Senate Bill sb1804
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Florida Senate - 2003 SB 1804
By Senator Campbell
32-673A-03
1 A bill to be entitled
2 An act relating to the Florida Retirement
3 System; amending s. 121.021, F.S.; defining the
4 term "public school member" for purposes of the
5 system; amending s. 121.091, F.S.; providing
6 retirement benefits payable to public school
7 members; providing retroactive applicability;
8 providing for funding of the revision of the
9 Florida Retirement System by this act;
10 providing a finding of important state
11 interest; providing an effective date.
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13 Be It Enacted by the Legislature of the State of Florida:
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15 Section 1. Subsection (62) is added to section
16 121.021, Florida Statutes, to read:
17 121.021 Definitions.--The following words and phrases
18 as used in this chapter have the respective meanings set forth
19 unless a different meaning is plainly required by the context:
20 (62) "Public school member" means a member of the
21 Florida Retirement System Regular Class who is employed by a
22 district school system, a public charter school, or the
23 Florida School for the Deaf and the Blind.
24 Section 2. Subsection (1) of section 121.091, Florida
25 Statutes, is amended to read:
26 121.091 Benefits payable under the system.--Benefits
27 may not be paid under this section unless the member has
28 terminated employment as provided in s. 121.021(39)(a) or
29 begun participation in the Deferred Retirement Option Program
30 as provided in subsection (13), and a proper application has
31 been filed in the manner prescribed by the department. The
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Florida Senate - 2003 SB 1804
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1 department may cancel an application for retirement benefits
2 when the member or beneficiary fails to timely provide the
3 information and documents required by this chapter and the
4 department's rules. The department shall adopt rules
5 establishing procedures for application for retirement
6 benefits and for the cancellation of such application when the
7 required information or documents are not received.
8 (1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or
9 her normal retirement date, the member, upon application to
10 the administrator, shall receive a monthly benefit which shall
11 begin to accrue on the first day of the month of retirement
12 and be payable on the last day of that month and each month
13 thereafter during his or her lifetime. The normal retirement
14 benefit, including any past or additional retirement credit,
15 may not exceed 100 percent of the average final compensation.
16 The amount of monthly benefit shall be calculated as the
17 product of A and B, subject to the adjustment of C, if
18 applicable, as set forth below:
19 (a)1.a. For creditable years of Regular Class service,
20 A is 1.60 percent of the member's average final compensation,
21 up to the member's normal retirement date. Upon completion of
22 the first year after the normal retirement date, A is 1.63
23 percent of the member's average final compensation. Following
24 the second year after the normal retirement date, A is 1.65
25 percent of the member's average final compensation. Following
26 the third year after the normal retirement date, and for
27 subsequent years, A is 1.68 percent of the member's average
28 final compensation.
29 b. For creditable years of Regular Class service,
30 public school members shall have A determined under the
31 provisions of sub-subparagraph 1.a. for service up to the
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Florida Senate - 2003 SB 1804
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1 "applicability date," and according to the following table for
2 service earned after the "applicability date":
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4 Years of Regular Benefit Accrual Rate
5 Class Service
6 0-6 1.60%
7 7-12 1.75%
8 13-18 1.90%
9 Over 18 2.10%
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11 As used in this sub-subparagraph, the term "applicability
12 date" means July 1, 2004, adjusted as follows: for each year
13 of creditable service as a public school member earned after
14 the applicability date, 2 years will be subtracted from the
15 applicability date up to a maximum adjustment of 18 years.
16 2. For creditable years of special risk service, A is:
17 a. Two percent of the member's average final
18 compensation for all creditable years prior to October 1,
19 1974;
20 b. Three percent of the member's average final
21 compensation for all creditable years after September 30,
22 1974, and before October 1, 1978;
23 c. Two percent of the member's average final
24 compensation for all creditable years after September 30,
25 1978, and before January 1, 1989;
26 d. Two and two-tenths percent of the member's final
27 monthly compensation for all creditable years after December
28 31, 1988, and before January 1, 1990;
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1 e. Two and four-tenths percent of the member's average
2 final compensation for all creditable years after December 31,
3 1989, and before January 1, 1991;
4 f. Two and six-tenths percent of the member's average
5 final compensation for all creditable years after December 31,
6 1990, and before January 1, 1992;
7 g. Two and eight-tenths percent of the member's
8 average final compensation for all creditable years after
9 December 31, 1991, and before January 1, 1993;
10 h. Three percent of the member's average final
11 compensation for all creditable years after December 31, 1992;
12 and
13 i. Three percent of the member's average final
14 compensation for all creditable years of service after
15 September 30, 1978, and before January 1, 1993, for any
16 special risk member who retires after July 1, 2000, or any
17 member of the Special Risk Administrative Support Class
18 entitled to retain the special risk normal retirement date who
19 was a member of the Special Risk Class during the time period
20 and who retires after July 1, 2000.
21 3. For creditable years of Senior Management Service
22 Class service after January 31, 1987, A is 2 percent;
23 4. For creditable years of Elected Officers' Class
24 service as a Supreme Court Justice, district court of appeal
25 judge, circuit judge, or county court judge, A is 3 1/3
26 percent of the member's average final compensation, and for
27 all other creditable service in such class, A is 3 percent of
28 average final compensation;
29 (b) B is the number of the member's years and any
30 fractional part of a year of creditable service earned
31 subsequent to November 30, 1970; and
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1 (c) C is the normal retirement benefit credit brought
2 forward as of November 30, 1970, by a former member of an
3 existing system. Such normal retirement benefit credit shall
4 be determined as the product of X and Y when X is the
5 percentage of average final compensation which the member
6 would have been eligible to receive if the member had attained
7 his or her normal retirement date as of November 30, 1970, all
8 in accordance with the existing system under which the member
9 is covered on November 30, 1970, and Y is average final
10 compensation as defined in s. 121.021(25). However, any
11 member of an existing retirement system who is eligible to
12 retire and who does retire, become disabled, or die prior to
13 April 15, 1971, may have his or her retirement benefits
14 calculated on the basis of the best 5 of the last 10 years of
15 service.
16 (d) A member's average final compensation shall be
17 determined by formula to obtain the coverage for the 5 highest
18 fiscal years' salaries, calculated as provided by rule.
19 Section 3. It is the intent of the Legislature that
20 costs attributable to benefit increases for regular class
21 public school members shall be funded by recognition of lump
22 sums from the excess actuarial assets of the Florida
23 Retirement System Trust Fund as follows:
24 (1) For fiscal year 2004-2005, the lump sum to be
25 recognized shall be the lesser of:
26 (a) The amount available under the rate stabilization
27 mechanism described in section 121.031, Florida Statutes; or
28 (b) The amount needed to pay the annual cost
29 attributable to the increased benefit accrual rate for public
30 school members. The annual cost shall consist of the increase
31 in normal cost for public school members plus payment of the
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1 30-year amortization amount of the increase in the actuarial
2 accrued liability attributable to the increase, equal to 2.51
3 percent of the public school member payroll or $212 million
4 for the fiscal year 2004-2005.
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6 If, after the recognition of excess actuarial assets pursuant
7 to this subsection, there remains an unfunded cost, the
8 contribution rate applicable to public school members shall be
9 increased by the difference between the annual cost and the
10 amount provided by the excess actuarial assets, unless the
11 Legislature provides an alternate funding mechanism.
12 (2) For fiscal years starting 2005-2006 and thereafter,
13 the Legislature shall, as provided in subsection (1), continue
14 to fund on an ongoing basis the annual cost attributable to
15 the formula improvements.
16 Section 4. The Legislature finds that a proper and
17 legitimate state purpose is served when employees and retirees
18 of the state and of its political subdivisions, and the
19 dependents, survivors, and beneficiaries of such employees and
20 retirees, are extended the basic protections afforded by
21 governmental retirement systems that provide fair and adequate
22 benefits that are managed, administered, and funded in an
23 actuarially sound manner, as required by Section 14, Article X
24 of the State Constitution and part VII of chapter 112, Florida
25 Statutes. Therefore, the Legislature determines and declares
26 that this act fulfills an important state interest.
27 Section 5. This act shall take effect July 1, 2004.
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2 SENATE SUMMARY
3 Increases retirement benefits for members of the Florida
Retirement System who are employed by a public school
4 system, a charter school, or the Florida School for the
Deaf and the Blind.
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