Florida Senate - 2009 SB 550
By Senator Aronberg
27-00107-09 2009550__
1 A bill to be entitled
2 An act relating to the Florida Retirement System;
3 amending s. 121.111, F.S.; authorizing additional
4 persons to purchase credit for prior military wartime
5 service; revising the payroll contribution rates for
6 the membership classes of the system; providing a
7 declaration of important state interest; providing an
8 effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Subsection (2) of section 121.111, Florida
13 Statutes, is amended to read:
14 121.111 Credit for military service.—
15 (2)(a) Any member whose initial date of employment is
16 before January 1, 1987, who has military service as defined in
17 s. 121.021(20)(b), and who does not claim such service under
18 subsection (1) may receive creditable service for such military
19 service if:
20 1.(a) The member is vested;
21 2.(b) Creditable service, not to exceed a total of 4 years,
22 is claimed only as service earned in the Regular Class of
23 membership; and
24 3.(c) The member pays into the proper retirement trust fund
25 4 percent of gross salary, based upon his or her first year of
26 salary subsequent to July 1, 1945, that he or she has credit for
27 under this system, plus 4 percent interest thereon compounded
28 annually from the date of first creditable service under this
29 chapter until July 1, 1975, and 6.5 percent interest compounded
30 annually thereafter, until payment is made to the proper
31 retirement trust fund.
32 (b)(d) The member may not receive credit for any wartime
33 military service if the member also receives credit for such
34 service under any federal, state, or local retirement or pension
35 system where “length of service” is a factor in determining the
36 amount of compensation received. However, credit for wartime
37 military service may be received where the member also receives
38 credit under a pension system providing retired pay for
39 nonregular service in the Armed Forces of the United States in
40 accordance with 10 U.S.C. ss. 1331 et seq., as follows:
41 1. Any person whose retirement date under the Florida
42 Retirement System is prior to July 1, 1985, may claim such
43 service at any time, as provided in this subsection, upon
44 payment of contributions and interest as provided in
45 subparagraph (a)3. paragraph (c), with interest computed to the
46 retired member's retirement date. The benefit must shall be
47 recalculated and increased to include the additional service
48 credit granted for such wartime military service, and a lump-sum
49 payment shall be made to the retiree for the amount owed due to
50 the additional service credit, retroactive to the date of
51 retirement.
52 2. Any person whose retirement date is on or after July 1,
53 1985, must claim such service and pay the required
54 contributions, as provided in subparagraph (a)3. paragraph (c),
55 prior to the commencement of his or her retirement benefits, as
56 provided in this subsection.
57 (c)(e) Any member claiming credit under this subsection
58 must certify on the form prescribed by the department that
59 credit for such service has not and will not be claimed for
60 retirement purposes under any other federal, state, or local
61 retirement or pension system where “length of service” is a
62 factor in determining the amount of compensation received,
63 except if where credit for such service has been granted in a
64 pension system providing retired pay for nonregular service as
65 provided in paragraph (b) (d). If the member dies prior to
66 retirement, the member's beneficiary must make the required
67 certification before credit may be claimed. If such
68 certification is not made by the member or the member's
69 beneficiary, credit for wartime military service may shall not
70 be claimed allowed.
71 (d)(f) Service credit awarded for wartime military service
72 equals shall be the total number of years, months, and days from
73 and including the date of entry into active duty through the
74 date of discharge from active duty, up to a maximum of 4 years.
75 If the military service includes a partial year, it must shall
76 be stated as a fraction of a year. Creditable military service
77 must shall be calculated in accordance with rule 60S
78 2.005(2)(j), Florida Administrative Code.
79 Section 2. Effective July 1, 2009, in order to fund the
80 benefits provided by this act:
81 (1) The contribution rate that applies to the Regular Class
82 of the Florida Retirement System is increased by 0.11 percentage
83 points.
84 (2) The contribution rate that applies to the Special Risk
85 Class of the Florida Retirement System is increased by 0.16
86 percentage points.
87 (3) The contribution rate that applies to the Special Risk
88 Administrative Support Class of the Florida Retirement System is
89 increased by 0.21 percentage points.
90 (4) The contribution rate that applies to the Judicial
91 subclass of the Elected Officers' Class of the Florida
92 Retirement System is increased by 0.20 percentage points.
93 (5) The contribution rate that applies to the legislative
94 attorney-Cabinet subclass of the Elected Officers' Class of the
95 Florida Retirement System is increased by 0.19 percentage
96 points.
97 (6) The contribution rate that applies to the County
98 Officers' subclass of the Elected Officers' Class of the Florida
99 Retirement System is increased by 0.22 percentage points.
100 (7) The contribution rate that applies to the Senior
101 Management Service Class of the Florida Retirement System is
102 increased by 0.18 percentage points.
103 These increases are in addition to all other changes to such
104 contribution rates which may be enacted into law to take effect
105 on that date. The Division of Statutory Revision is directed to
106 adjust the contribution rates set forth in ss. 121.052, 121.055,
107 and 121.071, Florida Statutes.
108 Section 3. The Legislature finds that a proper and
109 legitimate state purpose is served when certain employees and
110 retirees of the state and its political subdivisions, and the
111 dependents, survivors, and beneficiaries of such employees and
112 retirees, are extended the basic protections afforded by
113 governmental retirement systems. These persons must be provided
114 benefits that are fair and adequate and that are managed,
115 administered, and funded in an actuarially sound manner, as
116 required by Section 14, Article X of the State Constitution, and
117 part VII of chapter 112, Florida Statutes. Therefore, the
118 Legislature determines and declares that this act fulfills an
119 important state interest.
120 Section 4. This act shall take effect July 1, 2009.