House Bill hb0697

    Florida House of Representatives - 2002                 HB 697

        By Representative Mealor






  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.021, F.S.; redefining

  4         the terms "compensation" and "bonus" for

  5         purposes of the system; providing an effective

  6         date.

  7

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

  9

10         Section 1.  Paragraph (a) of subsection (22) and

11  paragraph (b) of subsection (47) of section 121.021, Florida

12  Statutes, are amended to read:

13         121.021  Definitions.--The following words and phrases

14  as used in this chapter have the respective meanings set forth

15  unless a different meaning is plainly required by the context:

16         (22)  "Compensation" means the monthly salary paid a

17  member by his or her employer for work performed arising from

18  that employment.

19         (a)  Compensation shall include:

20         1.  Overtime payments paid from a salary fund.

21         2.  Accumulated annual leave payments.

22         3.  Payments in addition to the employee's base rate of

23  pay if all the following apply:

24         a.  The payments are paid according to a formal written

25  policy that applies to all eligible employees equally;

26         b.  The policy provides that payments shall commence no

27  later than the 11th year of employment;

28         c.  The payments are paid for as long as the employee

29  continues his or her employment; and

30         d.  The payments are paid at least annually.

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






    Florida House of Representatives - 2002                 HB 697

    784-111-02






  1         4.  Amounts withheld for tax sheltered annuities or

  2  deferred compensation programs, or any other type of salary

  3  reduction plan authorized under the Internal Revenue Code.

  4         5.  Payments made in lieu of a permanent increase in

  5  the base rate of pay, whether made annually or in 12 or 26

  6  equal payments within a 12-month period, when the member's

  7  base pay is at the maximum of his or her pay range. When a

  8  portion of a member's annual increase raises his or her pay

  9  range and the excess is paid as a lump sum payment, such lump

10  sum payment shall be compensation for retirement purposes.

11         6.  Payments made pursuant to ss. 231.700 and

12  236.08106, notwithstanding the provisions of subparagraph 3.

13         (47)  "Bonus" means a payment made in addition to an

14  employee's regular or overtime salary. A bonus is usually

15  nonrecurring, does not increase the employee's base rate of

16  pay, and includes no commitment for payment in a subsequent

17  year. Such payments are not considered compensation. Effective

18  July 1, 1989, employers may not report such payments to the

19  division as salary, and may not make retirement contributions

20  on such payments.

21         (b)  Bonuses shall include, but not be limited to, the

22  following:

23         1.  Exit bonus or severance pay.

24         2.  Longevity payments in conformance with the

25  provisions of paragraph (a).

26         3.  Salary increases granted pursuant to an employee's

27  agreement to retire, including increases paid over several

28  months or years prior to retirement.

29         4.  Payments for accumulated overtime or compensatory

30  time, reserve time, or holiday time worked, if not made within

31  11 months of the month in which the work was performed.

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    Florida House of Representatives - 2002                 HB 697

    784-111-02






  1         5.  Quality Instruction Incentives Program (QUIIP)

  2  Payments.

  3         5.6.  Lump sum payments in recognition of employees'

  4  accomplishments.

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

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  8                          SENATE SUMMARY

  9    Redefines the term "compensation," for purposes of the
      Florida Retirement System, to include payments under the
10    Florida Mentor Teacher School Pilot Program and the
      Excellent Teaching Program. Redefines the term "bonus" to
11    exclude Quality Instruction Incentives Program payments.

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