ENROLLED
2013 Legislature SB 1810, 1st Engrossed
20131810er
1
2 An act relating to the Florida Retirement System;
3 amending ss. 112.363, 121.052, 121.055, and 121.071,
4 F.S.; revising the employer contribution rates for the
5 retiree health insurance subsidy; amending s. 121.71,
6 F.S.; revising the required employer retirement
7 contribution rates for members of each membership
8 class and subclass of the Florida Retirement System;
9 providing findings of an important state interest;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (g) is added to subsection (8) of
15 section 112.363, Florida Statutes, to read:
16 112.363 Retiree health insurance subsidy.—
17 (8) CONTRIBUTIONS.—For purposes of funding the insurance
18 subsidy provided by this section:
19 (g) Beginning July 1, 2013, the employer of each member of
20 a state-administered plan shall contribute 1.20 percent of gross
21 compensation each pay period.
22
23 Such contributions shall be submitted to the Department of
24 Management Services and deposited in the Retiree Health
25 Insurance Subsidy Trust Fund.
26 Section 2. Paragraph (d) of subsection (7) of section
27 121.052, Florida Statutes, is amended to read:
28 121.052 Membership class of elected officers.—
29 (7) CONTRIBUTIONS.—
30 (d) The following table states the required employer
31 contribution on behalf of each member of the Elected Officers’
32 Class in terms of a percentage of the member’s gross
33 compensation. Such contribution constitutes the entire health
34 insurance subsidy contribution with respect to each such member.
35 A change in the contribution rate is effective with the first
36 salary paid on or after the beginning date of the change. The
37 retiree health insurance subsidy contribution rate is as
38 follows:
39 Dates of Contribution Rate Changes ContributionRate
40 October 1, 1987, through December 31, 1988 0.24%
41 January 1, 1989, through December 31, 1993 0.48%
42 January 1, 1994, through December 31, 1994 0.56%
43 January 1, 1995, through June 30, 1998 0.66%
44 July 1, 1998, through June 30, 2001 0.94%
45 Effective July 1, 2001, through June 30, 2013 1.11%
46 Effective July 1, 2013 1.20%
47 Such contributions and accompanying payroll data are due and
48 payable no later than the 5th working day of the month
49 immediately following the month during which the payroll period
50 ended and shall be deposited by the administrator in the Retiree
51 Health Insurance Subsidy Trust Fund.
52 Section 3. Paragraph (d) of subsection (3) of section
53 121.055, Florida Statutes, is amended to read:
54 121.055 Senior Management Service Class.—There is hereby
55 established a separate class of membership within the Florida
56 Retirement System to be known as the “Senior Management Service
57 Class,” which shall become effective February 1, 1987.
58 (3)
59 (d) The following table states the required employer
60 contribution on behalf of each member of the Senior Management
61 Service Class in terms of a percentage of the member’s gross
62 compensation. Such contribution constitutes the entire health
63 insurance subsidy contribution with respect to each such member.
64 A change in the contribution rate is effective with the first
65 salary paid on or after the beginning date of the change. The
66 retiree health insurance subsidy contribution rate is as
67 follows:
68 Dates of Contribution Rate Changes ContributionRate
69 October 1, 1987, through December 31, 1988 0.24%
70 January 1, 1989, through December 31, 1993 0.48%
71 January 1, 1994, through December 31, 1994 0.56%
72 January 1, 1995, through June 30, 1998 0.66%
73 July 1, 1998, through June 30, 2001 0.94%
74 Effective July 1, 2001, through June 30, 2013 1.11%
75 Effective July 1, 2013 1.20%
76 Such contributions and accompanying payroll data are due and
77 payable no later than the 5th working day of the month
78 immediately following the month during which the payroll period
79 ended and shall be deposited by the administrator in the Retiree
80 Health Insurance Subsidy Trust Fund.
81 Section 4. Subsection (4) of section 121.071, Florida
82 Statutes, is amended to read:
83 121.071 Contributions.—Contributions to the system shall be
84 made as follows:
85 (4) The following table states the required employer
86 contribution on behalf of each member of the Regular Class,
87 Special Risk Class, or Special Risk Administrative Support Class
88 in terms of a percentage of the member’s gross compensation.
89 Such contribution constitutes the entire health insurance
90 subsidy contribution with respect to each such member. A change
91 in the contribution rate is effective with the first salary paid
92 on or after the beginning date of the change. The retiree health
93 insurance subsidy contribution rate is as follows:
94 Dates of Contribution Rate Changes ContributionRate
95 October 1, 1987, through December 31, 1988 0.24%
96 January 1, 1989, through December 31, 1993 0.48%
97 January 1, 1994, through December 31, 1994 0.56%
98 January 1, 1995, through June 30, 1998 0.66%
99 July 1, 1998, through June 30, 2001 0.94%
100 Effective July 1, 2001, through June 30, 2013 1.11%
101 Effective July 1, 2013 1.20%
102 Such contributions shall be deposited by the administrator in
103 the Retiree Health Insurance Subsidy Trust Fund.
104 Section 5. Subsections (4) and (5) of section 121.71,
105 Florida Statutes, are amended to read:
106 121.71 Uniform rates; process; calculations; levy.—
107 (4) Required employer retirement contribution rates for
108 each membership class and subclass of the Florida Retirement
109 System for both retirement plans are as follows:
110 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
111 Regular Class 3.55% 3.53% 3.55%
112 Special Risk Class 11.01% 11.00% 11.01%
113 Special Risk Administrative Support Class 3.94% 4.17% 3.94%
114 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.51% 6.52% 6.51%
115 Elected Officers’ Class— Justices, Judges 10.02% 10.05% 10.02%
116 Elected Officers’ Class— County Elected Officers 8.36% 8.44% 8.36%
117 Senior Management Class 4.84% 4.81% 4.84%
118 DROP 4.33% 4.63% 4.33%
119 (5) In order to address unfunded actuarial liabilities of
120 the system, the required employer retirement contribution rates
121 for each membership class and subclass of the Florida Retirement
122 System for both retirement plans are as follows:
123 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
124 Regular Class 0.49% 2.19% 2.02%
125 Special Risk Class 2.75% 6.83% 7.03%
126 Special Risk Administrative Support Class 0.83% 30.56% 27.04%
127 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.88% 24.85% 27.18%
128 Elected Officers’ Class— Justices, Judges 0.77% 17.00% 16.38%
129 Elected Officers’ Class— County Elected Officers 0.73% 23.36% 23.01%
130 Senior Management Service Class 0.32% 12.27% 11.25%
131 DROP 0.00% 7.01% 6.21%
132 Section 6. The Legislature finds that a proper and
133 legitimate state purpose is served when employees, officers, and
134 retirees of the state and its political subdivisions, and the
135 dependents, survivors, and beneficiaries of such employees,
136 officers, and retirees, are extended the basic protections
137 afforded by governmental retirement systems. These persons must
138 be provided benefits that are fair and adequate and that are
139 managed, administered, and funded in an actuarially sound
140 manner, as required by s. 14, Article X of the State
141 Constitution and part VII of chapter 112, Florida Statutes.
142 Therefore, the Legislature determines and declares that this act
143 fulfills an important state interest.
144 Section 7. The Legislature finds that a proper and
145 legitimate state purpose is served when employees, officers, and
146 retirees of the state and of its political subdivisions, and the
147 dependents, survivors, and beneficiaries of such employees,
148 officers, and retirees, are extended the basic protections
149 afforded by governmental retirement systems that provide fair
150 and adequate benefits, including health insurance subsidies, and
151 that are managed, administered, and funded in a reasonable
152 manner. Therefore, the Legislature determines and declares that
153 this act fulfills an important state interest.
154 Section 8. This act shall take effect July 1, 2013.