Senate Bill 1026e1
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1 A bill to be entitled
2 An act relating to the Florida Retirement
3 System; amending ss. 121.021, 121.0515,
4 121.052, 121.053, 121.055, 121.081, 121.091,
5 121.1115, 121.1122, 121.031, and 121.121, F.S.;
6 prescribing the method for calculating average
7 final compensation; providing that members
8 employed in a regularly established position
9 shall be vested after 5 years of creditable
10 service; providing that any terminated,
11 inactive member must be actively employed in a
12 covered position for 1 calendar year or more on
13 or after the bill's effective date to achieve
14 vested status with 5 years of service;
15 providing for employer contribution rate
16 increases to each membership class; adding to
17 the Special Risk Class of membership certain
18 aerial firefighting surveillance positions;
19 upgrading service credit for certain years for
20 special risk members; providing for funding of
21 changes to the definition of average final
22 compensation from the assets of the Florida
23 Retirement System Trust Fund in an amount and
24 manner sufficient to maintain actuarial
25 soundness; providing for employer contribution
26 rate decreases to each membership class;
27 providing for the development of a rate
28 stabilization mechanism; providing for funding
29 of the 1999 actuarial experience study from
30 excess assets of the Florida Retirement System
31 Trust Fund; adding assistant state attorneys,
1
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1 assistant statewide prosecutors, and assistant
2 public defenders to the Senior Management
3 Service Class of the system; providing a
4 legislative declaration of an important state
5 interest; providing an appropriation; providing
6 effective dates.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsections (24), (29), and (45) of section
11 121.021, Florida Statutes, are amended to read:
12 121.021 Definitions.--The following words and phrases
13 as used in this chapter have the respective meanings set forth
14 unless a different meaning is plainly required by the context:
15 (24) "Average final compensation" means the average of
16 the 3 5 highest fiscal years of compensation for creditable
17 service prior to retirement, termination, or death. For
18 in-line-of-duty disability benefits, if less than 3 5 years of
19 creditable service have been completed, the term "average
20 final compensation" means the average annual compensation of
21 the total number of years of creditable service. Each year
22 used in the calculation of average final compensation shall
23 commence on July 1.
24 (a) The average final compensation shall include:
25 1. Accumulated annual leave payments, not to exceed
26 500 hours; and
27 2. All payments defined as compensation in subsection
28 (22).
29 (b) The average final compensation shall not include:
30 1. Compensation paid to professional persons for
31 special or particular services;
2
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1 2. Payments for accumulated sick leave made due to
2 retirement or termination;
3 3. Payments for accumulated annual leave in excess of
4 500 hours;
5 4. Bonuses as defined in subsection (47);
6 5. Third party payments made on and after July 1,
7 1990; or
8 6. Fringe benefits (for example, automobile allowances
9 or housing allowances).
10 (29) "Normal retirement date" means the first day of
11 any month following the date a member attains one of the
12 following statuses:
13 (a) If a Regular Class member, the member:
14 1. Completes 5 10 or more years of creditable service
15 and attains age 62; or
16 2. Completes 30 years of creditable service,
17 regardless of age, which may include a maximum of 4 years of
18 military service credit as long as such credit is not claimed
19 under any other system.
20 (b) If a Special Risk Class member, the member:
21 1. Completes 5 10 or more years of creditable service
22 in the Special Risk Class and attains age 55;
23 2. Completes 25 years of creditable service in the
24 Special Risk Class, regardless of age; or
25 3. Completes 25 years of creditable service and
26 attains age 52, which service may include a maximum of 4 years
27 of military service credit as long as such credit is not
28 claimed under any other system and the remaining years are in
29 the Special Risk Class.
30 (c) If a Senior Management Service Class member, the
31 member:
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1 1. Completes 5 7 years of creditable service in the
2 Senior Management Service Class and attains age 62; or
3 2. Completes 30 years of any creditable service,
4 regardless of age, which may include a maximum of 4 years of
5 military service credit as long as such credit is not claimed
6 under any other system.
7 (d) If an Elected Officers' Class member, the member:
8 1. Completes 5 8 years of creditable service in the
9 Elected Officers' Class and attains age 62; or
10 2. Completes 30 years of any creditable service,
11 regardless of age, which may include a maximum of 4 years of
12 military service credit as long as such credit is not claimed
13 under any other system.
14
15 "Normal retirement age" is attained on the "normal retirement
16 date."
17 (45)(a) "Vested" or "vesting" means the guarantee that
18 a member is eligible to receive a future retirement benefit
19 upon completion of the required years of creditable service
20 for the employee's class of membership, even though the member
21 may have terminated covered employment before reaching normal
22 or early retirement date. Being vested does not entitle a
23 member to a disability benefit based on a disability caused by
24 an injury or disease that occurs after termination of covered
25 employment.
26 (b) Effective July 1, 2000, a 5-year vesting
27 requirement shall be implemented for the Florida Retirement
28 System. Pursuant thereto:
29 1. Any member employed in a regularly established
30 position on July 1, 2000, who completes or has completed a
31
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1 total of 5 years of creditable service will be considered
2 vested as described in paragraph (a).
3 2. Any member not employed in a regularly established
4 position on July 1, 2000, will be deemed vested upon
5 completion of 5 years of creditable service, provided that
6 such member is employed in a covered position for at least 1
7 work year after July 1, 2000. However, no member shall be
8 required to complete more years of creditable service than
9 would have been required for that member to vest under
10 retirement laws in effect before July 1, 2000.
11 Section 2. Subsection (2) and paragraph (a) of
12 subsection (7) of section 121.0515, Florida Statutes, are
13 amended to read:
14 121.0515 Special risk membership; criteria;
15 designation and removal of classification; credits for past
16 service and prior service; retention of special risk normal
17 retirement date.--
18 (2) CRITERIA.--A member, to be designated as a special
19 risk member, must meet the following criteria:
20 (a) The member must be employed as a law enforcement
21 officer and be certified, or required to be certified, in
22 compliance with s. 943.1395; however, sheriffs and elected
23 police chiefs shall be excluded from meeting the certification
24 requirements of this paragraph. In addition, the member's
25 duties and responsibilities must include the pursuit,
26 apprehension, and arrest of law violators or suspected law
27 violators; or the member must be an active member of a bomb
28 disposal unit whose primary responsibility is the location,
29 handling, and disposal of explosive devices; or the member
30 must be the supervisor or command officer of a member or
31 members who have such responsibilities; provided, however,
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1 administrative support personnel, including, but not limited
2 to, those whose primary duties and responsibilities are in
3 accounting, purchasing, legal, and personnel, shall not be
4 included;
5 (b) The member must be employed as a firefighter and
6 be certified, or required to be certified, in compliance with
7 s. 633.35 and be employed solely within the fire department of
8 a local government the employer, or an agency of state
9 government with firefighting responsibilities. In addition,
10 the member's duties and responsibilities must include
11 on-the-scene fighting of fires or direct supervision of
12 firefighting units or aerial firefighting surveillance
13 performed by fixed-wing pilots employed by the Department of
14 Agriculture and Consumer Services, Division of Forestry, or
15 the member must be the supervisor or command officer of a
16 member or members who have such responsibilities; provided,
17 however, administrative support personnel, including, but not
18 limited to, those whose primary duties and responsibilities
19 are in accounting, purchasing, legal, and personnel, shall not
20 be included;
21 (c) The member must be employed as a correctional
22 officer and be certified, or required to be certified, in
23 compliance with s. 943.1395. In addition, the member's
24 primary duties and responsibilities must be the custody, and
25 physical restraint when necessary, of prisoners or inmates
26 within a prison, jail, or other criminal detention facility,
27 or while on work detail outside the facility, or while being
28 transported; or the member must be the supervisor or command
29 officer of a member or members who have such responsibilities;
30 provided, however, administrative support personnel,
31 including, but not limited to, those whose primary duties and
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1 responsibilities are in accounting, purchasing, legal, and
2 personnel, shall not be included; however, superintendents and
3 assistant superintendents shall participate in the Special
4 Risk Class; or
5 (d) The member must be employed by a licensed Advance
6 Life Support (ALS) or Basic Life Support (BLS) employer as an
7 emergency medical technician or a paramedic and be certified
8 in compliance with s. 401.27. In addition, the member's
9 primary duties and responsibilities must include on-the-scene
10 emergency medical care. However, administrative support
11 personnel, including, but not limited to, those whose primary
12 responsibilities are in accounting, purchasing, legal, and
13 personnel, shall not be included.
14 (7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT
15 DATE.--
16 (a) A special risk member who is moved or reassigned
17 to a nonspecial risk law enforcement, firefighting,
18 correctional, or emergency medical care administrative support
19 position with the same agency, or who is subsequently employed
20 in such a position with any law enforcement, firefighting,
21 correctional, or emergency medical care agency under the
22 Florida Retirement System, shall participate in the Special
23 Risk Administrative Support Class and shall earn credit for
24 such service at the same percentage rate as that earned by a
25 regular member. Notwithstanding the provisions of subsection
26 (4), service in such an administrative support position shall,
27 for purposes of s. 121.091, apply toward satisfaction of the
28 special risk normal retirement date, as defined in s.
29 121.021(29)(b), provided that, while in such position, the
30 member remains certified as a law enforcement officer,
31 firefighter, correctional officer, emergency medical
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1 technician, or paramedic; remains subject to reassignment at
2 any time to a position qualifying for special risk membership;
3 and completes an aggregate of 5 10 or more years of service as
4 a designated special risk member prior to retirement.
5 Section 3. Paragraphs (b) and (c) of subsection (12)
6 of section 121.052, Florida Statutes, are amended to read:
7 121.052 Membership class of elected officers.--
8 (12) BENEFITS.--
9 (b) The benefit provisions of s. 121.091(2)-(6), (8),
10 (9), and (11), relating to benefits payable for dual normal
11 retirement ages, early retirement, disability retirement,
12 termination benefits, optional forms of retirement,
13 designation of beneficiaries, employment after retirement, and
14 method of computing actuarial equivalent, respectively, shall
15 also apply to members of the Elected Officers' Class, except
16 that only 8 years of creditable service in this class are
17 needed to attain the benefits specified in s. 121.091(3) and
18 (5). These provisions shall be construed in such manner as to
19 make them compatible with the provisions of this section.
20 (c) The benefit provisions of s. 121.091(7), relating
21 to death benefits, shall apply to members of the Elected
22 Officers' Class and shall be construed in such manner as to
23 make them compatible with the provisions of this section;
24 however, only 8 years of creditable service in this class are
25 needed to obtain such benefits, except that:
26 1. If any elected official dies in office who would
27 have been vested under the Elected Officers' Class, any other
28 class of the Florida Retirement System, or any other
29 state-administered retirement system, if the official had
30 lived to complete his or her term of office, the official's
31 spouse may elect to leave the official's retirement
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1 contributions in the retirement trust fund and pay into said
2 fund any required contributions which would have been paid by
3 the officer or the employer had the officer lived to complete
4 the term of office.
5 2. If a deceased member's surviving spouse as
6 described in subparagraph 1. previously received a refund of
7 the member's contributions made to the retirement trust fund,
8 the surviving spouse may pay into the retirement trust fund an
9 amount equal to the deceased member's contributions previously
10 refunded, together with interest at 4 percent compounded
11 annually on the amount of such refunded contributions from the
12 date of refund until July 1, 1975, and at 6.5 percent
13 compounded annually thereafter to the date of payment, plus
14 such additional contributions as may be required under
15 subparagraph 1., in order to become vested, as applicable.
16
17 Upon conclusion of the term of office to which the deceased
18 officer was elected, a spouse who pays into the retirement
19 trust fund such additional or refunded contributions, plus
20 interest, shall be eligible to receive a monthly benefit in
21 the same manner as the surviving spouse of a member who dies
22 after accumulating the required number of years of creditable
23 service as described herein.
24 Section 4. Paragraph (a) of subsection (1) of section
25 121.053, Florida Statutes, is amended to read:
26 121.053 Participation in the Elected Officers' Class
27 for retired members.--
28 (1)(a) Any member who retired under any existing
29 system as defined in s. 121.021(2), and receives a benefit
30 thereof, and who serves in an office covered by the Elected
31 Officers' Class for a period of at least 5 8 years, shall be
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1 entitled to receive an additional retirement benefit for such
2 elected officer service prior to July 1, 1990, under the
3 Elected Officers' Class of the Florida Retirement System, as
4 follows:
5 1. Upon completion of 5 8 or more years of creditable
6 service in an office covered by the Elected Officers' Class,
7 s. 121.052, such member shall notify the administrator of his
8 or her intent to purchase elected officer service prior to
9 July 1, 1990, and shall pay the member contribution applicable
10 for the period being claimed, plus 4 percent interest
11 compounded annually from the first year of service claimed
12 until July 1, 1975, and 6.5 percent interest compounded
13 annually thereafter, until full payment is made to the Florida
14 Retirement System Trust Fund; however, such member may
15 purchase retirement credit under the Elected Officers' Class
16 only for such service as an elected officer.
17 2. Upon payment of the amount specified in
18 subparagraph 1., the employer shall pay into the Florida
19 Retirement System Trust Fund the applicable employer
20 contribution for the period of elected officer service prior
21 to July 1, 1990, being claimed by the member, plus 4 percent
22 interest compounded annually from the first year of service
23 claimed until July 1, 1975, and 6.5 percent interest
24 compounded annually thereafter, until full payment is made to
25 the Florida Retirement System Trust Fund.
26 Section 5. Paragraph (h) of subsection (1) and
27 paragraph (b) of subsection (4) of section 121.055, Florida
28 Statutes, are amended to read:
29 121.055 Senior Management Service Class.--There is
30 hereby established a separate class of membership within the
31 Florida Retirement System to be known as the "Senior
10
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1 Management Service Class," which shall become effective
2 February 1, 1987.
3 (1)
4 (h)1. Except as provided in subparagraph 3., effective
5 January 1, 1994, participation in the Senior Management
6 Service Class shall be compulsory for the State Courts
7 Administrator and the Deputy State Courts Administrators, the
8 Clerk of the Supreme Court, the Marshal of the Supreme Court,
9 the Executive Director of the Justice Administrative
10 Commission, the Capital Collateral Representative, the clerks
11 of the district courts of appeals, the marshals of the
12 district courts of appeals, and the trial court administrator
13 in each judicial circuit. Effective January 1, 1994,
14 additional positions in the offices of the state attorney and
15 public defender in each judicial circuit may be designated for
16 inclusion in the Senior Management Service Class of the
17 Florida Retirement System, provided that:
18 a. Positions to be included in the class shall be
19 designated by the state attorney or public defender, as
20 appropriate. Notice of intent to designate positions for
21 inclusion in the class shall be published once a week for 2
22 consecutive weeks in a newspaper of general circulation
23 published in the county or counties affected, as provided in
24 chapter 50.
25 b. One nonelective full-time position may be
26 designated for each state attorney and public defender
27 reporting to the Department of Management Services; for
28 agencies with 200 or more regularly established positions
29 under the state attorney or public defender, additional
30 nonelective full-time positions may be designated, not to
31
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1 exceed 0.5 percent of the regularly established positions
2 within the agency.
3 c. Each position added to the class must be a
4 managerial or policymaking position filled by an employee who
5 serves at the pleasure of the state attorney or public
6 defender without civil service protection, and who:
7 (I) Heads an organizational unit; or
8 (II) Has responsibility to effect or recommend
9 personnel, budget, expenditure, or policy decisions in his or
10 her areas of responsibility.
11 2. Participation in this class shall be compulsory,
12 except as provided in subparagraph 3., for any judicial
13 employee who holds a position designated for coverage in the
14 Senior Management Service Class, and such participation shall
15 continue until the employee terminates employment in a covered
16 position. Effective January 1, 2001, participation in this
17 class is compulsory for assistant state attorneys, assistant
18 statewide prosecutors, and assistant public defenders.
19 3. In lieu of participation in the Senior Management
20 Service Class, such members may participate in the Senior
21 Management Service Optional Annuity Program as established in
22 subsection (6).
23 (4)
24 (b) Service in an eligible position prior to February
25 1, 1987, or after January 31, 1987, shall satisfy the
26 requirement of attaining the normal retirement date as defined
27 in s. 121.021(29) for a Senior Management Service Class
28 member, provided the employee is a member of the Senior
29 Management Service Class after January 31, 1987. A member of
30 this class who fails to complete 5 7 years of creditable
31 service in an eligible position shall be required to satisfy
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1 the requirements for the normal retirement date for a regular
2 member as provided in s. 121.021(29).
3 Section 6. Paragraph (i) of subsection (1) and
4 paragraph (b) of subsection (2) of section 121.081, Florida
5 Statutes, are amended to read:
6 121.081 Past service; prior service;
7 contributions.--Conditions under which past service or prior
8 service may be claimed and credited are:
9 (1)
10 (i) An employee of a state agency who was a member of
11 a state-administered retirement system and who was granted
12 educational leave with pay pursuant to a written educational
13 leave-with-pay policy may claim such period of educational
14 leave as past service subject to the following conditions:
15 1. The educational leave must have occurred prior to
16 December 31, 1971;
17 2. The member must have completed at least 5 10 years
18 of creditable service excluding the period of the educational
19 leave;
20 3. The employee must have returned to employment with
21 a state agency employer who participated in the retirement
22 system, which return was immediately upon termination of the
23 educational leave, and must have remained on the employer's
24 payroll for at least 1 calendar month following the return to
25 employment;
26 4. The employee must be a member of the Florida
27 Retirement System at the time he or she claims such service;
28 5. Not more than 24 months of creditable service may
29 be claimed for such period of educational leave with pay;
30 6. The service must not be claimed under any other
31 state or federal retirement system; and
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1 7. The member must pay to the retirement trust fund
2 for claiming such past-service credit an amount equal to 8
3 percent of his or her gross annual salary immediately prior to
4 the educational leave with pay for each year of past service
5 claimed, plus 4 percent interest thereon compounded annually
6 each June 30 from the first year of service claimed until July
7 1, 1975, and 6.5 percent interest thereafter on the unpaid
8 balance compounded annually each June 30 until paid.
9 (2) Prior service, as defined in s. 121.021(19), may
10 be claimed as creditable service under the Florida Retirement
11 System after a member has been reemployed for 1 complete year
12 of creditable service within a period of 12 consecutive
13 months, except as provided in paragraph (c). Service performed
14 as a participant of the optional retirement program for the
15 State University System under s. 121.35 or the Senior
16 Management Service Optional Annuity Program under s. 121.055
17 may be used to satisfy the reemployment requirement of 1
18 complete year of creditable service. The member shall not be
19 permitted to make any contributions for prior service until
20 after completion of the 1 year of creditable service. The
21 required contributions for claiming the various types of prior
22 service are:
23 (b) For prior service performed prior to the date the
24 system became becomes noncontributory for the member, and for
25 which the member had credit under the Florida Retirement
26 System and received a refund of contributions upon termination
27 of employment, the member shall contribute at the rate that
28 was required of him or her during the period of service being
29 claimed, on all salary received during such period, plus 4
30 percent interest compounded annually from the date of refund
31 until July 1, 1975, and 6.5 percent interest compounded
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1 annually thereafter, until the full payment is made to the
2 Florida Retirement System Trust Fund.
3 Section 7. Paragraph (a) of subsection (1), paragraphs
4 (a), (h), and (j) of subsection (4) of section 121.091,
5 Florida Statutes, are amended to read:
6 121.091 Benefits payable under the system.--Benefits
7 may not be paid under this section unless the member has
8 terminated employment as provided in s. 121.021(39)(a) or
9 begun participation in the Deferred Retirement Option Program
10 as provided in subsection (13), and a proper application has
11 been filed in the manner prescribed by the department. The
12 department may cancel an application for retirement benefits
13 when the member or beneficiary fails to timely provide the
14 information and documents required by this chapter and the
15 department's rules. The department shall adopt rules
16 establishing procedures for application for retirement
17 benefits and for the cancellation of such application when the
18 required information or documents are not received.
19 (1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or
20 her normal retirement date, the member, upon application to
21 the administrator, shall receive a monthly benefit which shall
22 begin to accrue on the first day of the month of retirement
23 and be payable on the last day of that month and each month
24 thereafter during his or her lifetime. The normal retirement
25 benefit, including any past or additional retirement credit,
26 may not exceed 100 percent of the average final compensation.
27 The amount of monthly benefit shall be calculated as the
28 product of A and B, subject to the adjustment of C, if
29 applicable, as set forth below:
30 (a)1. For creditable years of Regular Class service, A
31 is 1.60 percent of the member's average final compensation, up
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1 to the member's normal retirement date. Upon completion of the
2 first year after the normal retirement date, A is 1.63 percent
3 of the member's average final compensation. Following the
4 second year after the normal retirement date, A is 1.65
5 percent of the member's average final compensation. Following
6 the third year after the normal retirement date, and for
7 subsequent years, A is 1.68 percent of the member's average
8 final compensation.
9 2. For creditable years of special risk service, A is:
10 a. A is 2.00 Two percent of the member's average final
11 compensation for all creditable years prior to October 1,
12 1974;
13 b. A is 3.00 Three percent of the member's average
14 final compensation for all creditable years after September
15 30, 1974, and before October 1, 1978;
16 c. A is 2.00 Two percent of the member's average final
17 compensation for all creditable years after September 30,
18 1978, and before January 1, 1989;
19 d. A is 2.20 Two and two-tenths percent of the
20 member's final monthly compensation for all creditable years
21 after December 31, 1988, and before January 1, 1990;
22 e. A is 2.40 Two and four-tenths percent of the
23 member's average final compensation for all creditable years
24 after December 31, 1989, and before January 1, 1991;
25 f. A is 2.60 Two and six-tenths percent of the
26 member's average final compensation for all creditable years
27 after December 31, 1990, and before January 1, 1992;
28 g. A is 2.80 Two and eight-tenths percent of the
29 member's average final compensation for all creditable years
30 after December 31, 1991, and before January 1, 1993; and
31
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1 h. A is 3.00 Three percent of the member's average
2 final compensation for all creditable years after December 31,
3 1992;
4 i. A is 3.00 percent of the member's average final
5 compensation for all creditable years of service after
6 September 30, 1978, and before January 1, 1993, for any
7 special risk member who retires after July 1, 2000;
8 3. For creditable years of Senior Management Service
9 Class service after January 31, 1987, A is 2 percent;
10 4. For creditable years of Elected Officers' Class
11 service as a Supreme Court Justice, district court of appeal
12 judge, circuit judge, or county court judge, A is 3 1/3
13 percent of the member's average final compensation, and for
14 all other creditable service in such class, A is 3.00 3
15 percent of average final compensation;
16 (4) DISABILITY RETIREMENT BENEFIT.--
17 (a) Disability retirement; entitlement and effective
18 date.--
19 1. A member who becomes totally and permanently
20 disabled, as defined in paragraph (b), after completing 5
21 years of creditable service, or a member who becomes totally
22 and permanently disabled in the line of duty regardless of
23 service, shall be entitled to a monthly disability benefit;
24 except that any member with less than 5 years of creditable
25 service on July 1, 1980, or any person who becomes a member of
26 the Florida Retirement System on or after such date must have
27 completed 10 years of creditable service prior to becoming
28 totally and permanently disabled in order to receive
29 disability retirement benefits for any disability which occurs
30 other than in the line of duty. However, if a member employed
31 on July 1, 1980, with less than 5 years of creditable service
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1 as of that date, becomes totally and permanently disabled
2 after completing 5 years of creditable service and is found
3 not to have attained fully insured status for benefits under
4 the federal Social Security Act, such member shall be entitled
5 to a monthly disability benefit.
6 2. If the division has received from the employer the
7 required documentation of the member's termination of
8 employment, the effective retirement date for a member who
9 applies and is approved for disability retirement shall be
10 established by rule of the division.
11 3. For a member who is receiving Workers' Compensation
12 payments, the effective disability retirement date may not
13 precede the date the member reaches Maximum Medical
14 Improvement (MMI), unless the member terminates employment
15 prior to reaching MMI.
16 (h) Recovery from disability.--The administrator may
17 require periodic reexaminations at the expense of the
18 retirement fund. The division may adopt rules establishing
19 procedures for conducting and review of such reexaminations.
20 1. If the administrator finds that a member who is
21 receiving disability benefits is, at any time prior to his or
22 her normal retirement date, no longer disabled, the
23 administrator shall direct that the benefits be discontinued.
24 The decision of the administrator on this question shall be
25 final and binding. If such member:
26 a. Does not reenter the employ of an employer and was
27 not vested as of the disability retirement date, he or she
28 shall be entitled to a refund of the excess, if any, of his or
29 her accumulated contributions over the total disability
30 benefits received up to the date of recovery.
31
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1 b. Does not reenter the employ of an employer, but was
2 vested as of the disability retirement date, he or she may
3 elect to receive:
4 (I) A refund of the excess, if any, of his or her
5 accumulated contributions over the total disability benefits
6 received up to the date of recovery; or
7 (II) A deferred benefit commencing on the last day of
8 the month of the normal retirement date which shall be payable
9 on the last day of the month thereafter during his or her
10 lifetime. The amount of such monthly benefit shall be
11 computed in the same manner as for a normal retirement
12 benefit, in accordance with subsection (1), but shall be based
13 on average monthly compensation and creditable service as of
14 the member's disability retirement date.
15 c. Reenters employment of an employer within 6 months
16 after recovery, the member's service will be deemed to have
17 been continuous, but the period beginning with the first month
18 for which he or she received a disability benefit payment and
19 ending with the date he or she reentered employment will not
20 be considered as creditable service for the purpose of
21 computing benefits except as provided in sub-subparagraph d.
22 As used in this section, the term "accumulated contributions"
23 for such member means the excess of the member's accumulated
24 contributions as of the disability retirement date over the
25 total disability benefits received under paragraph (e).
26 d. Terminates his or her disability benefit, reenters
27 covered employment, and is continuously employed for a minimum
28 of 1 year of creditable service, he or she may claim as
29 creditable service the months during which he or she was
30 receiving a disability benefit, upon payment of the required
31 contributions. Contributions shall equal the total required
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1 employee and employer contribution rate applicable during the
2 period the retiree received retirement benefits, multiplied
3 times his or her rate of monthly compensation prior to the
4 commencement of disability retirement for each month of the
5 period claimed, plus 4 percent interest until July 1, 1975,
6 and 6.5 percent interest thereafter, compounded annually each
7 June 30 to the date of payment. If the member does not claim
8 credit for all of the months he or she received disability
9 benefits, the months claimed must be the most recent months of
10 retirement. Such credit for periods of disability, when
11 purchased under the Florida Retirement System, shall apply
12 toward vesting requirements for eligibility to purchase
13 additional credit for other service.
14 2. Both the member receiving disability benefits who
15 reenters employment and the employer employing such disability
16 retiree shall notify the division immediately upon
17 reemployment, and the division shall terminate such member's
18 disability benefits, effective the first day of the month
19 following the month in which notification of recovery is
20 received. If the member is reemployed with a Florida
21 Retirement System employer at the time of benefit termination,
22 and he or she has received disability retirement benefit and
23 salary payments concurrently prior to notifying the division,
24 he or she may elect within 30 days to:
25 a. Retain the retirement benefits received prior to
26 termination of disability benefits and begin receiving
27 retirement service credit effective upon the date of
28 termination of benefits; or
29 b. Repay, within 12 months after his or her decision
30 to receive service credit, the retirement benefits received
31 for each month of reemployment prior to termination of
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1 disability benefits and begin receiving retirement service
2 credit effective upon the date of reemployment. Any such
3 unpaid benefits shall have compound interest of 6.5 percent
4 added June 30.
5
6 A member may not receive both retirement service credit for
7 employment and retirement benefits for the same month.
8 3. If, after recovery of disability and reentry into
9 covered employment, the member again becomes disabled and is
10 again approved for disability retirement, the Option 1 monthly
11 retirement benefit shall not be less than the Option 1 monthly
12 benefit calculated at the time of the previous disability,
13 plus any cost of living increases up to the time the
14 disability benefit was terminated upon his or her reentry into
15 covered employment.
16 (j) Disability retirement of justice or judge by order
17 of Supreme Court.--
18 1. If a member is a justice of the Supreme Court,
19 judge of a district court of appeal, circuit judge, or judge
20 of a county court who has served for 5 10 years or more as an
21 elected constitutional judicial officer, including service as
22 a judicial officer in any court abolished pursuant to Art. V
23 of the State Constitution, and who is retired for disability
24 by order of the Supreme Court upon recommendation of the
25 Judicial Qualifications Commission pursuant to the provisions
26 of Art. V of the State Constitution, the member's Option 1
27 monthly benefit as provided in subparagraph (6)(a)1. shall not
28 be less than two-thirds of his or her monthly compensation as
29 of the member's disability retirement date. Such a member may
30 alternatively elect to receive a disability retirement benefit
31 under any other option as provided in paragraph (6)(a).
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1 2. Should any justice or judge who is a member of the
2 Florida Retirement System be retired for disability by order
3 of the Supreme Court upon recommendation of the Judicial
4 Qualifications Commission pursuant to the provisions of Art. V
5 of the State Constitution, then all contributions to his or
6 her account and all contributions made on his or her behalf by
7 the employer shall be transferred to and deposited in the
8 General Revenue Fund of the state, and there is hereby
9 appropriated annually out of the General Revenue Fund, to be
10 paid into the Florida Retirement System Fund, an amount
11 necessary to pay the benefits of all justices and judges
12 retired from the Florida Retirement System pursuant to Art. V
13 of the State Constitution.
14 Section 8. Paragraph (b) of subsection (1) of section
15 121.1115, Florida Statutes, is amended to read:
16 121.1115 Purchase of retirement credit for
17 out-of-state and federal service.--Effective January 1, 1995,
18 a member of the Florida Retirement System may purchase
19 creditable service for periods of public employment in another
20 state and receive creditable service for such periods of
21 employment. Service with the Federal Government, including any
22 military service, may be claimed. Upon completion of each year
23 of service earned under the Florida Retirement System, a
24 member may purchase up to 1 year of retirement credit for his
25 or her out-of-state service, subject to the following
26 provisions:
27 (1) LIMITATIONS AND CONDITIONS.--To receive credit for
28 the out-of-state service:
29 (b) The member must have completed a minimum of 5 10
30 years of creditable service under the Florida Retirement
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1 System, excluding out-of-state service and in-state service
2 claimed and purchased under s. 121.1122.
3 Section 9. Paragraph (a) of subsection (2) of section
4 121.1122, Florida Statutes, is amended to read:
5 121.1122 Purchase of retirement credit for in-state
6 public service and in-state service in accredited nonpublic
7 schools and colleges, including charter schools and charter
8 technical career centers.--Effective January 1, 1998, a member
9 of the Florida Retirement System may purchase creditable
10 service for periods of certain public or nonpublic employment
11 performed in this state, as provided in this section.
12 (2) LIMITATIONS AND CONDITIONS.--
13 (a) A member is not eligible to receive credit for
14 in-state service under this section until he or she has
15 completed 5 10 years of creditable service under the Florida
16 Retirement System, excluding service purchased under this
17 section and out-of-state service claimed and purchased under
18 s. 121.1115.
19 Section 10. Paragraph (a) of subsection (1) of section
20 121.121, Florida Statutes, is amended to read:
21 121.121 Authorized leaves of absence.--
22 (1) A member may purchase creditable service for up to
23 2 work years of authorized leaves of absence if:
24 (a) The member has completed a minimum of 5 10 years
25 of creditable service, excluding periods for which a leave of
26 absence was authorized;
27 Section 11. Effective July 1, 2000, in order to fund
28 the normal cost for changes in vesting requirements and the
29 computation of average final compensation under the Florida
30 Retirement System, as provided in this act:
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1 (1) The contribution rates that apply to the Regular
2 Class of the Florida Retirement System shall be increased by
3 1.04 percentage points;
4 (2) The contribution rates that apply to the Special
5 Risk Class of the Florida Retirement System shall be increased
6 by 1.98 percentage points;
7 (3) The contribution rates that apply to the Special
8 Risk Administrative Support Class of the Florida Retirement
9 System shall be increased by 1.01 percentage points;
10 (4) The contribution rates that apply to the Judicial
11 sub-class of the Elected Officers' Class of the Florida
12 Retirement System shall be increased by 1.58 percentage
13 points;
14 (5) The contribution rates that apply to the
15 legislative-attorney-Cabinet sub-class of the Elected
16 Officers' Class of the Florida Retirement System shall be
17 increased by 1.63 percentage points;
18 (6) The contribution rates that apply to the County
19 Officers' sub-class of the Elected Officers' Class of the
20 Florida Retirement System shall be increased by 1.31
21 percentage points; and
22 (7) The contribution rates that apply to the Senior
23 Management Service Class of the Florida Retirement System
24 shall be increased by 0.96 percentage points.
25
26 These increases shall be in addition to all other changes to
27 such contribution rates which may be enacted into law to take
28 effect on that date. The Division of Statutory Revision is
29 directed to adjust the contribution rates set forth in
30 sections 121.052, 121.055, and 121.071, Florida Statutes.
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1 Section 12. It is the intent of the Legislature that
2 the net unfunded actuarial past-service liability attributable
3 to the upgrading of special risk service between October 1,
4 1978, and January 1, 1993, and to changes in the vesting
5 requirements and the computation of average final compensation
6 under the Florida Retirement System, as provided in this act,
7 shall be funded by a one-time lump sum payment from the excess
8 actuarial assets of the Florida Retirement System Trust Fund.
9 Section 13. It is the intent of the Legislature that
10 the increased cost attributable to the 1999 actuarial
11 experience study conducted by the system actuaries for the
12 2000-2001 fiscal year shall be funded by a one-time lump sum
13 payment from the excess actuarial assets of the Florida
14 Retirement System Trust Fund. The retirement contribution
15 rates for subsequent years shall be adjusted with the next
16 actuarial valuation of the Florida Retirement System.
17 Section 14. Effective July 1, 2000, and each year
18 thereafter, the Department of Management Services and the
19 consulting actuaries for the Florida Retirement System are
20 directed to annually recognize and determine the amount of any
21 excess actuarial assets that may exist in the Florida
22 Retirement System Trust Fund. Where such excess assets exist,
23 the actuaries shall calculate, as a percent of payroll, the
24 reduction that could be made in the retirement contribution
25 rate for each class and subclass in the Florida Retirement
26 System by applying 10 percent of the excess assets toward the
27 normal cost funding requirements for the system and shall
28 certify such reduced rates to the Department of Management
29 Services for recommendation to the Executive Office of the
30 Governor and the Legislature. If excess actuarial assets are
31 unavailable in any year for rate reduction as described in
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1 this section, the consulting actuaries for the Florida
2 Retirement System shall certify to the Department of
3 Management Services the payroll contribution rate required for
4 each class and subclass of the Florida Retirement System in
5 order to effect and maintain funding for the Florida
6 Retirement System on a sound actuarial basis in compliance
7 with Section 14 of Article X of the State Constitution and
8 part VII of chapter 112, Florida Statutes.
9 Section 15. To implement the provisions of section 14
10 for fiscal year 2000-2001, effective July 1, 2000:
11 (1) The contribution rates that apply to the Regular
12 Class of the Florida Retirement System shall be reduced by
13 3.37 percentage points.
14 (2) The contribution rates that apply to the Special
15 Risk Class of the Florida Retirement System shall be reduced
16 by 3.64 percentage points.
17 (3) The contribution rates that apply to the Special
18 Risk Administrative Support Class of the Florida Retirement
19 System shall be reduced by 4.39 percentage points.
20 (4) The contribution rates that apply to the Judicial
21 sub-class of the Elected Officers' Class of the Florida
22 Retirement System shall be reduced by 7.32 percentage points.
23 (5) The contribution rates that apply to the
24 legislative-attorney-Cabinet subclass of the Elected Officers'
25 Class of the Florida Retirement System shall be reduced by
26 5.19 percentage points.
27 (6) The contribution rates that apply to the County
28 Officers' sub-class of the Elected Officers' Class of the
29 Florida Retirement System shall be reduced by 6.03 percentage
30 points.
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1 (7) The contribution rates that apply to the Senior
2 Management Service Class of the Florida Retirement System
3 shall be reduced by 4.15 percentage points.
4
5 These changes shall be in addition to all other changes to
6 such contribution rates which may be enacted into law to take
7 effect on that date. The Division of Statutory Revision is
8 directed to adjust the contribution rates set forth in
9 sections 121.052, 121.055, and 121.071, Florida Statutes.
10 Section 16. Paragraph (a) of subsection (3) of section
11 121.031, Florida Statutes, is amended to read:
12 121.031 Administration of system; appropriation;
13 oaths; actuarial studies; public records.--
14 (3) The administrator shall cause an actuarial study
15 of the system to be made at least once every 2 years and shall
16 report the results of such study to the Legislature by
17 February 1 prior to the next legislative session.
18 (a) The study shall, at a minimum, conform to the
19 requirements of s. 112.63, with the following exceptions and
20 additions:
21 1. The valuation of plan assets shall be based on a
22 5-year averaging methodology such as that specified in the
23 United States Department of Treasury Regulations, 26 C.F.R. s.
24 1.412(c)(2)-1, or a similar accepted approach designed to
25 attenuate fluctuations in asset values.
26 2. The study shall include a narrative explaining the
27 changes in the covered group over the period between actuarial
28 valuations and the impact of those changes on actuarial
29 results.
30 3. When substantial changes in actuarial assumptions
31 have been made, the study shall reflect the results of an
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1 actuarial assumption as of the current date based on the
2 assumptions utilized in the prior actuarial report.
3 4. The study shall include an analysis of the changes
4 in actuarial valuation results by the factors generating those
5 changes. Such analysis shall reconcile the current actuarial
6 valuation results with those results from the prior valuation.
7 5. The study shall include measures of funding status
8 and funding progress designed to facilitate the assessment of
9 trends over several actuarial valuations with respect to the
10 overall solvency of the system. Such measures shall be adopted
11 by the division and shall be used consistently in all
12 actuarial valuations performed on the system.
13 6. The actuarial model used to determine contribution
14 rates for the purposes of the regular actuarial valuation
15 report shall provide a recommendation on the development of a
16 specific rate-stabilization mechanism. This mechanism shall,
17 as a minimum, define what amounts in excess of full funding
18 shall be held in reserve to offset future unfunded
19 liabilities, thereby minimizing the risk of future increases
20 in contribution rates due to adverse experience, and shall
21 define how any excess above those amounts is to be recognized
22 to reduce retirement system contributions. It is the
23 legislative intent that this mechanism should be developed by
24 pension system finance professionals, taking into account
25 possible volatility in investment returns and the uncertainty
26 over actual growth in plan liabilities. At the same time, the
27 mechanism should not allow an unnecessarily large surplus to
28 accumulate. It is further the intent that, once adopted by the
29 Legislature, the mechanism shall not be altered in response to
30 short-term budget exigencies.
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1 Section 17. The Legislature finds that a proper and
2 legitimate state purpose is served when employees and retirees
3 of the state and of its political subdivisions, and the
4 dependents, survivors, and beneficiaries of such employees and
5 retirees, are extended the basic protections afforded by
6 governmental retirement systems that provide fair and adequate
7 benefits and that are managed, administered, and funded in an
8 actuarially sound manner, as required by section 14, Article X
9 of the State Constitution and part VII of chapter 112 of the
10 Florida Statutes. Therefore, the Legislature hereby
11 determines and declares that the provisions of this act
12 fulfill an important state interest.
13 Section 18. The following sums are appropriated from
14 recurring General Revenue Fund for fiscal year 2000-2001. The
15 sum of $921,000 is appropriated to the Justice Administrative
16 Commission for the purpose of paying the costs associated with
17 adding assistant state attorneys to the Senior Management
18 Service Class in the Florida Retirement System. The sum of
19 $605,000 is appropriated to the Justice Administrative
20 Commission for the purpose of paying the costs associated with
21 adding assistant public defenders to the Senior Management
22 Service Class in the Florida Retirement System. The sum of
23 $24,000 is appropriated to the Department of Legal Affairs,
24 Office of Statewide Prosecutor for the purpose of paying the
25 costs associated with adding assistant statewide prosecutors
26 to the Senior Management Service Class in the Florida
27 Retirement System.
28 Section 19. Except as otherwise provided in this act,
29 this act shall take effect July 1, 2000.
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