Florida Senate - 2010 SB 198
By Senator Baker
20-00351-10 2010198__
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.0515,
3 F.S.; authorizing certain employees to purchase the
4 retirement credit for past service at a 3 percent
5 Special Risk Class accrual value; providing
6 requirements for calculating the first 2 percent of a
7 member’s average monthly compensation for purposes of
8 purchasing past service credit; providing requirements
9 for purchasing past service credit in excess of 2
10 percent but not to exceed 3 percent of the member’s
11 average monthly compensation; providing requirements
12 for calculating the contribution amount; requiring the
13 contribution for past service credit to be paid
14 immediately upon notification by the Division of
15 Retirement; providing that past service credit may be
16 purchased by the member or by the employer on behalf
17 of the member; providing a declaration of important
18 state interest; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (5) of section 121.0515, Florida
23 Statutes, is amended to read:
24 121.0515 Special risk membership.—
25 (5) CREDIT FOR PAST SERVICE.—A special risk member may
26 purchase retirement credit in the Special Risk Class based upon
27 past service, and may upgrade retirement credit for such past
28 service, to the extent of 3 2 percent of the member’s average
29 monthly compensation as specified in s. 121.091(1)(a) for such
30 service as follows:
31 (a) The member may purchase special risk credit for past
32 service with a city or special district which has elected to
33 join the Florida Retirement System, or with a participating
34 agency to which a member’s governmental unit was transferred,
35 merged, or consolidated as provided in s. 121.081(1)(f), if the
36 member was employed with the city or special district at the
37 time it commenced participating in the Florida Retirement System
38 or with the governmental unit at the time of its transfer,
39 merger, or consolidation with the participating agency. The
40 service must satisfy the criteria set forth in subsection (2)
41 for special risk membership as a law enforcement officer, a
42 firefighter, a or correctional officer, or an emergency medical
43 technician or paramedic whose employer was a licensed advanced
44 life support or basic life support provider; however, no
45 certificate or waiver of certificate of compliance with s.
46 943.1395 or s. 633.35 shall be required for such service.
47 (b) Contributions for upgrading the first 2 percent of the
48 member’s average monthly compensation for the additional special
49 risk credit pursuant to this subsection shall be equal to the
50 difference in the contributions paid and the special risk
51 percentage rate of gross salary in effect at the time of
52 purchase for the period being claimed, plus interest thereon at
53 the rate of 4 percent a year compounded annually from the date
54 of such service until July 1, 1975, and 6.5 percent a year
55 thereafter until the date of payment. This past service may be
56 purchased by the member or by the employer on behalf of the
57 member.
58 (c) Contributions for upgrading additional special risk
59 credit in excess of 2 percent but not to exceed 3 percent of the
60 member’s average monthly compensation shall be an amount
61 representing the actuarial accrued liability for the difference
62 in accrual value during the period of service for which credit
63 is being purchased. Contributions shall be calculated by an
64 actuary designated by the department using the discount rate and
65 other relevant actuarial assumptions that were used to value the
66 Florida Retirement System defined benefit plan liabilities in
67 the most recent actuarial valuation. The contribution for
68 service credit being purchased must be paid by the member or by
69 the employer on behalf of the member immediately upon
70 notification by the division.
71 Section 2. The Legislature finds that a proper and
72 legitimate state purpose is served when employees and retirees
73 of the state and of its political subdivisions, and the
74 dependents, survivors, and beneficiaries of such employees and
75 retirees, are extended the basic protections afforded by
76 governmental retirement systems that provide fair and adequate
77 benefits and that are managed, administered, and funded in an
78 actuarially sound manner as required by s. 14, Article X of the
79 State Constitution and part VII of chapter 112, Florida
80 Statutes. Therefore, the Legislature determines and declares
81 that the provisions of this act fulfill an important state
82 interest.
83 Section 3. This act shall take effect July 1, 2010.