Florida Senate - 2010 CS for SB 198
By the Committee on Governmental Oversight and Accountability;
and Senator Baker
585-05282-10 2010198c1
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 employer to pay the costs for performing the
14 calculation; requiring the contribution for past
15 service credit to be paid immediately upon
16 notification by the Division of Retirement; providing
17 that past service credit may be purchased by the
18 member or by the employer on behalf of the member;
19 providing a declaration of important state interest;
20 providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (5) of section 121.0515, Florida
25 Statutes, is amended to read:
26 121.0515 Special risk membership.—
27 (5) CREDIT FOR PAST SERVICE.—A special risk member may
28 purchase retirement credit in the Special Risk Class based upon
29 past service, and may upgrade retirement credit for such past
30 service, to the extent of 3 2 percent of the member’s average
31 monthly compensation as specified in s. 121.091(1)(a) for such
32 service as follows:
33 (a) The member may purchase special risk credit for past
34 service with a city or special district which has elected to
35 join the Florida Retirement System, or with a participating
36 agency to which a member’s governmental unit was transferred,
37 merged, or consolidated as provided in s. 121.081(1)(f), if the
38 member was employed with the city or special district at the
39 time it commenced participating in the Florida Retirement System
40 or with the governmental unit at the time of its transfer,
41 merger, or consolidation with the participating agency. The
42 service must satisfy the criteria set forth in subsection (2)
43 for special risk membership as a law enforcement officer, a
44 firefighter, a or correctional officer, or an emergency medical
45 technician or paramedic whose employer was a licensed advanced
46 life support or basic life support provider; however, no
47 certificate or waiver of certificate of compliance with s.
48 943.1395 or s. 633.35 shall be required for such service.
49 (b) Contributions for upgrading the first 2 percent of the
50 member’s average monthly compensation for the additional special
51 risk credit pursuant to this subsection shall be equal to the
52 difference in the contributions paid and the special risk
53 percentage rate of gross salary in effect at the time of
54 purchase for the period being claimed, plus interest thereon at
55 the rate of 4 percent a year compounded annually from the date
56 of such service until July 1, 1975, and 6.5 percent a year
57 thereafter until the date of payment. This past service may be
58 purchased by the member or by the employer on behalf of the
59 member.
60 (c) Contributions for upgrading additional special risk
61 credit in excess of 2 percent but not to exceed 3 percent of the
62 member’s average monthly compensation shall be an amount
63 representing the actuarial accrued liability for the difference
64 in accrual value during the period of service for which credit
65 is being purchased. Contributions shall be calculated by an
66 actuary designated by the department using the discount rate and
67 other relevant actuarial assumptions that were used to value the
68 Florida Retirement System defined benefit plan liabilities in
69 the most recent actuarial valuation. Before such calculations
70 are performed, the employer shall pay the division $400 per
71 calculation or all costs associated with an actuarial study to
72 determine the contribution, whichever is higher, regardless of
73 whether the credit upgrade is purchased. The contribution for
74 the service credit being purchased must be paid by the member or
75 by the employer on behalf of the member immediately upon
76 notification by the division.
77 Section 2. The Legislature finds that a proper and
78 legitimate state purpose is served when employees and retirees
79 of the state and of its political subdivisions, and the
80 dependents, survivors, and beneficiaries of such employees and
81 retirees, are extended the basic protections afforded by
82 governmental retirement systems that provide fair and adequate
83 benefits and that are managed, administered, and funded in an
84 actuarially sound manner as required by s. 14, Article X of the
85 State Constitution and part VII of chapter 112, Florida
86 Statutes. Therefore, the Legislature determines and declares
87 that the provisions of this act fulfill an important state
88 interest.
89 Section 3. This act shall take effect July 1, 2010.