Amendment
Bill No. HB 5063

Amendment No. 011303

CHAMBER ACTION
Senate		House
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1	The Conference Committee on HB 5063 offered the following:
2
3	Conference Committee Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Subsection (7) of section 112.625, Florida
6	Statutes, is amended to read:
7	112.625  Definitions.--As used in this act:
8	(7)  "Statement value" means the value of assets in
9	accordance with s. 302(c)(2) of the Employee Retirement Income
10	Security Act of 1974 and as permitted under regulations
11	prescribed by the Secretary of the Treasury as amended by Pub.
12	L. No. 100-203, as such sections are in effect on August 16,
13	2006. Assets for which a fair market value is not provided shall
14	be excluded from the assets used in the determination of annual
15	funding cost.
16	Section 2.  Paragraph (b) of subsection (22) of section
17	121.021, Florida Statutes, is amended to read:
18	121.021  Definitions.--The following words and phrases as
19	used in this chapter have the respective meanings set forth
20	unless a different meaning is plainly required by the context:
21	(22)  "Compensation" means the monthly salary paid a member
22	by his or her employer for work performed arising from that
23	employment.
24	(b)  Under no circumstances shall compensation for a member
25	participating in the defined benefit retirement program or the
26	Public Employee Optional Retirement Program of the Florida
27	Retirement System include:
28	1.  Fees paid professional persons for special or
29	particular services or include salary payments made from a
30	faculty practice plan authorized by the Board of Governors of
31	the State University System for eligible clinical faculty at a
32	college in a state university that has with a faculty practice
33	plan; or
34	2.  Any bonuses or other payments prohibited from inclusion
35	in the member's average final compensation and defined in
36	subsection (47).
37	Section 3.  Paragraph (a) of subsection (3) of section
38	121.031, Florida Statutes, is amended to read:
39	121.031  Administration of system; appropriation; oaths;
40	actuarial studies; public records.--
41	(3)  The administrator shall cause an actuarial study of
42	the system to be made at least annually and shall report the
43	results of such study to the Legislature by December 31 prior to
44	the next legislative session. The study shall, at a minimum,
45	conform to the requirements of s. 112.63, with the following
46	exceptions and additions:
47	(a)  The valuation of plan assets shall be based on a 5-
48	year averaging methodology such as that specified in the United
49	States Department of Treasury Regulations, 26 C.F.R. s.
50	1.412(c)(2)-1 in effect on August 16, 2006, or a similar
51	accepted approach designed to attenuate fluctuations in asset
52	values.
53	Section 4.  Paragraph (a) of subsection (1) of section
54	121.051, Florida Statutes, is amended to read:
55	121.051  Participation in the system.--
56	(1)  COMPULSORY PARTICIPATION.--
57	(a)  The provisions of this law shall be compulsory as to
58	all officers and employees, except elected officers who meet the
59	requirements of s. 121.052(3), who are employed on or after
60	December 1, 1970, of an employer other than those referred to in
61	paragraph (2)(b), and each officer or employee, as a condition
62	of employment, shall become a member of the system as of his or
63	her date of employment, except that a person who is retired from
64	any state retirement system and is reemployed on or after
65	December 1, 1970, may shall not be permitted to renew his or her
66	membership in any state retirement system except as provided in
67	s. 121.091(4)(h) for a person who recovers from disability, and
68	as provided in s. 121.091(9)(b)8. for a person who is elected to
69	public office, and, effective July 1, 1991, as provided in s.
70	121.122 for all other retirees. Officers and employees of the
71	University Athletic Association, Inc., a nonprofit association
72	connected with the University of Florida, employed on and after
73	July 1, 1979, shall not participate in any state-supported
74	retirement system.
75	1.  Any person appointed on or after July 1, 1989, to a
76	faculty position in a college at the J. Hillis Miller Health
77	Center at the University of Florida or the Medical Center at the
78	University of South Florida which has a faculty practice plan
79	provided by rule adopted by the Board of Regents may shall not
80	participate in the Florida Retirement System. Effective July 1,
81	2008, any person appointed thereafter to a faculty position,
82	including clinical faculty, in a college at a state university
83	that has a faculty practice plan authorized by the Board of
84	Governors may not participate in the Florida Retirement System.
85	A faculty member so appointed shall participate in the optional
86	retirement program for the State University System on the basis
87	of his or her state-funded compensation, notwithstanding the
88	provisions of s. 121.35(2)(a).
89	2.  For purposes of this subparagraph, the term "faculty
90	position" is defined as a position assigned the principal
91	responsibility of teaching, research, or public service
92	activities or administrative responsibility directly related to
93	the academic mission of the college. The term "clinical faculty"
94	is defined as a faculty position appointment in conjunction with
95	a professional position in a hospital or other clinical
96	environment at a college. The term "faculty practice plan"
97	includes professional services to patients, institutions, or
98	other parties which are rendered by the clinical faculty employed
99	by a college that has a faculty practice plan at a state
100	university authorized by the Board of Governors.
101	Section 5.  Paragraph (a) of subsection (4) of section
102	121.35, Florida Statutes, is amended, and paragraph (g) is added
103	to that subsection, to read:
104	121.35  Optional retirement program for the State
105	University System.--
106	(4)  CONTRIBUTIONS.--
107	(a)  Through June 30, 2001, each employer shall contribute
108	on behalf of each participant in the optional retirement program
109	an amount equal to the normal cost portion of the employer
110	retirement contribution which would be required if the
111	participant were a regular member of the Florida Retirement
112	System defined benefit program, plus the portion of the
113	contribution rate required in s. 112.363(8) that would otherwise
114	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
115	Effective July 1, 2001, each employer shall contribute on behalf
116	of each participant in the optional program an amount equal to
117	10.43 percent of the participant's gross monthly compensation.
118	The department shall deduct an amount approved by the
119	Legislature to provide for the administration of this program.
120	The payment of the contributions to the optional program which
121	is required by this paragraph for each participant shall be made
122	by the employer to the department, which shall forward the
123	contributions to the designated company or companies contracting
124	for payment of benefits for the participant under the program.
125	However, such contributions paid on behalf of an employee
126	described in paragraph (3)(c) shall not be forwarded to a
127	company and shall not begin to accrue interest until the
128	employee has executed a an annuity contract and notified the
129	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 6.  Section 121.355, Florida Statutes, is created
144	to 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
155	following 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
186	Retirement Program.
187	Section 7.  Subsection (3) of section 121.71, Florida
188	Statutes, is amended to read:
189	121.71  Uniform rates; process; calculations; levy.--
190	(3)  Required employer retirement contribution rates for
191	each membership class and subclass of the Florida Retirement
192	System for both retirement plans are as follows:
193
	Membership Class Percentage of Gross Compensation,Effective July 1, 2008 2007 Percentage of Gross Compensation,Effective July 1, 2009 2008
194
	Regular Class 8.69% 9.60% 9.59%
195
	Special Risk Class 19.76% 22.03% 22.01%
196
	Special Risk Administrative   Support Class 11.39% 11.98% 11.90%
197
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor,   Cabinet Officers,   State Attorneys,   Public Defenders 13.32% 14.56% 14.99%
198
	Elected Officers' Class -  Justices, Judges 18.40% 20.37% 20.46%
199
	Elected Officers' Class -  County Elected Officers 15.37% 17.06% 17.15%
200
	Senior Management Class 11.96% 13.36% 13.35%
201
	DROP 9.80% 10.96% 10.89%
202
203	Section 8.  The Legislature finds that a proper and
204	legitimate state purpose is served when employees and retirees
205	of the state and its political subdivisions, and the dependents,
206	survivors, and beneficiaries of such employees and retirees, are
207	extended the basic protections afforded by governmental
208	retirement systems. These persons must be provided benefits that
209	are fair and adequate and that are managed, administered, and
210	funded in an actuarially sound manner, as required by Section
211	14, Article X of the State Constitution, and part VII of chapter
212	112, Florida Statutes. Therefore, the Legislature determines and
213	declares that this act fulfills an important state interest.
214	Section 9.  This act shall take effect July 1, 2008.
215
216	-----------------------------------------------------
217	T I T L E  A M E N D M E N T
218	Remove the entire title and insert:
219	A bill to be entitled
220	An act relating to retirement; amending s. 112.625, F.S.;
221	revising the definition of the term "statement value";
222	amending s. 121.021, F.S.; clarifying that the term
223	"compensation" for purposes of the benefit retirement
224	program or the Public Employee Optional Retirement Program
225	of the Florida Retirement System does not include fees or
226	salary payments made from a faculty practice plan
227	authorized by the Board of Governors of the State
228	University System for clinical faculty at a state
229	university having a faculty practice plan; amending s.
230	121.031, F.S.; revising requirements relating to the
231	actuarial study of the system; amending s. 121.051, F.S.;
232	requiring that a person appointed to a faculty position at
233	a state university having a faculty practice plan
234	participate in the optional retirement program of the
235	State University System rather than the Florida Retirement
236	System; providing definitions; amending s. 121.35, F.S.;
237	requiring the participating employee in the optional
238	retirement program to execute a contract, not just an
239	annuity contract, with a designated company in order for
240	employee contributions to be forwarded to the company and
241	for interest to accrue; defining the term "participant's
242	gross monthly compensation" for purposes of the optional
243	retirement program for the State University System;
244	creating s. 121.355, F.S.; authorizing certain former
245	participants in the Community College Optional Retirement
246	Program or the State University System Optional Retirement
247	Program and present mandatory participants in the Florida
248	Retirement System to receive a specified amount of service
249	credit under certain conditions; amending s. 121.71, F.S.;
250	revising the payroll contribution rates for the membership
251	classes of the Florida Retirement System for the state
252	fiscal years effective July 1, 2008, and July 1, 2009;
253	providing a declaration of important state interest;
254	providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.