SB 784 — Retirement

Florida Senate - 2019 CS for SB 784 By Senatorthe GrutersCommittee 23-00497A-19on 2019784__Governmental AOversight billand toAccountability; be entitled An act relating to retirement;

and Senators Gruters, Broxson, and Albritton 585-04139-19 2019784c1 A bill to be entitled An act relating to retirement;

specifying the minimum amount of the factor used to calculate the cost-of-living adjustment offor benefits for certain retirees and beneficiaries of the Florida Retirement System;

amending s.

121.73, F.S.;

adjusting the allocation of funds to provide disability coverage to members of the investment plan of the Florida Retirement System;

amending s.

121.735, F.S.;

adjusting the allocation of funds to provide line-of-duty death benefits for members in the investment plan of the Florida Retirement System;

directing the Division of Law Revision to adjust the employer contribution rates for the Special Risk Class and DROP in the Florida Retirement System;

providing an effective date.dates.

919 Be It Enacted by the Legislature of the State of Florida:

1121 Section 1. Subsection (4) of section 121.101, Florida Statutes, is amended to read:

However, beginning with cost-of-living-adjustments effective July 1, 2019, for a retiree who was a member of the Special Risk Class,Class on June 30, 2011, and is a member of the Special Risk Class on the effective date of retirement, and his or her beneficiary, retiring on or after July 1, 2011, with service credit earned before July 1, 2011, the factor calculated pursuant to this paragraph may not be a product of less than 2.

Section 2. The2. Effective LegislatureJuly finds1, that2019, asubsection proper(3) and legitimate state purpose is served when employees and retirees of thesection state121.73, andFlorida itsStatutes, politicalis subdivisions,amended andto theread: dependents, survivors, and beneficiaries of such employees and retirees, are extended the basic protections afforded by governmental retirement systems.

121.73 Allocations for member disability coverage;

percentage amounts.— (3) Effective July 1, 2002, Allocations from the Florida Retirement System Contributions Clearing Trust Fund to provide disability coverage for members in the investment plan, and to offset the costs of administering said coverage, are as follows:

64 Membership Class Percentage of Gross Compensation 67 Regular Class 0.25% Special Risk Class 1.35% 1.33% Special Risk Administrative Support Class0.45% Elected Officers’ Class— Legislators, Governor, Lt.

Governor, Cabinet Officers, State Attorneys, Public Defenders0.41% Elected Officers’ Class— Justices, Judges0.73% Elected Officers’ Class— County Elected Officers0.41% Senior Management Service Class 0.26% Section 3. Effective July 1, 2019, subsection (3) of section 121.735, Florida Statutes, is amended to read:

121.735 Allocations for member line-of-duty death benefits;

percentage amounts.— (3) Effective July 1, 2017, Allocations from the Florida Retirement System Contributions Clearing Trust Fund to provide line-of-duty death benefits for members in the investment plan and to offset the costs of administering said coverage, are as follows:

84 Membership Class Percentage of Gross Compensation 86 Regular Class 0.05% Special Risk Class 1.17% 1.15% Special Risk Administrative Support Class 0.03% Elected Officers’ Class— Legislators, Governor, Lt.

Governor, Cabinet Officers, State Attorneys, Public Defenders 0.15% Elected Officers’ Class— Justices, Judges 0.09% Elected Officers’ Class— County Elected Officers 0.20% Senior Management Service Class 0.05% Section 4. (1) In order to fund the benefit changes provided in this act, the required employer contribution rates for members of the Florida Retirement System are increased as follows:

(a) By 0.01 percentage point for the rate established in s.

121.71(4), Florida Statutes, for the Special Risk Class.

(b) By 2.32 percentage points for the rate established in s.

121.71(5), Florida Statutes, for the Special Risk Class.

(c) By 0.01 percentage point for the rate established in s.

121.71(5), Florida Statutes, for DROP.

(2) The adjustments provided in subsection (1) are in addition to any other changes to such contribution rates which may be enacted into law to take effect on July 1, 2019.

The Division of Law Revision is directed to adjust accordingly the contribution rates provided in s.

121.71, Florida Statutes.

Section 5. The Legislature finds that a proper and legitimate state purpose is served when employees and retirees of the state and its political subdivisions, and the dependents, survivors, and beneficiaries of such employees and retirees, are extended the basis protections afforded by governmental retirement systems.

Section 3. This6. Except as otherwise expressly provided in this act, this act shall take effect upon becoming a law.