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 effect July 1, 2008, and July 1, 2009;

6

providing a declaration of important state interest;

7

providing an effective date.

8

9

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

10

11

     Section 1.  Section 121.71, Florida Statutes, is amended to

12

read:

13

     121.71  Uniform rates; process; calculations; levy.--

14

     (1)  In conducting the system actuarial study required under

15

s. 121.031, the actuary shall follow all requirements specified

16

thereunder to determine, by Florida Retirement System employee

17

membership class, the dollar contribution amounts necessary for

18

the forthcoming fiscal year for the defined benefit program. In

19

addition, the actuary shall determine, by Florida Retirement

20

System membership class, based on an estimate for the forthcoming

21

fiscal year of the gross compensation of employees participating

22

in the optional retirement program, the dollar contribution

23

amounts necessary to make the allocations required under ss.

24

121.72 and 121.73. For each employee membership class and

25

subclass, the actuarial study shall establish a uniform rate

26

necessary to fund the benefit obligations under both Florida

27

Retirement System retirement plans, by dividing the sum of total

28

dollars required by the estimated gross compensation of members

29

in both plans.

30

     (2)  Based on the uniform rates set forth in subsection (3),

31

employers shall make monthly contributions to the Division of

32

Retirement, which shall initially deposit the funds into the

33

Florida Retirement System Contributions Clearing Trust Fund. A

34

change in a contribution rate is effective the first day of the

35

month for which a full month's employer contribution may be made

36

on or after the beginning date of the change.

37

     (3)  Required employer retirement contribution rates for

38

each membership class and subclass of the Florida Retirement

39

System for both retirement plans are as follows:

40

41

42

43

44

45

46

47

48

49

50

51

     (4)  The state actuary shall recognize and use an

52

appropriate level of available excess assets of the Florida

53

Retirement System Trust Fund to offset the difference between the

54

normal costs of the Florida Retirement System and the statutorily

55

prescribed contribution rates.

56

     Section 2. The Legislature finds that a proper and

57

legitimate state purpose is served when employees and retirees of

58

the state and its political subdivisions, and the dependents,

59

survivors, and beneficiaries of such employees and retirees, are

60

extended the basic protections afforded by governmental

61

retirement systems. These persons must be provided benefits that

62

are fair and adequate and that are managed, administered, and

63

funded in an actuarially sound manner, as required by Section 14,

64

Article X of the State Constitution, and part VII of chapter 112,

65

Florida Statutes. Therefore, the Legislature determines and

66

declares that this act fulfills an important state interest.

67

     Section 3.  This act shall take effect July 1, 2008.