Senate Bill sb2542

    Florida Senate - 2007                                  SB 2542

    By Senator Saunders





    37-793-07

  1                      A bill to be entitled

  2         An act relating to the Special Risk Class of

  3         the Florida Retirement System; amending s.

  4         121.021, F.S.; redefining the term "average

  5         final compensation" with respect to members of

  6         the Special Risk Class; adjusting contribution

  7         rates to fund the modification in average final

  8         compensation; providing legislative findings;

  9         providing an effective date.

10  

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

12  

13         Section 1.  Subsection (24) of section 121.021, Florida

14  Statutes, is amended to read:

15         121.021  Definitions.--The following words and phrases

16  as used in this chapter have the respective meanings set forth

17  unless a different meaning is plainly required by the context:

18         (24)  "Average final compensation" means the average of

19  the 5 highest fiscal years of compensation for creditable

20  service prior to retirement, termination, or death; however,

21  "average final compensation" applicable to a member of the

22  Special Risk Class means the average of the 3 highest fiscal

23  years of compensation for creditable service prior to

24  retirement, termination, or death. For in-line-of-duty

25  disability benefits, if less than the number of years of

26  creditable service specified for calculating average final

27  compensation has 5 years of creditable service have been

28  completed, the term "average final compensation" means the

29  average annual compensation of the total number of years of

30  creditable service.  Each year used in the calculation of

31  average final compensation shall commence on July 1.

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    Florida Senate - 2007                                  SB 2542
    37-793-07




 1         (a)  The average final compensation shall include:

 2         1.  Accumulated annual leave payments, not to exceed

 3  500 hours; and

 4         2.  All payments defined as compensation in subsection

 5  (22).

 6         (b)  The average final compensation shall not include:

 7         1.  Compensation paid to professional persons for

 8  special or particular services;

 9         2.  Payments for accumulated sick leave made due to

10  retirement or termination;

11         3.  Payments for accumulated annual leave in excess of

12  500 hours;

13         4.  Bonuses as defined in subsection (47);

14         5.  Third party payments made on and after July 1,

15  1990; or

16         6.  Fringe benefits (for example, automobile allowances

17  or housing allowances).

18         Section 2.  Effective July 1, 2007, for the purpose of

19  funding the 3-year average final compensation benefit change

20  made by this act:

21         (1)  The contribution rate that applies to the Special

22  Risk Class of the Florida Retirement System shall be increased

23  by 2.36 percentage points.

24         (2)  The contribution rate that applies to the Special

25  Risk Administrative Support Class of the Florida Retirement

26  System shall be increased by 2.54 percentage points.

27         (3)  The contribution rate that applies to the

28  legislative-attorney-Cabinet subclass of the Elected Officers'

29  Class of the Florida Retirement System shall be increased by

30  0.01 percentage points.

31  

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    Florida Senate - 2007                                  SB 2542
    37-793-07




 1         (4)  The contribution rate that applies to the Senior

 2  Management Service Class of the Florida Retirement System

 3  shall be increased by 0.01 percentage points.

 4  

 5  These increases shall be in addition to all other changes to

 6  contribution rates which may be enacted into law to take

 7  effect on that date. The Division of Statutory Revision is

 8  directed to adjust the contribution rates set forth in s.

 9  121.71(3), Florida Statutes.

10         Section 3.  The Legislature finds that a proper and

11  legitimate state purpose is served when employees and retirees

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

13  dependents, survivors, and beneficiaries of such employees and

14  retirees, are extended the basic protections afforded by

15  governmental retirement systems that provide fair and adequate

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

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

18  State Constitution and part VII of chapter 112, Florida

19  Statutes. Therefore, the Legislature determines and declares

20  that this act fulfills an important state interest.

21         Section 4.  This act shall take effect July 1, 2007.

22  

23            *****************************************

24                          SENATE SUMMARY

25    Redefines "average final compensation" for members of the
      Special Risk Class to be the average of the 3 highest,
26    instead of 5 highest, fiscal years of compensation.
      Adjusts compensation rates to fund such change. Provides
27    legislative findings with respect to government-employee
      retirement programs.
28  

29  

30  

31  

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