| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Retirement System; amending |
| 3 | s. 121.052, F.S.; specifying that the election to |
| 4 | participate as members in the Senior Management Service |
| 5 | Class by certain elected officers shall have no effect on |
| 6 | the statutory limit on the number of nonelective full-time |
| 7 | positions that may be designated for inclusion within the |
| 8 | Senior Management Service Class; amending s. 121.055, |
| 9 | F.S.; authorizing designation of a certain number of |
| 10 | nonelective full-time positions for certain school |
| 11 | districts for inclusion within the Senior Management |
| 12 | Service Class; providing an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Paragraph (c) of subsection (3) of section |
| 17 | 121.052, Florida Statutes, is amended to read: |
| 18 | 121.052 Membership class of elected officers.-- |
| 19 | (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective |
| 20 | July 1, 1990, participation in the Elected Officers' Class shall |
| 21 | be compulsory for elected officers listed in paragraphs (2)(a)- |
| 22 | (d) and (f) assuming office on or after said date, unless the |
| 23 | elected officer elects membership in another class or withdraws |
| 24 | from the Florida Retirement System as provided in paragraphs |
| 25 | (3)(a)-(d): |
| 26 | (c) Any elected officer may, within 6 months after |
| 27 | assuming office, or within 6 months after this act becomes a law |
| 28 | for serving elected officers, elect membership in the Senior |
| 29 | Management Service Class as provided in s. 121.055 in lieu of |
| 30 | membership in the Elected Officers' Class. Any such election |
| 31 | made by a county elected officer shall have no effect upon the |
| 32 | statutory limit on the number of nonelective full-time positions |
| 33 | that may be designated by a local agency employer or a specified |
| 34 | school district for inclusion in the Senior Management Service |
| 35 | Class under s. 121.055(1)(b)1. |
| 36 | Section 2. Paragraph (b) of subsection (1) of section |
| 37 | 121.055, Florida Statutes, is amended to read: |
| 38 | 121.055 Senior Management Service Class.--There is hereby |
| 39 | established a separate class of membership within the Florida |
| 40 | Retirement System to be known as the "Senior Management Service |
| 41 | Class," which shall become effective February 1, 1987. |
| 42 | (1) |
| 43 | (b)1. Except as provided in subparagraph 2., effective |
| 44 | January 1, 1990, participation in the Senior Management Service |
| 45 | Class shall be compulsory for the president of each community |
| 46 | college, the manager of each participating city or county, and |
| 47 | all appointed district school superintendents. Effective January |
| 48 | 1, 1994, additional positions may be designated for inclusion in |
| 49 | the Senior Management Service Class of the Florida Retirement |
| 50 | System, provided that: |
| 51 | a. Positions to be included in the class shall be |
| 52 | designated by the local agency employer. Notice of intent to |
| 53 | designate positions for inclusion in the class shall be |
| 54 | published once a week for 2 consecutive weeks in a newspaper of |
| 55 | general circulation published in the county or counties |
| 56 | affected, as provided in chapter 50. |
| 57 | b. Up to 10 nonelective full-time positions may be |
| 58 | designated for each local agency employer reporting to the |
| 59 | Department of Management Services, except for school districts |
| 60 | serving as the fiscal agent for a regional consortium service |
| 61 | organization as established pursuant to s. 1001.451. School |
| 62 | districts serving as the fiscal agent for a regional consortium |
| 63 | service organization established pursuant to s. 1001.451 may |
| 64 | designate up to 15 nonelective full-time positions.; for Local |
| 65 | agencies with 100 or more regularly established positions, may |
| 66 | designate additional nonelective full-time positions may be |
| 67 | designated, not to exceed 1 percent of the regularly established |
| 68 | positions within the agency. |
| 69 | c. Each position added to the class must be a managerial |
| 70 | or policymaking position filled by an employee who is not |
| 71 | subject to continuing contract and serves at the pleasure of the |
| 72 | local agency employer without civil service protection, and who: |
| 73 | (I) Heads an organizational unit; or |
| 74 | (II) Has responsibility to effect or recommend personnel, |
| 75 | budget, expenditure, or policy decisions in his or her areas of |
| 76 | responsibility. |
| 77 | 2. In lieu of participation in the Senior Management |
| 78 | Service Class, members of the Senior Management Service Class |
| 79 | pursuant to the provisions of subparagraph 1. may withdraw from |
| 80 | the Florida Retirement System altogether. The decision to |
| 81 | withdraw from the Florida Retirement System shall be irrevocable |
| 82 | for as long as the employee holds such a position. Any service |
| 83 | creditable under the Senior Management Service Class shall be |
| 84 | retained after the member withdraws from the Florida Retirement |
| 85 | System; however, additional service credit in the Senior |
| 86 | Management Service Class shall not be earned after such |
| 87 | withdrawal. Such members shall not be eligible to participate in |
| 88 | the Senior Management Service Optional Annuity Program. |
| 89 | 3. Effective January 1, 2006, through June 30, 2006, an |
| 90 | employee who has withdrawn from the Florida Retirement System |
| 91 | under subparagraph 2. has one opportunity to elect to |
| 92 | participate in either the defined benefit program or the Public |
| 93 | Employee Optional Retirement Program of the Florida Retirement |
| 94 | System. |
| 95 | a. If the employee elects to participate in the Public |
| 96 | Employee Optional Retirement Program, membership shall be |
| 97 | prospective, and the applicable provisions of s. 121.4501(4) |
| 98 | shall govern the election. |
| 99 | b. If the employee elects to participate in the defined |
| 100 | benefit program of the Florida Retirement System, the employee |
| 101 | shall, upon payment to the system trust fund of the amount |
| 102 | calculated under sub-sub-subparagraph (I), receive service |
| 103 | credit for prior service based upon the time during which the |
| 104 | employee had withdrawn from the system. |
| 105 | (I) The cost for such credit shall be an amount |
| 106 | representing the actuarial accrued liability for the affected |
| 107 | period of service. The cost shall be calculated using the |
| 108 | discount rate and other relevant actuarial assumptions that were |
| 109 | used to value the Florida Retirement System defined benefit plan |
| 110 | liabilities in the most recent actuarial valuation. The |
| 111 | calculation shall include any service already maintained under |
| 112 | the defined benefit plan in addition to the period of |
| 113 | withdrawal. The actuarial accrued liability attributable to any |
| 114 | service already maintained under the defined benefit plan shall |
| 115 | be applied as a credit to the total cost resulting from the |
| 116 | calculation. The division shall ensure that the transfer sum is |
| 117 | prepared using a formula and methodology certified by an |
| 118 | actuary. |
| 119 | (II) The employee must transfer a sum representing the net |
| 120 | cost owed for the actuarial accrued liability in sub-sub- |
| 121 | subparagraph (I) immediately following the time of such |
| 122 | movement, determined assuming that attained service equals the |
| 123 | sum of service in the defined benefit program and the period of |
| 124 | withdrawal. |
| 125 | Section 3. This act shall take effect July 1, 2008. |