HB 5607

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.71, F.S.;
3	revising the payroll contribution rates for the membership
4	classes of the Florida Retirement System for the state
5	fiscal years effective July 1, 2010, and July 1, 2011;
6	deleting a provision providing for recognition and usage
7	of current available excess assets of the Florida
8	Retirement System Trust Fund to offset employer
9	contribution rates for the Florida Retirement System;
10	requiring the state actuary to consider additional factors
11	when conducting the annual actuarial study of the Florida
12	Retirement System; specifying the factors to be
13	considered; providing a declaration of important state
14	interest; providing an effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Section 121.71, Florida Statutes, is amended to
19	read:
20	121.71  Uniform rates; process; calculations; levy.-
21	(1)  In conducting the system actuarial study required
22	under s. 121.031, the actuary shall follow all requirements
23	specified thereunder to determine, by Florida Retirement System
24	employee membership class, the dollar contribution amounts
25	necessary for the forthcoming fiscal year for the defined
26	benefit program. In addition, the actuary shall determine, by
27	Florida Retirement System membership class, based on an estimate
28	for the forthcoming fiscal year of the gross compensation of
29	employees participating in the optional retirement program, the
30	dollar contribution amounts necessary to make the allocations
31	required under ss. 121.72 and 121.73. For each employee
32	membership class and subclass, the actuarial study shall
33	establish a uniform rate necessary to fund the benefit
34	obligations under both Florida Retirement System retirement
35	plans by dividing the sum of total dollars required by the
36	estimated gross compensation of members in both plans.
37	(2)  Based on the uniform rates set forth in subsection
38	(3), employers shall make monthly contributions to the Division
39	of Retirement, which shall initially deposit the funds into the
40	Florida Retirement System Contributions Clearing Trust Fund. A
41	change in a contribution rate is effective the first day of the
42	month for which a full month's employer contribution may be made
43	on or after the beginning date of the change.
44	(3)  Required employer retirement contribution rates for
45	each membership class and subclass of the Florida Retirement
46	System for both retirement plans are as follows:
47
	Membership Class Percentage of Gross Compensation,Effective July 1, 2010 2009 Percentage of Gross Compensation,Effective July 1, 2011 2010
48
	Regular Class 9.76% 8.69% 11.34% 9.63%
49
	Special Risk Class 22.15% 19.76% 28.12% 22.11%
50
	Special Risk  Administrative  Support Class 11.24% 11.39% 27.21% 12.10%
51
	Elected Officers' Class-  Legislators, Governor,  Lt. Governor,  Cabinet Officers,  State Attorneys,  Public Defenders 14.38% 13.32% 31.43% 15.20%
52
	Elected Officers' Class-  Justices, Judges 19.39% 18.40% 30.39% 20.65%
53
	Elected Officers' Class-  County Elected Officers 16.62% 15.37% 36.37% 17.50%
54
	Senior Management Class 11.70% 11.96% 20.97% 13.43%
55
	DROP 14.23% 9.80% 19.20% 11.14%
56
57	(4)  The state actuary shall recognize and use an
58	appropriate level of available excess assets of the Florida
59	Retirement System Trust Fund to offset the difference between
60	the normal costs of the Florida Retirement System and the
61	statutorily prescribed contribution rates.
62	Section 2.  As part of the actuarial study required by s.
63	121.031(3), Florida Statutes, based on the results of June 30,
64	2010, the administrator of the Florida Retirement System shall
65	contract with the state actuary to conduct an actuarial study of
66	the Florida Retirement System which considers the following
67	methods of funding the Deferred Retirement Option Program:
68	(1)  Through a separate contribution rate regardless of the
69	participant's membership class, which had been the principle
70	method through the 2009 valuation;
71	(2)  Treat participants as retirees such that the payroll
72	associated with the participants is not used to develop the
73	contribution rates for the respective membership class, and the
74	employer is not required to make contributions on such payroll
75	except for unfunded actuarial liability contributions; and
76	(3)  Treat participants as active members such that the
77	payroll associated with the participants is used to develop the
78	contribution rates for the respective membership class, and the
79	employer is required to make contributions on the payroll at the
80	same contribution rate as the employer pays for an active member
81	of the applicable class.
82	Section 3.  The Legislature finds that a proper and
83	legitimate state purpose is served when employees and retirees
84	of the state and its political subdivisions, and the dependents,
85	survivors, and beneficiaries of such employees and retirees, are
86	extended the basic protections afforded by governmental
87	retirement systems. These persons must be provided benefits that
88	are fair and adequate and that are managed, administered, and
89	funded in an actuarially sound manner, as required by s. 14,
90	Article X of the State Constitution and part VII of chapter 112,
91	Florida Statutes. Therefore, the Legislature determines and
92	declares that this act fulfills an important state interest.
93	Section 4.  This act shall take effect July 1, 2010.

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