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.