| 1 | A bill to be entitled |
| 2 | An act relating to the Special Risk Class of the Florida |
| 3 | Retirement System; amending s. 121.021, F.S.; redefining |
| 4 | the term "average final compensation" with respect to |
| 5 | members of the Special Risk Class; adjusting contribution |
| 6 | rates to fund the modification in average final |
| 7 | compensation; providing a statement of important state |
| 8 | interest; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Subsection (24) of section 121.021, Florida |
| 13 | Statutes, is amended to read: |
| 14 | 121.021 Definitions.--The following words and phrases as |
| 15 | used in this chapter have the respective meanings set forth |
| 16 | unless a different meaning is plainly required by the context: |
| 17 | (24) "Average final compensation" means the average of the |
| 18 | 5 highest fiscal years of compensation for creditable service |
| 19 | prior to retirement, termination, or death; however, "average |
| 20 | final compensation" applicable to a member of the Special Risk |
| 21 | Class means the average of the 3 highest fiscal years of |
| 22 | compensation for creditable service prior to retirement, |
| 23 | termination, or death. For in-line-of-duty disability benefits, |
| 24 | if less than the number of years of creditable service specified |
| 25 | for calculating average final compensation has 5 years of |
| 26 | creditable service have been completed, the term "average final |
| 27 | compensation" means the average annual compensation of the total |
| 28 | number of years of creditable service. Each year used in the |
| 29 | calculation of average final compensation shall commence on July |
| 30 | 1. |
| 31 | (a) The average final compensation shall include: |
| 32 | 1. Accumulated annual leave payments, not to exceed 500 |
| 33 | hours; and |
| 34 | 2. All payments defined as compensation in subsection |
| 35 | (22). |
| 36 | (b) The average final compensation shall not include: |
| 37 | 1. Compensation paid to professional persons for special |
| 38 | or particular services; |
| 39 | 2. Payments for accumulated sick leave made due to |
| 40 | retirement or termination; |
| 41 | 3. Payments for accumulated annual leave in excess of 500 |
| 42 | hours; |
| 43 | 4. Bonuses as defined in subsection (47); |
| 44 | 5. Third party payments made on and after July 1, 1990; or |
| 45 | 6. Fringe benefits (for example, automobile allowances or |
| 46 | housing allowances). |
| 47 | Section 2. Effective July 1, 2007, for the purpose of |
| 48 | funding the 3-year average final compensation benefit change |
| 49 | made by this act: |
| 50 | (1) The contribution rate that applies to the Special Risk |
| 51 | Class of the Florida Retirement System shall be increased by |
| 52 | 2.36 percentage points. |
| 53 | (2) The contribution rate that applies to the Special Risk |
| 54 | Administrative Support Class of the Florida Retirement System |
| 55 | shall be increased by 2.54 percentage points. |
| 56 | (3) The contribution rate that applies to the legislative- |
| 57 | attorney-Cabinet subclass of the Elected Officers' Class of the |
| 58 | Florida Retirement System shall be increased by 0.01 percentage |
| 59 | points. |
| 60 | (4) The contribution rate that applies to the Senior |
| 61 | Management Service Class of the Florida Retirement System shall |
| 62 | be increased by 0.01 percentage points. |
| 63 |
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| 64 | These increases shall be in addition to all other changes to |
| 65 | contribution rates which may be enacted into law to take effect |
| 66 | on that date. The Division of Statutory Revision is directed to |
| 67 | adjust the contribution rates set forth in s. 121.71(3), Florida |
| 68 | Statutes. |
| 69 | Section 3. The Legislature finds that a proper and |
| 70 | legitimate state purpose is served when employees and retirees |
| 71 | of the state and of its political subdivisions, and the |
| 72 | dependents, survivors, and beneficiaries of such employees and |
| 73 | retirees, are extended the basic protections afforded by |
| 74 | governmental retirement systems that provide fair and adequate |
| 75 | benefits and that are managed, administered, and funded in an |
| 76 | actuarially sound manner as required by s. 14, Art. X of the |
| 77 | State Constitution and part VII of chapter 112, Florida |
| 78 | Statutes. Therefore, the Legislature determines and declares |
| 79 | that this act fulfills an important state interest. |
| 80 | Section 4. This act shall take effect July 1, 2007. |