Senate Bill sb0626

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    Florida Senate - 2007                                   SB 626

    By Senator Atwater





    25-501-07

  1                      A bill to be entitled

  2         An act relating to the Special Risk Class of

  3         the Florida Retirement System; amending s.

  4         121.0515, F.S.; authorizing certain employees

  5         to purchase additional retirement credit for

  6         past service at a 3-percent Special Risk Class

  7         accrual value; providing for contribution rate

  8         increases to fund certain benefits; directing

  9         the Division of Statutory Revision to adjust

10         certain contribution rates; providing a

11         statement of important state interest;

12         providing an effective date.

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

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16         Section 1.  Subsection (5) of section 121.0515, Florida

17  Statutes, is amended to read:

18         121.0515  Special risk membership.--

19         (5)  CREDIT FOR PAST SERVICE.--A special risk member

20  may purchase retirement credit in the Special Risk Class based

21  upon past service, and may upgrade retirement credit for such

22  past service, to the extent of 3 2 percent of the member's

23  average monthly compensation as specified in s. 121.091(1)(a)

24  for such service as follows:

25         (a)  The member may purchase special risk credit for

26  past service with a city or special district which has elected

27  to join the Florida Retirement System, or with a participating

28  agency to which a member's governmental unit was transferred,

29  merged, or consolidated as provided in s. 121.081(1)(f), if

30  the member was employed with the city or special district at

31  the time it commenced participating in the Florida Retirement

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    Florida Senate - 2007                                   SB 626
    25-501-07




 1  System or with the governmental unit at the time of its

 2  transfer, merger, or consolidation with the participating

 3  agency. The service must satisfy the criteria set forth in

 4  subsection (2) for special risk membership as a law

 5  enforcement officer, a firefighter, or a correctional officer,

 6  or an emergency medical technician or a paramedic whose

 7  employer was a licensed Advance Life Support (ALS) or Basic

 8  Life Support (BLS) provider; however, no certificate or waiver

 9  of certificate of compliance with s. 943.1395 or s. 633.35

10  shall be required for such service.

11         (b)  Contributions for upgrading the additional special

12  risk credit pursuant to this subsection shall be equal to the

13  difference in the contributions paid and the special risk

14  percentage rate of gross salary in effect at the time of

15  purchase for the period being claimed, plus interest thereon

16  at the rate of 4 percent a year compounded annually from the

17  date of such service until July 1, 1975, and 6.5 percent a

18  year thereafter until the date of payment. This past service

19  may be purchased by the member or by the employer on behalf of

20  the member.

21         Section 2.  Effective July 1, 2007, in order to fund

22  the benefit improvements provided in s. 121.0515, Florida

23  Statutes, as amended by this act, the contribution rate that

24  applies to the Special Risk Class of the defined benefit

25  program of the Florida Retirement System shall be increased by

26  0.07 percentage points. This increase shall be in addition to

27  all other changes to such contribution rates which may be

28  enacted into law to take effect on that date. The Division of

29  Statutory Revision is directed to adjust accordingly the

30  contribution rates set forth in s. 121.71, Florida Statutes.

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    Florida Senate - 2007                                   SB 626
    25-501-07




 1         Section 3.  The Legislature finds that a proper and

 2  legitimate state purpose is served when employees and retirees

 3  of the state and its political subdivisions, and the

 4  dependents, survivors, and beneficiaries of such employees and

 5  retirees, are extended the basic protections afforded by

 6  governmental retirement systems. These persons must be

 7  provided benefits that are fair and adequate and that are

 8  managed, administered, and funded in an actuarially sound

 9  manner, as required by s. 14, Art. X of the State Constitution

10  and part VII of chapter 112, Florida Statutes. Therefore, the

11  Legislature determines and declares that this act fulfills an

12  important state interest.

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

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16                          SENATE SUMMARY

17    Increases the amount of past service that specified
      Special Risk Class members in the Florida Retirement
18    System may purchase or upgrade.

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