Florida Senate - 2022                                    SB 7046
       
       
        
       By the Committee on Governmental Oversight and Accountability
       
       
       
       
       
       585-02931-22                                          20227046__
    1                        A bill to be entitled                      
    2         An act relating to public employment; amending s.
    3         110.2035, F.S.; requiring the Department of Management
    4         Services to periodically contract for the completion
    5         of certain compensation surveys; specifying
    6         requirements for the methodology for such surveys;
    7         requiring the department to submit a report to the
    8         Governor and the legislative presiding officers upon
    9         completion of the surveys; amending s. 121.091, F.S.;
   10         authorizing Special Risk Class members who are law
   11         enforcement officers and meet certain criteria to
   12         participate in the deferred retirement option program
   13         for an additional time period; amending s. 121.71,
   14         F.S.; revising required employer retirement
   15         contribution rates for each membership class and
   16         subclass of the Florida Retirement System; amending s.
   17         121.72, F.S.; revising allocations to investment plan
   18         member accounts; providing a declaration of important
   19         state interest; providing an effective date.
   20          
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Paragraph (c) is added to subsection (6) of
   24  section 110.2035, Florida Statutes, to read:
   25         110.2035 Classification and compensation program.—
   26         (6) The department shall establish and maintain an
   27  equitable pay plan applicable to all occupations and be
   28  responsible for the overall review, coordination, and
   29  administration of the pay plan.
   30         (c)1. No later than September 1, 2022, and every 10 years
   31  thereafter, the department shall contract with a management
   32  consulting firm to conduct a compensation survey of positions in
   33  the Career Service System, the Senior Management Service Class,
   34  and Selected Exempt Service Class to determine the
   35  competitiveness of the state’s compensation plan compared to
   36  competing employers in the state, including both public sector
   37  and private sector employers. The survey methodology must
   38  include the following:
   39         a.Geographical differentials in cost of living;
   40         b.Demand for labor; and
   41         c.Compensation plans of regional competitors.
   42         2.For the survey of positions in the Career Service
   43  System, the department shall select at least 75 benchmark
   44  classes and 10 high turnover classes that have at least 50 full
   45  time equivalent positions.
   46         3.For the survey of positions in the Senior Management
   47  Service Class and the Selected Exempt Service Class, the
   48  department shall select at least 95 benchmark classes.
   49         4.Upon completion of the surveys required under this
   50  paragraph, the department shall provide a report detailing the
   51  results of the surveys to the Governor, the President of the
   52  Senate, and the Speaker of the House of Representatives.
   53         Section 2. Paragraph (b) of subsection (13) of section
   54  121.091, Florida Statutes, is amended to read:
   55         121.091 Benefits payable under the system.—Benefits may not
   56  be paid under this section unless the member has terminated
   57  employment as provided in s. 121.021(39)(a) or begun
   58  participation in the Deferred Retirement Option Program as
   59  provided in subsection (13), and a proper application has been
   60  filed in the manner prescribed by the department. The department
   61  may cancel an application for retirement benefits when the
   62  member or beneficiary fails to timely provide the information
   63  and documents required by this chapter and the department’s
   64  rules. The department shall adopt rules establishing procedures
   65  for application for retirement benefits and for the cancellation
   66  of such application when the required information or documents
   67  are not received.
   68         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
   69  subject to this section, the Deferred Retirement Option Program,
   70  hereinafter referred to as DROP, is a program under which an
   71  eligible member of the Florida Retirement System may elect to
   72  participate, deferring receipt of retirement benefits while
   73  continuing employment with his or her Florida Retirement System
   74  employer. The deferred monthly benefits shall accrue in the
   75  Florida Retirement System on behalf of the member, plus interest
   76  compounded monthly, for the specified period of the DROP
   77  participation, as provided in paragraph (c). Upon termination of
   78  employment, the member shall receive the total DROP benefits and
   79  begin to receive the previously determined normal retirement
   80  benefits. Participation in the DROP does not guarantee
   81  employment for the specified period of DROP. Participation in
   82  DROP by an eligible member beyond the initial 60-month period as
   83  authorized in this subsection shall be on an annual contractual
   84  basis for all participants.
   85         (b) Participation in DROP.—Except as provided in this
   86  paragraph, an eligible member may elect to participate in DROP
   87  for a period not to exceed a maximum of 60 calendar months.
   88         1.a. An eligible member may elect to participate in DROP
   89  for a period not to exceed a maximum of 60 calendar months.
   90  However, Members who are instructional personnel employed by the
   91  Florida School for the Deaf and the Blind and authorized by the
   92  Board of Trustees of the Florida School for the Deaf and the
   93  Blind, who are instructional personnel as defined in s.
   94  1012.01(2)(a)-(d) in grades K-12 and authorized by the district
   95  school superintendent, or who are instructional personnel as
   96  defined in s. 1012.01(2)(a) employed by a developmental research
   97  school and authorized by the school’s director, or if the school
   98  has no director, by the school’s principal, may participate in
   99  DROP for up to 36 calendar months beyond the 60-month period.
  100  Effective July 1, 2018, instructional personnel who are
  101  authorized to extend DROP participation beyond the 60-month
  102  period must have a termination date that is the last day of the
  103  last calendar month of the school year within the DROP extension
  104  granted by the employer. If, on July 1, 2018, the member’s DROP
  105  participation has already been extended for the maximum 36
  106  calendar months and the extension period concludes before the
  107  end of the school year, the member’s DROP participation may be
  108  extended through the last day of the last calendar month of that
  109  school year. The employer shall notify the division of the
  110  change in termination date and the additional period of DROP
  111  participation for the affected instructional personnel.
  112         b. Administrative personnel in grades K-12, as defined in
  113  s. 1012.01(3), who have a DROP termination date on or after July
  114  1, 2018, may be authorized to extend DROP participation beyond
  115  the initial 60 calendar month period if the administrative
  116  personnel’s termination date is before the end of the school
  117  year. Such administrative personnel may have DROP participation
  118  extended until the last day of the last calendar month of the
  119  school year in which their original DROP termination date
  120  occurred if a date other than the last day of the last calendar
  121  month of the school year is designated. The employer shall
  122  notify the division of the change in termination date and the
  123  additional period of DROP participation for the affected
  124  administrative personnel.
  125         c. Effective July 1, 2022, a member of the Special Risk
  126  Class who is a law enforcement officer who meets the criteria in
  127  s. 121.0515(3)(a) may participate in DROP for up to 36 calendar
  128  months beyond the 60-month period if he or she enters DROP on or
  129  before June 30, 2028.
  130         2. Upon deciding to participate in DROP, the member shall
  131  submit, on forms required by the division:
  132         a. A written election to participate in DROP;
  133         b. Selection of DROP participation and termination dates
  134  that satisfy the limitations stated in paragraph (a) and
  135  subparagraph 1. The termination date must be in a binding letter
  136  of resignation to the employer establishing a deferred
  137  termination date. The member may change the termination date
  138  within the limitations of subparagraph 1., but only with the
  139  written approval of the employer;
  140         c. A properly completed DROP application for service
  141  retirement as provided in this section; and
  142         d. Any other information required by the division.
  143         3. The DROP participant is a retiree under the Florida
  144  Retirement System for all purposes, except for paragraph (5)(f)
  145  and subsection (9) and ss. 112.3173, 112.363, 121.053, and
  146  121.122. DROP participation is final and may not be canceled by
  147  the participant after the first payment is credited during the
  148  DROP participation period. However, participation in DROP does
  149  not alter the participant’s employment status, and the member is
  150  not deemed retired from employment until his or her deferred
  151  resignation is effective and termination occurs as defined in s.
  152  121.021.
  153         4. Elected officers are eligible to participate in DROP
  154  subject to the following:
  155         a. An elected officer who reaches normal retirement date
  156  during a term of office may defer the election to participate
  157  until the next succeeding term in that office. An elected
  158  officer who exercises this option may participate in DROP for up
  159  to 60 calendar months or no longer than the succeeding term of
  160  office, whichever is less.
  161         b. An elected or a nonelected participant may run for a
  162  term of office while participating in DROP and, if elected,
  163  extend the DROP termination date accordingly; however, if such
  164  additional term of office exceeds the 60-month limitation
  165  established in subparagraph 1., and the officer does not resign
  166  from office within such 60-month limitation, the retirement and
  167  the participant’s DROP is null and void as provided in sub
  168  subparagraph (c)5.d.
  169         c. An elected officer who is dually employed and elects to
  170  participate in DROP must terminate all employment relationships
  171  as provided in s. 121.021(39) for the nonelected position within
  172  the original 60-month period or maximum participation period as
  173  provided in subparagraph 1. For DROP participation ending:
  174         (I) Before July 1, 2010, the officer may continue
  175  employment as an elected officer as provided in s. 121.053. The
  176  elected officer shall be enrolled as a renewed member in the
  177  Elected Officers’ Class or the Regular Class, as provided in ss.
  178  121.053 and 121.122, on the first day of the month after
  179  termination of employment in the nonelected position and
  180  termination of DROP. Distribution of the DROP benefits shall be
  181  made as provided in paragraph (c).
  182         (II) On or after July 1, 2010, the officer may continue
  183  employment as an elected officer but must defer termination as
  184  provided in s. 121.053.
  185         Section 3. Subsections (4) and (5) of section 121.71,
  186  Florida Statutes, are amended to read:
  187         121.71 Uniform rates; process; calculations; levy.—
  188         (4) Required employer retirement contribution rates for
  189  each membership class and subclass of the Florida Retirement
  190  System for both retirement plans are as follows:
  191  
  192  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2022 2021
  193  
  194  Regular Class                             5.96% 4.91%              
  195  Special Risk Class                       16.44% 15.27%             
  196  Special Risk Administrative Support Class             10.77% 9.73%              
  197  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              9.31% 8.49%              
  198  Elected Officers’ Class— Justices, Judges             14.41% 13.38%             
  199  Elected Officers’ Class— County Elected Officers             11.30% 10.28%             
  200  Senior Management Service Class              7.70% 6.49%              
  201  DROP                                      7.79% 7.23%              
  202         (5) In order to address unfunded actuarial liabilities of
  203  the system, the required employer retirement contribution rates
  204  for each membership class and subclass of the Florida Retirement
  205  System for both retirement plans are as follows:
  206  
  207  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2022 2021
  208  
  209  Regular Class                             4.23% 4.19%              
  210  Special Risk Class                        9.67% 8.90%              
  211  Special Risk Administrative Support Class             26.16% 26.31%             
  212  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             56.76% 53.52%             
  213  Elected Officers’ Class— Justices, Judges             27.64% 25.81%             
  214  Elected Officers’ Class— County Elected Officers             43.98% 39.42%             
  215  Senior Management Service Class             22.15% 20.80%             
  216  DROP                                      9.15% 9.45%              
  217         Section 4. Subsection (5) of section 121.72, Florida
  218  Statutes, is amended, and subsection (6) is added to that
  219  section, to read:
  220         121.72 Allocations to investment plan member accounts;
  221  percentage amounts.—
  222         (5) Effective July 1, 2012, through June 30, 2022,
  223  allocations from the Florida Retirement System Contributions
  224  Clearing Trust Fund to investment plan member accounts are as
  225  follows:
  226  
  227  Membership Class                  Percentage of Gross Compensation 
  228  
  229  Regular Class                                  6.30%               
  230  Special Risk Class                             14.00%              
  231  Special Risk Administrative Support Class              7.95%               
  232  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              9.38%               
  233  Elected Officers’ Class— Justices, Judges              13.23%              
  234  Elected Officers’ Class— County Elected Officers              11.34%              
  235  Senior Management Service Class                7.67%               
  236         (6) Effective July 1, 2022, allocations from the Florida
  237  Retirement System Contributions Clearing Trust Fund to
  238  investment plan member accounts are as follows:
  239  
  240  Membership Class                  Percentage of Gross Compensation 
  241  
  242  Regular Class                                  9.30%               
  243  Special Risk Class                             17.00%              
  244  Special Risk Administrative Support Class              10.95%              
  245  Elected Officers’ Class—Legislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders              12.38%              
  246  Elected Officers’ Class—Justices, Judges              16.23%              
  247  Elected Officers’ Class—County Elected Officers              14.34%              
  248  Senior Management Service Class                10.67%              
  249         Section 5. The Legislature finds that a proper and
  250  legitimate state purpose is served when employees, officers, and
  251  retirees of the state and its political subdivisions, and the
  252  dependents, survivors, and beneficiaries of such employees,
  253  officers, and retirees, are extended the basic protections
  254  afforded by governmental retirement systems. These persons must
  255  be provided benefits that are fair and adequate and that are
  256  managed, administered, and funded in an actuarially sound manner
  257  as required by s. 14, Article X of the State Constitution and
  258  part VII of chapter 112, Florida Statutes. Therefore, the
  259  Legislature determines and declares that this act fulfills an
  260  important state interest.
  261         Section 6. This act shall take effect July 1, 2022.