Senate Bill sb0688c1

    Florida Senate - 2005                            CS for SB 688

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




    585-1711-05

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.055, F.S.; during a

  4         specified period of time, permitting local

  5         government employees who are members of the

  6         Senior Management Service Class, who have

  7         withdrawn from the Florida Retirement System,

  8         to elect membership in the defined benefit

  9         program or the public employee optional

10         retirement program of the system; prescribing

11         requirements in making such election; providing

12         for payment of the costs of such membership;

13         providing an effective date.

14  

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

16  

17         Section 1.  Paragraph (b) of subsection (1) of section

18  121.055, Florida Statutes, is amended to read:

19         121.055  Senior Management Service Class.--There is

20  hereby established a separate class of membership within the

21  Florida Retirement System to be known as the "Senior

22  Management Service Class," which shall become effective

23  February 1, 1987.

24         (1)

25         (b)1.  Except as provided in subparagraph 2., effective

26  January 1, 1990, participation in the Senior Management

27  Service Class shall be compulsory for the president of each

28  community college, the manager of each participating city or

29  county, and all appointed district school superintendents.

30  Effective January 1, 1994, additional positions may be

31  

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    Florida Senate - 2005                            CS for SB 688
    585-1711-05




 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                            CS for SB 688
    585-1711-05




 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 actuarial accrued liability for the affected

25  period of service. The cost shall be calculated, using the

26  discount rate and other relevant actuarial assumptions that

27  were used to value the Florida Retirement System defined

28  benefit plan liabilities in the most recent actuarial

29  valuation. The calculation shall include any service already

30  maintained under the defined benefit plan in addition to the

31  period of withdrawal. The actuarial accrued liability

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    Florida Senate - 2005                            CS for SB 688
    585-1711-05




 1  attributable to any service already maintained under the

 2  defined benefit plan shall be applied as a credit to the total

 3  cost resulting from the calculation. The division shall ensure

 4  that the transfer sum is prepared using a formula and

 5  methodology certified by an actuary.

 6         (II)  The employee must transfer a sum representing the

 7  net cost owed for the actuarial accrued liability in

 8  sub-sub-subparagraph (I) immediately following the time of

 9  such movement, determined assuming that attained service

10  equals the sum of service in the defined benefit program and

11  the period of withdrawal.

12         Section 2.  This act shall take effect July 1, 2005.

13  

14          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
15                         Senate Bill 688

16                                 

17  Expands bill to include any member of the Senior Management
    Service Class.
18  
    Permits such employee who has withdrawn from the Florida
19  Retirement System one opportunity to elect to participate in
    either the defined benefit program or the Public Employee
20  Optional Retirement Program from January 1, 2006 to June 30,
    2006.
21  
    Requires payment by the electing employee of an amount
22  representing the actuarial accrued liability for the affected
    period of service.
23  
    Establishes method of calculation.
24  
    Requires transfer sum paid by employee to be prepared using a
25  formula and methodology certified by an actuary.

26  

27  

28  

29  

30  

31  

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