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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  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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  1

  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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  1

  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.

27

28

29

30

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