Senate Bill sb2302

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    Florida Senate - 2006                                  SB 2302

    By Senator Baker





    20-1407-06

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.091, F.S.; revising the

  4         retirement credit rate for members of the

  5         Regular Class of the system; providing

  6         legislative findings; providing an effective

  7         date.

  8  

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

10  

11         Section 1.  Subsection (1) of section 121.091, Florida

12  Statutes, is amended to read:

13         121.091  Benefits payable under the system.--Benefits

14  may not be paid under this section unless the member has

15  terminated employment as provided in s. 121.021(39)(a) or

16  begun participation in the Deferred Retirement Option Program

17  as provided in subsection (13), and a proper application has

18  been filed in the manner prescribed by the department. The

19  department may cancel an application for retirement benefits

20  when the member or beneficiary fails to timely provide the

21  information and documents required by this chapter and the

22  department's rules. The department shall adopt rules

23  establishing procedures for application for retirement

24  benefits and for the cancellation of such application when the

25  required information or documents are not received.

26         (1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or

27  her normal retirement date, the member, upon application to

28  the administrator, shall receive a monthly benefit which shall

29  begin to accrue on the first day of the month of retirement

30  and be payable on the last day of that month and each month

31  thereafter during his or her lifetime. The normal retirement

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    Florida Senate - 2006                                  SB 2302
    20-1407-06




 1  benefit, including any past or additional retirement credit,

 2  may not exceed 100 percent of the average final compensation.

 3  The amount of monthly benefit shall be calculated as the

 4  product of A and B, subject to the adjustment of C, if

 5  applicable, as set forth below:

 6         (a)1.  For creditable years of Regular Class service, A

 7  is 1.60 percent of the member's average final compensation, up

 8  to the member's normal retirement date. Upon reaching the

 9  member's normal retirement date, A is 1.67 percent of the

10  member's average final compensation. Upon completion of the

11  first year after the normal retirement date, A is 1.70 1.63

12  percent of the member's average final compensation.  Following

13  the second year after the normal retirement date, A is 1.73

14  1.65 percent of the member's average final compensation.

15  Following the third year after the normal retirement date, and

16  for subsequent years, A is 1.76 1.68 percent of the member's

17  average final compensation.

18         2.  For creditable years of special risk service, A is:

19         a.  Two percent of the member's average final

20  compensation for all creditable years prior to October 1,

21  1974;

22         b.  Three percent of the member's average final

23  compensation for all creditable years after September 30,

24  1974, and before October 1, 1978;

25         c.  Two percent of the member's average final

26  compensation for all creditable years after September 30,

27  1978, and before January 1, 1989;

28         d.  Two and two-tenths percent of the member's final

29  monthly compensation for all creditable years after December

30  31, 1988, and before January 1, 1990;

31  

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    Florida Senate - 2006                                  SB 2302
    20-1407-06




 1         e.  Two and four-tenths percent of the member's average

 2  final compensation for all creditable years after December 31,

 3  1989, and before January 1, 1991;

 4         f.  Two and six-tenths percent of the member's average

 5  final compensation for all creditable years after December 31,

 6  1990, and before January 1, 1992;

 7         g.  Two and eight-tenths percent of the member's

 8  average final compensation for all creditable years after

 9  December 31, 1991, and before January 1, 1993;

10         h.  Three percent of the member's average final

11  compensation for all creditable years after December 31, 1992;

12  and

13         i.  Three percent of the member's average final

14  compensation for all creditable years of service after

15  September 30, 1978, and before January 1, 1993, for any

16  special risk member who retires after July 1, 2000, or any

17  member of the Special Risk Administrative Support Class

18  entitled to retain the special risk normal retirement date who

19  was a member of the Special Risk Class during the time period

20  and who retires after July 1, 2000.

21         3.  For creditable years of Senior Management Service

22  Class service after January 31, 1987, A is 2 percent;

23         4.  For creditable years of Elected Officers' Class

24  service as a Supreme Court Justice, district court of appeal

25  judge, circuit judge, or county court judge, A is 3 1/3

26  percent of the member's average final compensation, and for

27  all other creditable service in such class, A is 3 percent of

28  average final compensation;

29         (b)  B is the number of the member's years and any

30  fractional part of a year of creditable service earned

31  subsequent to November 30, 1970; and

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    Florida Senate - 2006                                  SB 2302
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 1         (c)  C is the normal retirement benefit credit brought

 2  forward as of November 30, 1970, by a former member of an

 3  existing system.  Such normal retirement benefit credit shall

 4  be determined as the product of X and Y when X is the

 5  percentage of average final compensation which the member

 6  would have been eligible to receive if the member had attained

 7  his or her normal retirement date as of November 30, 1970, all

 8  in accordance with the existing system under which the member

 9  is covered on November 30, 1970, and Y is average final

10  compensation as defined in s. 121.021(25).  However, any

11  member of an existing retirement system who is eligible to

12  retire and who does retire, become disabled, or die prior to

13  April 15, 1971, may have his or her retirement benefits

14  calculated on the basis of the best 5 of the last 10 years of

15  service.

16         (d)  A member's average final compensation shall be

17  determined by formula to obtain the coverage for the 5 highest

18  fiscal years' salaries, calculated as provided by rule.

19         Section 2.  The Legislature finds that a proper and

20  legitimate state purpose is served when employees and retirees

21  of the state and of its political subdivisions, and the

22  dependents, survivors, and beneficiaries of such employees and

23  retirees, are extended the basic protections afforded by

24  governmental retirement systems that provide fair and adequate

25  benefits and that are managed, administered, and funded in an

26  actuarially sound manner as required by s. 14, Art. X of the

27  State Constitution and part VII of chapter 112, Florida

28  Statutes. Therefore, the Legislature determines and declares

29  that this act fulfills an important state interest.

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

31  

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    Florida Senate - 2006                                  SB 2302
    20-1407-06




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 2                          SENATE SUMMARY

 3    Increases the retirement credit rate applicable to
      members of the Regular Class of the Florida Retirement
 4    System.

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