ENROLLED
       2015 Legislature                        SB 2512-A, 1st Engrossed
       
       
       
       
       
       
                                                            20152512Aer
    1  
    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; amending s. 121.71, F.S.; revising the
    7         required employer retirement contribution rates for
    8         members of each membership class and subclass of the
    9         Florida Retirement System; providing findings of an
   10         important state interest; providing for construction
   11         of the act in pari materia with laws enacted during
   12         the 2015 Regular Session of the Legislature; providing
   13         for contingent retroactive operation; providing
   14         effective dates.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Paragraph (i) is added to subsection (8) of
   19  section 112.363, Florida Statutes, to read:
   20         112.363 Retiree health insurance subsidy.—
   21         (8) CONTRIBUTIONS.—For purposes of funding the insurance
   22  subsidy provided by this section:
   23         (i) Beginning July 1, 2015, the employer of each member of
   24  a state-administered plan shall contribute 1.66 percent of gross
   25  compensation each pay period.
   26  
   27  Such contributions shall be submitted to the Department of
   28  Management Services and deposited in the Retiree Health
   29  Insurance Subsidy Trust Fund.
   30         Section 2. Paragraph (d) of subsection (7) of section
   31  121.052, Florida Statutes, is amended to read:
   32         121.052 Membership class of elected officers.—
   33         (7) CONTRIBUTIONS.—
   34         (d) The following table states the required employer
   35  contribution on behalf of each member of the Elected Officers’
   36  Class in terms of a percentage of the member’s gross
   37  compensation. Such contribution constitutes the entire health
   38  insurance subsidy contribution with respect to each such member.
   39  A change in the contribution rate is effective with the first
   40  salary paid on or after the beginning date of the change. The
   41  retiree health insurance subsidy contribution rate is as
   42  follows:
   43  
   44  
   45  Dates of Contribution Rate Changes            ContributionRate
   46  October 1, 1987, through December 31, 1988         0.24%     
   47  January 1, 1989, through December 31, 1993         0.48%     
   48  January 1, 1994, through December 31, 1994         0.56%     
   49  January 1, 1995, through June 30, 1998             0.66%     
   50  July 1, 1998, through June 30, 2001                0.94%     
   51  July 1, 2001, through June 30, 2013                1.11%     
   52  July 1, 2013, through June 30, 2014                1.20%     
   53  Effective July 1, 2014, through June 30, 2015      1.26%     
   54  Effective July 1, 2015                             1.66%     
   55  Such contributions and accompanying payroll data are due and
   56  payable no later than the 5th working day of the month
   57  immediately following the month during which the payroll period
   58  ended and shall be deposited by the administrator in the Retiree
   59  Health Insurance Subsidy Trust Fund.
   60         Section 3. Paragraph (d) of subsection (3) of section
   61  121.055, Florida Statutes, is amended to read:
   62         121.055 Senior Management Service Class.—There is hereby
   63  established a separate class of membership within the Florida
   64  Retirement System to be known as the “Senior Management Service
   65  Class,” which shall become effective February 1, 1987.
   66         (3)
   67         (d) The following table states the required employer
   68  contribution on behalf of each member of the Senior Management
   69  Service Class in terms of a percentage of the member’s gross
   70  compensation. Such contribution constitutes the entire health
   71  insurance subsidy contribution with respect to each such member.
   72  A change in the contribution rate is effective with the first
   73  salary paid on or after the beginning date of the change. The
   74  retiree health insurance subsidy contribution rate is as
   75  follows:
   76  
   77  
   78  Dates of Contribution Rate Changes             ContributionRate
   79  
   80  October 1, 1987, through December 31, 1988         0.24%     
   81  January 1, 1989, through December 31, 1993         0.48%     
   82  January 1, 1994, through December 31, 1994         0.56%     
   83  January 1, 1995, through June 30, 1998             0.66%     
   84  July 1, 1998, through June 30, 2001                0.94%     
   85  July 1, 2001, through June 30, 2013                1.11%     
   86  July 1, 2013, through June 30, 2014                1.20%     
   87  Effective July 1, 2014, through June 30, 2015      1.26%     
   88  Effective July 1, 2015                             1.66%     
   89  Such contributions and accompanying payroll data are due and
   90  payable no later than the 5th working day of the month
   91  immediately following the month during which the payroll period
   92  ended and shall be deposited by the administrator in the Retiree
   93  Health Insurance Subsidy Trust Fund.
   94         Section 4. Subsection (4) of section 121.071, Florida
   95  Statutes, is amended to read:
   96         121.071 Contributions.—Contributions to the system shall be
   97  made as follows:
   98         (4) The following table states the required employer
   99  contribution on behalf of each member of the Regular Class,
  100  Special Risk Class, or Special Risk Administrative Support Class
  101  in terms of a percentage of the member’s gross compensation.
  102  Such contribution constitutes the entire health insurance
  103  subsidy contribution with respect to each such member. A change
  104  in the contribution rate is effective with the first salary paid
  105  on or after the beginning date of the change. The retiree health
  106  insurance subsidy contribution rate is as follows:
  107  
  108  
  109  Dates of Contribution Rate Changes             ContributionRate
  110  October 1, 1987, through December 31, 1988         0.24%     
  111  January 1, 1989, through December 31, 1993         0.48%     
  112  January 1, 1994, through December 31, 1994         0.56%     
  113  January 1, 1995, through June 30, 1998             0.66%     
  114  July 1, 1998, through June 30, 2001                0.94%     
  115  July 1, 2001, through June 30, 2013                1.11%     
  116  July 1, 2013, through June 30, 2014                1.20%     
  117  Effective July 1, 2014, through June 30, 2015      1.26%     
  118  Effective July 1, 2015                             1.66%     
  119  Such contributions shall be deposited by the administrator in
  120  the Retiree Health Insurance Subsidy Trust Fund.
  121         Section 5. Subsections (4) and (5) of section 121.71,
  122  Florida Statutes, are amended to read:
  123         121.71 Uniform rates; process; calculations; levy.—
  124         (4) Required employer retirement contribution rates for
  125  each membership class and subclass of the Florida Retirement
  126  System for both retirement plans are as follows:
  127  
  128  
  129  Membership Class                         Percentage ofGrossCompensation,EffectiveJuly 1, 2015 2014
  130  
  131  Regular Class                                 2.91% 3.53%     
  132  Special Risk Class                           11.35% 11.01%    
  133  Special Risk Administrative Support Class     3.71% 4.18%     
  134  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders     6.48% 6.30%     
  135  Elected Officers’ Class— Justices, Judges    11.39% 10.10%    
  136  Elected Officers’ Class— County Elected Officers     8.48% 8.36%     
  137  Senior Management Class                       4.32% 4.80%     
  138  DROP                                          4.10% 4.30%     
  139         (5) In order to address unfunded actuarial liabilities of
  140  the system, the required employer retirement contribution rates
  141  for each membership class and subclass of the Florida Retirement
  142  System for both retirement plans are as follows:
  143  
  144  
  145  Membership Class                         Percentage ofGrossCompensation,EffectiveJuly 1, 2015 2014
  146  
  147  Regular Class                                 2.65% 2.54%     
  148  Special Risk Class                            8.99% 7.51%     
  149  Special Risk Administrative Support Class    27.54% 36.59%    
  150  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders    37.62% 38.66%    
  151  Elected Officers’ Class— Justices, Judges    22.62% 21.77%    
  152  Elected Officers’ Class— County Elected Officers    32.09% 33.58%    
  153  Senior Management Service Class              15.41% 15.04%    
  154  DROP                                          7.12% 6.72%     
  155         Section 6. The Legislature finds that a proper and
  156  legitimate state purpose is served when employees, officers, and
  157  retirees of the state and its political subdivisions, and the
  158  dependents, survivors, and beneficiaries of such employees,
  159  officers, and retirees, are extended the basic protections
  160  afforded by governmental retirement systems. These persons must
  161  be provided benefits that are fair and adequate and that are
  162  managed, administered, and funded in an actuarially sound
  163  manner, as required by s. 14, Article X of the State
  164  Constitution and part VII of chapter 112, Florida Statutes.
  165  Therefore, the Legislature determines and declares that this act
  166  fulfills an important state interest.
  167         Section 7. The Legislature finds that a proper and
  168  legitimate state purpose is served when employees, officers, and
  169  retirees of the state and its political subdivisions, and the
  170  dependents, survivors, and beneficiaries of such employees,
  171  officers, and retirees, are extended the basic protections
  172  afforded by governmental retirement systems that provide fair
  173  and adequate benefits, including health insurance subsidies, and
  174  that are managed, administered, and funded in a sustainable
  175  manner. Therefore, the Legislature determines and declares that
  176  this act fulfills an important state interest.
  177         Section 8. If any law amended by this act was also amended
  178  by a law enacted during the 2015 Regular Session of the
  179  Legislature, such laws shall be construed as if enacted during
  180  the same session of the Legislature, and full effect shall be
  181  given to each if possible.
  182         Section 9. Except as otherwise expressly provided in this
  183  act and except for this section, which shall take effect upon
  184  becoming a law, this act shall take effect July 1, 2015, or, if
  185  this act fails to become a law until after that date, it shall
  186  take effect upon becoming a law and operate retroactively to
  187  July 1, 2015.