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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. 121.111, F.S.; authorizing additional persons to

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purchase credit for prior military wartime service;

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revising the payroll contribution rates for the membership

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classes of the system; providing a declaration of

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important state interest; 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.  Subsection (2) of section 121.111, Florida

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Statutes, is amended to read:

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     121.111  Credit for military service.--

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     (2)(a) Any member whose initial date of employment is

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before January 1, 1987, who has military service as defined in s.

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121.021(20)(b), and who does not claim such service under

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subsection (1) may receive creditable service for such military

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service if:

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     1.(a) The member is vested;

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     2.(b) Creditable service, not to exceed a total of 4 years,

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is claimed only as service earned in the Regular Class of

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membership; and

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     3.(c) The member pays into the proper retirement trust fund

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4 percent of gross salary, based upon his or her first year of

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salary subsequent to July 1, 1945, that he or she has credit for

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under this system, plus 4 percent interest thereon compounded

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annually from the date of first creditable service under this

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chapter until July 1, 1975, and 6.5 percent interest compounded

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annually thereafter, until payment is made to the proper

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retirement trust fund.

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     (b)(d) The member may not receive credit for any wartime

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military service if the member also receives credit for such

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service under any federal, state, or local retirement or pension

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system where "length of service" is a factor in determining the

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amount of compensation received. However, credit for wartime

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military service may be received where the member also receives

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credit under a pension system providing retired pay for

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nonregular service in the Armed Forces of the United States in

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accordance with 10 U.S.C. ss. 1331 et seq., as follows:

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     1.  Any person whose retirement date under the Florida

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Retirement System is prior to July 1, 1985, may claim such

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service at any time, as provided in this subsection, upon payment

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of contributions and interest as provided in subparagraph (a)3.

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paragraph (c), with interest computed to the retired member's

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retirement date. The benefit shall be recalculated and increased

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to include the additional service credit granted for such wartime

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military service, and a lump-sum payment shall be made to the

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retiree for the amount owed due to the additional service credit,

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retroactive to the date of retirement.

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     2.  Any person whose retirement date is on or after July 1,

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1985, must claim such service and pay the required contributions,

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as provided in subparagraph (a)3. paragraph (c), prior to the

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commencement of his or her retirement benefits, as provided in

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this subsection.

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     (c)(e) Any member claiming credit under this subsection

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must certify on the form prescribed by the department that credit

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for such service has not and will not be claimed for retirement

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purposes under any other federal, state, or local retirement or

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pension system where "length of service" is a factor in

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determining the amount of compensation received, except where

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credit for such service has been granted in a pension system

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providing retired pay for nonregular service as provided in

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paragraph (b) (d). If the member dies prior to retirement, the

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member's beneficiary must make the required certification before

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credit may be claimed. If such certification is not made by the

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member or the member's beneficiary, credit for wartime military

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service shall not be allowed.

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     (d)(f) Service credit awarded for wartime military service

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shall be the total number of years, months, and days from and

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including the date of entry into active duty through the date of

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discharge from active duty, up to a maximum of 4 years. If the

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military service includes a partial year, it shall be stated as a

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fraction of a year. Creditable military service shall be

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calculated in accordance with rule 60S-2.005(2)(j), Florida

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Administrative Code.

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     Section 2. Effective July 1, 2008, in order to fund the

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benefits provided by this act:

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     (1) The contribution rate that applies to the Regular Class

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of the Florida Retirement System shall be increased by 0.11

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percentage points.

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     (2) The contribution rate that applies to the Special Risk

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Class of the Florida Retirement System shall be increased by 0.16

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percentage points.

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     (3) The contribution rate that applies to the Special Risk

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Administrative Support Class of the Florida Retirement System

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shall be increased by 0.21 percentage points.

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     (4) The contribution rate that applies to the Judicial

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subclass of the Elected Officers' Class of the Florida Retirement

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System shall be increased by 0.20 percentage points.

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     (5) The contribution rate that applies to the legislative-

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attorney-Cabinet subclass of the Elected Officers' Class of the

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Florida Retirement System shall be increased by 0.19 percentage

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points.

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     (6) The contribution rate that applies to the County

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Officers' subclass of the Elected Officers' Class of the Florida

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Retirement System shall be increased by 0.22 percentage points.

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     (7) The contribution rate that applies to the Senior

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Management Service Class of the Florida Retirement System shall

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be increased by 0.18 percentage points.

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These increases shall be in addition to all other changes to such

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contribution rates which may be enacted into law to take effect

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on that date. The Division of Statutory Revision is directed to

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adjust the contribution rates set forth in sections 121.052,

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121.055, and 121.071, Florida Statutes.

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     Section 3. The Legislature finds that a proper and

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legitimate state purpose is served when employees and retirees of

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the state and its political subdivisions, and the dependents,

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survivors, and beneficiaries of such employees and retirees, are

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extended the basic protections afforded by governmental

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retirement systems. These persons must be provided benefits that

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

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

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

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Florida Statutes. Therefore, the Legislature determines and

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declares that this act fulfills an important state interest.

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     Section 4.  This act shall take effect July 1, 2008.