HB 49

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.0515, F.S.;
3	authorizing certain employees to purchase the retirement
4	credit for past service at a 3-percent Special Risk Class
5	accrual value; providing requirements for calculating the
6	first 2 percent of a member's average monthly compensation
7	for purposes of purchasing past service credit; providing
8	requirements for purchasing past service credit in excess
9	of 2 percent but not to exceed 3 percent of the member's
10	average monthly compensation; providing requirements for
11	calculating the contribution amount; requiring the
12	contribution for past service credit to be paid
13	immediately upon notification by the Division of
14	Retirement; providing that past service credit may be
15	purchased by the member or by the employer on behalf of
16	the member; providing a declaration of important state
17	interest; providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Subsection (5) of section 121.0515, Florida
22	Statutes, is amended to read:
23	121.0515  Special risk membership.--
24	(5)  CREDIT FOR PAST SERVICE.--A special risk member may
25	purchase retirement credit in the Special Risk Class based upon
26	past service, and may upgrade retirement credit for such past
27	service, to the extent of 3 2 percent of the member's average
28	monthly compensation as specified in s. 121.091(1)(a) for such
29	service as follows:
30	(a)  The member may purchase special risk credit for past
31	service with a city or special district which has elected to
32	join the Florida Retirement System, or with a participating
33	agency to which a member's governmental unit was transferred,
34	merged, or consolidated as provided in s. 121.081(1)(f), if the
35	member was employed with the city or special district at the
36	time it commenced participating in the Florida Retirement System
37	or with the governmental unit at the time of its transfer,
38	merger, or consolidation with the participating agency. The
39	service must satisfy the criteria set forth in subsection (2)
40	for special risk membership as a law enforcement officer, a
41	firefighter, a or correctional officer, or an emergency medical
42	technician or paramedic whose employer was a licensed advanced
43	life support or basic life support provider; however, no
44	certificate or waiver of certificate of compliance with s.
45	943.1395 or s. 633.35 shall be required for such service.
46	(b)  Contributions for upgrading the first 2 percent of the
47	member's average monthly compensation for the additional special
48	risk credit pursuant to this subsection shall be equal to the
49	difference in the contributions paid and the special risk
50	percentage rate of gross salary in effect at the time of
51	purchase for the period being claimed, plus interest thereon at
52	the rate of 4 percent a year compounded annually from the date
53	of such service until July 1, 1975, and 6.5 percent a year
54	thereafter until the date of payment. This past service may be
55	purchased by the member or by the employer on behalf of the
56	member.
57	(c)  Contributions for upgrading additional special risk
58	credit in excess of 2 percent but not to exceed 3 percent of the
59	member's average monthly compensation shall be an amount
60	representing the actuarial accrued liability for the difference
61	in accrual value during the period of service for which credit
62	is being purchased. Contributions shall be calculated by an
63	actuary designated by the department using the discount rate and
64	other relevant actuarial assumptions that were used to value the
65	Florida Retirement System defined benefit plan liabilities in
66	the most recent actuarial valuation. The contribution for
67	service credit being purchased must be paid by the member or by
68	the employer on behalf of the member immediately upon
69	notification by the division.
70	Section 2.  The Legislature finds that a proper and
71	legitimate state purpose is served when employees and retirees
72	of the state and of its political subdivisions, and the
73	dependents, survivors, and beneficiaries of such employees and
74	retirees, are extended the basic protections afforded by
75	governmental retirement systems that provide fair and adequate
76	benefits and that are managed, administered, and funded in an
77	actuarially sound manner as required by s. 14, Art. X of the
78	State Constitution and part VII of chapter 112, Florida
79	Statutes. Therefore, the Legislature determines and declares
80	that the provisions of this act fulfill an important state
81	interest.
82	Section 3.  This act shall take effect July 1, 2010.

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