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.