1

A bill to be entitled

2

An act relating to retirement; amending s. 121.021, F.S.;

3

clarifying that the term "compensation" for purposes of

4

the benefit retirement program or the Public Employee

5

Optional Retirement Program of the Florida Retirement

6

System does not include fees or salary payments made from

7

a faculty practice plan authorized by the Board of

8

Governors of the State University System for clinical

9

faculty at a state university having a faculty practice

10

plan; amending s. 121.051, F.S.; requiring that a person

11

appointed to a faculty position at a state university

12

having a faculty practice plan participate in the optional

13

retirement program of the State University System rather

14

than the Florida Retirement System; providing definitions;

15

amending s. 121.35, F.S.; requiring the participating

16

employee in the optional retirement program to execute a

17

contract, not just an annuity contract, with a designated

18

company in order for employee contributions to be

19

forwarded to the company and for interest to accrue;

20

defining the term "participant's gross monthly

21

compensation" for purposes of the optional retirement

22

program for the State University System; creating s.

23

121.355, F.S.; authorizing certain former participants in

24

the Community College Optional Retirement Program or the

25

State University System Optional Retirement Program and

26

present mandatory participants in the Florida Retirement

27

System to receive a specified amount of service credit

28

under certain conditions; providing a specified time

29

period for the election of such transfer; limiting certain

30

service credit; providing an effective date.

31

32

Be It Enacted by the Legislature of the State of Florida:

33

34

     Section 1.  Paragraph (b) of subsection (22) of section

35

121.021, Florida Statutes, is amended to read:

36

     121.021  Definitions.--The following words and phrases as

37

used in this chapter have the respective meanings set forth

38

unless a different meaning is plainly required by the context:

39

     (22)  "Compensation" means the monthly salary paid a member

40

by his or her employer for work performed arising from that

41

employment.

42

     (b) Under no circumstances shall compensation for a member

43

participating in the defined benefit retirement program or the

44

Public Employee Optional Retirement Program of the Florida

45

Retirement System include:

46

     1.  Fees paid professional persons for special or particular

47

services or include salary payments made from a faculty practice

48

plan authorized by the Board of Governors of the State University

49

System for eligible clinical faculty at a college in a state

50

university with a faculty practice plan; or

51

     2.  Any bonuses or other payments prohibited from inclusion

52

in the member's average final compensation and defined in

53

subsection (47).

54

     Section 2.  Paragraph (a) of subsection (1) of section

55

121.051, Florida Statutes, is amended to read:

56

     121.051  Participation in the system.--

57

     (1)  COMPULSORY PARTICIPATION.--

58

     (a)  The provisions of this law shall be compulsory as to

59

all officers and employees, except elected officers who meet the

60

requirements of s. 121.052(3), who are employed on or after

61

December 1, 1970, of an employer other than those referred to in

62

paragraph (2)(b), and each officer or employee, as a condition of

63

employment, shall become a member of the system as of his or her

64

date of employment, except that a person who is retired from any

65

state retirement system and is reemployed on or after December 1,

66

1970, may shall not be permitted to renew his or her membership

67

in any state retirement system except as provided in s.

68

121.091(4)(h) for a person who recovers from disability, and as

69

provided in s. 121.091(9)(b)8. for a person who is elected to

70

public office, and, effective July 1, 1991, as provided in s.

71

121.122 for all other retirees. Officers and employees of the

72

University Athletic Association, Inc., a nonprofit association

73

connected with the University of Florida, employed on and after

74

July 1, 1979, shall not participate in any state-supported

75

retirement system.

76

     1.a. Any person appointed on or after July 1, 1989, to a

77

faculty position in a college at the J. Hillis Miller Health

78

Center at the University of Florida or the Medical Center at the

79

University of South Florida which has a faculty practice plan

80

provided by rule adopted by the Board of Regents may shall not

81

participate in the Florida Retirement System. Effective July 1,

82

2008, any person appointed thereafter to a faculty position,

83

including clinical faculty, in a college at a state university

84

that has a faculty practice plan authorized by the Board of

85

Governors may not participate in the Florida Retirement System. A

86

faculty member so appointed shall participate in the optional

87

retirement program for the State University System on the basis

88

of his or her state-funded compensation, notwithstanding the

89

provisions of s. 121.35(2)(a).

90

     b. For purposes of this subparagraph, the term "faculty

91

position" is defined as a position assigned the principal

92

responsibility of teaching, research, or public service

93

activities or administrative responsibility directly related to

94

the academic mission of the college. The term "clinical faculty"

95

is defined as a faculty position appointment in conjunction with

96

a professional position in a hospital or other clinical

97

environment at a college. The term "faculty practice plan"

98

includes professional services to patients, institutions, or

99

other parties which are rendered by the clinical faculty employed

100

by a college with a faculty practice plan at a state university

101

authorized by the Board of Governors.

102

     Section 3.  Paragraph (a) of subsection (4) of section

103

121.35, Florida Statutes, is amended, and paragraph (g) is added

104

to that subsection, to read:

105

     121.35  Optional retirement program for the State University

106

System.--

107

     (4)  CONTRIBUTIONS.--

108

     (a)  Through June 30, 2001, each employer shall contribute

109

on behalf of each participant in the optional retirement program

110

an amount equal to the normal cost portion of the employer

111

retirement contribution which would be required if the

112

participant were a regular member of the Florida Retirement

113

System defined benefit program, plus the portion of the

114

contribution rate required in s. 112.363(8) that would otherwise

115

be assigned to the Retiree Health Insurance Subsidy Trust Fund.

116

Effective July 1, 2001, each employer shall contribute on behalf

117

of each participant in the optional program an amount equal to

118

10.43 percent of the participant's gross monthly compensation.

119

The department shall deduct an amount approved by the Legislature

120

to provide for the administration of this program. The payment of

121

the contributions to the optional program which is required by

122

this paragraph for each participant shall be made by the employer

123

to the department, which shall forward the contributions to the

124

designated company or companies contracting for payment of

125

benefits for the participant under the program. However, such

126

contributions paid on behalf of an employee described in

127

paragraph (3)(c) shall not be forwarded to a company and shall

128

not begin to accrue interest until the employee has executed a an

129

annuity contract and notified the department.

130

     (g) Effective July 1, 2008, for purposes of paragraph (a)

131

and notwithstanding s. 121.021(22)(b)1., the term "participant's

132

gross monthly compensation" includes salary payments made to

133

eligible clinical faculty from a state university using funds

134

provided by a faculty practice plan authorized by the Board of

135

Governors of the State University System if:

136

     1. There is not any employer contribution from the state

137

university to any other retirement program with respect to such

138

salary payments; and

139

     2. The employer contribution on behalf of the participant

140

in the optional retirement program with respect to such salary

141

payments is made using funds provided by the faculty practice

142

plan.

143

     Section 4.  Section 121.355, Florida Statutes, is created to

144

read:

145

     121.355 Community College Optional Retirement Program and

146

State University System Optional Retirement Program member

147

transfer.--Effective January 1, 2009, through December 31, 2009,

148

an employee who is a former participant in the Community College

149

Optional Retirement Program or the State University System

150

Optional Retirement Program and present mandatory participant in

151

the Florida Retirement System defined benefit plan may receive

152

service credit equal to his or her years of service under the

153

Community College Optional Retirement Program or the State

154

University System Optional Retirement Program under the following

155

conditions:

156

     (1) The cost for such credit shall be an amount

157

representing the actuarial accrued liability for the affected

158

period of service. The cost shall be calculated using the

159

discount rate and other relevant actuarial assumptions that were

160

used to value the Florida Retirement System defined benefit plan

161

liabilities in the most recent actuarial valuation. The

162

calculation shall include any service already maintained under

163

the defined benefit plan in addition to the years under the

164

Community College Optional Retirement Program or the State

165

University System Optional Retirement Program. The actuarial

166

accrued liability of any service already maintained under the

167

defined benefit plan shall be applied as a credit to total cost

168

resulting from the calculation. The division shall ensure that

169

the transfer sum is prepared using a formula and methodology

170

certified by an enrolled actuary.

171

     (2) The employee must transfer from his or her Community

172

College Optional Retirement Program account or State University

173

System Optional Retirement Program account, subject to the terms

174

of the applicable optional retirement program contract, and from

175

other employee moneys as necessary, a sum representing the

176

actuarial accrued liability immediately following the time of

177

such movement, determined assuming that attained service equals

178

the sum of service in the defined benefit program and service in

179

the Community College Optional Retirement Program or State

180

University System Optional Retirement Program.

181

     (3) The employee may not receive service credit for a

182

period of mandatory participation in the State University

183

Optional Retirement Program or for a period for which a

184

distribution was received from the Community College Optional

185

Retirement Program or State University System Optional Retirement

186

Program.

187

     Section 5.  This act shall take effect July 1, 2008.