Senate Bill sb2438

    Florida Senate - 2004                                  SB 2438

    By Senator Posey





    24-1899-04

  1                      A bill to be entitled

  2         An act relating to retirement; amending s.

  3         121.021, F.S.; redefining the term "average

  4         final compensation" with respect to the Florida

  5         Retirement System; revising contribution rates

  6         as part of the funding process; providing a

  7         declaration of important state interest;

  8         providing an effective date.

  9  

10  Be It Enacted by the Legislature of the State of Florida:

11  

12         Section 1.  Subsection (24) of section 121.021, Florida

13  Statutes, is amended to read:

14         121.021  Definitions.--The following words and phrases

15  as used in this chapter have the respective meanings set forth

16  unless a different meaning is plainly required by the context:

17         (24)  "Average final compensation" means the average of

18  the 3 5 highest fiscal years of compensation for creditable

19  service prior to retirement, termination, or death. For

20  in-line-of-duty disability benefits, if less than 3 5 years of

21  creditable service have been completed, the term "average

22  final compensation" means the average annual compensation of

23  the total number of years of creditable service. Each year

24  used in the calculation of average final compensation shall

25  commence on July 1.

26         (a)  The average final compensation shall include:

27         1.  Accumulated annual leave payments, not to exceed

28  500 hours; and

29         2.  All payments defined as compensation in subsection

30  (22).

31         (b)  The average final compensation shall not include:

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2438
    24-1899-04




 1         1.  Compensation paid to professional persons for

 2  special or particular services;

 3         2.  Payments for accumulated sick leave made due to

 4  retirement or termination;

 5         3.  Payments for accumulated annual leave in excess of

 6  500 hours;

 7         4.  Bonuses as defined in subsection (47);

 8         5.  Third party payments made on and after July 1,

 9  1990; or

10         6.  Fringe benefits (for example, automobile allowances

11  or housing allowances).

12         Section 2.  Effective July 1, 2004, for the purposes of

13  funding the 3-year average final compensation benefit change,

14  the contribution rate for the below-named classes of the

15  Florida Retirement System shall be increased, as follows:

16         (a)  The contribution rate that applies to the Regular

17  Class of the Florida Retirement System shall be increased by

18  1.06 percentage points.

19         (b)  The contribution rate that applies to the Special

20  Risk Class of the Florida Retirement System shall be increased

21  by 2.14 percentage points.

22         (c)  The contribution rate that applies to the Special

23  Risk Administrative Support Class of the Florida Retirement

24  System shall be increased by 1.67 percentage points.

25         (d)  The contribution rate that applies to the Judicial

26  subclass of the Elected Officers' Class of the Florida

27  Retirement System shall increase by 1.87 percentage points.

28         (e)  The contribution rate that applies to the

29  legislative-attorney-Cabinet subclass of the Elected Officers'

30  Class of the Florida Retirement Class shall be increased by

31  1.79 percentage points.

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2438
    24-1899-04




 1         (f)  The contribution rate that applies to the County

 2  Officers' subclass of the Elected Officers' Class of the

 3  Florida Retirement System shall be increased by 1.66

 4  percentage points.

 5         (g)  The contribution rate that applies to the Senior

 6  Management Service Class of the Florida Retirement System

 7  shall be increased by 1.45 percentage points.

 8  

 9  These increases shall be in addition to all changes to such

10  contribution rates which may be enacted into law to take

11  effect on that date. The Division of Statutory Revision is

12  directed to adjust the contribution rates set forth in

13  sections 121.052, 121.055, and 121.071, Florida Statutes.

14         Section 3.  The Legislature finds that a proper and

15  legitimate state purpose is served when employees and retirees

16  of the state and its political subdivisions and the

17  dependents, survivors, and beneficiaries of such employees and

18  retirees are extended the basic protections afforded by

19  governmental retirement systems that provide fair and adequate

20  benefits and that are managed, administered, and funded in an

21  actuarially sound manner, as required by Section 14, Article

22  X, of the State Constitution and part VII of chapter 112,

23  Florida Statutes. Therefore, the Legislature determines and

24  declares that this act fulfills an important state interest.

25         Section 4.  This act shall take effect July 1, 2004.

26  

27            *****************************************

28                          SENATE SUMMARY

29    Redefines the term "average final compensation" for
      purposes of the Florida Retirement System to mean the
30    average of the 3 highest fiscal years of compensation
      rather than the 5 highest fiscal years of compensation.
31    Revises the contribution rates to conform.

                                  3

CODING: Words stricken are deletions; words underlined are additions.