HB 1907

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.71, F.S.;
3	revising the payroll contribution rates for the membership
4	classes of the Florida Retirement System for the state
5	fiscal years effective July 1, 2005, and July 1, 2006;
6	amending s. 121.40, F.S.; revising the payroll
7	contribution rate for the Institute of Food and
8	Agricultural Sciences, effective July 1, 2005; providing a
9	declaration of important state interest; amending s.
10	121.74, F.S.; reducing the administrative and educational
11	assessments paid to the State Board of Administration;
12	providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Section 121.71, Florida Statutes, is amended to
17	read:
18	121.71  Uniform rates; process; calculations; levy.--
19	(1)  In conducting the system actuarial study required
20	under s. 121.031, the actuary shall follow all requirements
21	specified thereunder to determine, by Florida Retirement System
22	employee membership class, the dollar contribution amounts
23	necessary for the forthcoming fiscal year for the defined
24	benefit program. In addition, the actuary shall determine, by
25	Florida Retirement System membership class, based on an estimate
26	for the forthcoming fiscal year of the gross compensation of
27	employees participating in the optional retirement program, the
28	dollar contribution amounts necessary to make the allocations
29	required under ss. 121.72 and 121.73. For each employee
30	membership class and subclass, the actuarial study shall
31	establish a uniform rate necessary to fund the benefit
32	obligations under both Florida Retirement System retirement
33	plans, by dividing the sum of total dollars required by the
34	estimated gross compensation of members in both plans.
35	(2)  Based on the uniform rates set forth in subsection
36	(3), employers shall make monthly contributions to the Division
37	of Retirement, which shall initially deposit the funds into the
38	Florida Retirement System Contributions Clearing Trust Fund. A
39	change in a contribution rate is effective the first day of the
40	month for which a full month's employer contribution may be made
41	on or after the beginning date of the change.
42	(3)  Required employer retirement contribution rates for
43	each membership class and subclass of the Florida Retirement
44	System for both retirement plans are as follows:
	Percentage of Percentage of
45
	Gross Gross
46
	Compensation, Compensation,
47
	Effective Effective
48
	Membership Class July 1, 2005 July 1, 2006
49
	2004 2005
50
	Regular Class 6.67%  6.20% 9.53%  9.98%
51
	Special Risk Class 17.37% 17.34% 21.91% 22.16%
52
	Special Risk Administrative
53
	Support Class 8.76%  8.73% 12.39% 12.55%
54
	Elected Officers' Class -
55
	Legislators, Governor,
56
	Lt. Governor,
57
	Cabinet Officers,
58
	State Attorneys,
59
	Public Defenders 11.33% 11.30% 14.86% 15.82%
60
	Elected Officers' Class -
61
	Justices, Judges 17.49% 17.46% 20.43% 20.78%
62
	Elected Officers' Class -
63
	County Elected Officers 14.07% 14.04% 17.00% 17.73%
64
	Senior Management Class 9.29%  8.18% 13.27% 11.64%
65
	DROP 8.22%  8.00% 11.74% 11.56%
66
67
68	(4)  The state actuary shall recognize and use an
69	appropriate level of available excess assets of the Florida
70	Retirement System Trust Fund to offset the difference between
71	the normal costs of the Florida Retirement System and the
72	statutorily prescribed contribution rates.
73	Section 2.  Subsection (12) of section 121.40, Florida
74	Statutes, is amended to read:
75	121.40  Cooperative extension personnel at the Institute of
76	Food and Agricultural Sciences; supplemental retirement
77	benefits.--
78	(12)  CONTRIBUTIONS.--
79	(a)  For the purposes of funding the supplemental benefits
80	provided by this section, the institute is authorized and
81	required to pay, commencing July 1, 1985, the necessary monthly
82	contributions from its appropriated budget. These amounts shall
83	be paid into the Institute of Food and Agricultural Sciences
84	Supplemental Retirement Trust Fund, which is hereby created.
85	(b)  The monthly contributions required to be paid pursuant
86	to paragraph (a) on the gross monthly salaries, from all sources
87	with respect to such employment, paid to those employees of the
88	institute who hold both state and federal appointments and who
89	participate in the federal Civil Service Retirement System shall
90	be as follows:
	Dates of Contribution Percentage
91
	Rate Changes Due
92
	July 1, 1985, through December 31, 1988 6.68%
93
	January 1, 1989, through December 31, 1993 6.35%
94
	January 1, 1994, through December 31, 1994 6.69%
95
	January 1, 1995, through June 30, 1996 6.82%
96
	July 1, 1996, through June 30, 1998 5.64%
97
	July 1, 1998, through June 30, 2001 7.17%
98
	July 1, 2001, through June 30, 2003 6.96%
99
	Effective July 1, 2003, through June 30, 2005 13.83%
100
	Effective July 1, 2005, through June 30, 2007 20.23%
101
102
103	Section 3.  The Legislature finds that a proper and
104	legitimate state purpose is served when employees and retirees
105	of the state and its political subdivisions, and the dependents,
106	survivors, and beneficiaries of such employees and retirees, are
107	extended the basic protections afforded by governmental
108	retirement systems. These persons must be provided benefits that
109	are fair and adequate and that are managed, administered, and
110	funded in an actuarially sound manner, as required by Section
111	14, Article X of the State Constitution, and part VII of chapter
112	112, Florida Statutes. Therefore, the Legislature determines and
113	declares that this act fulfills an important state interest.
114	Section 4.  Section 121.74, Florida Statutes, is amended to
115	read:
116	121.74  Administrative and educational expenses.--Effective
117	July 1, 2004, In addition to contributions required under s.
118	121.71, employers participating in the Florida Retirement System
119	shall contribute an amount equal to 0.05 0.08 percent of the
120	payroll reported for each class or subclass of Florida
121	Retirement System membership, which amount shall be transferred
122	by the Division of Retirement from the Florida Retirement System
123	Contributions Clearing Trust Fund to the State Board of
124	Administration's Administrative Trust Fund to offset the costs
125	of administering the optional retirement program and the costs
126	of providing educational services to participants in the defined
127	benefit program and the optional retirement program. Approval of
128	the Trustees of the State Board of Administration is required
129	prior to the expenditure of these funds. Payments for third-
130	party administrative or educational expenses shall be made only
131	pursuant to the terms of the approved contracts for such
132	services.
133	Section 5.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.