Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 784
       
       
       
       
       
       
                                Ì783474@Î783474                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Governmental Oversight and Accountability
       (Gruters) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (4) of section 121.101, Florida
    6  Statutes, is amended to read:
    7         121.101 Cost-of-living adjustment of benefits.—
    8         (4) For members whose effective retirement date is on or
    9  after July 1, 2011, the benefit of each retiree and annuitant
   10  shall be adjusted annually on July 1 as follows:
   11         (a) For those retirees and annuitants who have never
   12  received a cost-of-living adjustment under this subsection, the
   13  amount of the monthly benefit payable for the 12-month period
   14  commencing on the adjustment date shall be the amount of the
   15  member’s initial benefit plus an amount equal to a percentage of
   16  the member’s initial benefit. This percentage is derived by
   17  dividing the number of months the member has received an initial
   18  benefit by 12, and multiplying the result by the factor
   19  calculated pursuant to paragraph (c).
   20         (b) For those retirees and annuitants who have received a
   21  cost-of-living adjustment under this subsection, the adjusted
   22  monthly benefit shall be the amount of the monthly benefit being
   23  received on June 30 immediately preceding the adjustment date
   24  plus an amount determined by multiplying the benefit by the
   25  factor calculated pursuant to paragraph (c).
   26         (c) The department shall calculate a cost-of-living factor
   27  for each retiree and beneficiary retiring on or after July 1,
   28  2011. This factor shall equal the product of 3 percent
   29  multiplied by the quotient of the sum of the member’s service
   30  credit earned for service before July 1, 2011, divided by the
   31  sum of the member’s total service credit earned. However,
   32  beginning with cost-of-living-adjustments effective July 1,
   33  2019, for a retiree who was a member of the Special Risk Class
   34  on June 30, 2011, and is a member of the Special Risk Class on
   35  the effective date of retirement, and his or her beneficiary,
   36  retiring on or after July 1, 2011, with service credit earned
   37  before July 1, 2011, the factor calculated pursuant to this
   38  paragraph may not be a product of less than 2.
   39         Section 2. Effective July 1, 2019, subsection (3) of
   40  section 121.73, Florida Statutes, is amended to read:
   41         121.73 Allocations for member disability coverage;
   42  percentage amounts.—
   43         (3) Effective July 1, 2002, allocations from the Florida
   44  Retirement System Contributions Clearing Trust Fund to provide
   45  disability coverage for members in the investment plan, and to
   46  offset the costs of administering said coverage, are as follows:
   47  
   48  
   49  Membership Class                 Percentage of Gross Compensation  
   50  
   51  Regular Class                    0.25%                             
   52  Special Risk Class               1.35% 1.33%                       
   53  Special Risk Administrative Support Class0.45%                             
   54  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders0.41%                             
   55  Elected Officers’ Class— Justices, Judges0.73%                             
   56  Elected Officers’ Class— County Elected Officers0.41%                             
   57  Senior Management Service Class  0.26%                             
   58  
   59         Section 3. Effective July 1, 2019, subsection (3) of
   60  section 121.735, Florida Statutes, is amended to read:
   61         121.735 Allocations for member line-of-duty death benefits;
   62  percentage amounts.—
   63         (3) Effective July 1, 2017, allocations from the Florida
   64  Retirement System Contributions Clearing Trust Fund to provide
   65  line-of-duty death benefits for members in the investment plan
   66  and to offset the costs of administering said coverage, are as
   67  follows:
   68  
   69  Membership Class                  Percentage of Gross Compensation 
   70  
   71  Regular Class                                  0.05%               
   72  Special Risk Class                          1.17% 1.15%            
   73  Special Risk Administrative Support Class              0.03%               
   74  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              0.15%               
   75  Elected Officers’ Class— Justices, Judges              0.09%               
   76  Elected Officers’ Class— County Elected Officers              0.20%               
   77  Senior Management Service Class                0.05%               
   78  
   79         Section 4. (1)In order to fund the benefit changes
   80  provided in this act, the required employer contribution rates
   81  for members of the Florida Retirement System are increased as
   82  follows:
   83         (a)By 0.01 percentage point for the rate established in s.
   84  121.71(4), Florida Statutes, for the Special Risk Class.
   85         (b)By 2.32 percentage points for the rate established in
   86  s. 121.71(5), Florida Statutes, for the Special Risk Class.
   87         (c)By 0.01 percentage point for the rate established in s.
   88  121.71(5), Florida Statutes, for DROP.
   89         (2)The adjustments provided in subsection (1) are in
   90  addition to any other changes to such contribution rates which
   91  may be enacted into law to take effect on July 1, 2019. The
   92  Division of Law Revision is directed to adjust accordingly the
   93  contribution rates provided in s. 121.71, Florida Statutes.
   94         Section 5. The Legislature finds that a proper and
   95  legitimate state purpose is served when employees and retirees
   96  of the state and its political subdivisions, and the dependents,
   97  survivors, and beneficiaries of such employees and retirees, are
   98  extended the basis protections afforded by governmental
   99  retirement systems. These persons must be provided benefits that
  100  are fair and adequate and that are managed, administered, and
  101  funded in an actuarially sound manner, as required by s. 14,
  102  Article X of the State Constitution and part VII of chapter 112,
  103  Florida Statutes. Therefore, the Legislature determines and
  104  declares that this act fulfills an important state interest.
  105         Section 6. Except as otherwise provided, this act shall
  106  take effect upon becoming a law.
  107  
  108  ================= T I T L E  A M E N D M E N T ================
  109  And the title is amended as follows:
  110         Delete everything before the enacting clause
  111  and insert:
  112                        A bill to be entitled                      
  113         An act relating to retirement; amending s. 121.101,
  114         F.S.; specifying the minimum amount of the factor used
  115         to calculate the cost-of-living adjustment for
  116         benefits for certain retirees and beneficiaries of the
  117         Florida Retirement System; amending s. 121.73, F.S.;
  118         adjusting the allocation of funds to provide
  119         disability coverage to members of the investment plan
  120         of the Florida Retirement System; amending s. 121.735,
  121         F.S.; adjusting the allocation of funds to provide
  122         line-of-duty death benefits for members in the
  123         investment plan of the Florida Retirement System;
  124         directing the Division of Law Revision to adjust the
  125         employer contribution rates for the Special Risk Class
  126         and DROP in the Florida Retirement System; providing a
  127         declaration of important state interest; providing
  128         effective dates.