HB 1011

1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.055, F.S.; revising the retirement credit rate for
4	members of the Senior Management Service Class; amending
5	s. 121.091, F.S., to conform; providing a finding of
6	important state interest; providing an effective date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1.  Paragraph (j) of subsection (1) and subsection
11	(4) of section 121.055, Florida Statutes, are amended to read:
12	121.055  Senior Management Service Class.--There is hereby
13	established a separate class of membership within the Florida
14	Retirement System to be known as the "Senior Management Service
15	Class," which shall become effective February 1, 1987.
16	(1)
17	(j)  Except as may otherwise be provided, any member of the
18	Senior Management Service Class may purchase additional
19	retirement credit in such class for creditable service within
20	the purview of the Senior Management Service Class retroactive
21	to February 1, 1987, and may upgrade retirement credit for such
22	service, to the extent of 2.5 2 percent of the member's average
23	monthly compensation as specified in paragraph (4)(d) for such
24	service. Contributions for upgrading the additional Senior
25	Management Service credit pursuant to this paragraph shall be
26	equal to the difference in the contributions paid and the Senior
27	Management Service Class contribution rate as a percentage of
28	gross salary in effect for the period being claimed, plus
29	interest thereon at the rate of 6.5 percent a year, compounded
30	annually until the date of payment. This service credit may be
31	purchased by the employer on behalf of the member.
32	(4)(a)  The definitions set forth in s. 121.021 and all
33	other provisions of this chapter shall apply to the Senior
34	Management Service Class, except the definitions and provisions
35	in conflict with, or superseded or modified by, the provisions
36	of this section.
37	(b)  Service in an eligible position prior to February 1,
38	1987, or after January 31, 1987, shall satisfy the requirement
39	of attaining the normal retirement date as defined in s.
40	121.021(29) for a Senior Management Service Class member,
41	provided the employee is a member of the Senior Management
42	Service Class after January 31, 1987. A member of this class who
43	fails to complete 6 years of creditable service in an eligible
44	position shall be required to satisfy the requirements for the
45	normal retirement date for a regular member as provided in s.
46	121.021(29).
47	(c)  The average final compensation of a member of this
48	class shall be as defined in s. 121.021(24).
49	(d)  A member of the Senior Management Service Class shall
50	receive retirement credit at the rate of 2 percent of average
51	final compensation for each year of service in such class after
52	January 31, 1987, and before July 1, 2007, and at the rate of
53	2.5 percent of average final compensation for each year of
54	service in such class after June 30, 2007.
55	Section 2.  Paragraph (a) of subsection (1) of section
56	121.091, Florida Statutes, is amended to read:
57	121.091  Benefits payable under the system.--Benefits may
58	not be paid under this section unless the member has terminated
59	employment as provided in s. 121.021(39)(a) or begun
60	participation in the Deferred Retirement Option Program as
61	provided in subsection (13), and a proper application has been
62	filed in the manner prescribed by the department. The department
63	may cancel an application for retirement benefits when the
64	member or beneficiary fails to timely provide the information
65	and documents required by this chapter and the department's
66	rules. The department shall adopt rules establishing procedures
67	for application for retirement benefits and for the cancellation
68	of such application when the required information or documents
69	are not received.
70	(1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
71	normal retirement date, the member, upon application to the
72	administrator, shall receive a monthly benefit which shall begin
73	to accrue on the first day of the month of retirement and be
74	payable on the last day of that month and each month thereafter
75	during his or her lifetime. The normal retirement benefit,
76	including any past or additional retirement credit, may not
77	exceed 100 percent of the average final compensation. The amount
78	of monthly benefit shall be calculated as the product of A and
79	B, subject to the adjustment of C, if applicable, as set forth
80	below:
81	(a)1.  For creditable years of Regular Class service, A is
82	1.60 percent of the member's average final compensation, up to
83	the member's normal retirement date. Upon completion of the
84	first year after the normal retirement date, A is 1.63 percent
85	of the member's average final compensation. Following the second
86	year after the normal retirement date, A is 1.65 percent of the
87	member's average final compensation. Following the third year
88	after the normal retirement date, and for subsequent years, A is
89	1.68 percent of the member's average final compensation.
90	2.  For creditable years of special risk service, A is:
91	a.  Two percent of the member's average final compensation
92	for all creditable years prior to October 1, 1974;
93	b.  Three percent of the member's average final
94	compensation for all creditable years after September 30, 1974,
95	and before October 1, 1978;
96	c.  Two percent of the member's average final compensation
97	for all creditable years after September 30, 1978, and before
98	January 1, 1989;
99	d.  Two and two-tenths percent of the member's final
100	monthly compensation for all creditable years after December 31,
101	1988, and before January 1, 1990;
102	e.  Two and four-tenths percent of the member's average
103	final compensation for all creditable years after December 31,
104	1989, and before January 1, 1991;
105	f.  Two and six-tenths percent of the member's average
106	final compensation for all creditable years after December 31,
107	1990, and before January 1, 1992;
108	g.  Two and eight-tenths percent of the member's average
109	final compensation for all creditable years after December 31,
110	1991, and before January 1, 1993;
111	h.  Three percent of the member's average final
112	compensation for all creditable years after December 31, 1992;
113	and
114	i.  Three percent of the member's average final
115	compensation for all creditable years of service after September
116	30, 1978, and before January 1, 1993, for any special risk
117	member who retires after July 1, 2000, or any member of the
118	Special Risk Administrative Support Class entitled to retain the
119	special risk normal retirement date who was a member of the
120	Special Risk Class during the time period and who retires after
121	July 1, 2000.
122	3.  For creditable years of Senior Management Service Class
123	service after January 31, 1987, and before July 1, 2007, A is 2
124	percent, and for creditable years of Senior Management Service
125	Class service after June 30, 2007, A is 2.5 percent;
126	4.  For creditable years of Elected Officers' Class service
127	as a Supreme Court Justice, district court of appeal judge,
128	circuit judge, or county court judge, A is 31/3 percent of the
129	member's average final compensation, and for all other
130	creditable service in such class, A is 3 percent of average
131	final compensation;
132	Section 3.  The Legislature finds that a proper and
133	legitimate state purpose is served when employees and retirees
134	of the state and its political subdivisions, and the dependents,
135	survivors, and beneficiaries of such employees and retirees, are
136	extended the basic protections afforded by governmental
137	retirement systems. These persons must be provided benefits that
138	are fair and adequate and that are managed, administered, and
139	funded in an actuarially sound manner, as required by s. 14,
140	Art. X of the State Constitution and part VII of chapter 112,
141	Florida Statutes. Therefore, the Legislature determines and
142	declares that this act fulfills an important state interest.
143	Section 4.  This act shall take effect July 1, 2007.

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