Senate Bill sb1152
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Florida Senate - 2005 SB 1152
By Senator Argenziano
3-367B-05
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, 2005, and July 1, 2006;
7 amending s. 121.40, F.S.; revising the payroll
8 contribution rate for the Institute of Food and
9 Agricultural Sciences, effective July 1, 2005;
10 providing a declaration of important state
11 interest; providing an effective date.
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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 - 2005 SB 1152
3-367B-05
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:
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16 Percentage of Percentage of
17 Gross Gross
18 Compensation, Compensation,
19 Effective Effective
20 Membership Class July 1, 2005 July 1, 2006
21 2004 2005
22 Regular Class _____% 6.20% _____% 9.98%
23 Special Risk Class _____% 17.34% _____% 22.16%
24 Special Risk Administrative
25 Support Class _____% 8.73% _____% 12.55%
26 Elected Officers' Class -
27 Legislators, Governor,
28 Lt. Governor,
29 Cabinet Officers,
30 State Attorneys,
31 Public Defenders _____% 11.30% _____% 15.82%
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Florida Senate - 2005 SB 1152
3-367B-05
1 Elected Officers' Class -
2 Justices, Judges _____% 17.46% _____% 20.78%
3 Elected Officers' Class -
4 County Elected Officers _____% 14.04% _____% 17.73%
5 Senior Management Class _____% 8.18% _____% 11.64%
6 DROP _____% 8.00% _____% 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 - 2005 SB 1152
3-367B-05
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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 2005
13 Effective July 1, 2005 _____%
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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 July 1, 2005.
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Florida Senate - 2005 SB 1152
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2 SENATE SUMMARY
3 Establishes the payroll contribution rates for the
Florida Retirement System for the 2005 and 2006 state
4 fiscal years. Establishes the supplemental retirement
rate for the Institute of Food and Agricultural Sciences
5 which is effective in the 2005 state fiscal year.
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