Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 688
Barcode 045734
CHAMBER ACTION
Senate House
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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
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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
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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
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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.
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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
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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;
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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.
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