| 1 | The Local Government Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the Florida Retirement System; amending |
| 7 | s. 121.021, F.S.; redefining the term "compensation" to |
| 8 | include certain supplementary payments made to |
| 9 | firefighters, paramedics, and emergency medical |
| 10 | technicians and to certain employer-reported retirement |
| 11 | contributions; providing a finding of important state |
| 12 | interest; providing an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Paragraph (a) of subsection (22) of section |
| 17 | 121.021, Florida Statutes, is amended to read: |
| 18 | 121.021 Definitions.--The following words and phrases as |
| 19 | used in this chapter have the respective meanings set forth |
| 20 | unless a different meaning is plainly required by the context: |
| 21 | (22) "Compensation" means the monthly salary paid a member |
| 22 | by his or her employer for work performed arising from that |
| 23 | employment. |
| 24 | (a) Compensation shall include: |
| 25 | 1. Overtime payments paid from a salary fund. |
| 26 | 2. Accumulated annual leave payments. |
| 27 | 3. Payments in addition to the employee's base rate of pay |
| 28 | if all the following apply: |
| 29 | a. The payments are paid according to a formal written |
| 30 | policy that applies to all eligible employees equally; |
| 31 | b. The policy provides that payments shall commence no |
| 32 | later than the 11th year of employment; |
| 33 | c. The payments are paid for as long as the employee |
| 34 | continues his or her employment; and |
| 35 | d. The payments are paid at least annually. |
| 36 | 4. Amounts withheld for tax sheltered annuities or |
| 37 | deferred compensation programs, or any other type of salary |
| 38 | reduction plan authorized under the Internal Revenue Code. |
| 39 | 5. Payments made in lieu of a permanent increase in the |
| 40 | base rate of pay, whether made annually or in 12 or 26 equal |
| 41 | payments within a 12-month period, when the member's base pay is |
| 42 | at the maximum of his or her pay range. When a portion of a |
| 43 | member's annual increase raises his or her pay range and the |
| 44 | excess is paid as a lump sum payment, such lump sum payment |
| 45 | shall be compensation for retirement purposes. |
| 46 | 6. Effective July 1, 2002, salary supplements made |
| 47 | pursuant to s. 1012.72 requiring a valid National Board for |
| 48 | Professional Standards certificate, notwithstanding the |
| 49 | provisions of subparagraph 3. |
| 50 | 7. Effective July 1, 2005, salary supplements made to |
| 51 | firefighters, paramedics, or emergency medical technicians for |
| 52 | the successful completion of employer-approved educational |
| 53 | training or for additional job-related duties and |
| 54 | responsibilities, notwithstanding the provisions of subparagraph |
| 55 | 3. For all periods prior to July 1, 2005, employer-reported |
| 56 | retirement contributions on these supplemental payments shall be |
| 57 | compensation. |
| 58 | Section 2. The Legislature finds that a proper and |
| 59 | legitimate state purpose is served when employees and retirees |
| 60 | of the state and of its political subdivisions, and the |
| 61 | dependents, survivors, and beneficiaries of such employees and |
| 62 | retirees, are extended the basic protections afforded by |
| 63 | governmental retirement systems that provide fair and adequate |
| 64 | benefits that are managed, administered, and funded in an |
| 65 | actuarially sound manner, as required by s. 14, Art. X of the |
| 66 | State Constitution and part VII of chapter 112, Florida |
| 67 | Statutes. Therefore, the Legislature determines and declares |
| 68 | that this act fulfills an important state interest. |
| 69 | Section 3. This act shall take effect July 1, 2005. |