| 1 | A bill to be entitled |
| 2 | An act relating to retirement; amending s. 121.71, F.S.; |
| 3 | revising the payroll contribution rates for the membership |
| 4 | classes of the Florida Retirement System for the state |
| 5 | fiscal years effective July 1, 2007, and July 1, 2008; |
| 6 | providing an effective date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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| 10 | Section 1. Section 121.71, Florida Statutes, is amended to |
| 11 | read: |
| 12 | 121.71 Uniform rates; process; calculations; levy.-- |
| 13 | (1) In conducting the system actuarial study required |
| 14 | under s. 121.031, the actuary shall follow all requirements |
| 15 | specified thereunder to determine, by Florida Retirement System |
| 16 | employee membership class, the dollar contribution amounts |
| 17 | necessary for the forthcoming fiscal year for the defined |
| 18 | benefit program. In addition, the actuary shall determine, by |
| 19 | Florida Retirement System membership class, based on an estimate |
| 20 | for the forthcoming fiscal year of the gross compensation of |
| 21 | employees participating in the optional retirement program, the |
| 22 | dollar contribution amounts necessary to make the allocations |
| 23 | required under ss. 121.72 and 121.73. For each employee |
| 24 | membership class and subclass, the actuarial study shall |
| 25 | establish a uniform rate necessary to fund the benefit |
| 26 | obligations under both Florida Retirement System retirement |
| 27 | plans, by dividing the sum of total dollars required by the |
| 28 | estimated gross compensation of members in both plans. |
| 29 | (2) Based on the uniform rates set forth in subsection |
| 30 | (3), employers shall make monthly contributions to the Division |
| 31 | of Retirement, which shall initially deposit the funds into the |
| 32 | Florida Retirement System Contributions Clearing Trust Fund. A |
| 33 | change in a contribution rate is effective the first day of the |
| 34 | month for which a full month's employer contribution may be made |
| 35 | on or after the beginning date of the change. |
| 36 | (3) Required employer retirement contribution rates for |
| 37 | each membership class and subclass of the Florida Retirement |
| 38 | System for both retirement plans are as follows: |
| 39 |
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| | | Membership Class | Percentage of Gross Compensation,Effective July 1, 2007 2006 | Percentage of Gross Compensation,Effective July 1, 2008 2007 |
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| 40 |
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| 41 |
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| | | Special Risk Class | 19.76% | 21.92% 21.96% |
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| 42 |
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| | | Special Risk Administrative Support Class | 11.39% | 11.86% 12.65% |
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| 43 |
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| | | Elected Officers' Class - Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders | 13.32% | 14.66% 14.80% |
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| 44 |
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| | | Elected Officers' Class - Justices, Judges | 18.40% | 20.42% 20.44% |
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| 45 |
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| | | Elected Officers' Class - County Elected Officers | 15.37% | 17.03% 17.08% |
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| 46 |
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| | | Senior Management Class | 11.96% | 12.95% 13.29% |
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| 47 |
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| 48 |
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| 49 | (4) The state actuary shall recognize and use an |
| 50 | appropriate level of available excess assets of the Florida |
| 51 | Retirement System Trust Fund to offset the difference between |
| 52 | the normal costs of the Florida Retirement System and the |
| 53 | statutorily prescribed contribution rates. |
| 54 | Section 2. This act shall take effect July 1, 2007. |