Senate Bill sb1936

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    Florida Senate - 2006                                  SB 1936

    By Senator Garcia





    40-1238-06                                          See HB 671

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.0515, F.S.; increasing

  4         the percentage of the Special Risk Class

  5         accrual value at which certain employees may

  6         purchase additional retirement credit for past

  7         service; authorizing certain employees to

  8         purchase additional retirement credit to

  9         upgrade prior service to Special Risk Class

10         service; providing for the calculation of

11         contributions for such service upgrade;

12         authorizing the employer to purchase such

13         additional credit for the employee; providing

14         for contribution rate increases to fund

15         benefits provided in s. 121.0515, F.S., as

16         amended; directing the Division of Statutory

17         Revision to adjust contribution rates set forth

18         in s. 121.71, F.S.; providing a statement of

19         important state interest; providing an

20         effective date.

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

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24         Section 1.  Subsection (5) of section 121.0515, Florida

25  Statutes, is amended, and paragraph (c) is added to subsection

26  (9) of that section, to read:

27         121.0515  Special risk membership.--

28         (5)  CREDIT FOR PAST SERVICE.--A special risk member

29  may purchase retirement credit in the Special Risk Class based

30  upon past service, and may upgrade retirement credit for such

31  past service, to the extent of 3 2 percent of the member's

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    Florida Senate - 2006                                  SB 1936
    40-1238-06                                          See HB 671




 1  average monthly compensation as specified in s. 121.091(1)(a)

 2  for such service as follows:

 3         (a)  The member may purchase special risk credit for

 4  past service with a city or special district which has elected

 5  to join the Florida Retirement System, or with a participating

 6  agency to which a member's governmental unit was transferred,

 7  merged, or consolidated as provided in s. 121.081(1)(f), if

 8  the member was employed with the city or special district at

 9  the time it commenced participating in the Florida Retirement

10  System or with the governmental unit at the time of its

11  transfer, merger, or consolidation with the participating

12  agency. The service must satisfy the criteria set forth in

13  subsection (2) for special risk membership as a law

14  enforcement officer, firefighter, or correctional officer or

15  an emergency medical technician or a paramedic whose employer

16  was a licensed Advance Life Support (ALS) or Basic Life

17  Support (BLS) provider; however, no certificate or waiver of

18  certificate of compliance with s. 943.1395 or s. 633.35 shall

19  be required for such service.

20         (b)  Contributions for upgrading the additional special

21  risk credit pursuant to this subsection shall be equal to the

22  difference in the contributions paid and the special risk

23  percentage rate of gross salary in effect at the time of

24  purchase for the period being claimed, plus interest thereon

25  at the rate of 4 percent a year compounded annually from the

26  date of such service until July 1, 1975, and 6.5 percent a

27  year thereafter until the date of payment. This past service

28  may be purchased by the member or by the employer on behalf of

29  the member.

30         (9)  CREDIT FOR UPGRADED SERVICE.--

31  

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    Florida Senate - 2006                                  SB 1936
    40-1238-06                                          See HB 671




 1         (c)  Any member of the Special Risk Class who has

 2  earned creditable service in the Regular Class of the Florida

 3  Retirement System between July 1, 1978, and June 30, 1984,

 4  while attending a certified training academy or other

 5  certified training facility approved by the employer for

 6  certification as a law enforcement officer or correctional

 7  officer, which service is within the purview of the Special

 8  Risk Class, may purchase such service to upgrade to Special

 9  Risk Class service, to the extent of the percentages of the

10  member's average final compensation as provided in s.

11  121.091(1)(a)2. Contributions for upgrading such service to

12  Special Risk Class credit under this paragraph shall be equal

13  to the difference in the contributions paid and the Special

14  Risk Class contribution rate as a percentage of gross salary

15  in effect for the period being claimed, plus interest thereon

16  at the rate of 6.5 percent per year, compounded annually until

17  the date of payment. This service credit may be purchased by

18  the employer on behalf of the member.

19         Section 2.  Effective July 1, 2006, in order to fund

20  the benefit improvements provided in s. 121.0515, Florida

21  Statutes, as amended by this act, the contribution rate that

22  applies to the Special Risk Class of the defined benefit

23  program of the Florida Retirement System shall be increased by

24  0.07 percentage points. This increase shall be in addition to

25  all other changes to such contribution rates which may be

26  enacted into law to take effect on that date. The Division of

27  Statutory Revision is directed to adjust accordingly the

28  contribution rates set forth in s. 121.71, Florida Statutes.

29         Section 3.  The Legislature finds that a proper and

30  legitimate state purpose is served when employees and retirees

31  of the state and its political subdivisions, and the

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    Florida Senate - 2006                                  SB 1936
    40-1238-06                                          See HB 671




 1  dependents, survivors, and beneficiaries of such employees and

 2  retirees, are extended the basic protections afforded by

 3  governmental retirement systems. These persons must be

 4  provided benefits that are fair and adequate and that are

 5  managed, administered, and funded in an actuarially sound

 6  manner, as required by s. 14, Art. X of the State

 7  Constitution, and part VII of chapter 112, Florida Statutes.

 8  Therefore, the Legislature determines and declares that this

 9  act fulfills an important state interest.

10         Section 4.  This act shall take effect upon becoming a

11  law.

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