HB 0789 2004
1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.021, F.S., revising the definition of "average
4	final compensation"; increasing a contribution rate for
5	certain benefit change funding purposes; providing a
6	declaration of important state interest; providing an
7	effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1. Subsection (24) of section 121.021, Florida
12	Statutes, is amended to read:
13	121.021 Definitions.--The following words and phrases as
14	used in this chapter have the respective meanings set forth
15	unless a different meaning is plainly required by the context:
16	(24) "Average final compensation" means the average of the
17	5 highest fiscal years of compensation for creditable service
18	prior to retirement, termination, or death; however, the
19	"average final compensation" applicable to a member of the
20	Special Risk Class is the average of the 3 highest fiscal years
21	of compensation for creditable service prior to retirement,
22	termination, or death. For in-line-of-duty disability benefits,
23	if less than the number of years specified for calculating
24	"average final compensation" 5 yearsof creditable service have
25	been completed, the term "average final compensation" means the
26	average annual compensation of the total number of years of
27	creditable service. Each year used in the calculation of average
28	final compensation shall commence on July 1.
29	(a) The average final compensation shall include:
30	1. Accumulated annual leave payments, not to exceed 500
31	hours; and
32	2. All payments defined as compensation in subsection
33	(22).
34	(b) The average final compensation shall not include:
35	1. Compensation paid to professional persons for special
36	or particular services;
37	2. Payments for accumulated sick leave made due to
38	retirement or termination;
39	3. Payments for accumulated annual leave in excess of 500
40	hours;
41	4. Bonuses as defined in subsection (47);
42	5. Third party payments made on and after July 1, 1990; or
43	6. Fringe benefits (for example, automobile allowances or
44	housing allowances).
45	Section 2. Effective July 1, 2004, for the purposes of
46	funding the 3-year average final compensation benefit change
47	made by this act, the contribution rate set forth in s.
48	121.071(3), Florida Statutes, for the Special Risk Class of the
49	Florida Retirement System shall be increased by 2.14 percent.
50	This increase shall be in addition to other changes to
51	contribution rates which may be enacted into law to take effect
52	on that date.
53	Section 3. The Legislature finds that a proper and
54	legitimate state purpose is served when employees and retirees
55	of the state and its political subdivisions and the dependents,
56	survivors, and beneficiaries of such employees and retirees are
57	extended the basic protections afforded by governmental
58	retirement systems that provide fair and adequate benefits and
59	that are managed, administered, and funded in an actuarially
60	sound manner, as required by s. 14, Art. X, of the State
61	Constitution and part VII of chapter 112, Florida Statutes.
62	Therefore, the Legislature determines and declares that this act
63	fulfills an important state interest.
64	Section 4. This act shall take effect July 1, 2004.