HB 0309 2004
1	A bill to be entitled
2	An act relating to retirement; amending s. 121.021, F.S.;
3	redefining the term "average final compensation" with
4	respect to the Florida Retirement System; revising
5	contribution rates as part of the funding process;
6	providing a declaration of important state interest;
7	providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1. Subsection (24) of section 121.021, Florida
12	Statutes, is amended to read:
13	121.021 Definitions.--The following words and phrases as
14	used in this chapter have the respective meanings set forth
15	unless a different meaning is plainly required by the context:
16	(24) "Average final compensation" means the average of the
17	3 5highest fiscal years of compensation for creditable service
18	prior to retirement, termination, or death. For in-line-of-duty
19	disability benefits, if less than 3 5years of creditable
20	service have been completed, the term "average final
21	compensation" means the average annual compensation of the total
22	number of years of creditable service. Each year used in the
23	calculation of average final compensation shall commence on July
24	1.
25	(a) The average final compensation shall include:
26	1. Accumulated annual leave payments, not to exceed 500
27	hours; and
28	2. All payments defined as compensation in subsection
29	(22).
30	(b) The average final compensation shall not include:
31	1. Compensation paid to professional persons for special
32	or particular services;
33	2. Payments for accumulated sick leave made due to
34	retirement or termination;
35	3. Payments for accumulated annual leave in excess of 500
36	hours;
37	4. Bonuses as defined in subsection (47);
38	5. Third party payments made on and after July 1, 1990; or
39	6. Fringe benefits (for example, automobile allowances or
40	housing allowances).
41	Section 2. Effective July 1, 2004, for the purposes of
42	funding the 3-year average final compensation benefit change,
43	the contribution rate for the below-named classes of the Florida
44	Retirement System shall be increased, as follows:
45	(a) The contribution rate that applies to the Regular
46	Class of the Florida Retirement System shall be increased by
47	1.06 percentage points.
48	(b) The contribution rate that applies to the Special Risk
49	Class of the Florida Retirement System shall be increased by
50	2.14 percentage points.
51	(c) The contribution rate that applies to the Special Risk
52	Administrative Support Class of the Florida Retirement System
53	shall be increased by 1.67 percentage points.
54	(d) The contribution rate that applies to the Judicial
55	subclass of the Elected Officers' Class of the Florida
56	Retirement System shall increase by 1.87 percentage points.
57	(e) The contribution rate that applies to the legislative-
58	attorney-Cabinet subclass of the Elected Officers' Class of the
59	Florida Retirement Class shall be increased by 1.79 percentage
60	points.
61	(f) The contribution rate that applies to the County
62	Officers' subclass of the Elected Officers' Class of the Florida
63	Retirement System shall be increased by 1.66 percentage points.
64	(g) The contribution rate that applies to the Senior
65	Management Service Class of the Florida Retirement System shall
66	be increased by 1.45 percentage points.
67
68	These increases shall be in addition to all changes to such
69	contribution rates which may be enacted into law to take effect
70	on that date. The Division of Statutory Revision is directed to
71	adjust the contribution rates set forth in ss. 121.052, 121.055,
72	and 121.071, Florida Statutes.
73	Section 3. The Legislature finds that a proper and
74	legitimate state purpose is served when employees and retirees
75	of the state and its political subdivisions and the dependents,
76	survivors, and beneficiaries of such employees and retirees are
77	extended the basic protections afforded by governmental
78	retirement systems that provide fair and adequate benefits and
79	that are managed, administered, and funded in an actuarially
80	sound manner, as required by s. 14, Art. X, of the State
81	Constitution and part VII of chapter 112, Florida Statutes.
82	Therefore, the Legislature determines and declares that this act
83	fulfills an important state interest.
84	Section 4. This act shall take effect July 1, 2004.