Senate Bill sb0478
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Florida Senate - 2001 SB 478
By Senator Pruitt
27-268-01
1 A bill to be entitled
2 An act relating to the Florida Retirement
3 System; amending s. 121.021, F.S.; defining the
4 term "teacher member" for purposes of the
5 system; amending s. 121.071, F.S.; providing
6 contribution rates for teacher members;
7 amending s. 121.091, F.S.; providing retirement
8 benefits payable to teacher members; providing
9 retroactive applicability; providing for
10 funding of the revision of the Florida
11 Retirement System by this act; providing a
12 finding of important state interest; providing
13 an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Subsection (62) is added to section
18 121.021, Florida Statutes, to read:
19 121.021 Definitions.--The following words and phrases
20 as used in this chapter have the respective meanings set forth
21 unless a different meaning is plainly required by the context:
22 (62) "Teacher member" means a member of the Florida
23 Retirement System who meets the definition of "teacher" in s.
24 238.01(3).
25 Section 2. Subsection (1) 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 (1) The following tables state the required retirement
30 contribution rates for members of the Regular Class, Special
31 Risk Class, or Special Risk Administrative Support Class and
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Florida Senate - 2001 SB 478
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1 their employers in terms of a percentage of the member's gross
2 compensation. A change in a contribution rate is effective
3 with the first salary paid on or after the beginning date of
4 the change. Contributions shall be made or deducted as may be
5 appropriate for each pay period and are in addition to the
6 contributions required for social security and the Retiree
7 Health Insurance Subsidy Trust Fund.
8 (a) Retirement contributions for regular members are
9 as follows:
10
11 Dates of Contribution
12 Rate Changes Members Employers
13
14 December 1, 1970, through December
15 31, 1974, for state agencies, state
16 universities, community colleges,
17 and district school boards 4% 4%
18
19 December 1, 1970, through September
20 30, 1975, for all other local
21 government agencies 4% 4%
22
23 January 1, 1975, through September
24 30, 1978, for state agencies and
25 state universities 0% 9%
26
27 January 1, 1975, through July 31,
28 1978, for community colleges and
29 district school boards 0% 9%
30
31
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2 October 1, 1975, through September
3 30, 1978, for all other local
4 government agencies 0% 9%
5
6 August 1, 1978, through September 30,
7 1981, for community colleges and
8 district school boards 0% 9.1%
9
10 October 1, 1978, through September
11 30, 1981, for all other agencies 0% 9.1%
12
13 October 1, 1981, through
14 September 30, 1984 0% 10.93%
15 October 1, 1984, through
16 September 30, 1986 0% 12.24%
17 October 1, 1986, through
18 December 31, 1988 0% 13.14%
19 January 1, 1989, through
20 December 31, 1989 0% 13.90%
21 January 1, 1990, through
22 December 31, 1990 0% 14.66%
23 January 1, 1991, through
24 December 31, 1991 0% 15.72%
25 January 1, 1992, through
26 December 31, 1992 0% 16.51%
27 January 1, 1993, through
28 December 31, 1993 0% 17.27%
29 January 1, 1994, through
30 December 31, 1994 0% 17.10%
31 January 1, 1995, through
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1 December 31, 1995 0% 16.91%
2 January 1, 1996, through
3 June 30, 1996 0% 17.00%
4 July 1, 1996, through
5 June 30, 1998 0% 16.77%
6 July 1, 1998, through
7 June 30, 1999 0% 15.51%
8 Effective July 1, 1999 0% 9.21%
9
10 (b) Retirement contributions for special risk members
11 are as follows:
12
13 Dates of Contribution
14 Rate Changes Members Employers
15
16 December 1, 1970, through
17 September 30, 1974 6% 6%
18
19 October 1, 1974, through December 31,
20 1974, for state agencies, state
21 universities, community colleges,
22 and district school boards 8% 8%
23
24 October 1, 1974, through September
25 30, 1975, for all other local
26 government agencies 8% 8%
27
28 January 1, 1975, through September
29 30, 1978, for state agencies, state
30 universities, community colleges,
31 and district school boards 0% 13%
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2 October 1, 1975, through September
3 30, 1978, for other local
4 government agencies 0% 13%
5
6 October 1, 1978, through
7 September 30, 1981 0% 13.95%
8 October 1, 1981, through
9 September 30, 1984 0% 13.91%
10 October 1, 1984, through
11 September 30, 1986 0% 14.67%
12 October 1, 1986, through
13 December 31, 1988 0% 15.11%
14 January 1, 1989, through
15 December 31, 1989 0% 17.50%
16 January 1, 1990, through
17 December 31, 1990 0% 19.90%
18 January 1, 1991, through
19 December 31, 1991 0% 25.52%
20 January 1, 1992, through
21 December 31, 1992 0% 26.35%
22 January 1, 1993, through
23 December 31, 1993 0% 27.14%
24 January 1, 1994, through
25 December 31, 1994 0% 27.03%
26 January 1, 1995, through
27 December 31, 1995 0% 26.83%
28 January 1, 1996, through
29 June 30, 1996 0% 26.84%
30 July 1, 1996, through
31 June 30, 1998 0% 26.44%
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1 July 1, 1998, through
2 June 30, 1999 0% 24.38%
3 July 1, 1999, through
4 June 30, 2000 0% 20.22%
5 Effective July 1, 2000 0% 20.35%
6
7 (c) Retirement contributions for special risk
8 administrative support members are as follows:
9
10 Dates of Contribution
11 Rate Changes Members Employers
12
13 July 1, 1982, through
14 September 30, 1984 0% 11.14%
15 October 1, 1984, through
16 September 30, 1986 0% 13.09%
17 October 1, 1986, through
18 December 31, 1988 0% 15.44%
19 January 1, 1989, through
20 December 31, 1989 0% 14.76%
21 January 1, 1990, through
22 December 31, 1990 0% 14.09%
23 January 1, 1991, through
24 December 31, 1991 0% 20.16%
25 January 1, 1992, through
26 December 31, 1992 0% 19.51%
27 January 1, 1993, through
28 December 31, 1993 0% 18.83%
29 January 1, 1994, through
30 December 31, 1994 0% 18.59%
31 January 1, 1995, through
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1 December 31, 1995 0% 17.81%
2 January 1, 1996, through
3 June 30, 1996 0% 17.80%
4 July 1, 1996, through
5 June 30, 1998 0% 17.20%
6 July 1, 1998, through
7 June 30, 1999 0% 14.64%
8 July 1, 1999, through
9 June 30, 2000 0% 11.53%
10 Effective July 1, 2000 0% 11.74%
11
12 (d) Retirement contributions for teachers members are
13 as follows:
14
15 Dates of Contribution
16 Rate Changes Members Employers
17
18 Effective July 1, 2002 0%
19
20 Section 3. Subsection (1) of section 121.091, Florida
21 Statutes, is amended to read:
22 121.091 Benefits payable under the system.--Benefits
23 may not be paid under this section unless the member has
24 terminated employment as provided in s. 121.021(39)(a) or
25 begun participation in the Deferred Retirement Option Program
26 as provided in subsection (13), and a proper application has
27 been filed in the manner prescribed by the department. The
28 department may cancel an application for retirement benefits
29 when the member or beneficiary fails to timely provide the
30 information and documents required by this chapter and the
31 department's rules. The department shall adopt rules
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1 establishing procedures for application for retirement
2 benefits and for the cancellation of such application when the
3 required information or documents are not received.
4 (1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or
5 her normal retirement date, the member, upon application to
6 the administrator, shall receive a monthly benefit which shall
7 begin to accrue on the first day of the month of retirement
8 and be payable on the last day of that month and each month
9 thereafter during his or her lifetime. The normal retirement
10 benefit, including any past or additional retirement credit,
11 may not exceed 100 percent of the average final compensation.
12 The amount of monthly benefit shall be calculated as the
13 product of A and B, subject to the adjustment of C, if
14 applicable, as set forth below:
15 (a)1. For creditable years of Regular Class service, A
16 is 1.60 percent of the member's average final compensation, up
17 to the member's normal retirement date. Upon completion of the
18 first year after the normal retirement date, A is 1.63 percent
19 of the member's average final compensation. Following the
20 second year after the normal retirement date, A is 1.65
21 percent of the member's average final compensation. Following
22 the third year after the normal retirement date, and for
23 subsequent years, A is 1.68 percent of the member's average
24 final compensation.
25 2. For creditable years of special risk service, A is:
26 a. Two percent of the member's average final
27 compensation for all creditable years prior to October 1,
28 1974;
29 b. Three percent of the member's average final
30 compensation for all creditable years after September 30,
31 1974, and before October 1, 1978;
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1 c. Two percent of the member's average final
2 compensation for all creditable years after September 30,
3 1978, and before January 1, 1989;
4 d. Two and two-tenths percent of the member's final
5 monthly compensation for all creditable years after December
6 31, 1988, and before January 1, 1990;
7 e. Two and four-tenths percent of the member's average
8 final compensation for all creditable years after December 31,
9 1989, and before January 1, 1991;
10 f. Two and six-tenths percent of the member's average
11 final compensation for all creditable years after December 31,
12 1990, and before January 1, 1992;
13 g. Two and eight-tenths percent of the member's
14 average final compensation for all creditable years after
15 December 31, 1991, and before January 1, 1993;
16 h. Three percent of the member's average final
17 compensation for all creditable years after December 31, 1992;
18 and
19 i. Three percent of the member's average final
20 compensation for all creditable years of service after
21 September 30, 1978, and before January 1, 1993, for any
22 special risk member who retires after July 1, 2000, or any
23 member of the Special Risk Administrative Support Class
24 entitled to retain the special risk normal retirement date who
25 was a member of the Special Risk Class during the time period
26 and who retires after July 1, 2000.
27 3. For creditable years of Senior Management Service
28 Class service after January 31, 1987, A is 2 percent;
29 4. For creditable years of Elected Officers' Class
30 service as a Supreme Court Justice, district court of appeal
31 judge, circuit judge, or county court judge, A is 3 1/3
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1 percent of the member's average final compensation, and for
2 all other creditable service in such class, A is 3 percent of
3 average final compensation;
4 5. For creditable years of service as a teacher member
5 of the Regular Class, A is 2.25 percent of the member's
6 average final compensation. The provisions of this
7 sub-subparagraph shall extend also to those active members
8 with creditable service that would have qualified them as
9 teacher members, which service was on or after January 1,
10 1997, and before January 1, 2002;
11 (b) B is the number of the member's years and any
12 fractional part of a year of creditable service earned
13 subsequent to November 30, 1970; and
14 (c) C is the normal retirement benefit credit brought
15 forward as of November 30, 1970, by a former member of an
16 existing system. Such normal retirement benefit credit shall
17 be determined as the product of X and Y when X is the
18 percentage of average final compensation which the member
19 would have been eligible to receive if the member had attained
20 his or her normal retirement date as of November 30, 1970, all
21 in accordance with the existing system under which the member
22 is covered on November 30, 1970, and Y is average final
23 compensation as defined in s. 121.021(25). However, any
24 member of an existing retirement system who is eligible to
25 retire and who does retire, become disabled, or die prior to
26 April 15, 1971, may have his or her retirement benefits
27 calculated on the basis of the best 5 of the last 10 years of
28 service.
29 (d) A member's average final compensation shall be
30 determined by formula to obtain the coverage for the 5 highest
31 fiscal years' salaries, calculated as provided by rule.
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1 Section 4. It is the intent of the Legislature that
2 costs attributable to increases in retirement accrual rates
3 for January 1, 1997, through December 31, 2001, for teacher
4 members shall be funded by recognition of a lump sum from the
5 excess actuarial assets of the Florida Retirement System Trust
6 Fund in the amount of _____.
7 Section 5. The Legislature finds that a proper and
8 legitimate state purpose is served when employees and retirees
9 of the state and of its political subdivisions, and the
10 dependents, survivors, and beneficiaries of such employees and
11 retirees, are extended the basic protections afforded by
12 governmental retirement systems that provide fair and adequate
13 benefits that are managed, administered, and funded in an
14 actuarially sound manner, as required by Section 14, Article X
15 of the State Constitution and part VII of chapter 112, Florida
16 Statutes. Therefore, the Legislature determines and declares
17 that this act fulfills an important state interest.
18 Section 6. This act shall take effect January 1, 2002.
19
20 *****************************************
21 SENATE SUMMARY
22 Defines the term "teacher member" of the Florida
Retirement System and provides for payment of retirement
23 benefits to such members based on 2.25 percent of average
final compensation for each year of creditable service.
24 Makes this benefit retroactively applicable for the
previous 4 years for currently active members who
25 qualify. Provides for funding the increase through the
excess actuarial assets of the Florida Retirement System
26 Trust Fund.
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