Senate Bill sb2230c1
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Florida Senate - 2004 CS for SB 2230
By the Committee on Governmental Oversight and Productivity
302-2225-04
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 through
10 June 30, 2005; amending s. 121.74, F.S.;
11 reducing the fee imposed for the cost of
12 administration; providing a declaration of
13 important state interest; providing an
14 effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Section 121.71, Florida Statutes, is
19 amended to read:
20 121.71 Uniform rates; process; calculations; levy.--
21 (1) In conducting the system actuarial study required
22 under s. 121.031, the actuary shall follow all requirements
23 specified thereunder to determine, by Florida Retirement
24 System employee membership class, the dollar contribution
25 amounts necessary for the forthcoming fiscal year for the
26 defined benefit program. In addition, the actuary shall
27 determine, by Florida Retirement System membership class,
28 based on an estimate for the forthcoming fiscal year of the
29 gross compensation of employees participating in the optional
30 retirement program, the dollar contribution amounts necessary
31 to make the allocations required under ss. 121.72 and 121.73.
1
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Florida Senate - 2004 CS for SB 2230
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1 For each employee membership class and subclass, the actuarial
2 study shall establish a uniform rate necessary to fund the
3 benefit obligations under both Florida Retirement System
4 retirement plans, by dividing the sum of total dollars
5 required by the estimated gross compensation of members in
6 both plans.
7 (2) Based on the uniform rates set forth in subsection
8 (3), employers shall make monthly contributions to the
9 Division of Retirement, which shall initially deposit the
10 funds into the Florida Retirement System Contributions
11 Clearing Trust Fund. A change in a contribution rate is
12 effective the first day of the month for which a full month's
13 employer contribution may be made on or after the beginning
14 date of the change.
15 (3) Required employer retirement contribution rates
16 for each membership class and subclass of the Florida
17 Retirement System for both retirement plans are as follows:
18
19 Percentage of Percentage of
20 Gross Gross
21 Compensation, Compensation,
22 Effective Effective
23 Membership Class July 1, 2004 July 1, 2005
24 2003 2004
25 Regular Class 6.20% 6.18% 9.98% 10.07%
26 Special Risk Class 17.34% 17.32% 22.16% 22.15%
27 Special Risk Administrative
28 Support Class 8.73% 8.71% 12.55% 12.58%
29 Elected Officers' Class -
30 Legislators, Governor,
31 Lt. Governor,
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Florida Senate - 2004 CS for SB 2230
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1 Cabinet Officers,
2 State Attorneys,
3 Public Defenders 11.30% 11.28% 15.82% 15.48%
4 Elected Officers' Class -
5 Justices, Judges 17.46% 17.44% 20.78% 20.70%
6 Elected Officers' Class -
7 County Elected Officers 14.04% 14.02% 17.73% 17.81%
8 Senior Management Class 8.18% 8.16% 11.64% 11.59%
9 DROP 8.00% 11.56%
10
11 (4) The state actuary shall recognize and use an
12 appropriate level of available excess assets of the Florida
13 Retirement System Trust Fund to offset the difference between
14 the normal costs of the Florida Retirement System and the
15 statutorily prescribed contribution rates.
16 Section 2. Subsection (12) of section 121.40, Florida
17 Statutes, is amended to read:
18 121.40 Cooperative extension personnel at the
19 Institute of Food and Agricultural Sciences; supplemental
20 retirement benefits.--
21 (12) CONTRIBUTIONS.--
22 (a) For the purposes of funding the supplemental
23 benefits provided by this section, the institute is authorized
24 and required to pay, commencing July 1, 1985, the necessary
25 monthly contributions from its appropriated budget. These
26 amounts shall be paid into the Institute of Food and
27 Agricultural Sciences Supplemental Retirement Trust Fund,
28 which is hereby created.
29 (b) The monthly contributions required to be paid
30 pursuant to paragraph (a) on the gross monthly salaries, from
31 all sources with respect to such employment, paid to those
3
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Florida Senate - 2004 CS for SB 2230
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1 employees of the institute who hold both state and federal
2 appointments and who participate in the federal Civil Service
3 Retirement System shall be as follows:
4
5 Dates of Contribution Percentage
6 Rate Changes Due
7 July 1, 1985, through December 31, 1988 6.68%
8 January 1, 1989, through December 31, 1993 6.35%
9 January 1, 1994, through December 31, 1994 6.69%
10 January 1, 1995, through June 30, 1996 6.82%
11 July 1, 1996, through June 30, 1998 5.64%
12 July 1, 1998, through June 30, 2001 7.17%
13 July 1, 2001, through June 30, 2003 6.96%
14 Effective July 1, 2003, through June 30, 13.83%
15 2005
16 Section 3. Section 121.74, Florida Statutes, is
17 amended to read:
18 121.74 Administrative and educational
19 expenses.--Effective July 1, 2004 2003, in addition to
20 contributions required under s. 121.71, employers
21 participating in the Florida Retirement System shall
22 contribute an amount equal to 0.08 0.10 percent of the payroll
23 reported for each class or subclass of Florida Retirement
24 System membership, which amount shall be transferred by the
25 Division of Retirement from the Florida Retirement System
26 Contributions Clearing Trust Fund to the State Board of
27 Administration's Administrative Trust Fund to offset the costs
28 of administering the optional retirement program and the costs
29 of providing educational services to participants in the
30 defined benefit program and the optional retirement program.
31 Approval of the Trustees of the State Board of Administration
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Florida Senate - 2004 CS for SB 2230
302-2225-04
1 is required prior to the expenditure of these funds. Payments
2 for third-party administrative or educational expenses shall
3 be made only pursuant to the terms of the approved contracts
4 for such services.
5 Section 4. The Legislature finds that a proper and
6 legitimate state purpose is served when employees and retirees
7 of the state and its political subdivisions, and the
8 dependents, survivors, and beneficiaries of such employees and
9 retirees, are extended the basic protections afforded by
10 governmental retirement systems. These persons must be
11 provided benefits that are fair and adequate and that are
12 managed, administered, and funded in an actuarially sound
13 manner, as required by Section 14, Article X of the State
14 Constitution, and part VII of chapter 112, Florida Statutes.
15 Therefore, the Legislature determines and declares that this
16 act fulfills an important state interest.
17 Section 5. This act shall take effect upon becoming a
18 law.
19
20 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
21 Senate Bill 2230
22
23 The Committee Substitute raises the FRS employer contribution
rates by an amount less than that in the original bill,
24 continues the rates imposed on the supplemental retirement
program at the Institute of Food And Agricultural Sciences at
25 the University of Florida at the 2003 level, and reduces by 2
basis points (.0002) the fees charged for the administration
26 of the portable defined contribution pension plan administered
through the Board of Administration.
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