Senate Bill sb1426
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1426
By Senator Carlton
23-824-07
1 A bill to be entitled
2 An act relating to retirement contribution
3 rates; amending s. 121.71, F.S.; revising the
4 payroll contribution rates for the membership
5 classes of the Florida Retirement System for
6 the state fiscal years effective July 1, 2007,
7 and July 1, 2008; providing a declaration of
8 important state interest; providing an
9 effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Section 121.71, Florida Statutes, is
14 amended to read:
15 121.71 Uniform rates; process; calculations; levy.--
16 (1) In conducting the system actuarial study required
17 under s. 121.031, the actuary shall follow all requirements
18 specified thereunder to determine, by Florida Retirement
19 System employee membership class, the dollar contribution
20 amounts necessary for the forthcoming fiscal year for the
21 defined benefit program. In addition, the actuary shall
22 determine, by Florida Retirement System membership class,
23 based on an estimate for the forthcoming fiscal year of the
24 gross compensation of employees participating in the optional
25 retirement program, the dollar contribution amounts necessary
26 to make the allocations required under ss. 121.72 and 121.73.
27 For each employee membership class and subclass, the actuarial
28 study shall establish a uniform rate necessary to fund the
29 benefit obligations under both Florida Retirement System
30 retirement plans, by dividing the sum of total dollars
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1426
23-824-07
1 required by the estimated gross compensation of members in
2 both plans.
3 (2) Based on the uniform rates set forth in subsection
4 (3), employers shall make monthly contributions to the
5 Division of Retirement, which shall initially deposit the
6 funds into the Florida Retirement System Contributions
7 Clearing Trust Fund. A change in a contribution rate is
8 effective the first day of the month for which a full month's
9 employer contribution may be made on or after the beginning
10 date of the change.
11 (3) Required employer retirement contribution rates
12 for each membership class and subclass of the Florida
13 Retirement System for both retirement plans are as follows:
14
15 Percentage of Percentage of
16 Gross Gross
17 Compensation, Compensation,
18 Effective Effective
19 Membership Class July 1, 2007 2006 July 1, 2008 2007
20 Regular Class % 8.69% 9.59% 9.55%
21 Special Risk Class % 19.76% 22.01% 21.96%
22 Special Risk % 11.39% 11.90% 12.65%
23 Administrative
24 Support Class
25 Elected Officers' Class-- % 13.32% 14.99% 14.80%
26 Legislators, Governor,
27 Lt. Governor,
28 Cabinet Officers,
29 State Attorneys,
30 Public Defenders
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Florida Senate - 2007 SB 1426
23-824-07
1 Elected Officers' Class-- % 18.40% 20.46% 20.44%
2 Justices, Judges
3 Elected Officers' Class-- % 15.37% 17.15% 17.08%
4 County Elected Officers
5 Senior Management Class % 11.96% 13.35% 13.29%
6 DROP % 9.80% 11.40% 10.89%
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8 (4) The state actuary shall recognize and use an
9 appropriate level of available excess assets of the Florida
10 Retirement System Trust Fund to offset the difference between
11 the normal costs of the Florida Retirement System and the
12 statutorily prescribed contribution rates.
13 Section 2. The Legislature finds that a proper and
14 legitimate state purpose is served when employees and retirees
15 of the state and its political subdivisions, and the
16 dependents, survivors, and beneficiaries of such employees and
17 retirees, are extended the basic protections afforded by
18 governmental retirement systems. These persons must be
19 provided benefits that are fair and adequate and that are
20 managed, administered, and funded in an actuarially sound
21 manner, as required by Section 14, Article X of the State
22 Constitution, and part VII of chapter 112, Florida Statutes.
23 Therefore, the Legislature determines and declares that this
24 act fulfills an important state interest.
25 Section 3. This act shall take effect July 1, 2007.
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27 *****************************************
28 SENATE SUMMARY
29 Establishes the payroll contribution rates for the
Florida Retirement System for the 2007 and 2008 state
30 fiscal years.
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CODING: Words stricken are deletions; words underlined are additions.