Senate Bill sb2344

    Florida Senate - 2002                                  SB 2344

    By Senator Silver





    38-1631A-02

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.091, F.S.; revising the

  4         computation of early-retirement benefits for

  5         specified classes of state employees; providing

  6         an effective date.

  7

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

  9

10         Section 1.  Paragraph (a) of subsection (3) of section

11  121.091, Florida Statutes, is amended to read:

12         121.091  Benefits payable under the system.--Benefits

13  may not be paid under this section unless the member has

14  terminated employment as provided in s. 121.021(39)(a) or

15  begun participation in the Deferred Retirement Option Program

16  as provided in subsection (13), and a proper application has

17  been filed in the manner prescribed by the department. The

18  department may cancel an application for retirement benefits

19  when the member or beneficiary fails to timely provide the

20  information and documents required by this chapter and the

21  department's rules. The department shall adopt rules

22  establishing procedures for application for retirement

23  benefits and for the cancellation of such application when the

24  required information or documents are not received.

25         (3)  EARLY RETIREMENT BENEFIT.--Upon retirement on his

26  or her early retirement date, the member shall receive an

27  immediate monthly benefit that shall begin to accrue on the

28  first day of the month of the retirement date and be payable

29  on the last day of that month and each month thereafter during

30  his or her lifetime.  Such benefit shall be calculated as

31  follows:

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    Florida Senate - 2002                                  SB 2344
    38-1631A-02




  1         (a)  The amount of each monthly payment shall be

  2  computed in the same manner as for a normal retirement

  3  benefit, in accordance with subsection (1), but shall be based

  4  on the member's average monthly compensation and creditable

  5  service as of the member's early retirement date.  The benefit

  6  so computed shall be reduced by five-twelfths of 1 percent for

  7  each complete month by which the early retirement date

  8  precedes the normal retirement date of age 62 for a member of

  9  the Regular Class, Senior Management Service Class, or the

10  Elected Officers' Class, and age 55 for a member of the

11  Special Risk Class, or age 52 if a Special Risk member has

12  completed 25 years of creditable service in accordance with s.

13  121.021(29)(b)3. For members of the Regular Class, Senior

14  Management Service Class, or the Elected Officers' Class, the

15  benefit so computed shall be reduced as follows:

16         1.  For members who have less than 25 years of

17  creditable service, by five-twelfths of 1 percent for each

18  complete month by which the early retirement date precedes the

19  normal retirement date of age 62.

20         2.  For members who are less than age 55, by

21  five-twelfths of 1 percent for each complete month by which

22  the early retirement date precedes the normal retirement date

23  of age 62.

24         3.  For members who are at least age 55 but less than

25  age 58 and who have a minimum of 25 years of creditable

26  service, by four-twelfths of 1 percent for each complete month

27  by which the early retirement date precedes the normal

28  retirement date of age 62.

29         4.  For members who are age 58 and older and who have a

30  minimum of 25 years of creditable service, by three-twelfths

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    Florida Senate - 2002                                  SB 2344
    38-1631A-02




  1  of 1 percent for each complete month by which the early

  2  retirement date precedes the normal retirement date of age 62.

  3         Section 2.  This act shall take effect July 1, 2002.

  4

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  6                          SENATE SUMMARY

  7    Revises the computation of early-retirement benefits
      under the Florida Retirement System for members of the
  8    Regular Class, the Senior Management Class, and the
      Elected Officers' Class. Provides lesser penalties for
  9    early retirement if the retiree is age 55 or older and
      has at least 25 years of creditable service.
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