1 | The Fiscal Council recommends the following: |
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3 | Council/Committee Substitute |
4 | Remove the entire bill and insert: |
5 | A bill to be entitled |
6 | An act relating to the Florida Retirement System; amending |
7 | s. 121.0515, F.S.; authorizing certain members to purchase |
8 | additional retirement credit to upgrade prior service to |
9 | Special Risk Class service; providing for the calculation |
10 | of contributions for such service upgrade; authorizing the |
11 | employer to purchase such additional credit for the |
12 | member; increasing a contribution rate for certain benefit |
13 | change funding purposes; directing the Division of |
14 | Statutory Revision to adjust contribution rates set forth |
15 | in s. 121.71, F.S.; providing an appropriation; providing |
16 | a declaration of important state interest; providing |
17 | effective dates. |
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19 | Be It Enacted by the Legislature of the State of Florida: |
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21 | Section 1. Paragraph (c) is added to subsection (9) of |
22 | section 121.0515, Florida Statutes, to read: |
23 | 121.0515 Special risk membership.-- |
24 | (9) CREDIT FOR UPGRADED SERVICE.-- |
25 | (c) Any member of the Special Risk Class who has earned |
26 | creditable service in another membership class of the Florida |
27 | Retirement System as a medical examiner or as an employee of a |
28 | law enforcement agency in a forensic discipline as described in |
29 | paragraph (2)(h), which service is within the purview of the |
30 | Special Risk Class, may purchase additional retirement credit to |
31 | upgrade such service to Special Risk Class service, to the |
32 | extent of the percentages of the member's average final |
33 | compensation provided in s. 121.091(1)(a)2. Contributions for |
34 | upgrading such service to Special Risk Class credit under this |
35 | subsection shall be equal to the difference in the contributions |
36 | paid and the Special Risk Class contribution rate as a |
37 | percentage of gross salary in effect for the period being |
38 | claimed, plus interest thereon at the rate of 6.5 percent a |
39 | year, compounded annually until the date of payment. This |
40 | service credit may be purchased by the employer on behalf of the |
41 | member. |
42 | Section 2. Effective July 1, 2006, in order to fund the |
43 | benefits provided under section 1 of this act, the contribution |
44 | rate that applies to the Special Risk Class of the Florida |
45 | Retirement System shall be increased by 0.01 percentage points. |
46 | This increase shall be in addition to all other changes to such |
47 | contribution rates that may be enacted into law to take effect |
48 | on that date. The Division of Statutory Revision is directed to |
49 | adjust accordingly the contribution rates set forth in s. |
50 | 121.71, Florida Statutes. |
51 | Section 3. Effective July 1, 2006, there is appropriated |
52 | $100,000 from the General Revenue Fund on a recurring basis to |
53 | Administered Funds to fund the state costs associated with the |
54 | retirement benefits granted by this act. |
55 | Section 4. The Legislature finds that a proper and |
56 | legitimate state purpose is served when employees and retirees |
57 | of the state and its political subdivisions, and the dependents, |
58 | survivors, and beneficiaries of such employees and retirees, are |
59 | extended additional protections afforded by governmental |
60 | retirement systems. These persons must be provided benefits that |
61 | are fair and adequate and that are managed, administered, and |
62 | funded in a sound actuarial manner, as required by Section 14, |
63 | Article X of the State Constitution and part VII of chapter 112, |
64 | Florida Statutes. Therefore, the Legislature hereby determines |
65 | and declares that this act fulfills an important state interest. |
66 | Section 5. Except as otherwise expressly provided in this |
67 | act, this act shall take effect upon becoming a law. |