Title: State-Administered Retirement Systems

Summary: Increases employer contribution to retiree health insurance subsidy for members of state-administered plan; increases employer contribution to health insurance subsidy for members of Elected Officers' Class; increases employer contribution to health insurance subsidy for members of Senior Management Service Class; increases employer contribution to health insurance subsidy for members of Regular, Special Risk, & Special Risk Administrative Support Classes; revises amount of employer contributions to FRS for 2015-2016 fiscal year; provides findings of important state interest.

Full Text:
An act relating to state-administered retirement systems; amending s. 112.363, F.S.; increasing the employer contribution to the retiree health insurance subsidy for members of a state-administered plan; amending s. 121.052, F.S.; increasing the employer contribution to the health insurance subsidy for members of the Elected Officers' Class; amending s. 121.055, F.S.; increasing the employer contribution to the health insurance subsidy for members of the Senior Management Service Class; amending s. 121.071, F.S.; increasing the employer contribution to the health insurance subsidy for members of the Regular, Special Risk, and Special Risk Administrative Support Classes;amending s. 121.71, F.S.; revising the amount of employer contributions to the Florida Retirement System for the 2015-2016 fiscal year; providing findings of important state interest; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (i) is added to subsection (8) of section 112.363, Florida Statutes, to read: 112.363 Retiree health insurance subsidy.-(8) CONTRIBUTIONS.-For purposes of funding the insurance HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE Ssubsidy provided by this section: (i) Beginning July 1, 2015, the employer of each member of a state-administered plan shall contribute 1.66 percent of gross compensation each pay period. Such contributions shall be submitted to the Department of Management Services and deposite din the Retiree Health Insurance Subsidy Trust Fund. Section 2. Paragraph (d) of subsection (7) of section 121.052, Florida Statutes, is amended to read: 121.052 Membership class of elected officers.-(7) CONTRIBUTIONS.-(d) The following table states the required employer contribution on behalf of each member of the Elected Officers' Class in terms of a percentage of the member's gross compensation. Such contribution constitutes the entire health insurance subsidy contribution with respect to ea ch such member. A change in the contribution rate is effective with the first salary paid on or after the beginning date of the change. The retiree health insurance subsidy contribution rate is as follows: Dates of Contribution Rate Changes Contribution Rate October 1, 1987, through December 31, 1988 0.24% HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE SJanuary 1, 1989, through December 31, 1993 0.48% January 1, 1994, through December 31, 1994 0.56% January 1, 1995, through June 30, 1998 0.66% July 1, 1998, through June 30, 2001 0.94% July 1, 2001, through June 30, 2013 1.11% July 1, 2013, through June 30, 2014 1.20% Effective July 1, 2014,through June 30, 2015 1.26% Effective July 1, 2015 1.66% Such contributions and accompanying payroll data are due and payable no later than the 5th working day of the month immediately following the month during which the payroll period ended and shall be deposited by the administrator in the Retiree Health Insurance Subsidy Trust Fund. Section 3. Paragraph (d) of subsection (3) of section 121.055, Florida Statutes, is amended to read: 121.055 Senior Management Service Class.-There is hereby HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sestablished a separate class of membership within the Florida Retirement System to be known as the "Senior Management Service Class," which shall bec ome effective February 1, 1987. (3) (d) The following table states the required employer contribution on behalf of each member of the Senior Management Service Class in terms of a percentage of the member's gross compensation. Such contribution constitu tes the entire health insurance subsidy contribution with respect to each such member. A change in the contribution rate is effective with the first salary paid on or after the beginning date of the change. The retiree health insurance subsidy contribution rate is as follows: Dates of Contribution Rate Changes Contribution Rate October 1, 1987, through December 31, 1988 0.24% January 1, 1989, through December 31, 1993 0.48% January 1, 1994, through December 31, 1994 0.56% January 1, 1995, through June 30, 1998 0.66% HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE SJuly 1, 1998, through June 30, 2001 0.94% July 1, 2001, through June 30, 2013 1.11% July 1, 2013, through June 30, 2014 1.20% Effective July 1, 2014,through June 30, 2015 1.26% Effective July 1, 2015 1.66% Such contributions and accompanying payroll data are due and payable no later than the 5th working day of the month immediately following the month during which the payroll period ended and shall be deposited by the administrator in the Retiree Health Insurance Subsidy Trust Fund. Section 4. Subsection (4) of section 121.071, Florida Statutes, is amended to read: 121.071 Contributions.-Contributions to the system shall be made as follows: (4) The following table states the required employer contribution on behalf of each member of the Regular Class, Special Risk Class, or Special Risk Administrative Support Class in terms of a percentage of the member's gross compensation. Such contribution constitutes the entire health insurance subsidy contribution with respect to each such member. A change HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sin the contribution rate is effective with the first salary paid on or after the beginning date of the change. The retiree health insurance subsidy contribution rate is as follows: Dates of Contribution Rate Changes Contribution Rate October 1, 1987, through December 31, 1988 0.24% January 1, 1989, through December 31, 1993 0.48% January 1, 1994, through December 31, 1994 0.56% January 1, 1995, through June 30, 1998 0.66% July 1, 1998, through June 30, 2001 0.94% July 1, 2001, through June 30, 2013 1.11% July 1, 2013, through June 30, 2014 1.20% Effective July 1, 2014,through June 30, 2015 1.26% Effective July 1, 2015 1.66% Such contributions shall be deposited by the administrator in HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sthe Retiree Health Insurance Subsidy Trust Fund. Section 5. Subsections (4) and (5) of section 121.71, Florida Statutes, are amended to read: 121.71 Uniform rates; process; calculations; levy.-(4) Required employer retirement contribution rate sfor each membership class and subclass of the Florida Retirement System for both retirement plans are as follows: Membership Class Percentage of Gross Compensation, Effective July 1, 2015 2014 Regular Class 2.91% 3.53% Special Risk Class 11.35% 11.01% Special Risk Administrative Support Class 3.71% 4.18% Elected Officers' Class-Legislators, Governor, 6.48% 6.30% HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE SLt. Governor, Cabinet Officers, State Attorneys, Public Defenders Elected Officers' Class-Justices, Judges 11.39% 10.10% Elected Officers' Class-County Elected Officers 8.48% 8.36% Senior Management Class 4.32% 4.80% DROP 4.10% 4.30% (5) In order to address unfunded actuarial liabilities of the system, the required employer retirement contribution rates for each membership class and subclass of the Florida Retirement System for both retirement plans are as follows: Membership Class Percentage of Gross Compensation, Effective July 1, 2015 2014 HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE SRegular Class 2.65% 2.54% Special Risk Class 8.99% 7.51% Special Risk Administrative Support Class 27.54% 36.59% Elected Officers' Class-Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 37.62% 38.66% Elected Officers' Class-Justices, Judges 22.62% 21.77% Elected Officers' Class-County Elected Officers 32.09% 33.58% Senior Management Service Class 15.41% 15.04% DROP 7.12% 6.72% HB 5A 2015A hb0005a FL OR I DA HO US EO FR EP RE SE NT A TI VE SSection 6. The Legislature finds that a proper and legitimate state purpose is served when employees, officers, and retirees of the state and its political subdivisions, and the dependents, survivors, and beneficiaries of such employees, officers, and retirees, are extended the basic protections afforded by governmental retirement systems. These persons must be provided benefits that are fair and adequate and that are managed, administered, and funded in an actuarially sound manner, as required by s. 14, Article Xof the State Constitution and part VII of chapter 112, Florida Statutes. Therefore, the Legislature determines and declares that this act fulfills an important state interest. Section 7. The Legislature finds that a proper and legitimate state purpose is served when employees, officers, and retirees of the state and its politic al subdivisions, and the dependents, survivors, and beneficiaries of such employees, officers, and retirees, are extended the basic protections afforded by governmental retirement systems that provide fair and adequate benefits, including health insurance subsidies, and that are managed, administered, and funded in a sustainable manner. Therefore, the Legislature determines and declares that this act fulfills an important state interest. Section 8. This act shall take effect July 1, 2015.