Bill Text: FL S0242 | 2015 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Publicly Funded Retirement Plans

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2015-04-24 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1309 (Ch. 2015-157) [S0242 Detail]

Download: Florida-2015-S0242-Introduced.html

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       Florida Senate - 2015                                     SB 242
       
       
        
       By Senator Brandes
       
       
       
       
       
       22-00288-15                                            2015242__
    1                        A bill to be entitled                      
    2         An act relating to publicly funded retirement plans;
    3         amending s. 112.63, F.S.; requiring that actuarial
    4         reports for certain retirement plans include mortality
    5         tables; amending s. 112.664, F.S.; revising
    6         information to be included in a defined benefit system
    7         or plan’s annual report to the Department of
    8         Management Services; providing a declaration of
    9         important state interest; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Subsection (1) of section 112.63, Florida
   14  Statutes, is amended to read:
   15         112.63 Actuarial reports and statements of actuarial
   16  impact; review.—
   17         (1) Each retirement system or plan subject to the
   18  provisions of this act shall have regularly scheduled actuarial
   19  reports prepared and certified by an enrolled actuary. The
   20  actuarial report shall consist of, but is shall not be limited
   21  to, the following:
   22         (a) Adequacy of employer and employee contribution rates in
   23  meeting levels of employee benefits provided in the system and
   24  changes, if any, needed in such rates to achieve or preserve a
   25  level of funding deemed adequate to enable payment through the
   26  indefinite future of the benefit amounts prescribed by the
   27  system, which shall include a valuation of present assets, based
   28  on statement value, and prospective assets and liabilities of
   29  the system and the extent of unfunded accrued liabilities, if
   30  any.
   31         (b) A plan to amortize any unfunded liability pursuant to
   32  s. 112.64 and a description of actions taken to reduce the
   33  unfunded liability.
   34         (c) A description and explanation of actuarial assumptions.
   35         (d) A schedule illustrating the amortization of unfunded
   36  liabilities, if any.
   37         (e) A comparative review illustrating the actual salary
   38  increases granted and the rate of investment return realized
   39  over the 3-year period preceding the actuarial report with the
   40  assumptions used in both the preceding and current actuarial
   41  reports.
   42         (f) Mortality tables that use mortality methodology
   43  consistent with the most recently published actuarial valuation
   44  report of the Florida Retirement System.
   45         (g)(f) A statement by the enrolled actuary that the report
   46  is complete and accurate and that in his or her opinion the
   47  techniques and assumptions used are reasonable and meet the
   48  requirements and intent of this act.
   49  
   50  The actuarial cost methods utilized for establishing the amount
   51  of the annual actuarial normal cost to support the promised
   52  benefits shall only be those methods approved in the Employee
   53  Retirement Income Security Act of 1974 and as permitted under
   54  regulations prescribed by the Secretary of the Treasury.
   55         Section 2. Subsection (1) of section 112.664, Florida
   56  Statutes, is amended to read:
   57         112.664 Reporting standards for defined benefit retirement
   58  plans or systems.—
   59         (1) In addition to the other reporting requirements of this
   60  part, within 60 days after receipt of the certified actuarial
   61  report submitted after the close of the plan year that ends on
   62  or after June 30, 2014, and thereafter in each year required
   63  under s. 112.63(2), each defined benefit retirement system or
   64  plan, excluding the Florida Retirement System, shall prepare and
   65  electronically report the following information to the
   66  Department of Management Services in a format prescribed by the
   67  department:
   68         (a) Annual financial statements that comply are in
   69  compliance with the requirements of the Governmental Accounting
   70  Standards Government Accounting and Standard Board’s Statement
   71  No. 67, titled Financial Reporting for Pension Plans, and
   72  Statement No. 68, titled Accounting and Financial Reporting for
   73  Pensions, using mortality tables that use mortality methodology
   74  consistent with the most recently published actuarial valuation
   75  report of the Florida Retirement System RP-2000 Combined Healthy
   76  Participant Mortality Tables, by gender, with generational
   77  projection by Scale AA.
   78         (b) Annual financial statements similar to those required
   79  under paragraph (a), but which use an assumed rate of return on
   80  investments and an assumed discount rate that are equal to 200
   81  basis points less than the plan’s assumed rate of return.
   82         (c) Information indicating the number of months or years
   83  for which the current market value of assets are adequate to
   84  sustain the payment of expected retirement benefits as
   85  determined in the plan’s latest valuation and under the
   86  financial statements prepared pursuant to paragraphs (a) and
   87  (b).
   88         (d) Information indicating the recommended contributions to
   89  the plan based on the plan’s latest valuation, and the
   90  contributions necessary to fund the plan based on financial
   91  statements prepared pursuant to paragraphs (a) and (b), stated
   92  as an annual dollar value and a percentage of valuation payroll.
   93         Section 3. The Legislature finds that a proper and
   94  legitimate state purpose is served when employees and retirees
   95  of the state and its political subdivisions, and the dependents,
   96  survivors, and beneficiaries of such employees and retirees, are
   97  extended the basic protections afforded by governmental
   98  retirement systems that provide fair and adequate benefits and
   99  that are managed, administered, and funded in an actuarially
  100  sound manner as required by s. 14, Article X of the State
  101  Constitution and part VII of chapter 112, Florida Statutes.
  102  Therefore, the Legislature determines and declares that this act
  103  fulfills an important state interest.
  104         Section 4. This act shall take effect July 1, 2015.