Florida Senate - 2018 (PROPOSED BILL) SPB 7014 FOR CONSIDERATION By the Committee on Governmental Oversight and Accountability 585-01869A-18 20187014pb 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; providing a declaration of 7 important state interest; providing an effective date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Subsections (4) and (5) of section 121.71, 12 Florida Statutes, are amended to read: 13 121.71 Uniform rates; process; calculations; levy.— 14 (4) Required employer retirement contribution rates for 15 each membership class and subclass of the Florida Retirement 16 System for both retirement plans are as follows: 17 18 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2018201719 20 Regular Class 3.04%2.90%21 Special Risk Class 12.18%11.86%22 Special Risk Administrative Support Class 3.64%3.83%23 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.65%6.45%24 Elected Officers’ Class— Justices, Judges 12.00%11.67%25 Elected Officers’ Class— County Elected Officers 8.50%8.54%26 Senior Management Class 4.45%4.29%27 DROP 4.41%4.17%28 (5) 29 In order to address unfunded actuarial liabilities of the 30 system, the required employer retirement contribution rates for 31 each membership class and subclass of the Florida Retirement 32 System for both retirement plans are as follows: 33 34 35 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2018201736 37 Regular Class 3.50%3.30%38 Special Risk Class 10.60%9.69%39 Special Risk Administrative Support Class 29.62%29.08%40 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 48.38%42.69%41 Elected Officers’ Class— Justices, Judges 27.05%26.25%42 Elected Officers’ Class— County Elected Officers 38.48%35.24%43 Senior Management Service Class 17.89%16.70%44 DROP 7.96%7.43%45 Section 2. The Legislature finds that a proper and 46 legitimate state interest is served when employees, officers, 47 and retirees of the state and its political subdivisions, and 48 the dependents, survivors, and beneficiaries of such employees, 49 officers, and retirees, are extended the basic protections 50 afforded by governmental retirement systems. These persons must 51 be provided benefits that are fair and adequate and that are 52 managed, administered, and funded in an actuarially sound 53 manner, as required by s. 14, Article X of the State 54 Constitution and part VII of chapter 112, Florida Statutes. 55 Therefore, the Legislature determines and declares that this act 56 fulfills an important state interest. 57 Section 3. This act shall take effect July 1, 2018.