HB 5025

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.71, F.S.;
3	revising the payroll contribution rates for the membership
4	classes of the Florida Retirement System for the state
5	fiscal years effective July 1, 2006, and July 1, 2007;
6	providing a declaration of important state interest;
7	providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Section 121.71, Florida Statutes, is amended to
12	read:
13	121.71  Uniform rates; process; calculations; levy.--
14	(1)  In conducting the system actuarial study required
15	under s. 121.031, the actuary shall follow all requirements
16	specified thereunder to determine, by Florida Retirement System
17	employee membership class, the dollar contribution amounts
18	necessary for the forthcoming fiscal year for the defined
19	benefit program. In addition, the actuary shall determine, by
20	Florida Retirement System membership class, based on an estimate
21	for the forthcoming fiscal year of the gross compensation of
22	employees participating in the optional retirement program, the
23	dollar contribution amounts necessary to make the allocations
24	required under ss. 121.72 and 121.73. For each employee
25	membership class and subclass, the actuarial study shall
26	establish a uniform rate necessary to fund the benefit
27	obligations under both Florida Retirement System retirement
28	plans, by dividing the sum of total dollars required by the
29	estimated gross compensation of members in both plans.
30	(2)  Based on the uniform rates set forth in subsection
31	(3), employers shall make monthly contributions to the Division
32	of Retirement, which shall initially deposit the funds into the
33	Florida Retirement System Contributions Clearing Trust Fund. A
34	change in a contribution rate is effective the first day of the
35	month for which a full month's employer contribution may be made
36	on or after the beginning date of the change.
37	(3)  Required employer retirement contribution rates for
38	each membership class and subclass of the Florida Retirement
39	System for both retirement plans are as follows:
40
	Membership Class Percentage of Gross Compensation,Effective July 1, 2006 2005 Percentage of Gross Compensation,Effective July 1, 2007 2006
41
	Regular Class 8.69% 6.67% 9.55% 9.53%
42
	Special Risk Class 19.76% 17.37% 21.96% 21.91%
43
	Special Risk Administrative   Support Class 11.39% 8.76% 12.65% 12.39%
44
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor,   Cabinet Officers,   State Attorneys,   Public Defenders 13.32% 11.33% 14.80% 14.86%
45
	Elected Officers' Class -  Justices, Judges 18.40% 17.49% 20.44% 20.43%
46
	Elected Officers' Class -  County Elected Officers 15.37% 14.07% 17.08% 17.00%
47
	Senior Management Class 11.96% 9.29% 13.29% 13.27%
48
	DROP 9.80% 8.22% 10.89% 11.74%
49
50	(4)  The state actuary shall recognize and use an
51	appropriate level of available excess assets of the Florida
52	Retirement System Trust Fund to offset the difference between
53	the normal costs of the Florida Retirement System and the
54	statutorily prescribed contribution rates.
55	Section 2.  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 the basic 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 an actuarially sound manner, as required by Section
63	14, Article X of the State Constitution, and part VII of chapter
64	112, Florida Statutes. Therefore, the Legislature determines and
65	declares that this act fulfills an important state interest.
66	Section 3.  This act shall take effect July 1, 2006.

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