HB 1035

1
A bill to be entitled
2An act relating to the Special Risk Class of the Florida
3Retirement System; amending s. 121.021, F.S.; redefining
4the term "average final compensation" with respect to
5members of the Special Risk Class; adjusting contribution
6rates to fund the modification in average final
7compensation; providing a statement of important state
8interest; providing an effective date.
9
10Be It Enacted by the Legislature of the State of Florida:
11
12     Section 1.  Subsection (24) of section 121.021, Florida
13Statutes, is amended to read:
14     121.021  Definitions.--The following words and phrases as
15used in this chapter have the respective meanings set forth
16unless a different meaning is plainly required by the context:
17     (24)  "Average final compensation" means the average of the
185 highest fiscal years of compensation for creditable service
19prior to retirement, termination, or death; however, "average
20final compensation" applicable to a member of the Special Risk
21Class means the average of the 3 highest fiscal years of
22compensation for creditable service prior to retirement,
23termination, or death. For in-line-of-duty disability benefits,
24if less than the number of years of creditable service specified
25for calculating average final compensation has 5 years of
26creditable service have been completed, the term "average final
27compensation" means the average annual compensation of the total
28number of years of creditable service. Each year used in the
29calculation of average final compensation shall commence on July
301.
31     (a)  The average final compensation shall include:
32     1.  Accumulated annual leave payments, not to exceed 500
33hours; and
34     2.  All payments defined as compensation in subsection
35(22).
36     (b)  The average final compensation shall not include:
37     1.  Compensation paid to professional persons for special
38or particular services;
39     2.  Payments for accumulated sick leave made due to
40retirement or termination;
41     3.  Payments for accumulated annual leave in excess of 500
42hours;
43     4.  Bonuses as defined in subsection (47);
44     5.  Third party payments made on and after July 1, 1990; or
45     6.  Fringe benefits (for example, automobile allowances or
46housing allowances).
47     Section 2.  Effective July 1, 2006, for the purpose of
48funding the 3-year average final compensation benefit change
49made by this act:
50     (1)  The contribution rate that applies to the Special Risk
51Class of the Florida Retirement System shall be increased by
522.36 percentage points.
53     (2)  The contribution rate that applies to the Special Risk
54Administrative Support Class of the Florida Retirement System
55shall be increased by 2.54 percentage points.
56     (3)  The contribution rate that applies to the legislative-
57attorney-Cabinet subclass of the Elected Officers' Class of the
58Florida Retirement System shall be increased by 0.01 percentage
59points.
60     (4)  The contribution rate that applies to the Senior
61Management Service Class of the Florida Retirement System shall
62be increased by 0.01 percentage points.
63
64These increases shall be in addition to all other changes to
65contribution rates which may be enacted into law to take effect
66on that date. The Division of Statutory Revision is directed to
67adjust the contribution rates set forth in s. 121.71(3), Florida
68Statutes.
69     Section 3.  The Legislature finds that a proper and
70legitimate state purpose is served when employees and retirees
71of the state and of its political subdivisions, and the
72dependents, survivors, and beneficiaries of such employees and
73retirees, are extended the basic protections afforded by
74governmental retirement systems that provide fair and adequate
75benefits and that are managed, administered, and funded in an
76actuarially sound manner as required by s. 14, Art. X of the
77State Constitution and part VII of chapter 112, Florida
78Statutes. Therefore, the Legislature determines and declares
79that this act fulfills an important state interest.
80     Section 4.  This act shall take effect July 1, 2006.


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