HB 983

1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.091, F.S.; revising the retirement credit rate for
4	members of the Regular Class; providing a finding of
5	important state interest; providing an effective date.
6
7	Be It Enacted by the Legislature of the State of Florida:
8
9	Section 1.  Subsection (1) of section 121.091, Florida
10	Statutes, is amended to read:
11	121.091  Benefits payable under the system.--Benefits may
12	not be paid under this section unless the member has terminated
13	employment as provided in s. 121.021(39)(a) or begun
14	participation in the Deferred Retirement Option Program as
15	provided in subsection (13), and a proper application has been
16	filed in the manner prescribed by the department. The department
17	may cancel an application for retirement benefits when the
18	member or beneficiary fails to timely provide the information
19	and documents required by this chapter and the department's
20	rules. The department shall adopt rules establishing procedures
21	for application for retirement benefits and for the cancellation
22	of such application when the required information or documents
23	are not received.
24	(1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
25	normal retirement date, the member, upon application to the
26	administrator, shall receive a monthly benefit which shall begin
27	to accrue on the first day of the month of retirement and be
28	payable on the last day of that month and each month thereafter
29	during his or her lifetime. The normal retirement benefit,
30	including any past or additional retirement credit, may not
31	exceed 100 percent of the average final compensation. The amount
32	of monthly benefit shall be calculated as the product of A and
33	B, subject to the adjustment of C, if applicable, as set forth
34	below:
35	(a)1.  For creditable years of Regular Class service, A is
36	1.60 percent of the member's average final compensation, up to
37	the member's normal retirement date. Upon reaching the normal
38	retirement date, A is 1.67 percent of the member's average final
39	compensation. Upon completion of the first year after the normal
40	retirement date, A is 1.70 1.63 percent of the member's average
41	final compensation. Following the second year after the normal
42	retirement date, A is 1.73 1.65 percent of the member's average
43	final compensation. Following the third year after the normal
44	retirement date, and for subsequent years, A is 1.76 1.68
45	percent of the member's average final compensation.
46	2.  For creditable years of special risk service, A is:
47	a.  Two percent of the member's average final compensation
48	for all creditable years prior to October 1, 1974;
49	b.  Three percent of the member's average final
50	compensation for all creditable years after September 30, 1974,
51	and before October 1, 1978;
52	c.  Two percent of the member's average final compensation
53	for all creditable years after September 30, 1978, and before
54	January 1, 1989;
55	d.  Two and two-tenths percent of the member's final
56	monthly compensation for all creditable years after December 31,
57	1988, and before January 1, 1990;
58	e.  Two and four-tenths percent of the member's average
59	final compensation for all creditable years after December 31,
60	1989, and before January 1, 1991;
61	f.  Two and six-tenths percent of the member's average
62	final compensation for all creditable years after December 31,
63	1990, and before January 1, 1992;
64	g.  Two and eight-tenths percent of the member's average
65	final compensation for all creditable years after December 31,
66	1991, and before January 1, 1993;
67	h.  Three percent of the member's average final
68	compensation for all creditable years after December 31, 1992;
69	and
70	i.  Three percent of the member's average final
71	compensation for all creditable years of service after September
72	30, 1978, and before January 1, 1993, for any special risk
73	member who retires after July 1, 2000, or any member of the
74	Special Risk Administrative Support Class entitled to retain the
75	special risk normal retirement date who was a member of the
76	Special Risk Class during the time period and who retires after
77	July 1, 2000.
78	3.  For creditable years of Senior Management Service Class
79	service after January 31, 1987, A is 2 percent.;
80	4.  For creditable years of Elected Officers' Class service
81	as a Supreme Court Justice, district court of appeal judge,
82	circuit judge, or county court judge, A is 3 1/3 percent of the
83	member's average final compensation, and for all other
84	creditable service in such class, A is 3 percent of average
85	final compensation.;
86	(b)  B is the number of the member's years and any
87	fractional part of a year of creditable service earned
88	subsequent to November 30, 1970.; and
89	(c)  C is the normal retirement benefit credit brought
90	forward as of November 30, 1970, by a former member of an
91	existing system. Such normal retirement benefit credit shall be
92	determined as the product of X and Y when X is the percentage of
93	average final compensation which the member would have been
94	eligible to receive if the member had attained his or her normal
95	retirement date as of November 30, 1970, all in accordance with
96	the existing system under which the member is covered on
97	November 30, 1970, and Y is average final compensation as
98	defined in s. 121.021(25). However, any member of an existing
99	retirement system who is eligible to retire and who does retire,
100	become disabled, or die prior to April 15, 1971, may have his or
101	her retirement benefits calculated on the basis of the best 5 of
102	the last 10 years of service.
103	(d)  A member's average final compensation shall be
104	determined by formula to obtain the coverage for the 5 highest
105	fiscal years' salaries, calculated as provided by rule.
106	Section 2.  The Legislature finds that a proper and
107	legitimate state purpose is served when employees and retirees
108	of the state and of its political subdivisions, and the
109	dependents, survivors, and beneficiaries of such employees and
110	retirees, are extended the basic protections afforded by
111	governmental retirement systems that provide fair and adequate
112	benefits that are managed, administered, and funded in an
113	actuarially sound manner, as required by s. 14, Art. X of the
114	State Constitution and part VII of chapter 112, Florida
115	Statutes. Therefore, the Legislature determines and declares
116	that this act fulfills an important state interest.
117	Section 3.  This act shall take effect July 1, 2006.

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