HB 7105

1	A bill to be entitled
2	An act relating to the Florida Retirement System; creating
3	s. 121.047, F.S.; consolidating the operation of the
4	Institute of Food and Agricultural Sciences Supplemental
5	Retirement Program under the Florida Retirement System;
6	providing for assumption of program liabilities and
7	obligations; abolishing the Institute of Food and
8	Agricultural Sciences Supplemental Retirement Trust Fund;
9	barring program participants from membership in the
10	Florida Retirement System; amending s. 121.40, F.S.,
11	relating to the establishment and administration of the
12	Institute of Food and Agricultural Sciences Supplemental
13	Retirement Program; conforming provisions; redefining the
14	term "trust fund" for purposes of administering the
15	program; providing a rate of monthly contributions;
16	removing provisions relating to investments of the program
17	trust fund; providing a declaration of important state
18	interest; providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Section 121.047, Florida Statutes, is created
23	to read:
24	121.047  Consolidation of liabilities and assets; Institute
25	of Food and Agricultural Sciences Supplemental Retirement
26	Program; restriction.--
27	(1)  Effective July 1, 2007, the Institute of Food and
28	Agricultural Sciences Supplemental Retirement Program, as
29	established under s. 121.40, shall be consolidated under the
30	Florida Retirement System and the system shall assume:
31	(a)  All liabilities related to the payment of supplemental
32	monthly benefits to retired employees of the institute and their
33	surviving beneficiaries; and
34	(b)  All obligations in regard to funding and administering
35	benefits accrued for the benefit of retired employees of the
36	institute and their surviving beneficiaries.
37	(2)  The administrator shall, as of July 1, 2007, cause to
38	be transferred to the trust fund of the Florida Retirement
39	System all assets of the Institute of Food and Agricultural
40	Sciences Supplemental Retirement Trust Fund, including moneys,
41	securities, and other property accumulated to date, as well as
42	all liabilities and obligations connected therewith. Upon such
43	transfer of assets, liabilities, and obligations, the Institute
44	of Food and Agricultural Sciences Supplemental Retirement Trust
45	Fund shall be abolished and the administrator shall become the
46	trustee of any funds transferred to the Florida Retirement
47	System.
48	(3)  Participation in the Institute of Food and
49	Agricultural Sciences Supplemental Retirement Program does not
50	constitute membership in the Florida Retirement System.
51	Section 2.  Section 121.40, Florida Statutes, is amended to
52	read:
53	121.40  Cooperative extension personnel at the Institute of
54	Food and Agricultural Sciences; supplemental retirement
55	benefits.--
56	(1)  SHORT TITLE.--This section shall be known and may be
57	cited as the "Institute of Food and Agricultural Sciences
58	Supplemental Retirement Act."
59	(2)  PURPOSE.--The purpose of this act is to provide a
60	supplement to the monthly retirement benefits being paid under
61	the federal Civil Service Retirement System to, or with respect
62	to, certain retired employees of the Institute of Food and
63	Agricultural Sciences at the University of Florida, whose
64	positions were ineligible for coverage under a state-supported
65	retirement system.
66	(3)  DEFINITIONS.--The definitions provided in s. 121.021
67	shall not apply to this program section except when specifically
68	cited. For the purposes of this section, the following words or
69	phrases have the respective meanings set forth:
70	(a)  "Institute" means the Institute of Food and
71	Agricultural Sciences of the University of Florida.
72	(b)  "Department" means the Department of Management
73	Services.
74	(c)  "Participant" means any employee of the institute who
75	is eligible to receive a supplemental benefit under this program
76	as provided in subsection (4).
77	(d)  "Trust fund" means the Florida Retirement System
78	Institute of Food and Agricultural Sciences Supplemental
79	Retirement Trust Fund.
80	(e)  "Creditable service" means any service subsequent to
81	December 1, 1970, with the institute as a cooperative extension
82	employee holding both state and federal appointments, that is
83	credited for retirement purposes by the institute toward a
84	federal Civil Service Retirement System annuity.
85	(4)  ELIGIBILITY FOR SUPPLEMENT.--To be eligible for a
86	benefit under this program pursuant to the provisions of this
87	section, a person must meet all of the following eligibility
88	criteria:
89	(a)  The person must have held both state and federal
90	appointments while employed at the institute, and have completed
91	10 years of creditable service with the institute, subsequent to
92	December 1, 1970.
93	(b)  The person must be participating in the federal Civil
94	Service Retirement System based on service at the institute.
95	(c)  The person must have retired from the institute on or
96	after January 1, 1985, and must have been eligible for benefits
97	under the federal Civil Service Retirement System commencing
98	immediately upon the termination of service with the institute.
99	(d)  The person must have attained the age of 62.
100	(e)  The person must not be entitled to any benefit from a
101	state-supported retirement system or from social security based
102	upon service as a cooperative extension employee of the
103	institute. Participation in the Institute of Food and
104	Agricultural Sciences Supplemental Retirement Program shall not
105	constitute membership in the Florida Retirement System.
106	(f)  The person must have been employed with the institute
107	prior to, and on, July 1, 1983.
108	(5)  SUPPLEMENT AMOUNT.--The supplemental payment shall
109	provide a benefit to the retiree equal to the amount by which
110	the retirement annuity, without a survivor benefit, earned by
111	the employee under the federal Civil Service Retirement System
112	with respect to service as a cooperative extension employee of
113	the institute after December 1, 1970, is inferior to:
114	(a)  An amount equal to the option one retirement benefit
115	that the employee would have been entitled to receive at his or
116	her normal retirement age under the Florida Retirement System,
117	attributable only to creditable service after December 1, 1970,
118	as a cooperative extension employee of the institute, excluding
119	any past or prior service credit, had such employee been a
120	member of the Florida Retirement System; plus
121	(b)  An amount equal to the primary insurance amount that
122	the individual employee would have been entitled to receive
123	under social security at age 62 had he or she been covered for
124	such employment, such amount to be computed in accordance with
125	the Social Security Act only with respect to employment as a
126	cooperative extension employee of the institute after December
127	1, 1970.
128	(6)  PAYMENT OF SUPPLEMENT.--Any participant who retires on
129	or after January 1, 1985, from the federal Civil Service
130	Retirement System as a cooperative extension employee of the
131	institute at the University of Florida and who satisfies all of
132	the eligibility criteria specified in subsection (4) shall be
133	entitled to receive a supplemental benefit under this program
134	computed in accordance with subsection (5), to begin July 1,
135	1985, or the month of retirement, or the month in which the
136	participant becomes age 62, whichever is later. Upon application
137	to the administrator, the participant shall receive a monthly
138	supplemental benefit which shall commence on the last day of the
139	month of retirement and shall be payable on the last day of the
140	month thereafter during his or her lifetime. A participant may
141	have federal income tax and health insurance premiums deducted
142	from his or her monthly supplemental benefit in the same manner
143	as provided in s. 121.091(14)(a) and (b) for monthly retirement
144	benefits under the Florida Retirement System.
145	(7)  OPTIONAL FORMS OF SUPPLEMENTAL RETIREMENT
146	BENEFITS.--Prior to the receipt of the first monthly
147	supplemental retirement payment under this program, a
148	participant shall elect to receive the supplemental retirement
149	benefits to which he or she is entitled under subsection (6) in
150	accordance with s. 121.091(6).
151	(8)  DEATH BENEFITS.--
152	(a)  If the employment of a participant of this program is
153	terminated by reason of his or her death subsequent to the
154	completion of 10 years of creditable service with the institute
155	but prior to his or her actual retirement, such 10-year period
156	having commenced on or after December 1, 1970, it shall be
157	assumed that the participant had met all of the eligibility
158	requirements under this section and had retired from the federal
159	Civil Service Retirement System and under this section as of the
160	date of death, having elected, in accordance with subsection
161	(7), the optional form of supplemental payment most favorable to
162	his or her beneficiary, as determined by the administrator. The
163	monthly supplemental benefit provided in this paragraph shall be
164	paid to the participant's beneficiary (spouse or other financial
165	dependent) upon such beneficiary's attaining the age of 62 and
166	shall be paid thereafter for the beneficiary's lifetime.
167	(b)  If a participant of this program dies subsequent to
168	his or her actual retirement under the federal Civil Service
169	Retirement System but prior to attaining age 62, and such
170	participant was otherwise eligible for supplemental benefits
171	under this section, it shall be assumed that the participant had
172	met all of the eligibility requirements under this section and
173	had retired as of the date of death, having elected, in
174	accordance with subsection (7), the optional form of
175	supplemental payment most favorable to his or her beneficiary,
176	as determined by the administrator. The monthly supplemental
177	benefit provided in this paragraph shall be paid to the
178	participant's beneficiary (spouse or other financial dependent)
179	upon such beneficiary's attaining the age of 62 and shall be
180	paid thereafter for the beneficiary's lifetime.
181	(9)  DESIGNATION OF BENEFICIARIES.--Each participant of
182	this program may designate beneficiaries in accordance with s.
183	121.091(8).
184	(10)  COST-OF-LIVING ADJUSTMENT OF SUPPLEMENTAL
185	BENEFITS.--On each July 1, the supplemental benefit of each
186	retired participant of this program and each annuitant thereof
187	shall be adjusted as provided in s. 121.101.
188	(11)  EMPLOYMENT AFTER RETIREMENT: LIMITATION.--Any person
189	who is receiving a supplemental retirement benefit under this
190	program section may be reemployed by any private or public
191	employer after retirement and receive supplemental retirement
192	benefits pursuant to this section and compensation from his or
193	her employer, without any limitations. However, if a retired
194	participant who is receiving a supplemental retirement benefit
195	under this section is reemployed at the institute in a position
196	as a cooperative extension employee of the institute, he or she
197	shall forfeit all rights to supplemental retirement benefits in
198	accordance with the eligibility provisions of paragraph (4)(e).
199	(12)  CONTRIBUTIONS.--
200	(a)  For the purpose purposes of funding the supplemental
201	benefits provided by this section, the institute is authorized
202	and required to pay, commencing July 1, 1985, the necessary
203	monthly contributions from its appropriated budget. These
204	amounts shall be paid into the Florida Retirement System
205	Institute of Food and Agricultural Sciences Supplemental
206	Retirement Trust Fund, which is hereby created.
207	(b)  The monthly contributions required to be paid pursuant
208	to paragraph (a) on the gross monthly salaries, from all sources
209	with respect to such employment, paid to those employees of the
210	institute who hold both state and federal appointments and who
211	participate in the federal Civil Service Retirement System shall
212	be as follows:
213
	Dates of Contribution Rate Changes Percentage Due
214
	July 1, 1985, through December 31, 1988   6.68%
215
	January 1, 1989, through December 31, 1993   6.35%
216
	January 1, 1994, through December 31, 1994   6.69%
217
	January 1, 1995, through June 30, 1996   6.82%
218
	July 1, 1996, throughJune 30, 1998   5.64%
219
	July 1, 1998, through June 30, 2001   7.17%
220
	July 1, 2001, through June 30, 2003   6.96%
221
	July 1, 2003, through June 30, 2005   13.83%
222
	Effective July 1, 2005, through June 30, 2007   20.23%
223
	Effective July 1, 2007   18.75%
224
225	(13)  INVESTMENT OF THE TRUST FUND.--
226	(a)  The State Board of Administration shall invest and
227	reinvest available funds of the trust fund in accordance with
228	the provisions of ss. 215.44-215.53. The board shall consider
229	investment techniques, such as contingent immunization or the
230	development of a dedicated portfolio, which are directed toward
231	developing minimum-risk procedures for supporting a prescribed
232	liability schedule.
233	(b)  Costs incurred in carrying out the provisions of this
234	section shall be deducted from the interest earnings accruing to
235	the trust fund.
236	(13)(14)  ADMINISTRATION OF PROGRAM SYSTEM.--
237	(a)  The department shall make such rules as are necessary
238	for the effective and efficient administration of this program
239	system. The secretary of the department shall be the
240	administrator of the program system. The funds to pay the
241	expenses for such administration shall be appropriated from the
242	interest earned on investments made for the Florida Retirement
243	System Trust Fund.
244	(b)  The department may is authorized to require oaths, by
245	affidavit or otherwise, and acknowledgments from persons in
246	connection with the administration of its duties and
247	responsibilities under this section.
248	(c)  The administrator shall cause an actuarial study of
249	the system to be made at least once every 2 years and shall
250	report the results of such study to the next session of the
251	Legislature following completion of the study.
252	Section 3.  The Legislature finds that a proper and
253	legitimate state purpose is served when employees and retirees
254	of the state and its political subdivisions and the dependents,
255	survivors, and beneficiaries of such employees and retirees are
256	extended the basic protections afforded by governmental
257	retirement systems that provide fair and adequate benefits that
258	are managed, administered, and funded in an actuarially sound
259	manner, as required by s. 14, Art. X of the State Constitution
260	and part VII of chapter 112, Florida Statutes. Therefore, the
261	Legislature determines and declares that this act fulfills an
262	important state interest.
263	Section 4.  This act shall take effect July 1, 2007.

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