.
11 5. Eligible community college employees shall be
12 compulsory members of the Florida Retirement System until,
13 pursuant to the procedures set forth in s. 240.3195, the first
14 day of the next full calendar month following the filing of
15 both a written election to withdraw and a completed
16 application for an individual contract or certificate with the
17 program administrator and receipt of such election by the
18 division.
19 Section 7. Paragraph (d) of subsection (6) of section
20 121.055, Florida Statutes, is amended to read:
21 121.055 Senior Management Service Class.--There is
22 hereby established a separate class of membership within the
23 Florida Retirement System to be known as the "Senior
24 Management Service Class," which shall become effective
25 February 1, 1987.
26 (6)
27 (d) Contributions.--
28 1. Through June 30, 2001, each employer shall
29 contribute on behalf of each participant in the Senior
30 Management Service Optional Annuity Program an amount equal to
31 the normal cost portion of the employer retirement
18
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HB 1821, Second Engrossed
1 contribution which would be required if the participant were a
2 Senior Management Service Class member of the Florida
3 Retirement System defined benefit program, plus the portion of
4 the contribution rate required in s. 112.363(8) that would
5 otherwise be assigned to the Retiree Health Insurance Subsidy
6 Trust Fund. Effective July 1, 2001, each employer shall
7 contribute on behalf of each participant in the optional
8 program an amount equal to 12.49 percent of the participant's
9 gross monthly compensation. The department shall deduct, less
10 an amount approved by the Legislature which shall be deducted
11 by the department to provide for the administration of this
12 program. The payment of the contributions to the optional
13 program which is required by this subparagraph for each
14 participant shall be made by the employer to the department,
15 which shall forward the contributions to the designated
16 company or companies contracting for payment of benefits for
17 the participant under the program.
18 2. Each employer shall contribute on behalf of each
19 participant in the Senior Management Service Optional Annuity
20 Program an amount equal to the unfunded actuarial accrued
21 liability portion of the employer contribution which would be
22 required for members of the Senior Management Service Class in
23 the Florida Retirement System. This contribution shall be
24 paid to the department for transfer to the Florida Retirement
25 System Trust Fund.
26 3. An Optional Annuity Program Trust Fund shall be
27 established in the State Treasury and administered by the
28 department to make payments to provider companies on behalf of
29 the optional annuity program participants, and to transfer the
30 unfunded liability portion of the state optional annuity
31
19
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HB 1821, Second Engrossed
1 program contributions to the Florida Retirement System Trust
2 Fund.
3 4. Contributions required for social security by each
4 employer and each participant, in the amount required for
5 social security coverage as now or hereafter may be provided
6 by the federal Social Security Act shall be maintained for
7 each participant in the Senior Management Service retirement
8 program and shall be in addition to the retirement
9 contributions specified in this paragraph.
10 5. Each participant in the Senior Management Service
11 Optional Annuity Program may contribute by way of salary
12 reduction or deduction a percentage amount of the
13 participant's gross compensation not to exceed the percentage
14 amount contributed by the employer to the optional annuity
15 program. Payment of the participant's contributions shall be
16 made by the employer to the department, which shall forward
17 the contributions to the designated company or companies
18 contracting for payment of benefits for the participant under
19 the program.
20 Section 8. Paragraph (a) of subsection (4) of section
21 240.3195, Florida Statutes, is amended to read:
22 240.3195 State Community College System Optional
23 Retirement Program.--Each community college may implement an
24 optional retirement program, if such program is established
25 therefor pursuant to s. 240.319(4)(r), under which annuity
26 contracts providing retirement and death benefits may be
27 purchased by, and on behalf of, eligible employees who
28 participate in the program. Except as otherwise provided
29 herein, this retirement program, which shall be known as the
30 State Community College System Optional Retirement Program,
31
20
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HB 1821, Second Engrossed
1 may be implemented and administered only by an individual
2 community college or by a consortium of community colleges.
3 (4)(a) Through June 30, 2001, each college must
4 contribute on behalf of each program participant an amount
5 equal to the normal cost portion of the employer retirement
6 contribution which would be required if the program
7 participant were a member of the Regular Class of the Florida
8 Retirement System as provided in s. 121.071, plus the portion
9 of the contribution rate required in s. 112.363(8) that would
10 otherwise be assigned to the Retiree Health Insurance Subsidy
11 Trust Fund. Effective July 1, 2001, each college must
12 contribute on behalf of each program participant an amount
13 equal to 10.43 percent of the participant's gross monthly
14 compensation. The college shall deduct, and less an amount
15 approved by the community college to provide for the
16 administration of the optional retirement program. Payment of
17 this contribution must be made either directly by the
18 community college or through the program administrator to the
19 designated company contracting for payment of benefits to the
20 program participant.
21 (b) Each community college must contribute on behalf
22 of each program participant an amount equal to the unfunded
23 actuarial accrued liability portion of the employer
24 contribution which would be required if the program
25 participant were a member of the Regular Class of the Florida
26 Retirement System. Payment of this contribution must be made
27 directly by the college to the department for deposit in the
28 Florida Retirement System Trust Fund.
29 (c) Each program participant who has executed an
30 annuity contract may contribute by way of salary reduction or
31 deduction a percentage of the program participant's gross
21
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HB 1821, Second Engrossed
1 compensation, but this percentage may not exceed the
2 corresponding percentage contributed by the community college
3 to the optional retirement program. Payment of this
4 contribution may be made either directly by the college or
5 through the program administrator to the designated company
6 contracting for payment of benefits to the program
7 participant.
8 (d) Contributions to an optional retirement program by
9 a college or a program participant are in addition to, and
10 have no effect upon, contributions required now or in future
11 by the federal Social Security Act.
12 Section 9. (1) It is the intent of the Legislature
13 that the normal costs attributable to the actuarial experience
14 study and six-year vesting as determined by Milliman &
15 Robertson, Inc., consulting actuaries for the system, shall be
16 funded by recognition of a lump sum from the excess actuarial
17 assets of the Florida Retirement System Trust Fund. For fiscal
18 year 2001-2002, the lump sum to be recognized shall be the
19 annual cost attributable to the actuarial experience study and
20 six-year vesting.
21 (2) Effective July 1, 2001, for fiscal year 2001-2002
22 only, the contribution rates set forth in sections 1 through 3
23 of this act shall be reduced as follows:
24 (a) The contribution rate that applies to the Regular
25 Class of the Florida Retirement System defined benefit program
26 shall be reduced by 0.70 percentage points.
27 (b) The contribution rate that applies to the Special
28 Risk Class of the Florida Retirement System defined benefit
29 program shall be reduced by 1.72 percentage points.
30 (c) The contribution rate that applies to the Special
31 Risk Administrative Support Class of the Florida Retirement
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HB 1821, Second Engrossed
1 System defined benefit program shall be reduced by 0.81
2 percentage points.
3 (d) The contribution rate that applies to the Judicial
4 subclass of the Elected Officers' Class of the Florida
5 Retirement System defined benefit program shall be reduced by
6 0.14 percentage points.
7 (e) The contribution rate that applies to the
8 legislative-attorney-Cabinet subclass of the Elected Officers'
9 Class of the Florida Retirement System defined benefit program
10 shall be reduced by 0.83 percentage points.
11 (f) The contribution rate that applies to the County
12 Officers' subclass of the Elected Officers' Class of the
13 Florida Retirement System defined benefit program shall be
14 reduced by 0.56 percentage points.
15 (g) The contribution rate that applies to the Senior
16 Management Service Class of the Florida Retirement System
17 defined benefit program shall be reduced by 0.54 percentage
18 points.
19 Section 10. (1) Effective July 1, 2001, for fiscal
20 year 2001-2002 only, the contribution rates for the defined
21 benefit program for the Regular Class, Special Risk Class,
22 Special Risk Administrative Support Class, each subclass of
23 the Elected Officers' Class, and the Senior Management Service
24 Class each shall be reduced by 3.02 percentage points. These
25 reductions shall be in addition to all other changes to such
26 contribution rates which may be enacted into law after July 1,
27 2001.
28 (2) It is the intent of the Legislature that the costs
29 attributable to the reduction of contribution rates pursuant
30 to subsection (1) shall be funded by recognition of a lump sum
31 equal to the annual cost attributable to this reduction of the
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HB 1821, Second Engrossed
1 contribution rates from the excess actuarial assets of the
2 Florida Retirement System Trust Fund.
3 Section 11. Section 20 of chapter 2000-169, Laws of
4 Florida, is repealed.
5 Section 12. The Legislature finds that a proper and
6 legitimate state purpose is served when employees, officers,
7 and retirees of the state and of its political subdivisions,
8 and the dependents, survivors, and beneficiaries of such
9 employees, officers, and retirees, are extended the basic
10 protections afforded by governmental retirement systems that
11 provide fair and adequate benefits and that are managed,
12 administered, and funded in an actuarially sound manner, as
13 required by s. 14 of Art. X of the State Constitution and part
14 VII of chapter 112 of the Florida Statutes. Therefore, the
15 Legislature hereby determines and declares that the provisions
16 of this act fulfill an important state interest.
17 Section 13. Paragraph (f) is added to subsection (8)
18 of section 112.363, Florida Statutes, to read:
19 112.363 Retiree health insurance subsidy.--
20 (8) CONTRIBUTIONS.--For purposes of funding the
21 insurance subsidy provided by this section:
22 (f) Beginning July 1, 2001, the employer of each
23 member of a state-administered plan shall contribute 1.11
24 percent of gross compensation each pay period.
25
26 Such contributions shall be submitted to the Department of
27 Management Services and deposited in the Retiree Health
28 Insurance Subsidy Trust Fund.
29 Section 14. Paragraph (c) of subsection (7) of section
30 121.052, Florida Statutes, is amended to read:
31 121.052 Membership class of elected officers.--
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HB 1821, Second Engrossed
1 (7) CONTRIBUTIONS.--
2 (c) The following table states the required employer
3 contribution on behalf of each member of the Elected Officers'
4 Class in terms of a percentage of the member's gross
5 compensation. Such contribution constitutes the entire health
6 insurance subsidy contribution with respect to the member. A
7 change in the contribution rate is effective with the first
8 salary paid on or after the beginning date of the change. The
9 retiree health insurance subsidy contribution rate is as
10 follows:
11
12 Dates of Contribution Contribution
13 Rate Changes Rate
14
15 October 1, 1987, through December 31, 1988 0.24%
16 January 1, 1989, through December 31, 1993 0.48%
17 January 1, 1994, through December 31, 1994 0.56%
18 January 1, 1995, through June 30, 1998 0.66%
19 Effective July 1, 1998, through June 30, 0.94%
20 2001
21 Effective July 1, 2001 1.11%
22
23 Such contributions shall be deposited by the administrator in
24 the Retiree Health Insurance Subsidy Trust Fund.
25 Section 15. Paragraph (c) of subsection (3) of section
26 121.055, Florida Statutes, is amended to read:
27 121.055 Senior Management Service Class.--There is
28 hereby established a separate class of membership within the
29 Florida Retirement System to be known as the "Senior
30 Management Service Class," which shall become effective
31 February 1, 1987.
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HB 1821, Second Engrossed
1 (3)
2 (c) The following table states the required employer
3 contribution on behalf of each member of the Senior Management
4 Service Class in terms of a percentage of the member's gross
5 compensation. Such contribution constitutes the entire health
6 insurance subsidy contribution with respect to the member. A
7 change in the contribution rate is effective with the first
8 salary paid on or after the beginning date of the change. The
9 retiree health insurance subsidy contribution rate is as
10 follows:
11
12 Dates of Contribution Contribution
13 Rate Changes Rate
14
15 October 1, 1987, through December 31, 1988 0.24%
16 January 1, 1989, through December 31, 1993 0.48%
17 January 1, 1994, through December 31, 1994 0.56%
18 January 1, 1995, through June 30, 1998 0.66%
19 Effective July 1, 1998, through June 30, 0.94%
20 2001
21 Effective July 1, 2001 1.11%
22
23 Such contributions shall be deposited by the administrator in
24 the Retiree Health Insurance Subsidy Trust Fund.
25 Section 16. Subsection (4) of section 121.071, Florida
26 Statutes, is amended to read:
27 121.071 Contributions.--Contributions to the system
28 shall be made as follows:
29 (4) The following table states the required employer
30 contribution on behalf of each member of the Regular Class,
31 Special Risk Class, or Special Risk Administrative Support
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HB 1821, Second Engrossed
1 Class in terms of a percentage of the member's gross
2 compensation. Such contribution constitutes the entire health
3 insurance subsidy contribution with respect to the member. A
4 change in the contribution rate is effective with the first
5 salary paid on or after the beginning date of the change. The
6 retiree health insurance subsidy contribution rate is as
7 follows:
8
9 Dates of Contribution Contribution
10 Rate Changes Rate
11
12 October 1, 1987, through December 31, 1988 0.24%
13 January 1, 1989, through December 31, 1993 0.48%
14 January 1, 1994, through December 31, 1994 0.56%
15 January 1, 1995, through June 30, 1998 0.66%
16 Effective July 1, 1998, through June 30, 0.94%
17 2001
18 Effective July 1, 2001 1.11%
19
20 Such contributions shall be deposited by the administrator in
21 the Retiree Health Insurance Subsidy Trust Fund.
22 Section 17. Subsection (4) of section 121.571, Florida
23 Statutes, is amended to read:
24 121.571 Contributions.--Contributions to the Public
25 Employee Optional Retirement Program shall be made as follows:
26 (4) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
27 RETIREE HEALTH INSURANCE SUBSIDY.--Contributions required
28 under this section shall be in addition to employer and member
29 contributions required for social security and the Retiree
30 Health Insurance Subsidy Trust Fund as provided in ss.
31 112.363, 121.052, 121.055, and s. 121.071, as appropriate.
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HB 1821, Second Engrossed
1 Section 18. The Legislature finds that a proper and
2 legitimate state purpose is served when employees, officers,
3 and retirees of the state and of its political subdivisions,
4 and the dependents, survivors, and beneficiaries of such
5 employees, officers, and retirees, are extended the basic
6 protections afforded governmental retirement systems that
7 provide fair and adequate benefits, including health insurance
8 subsidies, and that are managed, administered, and funded in a
9 reasonable manner. Therefore, the Legislature hereby
10 determines and declares that the provisions of this act
11 fulfill an important state interest.
12 Section 19. This act shall take effect July 1, 2001.
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