Bill Text: FL S7038 | 2022 | Regular Session | Prefiled

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

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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-Prefiled.html

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       Florida Senate - 2022                   (PROPOSED BILL) SPB 7038
       
       
        
       FOR CONSIDERATION By the Committee on Governmental Oversight and
       Accountability
       
       
       
       
       585-01820-22                                          20227038pb
    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.