CS/HB 551

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.021, F.S.;
3	clarifying that the term "compensation" for purposes of
4	the benefit retirement program or the Public Employee
5	Optional Retirement Program of the Florida Retirement
6	System does not include fees or salary payments made from
7	a faculty practice plan authorized by the Board of
8	Governors of the State University System for clinical
9	faculty at a state university having a faculty practice
10	plan; amending s. 121.051, F.S.; requiring that a person
11	appointed to a faculty position at a state university
12	having a faculty practice plan participate in the optional
13	retirement program of the State University System rather
14	than the Florida Retirement System; providing definitions;
15	amending s. 121.35, F.S.; requiring the participating
16	employee in the optional retirement program to execute a
17	contract, not just an annuity contract, with a designated
18	company in order for employee contributions to be
19	forwarded to the company and for interest to accrue;
20	defining the term "participant's gross monthly
21	compensation" for purposes of the optional retirement
22	program for the State University System; creating s.
23	121.355, F.S.; authorizing certain former participants in
24	the Community College Optional Retirement Program or the
25	State University System Optional Retirement Program and
26	present mandatory participants in the Florida Retirement
27	System to receive a specified amount of service credit
28	under certain conditions; providing a specified time
29	period for the election of such transfer; limiting certain
30	service credit; providing an effective date.
31
32	Be It Enacted by the Legislature of the State of Florida:
33
34	Section 1.  Paragraph (b) of subsection (22) of section
35	121.021, Florida Statutes, is amended to read:
36	121.021  Definitions.--The following words and phrases as
37	used in this chapter have the respective meanings set forth
38	unless a different meaning is plainly required by the context:
39	(22)  "Compensation" means the monthly salary paid a member
40	by his or her employer for work performed arising from that
41	employment.
42	(b)  Under no circumstances shall compensation for a member
43	participating in the defined benefit retirement program or the
44	Public Employee Optional Retirement Program of the Florida
45	Retirement System include:
46	1.  Fees paid professional persons for special or
47	particular services or include salary payments made from a
48	faculty practice plan authorized by the Board of Governors of
49	the State University System for eligible clinical faculty at a
50	college in a state university with a faculty practice plan; or
51	2.  Any bonuses or other payments prohibited from inclusion
52	in the member's average final compensation and defined in
53	subsection (47).
54	Section 2.  Paragraph (a) of subsection (1) of section
55	121.051, Florida Statutes, is amended to read:
56	121.051  Participation in the system.--
57	(1)  COMPULSORY PARTICIPATION.--
58	(a)  The provisions of this law shall be compulsory as to
59	all officers and employees, except elected officers who meet the
60	requirements of s. 121.052(3), who are employed on or after
61	December 1, 1970, of an employer other than those referred to in
62	paragraph (2)(b), and each officer or employee, as a condition
63	of employment, shall become a member of the system as of his or
64	her date of employment, except that a person who is retired from
65	any state retirement system and is reemployed on or after
66	December 1, 1970, may shall not be permitted to renew his or her
67	membership in any state retirement system except as provided in
68	s. 121.091(4)(h) for a person who recovers from disability, and
69	as provided in s. 121.091(9)(b)8. for a person who is elected to
70	public office, and, effective July 1, 1991, as provided in s.
71	121.122 for all other retirees. Officers and employees of the
72	University Athletic Association, Inc., a nonprofit association
73	connected with the University of Florida, employed on and after
74	July 1, 1979, shall not participate in any state-supported
75	retirement system.
76	1.a.  Any person appointed on or after July 1, 1989, to a
77	faculty position in a college at the J. Hillis Miller Health
78	Center at the University of Florida or the Medical Center at the
79	University of South Florida which has a faculty practice plan
80	provided by rule adopted by the Board of Regents may shall not
81	participate in the Florida Retirement System. Effective July 1,
82	2008, any person appointed thereafter to a faculty position,
83	including clinical faculty, in a college at a state university
84	that has a faculty practice plan authorized by the Board of
85	Governors may not participate in the Florida Retirement System.
86	A faculty member so appointed shall participate in the optional
87	retirement program for the State University System on the basis
88	of his or her state-funded compensation, notwithstanding the
89	provisions of s. 121.35(2)(a).
90	b.  For purposes of this subparagraph, the term "faculty
91	position" is defined as a position assigned the principal
92	responsibility of teaching, research, or public service
93	activities or administrative responsibility directly related to
94	the academic mission of the college. The term "clinical faculty"
95	is defined as a faculty position appointment in conjunction with
96	a professional position in a hospital or other clinical
97	environment at a college. The term "faculty practice plan"
98	includes professional services to patients, institutions, or
99	other parties which are rendered by the clinical faculty
100	employed by a college with a faculty practice plan at a state
101	university authorized by the Board of Governors.
102	Section 3.  Paragraph (a) of subsection (4) of section
103	121.35, Florida Statutes, is amended, and paragraph (g) is added
104	to that subsection, to read:
105	121.35  Optional retirement program for the State
106	University System.--
107	(4)  CONTRIBUTIONS.--
108	(a)  Through June 30, 2001, each employer shall contribute
109	on behalf of each participant in the optional retirement program
110	an amount equal to the normal cost portion of the employer
111	retirement contribution which would be required if the
112	participant were a regular member of the Florida Retirement
113	System defined benefit program, plus the portion of the
114	contribution rate required in s. 112.363(8) that would otherwise
115	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
116	Effective July 1, 2001, each employer shall contribute on behalf
117	of each participant in the optional program an amount equal to
118	10.43 percent of the participant's gross monthly compensation.
119	The department shall deduct an amount approved by the
120	Legislature to provide for the administration of this program.
121	The payment of the contributions to the optional program which
122	is required by this paragraph for each participant shall be made
123	by the employer to the department, which shall forward the
124	contributions to the designated company or companies contracting
125	for payment of benefits for the participant under the program.
126	However, such contributions paid on behalf of an employee
127	described in paragraph (3)(c) shall not be forwarded to a
128	company and shall not begin to accrue interest until the
129	employee has executed a an annuity contract and notified the
130	department.
131	(g)  Effective July 1, 2008, for purposes of paragraph (a)
132	and notwithstanding s. 121.021(22)(b)1., the term "participant's
133	gross monthly compensation" includes salary payments made to
134	eligible clinical faculty from a state university using funds
135	provided by a faculty practice plan authorized by the Board of
136	Governors of the State University System if:
137	1.  There is not any employer contribution from the state
138	university to any other retirement program with respect to such
139	salary payments; and
140	2.  The employer contribution on behalf of the participant
141	in the optional retirement program with respect to such salary
142	payments is made using funds provided by the faculty practice
143	plan.
144	Section 4.  Section 121.355, Florida Statutes, is created
145	to read:
146	121.355  Community College Optional Retirement Program and
147	State University System Optional Retirement Program member
148	transfer.--Effective January 1, 2009, through December 31, 2009,
149	an employee who is a former participant in the Community College
150	Optional Retirement Program or the State University System
151	Optional Retirement Program and present mandatory participant in
152	the Florida Retirement System defined benefit plan may receive
153	service credit equal to his or her years of service under the
154	Community College Optional Retirement Program or the State
155	University System Optional Retirement Program under the
156	following conditions:
157	(1)  The cost for such credit shall be an amount
158	representing the actuarial accrued liability for the affected
159	period of service. The cost shall be calculated using the
160	discount rate and other relevant actuarial assumptions that were
161	used to value the Florida Retirement System defined benefit plan
162	liabilities in the most recent actuarial valuation. The
163	calculation shall include any service already maintained under
164	the defined benefit plan in addition to the years under the
165	Community College Optional Retirement Program or the State
166	University System Optional Retirement Program. The actuarial
167	accrued liability of any service already maintained under the
168	defined benefit plan shall be applied as a credit to total cost
169	resulting from the calculation. The division shall ensure that
170	the transfer sum is prepared using a formula and methodology
171	certified by an enrolled actuary.
172	(2)  The employee must transfer from his or her Community
173	College Optional Retirement Program account or State University
174	System Optional Retirement Program account, subject to the terms
175	of the applicable optional retirement program contract, and from
176	other employee moneys as necessary, a sum representing the
177	actuarial accrued liability immediately following the time of
178	such movement, determined assuming that attained service equals
179	the sum of service in the defined benefit program and service in
180	the Community College Optional Retirement Program or State
181	University System Optional Retirement Program.
182	(3)  The employee may not receive service credit for a
183	period of mandatory participation in the State University
184	Optional Retirement Program or for a period for which a
185	distribution was received from the Community College Optional
186	Retirement Program or State University System Optional
187	Retirement Program.
188	Section 5.  This act shall take effect July 1, 2008.

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