Senate Bill sb2230

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    Florida Senate - 2004                                  SB 2230

    By the Committee on Governmental Oversight and Productivity





    302-1023B-04

  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 for the membership classes of the Florida

  5         Retirement System for the state fiscal years

  6         effective July 1, 2004, and July 1, 2005;

  7         amending s. 121.40, F.S.; revising the payroll

  8         contribution rates for the Institute of Food

  9         and Agricultural Sciences effective July 1,

10         2004; providing a declaration of important

11         state interest; providing an effective date.

12  

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

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15         Section 1.  Section 121.71, Florida Statutes, is

16  amended to read:

17         121.71  Uniform rates; process; calculations; levy.--

18         (1)  In conducting the system actuarial study required

19  under s. 121.031, the actuary shall follow all requirements

20  specified thereunder to determine, by Florida Retirement

21  System employee membership class, the dollar contribution

22  amounts necessary for the forthcoming fiscal year for the

23  defined benefit program. In addition, the actuary shall

24  determine, by Florida Retirement System membership class,

25  based on an estimate for the forthcoming fiscal year of the

26  gross compensation of employees participating in the optional

27  retirement program, the dollar contribution amounts necessary

28  to make the allocations required under ss. 121.72 and 121.73.

29  For each employee membership class and subclass, the actuarial

30  study shall establish a uniform rate necessary to fund the

31  benefit obligations under both Florida Retirement System

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    Florida Senate - 2004                                  SB 2230
    302-1023B-04




 1  retirement plans, by dividing the sum of total dollars

 2  required by the estimated gross compensation of members in

 3  both plans.

 4         (2)  Based on the uniform rates set forth in subsection

 5  (3), employers shall make monthly contributions to the

 6  Division of Retirement, which shall initially deposit the

 7  funds into the Florida Retirement System Contributions

 8  Clearing Trust Fund. A change in a contribution rate is

 9  effective the first day of the month for which a full month's

10  employer contribution may be made on or after the beginning

11  date of the change.

12         (3)  Required employer retirement contribution rates

13  for each membership class and subclass of the Florida

14  Retirement System for both retirement plans are as follows:

15  

16                               Percentage of Percentage of

17                               Gross         Gross

18                               Compensation, Compensation,

19                               Effective     Effective

20  Membership Class             July 1, 2004  July 1, 2005

21                               2003          2004

22  Regular Class                 6.57%  6.18%  9.98%  10.07%

23  Special Risk Class           17.60% 17.32% 22.16%  22.15%

24  Special Risk Administrative                

25    Support Class               8.99%  8.71% 12.55%  12.58%

26  Elected Officers' Class -                  

27    Legislators, Governor,                   

28    Lt. Governor,                            

29    Cabinet Officers,                        

30    State Attorneys,                         

31    Public Defenders           11.56% 11.28% 15.82%  15.48%

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    Florida Senate - 2004                                  SB 2230
    302-1023B-04




 1  Elected Officers' Class -                  

 2    Justices, Judges           17.72% 17.44% 20.78% 20.70%

 3  Elected Officers' Class -                  

 4    County Elected Officers    14.30% 14.02% 17.73% 17.81%

 5  Senior Management Class       8.44%  8.16% 11.64% 11.59%

 6  DROP                          8.15%  8.00% 11.48% 11.56%

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 8         (4)  The state actuary shall recognize and use an

 9  appropriate level of available excess assets of the Florida

10  Retirement System Trust Fund to offset the difference between

11  the normal costs of the Florida Retirement System and the

12  statutorily prescribed contribution rates.

13         Section 2.  Subsection (12) of section 121.40, Florida

14  Statutes, is amended to read:

15         121.40  Cooperative extension personnel at the

16  Institute of Food and Agricultural Sciences; supplemental

17  retirement benefits.--

18         (12)  CONTRIBUTIONS.--

19         (a)  For the purposes of funding the supplemental

20  benefits provided by this section, the institute is authorized

21  and required to pay, commencing July 1, 1985, the necessary

22  monthly contributions from its appropriated budget. These

23  amounts shall be paid into the Institute of Food and

24  Agricultural Sciences Supplemental Retirement Trust Fund,

25  which is hereby created.

26         (b)  The monthly contributions required to be paid

27  pursuant to paragraph (a) on the gross monthly salaries, from

28  all sources with respect to such employment, paid to those

29  employees of the institute who hold both state and federal

30  appointments and who participate in the federal Civil Service

31  Retirement System shall be as follows:

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    Florida Senate - 2004                                  SB 2230
    302-1023B-04




 1  

 2  Dates of Contribution                              Percentage

 3    Rate Changes                                        Due

 4  July 1, 1985, through December 31, 1988               6.68%

 5  January 1, 1989, through December 31, 1993            6.35%

 6  January 1, 1994, through December 31, 1994            6.69%

 7  January 1, 1995, through June 30, 1996                6.82%

 8  July 1, 1996, through June 30, 1998                   5.64%

 9  July 1, 1998, through June 30, 2001                   7.17%

10  July 1, 2001, through June 30, 2003                   6.96%

11  Effective July 1, 2003, through June 30,             13.83%

12  2004

13  Effective July 1, 2004                               _____%

14  

15         Section 3.  The Legislature finds that a proper and

16  legitimate state purpose is served when employees and retirees

17  of the state and its political subdivisions, and the

18  dependents, survivors, and beneficiaries of such employees and

19  retirees, are extended the basic protections afforded by

20  governmental retirement systems. These persons must be

21  provided benefits that are fair and adequate and that are

22  managed, administered, and funded in an actuarially sound

23  manner, as required by Section 14, Article X of the State

24  Constitution, and part VII of chapter 112, Florida Statutes.

25  Therefore, the Legislature determines and declares that this

26  act fulfills an important state interest.

27         Section 4.  This act shall take effect upon becoming a

28  law.

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    Florida Senate - 2004                                  SB 2230
    302-1023B-04




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 2                          SENATE SUMMARY

 3    Establishes the payroll contribution rates for the
      Florida Retirement System for the 2004 and 2005 state
 4    fiscal years. Establishes the supplemental retirement
      rate for the Institute of Food and Agricultural Sciences
 5    for the 2004 state fiscal year.

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