Florida Senate - 2015                        COMMITTEE AMENDMENT
       Bill No. SB 216
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/03/2015           .                                

       The Committee on Community Affairs (Brandes) recommended the
    1         Senate Amendment (with title amendment)
    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.
   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, titledFinancial 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.
   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