HB 1239 2003
1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.021, F.S.; defining the term "public school member"
4	for purposes of the system; amending s. 121.091, F.S.;
5	providing retirement benefits payable to public school
6	members; providing retroactive applicability; providing
7	for funding of the revision of the Florida Retirement
8	System by this act; providing an effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1. Subsection (62) is added to section 121.021,
13	Florida Statutes, to read:
14	121.021 Definitions.--The following words and phrases as
15	used in this chapter have the respective meanings set forth
16	unless a different meaning is plainly required by the context:
17	(62) "Public school member" means a member of the Florida
18	Retirement System Regular Class who is employed by a district
19	school system, a public charter school, or the Florida School
20	for the Deaf and the Blind.
21	Section 2. Subsection (1) of section 121.091, Florida
22	Statutes, is amended to read:
23	121.091 Benefits payable under the system.--Benefits may
24	not be paid under this section unless the member has terminated
25	employment as provided in s. 121.021(39)(a) or begun
26	participation in the Deferred Retirement Option Program as
27	provided in subsection (13), and a proper application has been
28	filed in the manner prescribed by the department. The department
29	may cancel an application for retirement benefits when the
30	member or beneficiary fails to timely provide the information
31	and documents required by this chapter and the department's
32	rules. The department shall adopt rules establishing procedures
33	for application for retirement benefits and for the cancellation
34	of such application when the required information or documents
35	are not received.
36	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
37	normal retirement date, the member, upon application to the
38	administrator, shall receive a monthly benefit which shall begin
39	to accrue on the first day of the month of retirement and be
40	payable on the last day of that month and each month thereafter
41	during his or her lifetime. The normal retirement benefit,
42	including any past or additional retirement credit, may not
43	exceed 100 percent of the average final compensation. The amount
44	of monthly benefit shall be calculated as the product of A and
45	B, subject to the adjustment of C, if applicable, as set forth
46	below:
47	(a)1.a.For creditable years of Regular Class service, A
48	is 1.60 percent of the member's average final compensation, up
49	to the member's normal retirement date. Upon completion of the
50	first year after the normal retirement date, A is 1.63 percent
51	of the member's average final compensation. Following the second
52	year after the normal retirement date, A is 1.65 percent of the
53	member's average final compensation. Following the third year
54	after the normal retirement date, and for subsequent years, A is
55	1.68 percent of the member's average final compensation.
56	b. For creditable years of Regular Class service, public
57	school members shall have A determined under the provisions of
58	sub-subparagraph 1.a. for service up to the "applicability
59	date," and according to the following table for service earned
60	after the "applicability date":
61
62	@_@0@_@
63	Applicability date means July 1, 2004, adjusted as follows:
64	for each year of creditable service as a public school member
65	earned after the applicability date, 2 years will be subtracted
66	from the applicability date up to a maximum adjustment of 18
67	years.
68	2. For creditable years of special risk service, A is:
69	a. Two percent of the member's average final compensation
70	for all creditable years prior to October 1, 1974;
71	b. Three percent of the member's average final
72	compensation for all creditable years after September 30, 1974,
73	and before October 1, 1978;
74	c. Two percent of the member's average final compensation
75	for all creditable years after September 30, 1978, and before
76	January 1, 1989;
77	d. Two and two-tenths percent of the member's final
78	monthly compensation for all creditable years after December 31,
79	1988, and before January 1, 1990;
80	e. Two and four-tenths percent of the member's average
81	final compensation for all creditable years after December 31,
82	1989, and before January 1, 1991;
83	f. Two and six-tenths percent of the member's average
84	final compensation for all creditable years after December 31,
85	1990, and before January 1, 1992;
86	g. Two and eight-tenths percent of the member's average
87	final compensation for all creditable years after December 31,
88	1991, and before January 1, 1993;
89	h. Three percent of the member's average final
90	compensation for all creditable years after December 31, 1992;
91	and
92	i. Three percent of the member's average final
93	compensation for all creditable years of service after September
94	30, 1978, and before January 1, 1993, for any special risk
95	member who retires after July 1, 2000, or any member of the
96	Special Risk Administrative Support Class entitled to retain the
97	special risk normal retirement date who was a member of the
98	Special Risk Class during the time period and who retires after
99	July 1, 2000.
100	3. For creditable years of Senior Management Service Class
101	service after January 31, 1987, A is 2 percent;
102	4. For creditable years of Elected Officers' Class service
103	as a Supreme Court Justice, district court of appeal judge,
104	circuit judge, or county court judge, A is 31/3 percent of the
105	member's average final compensation, and for all other
106	creditable service in such class, A is 3 percent of average
107	final compensation;
108	(b) B is the number of the member's years and any
109	fractional part of a year of creditable service earned
110	subsequent to November 30, 1970; and
111	(c) C is the normal retirement benefit credit brought
112	forward as of November 30, 1970, by a former member of an
113	existing system. Such normal retirement benefit credit shall be
114	determined as the product of X and Y when X is the percentage of
115	average final compensation which the member would have been
116	eligible to receive if the member had attained his or her normal
117	retirement date as of November 30, 1970, all in accordance with
118	the existing system under which the member is covered on
119	November 30, 1970, and Y is average final compensation as
120	defined in s. 121.021(25). However, any member of an existing
121	retirement system who is eligible to retire and who does retire,
122	become disabled, or die prior to April 15, 1971, may have his or
123	her retirement benefits calculated on the basis of the best 5 of
124	the last 10 years of service.
125	(d) A member's average final compensation shall be
126	determined by formula to obtain the coverage for the 5 highest
127	fiscal years' salaries, calculated as provided by rule.
128	Section 3. It is the intent of the Legislature that costs
129	attributable to benefit increases for regular class public
130	school members shall be funded by recognition of lump sums from
131	the excess actuarial assets of the Florida Retirement System
132	Trust Fund as follows:
133	(1) For fiscal year 2004-2005, the lump sum to be
134	recognized shall be the lesser of:
135	(a) The amount available under the rate stabilization
136	mechanism described in s. 121.031, Florida Statutes; or
137	(b) The amount needed to pay the annual cost attributable
138	to the increased benefit accrual rate for public school members.
139	The annual cost shall consist of the increase in normal cost for
140	public school members plus payment of the 30-year amortization
141	amount of the increase in the actuarial accrued liability
142	attributable to the increase, equal to 2.51 percent of the
143	public school member payroll or $212 million for the fiscal year
144	2004-2005.
145
146	If, after the recognition of excess actuarial assets pursuant to
147	this subsection, there remains an unfunded cost, the
148	contribution rate applicable to public school members shall be
149	increased by the difference between the annual cost and the
150	amount provided by the excess actuarial assets, unless the
151	Legislature provides an alternate funding mechanism.
152	(2) For fiscal years starting 2005-2006 and thereafter,
153	the Legislature shall, as provided in subsection (1), continue
154	to fund on an ongoing basis the annual cost attributable to the
155	formula improvements.
156	Section 4. This act shall take effect July 1, 2003.