Florida Senate - 2013 (PROPOSED COMMITTEE BILL) SPB 7122
FOR CONSIDERATION By the Committee on Governmental Oversight and
Accountability
585-01622B-13 20137122__
1 A bill to be entitled
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 an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (8) of section 112.363, Florida
14 Statutes, is amended to read:
15 112.363 Retiree health insurance subsidy.—
16 (8) CONTRIBUTIONS.—For purposes of funding the insurance
17 subsidy provided by this section:
18 (a) Beginning October 1, 1987, the employer of each member
19 of a state-administered retirement plan shall contribute 0.24
20 percent of gross compensation each pay period.
21 (b) Beginning January 1, 1989, the employer of each member
22 of a state-administered retirement plan shall contribute 0.48
23 percent of gross compensation each pay period.
24 (c) Beginning January 1, 1994, the employer of each member
25 of a state-administered retirement plan shall contribute 0.56
26 percent of gross compensation each pay period.
27 (d) Beginning January 1, 1995, the employer of each member
28 of a state-administered retirement plan shall contribute 0.66
29 percent of gross compensation each pay period.
30 (e) Beginning July 1, 1998, the employer of each member of
31 a state-administered retirement plan shall contribute 0.94
32 percent of gross compensation each pay period.
33 (f) Beginning July 1, 2001, the employer of each member of
34 a state-administered plan shall contribute 1.11 percent of gross
35 compensation each pay period.
36 (g) Beginning July 1, 2013, the employer of each member of
37 a state-administered plan shall contribute 1.25 percent of gross
38 compensation each pay period.
39
40 Such contributions shall be submitted to the Department of
41 Management Services and deposited in the Retiree Health
42 Insurance Subsidy Trust Fund.
43 Section 2. Subsection (7) of section 121.052, Florida
44 Statutes, is amended to read:
45 121.052 Membership class of elected officers.—
46 (7) CONTRIBUTIONS.—
47 (a) The following table states the required retirement
48 contribution rates for members of the Elected Officers’ Class
49 and their employers in terms of a percentage of the member’s
50 gross compensation. A change in a contribution rate is effective
51 with the first salary paid on or after the beginning date of the
52 change. Contributions shall be made or deducted as may be
53 appropriate for each pay period and are in addition to the
54 contributions required for social security and the Retiree
55 Health Insurance Subsidy Trust Fund.
56 1.
57 Dates of Contribution Rate Changes Members Employers
58
59 July 1, 2001, through June 30, 2002
60 Legislators 0% 15.14%
61 Governor, Lt. Governor, Cabinet Officers 0% 15.14%
62 State Attorneys, Public Defenders 0% 15.14%
63 Justices, Judges 0% 20.61%
64 County Elected Officers 0% 17.61%
65 2. Effective July 1, 2002, the required retirement
66 contribution rates shall be specified in s. 121.71.
67 (b) The employer paying the salary of a member of the
68 Elected Officers’ Class shall contribute an amount as specified
69 in this subsection or s. 121.71, as appropriate, which shall
70 constitute the employer retirement contribution with respect to
71 such member. The employer shall also withhold one-half of the
72 entire contribution of the member required for social security
73 coverage. Effective July 1, 2011, each member of the Elected
74 Officers’ Class shall pay employee contributions as specified in
75 s. 121.71.
76 (c) If a member of the Elected Officers’ Class ceases to
77 fill an office covered by this class for 3 calendar months for
78 any reason other than retirement and has not been employed in
79 any capacity with any participating employer for 3 calendar
80 months, the member may receive a refund of all contributions he
81 or she has made to the pension plan, subject to the restrictions
82 otherwise provided in this chapter. Partial refunds are not
83 permitted. The refund shall not include any interest earnings on
84 the contributions for a member of the pension plan. Employer
85 contributions made on behalf of the member are not refundable. A
86 member may not receive a refund of employee contributions if a
87 pending or an approved qualified domestic relations order is
88 filed against the member’s retirement account. By obtaining a
89 refund of contributions, a member waives all rights under the
90 Florida Retirement System and the health insurance subsidy
91 provided under s. 112.363 to the service credit represented by
92 the refunded contributions, except the right to purchase his or
93 her prior service credit in accordance with s. 121.081(2).
94 (d) The following table states the required employer
95 contribution on behalf of each member of the Elected Officers’
96 Class in terms of a percentage of the member’s gross
97 compensation. Such contribution constitutes the entire health
98 insurance subsidy contribution with respect to each such member.
99 A change in the contribution rate is effective with the first
100 salary paid on or after the beginning date of the change. The
101 retiree health insurance subsidy contribution rate is as
102 follows:
103 Dates of Contribution Rate Changes ContributionRate
104 October 1, 1987, through December 31, 1988 0.24%
105 January 1, 1989, through December 31, 1993 0.48%
106 January 1, 1994, through December 31, 1994 0.56%
107 January 1, 1995, through June 30, 1998 0.66%
108 July 1, 1998, through June 30, 2001 0.94%
109 Effective July 1, 2001, through June 30, 2013 1.11%
110 Effective July 1, 2013 1.25%
111 Such contributions and accompanying payroll data are due and
112 payable no later than the 5th working day of the month
113 immediately following the month during which the payroll period
114 ended and shall be deposited by the administrator in the Retiree
115 Health Insurance Subsidy Trust Fund.
116 Section 3. Subsection (3) of section 121.055, Florida
117 Statutes, is amended to read:
118 121.055 Senior Management Service Class.—There is hereby
119 established a separate class of membership within the Florida
120 Retirement System to be known as the “Senior Management Service
121 Class,” which shall become effective February 1, 1987.
122 (3)(a) The following table states the required retirement
123 contribution rates for members of the Senior Management Service
124 Class and their employers in terms of a percentage of the
125 member’s gross compensation. A change in the contribution rate
126 is effective with the first salary paid on or after the
127 beginning date of the change. Contributions shall be made for
128 each pay period and are in addition to the contributions
129 required for social security and the Retiree Health Insurance
130 Subsidy Trust Fund.
131 1.
132 Dates of Contribution Rate Changes Members Employers
133
134 July 1, 2001, through June 30, 2002 0% 11.73%
135 2. Effective July 1, 2002, the required retirement
136 contribution rate shall be as specified in s. 121.71.
137 (b) The employer paying the salary of a member of the
138 Senior Management Service Class shall contribute an amount as
139 specified in this section or s. 121.71, as appropriate, which
140 shall constitute the entire employer retirement contribution
141 with respect to such member. The employer shall also withhold
142 one-half of the entire contribution of the member required for
143 social security coverage. Effective July 1, 2011, each member
144 shall pay employee contributions as specified in s. 121.71.
145 (c) Upon termination of employment from all participating
146 employers for 3 calendar months for any reason other than
147 retirement pursuant to s. 121.021(39)(c), a member may receive a
148 refund of all contributions he or she has made to the pension
149 plan, subject to the restrictions otherwise provided in this
150 chapter. Partial refunds are not permitted. The refund shall not
151 include any interest earnings on the contributions for a member
152 of the pension plan. Employer contributions made on behalf of
153 the member are not refundable. A member may not receive a refund
154 of employee contributions if a pending or an approved qualified
155 domestic relations order is filed against the member’s
156 retirement account. By obtaining a refund of contributions, a
157 member waives all rights under the Florida Retirement System and
158 the health insurance subsidy provided under s. 112.363 to the
159 service credit represented by the refunded contributions, except
160 the right to purchase his or her prior service credit in
161 accordance with s. 121.081(2).
162 (d) The following table states the required employer
163 contribution on behalf of each member of the Senior Management
164 Service Class in terms of a percentage of the member’s gross
165 compensation. Such contribution constitutes the entire health
166 insurance subsidy contribution with respect to each such member.
167 A change in the contribution rate is effective with the first
168 salary paid on or after the beginning date of the change. The
169 retiree health insurance subsidy contribution rate is as
170 follows:
171 Dates of Contribution Rate Changes ContributionRate
172
173 October 1, 1987, through December 31, 1988 0.24%
174 January 1, 1989, through December 31, 1993 0.48%
175 January 1, 1994, through December 31, 1994 0.56%
176 January 1, 1995, through June 30, 1998 0.66%
177 July 1, 1998, through June 30, 2001 0.94%
178 Effective July 1, 2001, through June 30, 2013 1.11%
179 Effective July 1, 2013 1.25%
180 Such contributions and accompanying payroll data are due and
181 payable no later than the 5th working day of the month
182 immediately following the month during which the payroll period
183 ended and shall be deposited by the administrator in the Retiree
184 Health Insurance Subsidy Trust Fund.
185 Section 4. Subsection (4) of section 121.071, Florida
186 Statutes, is amended to read:
187 121.071 Contributions.—Contributions to the system shall be
188 made as follows:
189 (4) The following table states the required employer
190 contribution on behalf of each member of the Regular Class,
191 Special Risk Class, or Special Risk Administrative Support Class
192 in terms of a percentage of the member’s gross compensation.
193 Such contribution constitutes the entire health insurance
194 subsidy contribution with respect to each such member. A change
195 in the contribution rate is effective with the first salary paid
196 on or after the beginning date of the change. The retiree health
197 insurance subsidy contribution rate is as follows:
198 Dates of Contribution Rate Changes ContributionRate
199 October 1, 1987, through December 31, 1988 0.24%
200 January 1, 1989, through December 31, 1993 0.48%
201 January 1, 1994, through December 31, 1994 0.56%
202 January 1, 1995, through June 30, 1998 0.66%
203 July 1, 1998, through June 30, 2001 0.94%
204 Effective July 1, 2001, through June 30, 2013 1.11%
205 Effective July 1, 2013 1.25%
206 Such contributions shall be deposited by the administrator in
207 the Retiree Health Insurance Subsidy Trust Fund.
208 Section 5. Subsections (4) and (5) of section 121.71,
209 Florida Statutes, are amended to read:
210 121.71 Uniform rates; process; calculations; levy.—
211 (4) Required employer retirement contribution rates for
212 each membership class and subclass of the Florida Retirement
213 System for both retirement plans are as follows:
214 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2013 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
215
216 Regular Class 3.53% 3.55% 3.53% 3.55%
217 Special Risk Class 11.00% 11.01% 11.00% 11.01%
218 Special Risk Administrative Support Class 4.17% 3.94% 4.17% 3.94%
219 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.52% 6.51% 6.52% 6.51%
220 Elected Officers’ Class— Justices, Judges 10.05% 10.02% 10.05% 10.02%
221 Elected Officers’ Class— County Elected Officers 8.44% 8.36% 8.44% 8.36%
222 Senior Management Class 4.81% 4.84% 4.81% 4.84%
223 DROP 4.63% 4.33% 4.63% 4.33%
224 (5) In order to address unfunded actuarial liabilities of
225 the system, the required employer retirement contribution rates
226 for each membership class and subclass of the Florida Retirement
227 System for both retirement plans are as follows:
228
229 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2013 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2014 2013
230
231 Regular Class 2.19% 0.49% 2.19% 2.02%
232 Special Risk Class 6.83% 2.75% 6.83% 7.03%
233 Special Risk Administrative Support Class 30.56% 0.83% 30.56% 27.04%
234 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 24.85% 0.88% 24.85% 27.18%
235 Elected Officers’ Class— Justices, Judges 17.00% 0.77% 17.00% 16.38%
236 Elected Officers’ Class— County Elected Officers 23.36% 0.73% 23.36% 23.01%
237 Senior Management Service Class 12.27% 0.32% 12.27% 11.25%
238 DROP 7.01% 0.00% 7.01% 6.21%
239 Section 6. This act shall take effect July 1, 2013.