Florida Senate - 2020                              CS for SB 858
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senators Gruters and Hooper
       
       
       
       
       585-03397-20                                           2020858c1
    1                        A bill to be entitled                      
    2         An act relating to cost-of-living adjustment for
    3         Special Risk Class retirees; amending s. 121.101,
    4         F.S.; revising the manner of calculating the cost-of
    5         living factor for Special Risk Class retirees, and
    6         their beneficiaries, who meet certain criteria;
    7         revising required employer contribution rates for the
    8         Special Risk Class and the Deferred Retirement Option
    9         Program in the Florida Retirement System to fund
   10         benefit changes made by the act; directing the
   11         Division of Law Revision to adjust the employer
   12         contribution rates with any other rate changes;
   13         providing a declaration of important state interest;
   14         providing an effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Paragraph (c) of subsection (4) of section
   19  121.101, Florida Statutes, is amended to read:
   20         121.101 Cost-of-living adjustment of benefits.—
   21         (4) For members whose effective retirement date is on or
   22  after July 1, 2011, the benefit of each retiree and annuitant
   23  shall be adjusted annually on July 1 as follows:
   24         (c) The department shall calculate a cost-of-living factor
   25  for each retiree and beneficiary retiring on or after July 1,
   26  2011. This factor shall equal the product of 3 percent
   27  multiplied by the quotient of the sum of the member’s service
   28  credit earned for service before July 1, 2011, divided by the
   29  sum of the member’s total service credit earned. However,
   30  beginning July 1, 2020, the cost-of-living factor for each
   31  retiree, and the beneficiary of such a retiree, who was a member
   32  of the Special Risk Class on June 30, 2011, is a member of the
   33  Special Risk Class on the effective date of retirement, who
   34  retires on or after July 1, 2011, and has earned service credit
   35  before July 1, 2011, shall equal the product of 3 percent
   36  multiplied by the quotient of the sum of the member’s service
   37  credit earned for service before July 1, 2011, divided by the
   38  sum of the member’s total service credit earned as of June 30,
   39  2020.
   40         Section 2. (1) In order to fund the benefit changes
   41  provided in this act, the required employer contribution rates
   42  for members of the Florida Retirement System are increased as
   43  follows:
   44         (a) By 0.39 percentage points for the rate established in
   45  s. 121.71(4), Florida Statutes, for the Special Risk Class.
   46         (b) By 0.63 percentage points for the rate established in
   47  s. 121.71(5), Florida Statutes, for the Special Risk Class.
   48         (c) By 0.08 percentage points for the rate established in
   49  s. 121.71(4), Florida Statutes, for DROP.
   50         (2) The adjustments provided in subsection (1) are in
   51  addition to any other changes to such contribution rates which
   52  may be enacted into law to take effect on July 1, 2020. The
   53  Division of Law Revision is directed to adjust accordingly the
   54  contribution rates provided in s. 121.71, Florida Statutes.
   55         Section 3. The Legislature finds that a proper and
   56  legitimate state purpose is served when employees and retirees
   57  of the state and its political subdivisions, and the dependents,
   58  survivors, and beneficiaries of such employees and retirees, are
   59  extended the basic protections afforded by governmental
   60  retirement systems. These persons must be provided benefits that
   61  are fair and adequate and that are managed, administered, and
   62  funded in an actuarially sound manner, as required by s. 14,
   63  Article X of the State Constitution and part VII of chapter 112,
   64  Florida Statutes. Therefore, the Legislature determines and
   65  declares that this act fulfills an important state interest.
   66         Section 4. This act shall take effect July 1, 2020.