Bill Text: FL S1326 | 2016 | Regular Session | Introduced

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Bill Title: Retirement

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-03-11 - Died in Governmental Oversight and Accountability [S1326 Detail]

Download: Florida-2016-S1326-Introduced.html

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       Florida Senate - 2016                                    SB 1326
       
       
        
       By Senator Soto
       
       14-01565-16                                           20161326__
    1                        A bill to be entitled                      
    2         An act relating to retirement; amending s. 121.101,
    3         F.S.; revising the method for determining the cost-of
    4         living adjustment of benefits for retirees and
    5         annuitants of the Florida Retirement System on and
    6         after a specified date; providing a declaration of
    7         important state interest; providing an effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Subsection (3) of section 121.101, Florida
   12  Statutes, is amended, and subsections (4) and (5) of that
   13  section are republished, to read:
   14         121.101 Cost-of-living adjustment of benefits.—
   15         (3) Commencing July 1, 1987, the benefit of each retiree
   16  and annuitant whose effective retirement date is before July 1,
   17  2011, shall be adjusted annually on July 1 as follows:
   18         (a) For those retirees and annuitants who have never
   19  received a cost-of-living adjustment under this section, the
   20  amount of the monthly benefit payable for the 12-month period
   21  commencing on the adjustment date shall be the amount of the
   22  member’s initial benefit plus an amount equal to a percentage of
   23  the member’s initial benefit; this percentage is derived by
   24  dividing the number of months the member has received an initial
   25  benefit by 12, and multiplying the result by 3.
   26         (b) For those retirees and annuitants who have received a
   27  cost-of-living adjustment under this subsection:,
   28         1. The adjusted monthly benefit shall be the amount of the
   29  monthly benefit being received on June 30 immediately preceding
   30  the adjustment date plus an amount equal to 3 percent of this
   31  benefit.
   32         2. Beginning July 1, 2016, the adjusted monthly benefit
   33  shall be the amount of the monthly benefit being received on
   34  June 30 immediately preceding the adjustment date plus an amount
   35  equal to 3 percent of this benefit or the percentage change in
   36  the Experimental Consumer Price Index for Americans 62 years of
   37  age and older, commonly known as the CPI-E, issued by the Bureau
   38  of Labor Statistics of the United States Department of Labor,
   39  whichever amount is greater.
   40         (4) For members whose effective retirement date is on or
   41  after July 1, 2011, the benefit of each retiree and annuitant
   42  shall be adjusted annually on July 1 as follows:
   43         (a) For those retirees and annuitants who have never
   44  received a cost-of-living adjustment under this subsection, the
   45  amount of the monthly benefit payable for the 12-month period
   46  commencing on the adjustment date shall be the amount of the
   47  member’s initial benefit plus an amount equal to a percentage of
   48  the member’s initial benefit. This percentage is derived by
   49  dividing the number of months the member has received an initial
   50  benefit by 12, and multiplying the result by the factor
   51  calculated pursuant to paragraph (c).
   52         (b) For those retirees and annuitants who have received a
   53  cost-of-living adjustment under this subsection, the adjusted
   54  monthly benefit shall be the amount of the monthly benefit being
   55  received on June 30 immediately preceding the adjustment date
   56  plus an amount determined by multiplying the benefit by the
   57  factor calculated pursuant to paragraph (c).
   58         (c) The department shall calculate a cost-of-living factor
   59  for each retiree and beneficiary retiring on or after July 1,
   60  2011. This factor shall equal the product of 3 percent
   61  multiplied by the quotient of the sum of the member’s service
   62  credit earned for service before July 1, 2011, divided by the
   63  sum of the member’s total service credit earned.
   64         (5) Subject to the availability of funding and the
   65  Legislature enacting sufficient employer contributions
   66  specifically for the purpose of funding the expiration of the
   67  cost-of-living adjustment specified in subsection (4), in
   68  accordance with s. 14, Art. X of the State Constitution, the
   69  cost-of-living adjustment formula provided for in subsection (4)
   70  shall expire effective June 30, 2016, and the benefit of each
   71  retiree and annuitant shall be adjusted on each July 1
   72  thereafter, as provided in subsection (3).
   73         Section 2. The Legislature finds that a proper and
   74  legitimate state interest is served when employees, officers,
   75  and retirees of the state and its political subdivisions, and
   76  the dependents, survivors, and beneficiaries of such employees,
   77  officers, and retirees, are extended the basic protections
   78  afforded by governmental retirement systems. These persons must
   79  be provided benefits that are fair and adequate and that are
   80  managed, administered, and funded in an actuarially sound
   81  manner, as required by s. 14, Article X of the State
   82  Constitution and part VII of chapter 112, Florida Statutes.
   83  Therefore, the Legislature determines and declares that this act
   84  fulfills an important state interest.
   85         Section 3. This act shall take effect July 1, 2016.