Senate Bill sb1040

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                                  SB 1040

    By the Committee on Governmental Oversight and Productivity





    585-641-06

  1                      A bill to be entitled

  2         An act relating to retirement; amending s.

  3         121.71, F.S.; revising the payroll contribution

  4         rates for the membership classes of the Florida

  5         Retirement System for the state fiscal years

  6         effective July 1, 2006, and July 1, 2007;

  7         providing a declaration of important state

  8         interest; providing an effective date.

  9  

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

11  

12         Section 1.  Section 121.71, Florida Statutes, is

13  amended to read:

14         121.71  Uniform rates; process; calculations; levy.--

15         (1)  In conducting the system actuarial study required

16  under s. 121.031, the actuary shall follow all requirements

17  specified thereunder to determine, by Florida Retirement

18  System employee membership class, the dollar contribution

19  amounts necessary for the forthcoming fiscal year for the

20  defined benefit program. In addition, the actuary shall

21  determine, by Florida Retirement System membership class,

22  based on an estimate for the forthcoming fiscal year of the

23  gross compensation of employees participating in the optional

24  retirement program, the dollar contribution amounts necessary

25  to make the allocations required under ss. 121.72 and 121.73.

26  For each employee membership class and subclass, the actuarial

27  study shall establish a uniform rate necessary to fund the

28  benefit obligations under both Florida Retirement System

29  retirement plans, by dividing the sum of total dollars

30  required by the estimated gross compensation of members in

31  both plans.

                                  1

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






    Florida Senate - 2006                                  SB 1040
    585-641-06




 1         (2)  Based on the uniform rates set forth in subsection

 2  (3), employers shall make monthly contributions to the

 3  Division of Retirement, which shall initially deposit the

 4  funds into the Florida Retirement System Contributions

 5  Clearing Trust Fund. A change in a contribution rate is

 6  effective the first day of the month for which a full month's

 7  employer contribution may be made on or after the beginning

 8  date of the change.

 9         (3)  Required employer retirement contribution rates

10  for each membership class and subclass of the Florida

11  Retirement System for both retirement plans are as follows:

12  

13                            Percentage of       Percentage of

14                                Gross               Gross

15                            Compensation,       Compensation,

16                              Effective           Effective

17  Membership Class        July 1, 2006 2005   July 1, 2007 2006

18  Regular Class                   %  6.67%       9.55%  9.53%

19  Special Risk Class              % 17.37%      21.96% 21.91%

20  Special Risk Administrative                         

21    Support Class                 %  8.76%      12.65% 12.39%

22  Elected Officers' Class -                           

23    Legislators, Governor,                            

24    Lt. Governor,                                     

25    Cabinet Officers,                                 

26    State Attorneys,                                  

27    Public Defenders              % 11.33%             14.86%

28  Elected Officers' Class -                           

29    Justices, Judges              % 17.49%      20.44% 20.43%

30  Elected Officers' Class -                           

31    County Elected Officers       % 14.07%      17.08% 17.00%

                                  2

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






    Florida Senate - 2006                                  SB 1040
    585-641-06




 1  Senior Management Class         %  9.29%      13.29% 13.27%

 2  DROP                            %  8.22%      11.20% 11.74%

 3  

 4         (4)  The state actuary shall recognize and use an

 5  appropriate level of available excess assets of the Florida

 6  Retirement System Trust Fund to offset the difference between

 7  the normal costs of the Florida Retirement System and the

 8  statutorily prescribed contribution rates.

 9         Section 2.  The Legislature finds that a proper and

10  legitimate state purpose is served when employees and retirees

11  of the state and its political subdivisions, and the

12  dependents, survivors, and beneficiaries of such employees and

13  retirees, are extended the basic protections afforded by

14  governmental retirement systems. These persons must be

15  provided benefits that are fair and adequate and that are

16  managed, administered, and funded in an actuarially sound

17  manner, as required by Section 14, Article X of the State

18  Constitution, and part VII of chapter 112, Florida Statutes.

19  Therefore, the Legislature determines and declares that this

20  act fulfills an important state interest.

21         Section 3.  This act shall take effect July 1, 2006.

22  

23            *****************************************

24                          SENATE SUMMARY

25    Establishes the payroll contribution rates for the
      Florida Retirement System for the 2006 and 2007 state
26    fiscal years.

27  

28  

29  

30  

31  

                                  3

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