HB 0429 2004
1	A bill to be entitled
2	An act relating to special risk membership in the Florida
3	Retirement System; amending s. 121.0515, F.S.; eliminating
4	the Special Risk Administrative Support Class of the
5	Florida Retirement System and providing that members of
6	the Special Risk Administrative Support Class shall become
7	members of the Special Risk Class; amending ss. 110.205,
8	121.021, 121.051, 121.055, 121.071, 121.091, 121.4501,
9	121.71, 121.72, and 121.73, F.S., to conform; providing an
10	effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. Paragraph (a) of subsection (7) of section
15	121.0515, Florida Statutes, is amended to read:
16	121.0515 Special risk membership.--
17	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.--
18	(a) A special risk member who is moved or reassigned to a
19	nonspecial risk law enforcement, firefighting, correctional, or
20	emergency medical care administrative support position with the
21	same agency, or who is subsequently employed in such a position
22	with any law enforcement, firefighting, correctional, or
23	emergency medical care agency under the Florida Retirement
24	System, shall participate in the Special Risk Administrative
25	SupportClass and shall earn credit for such service at the same
26	percentage rate as that earned by a special risk regularmember.
27	Notwithstanding the provisions of subsection (4), service in
28	such an administrative support position shall, for purposes of
29	s. 121.091, apply toward satisfaction of the special risk normal
30	retirement date, as defined in s. 121.021(29)(b), provided that,
31	while in such position, the member remains certified as a law
32	enforcement officer, firefighter, correctional officer,
33	emergency medical technician, or paramedic; remains subject to
34	reassignment at any time to a position qualifying for special
35	risk membership;and completes an aggregate of 6 or more years
36	of service as a designated special risk member prior to
37	retirement.
38	Section 2. Paragraph (x) of subsection (2) of section
39	110.205, Florida Statutes, is amended to read:
40	110.205 Career service; exemptions.--
41	(2) EXEMPT POSITIONS.--The exempt positions that are not
42	covered by this part include the following:
43	(x) Managerial employees, as defined in s. 447.203(4),
44	confidential employees, as defined in s. 447.203(5), and
45	supervisory employees who spend the majority of their time
46	communicating with, motivating, training, and evaluating
47	employees, and planning and directing employees' work, and who
48	have the authority to hire, transfer, suspend, lay off, recall,
49	promote, discharge, assign, reward, or discipline subordinate
50	employees or effectively recommend such action, including all
51	employees serving as supervisors, administrators, and directors.
52	Excluded are employees also designated as special risk or
53	special risk administrative supportand attorneys who serve as
54	administrative law judges pursuant to s. 120.65 or for hearings
55	conducted pursuant to s. 120.57(1)(a). Additionally, registered
56	nurses licensed under chapter 464, dentists licensed under
57	chapter 466, psychologists licensed under chapter 490 or chapter
58	491, nutritionists or dietitians licensed under part X of
59	chapter 468, pharmacists licensed under chapter 465,
60	psychological specialists licensed under chapter 491, physical
61	therapists licensed under chapter 486, and speech therapists
62	licensed under part I of chapter 468 are excluded, unless
63	otherwise collectively bargained.
64	Section 3. Subsection (12) of section 121.021, Florida
65	Statutes, is amended to read:
66	121.021 Definitions.--The following words and phrases as
67	used in this chapter have the respective meanings set forth
68	unless a different meaning is plainly required by the context:
69	(12) "Member" means any officer or employee who is covered
70	or who becomes covered under this system in accordance with this
71	chapter. On and after December 1, 1970, all new members and
72	those members transferring from existing systems shall be
73	divided into the following classes: "Special Risk Class," as
74	provided in s. 121.0515(2); "Special Risk Administrative Support
75	Class," as provided in s. 121.0515(7);"Elected Officers'
76	Class," as provided in s. 121.052; "Senior Management Service
77	Class," as provided in s. 121.055; and "Regular Class," which
78	consists of all members who are not in the Special Risk Class,
79	Special Risk Administrative Support Class,Elected Officers'
80	Class, or Senior Management Service Class.
81	Section 4. Subsection (9) of section 121.051, Florida
82	Statutes, is amended to read:
83	121.051 Participation in the system.--
84	(9) DUAL EMPLOYMENT.--A member may not participate in more
85	than one state-administered retirement system, plan, or class of
86	membership simultaneously. Pursuant thereto:
87	(a) With respect to any member who is not eligible to
88	participate in the Elected Officers' Class, but who is
89	simultaneously employed in two or more positions covered by
90	different Florida Retirement System classes:
91	1. The member must participate in the membership class for
92	the position in which he or she is employed the majority of the
93	time: the Regular Class, Senior Management Service Class, or
94	Special Risk Class, or Special Risk Administrative Support
95	Class; or
96	2. If the employment is split equally between or among
97	positions, the member may choose any single class of membership
98	for which he or she is eligible, whether or not the positions
99	are full-time positions. The member's choice must be made in
100	writing and remains in effect as long as the member is employed
101	equally in two or more positions.
102	(b) Contributions shall be made and creditable service
103	shall be determined as follows:
104	1. If the member is participating in the Regular Class,
105	retirement contributions shall be made on the total salary the
106	member has received for all covered employment, and at
107	retirement the member's average final compensation shall be
108	calculated on the total salary received from all covered
109	employment.
110	2. If the member is participating in the Senior Management
111	Service Class or, Special Risk Class, or Special Risk
112	Administrative Support Class,retirement contributions shall be
113	made only on the salary received in the designated class of
114	membership. At retirement, the member's average final
115	compensation shall be based only on the salary received in the
116	designated class of membership for any period, including any
117	period of dual employment.
118	Section 5. Paragraph (c) of subsection (6) of section
119	121.055, Florida Statutes, is amended to read:
120	121.055 Senior Management Service Class.--There is hereby
121	established a separate class of membership within the Florida
122	Retirement System to be known as the "Senior Management Service
123	Class," which shall become effective February 1, 1987.
124	(6)
125	(c) Participation.--
126	1. Any eligible employee who is employed on or before
127	February 1, 1987, may elect to participate in the optional
128	annuity program in lieu of participation in the Senior
129	Management Service Class. Such election shall be made in writing
130	and filed with the department and the personnel officer of the
131	employer on or before May 1, 1987. Any eligible employee who is
132	employed on or before February 1, 1987, and who fails to make an
133	election to participate in the optional annuity program by May
134	1, 1987, shall be deemed to have elected membership in the
135	Senior Management Service Class.
136	2. Any employee who becomes eligible to participate in the
137	optional annuity program by reason of initial employment
138	commencing after February 1, 1987, may, within 90 days after the
139	date of commencement of employment, elect to participate in the
140	optional annuity program. Such election shall be made in writing
141	and filed with the personnel officer of the employer. Any
142	eligible employee who does not within 90 days after commencement
143	of such employment elect to participate in the optional annuity
144	program shall be deemed to have elected membership in the Senior
145	Management Service Class.
146	3. A person who is appointed to a position in the Senior
147	Management Service Class and who is a member of an existing
148	retirement system or the Special Risk Class or Special Risk
149	Administrative Support Classesof the Florida Retirement System
150	may elect to remain in such system or class in lieu of
151	participation in the Senior Management Service Class or optional
152	annuity program. Such election shall be made in writing and
153	filed with the department and the personnel officer of the
154	employer within 90 days of such appointment. Any eligible
155	employee who fails to make an election to participate in the
156	existing system, the Special Risk Class of the Florida
157	Retirement System, the Special Risk Administrative Support Class
158	of the Florida Retirement System,or the optional annuity
159	program shall be deemed to have elected membership in the Senior
160	Management Service Class.
161	4. Except as provided in subparagraph 5., an employee's
162	election to participate in the optional annuity program is
163	irrevocable as long as such employee continues to be employed in
164	an eligible position and continues to meet the eligibility
165	requirements set forth in this paragraph.
166	5. Effective from July 1, 2002, through September 30,
167	2002, any active employee in a regularly established position
168	who has elected to participate in the Senior Management Service
169	Optional Annuity Program has one opportunity to choose to move
170	from the Senior Management Service Optional Annuity Program to
171	the Florida Retirement System defined benefit program.
172	a. The election must be made in writing and must be filed
173	with the department and the personnel officer of the employer
174	before October 1, 2002, or, in the case of an active employee
175	who is on a leave of absence on July 1, 2002, within 90 days
176	after the conclusion of the leave of absence. This election is
177	irrevocable.
178	b. The employee will receive service credit under the
179	defined benefit program of the Florida Retirement System equal
180	to his or her years of service under the Senior Management
181	Service Optional Annuity Program. The cost for such credit shall
182	be an amount representing the present value of that employee's
183	accumulated benefit obligation for the affected period of
184	service.
185	c. The employee must transfer the total accumulated
186	employer contributions and earnings on deposit in his or her
187	Senior Management Service Optional Annuity Program account. If
188	the transferred amount is not sufficient to pay the amount due,
189	the employee must pay a sum representing the remainder of the
190	amount due. In no case may the employee retain any employer
191	contributions or earnings thereon from the Senior Management
192	Service Optional Annuity Program account.
193	Section 6. Subsections (1) and (4) of section 121.071,
194	Florida Statutes, are amended to read:
195	121.071 Contributions.--Contributions to the system shall
196	be made as follows:
197	(1) The following tables state the required retirement
198	contribution rates for members of the Regular Class or,Special
199	Risk Class, or Special Risk Administrative Support Classand
200	their employers in terms of a percentage of the member's gross
201	compensation. A change in a contribution rate is effective with
202	the first salary paid on or after the beginning date of the
203	change. Contributions shall be made or deducted as may be
204	appropriate for each pay period and are in addition to the
205	contributions required for social security and the Retiree
206	Health Insurance Subsidy Trust Fund.
207	(a)1. Retirement contributions for regular members are as
208	follows:
209	Dates of Contribution Rate Changes Members Employers
210	July 1, 2001, through June 30, 2002 0% 9.91%
211	2. Effective July 1, 2002, the retirement contributions
212	for regular members shall be specified in s. 121.71.
213	(b)1. Retirement contributions for special risk members
214	are as follows:
215	Dates of Contribution Rate Changes Members Employers
216	July 1, 2001, through June 30, 2002 0% 22.07%
217	2. Effective July 1, 2002, retirement contributions for
218	special risk members shall be specified in s. 121.71.
219	(c)1. Retirement contributions for special risk
220	administrative support members are as follows:
221	@_@4@_@
222	@_@5@_@
223	2. Effective July 1, 2002, retirement contributions for
224	special risk administrative support members shall be specified
225	in s. 121.71.
226	(4) The following table states the required employer
227	contribution on behalf of each member of the Regular Class or,
228	Special Risk Class, or Special Risk Administrative Support Class
229	in terms of a percentage of the member's gross compensation.
230	Such contribution constitutes the entire health insurance
231	subsidy contribution with respect to each such member. A change
232	in the contribution rate is effective with the first salary paid
233	on or after the beginning date of the change. The retiree health
234	insurance subsidy contribution rate is as follows:
235	Dates of Contribution Rate Changes Contribution Rate
236	October 1, 1987, through December 31, 1988 0.24%
237	January 1, 1989, through December 31, 1993 0.48%
238	January 1, 1994, through December 31, 1994 0.56%
239	January 1, 1995, through June 30, 1998 0.66%
240	July 1, 1998, through June 30, 2001 0.94%
241	Effective July 1, 2001 1.11%
242	Such contributions shall be deposited by the administrator in
243	the Retiree Health Insurance Subsidy Trust Fund.
244	Section 7. Paragraph (a) of subsection (1) of section
245	121.091, Florida Statutes, is amended to read:
246	121.091 Benefits payable under the system.--Benefits may
247	not be paid under this section unless the member has terminated
248	employment as provided in s. 121.021(39)(a) or begun
249	participation in the Deferred Retirement Option Program as
250	provided in subsection (13), and a proper application has been
251	filed in the manner prescribed by the department. The department
252	may cancel an application for retirement benefits when the
253	member or beneficiary fails to timely provide the information
254	and documents required by this chapter and the department's
255	rules. The department shall adopt rules establishing procedures
256	for application for retirement benefits and for the cancellation
257	of such application when the required information or documents
258	are not received.
259	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
260	normal retirement date, the member, upon application to the
261	administrator, shall receive a monthly benefit which shall begin
262	to accrue on the first day of the month of retirement and be
263	payable on the last day of that month and each month thereafter
264	during his or her lifetime. The normal retirement benefit,
265	including any past or additional retirement credit, may not
266	exceed 100 percent of the average final compensation. The amount
267	of monthly benefit shall be calculated as the product of A and
268	B, subject to the adjustment of C, if applicable, as set forth
269	below:
270	(a)1. For creditable years of Regular Class service, A is
271	1.60 percent of the member's average final compensation, up to
272	the member's normal retirement date. Upon completion of the
273	first year after the normal retirement date, A is 1.63 percent
274	of the member's average final compensation. Following the second
275	year after the normal retirement date, A is 1.65 percent of the
276	member's average final compensation. Following the third year
277	after the normal retirement date, and for subsequent years, A is
278	1.68 percent of the member's average final compensation.
279	2. For creditable years of special risk service, A is:
280	a. Two percent of the member's average final compensation
281	for all creditable years prior to October 1, 1974;
282	b. Three percent of the member's average final
283	compensation for all creditable years after September 30, 1974,
284	and before October 1, 1978;
285	c. Two percent of the member's average final compensation
286	for all creditable years after September 30, 1978, and before
287	January 1, 1989;
288	d. Two and two-tenths percent of the member's final
289	monthly compensation for all creditable years after December 31,
290	1988, and before January 1, 1990;
291	e. Two and four-tenths percent of the member's average
292	final compensation for all creditable years after December 31,
293	1989, and before January 1, 1991;
294	f. Two and six-tenths percent of the member's average
295	final compensation for all creditable years after December 31,
296	1990, and before January 1, 1992;
297	g. Two and eight-tenths percent of the member's average
298	final compensation for all creditable years after December 31,
299	1991, and before January 1, 1993;
300	h. Three percent of the member's average final
301	compensation for all creditable years after December 31, 1992;
302	and
303	i. Three percent of the member's average final
304	compensation for all creditable years of service after September
305	30, 1978, and before January 1, 1993, for any special risk
306	member who retires after July 1, 2000, or any member of the
307	Special Risk Administrative Support Class entitled to retain the
308	special risk normal retirement date who was a member of the
309	Special Risk Class during the time period and who retires after
310	July 1, 2000.
311	3. For creditable years of Senior Management Service Class
312	service after January 31, 1987, A is 2 percent;
313	4. For creditable years of Elected Officers' Class service
314	as a Supreme Court Justice, district court of appeal judge,
315	circuit judge, or county court judge, A is 31/3 percent of the
316	member's average final compensation, and for all other
317	creditable service in such class, A is 3 percent of average
318	final compensation;
319	Section 8. Paragraph (c) of subsection (3) of section
320	121.4501, Florida Statutes, is amended to read:
321	121.4501 Public Employee Optional Retirement Program.--
322	(3) ELIGIBILITY; RETIREMENT SERVICE CREDIT.--
323	(c)1. Notwithstanding paragraph (b), each eligible
324	employee who elects to participate in the Public Employee
325	Optional Retirement Program and establishes one or more
326	individual participant accounts under the optional program may
327	elect to transfer to the optional program a sum representing the
328	present value of the employee's accumulated benefit obligation
329	under the defined benefit retirement program of the Florida
330	Retirement System. Upon such transfer, all service credit
331	previously earned under the defined benefit program of the
332	Florida Retirement System shall be nullified for purposes of
333	entitlement to a future benefit under the defined benefit
334	program of the Florida Retirement System. A participant is
335	precluded from transferring the accumulated benefit obligation
336	balance from the defined benefit program upon the expiration of
337	the period afforded to enroll in the optional program.
338	2. For purposes of this subsection, the present value of
339	the member's accumulated benefit obligation is based upon the
340	member's estimated creditable service and estimated average
341	final compensation under the defined benefit program, subject to
342	recomputation under subparagraph 3. For state employees
343	enrolling under subparagraph (4)(a)1., initial estimates will be
344	based upon creditable service and average final compensation as
345	of midnight on June 30, 2002; for district school board
346	employees enrolling under subparagraph (4)(b)1., initial
347	estimates will be based upon creditable service and average
348	final compensation as of midnight on September 30, 2002; and for
349	local government employees enrolling under subparagraph
350	(4)(c)1., initial estimates will be based upon creditable
351	service and average final compensation as of midnight on
352	December 31, 2002. The dates respectively specified above shall
353	be construed as the "estimate date" for these employees. The
354	actuarial present value of the employee's accumulated benefit
355	obligation shall be based on the following:
356	a. The discount rate and other relevant actuarial
357	assumptions used to value the Florida Retirement System Trust
358	Fund at the time the amount to be transferred is determined,
359	consistent with the factors provided in sub-subparagraphs b. and
360	c.
361	b. A benefit commencement age, based on the member's
362	estimated creditable service as of the estimate date. The
363	benefit commencement age shall be the younger of the following,
364	but shall not be younger than the member's age as of the
365	estimate date:
366	(I) Age 62; or
367	(II) The age the member would attain if the member
368	completed 30 years of service with an employer, assuming the
369	member worked continuously from the estimate date, and
370	disregarding any vesting requirement that would otherwise apply
371	under the defined benefit program of the Florida Retirement
372	System.
373	c. For members of the Special Risk Class and for members
374	of the Special Risk Administrative Support Class entitled to
375	retain special risk normal retirement date, the benefit
376	commencement age shall be the younger of the following, but
377	shall not be younger than the member's age as of the estimate
378	date:
379	(I) Age 55; or
380	(II) The age the member would attain if the member
381	completed 25 years of service with an employer, assuming the
382	member worked continuously from the estimate date, and
383	disregarding any vesting requirement that would otherwise apply
384	under the defined benefit program of the Florida Retirement
385	System.
386	d. The calculation shall disregard vesting requirements
387	and early retirement reduction factors that would otherwise
388	apply under the defined benefit retirement program.
389	3. For each participant who elects to transfer moneys from
390	the defined benefit program to his or her account in the
391	optional program, the division shall recompute the amount
392	transferred under subparagraph 2. not later than 60 days after
393	the actual transfer of funds based upon the participant's actual
394	creditable service and actual final average compensation as of
395	the initial date of participation in the optional program. If
396	the recomputed amount differs from the amount transferred under
397	subparagraph 2. by $10 or more, the division shall:
398	a. Transfer, or cause to be transferred, from the Florida
399	Retirement System Trust Fund to the participant's account in the
400	optional program the excess, if any, of the recomputed amount
401	over the previously transferred amount together with interest
402	from the initial date of transfer to the date of transfer under
403	this subparagraph, based upon 8 percent effective annual
404	interest, compounded annually.
405	b. Transfer, or cause to be transferred, from the
406	participant's account to the Florida Retirement System Trust
407	Fund the excess, if any, of the previously transferred amount
408	over the recomputed amount, together with interest from the
409	initial date of transfer to the date of transfer under this
410	subparagraph, based upon 6 percent effective annual interest,
411	compounded annually, pro rata based on the participant's
412	allocation plan.
413	4. As directed by the participant, the board shall
414	transfer or cause to be transferred the appropriate amounts to
415	the designated accounts. The board shall establish transfer
416	procedures by rule, but the actual transfer shall not be later
417	than 30 days after the effective date of the member's
418	participation in the optional program unless the major financial
419	markets for securities available for a transfer are seriously
420	disrupted by an unforeseen event which also causes the
421	suspension of trading on any national securities exchange in the
422	country where the securities were issued. In that event, such
423	30-day period of time may be extended by a resolution of the
424	trustees. Transfers are not commissionable or subject to other
425	fees and may be in the form of securities or cash as determined
426	by the state board. Such securities shall be valued as of the
427	date of receipt in the participant's account.
428	5. If the board or the division receives notification from
429	the United States Internal Revenue Service that this paragraph
430	or any portion of this paragraph will cause the retirement
431	system, or a portion thereof, to be disqualified for tax
432	purposes under the Internal Revenue Code, then the portion that
433	will cause the disqualification does not apply. Upon such
434	notice, the state board and the division shall notify the
435	presiding officers of the Legislature.
436	Section 9. Subsection (3) of section 121.71, Florida
437	Statutes, is amended to read:
438	121.71 Uniform rates; process; calculations; levy.--
439	(3) Required employer retirement contribution rates for
440	each membership class and subclass of the Florida Retirement
441	System for both retirement plans are as follows:
442	Membership Class Percentage of Gross Compensation,Effective July 1, 2003 Percentage of Gross Compensation,Effective July 1, 2004
443	Regular Class 6.18% 10.07%
444	Special Risk Class 17.32% 22.15%
445	Special Risk AdministrativeSupport Class 8.71% 12.58%
446	Elected Officers' Class - Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 11.28% 15.48%
447	Elected Officers' Class - Justices, Judges 17.44% 20.70%
448	Elected Officers' Class - County Elected Officers 14.02% 17.81%
449	Senior Management Class 8.16% 11.59%
450	DROP 8.00% 11.56%
451	Section 10. Subsection (4) of section 121.72, Florida
452	Statutes, is amended to read:
453	121.72 Allocations to optional retirement program
454	participant accounts; percentage amounts.--
455	(4) Effective July 1, 2002, allocations from the Florida
456	Retirement System Contributions Clearing Trust Fund to optional
457	retirement program participant accounts shall be as follows:
458	Membership Class Percentage of Gross Compensation
459	Regular Class 9.00%
460	Special Risk Class 20.00%
461	Special Risk Administrative Support Class 11.35%
462	Elected Officers' Class - Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.40%
463	Elected Officers' Class - Justices, Judges 18.90%
464	Elected Officers' Class - County Elected Officers 16.20%
465	Senior Management Service Class 10.95%
466	Section 11. Subsection (3) of section 121.73, Florida
467	Statutes, is amended to read:
468	121.73 Allocations for optional retirement program
469	participant disability coverage; percentage amounts.--
470	(3) Effective July 1, 2002, allocations from the FRS
471	Contribution Clearing Fund to provide disability coverage for
472	participants in the optional retirement program, and to offset
473	the costs of administering said coverage, shall be as follows:
474	Membership Class Percentage of Gross Compensation
475	Regular Class 0.25%
476	Special Risk Class 1.33%
477	Special Risk Administrative Support Class 0.45%
478	Elected Officers' Class - Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%
479	Elected Officers' Class - Justices, Judges 0.73%
480	Elected Officers' Class - County Elected Officers 0.41%
481	Senior Management Service Class 0.26%
482	Section 12. This act shall take effect upon becoming a
483	law.