Senate Bill sb0420c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2003 CS for SB 420
By the Committee on Appropriations; and Senator Pruitt
309-2082-03
1 A bill to be entitled
2 An act relating to retirement; amending s.
3 121.71, F.S.; revising the payroll contribution
4 rates of the Florida Retirement System;
5 directing state actuary to use excess assets in
6 certain instances; amending s. 121.74, F.S.;
7 reducing the assessment for administrative and
8 educational expenses; providing a declaration
9 of important state interest; providing an
10 effective date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Subsections (3) and (4) of section 121.71,
15 Florida Statutes, are amended to read:
16 121.71 Uniform rates; process; calculations; levy.--
17 (3) Required employer retirement contribution rates
18 for each membership class and subclass of the Florida
19 Retirement System for both retirement plans are as follows:
20 Rates effective July 1, 2002, reflect an offset to normal
21 employer costs of $1,237,000,000, resulting from recognition
22 and usage of current available excess assets of the Florida
23 Retirement System Trust Fund as determined pursuant to s.
24 121.031. Contribution rates that become effective July 1,
25 2003, reflect normal system costs.
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Florida Senate - 2003 CS for SB 420
309-2082-03
1 Percentage of Percentage of
2 Gross Gross
3 Compensation, Compensation,
4 Effective Effective
5 Membership Class July 1, 2003 July 1, 2004
6 2002 2003
7 Regular Class 6.18% 4.50% 9.96% 9.87%
8 Special Risk Class 17.32% 14.75% 22.15% 22.89%
9 Special Risk Administrative
10 Support Class 8.71% 5.30% 12.58%
11 Elected Officers' Class -
12 Legislators, Governor,
13 Lt. Governor,
14 Cabinet Officers,
15 State Attorneys,
16 Public Defenders 11.28% 8.15% 15.48% 15.43%
17 Elected Officers' Class -
18 Justices, Judges 17.44% 14.60% 20.70% 20.54%
19 Elected Officers' Class -
20 County Elected Officers 14.02% 10.60% 17.81% 17.52%
21 Senior Management Class 8.16% 4.80% 11.59% 11.68%
22 DROP 8.00% 11.56%
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24 (4) Notwithstanding the provisions of subsection (3),
25 and for the fiscal year 2002-2003 only, The state actuary
26 shall recognize and use an appropriate level of available
27 excess assets of the Florida Retirement System Trust Fund to
28 offset the difference between the normal costs of the Florida
29 Retirement System and the statutorily prescribed contribution
30 rates. This subsection expires July 1, 2003.
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Florida Senate - 2003 CS for SB 420
309-2082-03
1 Section 2. Section 121.74, Florida Statutes, is
2 amended to read:
3 121.74 Administrative and educational
4 expenses.--Effective July 1, 2003 2002, in addition to
5 contributions required under s. 121.71, employers
6 participating in the Florida Retirement System shall
7 contribute an amount equal to 0.08 0.15 percent of the payroll
8 reported for each class or subclass of Florida Retirement
9 System membership, which amount shall be transferred by the
10 Division of Retirement from the Florida Retirement System
11 Contributions Clearing Trust Fund to the State Board of
12 Administration's Administrative Trust Fund to offset the costs
13 of administering the optional retirement program and the costs
14 of providing educational services to participants in the
15 defined benefit program and the optional retirement program.
16 Approval of the Trustees of the State Board of Administration
17 is required prior to the expenditure of these funds. Payments
18 for third-party administrative or educational expenses shall
19 be made only pursuant to the terms of the approved contracts
20 for such services.
21 Section 3. The Legislature finds that a proper and
22 legitimate state purpose is served when employees and retirees
23 of the state and its political subdivisions, and the
24 dependents, survivors, and beneficiaries of such employees and
25 retirees, are extended the basic protections afforded by
26 governmental retirement systems. These persons must be
27 provided benefits that are fair and adequate and that are
28 managed, administered, and funded in an actuarially sound
29 manner, as required by Section 14, Article X of the State
30 Constitution, and part VII of chapter 112, Florida Statutes.
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Florida Senate - 2003 CS for SB 420
309-2082-03
1 Therefore, the Legislature hereby determines and declares that
2 this act fulfills an important state interest.
3 Section 4. This act shall take effect July 1, 2003.
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5 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
6 Senate Bill 420
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8 The Committee Substitute for Senate Bill 420 revises the
employer paid contribution rates for the Florida Retirement
9 System, reduces the assessment paid by employers to cover the
costs incurred by the State Board of Administration for
10 administrative and educational expenses associated with the
defined contribution program, and determines and declares that
11 this act fulfills an important state interest.
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