Florida Senate - 2016 (PROPOSED BILL) SPB 7042
FOR CONSIDERATION By the Committee on Governmental Oversight and
Accountability
585-01819-16 20167042pb
1 A bill to be entitled
2 An act relating to state-administered retirement
3 systems; amending s. 121.71, F.S.; revising required
4 employer retirement contribution rates for each
5 membership class and subclass of the Florida
6 Retirement System; amending s. 121.74, F.S.; revising
7 the employer assessment rate for offsetting
8 administrative and educational costs related to the
9 Florida Retirement System; providing a declaration of
10 important state interest; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsections (4) and (5) of section 121.71,
15 Florida Statutes, are amended to read:
16 121.71 Uniform rates; process; calculations; levy.—
17 (4) Required employer retirement contribution rates for
18 each membership class and subclass of the Florida Retirement
19 System for both retirement plans are as follows:
20
21 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2016 2015
22
23 Regular Class 2.97% 2.91%
24 Special Risk Class 11.35%
25 Special Risk Administrative Support Class 3.87% 3.71%
26 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.63% 6.48%
27 Elected Officers’ Class— Justices, Judges 11.68% 11.39%
28 Elected Officers’ Class— County Elected Officers 8.55% 8.48%
29 Senior Management Class 4.38% 4.32%
30 DROP 4.17% 4.10%
31 (5) In order to address unfunded actuarial liabilities of
32 the system, the required employer retirement contribution rates
33 for each membership class and subclass of the Florida Retirement
34 System for both retirement plans are as follows:
35
36
37 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2016 2015
38
39 Regular Class 2.83% 2.65%
40 Special Risk Class 8.92% 8.99%
41 Special Risk Administrative Support Class 22.47% 27.54%
42 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 33.75% 37.62%
43 Elected Officers’ Class— Justices, Judges 23.30% 22.62%
44 Elected Officers’ Class— County Elected Officers 32.20% 32.09%
45 Senior Management Service Class 15.67% 15.41%
46 DROP 7.10% 7.12%
47 Section 2. Section 121.74, Florida Statutes, is amended to
48 read:
49 121.74 Administrative and educational expenses.—In addition
50 to contributions required to fund member accounts under ss.
51 121.71 and 121.73, effective July 1, 2010, through June 30,
52 2014, employers participating in the Florida Retirement System
53 shall contribute an employer assessment amount equal to 0.03
54 percent of the payroll reported for each class or subclass of
55 Florida Retirement System membership. Effective July 1, 2014,
56 the employer assessment is 0.04 percent of the payroll reported
57 for each class or subclass of membership. Effective July 1,
58 2016, the employer assessment is 0.06 percent of the payroll
59 reported for each class or subclass of membership. The amount
60 assessed shall be transferred by the Division of Retirement from
61 the Florida Retirement System Contributions Clearing Trust Fund
62 to the State Board of Administration’s Administrative Trust Fund
63 to offset the costs of administering the investment plan and the
64 costs of providing educational services to members of the
65 Florida Retirement System. Approval of the trustees is required
66 before the expenditure of these funds. Payments for third-party
67 administrative or educational expenses shall be made only
68 pursuant to the terms of the approved contracts for such
69 services.
70 Section 3. The Legislature finds that a proper and
71 legitimate state interest is served when employees, officers,
72 and retirees of the state and its political subdivisions, and
73 the dependents, survivors, and beneficiaries of such employees,
74 officers, and retirees, are extended the basic protections
75 afforded by governmental retirement systems. These persons must
76 be provided benefits that are fair and adequate and that are
77 managed, administered, and funded in an actuarially sound
78 manner, as required by s. 14, Article X of the State
79 Constitution and part VII of chapter 112, Florida Statutes.
80 Therefore, the Legislature determines and declares that this act
81 fulfills an important state interest.
82 Section 4. This act shall take effect July 1, 2016.