| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Retirement System; amending |
| 3 | s. 121.111, F.S.; authorizing additional persons to |
| 4 | purchase credit for prior military wartime service; |
| 5 | revising the payroll contribution rates for the membership |
| 6 | classes of the system; providing a declaration of |
| 7 | important state interest; providing an effective date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Subsection (2) of section 121.111, Florida |
| 12 | Statutes, is amended to read: |
| 13 | 121.111 Credit for military service.-- |
| 14 | (2)(a) Any member whose initial date of employment is |
| 15 | before January 1, 1987, who has military service as defined in |
| 16 | s. 121.021(20)(b), and who does not claim such service under |
| 17 | subsection (1) may receive creditable service for such military |
| 18 | service if: |
| 19 | 1.(a) The member is vested; |
| 20 | 2.(b) Creditable service, not to exceed a total of 4 |
| 21 | years, is claimed only as service earned in the Regular Class of |
| 22 | membership; and |
| 23 | 3.(c) The member pays into the proper retirement trust |
| 24 | fund 4 percent of gross salary, based upon his or her first year |
| 25 | of salary subsequent to July 1, 1945, that he or she has credit |
| 26 | for under this system, plus 4 percent interest thereon |
| 27 | compounded annually from the date of first creditable service |
| 28 | under this chapter until July 1, 1975, and 6.5 percent interest |
| 29 | compounded annually thereafter, until payment is made to the |
| 30 | proper retirement trust fund. |
| 31 | (b)(d) The member may not receive credit for any wartime |
| 32 | military service if the member also receives credit for such |
| 33 | service under any federal, state, or local retirement or pension |
| 34 | system where "length of service" is a factor in determining the |
| 35 | amount of compensation received. However, credit for wartime |
| 36 | military service may be received where the member also receives |
| 37 | credit under a pension system providing retired pay for |
| 38 | nonregular service in the Armed Forces of the United States in |
| 39 | accordance with 10 U.S.C. ss. 1331 et seq., as follows: |
| 40 | 1. Any person whose retirement date under the Florida |
| 41 | Retirement System is prior to July 1, 1985, may claim such |
| 42 | service at any time, as provided in this subsection, upon |
| 43 | payment of contributions and interest as provided in |
| 44 | subparagraph (a)3. paragraph (c), with interest computed to the |
| 45 | retired member's retirement date. The benefit shall be |
| 46 | recalculated and increased to include the additional service |
| 47 | credit granted for such wartime military service, and a lump-sum |
| 48 | payment shall be made to the retiree for the amount owed due to |
| 49 | the additional service credit, retroactive to the date of |
| 50 | retirement. |
| 51 | 2. Any person whose retirement date is on or after July 1, |
| 52 | 1985, must claim such service and pay the required |
| 53 | contributions, as provided in subparagraph (a)3. paragraph (c), |
| 54 | prior to the commencement of his or her retirement benefits, as |
| 55 | provided in this subsection. |
| 56 | (c)(e) Any member claiming credit under this subsection |
| 57 | must certify on the form prescribed by the department that |
| 58 | credit for such service has not and will not be claimed for |
| 59 | retirement purposes under any other federal, state, or local |
| 60 | retirement or pension system where "length of service" is a |
| 61 | factor in determining the amount of compensation received, |
| 62 | except where credit for such service has been granted in a |
| 63 | pension system providing retired pay for nonregular service as |
| 64 | provided in paragraph (b) (d). If the member dies prior to |
| 65 | retirement, the member's beneficiary must make the required |
| 66 | certification before credit may be claimed. If such |
| 67 | certification is not made by the member or the member's |
| 68 | beneficiary, credit for wartime military service shall not be |
| 69 | allowed. |
| 70 | (d)(f) Service credit awarded for wartime military service |
| 71 | shall be the total number of years, months, and days from and |
| 72 | including the date of entry into active duty through the date of |
| 73 | discharge from active duty, up to a maximum of 4 years. If the |
| 74 | military service includes a partial year, it shall be stated as |
| 75 | a fraction of a year. Creditable military service shall be |
| 76 | calculated in accordance with rule 60S-2.005(2)(j), Florida |
| 77 | Administrative Code. |
| 78 | Section 2. Effective July 1, 2008, in order to fund the |
| 79 | benefits provided by this act: |
| 80 | (1) The contribution rate that applies to the Regular |
| 81 | Class of the Florida Retirement System shall be increased by |
| 82 | 0.11 percentage points. |
| 83 | (2) The contribution rate that applies to the Special Risk |
| 84 | Class of the Florida Retirement System shall be increased by |
| 85 | 0.16 percentage points. |
| 86 | (3) The contribution rate that applies to the Special Risk |
| 87 | Administrative Support Class of the Florida Retirement System |
| 88 | shall be increased by 0.21 percentage points. |
| 89 | (4) The contribution rate that applies to the Judicial |
| 90 | subclass of the Elected Officers' Class of the Florida |
| 91 | Retirement System shall be increased by 0.20 percentage points. |
| 92 | (5) The contribution rate that applies to the legislative- |
| 93 | attorney-Cabinet subclass of the Elected Officers' Class of the |
| 94 | Florida Retirement System shall be increased by 0.19 percentage |
| 95 | points. |
| 96 | (6) The contribution rate that applies to the County |
| 97 | Officers' subclass of the Elected Officers' Class of the Florida |
| 98 | Retirement System shall be increased by 0.22 percentage points. |
| 99 | (7) The contribution rate that applies to the Senior |
| 100 | Management Service Class of the Florida Retirement System shall |
| 101 | be increased by 0.18 percentage points. |
| 102 |
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| 103 | These increases shall be in addition to all other changes to |
| 104 | such contribution rates which may be enacted into law to take |
| 105 | effect on that date. The Division of Statutory Revision is |
| 106 | directed to adjust the contribution rates set forth in sections |
| 107 | 121.052, 121.055, and 121.071, Florida Statutes. |
| 108 | Section 3. The Legislature finds that a proper and |
| 109 | legitimate state purpose is served when employees and retirees |
| 110 | of the state and its political subdivisions, and the dependents, |
| 111 | survivors, and beneficiaries of such employees and retirees, are |
| 112 | extended the basic protections afforded by governmental |
| 113 | retirement systems. These persons must be provided benefits that |
| 114 | are fair and adequate and that are managed, administered, and |
| 115 | funded in an actuarially sound manner, as required by Section |
| 116 | 14, Article X of the State Constitution, and part VII of chapter |
| 117 | 112, Florida Statutes. Therefore, the Legislature determines and |
| 118 | declares that this act fulfills an important state interest. |
| 119 | Section 4. This act shall take effect July 1, 2008. |