Bill Text: FL S0810 | 2010 | Regular Session | Introduced

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Bill Title: Florida Retirement System [WPSC]

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Governmental Oversight and Accountability [S0810 Detail]

Download: Florida-2010-S0810-Introduced.html

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Florida Senate - 2010                                     SB 810 
 
By Senator Aronberg 
27-00064-10                                            2010810__ 
1                        A bill to be entitled 
2         An act relating to the Florida Retirement System; 
3         amending s. 121.111, F.S.; conforming cross 
4         references; authorizing additional persons to purchase 
5         credit for prior military wartime service; amending s. 
6         121.052, F.S.; conforming a cross-reference; revising 
7         the payroll contribution rates for the membership 
8         classes of the system; 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. Section 121.111, Florida Statutes, is amended to 
14  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 4 
64  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 (2) 
97  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 Class 
140  of the Florida Retirement System is increased by 0.11 percentage 
141  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.