Florida Senate - 2015                                     SB 108
       
       
        
       By Senator Diaz de la Portilla
       
       
       
       
       
       40-00140-15                                            2015108__
    1                        A bill to be entitled                      
    2         An act relating to the Florida Retirement System;
    3         amending s. 121.111, F.S.; updating obsolete cross
    4         references; revising eligibility for the purchase of
    5         credit for military service; making editorial changes;
    6         amending s. 121.052, F.S.; conforming a cross
    7         reference; declaring that the act fulfills an
    8         important state interest; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Section 121.111, Florida Statutes, is amended to
   13  read:
   14         121.111 Credit for military service.—
   15         (1) Creditable service of any member shall also include
   16  military service as defined in s. 121.021(20)(a) if:
   17         (a) The member is in the active employ of an employer
   18  immediately before prior to such service and leaves a position,
   19  other than a temporary position, for the purpose of induction
   20  into the Armed Forces of the United States or entry upon duty in
   21  the Armed Forces of the United States. When applied to the
   22  Florida Retirement System:
   23         1. The term “position other than a temporary position”
   24  means a regularly established position with a Florida Retirement
   25  System employer; and
   26         2. A member shall be construed to have left his or her
   27  employment for military purposes if he or she reported for
   28  active duty within 60 days after leaving such employment;
   29         (b) The member is entitled to reemployment under the
   30  provisions of the Uniformed Services Employment and Reemployment
   31  Rights Act Veterans’ Reemployment Rights Act (38 U.S.C. ss. 2021
   32  et seq.);
   33         (c) The member applies for reemployment with the same
   34  employer within the time set forth in the Uniformed Services
   35  Employment and Reemployment Rights Act s. 2021 or s. 2024 of the
   36  Veterans’ Reemployment Rights Act, whichever is applicable, and
   37  is reemployed by such employer;
   38         (d) The member makes the required employee contributions,
   39  if any, and the employer makes the required employer
   40  contributions for the employee’s membership class for each month
   41  of service credit during the such period of military service,
   42  based upon the employee’s rate of monthly compensation as of the
   43  date that the employee left his or her position, plus 4 percent
   44  interest on such contributions compounded annually from the due
   45  date of the contribution until July 1, 1975, and 6.5 percent
   46  interest compounded annually thereafter, until the payment is
   47  made to the appropriate proper retirement trust fund; and
   48         (e) The period of service claimed pursuant to this
   49  subsection does not exceed the periods specified by the
   50  provisions of the Uniformed Services Employment and Reemployment
   51  Rights Act ss. 2021 and 2024 of the Veterans’ Reemployment
   52  Rights Act which are applicable in the member’s case.
   53         (2) A Any member whose initial date of employment is before
   54  January 1, 1987, who has military service as defined in s.
   55  121.021(20)(b) which he or she, and who does not claim such
   56  service under subsection (1) may receive creditable service for
   57  such military service if:
   58         (a) The member is vested;
   59         (b) Creditable service, not to exceed a total of 4 years,
   60  is claimed only as service earned in the Regular Class of
   61  membership; and
   62         (c) The member pays into the proper retirement trust fund 4
   63  percent of gross salary, based upon his or her first year of
   64  salary subsequent to July 1, 1945, that he or she has credit for
   65  under this system, plus 4 percent interest thereon compounded
   66  annually from the date of first creditable service under this
   67  chapter until July 1, 1975, and 6.5 percent interest compounded
   68  annually thereafter, until payment is made to the appropriate
   69  proper retirement trust fund.
   70         (3)(d)A The member may not receive credit under subsection
   71  (2) for any wartime military service if he or she the member
   72  also receives credit for such service under any federal, state,
   73  or local retirement or pension system where “length of service”
   74  is a factor in determining the amount of compensation received.
   75  However, credit for wartime military service may be received if
   76  where the member also receives credit under a pension system
   77  providing retired pay for nonregular service in the Armed Forces
   78  of the United States in accordance with 10 U.S.C. ss. 1331 et
   79  seq., as follows:
   80         (a)1.A Any person whose retirement date under the Florida
   81  Retirement System is before prior to July 1, 1985, may claim
   82  such service at any time, as provided in this subsection, upon
   83  payment of contributions and interest as provided in paragraph
   84  (2)(c)(c), with interest computed to the retired member’s
   85  retirement date. The benefit shall be recalculated and increased
   86  to include the additional service credit granted for such
   87  wartime military service, and a lump-sum payment shall be made
   88  to the retiree for the amount owed due to the additional service
   89  credit, retroactive to the date of retirement.
   90         (b)2.A Any person whose retirement date is on or after
   91  July 1, 1985, must claim such service and pay the required
   92  contributions, as provided in paragraph (2)(c)(c), before prior
   93  to the commencement of his or her retirement benefits, as
   94  provided in this subsection.
   95         (4)(e)A Any member claiming credit under this subsection
   96  (2) must certify on the form prescribed by the department that
   97  credit for such service has not and will not be claimed for
   98  retirement purposes under any other federal, state, or local
   99  retirement or pension system where “length of service” is a
  100  factor in determining the amount of compensation received,
  101  unless except where credit for such service has been granted in
  102  a pension system providing retired pay for nonregular service as
  103  provided in subsection (3) paragraph (d). If the member dies
  104  before prior to retirement, the member’s beneficiary must make
  105  the required certification before credit may be claimed. If such
  106  certification is not made by the member or the member’s
  107  beneficiary, credit for wartime military service is prohibited
  108  shall not be allowed.
  109         (5)(f) Service credit awarded for wartime military service
  110  under subsection (2) equals shall be the total number of years,
  111  months, and days from and including the date of entry into
  112  active duty through the date of discharge from active duty, up
  113  to a maximum of 4 years. If the military service includes a
  114  partial year, it shall be stated as a fraction of a year.
  115  Creditable military service shall be calculated in accordance
  116  with rule 60S-2.005(2)(j), Florida Administrative Code.
  117         (6)(3) Except as provided by law or rule, the employer is
  118  not required to make contributions for military service credit
  119  for any member.
  120         Section 2. Paragraph (d) of subsection (12) of section
  121  121.052, Florida Statutes, is amended to read:
  122         121.052 Membership class of elected officers.—
  123         (12) BENEFITS.—
  124         (d) The provisions of ss. 121.101 and 121.111, relating to
  125  the cost-of-living adjustment of retirement benefits and
  126  retirement credit for wartime military service, respectively,
  127  shall apply to members of the Elected Officers’ Class.
  128  Creditable service for actual wartime service, as authorized by
  129  s. 121.111(2), not exceeding 4 years, shall be acquired and paid
  130  for as provided in s. 121.111 said subsection. Upon payment by
  131  the member of 4 percent of gross salary plus accrued interest,
  132  retirement credit shall be granted at the rate of 1.6 percent
  133  for each year of creditable service acquired under that section
  134  said subsection.
  135         Section 3. The Legislature finds that a proper and
  136  legitimate state purpose is served when employees and retirees
  137  of the state and its political subdivisions who have military
  138  service as defined in s. 121.021(20)(b), Florida Statutes, and
  139  the dependents, survivors, and beneficiaries of such employees
  140  and retirees, are extended additional protections afforded by
  141  governmental retirement systems. These persons must be provided
  142  benefits that are fair and adequate and that are managed,
  143  administered, and funded in a sound actuarial manner, as
  144  required by s. 14, Article X of the State Constitution and part
  145  VII of chapter 112, Florida Statutes. Therefore, the Legislature
  146  determines and declares that this act fulfills an important
  147  state interest.
  148         Section 4. This act shall take effect July 1, 2015.