Florida Senate - 2015 SB 2512-A
By Senator Lee
24-00014-15A 20152512A__
1 A bill to be entitled
2 An act relating to employer contributions to fund
3 retiree benefits; amending ss. 112.363, 121.052,
4 121.055, and 121.071, F.S.; revising the employer
5 contribution rates for the retiree health insurance
6 subsidy; amending s. 121.71, F.S.; revising the
7 required employer retirement contribution rates for
8 members of each membership class and subclass of the
9 Florida Retirement System; providing findings of an
10 important state interest; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (i) is added to subsection (8) of
15 section 112.363, Florida Statutes, to read:
16 112.363 Retiree health insurance subsidy.—
17 (8) CONTRIBUTIONS.—For purposes of funding the insurance
18 subsidy provided by this section:
19 (i) Beginning July 1, 2015, the employer of each member of
20 a state-administered retirement plan shall contribute 1.58
21 percent of gross compensation each pay period.
22
23 Such contributions shall be submitted to the Department of
24 Management Services and deposited in the Retiree Health
25 Insurance Subsidy Trust Fund.
26 Section 2. Paragraph (d) of subsection (7) of section
27 121.052, Florida Statutes, is amended to read:
28 121.052 Membership class of elected officers.—
29 (7) CONTRIBUTIONS.—
30 (d) The following table states the required employer
31 contribution on behalf of each member of the Elected Officers’
32 Class in terms of a percentage of the member’s gross
33 compensation. Such contribution constitutes the entire health
34 insurance subsidy contribution with respect to each such member.
35 A change in the contribution rate is effective with the first
36 salary paid on or after the beginning date of the change. The
37 retiree health insurance subsidy contribution rate is as
38 follows:
39
40 Dates of Contribution Rate Changes ContributionRate
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 Effective July 1, 2014, through June 30, 2015 1.26%
49 Effective July 1, 2015 1.58%
50 Such contributions and accompanying payroll data are due and
51 payable no later than the 5th working day of the month
52 immediately following the month during which the payroll period
53 ended and shall be deposited by the administrator in the Retiree
54 Health Insurance Subsidy Trust Fund.
55 Section 3. Paragraph (d) of subsection (3) of section
56 121.055, Florida Statutes, is amended to read:
57 121.055 Senior Management Service Class.—There is hereby
58 established a separate class of membership within the Florida
59 Retirement System to be known as the “Senior Management Service
60 Class,” which shall become effective February 1, 1987.
61 (3)
62 (d) The following table states the required employer
63 contribution on behalf of each member of the Senior Management
64 Service Class in terms of a percentage of the member’s gross
65 compensation. Such contribution constitutes the entire health
66 insurance subsidy contribution with respect to each such member.
67 A change in the contribution rate is effective with the first
68 salary paid on or after the beginning date of the change. The
69 retiree health insurance subsidy contribution rate is as
70 follows:
71
72 Dates of Contribution Rate Changes ContributionRate
73 October 1, 1987, through December 31, 1988 0.24%
74 January 1, 1989, through December 31, 1993 0.48%
75 January 1, 1994, through December 31, 1994 0.56%
76 January 1, 1995, through June 30, 1998 0.66%
77 July 1, 1998, through June 30, 2001 0.94%
78 July 1, 2001, through June 30, 2013 1.11%
79 July 1, 2013, through June 30, 2014 1.20%
80 Effective July 1, 2014, through June 30, 2015 1.26%
81 Effective July 1, 2015 1.58%
82 Such contributions and accompanying payroll data are due and
83 payable no later than the 5th working day of the month
84 immediately following the month during which the payroll period
85 ended and shall be deposited by the administrator in the Retiree
86 Health Insurance Subsidy Trust Fund.
87 Section 4. Subsection (4) of section 121.071, Florida
88 Statutes, is amended to read:
89 121.071 Contributions.—Contributions to the system shall be
90 made as follows:
91 (4) The following table states the required employer
92 contribution on behalf of each member of the Regular Class,
93 Special Risk Class, or Special Risk Administrative Support Class
94 in terms of a percentage of the member’s gross compensation.
95 Such contribution constitutes the entire health insurance
96 subsidy contribution with respect to each such member. A change
97 in the contribution rate is effective with the first salary paid
98 on or after the beginning date of the change. The retiree health
99 insurance subsidy contribution rate is as follows:
100
101 Dates of Contribution Rate Changes ContributionRate
102 October 1, 1987, through December 31, 1988 0.24%
103 January 1, 1989, through December 31, 1993 0.48%
104 January 1, 1994, through December 31, 1994 0.56%
105 January 1, 1995, through June 30, 1998 0.66%
106 July 1, 1998, through June 30, 2001 0.94%
107 July 1, 2001, through June 30, 2013 1.11%
108 July 1, 2013, through June 30, 2014 1.20%
109 Effective July 1, 2014, through June 30, 2015 1.26%
110 Effective July 1, 2015 1.58%
111 Such contributions shall be deposited by the administrator in
112 the Retiree Health Insurance Subsidy Trust Fund.
113 Section 5. Subsections (4) and (5) of section 121.71,
114 Florida Statutes, are amended to read:
115 121.71 Uniform rates; process; calculations; levy.—
116 (4) Required employer retirement contribution rates for
117 each membership class and subclass of the Florida Retirement
118 System for both retirement plans are as follows:
119
120 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2015 2014
121 Regular Class 2.91% 3.53%
122 Special Risk Class 11.35% 11.01%
123 Special Risk Administrative Support Class 3.71% 4.18%
124 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 6.48% 6.30%
125 Elected Officers’ Class— Justices, Judges 11.39% 10.10%
126 Elected Officers’ Class— County Elected Officers 8.48% 8.36%
127 Senior Management Class 4.32% 4.80%
128 DROP 4.10% 4.30%
129 (5) In order to address unfunded actuarial liabilities of
130 the system, the required employer retirement contribution rates
131 for each membership class and subclass of the Florida Retirement
132 System for both retirement plans are as follows:
133
134
135 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2015 2014
136 Regular Class 2.65% 2.54%
137 Special Risk Class 8.99% 7.51%
138 Special Risk Administrative Support Class 27.54% 36.59%
139 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 37.62% 38.66%
140 Elected Officers’ Class— Justices, Judges 22.62% 21.77%
141 Elected Officers’ Class— County Elected Officers 32.09% 33.58%
142 Senior Management Service Class 15.41% 15.04%
143 DROP 7.12% 6.72%
144 Section 6. The Legislature finds that a proper and
145 legitimate state purpose is served when employees, officers, and
146 retirees of the state and its political subdivisions, and the
147 dependents, survivors, and beneficiaries of such employees,
148 officers, and retirees, are extended the basic protections
149 afforded by governmental retirement systems. These persons must
150 be provided benefits that are fair and adequate and that are
151 managed, administered, and funded in an actuarially sound
152 manner, as required by s. 14, Article X of the State
153 Constitution and part VII of chapter 112, Florida Statutes.
154 Therefore, the Legislature determines and declares that this act
155 fulfills an important state interest.
156 Section 7. The Legislature finds that a proper and
157 legitimate state purpose is served when employees, officers, and
158 retirees of the state and of its political subdivisions, and the
159 dependents, survivors, and beneficiaries of such employees,
160 officers, and retirees, are extended the basic protections
161 afforded by governmental retirement systems that provide fair
162 and adequate benefits, including health insurance subsidies, and
163 that are managed, administered, and funded in a reasonable
164 manner. Therefore, the Legislature determines and declares that
165 this act fulfills an important state interest.
166 Section 8. This act shall take effect July 1, 2015.