Florida Senate - 2013             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 1810
       
       
       
       
       
       
                                Barcode 801240                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                 Floor: AD/CR          .                                
             05/03/2013 12:21 PM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Conference Committee on SB 1810 recommended the following:
       
    1         Senate Conference Committee Amendment (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Paragraph (g) is added to subsection (8) of
    7  section 112.363, Florida Statutes, to read:
    8         112.363 Retiree health insurance subsidy.—
    9         (8) CONTRIBUTIONS.—For purposes of funding the insurance
   10  subsidy provided by this section:
   11         (g) Beginning July 1, 2013, the employer of each member of
   12  a state-administered plan shall contribute 1.20 percent of gross
   13  compensation each pay period.
   14  
   15  Such contributions shall be submitted to the Department of
   16  Management Services and deposited in the Retiree Health
   17  Insurance Subsidy Trust Fund.
   18         Section 2. Paragraph (d) of subsection (7) of section
   19  121.052, Florida Statutes, is amended to read:
   20         121.052 Membership class of elected officers.—
   21         (7) CONTRIBUTIONS.—
   22         (d) The following table states the required employer
   23  contribution on behalf of each member of the Elected Officers’
   24  Class in terms of a percentage of the member’s gross
   25  compensation. Such contribution constitutes the entire health
   26  insurance subsidy contribution with respect to each such member.
   27  A change in the contribution rate is effective with the first
   28  salary paid on or after the beginning date of the change. The
   29  retiree health insurance subsidy contribution rate is as
   30  follows:
   31  Dates of Contribution Rate Changes                  ContributionRate
   32  October 1, 1987, through December 31, 1988               0.24%      
   33  January 1, 1989, through December 31, 1993               0.48%      
   34  January 1, 1994, through December 31, 1994               0.56%      
   35  January 1, 1995, through June 30, 1998                   0.66%      
   36  July 1, 1998, through June 30, 2001                      0.94%      
   37  Effective July 1, 2001, through June 30, 2013            1.11%      
   38  Effective July 1, 2013                                   1.20%      
   39  Such contributions and accompanying payroll data are due and
   40  payable no later than the 5th working day of the month
   41  immediately following the month during which the payroll period
   42  ended and shall be deposited by the administrator in the Retiree
   43  Health Insurance Subsidy Trust Fund.
   44         Section 3. Paragraph (d) of subsection (3) of section
   45  121.055, Florida Statutes, is amended to read:
   46         121.055 Senior Management Service Class.—There is hereby
   47  established a separate class of membership within the Florida
   48  Retirement System to be known as the “Senior Management Service
   49  Class,” which shall become effective February 1, 1987.
   50         (3)
   51         (d) The following table states the required employer
   52  contribution on behalf of each member of the Senior Management
   53  Service Class in terms of a percentage of the member’s gross
   54  compensation. Such contribution constitutes the entire health
   55  insurance subsidy contribution with respect to each such member.
   56  A change in the contribution rate is effective with the first
   57  salary paid on or after the beginning date of the change. The
   58  retiree health insurance subsidy contribution rate is as
   59  follows:
   60  Dates of Contribution Rate Changes                  ContributionRate
   61  October 1, 1987, through December 31, 1988               0.24%      
   62  January 1, 1989, through December 31, 1993               0.48%      
   63  January 1, 1994, through December 31, 1994               0.56%      
   64  January 1, 1995, through June 30, 1998                   0.66%      
   65  July 1, 1998, through June 30, 2001                      0.94%      
   66  Effective July 1, 2001, through June 30, 2013            1.11%      
   67  Effective July 1, 2013                                   1.20%      
   68  Such contributions and accompanying payroll data are due and
   69  payable no later than the 5th working day of the month
   70  immediately following the month during which the payroll period
   71  ended and shall be deposited by the administrator in the Retiree
   72  Health Insurance Subsidy Trust Fund.
   73         Section 4. Subsection (4) of section 121.071, Florida
   74  Statutes, is amended to read:
   75         121.071 Contributions.—Contributions to the system shall be
   76  made as follows:
   77         (4) The following table states the required employer
   78  contribution on behalf of each member of the Regular Class,
   79  Special Risk Class, or Special Risk Administrative Support Class
   80  in terms of a percentage of the member’s gross compensation.
   81  Such contribution constitutes the entire health insurance
   82  subsidy contribution with respect to each such member. A change
   83  in the contribution rate is effective with the first salary paid
   84  on or after the beginning date of the change. The retiree health
   85  insurance subsidy contribution rate is as follows:
   86  Dates of Contribution Rate Changes                  ContributionRate
   87  October 1, 1987, through December 31, 1988               0.24%      
   88  January 1, 1989, through December 31, 1993               0.48%      
   89  January 1, 1994, through December 31, 1994               0.56%      
   90  January 1, 1995, through June 30, 1998                   0.66%      
   91  July 1, 1998, through June 30, 2001                      0.94%      
   92  Effective July 1, 2001, through June 30, 2013            1.11%      
   93  Effective July 1, 2013                                   1.20%      
   94  Such contributions shall be deposited by the administrator in
   95  the Retiree Health Insurance Subsidy Trust Fund.
   96         Section 5. Subsections (4) and (5) of section 121.71,
   97  Florida Statutes, are amended to read:
   98         121.71 Uniform rates; process; calculations; levy.—
   99         (4) Required employer retirement contribution rates for
  100  each membership class and subclass of the Florida Retirement
  101  System for both retirement plans are as follows:
  102  Membership Class                Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
  103  Regular Class                         3.55%          3.53% 3.55%    
  104  Special Risk Class                    11.01%        11.00% 11.01%   
  105  Special Risk Administrative Support Class      3.94%          4.17% 3.94%    
  106  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders      6.51%          6.52% 6.51%    
  107  Elected Officers’ Class— Justices, Judges      10.02%        10.05% 10.02%   
  108  Elected Officers’ Class— County Elected Officers      8.36%          8.44% 8.36%    
  109  Senior Management Class               4.84%          4.81% 4.84%    
  110  DROP                                  4.33%          4.63% 4.33%    
  111         (5) In order to address unfunded actuarial liabilities of
  112  the system, the required employer retirement contribution rates
  113  for each membership class and subclass of the Florida Retirement
  114  System for both retirement plans are as follows:
  115  Membership Class                    Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
  116  Regular Class                            0.49%        2.19% 2.02%   
  117  Special Risk Class                       2.75%        6.83% 7.03%   
  118  Special Risk Administrative Support Class     0.83%       30.56% 27.04%  
  119  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders     0.88%       24.85% 27.18%  
  120  Elected Officers’ Class— Justices, Judges     0.77%       17.00% 16.38%  
  121  Elected Officers’ Class— County Elected Officers     0.73%       23.36% 23.01%  
  122  Senior Management Service Class          0.32%       12.27% 11.25%  
  123  DROP                                     0.00%        7.01% 6.21%   
  124         Section 6. The Legislature finds that a proper and
  125  legitimate state purpose is served when employees, officers, and
  126  retirees of the state and its political subdivisions, and the
  127  dependents, survivors, and beneficiaries of such employees,
  128  officers, and retirees, are extended the basic protections
  129  afforded by governmental retirement systems. These persons must
  130  be provided benefits that are fair and adequate and that are
  131  managed, administered, and funded in an actuarially sound
  132  manner, as required by s. 14, Article X of the State
  133  Constitution and part VII of chapter 112, Florida Statutes.
  134  Therefore, the Legislature determines and declares that this act
  135  fulfills an important state interest.
  136         Section 7. The Legislature finds that a proper and
  137  legitimate state purpose is served when employees, officers, and
  138  retirees of the state and of its political subdivisions, and the
  139  dependents, survivors, and beneficiaries of such employees,
  140  officers, and retirees, are extended the basic protections
  141  afforded by governmental retirement systems that provide fair
  142  and adequate benefits, including health insurance subsidies, and
  143  that are managed, administered, and funded in a reasonable
  144  manner. Therefore, the Legislature determines and declares that
  145  this act fulfills an important state interest.
  146         Section 8. This act shall take effect July 1, 2013.
  147  
  148  ================= T I T L E  A M E N D M E N T ================
  149         And the title is amended as follows:
  150         Delete everything before the enacting clause
  151  and insert:
  152                        A bill to be entitled                      
  153         An act relating to the Florida Retirement System;
  154         amending ss. 112.363, 121.052, 121.055, and 121.071,
  155         F.S.; revising the employer contribution rates for the
  156         retiree health insurance subsidy; amending s. 121.71,
  157         F.S.; revising the required employer retirement
  158         contribution rates for members of each membership
  159         class and subclass of the Florida Retirement System;
  160         providing findings of an important state interest;
  161         providing an effective date.