Senate Bill sb0002e2

    CS for SB 2                                   Second Engrossed



  1                      A bill to be entitled

  2         An act relating to retirement; providing a

  3         declaration of an important state interest;

  4         providing for a one-time cost-of-living

  5         increase for certain retired members of the

  6         Florida Retirement System who have service

  7         credit earned between September 30, 1978, and

  8         January 1, 1993, in the Special Risk Class of

  9         the Florida Retirement System; providing an

10         effective date.

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

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14         Section 1.  For those members with creditable service

15  in the Florida Retirement System Special Risk Class who have

16  retirement service credit in the Special Risk Class after

17  September 30, 1978, and before January 1, 1993, and who

18  retired or entered the Deferred Retirement Option Program of

19  the Florida Retirement System prior to July 1, 2000, such

20  members, or their beneficiaries if the member is deceased,

21  shall receive a one-time special cost-of-living increase on

22  January 1, 2002, equal to 12 percent of their gross retirement

23  benefit. Such increase shall be in addition to the normal

24  cost-of-living increase provided to such members on July 1,

25  2001.

26         Section 2.  It is the intent of the Legislature that

27  the costs attributable to the additional cost-of-living

28  increase for special risk retirees and Deferred Retirement

29  Option Program participants as provided under section 2 shall

30  be funded by recognition of excess actuarial assets, amortized

31  over 30 years with the payments assumed to remain relatively


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CODING: Words stricken are deletions; words underlined are additions.






    CS for SB 2                                   Second Engrossed



  1  stable when expressed as a percentage of payroll. For fiscal

  2  year 2001-2002, the payment shall be $9.3 million. For fiscal

  3  year 2002-2003, the payment shall be $19 million, and,

  4  thereafter, payments shall increase by 5 percent per year. If

  5  insufficient funds are available to fund this additional cost

  6  through recognition of excess actuarial assets in fiscal year

  7  2002-2003 and any year thereafter, and there remains an

  8  unfunded actuarial liability attributable to the one-time

  9  cost-of-living increase provided under section 2, the payroll

10  contribution rate for the Special Risk Class of the Florida

11  Retirement System shall be increased by .93 percent effective

12  July 1 of that year, unless the Legislature provides an

13  alternative funding mechanism before that date.

14         Section 3.  The Legislature finds that a proper and

15  legitimate state purpose is served when employees and retirees

16  of the state and its political subdivisions and the

17  dependents, survivors, and beneficiaries of such employees and

18  retirees are extended the basic protections afforded by

19  governmental retirement systems that provide fair and adequate

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

21  actuarially sound manner, as required by Section 14, Article

22  X, of the State Constitution and part VII of chapter 112,

23  Florida Statutes. Therefore, the Legislature determines and

24  declares that this act fulfills an important state interest.

25         Section 4.  This act shall take effect July 1, 2001.

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CODING: Words stricken are deletions; words underlined are additions.