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The Committee on Higher Education (Oelrich) recommended the

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following amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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

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121.021, Florida Statutes, is amended to read:

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     121.021  Definitions.--The following words and phrases as

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used in this chapter have the respective meanings set forth

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unless a different meaning is plainly required by the context:

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

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by his or her employer for work performed arising from that

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employment.

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     (b) Under no circumstances shall compensation for a member

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participating in the defined benefit retirement program or the

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Public Employee Optional Retirement Program of the Florida

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Retirement System include:

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     1.  Fees paid professional persons for special or particular

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services or include salary payments made from a faculty practice

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plan authorized by the Board of Governors of the State University

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System for eligible clinical faculty at a college in a state

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university that has with a faculty practice plan; or

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     2.  Any bonuses or other payments prohibited from inclusion

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in the member's average final compensation and defined in

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subsection (47).

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

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121.051, Florida Statutes, is amended to read:

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     121.051  Participation in the system.--

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     (1)  COMPULSORY PARTICIPATION.--

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

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all officers and employees, except elected officers who meet the

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

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

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

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

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

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

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

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in any state retirement system except as provided in s.

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

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

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

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121.122 for all other retirees. Officers and employees of the

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University Athletic Association, Inc., a nonprofit association

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connected with the University of Florida, employed on and after

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

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retirement system.

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

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

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

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University of South Florida which has a faculty practice plan

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

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participate in the Florida Retirement System. Effective July 1,

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2008, any person appointed thereafter to a faculty position,

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including clinical faculty, in a college at a state university

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that has a faculty practice plan authorized by the Board of

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Governors may not participate in the Florida Retirement System. A

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faculty member so appointed shall participate in the optional

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retirement program for the State University System on the basis

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of his or her state-funded compensation, notwithstanding the

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

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

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position" is defined as a position assigned the principal

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responsibility of teaching, research, or public service activities

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or administrative responsibility directly related to the academic

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mission of the college. The term "clinical faculty" is defined as

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a faculty position appointment in conjunction with a professional

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position in a hospital or other clinical environment at a college.

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The term "faculty practice plan" includes professional services to

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patients, institutions, or other parties which are rendered by the

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clinical faculty employed by a college that has a faculty practice

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plan at a state university authorized by the Board of Governors.

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

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

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to that subsection, to read:

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     121.35  Optional retirement program for the State University

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System.--

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     (4)  CONTRIBUTIONS.--

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

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on behalf of each participant in the optional retirement program

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an amount equal to the normal cost portion of the employer

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retirement contribution which would be required if the

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participant were a regular member of the Florida Retirement

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System defined benefit program, plus the portion of the

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

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be assigned to the Retiree Health Insurance Subsidy Trust Fund.

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

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of each participant in the optional program an amount equal to

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10.43 percent of the participant's gross monthly compensation.

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The department shall deduct an amount approved by the Legislature

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

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the contributions to the optional program which is required by

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this paragraph for each participant shall be made by the employer

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to the department, which shall forward the contributions to the

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designated company or companies contracting for payment of

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benefits for the participant under the program. However, such

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contributions paid on behalf of an employee described in

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

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

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annuity contract and notified the department.

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

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

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gross monthly compensation" includes salary payments made to

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eligible clinical faculty from a state university using funds

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provided by a faculty practice plan authorized by the Board of

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Governors of the State University System if:

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     1. There is not any employer contribution from the state

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university to any other retirement program with respect to such

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salary payments; and

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     2. The employer contribution on behalf of the participant

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in the optional retirement program with respect to such salary

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payments is made using funds provided by the faculty practice

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plan.

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

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read:

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     121.355 Community College Optional Retirement Program and

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State University System Optional Retirement Program member

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

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an employee who is a former participant in the Community College

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Optional Retirement Program or the State University System

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Optional Retirement Program and present mandatory participant in

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the Florida Retirement System defined benefit plan may receive

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

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Community College Optional Retirement Program or the State

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University System Optional Retirement Program under the following

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conditions:

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

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representing the actuarial accrued liability for the affected

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period of service. The cost shall be calculated using the

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discount rate and other relevant actuarial assumptions that were

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used to value the Florida Retirement System defined benefit plan

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liabilities in the most recent actuarial valuation. The

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calculation shall include any service already maintained under

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the defined benefit plan in addition to the years under the

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Community College Optional Retirement Program or the State

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University System Optional Retirement Program. The actuarial

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accrued liability of any service already maintained under the

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

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resulting from the calculation. The division shall ensure that

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the transfer sum is prepared using a formula and methodology

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certified by an enrolled actuary.

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

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College Optional Retirement Program account or State University

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System Optional Retirement Program account, subject to the terms

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of the applicable optional retirement program contract, and from

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other employee moneys as necessary, a sum representing the

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actuarial accrued liability immediately following the time of

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such movement, determined assuming that attained service equals

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

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the Community College Optional Retirement Program or State

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University System Optional Retirement Program.

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

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period of mandatory participation in the State University

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Optional Retirement Program or for a period for which a

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distribution was received from the Community College Optional

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Retirement Program or State University System Optional Retirement

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Program.

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

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete everything before the enacting clause

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and insert:

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A bill to be entitled

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An act relating to retirement; amending s. 121.021,

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F.S.; clarifying that the term "compensation" for

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purposes of the benefit retirement program or the

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Public Employee Optional Retirement Program of the

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Florida Retirement System does not include fees or

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salary payments made from a faculty practice plan

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authorized by the Board of Governors of the State

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University System for clinical faculty at a state

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university having a faculty practice plan; amending s.

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121.051, F.S.; requiring that a person appointed to a

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faculty position at a state university having a faculty

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practice plan participate in the optional retirement

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program of the State University System rather than the

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Florida Retirement System; providing definitions;

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

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employee in the optional retirement program to execute

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a contract, not just an annuity contract, with a

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designated company in order for employee contributions

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to be forwarded to the company and for interest to

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accrue; defining the term "participant's gross monthly

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compensation" for purposes of the optional retirement

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program for the State University System; creating s.

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121.355, F.S.; authorizing certain former participants

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in the Community College Optional Retirement Program or

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the State University System Optional Retirement Program

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and present mandatory participants in the Florida

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Retirement System to receive a specified amount of

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service credit under certain conditions; providing a

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specified time period for the election of such

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transfer; limiting certain service credit; providing an

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effective date.

4/14/2008  9:05:00 AM     589-07395-08