Florida Senate - 2010 SB 2468
By Senator Lawson
6-01874-10 20102468__
1 A bill to be entitled
2 An act relating to the Florida Retirement System;
3 amending s. 121.021, F.S.; redefining the term
4 “average final compensation” to reduce the number of
5 years of creditable service used to calculate such
6 compensation; amending s. 121.091, F.S.; conforming a
7 provision relating to the calculation of the monthly
8 normal retirement benefit; providing an effective
9 date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (24) of section 121.021, Florida
14 Statutes, is amended to read:
15 121.021 Definitions.—The following words and phrases as
16 used in this chapter have the respective meanings set forth
17 unless a different meaning is plainly required by the context:
18 (24) “Average final compensation” means the average of the
19 3 5 highest fiscal years of compensation for creditable service
20 prior to retirement, termination, or death. For in-line-of-duty
21 disability benefits, if less than 3 5 years of creditable
22 service have been completed, the term “average final
23 compensation” means the average annual compensation of the total
24 number of years of creditable service. Each year used in the
25 calculation of average final compensation commences shall
26 commence on July 1.
27 (a) The average final compensation includes shall include:
28 1. Accumulated annual leave payments, up to not to exceed
29 500 hours; and
30 2. All payments defined as compensation in subsection (22).
31 (b) The average final compensation does shall not include:
32 1. Compensation paid to professional persons for special or
33 particular services;
34 2. Payments for accumulated sick leave made due to
35 retirement or termination;
36 3. Payments for accumulated annual leave greater than in
37 excess of 500 hours;
38 4. Bonuses as defined in subsection (47);
39 5. Third-party Third party payments made on and after July
40 1, 1990; or
41 6. Fringe benefits, such as (for example, automobile
42 allowances or housing allowances).
43 Section 2. Paragraph (d) of subsection (1) of section
44 121.091, Florida Statutes, is amended to read:
45 121.091 Benefits payable under the system.—Benefits may not
46 be paid under this section unless the member has terminated
47 employment as provided in s. 121.021(39)(a) or begun
48 participation in the Deferred Retirement Option Program as
49 provided in subsection (13), and a proper application has been
50 filed in the manner prescribed by the department. The department
51 may cancel an application for retirement benefits when the
52 member or beneficiary fails to timely provide the information
53 and documents required by this chapter and the department’s
54 rules. The department shall adopt rules establishing procedures
55 for application for retirement benefits and for the cancellation
56 of such application when the required information or documents
57 are not received.
58 (1) NORMAL RETIREMENT BENEFIT.—Upon attaining his or her
59 normal retirement date, the member, upon application to the
60 administrator, shall receive a monthly benefit which shall begin
61 to accrue on the first day of the month of retirement and be
62 payable on the last day of that month and each month thereafter
63 during his or her lifetime. The normal retirement benefit,
64 including any past or additional retirement credit, may not
65 exceed 100 percent of the average final compensation. The amount
66 of monthly benefit shall be calculated as the product of A and
67 B, subject to the adjustment of C, if applicable, as set forth
68 below:
69 (d) A member’s average final compensation shall be
70 determined by formula to obtain the coverage for the 3 5 highest
71 fiscal years’ salaries, calculated as provided by rule.
72 Section 3. This act shall take effect July 1, 2010.