Florida Senate - 2005                      COMMITTEE AMENDMENT
    Bill No. SB 688
                        Barcode 045734
                            CHAMBER ACTION
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11  The Committee on Education (Lynn) recommended the following
12  amendment:
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14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Paragraph (b) of subsection (1) of section
19  121.055, Florida Statutes, is amended to read:
20         121.055  Senior Management Service Class.--There is
21  hereby established a separate class of membership within the
22  Florida Retirement System to be known as the "Senior
23  Management Service Class," which shall become effective
24  February 1, 1987.
25         (1)
26         (b)1.  Except as provided in subparagraph 2., effective
27  January 1, 1990, participation in the Senior Management
28  Service Class shall be compulsory for the president of each
29  community college, the manager of each participating city or
30  county, and all appointed district school superintendents.
31  Effective January 1, 1994, additional positions may be
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Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 688 Barcode 045734 1 designated for inclusion in the Senior Management Service 2 Class of the Florida Retirement System, provided that: 3 a. Positions to be included in the class shall be 4 designated by the local agency employer. Notice of intent to 5 designate positions for inclusion in the class shall be 6 published once a week for 2 consecutive weeks in a newspaper 7 of general circulation published in the county or counties 8 affected, as provided in chapter 50. 9 b. Up to 10 nonelective full-time positions may be 10 designated for each local agency employer reporting to the 11 Department of Management Services; for local agencies with 100 12 or more regularly established positions, additional 13 nonelective full-time positions may be designated, not to 14 exceed 1 percent of the regularly established positions within 15 the agency. 16 c. Each position added to the class must be a 17 managerial or policymaking position filled by an employee who 18 is not subject to continuing contract and serves at the 19 pleasure of the local agency employer without civil service 20 protection, and who: 21 (I) Heads an organizational unit; or 22 (II) Has responsibility to effect or recommend 23 personnel, budget, expenditure, or policy decisions in his or 24 her areas of responsibility. 25 2. In lieu of participation in the Senior Management 26 Service Class, members of the Senior Management Service Class 27 pursuant to the provisions of subparagraph 1. may withdraw 28 from the Florida Retirement System altogether. The decision to 29 withdraw from the Florida Retirement System shall be 30 irrevocable for as long as the employee holds such a position. 31 Any service creditable under the Senior Management Service 2 3:54 PM 02/17/05 s0688d-ed07-c9i
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 688 Barcode 045734 1 Class shall be retained after the member withdraws from the 2 Florida Retirement System; however, additional service credit 3 in the Senior Management Service Class shall not be earned 4 after such withdrawal. Such members shall not be eligible to 5 participate in the Senior Management Service Optional Annuity 6 Program. 7 3. Effective January 1, 2006, through June 30, 2006, 8 an employee who has withdrawn from the Florida Retirement 9 System under subparagraph 2. has one opportunity to elect to 10 participate in either the defined benefit program or the 11 Public Employee Optional Retirement Program of the Florida 12 Retirement System. 13 a. If the employee elects to participate in the Public 14 Employee Optional Retirement Program, membership shall be 15 prospective, and the applicable provisions of s. 121.4501(4) 16 shall govern the election. 17 b. If the employee elects to participate in the 18 defined benefit program of the Florida Retirement System, the 19 employee shall, upon payment to the system trust fund of the 20 amount calculated under sub-sub-subparagraph (I), receive 21 service credit for prior service based upon the time during 22 which the employee had withdrawn from the system. 23 (I) The cost for such credit shall be an amount 24 representing the present value of that employee's accumulated 25 benefit obligation for the affected period of service. The 26 cost shall be calculated as if the benefit commences on the 27 first date the employee would become eligible for unreduced 28 benefits, using the discount rate and other relevant actuarial 29 assumptions that were used to value the Florida Retirement 30 System defined benefit plan liabilities in the most recent 31 actuarial valuation. The calculation shall include any service 3 3:54 PM 02/17/05 s0688d-ed07-c9i
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 688 Barcode 045734 1 already maintained under the defined benefit plan in addition 2 to the period of withdrawal. The present value of any service 3 already maintained under the defined benefit plan shall be 4 applied as a credit to the total cost resulting from the 5 calculation. The division shall ensure that the transfer sum 6 is prepared using a formula and methodology certified by an 7 enrolled actuary. 8 (II) The employee must transfer a sum representing the 9 present value of that employee's accumulated benefit 10 obligation immediately following the time of such movement, 11 determined assuming that attained service equals the sum of 12 service in the defined benefit program and the period of 13 withdrawal. 14 Section 2. This act shall take effect July 1, 2005. 15 16 17 ================ T I T L E A M E N D M E N T =============== 18 And the title is amended as follows: 19 Delete everything before the enacting clause 20 21 and insert: 22 A bill to be entitled 23 An act relating to the Florida Retirement 24 System; amending s. 121.055, F.S.; during a 25 specified period of time, permitting community 26 college employees who are members of the Senior 27 Management Service Class and certain other 28 members of the class, who have withdrawn from 29 the Florida Retirement System, to elect 30 membership in the defined benefit plan or the 31 optional retirement program of the system; 4 3:54 PM 02/17/05 s0688d-ed07-c9i
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 688 Barcode 045734 1 prescribing requirements in making such 2 election; providing for payment of the costs of 3 such membership; providing an effective date. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5 3:54 PM 02/17/05 s0688d-ed07-c9i