Bill Text: FL H1579 | 2010 | Regular Session | Introduced

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Bill Title: Florida Retirement System

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Governmental Affairs Policy (EDCA) [H1579 Detail]

Download: Florida-2010-H1579-Introduced.html

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HB 1579

1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.111, F.S.; conforming cross-references; authorizing
4	additional persons to purchase credit for prior military
5	wartime service; amending s. 121.052, F.S.; conforming a
6	cross-reference; revising the payroll contribution rates
7	for the membership classes of the system; providing a
8	declaration of important state interest; providing an
9	effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1. Section 121.111, Florida Statutes, is amended
14	to read:
15	121.111 Credit for military service.-
16	(1) Creditable service of any member shall also include
17	military service as defined in s. 121.021(20)(a) if:
18	(a) The member is in the active employ of an employer
19	immediately before prior to such service and leaves a position,
20	other than a temporary position, for the purpose of induction
21	into the Armed Forces of the United States or entry upon duty in
22	the Armed Forces of the United States. When applied to the
23	Florida Retirement System:
24	1. The term "position other than a temporary position"
25	means a regularly established position with a Florida Retirement
26	System employer; and
27	2. A member shall be construed to have left his or her
28	employment for military purposes if he or she reported for
29	active duty within 60 days after leaving such employment;
30	(b) The member is entitled to reemployment under the
31	provisions of the Uniformed Services Employment and Reemployment
32	Rights Act Veterans' Reemployment Rights Act (38 U.S.C. ss. 2021
33	et seq.);
34	(c) The member applies for reemployment with the same
35	employer within the time set forth in the Uniformed Services
36	Employment and Reemployment Rights Act s. 2021 or s. 2024 of the
37	Veterans' Reemployment Rights Act, whichever is applicable, and
38	is reemployed by such employer;
39	(d) The member makes the required employee contributions,
40	if any, and the employer makes the required employer
41	contributions for the employee's membership class for each month
42	of service credit during the such period of military service,
43	based upon the employee's rate of monthly compensation as of the
44	date that the employee left his or her position, plus 4 percent
45	interest on such contributions compounded annually from the due
46	date of the contribution until July 1, 1975, and 6.5 percent
47	interest compounded annually thereafter, until the payment is
48	made to the appropriate proper retirement trust fund; and
49	(e) The period of service claimed pursuant to this
50	subsection does not exceed the periods specified by the
51	provisions of the Uniformed Services Employment and Reemployment
52	Rights Act ss. 2021 and 2024 of the Veterans' Reemployment
53	Rights Act which are applicable in the member's case.
54	(2) Any member whose initial date of employment is before
55	January 1, 1987, who has military service as defined in s.
56	121.021(20)(b), and who does not claim such service under
57	subsection (1) may receive creditable service for such military
58	service if:
59	(a) The member is vested;
60	(b) Creditable service, not to exceed a total of 4 years,
61	is claimed only as service earned in the Regular Class of
62	membership; and
63	(c) The member pays into the proper retirement trust fund
64	4 percent of gross salary, based upon his or her first year of
65	salary subsequent to July 1, 1945, that he or she has credit for
66	under this system, plus 4 percent interest thereon compounded
67	annually from the date of first creditable service under this
68	chapter until July 1, 1975, and 6.5 percent interest compounded
69	annually thereafter, until payment is made to the appropriate
70	proper retirement trust fund.
71	(3)(d) The member may not receive credit under subsection
72	(2) for any wartime military service if the member also receives
73	credit for such service under any federal, state, or local
74	retirement or pension system where "length of service" is a
75	factor in determining the amount of compensation received.
76	However, credit for wartime military service may be received if
77	where the member also receives credit under a pension system
78	providing retired pay for nonregular service in the Armed Forces
79	of the United States in accordance with 10 U.S.C. ss. 1331 et
80	seq., as follows:
81	(a)1. Any person whose retirement date under the Florida
82	Retirement System is before prior to July 1, 1985, may claim
83	such service at any time, as provided in this subsection, upon
84	payment of contributions and interest as provided in paragraph
85	(2)(c) (c), with interest computed to the retired member's
86	retirement date. The benefit must shall be recalculated and
87	increased to include the additional service credit granted for
88	such wartime military service, and a lump-sum payment shall be
89	made to the retiree for the amount owed due to the additional
90	service credit, retroactive to the date of retirement.
91	(b)2. Any person whose retirement date is on or after July
92	1, 1985, must claim such service and pay the required
93	contributions, as provided in subsection (4) paragraph (c),
94	prior to the commencement of his or her retirement benefits, as
95	provided in this subsection.
96	(4)(e) Any member claiming credit under this subsection
97	(2) must certify on the form prescribed by the department that
98	credit for such service has not and will not be claimed for
99	retirement purposes under any other federal, state, or local
100	retirement or pension system where "length of service" is a
101	factor in determining the amount of compensation received,
102	unless except where credit for such service has been granted in
103	a pension system providing retired pay for nonregular service as
104	provided in subsection (3) paragraph (d). If the member dies
105	before prior to retirement, the member's beneficiary must make
106	the required certification before credit may be claimed. If such
107	certification is not made by the member or the member's
108	beneficiary, credit for wartime military service may shall not
109	be claimed allowed.
110	(5)(f) Service credit awarded for wartime military service
111	under subsection (2) equals shall be the total number of years,
112	months, and days from and including the date of entry into
113	active duty through the date of discharge from active duty, up
114	to a maximum of 4 years. If the military service includes a
115	partial year, it must shall be stated as a fraction of a year.
116	Creditable military service must shall be calculated in
117	accordance with rule 60S-2.005(2)(j), Florida Administrative
118	Code.
119	(6)(3) Except as provided by law or rule, the employer is
120	not required to make contributions for military service credit
121	for any member.
122	Section 2. Paragraph (d) of subsection (12) of section
123	121.052, Florida Statutes, is amended to read:
124	121.052 Membership class of elected officers.-
125	(12) BENEFITS.-
126	(d) The provisions of ss. 121.101 and 121.111, relating to
127	the cost-of-living adjustment of retirement benefits and
128	retirement credit for wartime military service, respectively,
129	shall apply to members of the Elected Officers' Class.
130	Creditable service for actual wartime service, as authorized by
131	s. 121.111(2), not exceeding 4 years, shall be acquired and paid
132	for as provided in s. 121.111 said subsection. Upon payment by
133	the member of 4 percent of gross salary plus accrued interest,
134	retirement credit shall be granted at the rate of 1.6 percent
135	for each year of creditable service acquired under said
136	subsection.
137	Section 3. Effective July 1, 2010, in order to fund the
138	benefits provided by this act:
139	(1) The contribution rate that applies to the Regular
140	Class of the Florida Retirement System is increased by 0.11
141	percentage points.
142	(2) The contribution rate that applies to the Special Risk
143	Class of the Florida Retirement System is increased by 0.16
144	percentage points.
145	(3) The contribution rate that applies to the Special Risk
146	Administrative Support Class of the Florida Retirement System is
147	increased by 0.21 percentage points.
148	(4) The contribution rate that applies to the Judicial
149	subclass of the Elected Officers' Class of the Florida
150	Retirement System is increased by 0.20 percentage points.
151	(5) The contribution rate that applies to the legislative-
152	attorney-Cabinet subclass of the Elected Officers' Class of the
153	Florida Retirement System is increased by 0.19 percentage
154	points.
155	(6) The contribution rate that applies to the County
156	Officers' subclass of the Elected Officers' Class of the Florida
157	Retirement System is increased by 0.22 percentage points.
158	(7) The contribution rate that applies to the Senior
159	Management Service Class of the Florida Retirement System is
160	increased by 0.18 percentage points.
161
162	These increases are in addition to all other changes to such
163	contribution rates which may be enacted into law to take effect
164	on that date. The Division of Statutory Revision is directed to
165	adjust the contribution rates set forth in ss. 121.052, 121.055,
166	and 121.071, Florida Statutes.
167	Section 4. The Legislature finds that a proper and
168	legitimate state purpose is served when employees and retirees
169	of the state and its political subdivisions, and the dependents,
170	survivors, and beneficiaries of such employees and retirees, are
171	extended the basic protections afforded by governmental
172	retirement systems. These persons must be provided benefits that
173	are fair and adequate and that are managed, administered, and
174	funded in an actuarially sound manner, as required by s. 14,
175	Article X of the State Constitution and part VII of chapter 112,
176	Florida Statutes. Therefore, the Legislature determines and
177	declares that this act fulfills an important state interest.
178	Section 5. This act shall take effect July 1, 2010.

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