Bill Text: FL S7038 | 2022 | Regular Session | Introduced
Bill Title: Retirement
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-17 - Laid on Table, refer to HB 5007 [S7038 Detail]
Download: Florida-2022-S7038-Introduced.html
Florida Senate - 2022 SB 7038
By the Committee on Governmental Oversight and Accountability
585-02337-22 20227038__
1 A bill to be entitled
2 An act relating to retirement; amending ss. 112.363,
3 121.052, 121.055, and 121.071, F.S.; revising the
4 employer contribution rates for the retiree health
5 insurance subsidy as of a specified date; amending s.
6 121.71, F.S.; revising required employer retirement
7 contribution rates for each membership class of the
8 Florida Retirement 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. Paragraph (j) is added to subsection (8) of
14 section 112.363, Florida Statutes, to read:
15 112.363 Retiree health insurance subsidy.—
16 (8) CONTRIBUTIONS.—For purposes of funding the insurance
17 subsidy provided by this section:
18 (j) Beginning July 1, 2022, the employer of each member of
19 a state-administered plan shall contribute 1.50 percent of gross
20 compensation each pay period.
21
22 Such contributions shall be submitted to the Department of
23 Management Services and deposited in the Retiree Health
24 Insurance Subsidy Trust Fund.
25 Section 2. Paragraph (d) of subsection (7) of section
26 121.052, Florida Statutes, is amended to read:
27 121.052 Membership class of elected officers.—
28 (7) CONTRIBUTIONS.—
29 (d) The following table states the required employer
30 contribution on behalf of each member of the Elected Officers’
31 Class in terms of a percentage of the member’s gross
32 compensation. Such contribution constitutes the entire health
33 insurance subsidy contribution with respect to each such member.
34 A change in the contribution rate is effective with the first
35 salary paid on or after the beginning date of the change. The
36 retiree health insurance subsidy contribution rate is as
37 follows:
38
39 Dates of Contribution Rate Changes ContributionRate
40
41 October 1, 1987, through December 31, 1988 0.24%
42 January 1, 1989, through December 31, 1993 0.48%
43 January 1, 1994, through December 31, 1994 0.56%
44 January 1, 1995, through June 30, 1998 0.66%
45 July 1, 1998, through June 30, 2001 0.94%
46 July 1, 2001, through June 30, 2013 1.11%
47 July 1, 2013, through June 30, 2014 1.20%
48 July 1, 2014, through June 30, 2015 1.26%
49 Effective July 1, 2015, through June 30, 2022 1.66%
50 Effective July 1, 2022 1.50%
51 Such contributions and accompanying payroll data are due and
52 payable no later than the 5th working day of the month
53 immediately following the month during which the payroll period
54 ended and shall be deposited by the administrator in the Retiree
55 Health Insurance Subsidy Trust Fund.
56 Section 3. Paragraph (d) of subsection (3) of section
57 121.055, Florida Statutes, is amended to read:
58 121.055 Senior Management Service Class.—There is hereby
59 established a separate class of membership within the Florida
60 Retirement System to be known as the “Senior Management Service
61 Class,” which shall become effective February 1, 1987.
62 (3)
63 (d) The following table states the required employer
64 contribution on behalf of each member of the Senior Management
65 Service Class in terms of a percentage of the member’s gross
66 compensation. Such contribution constitutes the entire health
67 insurance subsidy contribution with respect to each such member.
68 A change in the contribution rate is effective with the first
69 salary paid on or after the beginning date of the change. The
70 retiree health insurance subsidy contribution rate is as
71 follows:
72
73 Dates of Contribution Rate Changes ContributionRate
74
75 October 1, 1987, through December 31, 1988 0.24%
76 January 1, 1989, through December 31, 1993 0.48%
77 January 1, 1994, through December 31, 1994 0.56%
78 January 1, 1995, through June 30, 1998 0.66%
79 July 1, 1998, through June 30, 2001 0.94%
80 July 1, 2001, through June 30, 2013 1.11%
81 July 1, 2013, through June 30, 2014 1.20%
82 July 1, 2014, through June 30, 2015 1.26%
83 Effective July 1, 2015, through June 30, 2022 1.66%
84 Effective July 1, 2022 1.50%
85 Such contributions and accompanying payroll data are due and
86 payable no later than the 5th working day of the month
87 immediately following the month during which the payroll period
88 ended and shall be deposited by the administrator in the Retiree
89 Health Insurance Subsidy Trust Fund.
90 Section 4. Subsection (4) of section 121.071, Florida
91 Statutes, is amended to read:
92 121.071 Contributions.—Contributions to the system shall be
93 made as follows:
94 (4) The following table states the required employer
95 contribution on behalf of each member of the Regular Class,
96 Special Risk Class, or Special Risk Administrative Support Class
97 in terms of a percentage of the member’s gross compensation.
98 Such contribution constitutes the entire health insurance
99 subsidy contribution with respect to each such member. A change
100 in the contribution rate is effective with the first salary paid
101 on or after the beginning date of the change. The retiree health
102 insurance subsidy contribution rate is as follows:
103
104 Dates of Contribution Rate Changes ContributionRate
105
106 October 1, 1987, through December 31, 1988 0.24%
107 January 1, 1989, through December 31, 1993 0.48%
108 January 1, 1994, through December 31, 1994 0.56%
109 January 1, 1995, through June 30, 1998 0.66%
110 July 1, 1998, through June 30, 2001 0.94%
111 July 1, 2001, through June 30, 2013 1.11%
112 July 1, 2013, through June 30, 2014 1.20%
113 July 1, 2014, through June 30, 2015 1.26%
114 Effective July 1, 2015, through June 30, 2022 1.66%
115 Effective July 1, 2022 1.50%
116 Such contributions shall be deposited by the administrator in
117 the Retiree Health Insurance Subsidy Trust Fund.
118 Section 5. Subsections (4) and (5) of section 121.71,
119 Florida Statutes, are amended to read:
120 121.71 Uniform rates; process; calculations; levy.—
121 (4) Required employer retirement contribution rates for
122 each membership class and subclass of the Florida Retirement
123 System for both retirement plans are as follows:
124
125 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2022 2021
126
127 Regular Class 5.16% 4.91%
128 Special Risk Class 15.91% 15.27%
129 Special Risk Administrative Support Class 9.91% 9.73%
130 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 8.34% 8.49%
131 Elected Officers’ Class— Justices, Judges 13.90% 13.38%
132 Elected Officers’ Class— County Elected Officers 10.31% 10.28%
133 Senior Management Class 6.83% 6.49%
134 DROP 7.77% 7.23%
135 (5) In order to address unfunded actuarial liabilities of
136 the system, the required employer retirement contribution rates
137 for each membership class and subclass of the Florida Retirement
138 System for both retirement plans are as follows:
139
140 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2022 2021
141
142 Regular Class 4.23% 4.19%
143 Special Risk Class 9.53% 8.90%
144 Special Risk Administrative Support Class 26.16% 26.31%
145 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 56.76% 53.52%
146 Elected Officers’ Class— Justices, Judges 27.64% 25.81%
147 Elected Officers’ Class— County Elected Officers 43.98% 39.42%
148 Senior Management Service Class 22.15% 20.80%
149 DROP 9.15% 9.45%
150 Section 6. The Legislature finds that a proper and
151 legitimate state purpose is served when employees, officers, and
152 retirees of the state and its political subdivisions, and the
153 dependents, survivors, and beneficiaries of such employees,
154 officers, and retirees, are extended the basic protections
155 afforded by governmental retirement systems. These persons must
156 be provided benefits that are fair and adequate and that are
157 managed, administered, and funded in an actuarially sound manner
158 as required by s. 14, Article X of the State Constitution and
159 part VII of chapter 112, Florida Statutes. Therefore, the
160 Legislature determines and declares that this act fulfills an
161 important state interest.
162 Section 7. This act shall take effect July 1, 2022.
