Senate Bill sb1152c1

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    Florida Senate - 2005                           CS for SB 1152

    By the Committee on Governmental Oversight and Productivity;
    and Senator Argenziano




    585-1817A-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.

12  

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

14  

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                           CS for SB 1152
    585-1817A-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:

15  

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%     9.53% 9.98%

23  Special Risk Class              17.34%     21.91% 22.16%

24  Special Risk Administrative                

25    Support Class                  8.73%     12.39% 12.55%

26  Elected Officers' Class -                  

27    Legislators, Governor,                   

28    Lt. Governor,                            

29    Cabinet Officers,                        

30    State Attorneys,                         

31    Public Defenders              11.30%     14.86% 15.82%

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    Florida Senate - 2005                           CS for SB 1152
    585-1817A-05




 1  Elected Officers' Class -                  

 2    Justices, Judges              17.46%     20.43% 20.78%

 3  Elected Officers' Class -                  

 4    County Elected Officers       14.04%     17.00% 17.73%

 5  Senior Management Class          8.18%     13.27% 11.64%

 6  DROP                             8.00%     11.74% 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                           CS for SB 1152
    585-1817A-05




 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  2005

13  Effective July 1, 2005, through June 30,             20.23%

14  2007

15  

16         Section 3.  The Legislature finds that a proper and

17  legitimate state purpose is served when employees and retirees

18  of the state and its political subdivisions, and the

19  dependents, survivors, and beneficiaries of such employees and

20  retirees, are extended the basic protections afforded by

21  governmental retirement systems. These persons must be

22  provided benefits that are fair and adequate and that are

23  managed, administered, and funded in an actuarially sound

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

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

26  Therefore, the Legislature determines and declares that this

27  act fulfills an important state interest.

28         Section 4.  This act shall take effect July 1, 2005.

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    Florida Senate - 2005                           CS for SB 1152
    585-1817A-05




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1152

 3                                 

 4  The CS continues the payroll contribution rates charged FRS
    member employers at the current year level and increases them
 5  for the fiscal year beginning July 1, 2006 to the full, normal
    cost rates recommended by the consulting actuary to the
 6  Division of Retirement. The CS raises the rates charged the
    separately funded Institute of Food and Agricultural Sciences
 7  at the University of Florida from 13.83 percent to 20.23
    percent for the biennium beginning July 1, 2005.
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