Senate Bill sb0626c1

    Florida Senate - 2007                            CS for SB 626

    By the Committee on Governmental Operations; and Senator
    Atwater




    585-2529-07

  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 recognition of

  8         excess actuarial assets to fund certain

  9         benefits; directing the Division of Statutory

10         Revision to adjust certain contribution rates;

11         providing a statement of important state

12         interest; 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                            CS for SB 626
    585-2529-07




 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.  It is the intent of the Legislature that

22  the costs attributable to the upgrading of special risk

23  service provided by this act shall be funded by a recognition

24  of a lump sum from the excess actuarial assets of the Florida

25  Retirement System Trust Fund.

26         Section 3.  The Legislature finds that a proper and

27  legitimate state purpose is served when employees and retirees

28  of the state and its political subdivisions, and the

29  dependents, survivors, and beneficiaries of such employees and

30  retirees, are extended the basic protections afforded by

31  governmental retirement systems. These persons must be

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    Florida Senate - 2007                            CS for SB 626
    585-2529-07




 1  provided benefits that are fair and adequate and that are

 2  managed, administered, and funded in an actuarially sound

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

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

 5  Legislature determines and declares that this act fulfills an

 6  important state interest.

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

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 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 626

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12  The CS replaces the .07 percent increase in payroll
    contribution rates with a nonrecurring recognition of excess
13  actuarial assets from the Florida Retirement System Trust Fund
    for payment of the benefit chnage.
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CODING: Words stricken are deletions; words underlined are additions.