| 1 | The State Administration Council recommends the following: |
| 2 |
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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 an |
| 17 | effective date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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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. In order to fund the benefits provided under |
| 43 | section 1 of this act, the contribution rate that applies to the |
| 44 | Special Risk Class of the Florida Retirement System shall be |
| 45 | increased by 0.01 percentage points. This increase shall be in |
| 46 | addition to all other changes to such contribution rates that |
| 47 | may be enacted into law to take effect on that date. The |
| 48 | Division of Statutory Revision is directed to adjust accordingly |
| 49 | the contribution rates set forth in s. 121.71, Florida Statutes. |
| 50 | Section 3. There is appropriated $100,000 from the General |
| 51 | Revenue Fund on a recurring basis to Administered Funds to fund |
| 52 | the state costs associated with the retirement benefits granted |
| 53 | by this act. |
| 54 | Section 4. The Legislature finds that a proper and |
| 55 | legitimate state purpose is served when employees and retirees |
| 56 | of the state and its political subdivisions, and the dependents, |
| 57 | survivors, and beneficiaries of such employees and retirees, are |
| 58 | extended additional protections afforded by governmental |
| 59 | retirement systems. These persons must be provided benefits that |
| 60 | are fair and adequate and that are managed, administered, and |
| 61 | funded in a sound actuarial manner, as required by Section 14, |
| 62 | Article X of the State Constitution and part VII of chapter 112, |
| 63 | Florida Statutes. Therefore, the Legislature hereby determines |
| 64 | and declares that this act fulfills an important state interest. |
| 65 | Section 5. This act shall take effect July 1, 2006. |