Bill Text: FL S2506 | 2014 | Regular Session | Introduced
Bill Title: State-administered Retirement Systems
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-04-03 - Laid on Table, companion bill(s) passed, see HB 5005 (Ch. 2014-54), HB 5001 (Ch. 2014-51) [S2506 Detail]
Download: Florida-2014-S2506-Introduced.html
Florida Senate - 2014 SB 2506 By the Committee on Governmental Oversight and Accountability 585-02566-14 20142506__ 1 A bill to be entitled 2 An act relating to state-administered retirement 3 systems; amending s. 112.363, F.S.; increasing the 4 employer contribution to the retiree health insurance 5 subsidy for members of a state-administered plan; 6 amending s. 121.052, F.S.; increasing the employer 7 contribution to the health insurance subsidy for 8 members of the Elected Officers’ Class; amending s. 9 121.055, F.S.; increasing the employer contribution to 10 the health insurance subsidy for members of the Senior 11 Management Service Class; amending s. 121.071, F.S.; 12 increasing the employer contribution to the health 13 insurance subsidy for members of the Regular, Special 14 Risk, and Special Risk Administrative Support Classes; 15 amending s. 121.71, F.S.; revising the amount of 16 employer contributions for the next fiscal year; 17 amending s. 121.74, F.S.; revising terminology to 18 refer to an employer assessment to offset the costs of 19 administering the investment plan and providing 20 education services; providing findings of important 21 state interests; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Paragraph (h) is added to subsection (8) of 26 section 112.363, Florida Statutes, to read: 27 112.363 Retiree health insurance subsidy.— 28 (8) CONTRIBUTIONS.—For purposes of funding the insurance 29 subsidy provided by this section: 30 (h) Beginning July 1, 2014, the employer of each member of 31 a state-administered plan shall contribute 1.30 percent of gross 32 compensation each pay period. 33 34 Such contributions shall be submitted to the Department of 35 Management Services and deposited in the Retiree Health 36 Insurance Subsidy Trust Fund. 37 Section 2. Paragraph (d) of subsection (7) of section 38 121.052, Florida Statutes, is amended to read: 39 121.052 Membership class of elected officers.— 40 (7) CONTRIBUTIONS.— 41 (d) The following table states the required employer 42 contribution on behalf of each member of the Elected Officers’ 43 Class in terms of a percentage of the member’s gross 44 compensation. Such contribution constitutes the entire health 45 insurance subsidy contribution with respect to each such member. 46 A change in the contribution rate is effective with the first 47 salary paid on or after the beginning date of the change. The 48 retiree health insurance subsidy contribution rate is as 49 follows: 50 51 Dates of Contribution Rate Changes ContributionRate 52 October 1, 1987, through December 31, 1988 0.24% 53 January 1, 1989, through December 31, 1993 0.48% 54 January 1, 1994, through December 31, 1994 0.56% 55 January 1, 1995, through June 30, 1998 0.66% 56 July 1, 1998, through June 30, 2001 0.94% 57 July 1, 2001, through June 30, 2013 1.11% 58EffectiveJuly 1, 2013, through June 30, 2014 1.20% 59 Effective July 1, 2014 1.30% 60 61 Such contributions and accompanying payroll data are due and 62 payable no later than the 5th working day of the month 63 immediately following the month during which the payroll period 64 ended and shall be deposited by the administrator in the Retiree 65 Health Insurance Subsidy Trust Fund. 66 Section 3. Paragraph (d) of subsection (3) of section 67 121.055, Florida Statutes, is amended to read: 68 121.055 Senior Management Service Class.—There is hereby 69 established a separate class of membership within the Florida 70 Retirement System to be known as the “Senior Management Service 71 Class,” which shall become effective February 1, 1987. 72 (3) 73 (d) The following table states the required employer 74 contribution on behalf of each member of the Senior Management 75 Service Class in terms of a percentage of the member’s gross 76 compensation. Such contribution constitutes the entire health 77 insurance subsidy contribution with respect to each such member. 78 A change in the contribution rate is effective with the first 79 salary paid on or after the beginning date of the change. The 80 retiree health insurance subsidy contribution rate is as 81 follows: 82 83 Dates of Contribution Rate Changes ContributionRate 84 85 October 1, 1987, through December 31, 1988 0.24% 86 January 1, 1989, through December 31, 1993 0.48% 87 January 1, 1994, through December 31, 1994 0.56% 88 January 1, 1995, through June 30, 1998 0.66% 89 July 1, 1998, through June 30, 2001 0.94% 90 July 1, 2001, through June 30, 2013 1.11% 91EffectiveJuly 1, 2013, through June 30, 2014 1.20% 92 Effective July 1, 2014 1.30% 93 94 Such contributions and accompanying payroll data are due and 95 payable no later than the 5th working day of the month 96 immediately following the month during which the payroll period 97 ended and shall be deposited by the administrator in the Retiree 98 Health Insurance Subsidy Trust Fund. 99 Section 4. Subsection (4) of section 121.071, Florida 100 Statutes, is amended to read: 101 121.071 Contributions.—Contributions to the system shall be 102 made as follows: 103 (4) The following table states the required employer 104 contribution on behalf of each member of the Regular Class, 105 Special Risk Class, or Special Risk Administrative Support Class 106 in terms of a percentage of the member’s gross compensation. 107 Such contribution constitutes the entire health insurance 108 subsidy contribution with respect to each such member. A change 109 in the contribution rate is effective with the first salary paid 110 on or after the beginning date of the change. The retiree health 111 insurance subsidy contribution rate is as follows: 112 113 Dates of Contribution Rate Changes ContributionRate 114 October 1, 1987, through December 31, 1988 0.24% 115 January 1, 1989, through December 31, 1993 0.48% 116 January 1, 1994, through December 31, 1994 0.56% 117 January 1, 1995, through June 30, 1998 0.66% 118 July 1, 1998, through June 30, 2001 0.94% 119 July 1, 2001, through June 30, 2013 1.11% 120EffectiveJuly 1, 2013, through June 30, 2014 1.20% 121 Effective July 1, 2014 1.30% 122 123 Such contributions shall be deposited by the administrator in 124 the Retiree Health Insurance Subsidy Trust Fund. 125 Section 5. Subsections (4) and (5) of section 121.71, 126 Florida Statutes, are amended to read: 127 121.71 Uniform rates; process; calculations; levy.— 128 (4) Required employer retirement contribution rates for 129 each membership class and subclass of the Florida Retirement 130 System for both retirement plans are as follows: 131 132 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 20142013133 134 Regular Class 3.53% 135 Special Risk Class 11.01%11.00%136 Special Risk Administrative Support Class 4.18%4.17%137 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.30%6.52%138 Elected Officers’ Class— Justices, Judges 10.10%10.05%139 Elected Officers’ Class— County Elected Officers 8.36%8.44%140 Senior Management Class 4.80%4.81%141 DROP 4.30%4.63%142 (5) In order to address unfunded actuarial liabilities of 143 the system, the required employer retirement contribution rates 144 for each membership class and subclass of the Florida Retirement 145 System for both retirement plans are as follows: 146 147 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 20142013148 149 Regular Class 2.54%2.19%150 Special Risk Class 7.51%6.83%151 Special Risk Administrative Support Class 36.59%30.56%152 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 38.66%24.85%153 Elected Officers’ Class— Justices, Judges 21.77%17.00%154 Elected Officers’ Class— County Elected Officers 33.58%23.36%155 Senior Management Service Class 15.04%12.27%156 DROP 6.72%7.01%157 Section 6. Section 121.74, Florida Statutes, is amended to 158 read: 159 121.74 Administrative and educational expenses.—In addition 160 to contributions required to fund member accounts under ss. 161 121.71 and 121.73, effective July 1, 2010, through June 30, 162 2014, employers participating in the Florida Retirement System 163 shall contribute an employer assessment amount equal to 0.03 164 percent of the payroll reported for each class or subclass of 165 Florida Retirement System membership. Effective July 1, 2014, 166 the employer assessment iscontribution rate shall be0.04 167 percent of the payroll reported for each class or subclass of 168 membership. The amount assessedcontributedshall be transferred 169 by the Division of Retirement from the Florida Retirement System 170 Contributions Clearing Trust Fund to the State Board of 171 Administration’s Administrative Trust Fund to offset the costs 172 of administering the investment plan and the costs of providing 173 educational services to members of the Florida Retirement 174 System. Approval of the trustees is required before the 175 expenditure of these funds. Payments for third-party 176 administrative or educational expenses shall be made only 177 pursuant to the terms of the approved contracts for such 178 services. 179 Section 7. The Legislature finds that a proper and 180 legitimate state purpose is served when employees, officers, and 181 retirees of the state and its political subdivisions, and the 182 dependents, survivors, and beneficiaries of such employees, 183 officers, and retirees, are extended the basic protections 184 afforded by governmental retirement systems. These persons must 185 be provided benefits that are fair and adequate and that are 186 managed, administered, and funded in an actuarially sound 187 manner, as required by s. 14, Article X of the State 188 Constitution and part VII of chapter 112, Florida Statutes. 189 Therefore, the Legislature determines and declares that this act 190 fulfills an important state interest. 191 Section 8. The Legislature finds that a proper and 192 legitimate state purpose is served when employees, officers, and 193 retirees of the state and its political subdivisions, and the 194 dependents, survivors, and beneficiaries of such employees, 195 officers, and retirees, are extended the basic protections 196 afforded by governmental retirement systems that provide fair 197 and adequate benefits, including health insurance subsidies, and 198 that are managed, administered, and funded in a sustainable 199 manner. Therefore, the Legislature determines and declares that 200 this act fulfills an important state interest. 201 Section 9. This act shall take effect July 1, 2014.