SB 1810                           Corrected Copy First Engrossed
       
       
       
       
       
       
       
       
       20131810e1
       
    1                        A bill to be entitled                      
    2         An act relating to the Florida Retirement System;
    3         amending ss. 112.363, 121.052, 121.055, and 121.071,
    4         F.S.; revising the employer contribution rates for the
    5         retiree health insurance subsidy; amending s. 121.71,
    6         F.S.; revising the required employer retirement
    7         contribution rates for members of each membership
    8         class and subclass of the Florida Retirement System;
    9         providing findings of an important state interest;
   10         providing an effective date.
   11  
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Paragraph (g) is added to subsection (8) of
   15  section 112.363, Florida Statutes, to read:
   16         112.363 Retiree health insurance subsidy.—
   17         (8) CONTRIBUTIONS.—For purposes of funding the insurance
   18  subsidy provided by this section:
   19         (g) Beginning July 1, 2013, the employer of each member of
   20  a state-administered plan shall contribute 1.20 percent of gross
   21  compensation each pay period.
   22  
   23  Such contributions shall be submitted to the Department of
   24  Management Services and deposited in the Retiree Health
   25  Insurance Subsidy Trust Fund.
   26         Section 2. Paragraph (d) of subsection (7) of section
   27  121.052, Florida Statutes, is amended to read:
   28         121.052 Membership class of elected officers.—
   29         (7) CONTRIBUTIONS.—
   30         (d) The following table states the required employer
   31  contribution on behalf of each member of the Elected Officers’
   32  Class in terms of a percentage of the member’s gross
   33  compensation. Such contribution constitutes the entire health
   34  insurance subsidy contribution with respect to each such member.
   35  A change in the contribution rate is effective with the first
   36  salary paid on or after the beginning date of the change. The
   37  retiree health insurance subsidy contribution rate is as
   38  follows:
   39  Dates of Contribution Rate Changes                   ContributionRate
   40  October 1, 1987, through December 31, 1988                0.24%     
   41  January 1, 1989, through December 31, 1993                0.48%     
   42  January 1, 1994, through December 31, 1994                0.56%     
   43  January 1, 1995, through June 30, 1998                    0.66%     
   44  July 1, 1998, through June 30, 2001                       0.94%     
   45  Effective July 1, 2001, through June 30, 2013             1.11%     
   46  Effective July 1, 2013                                    1.20%     
   47  Such contributions and accompanying payroll data are due and
   48  payable no later than the 5th working day of the month
   49  immediately following the month during which the payroll period
   50  ended and shall be deposited by the administrator in the Retiree
   51  Health Insurance Subsidy Trust Fund.
   52         Section 3. Paragraph (d) of subsection (3) of section
   53  121.055, Florida Statutes, is amended to read:
   54         121.055 Senior Management Service Class.—There is hereby
   55  established a separate class of membership within the Florida
   56  Retirement System to be known as the “Senior Management Service
   57  Class,” which shall become effective February 1, 1987.
   58         (3)
   59         (d) The following table states the required employer
   60  contribution on behalf of each member of the Senior Management
   61  Service Class in terms of a percentage of the member’s gross
   62  compensation. Such contribution constitutes the entire health
   63  insurance subsidy contribution with respect to each such member.
   64  A change in the contribution rate is effective with the first
   65  salary paid on or after the beginning date of the change. The
   66  retiree health insurance subsidy contribution rate is as
   67  follows:
   68  Dates of Contribution Rate Changes                   ContributionRate
   69  October 1, 1987, through December 31, 1988                0.24%     
   70  January 1, 1989, through December 31, 1993                0.48%     
   71  January 1, 1994, through December 31, 1994                0.56%     
   72  January 1, 1995, through June 30, 1998                    0.66%     
   73  July 1, 1998, through June 30, 2001                       0.94%     
   74  Effective July 1, 2001, through June 30, 2013             1.11%     
   75  Effective July 1, 2013                                    1.20%     
   76  Such contributions and accompanying payroll data are due and
   77  payable no later than the 5th working day of the month
   78  immediately following the month during which the payroll period
   79  ended and shall be deposited by the administrator in the Retiree
   80  Health Insurance Subsidy Trust Fund.
   81         Section 4. Subsection (4) of section 121.071, Florida
   82  Statutes, is amended to read:
   83         121.071 Contributions.—Contributions to the system shall be
   84  made as follows:
   85         (4) The following table states the required employer
   86  contribution on behalf of each member of the Regular Class,
   87  Special Risk Class, or Special Risk Administrative Support Class
   88  in terms of a percentage of the member’s gross compensation.
   89  Such contribution constitutes the entire health insurance
   90  subsidy contribution with respect to each such member. A change
   91  in the contribution rate is effective with the first salary paid
   92  on or after the beginning date of the change. The retiree health
   93  insurance subsidy contribution rate is as follows:
   94  Dates of Contribution Rate Changes                   ContributionRate
   95  October 1, 1987, through December 31, 1988                0.24%     
   96  January 1, 1989, through December 31, 1993                0.48%     
   97  January 1, 1994, through December 31, 1994                0.56%     
   98  January 1, 1995, through June 30, 1998                    0.66%     
   99  July 1, 1998, through June 30, 2001                       0.94%     
  100  Effective July 1, 2001, through June 30, 2013             1.11%     
  101  Effective July 1, 2013                                    1.20%     
  102  Such contributions shall be deposited by the administrator in
  103  the Retiree Health Insurance Subsidy Trust Fund.
  104         Section 5. Subsections (4) and (5) of section 121.71,
  105  Florida Statutes, are amended to read:
  106         121.71 Uniform rates; process; calculations; levy.—
  107         (4) Required employer retirement contribution rates for
  108  each membership class and subclass of the Florida Retirement
  109  System for both retirement plans are as follows:
  110  Membership Class                 Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
  111  Regular Class                          3.55%          3.53% 3.55%   
  112  Special Risk Class                     11.01%        11.00% 11.01%  
  113  Special Risk Administrative Support Class      3.94%          4.17% 3.94%   
  114  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders      6.51%          6.52% 6.51%   
  115  Elected Officers’ Class— Justices, Judges      10.02%        10.05% 10.02%  
  116  Elected Officers’ Class— County Elected Officers      8.36%          8.44% 8.36%   
  117  Senior Management Class                4.84%          4.81% 4.84%   
  118  DROP                                   4.33%          4.63% 4.33%   
  119         (5) In order to address unfunded actuarial liabilities of
  120  the system, the required employer retirement contribution rates
  121  for each membership class and subclass of the Florida Retirement
  122  System for both retirement plans are as follows:
  123  Membership Class                     Percentage ofGrossCompensation,EffectiveJuly 1, 2012Percentage ofGrossCompensation,EffectiveJuly 1, 2013
  124  Regular Class                             0.49%        2.19% 2.02%  
  125  Special Risk Class                        2.75%        6.83% 7.03%  
  126  Special Risk Administrative Support Class     0.83%       30.56% 27.04% 
  127  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders     0.88%       24.85% 27.18% 
  128  Elected Officers’ Class— Justices, Judges     0.77%       17.00% 16.38% 
  129  Elected Officers’ Class— County Elected Officers     0.73%       23.36% 23.01% 
  130  Senior Management Service Class           0.32%       12.27% 11.25% 
  131  DROP                                      0.00%        7.01% 6.21%  
  132         Section 6. The Legislature finds that a proper and
  133  legitimate state purpose is served when employees, officers, and
  134  retirees of the state and its political subdivisions, and the
  135  dependents, survivors, and beneficiaries of such employees,
  136  officers, and retirees, are extended the basic protections
  137  afforded by governmental retirement systems. These persons must
  138  be provided benefits that are fair and adequate and that are
  139  managed, administered, and funded in an actuarially sound
  140  manner, as required by s. 14, Article X of the State
  141  Constitution and part VII of chapter 112, Florida Statutes.
  142  Therefore, the Legislature determines and declares that this act
  143  fulfills an important state interest.
  144         Section 7. The Legislature finds that a proper and
  145  legitimate state purpose is served when employees, officers, and
  146  retirees of the state and of its political subdivisions, and the
  147  dependents, survivors, and beneficiaries of such employees,
  148  officers, and retirees, are extended the basic protections
  149  afforded by governmental retirement systems that provide fair
  150  and adequate benefits, including health insurance subsidies, and
  151  that are managed, administered, and funded in a reasonable
  152  manner. Therefore, the Legislature determines and declares that
  153  this act fulfills an important state interest.
  154         Section 8. This act shall take effect July 1, 2013.