Florida Senate - 2021 SB 7018
By the Committee on Governmental Oversight and Accountability
585-01991-21 20217018__
1 A bill to be entitled
2 An act relating to employer contributions to fund
3 retiree benefits; amending ss. 112.363, 121.052,
4 121.055, and 121.071, F.S.; revising the employer
5 contribution rates for the retiree health insurance
6 subsidy as of a specified date; amending s. 121.71,
7 F.S.; revising required employer retirement
8 contribution rates for each membership class and
9 subclass of the Florida Retirement System; providing a
10 declaration of important state interest; providing an
11 effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (j) is added to subsection (8) of
16 section 112.363, Florida Statutes, to read:
17 112.363 Retiree health insurance subsidy.—
18 (8) CONTRIBUTIONS.—For purposes of funding the insurance
19 subsidy provided by this section:
20 (j) Beginning July 1, 2021, the employer of each member of
21 a state-administered plan shall contribute 1.50 percent of gross
22 compensation each pay period.
23
24 Such contributions shall be submitted to the Department of
25 Management Services and deposited in the Retiree Health
26 Insurance Subsidy Trust Fund.
27 Section 2. Paragraph (d) of subsection (7) of section
28 121.052, Florida Statutes, is amended to read:
29 121.052 Membership class of elected officers.—
30 (7) CONTRIBUTIONS.—
31 (d) The following table states the required employer
32 contribution on behalf of each member of the Elected Officers’
33 Class in terms of a percentage of the member’s gross
34 compensation. Such contribution constitutes the entire health
35 insurance subsidy contribution with respect to each such member.
36 A change in the contribution rate is effective with the first
37 salary paid on or after the beginning date of the change. The
38 retiree health insurance subsidy contribution rate is as
39 follows:
40
41 Dates of Contribution Rate Changes ContributionRate
42
43 October 1, 1987, through December 31, 1988 0.24%
44 January 1, 1989, through December 31, 1993 0.48%
45 January 1, 1994, through December 31, 1994 0.56%
46 January 1, 1995, through June 30, 1998 0.66%
47 July 1, 1998, through June 30, 2001 0.94%
48 July 1, 2001, through June 30, 2013 1.11%
49 July 1, 2013, through June 30, 2014 1.20%
50 July 1, 2014, through June 30, 2015 1.26%
51 Effective July 1, 2015, through June 30, 2021 1.66%
52 Effective July 1, 2021 1.50%
53 Such contributions and accompanying payroll data are due and
54 payable no later than the 5th working day of the month
55 immediately following the month during which the payroll period
56 ended and shall be deposited by the administrator in the Retiree
57 Health Insurance Subsidy Trust Fund.
58 Section 3. Paragraph (d) of subsection (3) of section
59 121.055, Florida Statutes, is amended to read:
60 121.055 Senior Management Service Class.—There is hereby
61 established a separate class of membership within the Florida
62 Retirement System to be known as the “Senior Management Service
63 Class,” which shall become effective February 1, 1987.
64 (3)
65 (d) The following table states the required employer
66 contribution on behalf of each member of the Senior Management
67 Service Class in terms of a percentage of the member’s gross
68 compensation. Such contribution constitutes the entire health
69 insurance subsidy contribution with respect to each such member.
70 A change in the contribution rate is effective with the first
71 salary paid on or after the beginning date of the change. The
72 retiree health insurance subsidy contribution rate is as
73 follows:
74
75 Dates of Contribution Rate Changes ContributionRate
76
77 October 1, 1987, through December 31, 1988 0.24%
78 January 1, 1989, through December 31, 1993 0.48%
79 January 1, 1994, through December 31, 1994 0.56%
80 January 1, 1995, through June 30, 1998 0.66%
81 July 1, 1998, through June 30, 2001 0.94%
82 July 1, 2001, through June 30, 2013 1.11%
83 July 1, 2013, through June 30, 2014 1.20%
84 July 1, 2014, through June 30, 2015 1.26%
85 Effective July 1, 2015, through June 30, 2021 1.66%
86 Effective July 1, 2021 1.50%
87 Such contributions and accompanying payroll data are due and
88 payable no later than the 5th working day of the month
89 immediately following the month during which the payroll period
90 ended and shall be deposited by the administrator in the Retiree
91 Health Insurance Subsidy Trust Fund.
92 Section 4. Subsection (4) of section 121.071, Florida
93 Statutes, is amended to read:
94 121.071 Contributions.—Contributions to the system shall be
95 made as follows:
96 (4) The following table states the required employer
97 contribution on behalf of each member of the Regular Class,
98 Special Risk Class, or Special Risk Administrative Support Class
99 in terms of a percentage of the member’s gross compensation.
100 Such contribution constitutes the entire health insurance
101 subsidy contribution with respect to each such member. A change
102 in the contribution rate is effective with the first salary paid
103 on or after the beginning date of the change. The retiree health
104 insurance subsidy contribution rate is as follows:
105
106 Dates of Contribution Rate Changes ContributionRate
107
108 October 1, 1987, through December 31, 1988 0.24%
109 January 1, 1989, through December 31, 1993 0.48%
110 January 1, 1994, through December 31, 1994 0.56%
111 January 1, 1995, through June 30, 1998 0.66%
112 July 1, 1998, through June 30, 2001 0.94%
113 July 1, 2001, through June 30, 2013 1.11%
114 July 1, 2013, through June 30, 2014 1.20%
115 July 1, 2014, through June 30, 2015 1.26%
116 Effective July 1, 2015, through June 30, 2021 1.66%
117 Effective July 1, 2021 1.50%
118 Such contributions shall be deposited by the administrator in
119 the Retiree Health Insurance Subsidy Trust Fund.
120 Section 5. Subsections (4) and (5) of section 121.71,
121 Florida Statutes, are amended to read:
122 121.71 Uniform rates; process; calculations; levy.—
123 (4) Required employer retirement contribution rates for
124 each membership class and subclass of the Florida Retirement
125 System for both retirement plans are as follows:
126
127 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2021 2020
128
129 Regular Class 4.91% 4.84%
130 Special Risk Class 15.27% 15.13%
131 Special Risk Administrative Support Class 9.73% 9.89%
132 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 8.49% 8.38%
133 Elected Officers’ Class— Justices, Judges 13.38% 13.31%
134 Elected Officers’ Class— County Elected Officers 10.28% 10.07%
135 Senior Management Class 6.49% 6.39%
136 DROP 7.23% 7.03%
137 (5) In order to address unfunded actuarial liabilities of
138 the system, the required employer retirement contribution rates
139 for each membership class and subclass of the Florida Retirement
140 System for both retirement plans are as follows:
141
142 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2021 2020
143
144 Regular Class 4.19% 3.44%
145 Special Risk Class 8.90% 7.60%
146 Special Risk Administrative Support Class 26.31% 24.23%
147 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 53.52% 48.81%
148 Elected Officers’ Class— Justices, Judges 25.81% 24.70%
149 Elected Officers’ Class— County Elected Officers 39.42% 37.39%
150 Senior Management Service Class 20.80% 19.18%
151 DROP 9.45% 8.29%
152 Section 6. The Legislature finds that a proper and
153 legitimate state purpose is served when employees, officers, and
154 retirees of the state and its political subdivisions, and the
155 dependents, survivors, and beneficiaries of such employees,
156 officers, and retirees, are extended the basic protections
157 afforded by governmental retirement systems. These persons must
158 be provided benefits that are fair and adequate and that are
159 managed, administered, and funded in an actuarially sound manner
160 as required by s. 14, Article X of the State Constitution and
161 part VII of chapter 112, Florida Statutes. Therefore, the
162 Legislature determines and declares that this act fulfills an
163 important state interest.
164 Section 7. This act shall take effect July 1, 2021.