Florida Senate - 2015 COMMITTEE AMENDMENT
Bill No. SB 216
Ì546068BÎ546068
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/03/2015 .
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The Committee on Community Affairs (Brandes) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Before line 28
4 insert:
5 Section 1. Subsection (1) of section 112.63, Florida
6 Statutes, is amended to read:
7 112.63 Actuarial reports and statements of actuarial
8 impact; review.—
9 (1) Each retirement system or plan subject to the
10 provisions of this act shall have regularly scheduled actuarial
11 reports prepared and certified by an enrolled actuary. The
12 actuarial report shall consist of, but need shall not be limited
13 to, the following:
14 (a) Adequacy of employer and employee contribution rates in
15 meeting levels of employee benefits provided in the system and
16 changes, if any, needed in such rates to achieve or preserve a
17 level of funding deemed adequate to enable payment through the
18 indefinite future of the benefit amounts prescribed by the
19 system, which shall include a valuation of present assets, based
20 on statement value, and prospective assets and liabilities of
21 the system and the extent of unfunded accrued liabilities, if
22 any.
23 (b) A plan to amortize any unfunded liability pursuant to
24 s. 112.64 and a description of actions taken to reduce the
25 unfunded liability.
26 (c) A description and explanation of actuarial assumptions.
27 (d) A schedule illustrating the amortization of unfunded
28 liabilities, if any.
29 (e) A comparative review illustrating the actual salary
30 increases granted and the rate of investment return realized
31 over the 3-year period preceding the actuarial report with the
32 assumptions used in both the preceding and current actuarial
33 reports.
34 (f) Mortality tables that use mortality methodology
35 consistent with the most recently published actuarial valuation
36 report of the Florida Retirement System.
37 (g)(f) A statement by the enrolled actuary that the report
38 is complete and accurate and that in his or her opinion the
39 techniques and assumptions used are reasonable and meet the
40 requirements and intent of this act.
41
42 The actuarial cost methods utilized for establishing the amount
43 of the annual actuarial normal cost to support the promised
44 benefits shall only be those methods approved in the Employee
45 Retirement Income Security Act of 1974 and as permitted under
46 regulations prescribed by the Secretary of the Treasury.
47 Section 2. Subsection (1) of section 112.664, Florida
48 Statutes, is amended to read:
49 112.664 Reporting standards for defined benefit retirement
50 plans or systems.—
51 (1) In addition to the other reporting requirements of this
52 part, within 60 days after receipt of the certified actuarial
53 report submitted after the close of the plan year that ends on
54 or after June 30, 2014, and thereafter in each year required
55 under s. 112.63(2), each defined benefit retirement system or
56 plan, excluding the Florida Retirement System, shall prepare and
57 electronically report the following information to the
58 Department of Management Services in a format prescribed by the
59 department:
60 (a) Annual financial statements that comply are in
61 compliance with the requirements of the Governmental Accounting
62 Standards Government Accounting and Standard Board’s Statement
63 No. 67, titled “Financial Reporting for Pension Plans,” and
64 Statement No. 68, titled “Accounting and Financial Reporting for
65 Pensions,” using mortality tables that use mortality methodology
66 consistent with the most recently published actuarial valuation
67 report of the Florida Retirement System RP-2000 Combined Healthy
68 Participant Mortality Tables, by gender, with generational
69 projection by Scale AA.
70 (b) Annual financial statements similar to those required
71 under paragraph (a), but which use an assumed rate of return on
72 investments and an assumed discount rate that are equal to 200
73 basis points less than the plan’s assumed rate of return.
74 (c) Information indicating the number of months or years
75 for which the current market value of assets are adequate to
76 sustain the payment of expected retirement benefits as
77 determined in the plan’s latest valuation and under the
78 financial statements prepared pursuant to paragraphs (a) and
79 (b).
80 (d) Information indicating the recommended contributions to
81 the plan based on the plan’s latest valuation, and the
82 contributions necessary to fund the plan based on financial
83 statements prepared pursuant to paragraphs (a) and (b), stated
84 as an annual dollar value and a percentage of valuation payroll.
85
86 ================= T I T L E A M E N D M E N T ================
87 And the title is amended as follows:
88 Delete line 3
89 and insert:
90 programs; amending s. 112.63, F.S.; requiring that
91 actuarial reports for certain retirement systems or
92 plans include mortality tables; amending s. 112.664,
93 F.S.; revising information to be included in the
94 annual report of a defined benefit system or plan to
95 the Department of Management Services; amending s.
96 175.041, F.S.; revising