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A bill to be entitled

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An act relating to the Florida Retirement System; amending

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s. 121.052, F.S.; specifying that the election to

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participate as members in the Senior Management Service

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Class by certain elected officers shall have no effect on

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the statutory limit on the number of nonelective full-time

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positions that may be designated for inclusion within the

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Senior Management Service Class; amending s. 121.055,

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F.S.; authorizing designation of a certain number of

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nonelective full-time positions for certain school

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districts for inclusion within the Senior Management

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Service Class; providing an effective date.

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

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     Section 1.  Paragraph (c) of subsection (3) of section

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121.052, Florida Statutes, is amended to read:

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     121.052  Membership class of elected officers.--

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     (3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective

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July 1, 1990, participation in the Elected Officers' Class shall

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be compulsory for elected officers listed in paragraphs (2)(a)-

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(d) and (f) assuming office on or after said date, unless the

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elected officer elects membership in another class or withdraws

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from the Florida Retirement System as provided in paragraphs

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(3)(a)-(d):

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     (c)  Any elected officer may, within 6 months after assuming

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office, or within 6 months after this act becomes a law for

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serving elected officers, elect membership in the Senior

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Management Service Class as provided in s. 121.055 in lieu of

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membership in the Elected Officers' Class. Any such election made

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by a county elected officer shall have no effect upon the

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statutory limit on the number of nonelective full-time positions

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that may be designated by a local agency employer or a specified

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school district for inclusion in the Senior Management Service

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Class under s. 121.055(1)(b)1.

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

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121.055, Florida Statutes, is amended to read:

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     121.055  Senior Management Service Class.--There is hereby

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established a separate class of membership within the Florida

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Retirement System to be known as the "Senior Management Service

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Class," which shall become effective February 1, 1987.

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     (1)

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     (b)1.  Except as provided in subparagraph 2., effective

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January 1, 1990, participation in the Senior Management Service

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Class shall be compulsory for the president of each community

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college, the manager of each participating city or county, and

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all appointed district school superintendents. Effective January

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1, 1994, additional positions may be designated for inclusion in

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the Senior Management Service Class of the Florida Retirement

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System, provided that:

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     a.  Positions to be included in the class shall be

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designated by the local agency employer. Notice of intent to

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designate positions for inclusion in the class shall be published

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once a week for 2 consecutive weeks in a newspaper of general

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circulation published in the county or counties affected, as

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provided in chapter 50.

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     b.  Up to 10 nonelective full-time positions may be

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designated for each local agency employer reporting to the

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Department of Management Services, and up to 15 nonelective full-

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time positions may be designated for school districts serving as

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the fiscal agent for a regional consortium service organization

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as established pursuant to s. 1001.451; for local agencies with

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100 or more regularly established positions, additional

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nonelective full-time positions may be designated, not to exceed

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1 percent of the regularly established positions within the

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agency.

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     c.  Each position added to the class must be a managerial or

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policymaking position filled by an employee who is not subject to

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continuing contract and serves at the pleasure of the local

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agency employer without civil service protection, and who:

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     (I)  Heads an organizational unit; or

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     (II)  Has responsibility to effect or recommend personnel,

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budget, expenditure, or policy decisions in his or her areas of

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responsibility.

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     2.  In lieu of participation in the Senior Management

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Service Class, members of the Senior Management Service Class

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pursuant to the provisions of subparagraph 1. may withdraw from

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the Florida Retirement System altogether. The decision to

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withdraw from the Florida Retirement System shall be irrevocable

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for as long as the employee holds such a position. Any service

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creditable under the Senior Management Service Class shall be

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retained after the member withdraws from the Florida Retirement

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System; however, additional service credit in the Senior

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Management Service Class shall not be earned after such

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withdrawal. Such members shall not be eligible to participate in

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the Senior Management Service Optional Annuity Program.

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     3.  Effective January 1, 2006, through June 30, 2006, an

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employee who has withdrawn from the Florida Retirement System

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under subparagraph 2. has one opportunity to elect to participate

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in either the defined benefit program or the Public Employee

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Optional Retirement Program of the Florida Retirement System.

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     a.  If the employee elects to participate in the Public

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Employee Optional Retirement Program, membership shall be

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prospective, and the applicable provisions of s. 121.4501(4)

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shall govern the election.

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     b.  If the employee elects to participate in the defined

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benefit program of the Florida Retirement System, the employee

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shall, upon payment to the system trust fund of the amount

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calculated under sub-sub-subparagraph (I), receive service credit

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for prior service based upon the time during which the employee

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had withdrawn from the system.

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     (I)  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 period of withdrawal.

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The actuarial accrued liability attributable to any service

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already maintained under the defined benefit plan shall be

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applied as a credit to the total cost resulting from the

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calculation. The division shall ensure that the transfer sum is

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prepared using a formula and methodology certified by an actuary.

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     (II)  The employee must transfer a sum representing the net

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cost owed for the actuarial accrued liability in sub-sub-

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subparagraph (I) immediately following the time of such movement,

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determined assuming that attained service equals the sum of

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service in the defined benefit program and the period of

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withdrawal.

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