The 2000 Florida Legislature passed a number of FRS and local retirement bills. A brief summary of each passed bill follows.
CS/SB 94 6/1/00 Approved by Governor; Chapter No. 2000-167
The minimum in-line-of-duty disability benefit payable to Special Risk Class members who qualify for disability will be increased from 42% to 65%. This will apply to those members who retire on or after July 1, 2000. Members of other classes remain subject to the 42% minimum as provided by current law.
HB 2099 06/20/2000 Approved by Governor; Chapter No. 2000-347
HB 2099 provides statutory authority under Chapter 120 for existing DMS rules of the Division of Retirement and the Division of State Fleet Management. This bill made no substantive changes to either program.
HB 2393 06/01/2000 Approved by Governor; Chapter No. 2000-169
Six-year vesting for members of the current Florida Retirement System defined benefit plan (FRS DB) will be effective July 1, 2001, for members who are actively employed on that date.
Effective July 1, 2001, the minimum monthly Health Insurance Subsidy (HIS) benefit is reduced to $30 due to a reduction in the vesting period to 6 years of service ($5/mo X 6 yrs of service = $30). No HIS benefit will be reduced, but any member who retires on or after July 1, 2001, with the minimum 6 years of service would be eligible for an HIS benefit of $30 per month.
Effective July 1, 2001, the years of creditable service required to receive regular disability benefits will be reduced to 8 years of service.
Effective July 1, 2001, the years of creditable service justices or judges must complete in order to qualify for disability benefits based upon involuntary retirement by the Supreme Court has been reduced to 6 years of service.
The act provides for annual actuarial valuations of the system. The act also establishes a rate stabilization mechanism requiring the system actuaries to determine for the FRS Trust Fund the value of actuarial surplus each year and requiring the Legislature to maintain a reserve within the surplus to keep contribution rates steady over time. The mechanism sanctions use of only a limited part of the excess surplus each year.
The FRS Public Employee Optional Retirement Program, (PEORP), a defined contribution plan to be offered in 2002, will establish individual retirement investment accounts for each participant. Both current and new employees will be able to choose between the FRS DB and the PEORP. Some of the features of the PEORP include:
Vesting occurs after 1 year. Existing FRS service applies toward vesting in the PEORP.
No employee contributions will be required (or allowed). Employer contributions to be paid into the participant's annuity are set by statute as a percent of each participant's salary, as follows: Regular Class-9%; Special Risk Class-20%; Special Risk Administrative Support Class-11.35%; Subclasses of the Elected Officers Classes-Judicial-18.90%; State Elected Officers-13.40%; County Elected Officers-16.20%; and Senior Management Service Class-10.95%. Participants will be responsible for investment fees, but those will be negotiated at a later date. An additional contribution will be paid by the employer to provide disability coverage for participants in the PEORP plan, but that coverage will also be negotiated at a later date.
The State Board of Administration, headed by the Governor, Treasurer, and Comptroller, will administer the PEORP. The Division of Retirement will continue to administer the FRS defined benefit plan.
All employees eligible for the FRS DB plan will be eligible for the PEORP, except retirees (including DROP participants) and employees participating in the State University System Optional Retirement Program or the State Community College System Optional Retirement Program.
Existing members of the FRS DB plan will be given an opportunity to transfer to the FRS PEORP, after exposure to an educational program. Members may choose to maintain their retirement credit under the DB plan or to transfer the present value of their current defined benefit plan to the new program. Employees who fail to make an election within the 90-day transfer period will remain in the FRS DB plan. Transfer opportunities will occur at different times, based on their employer, and employees must make their decision within 90 days of the following dates: State employees - June 1, 2002, District school board employees - September 1, 2002, Local agency employees - December 1, 2002. Employees will be given one opportunity to reverse their decision.
Answers to individual questions about the impact of this new plan on individual retirement accounts is not available at this time. A lot of information, both general and individual will be made available before members are expected to make this choice.
Members of the Special Risk Class who retire on or after July 1, 2000 and who were members of that class between October 1978 and December 1992, will receive an upgrade in service credit, earning 3% of their average final compensation for each of those years. There will be no cost to the members or their employers for this additional benefit, which will be paid from the FRS Trust Fund surplus.
Additional positions have been added to the Senior Management Service Class (SMSC) effective January 1, 2001: Assistant state attorneys, assistant statewide prosecutors, assistant public defenders, and assistant capital collateral regional counsels. Also, effective July 1, 2000, up to 10 nonelective full-time positions within a local agency (including community colleges) that meet the criteria of a senior manager may be included by the agency in the SMSC, in addition to positions allowed based on the number of employees in the agency.
The Senior Management Service Optional Annuity Program was modified to allow for a lump-sum rollover distribution in addition to the other payout options provided under current law.
The following additional positions have been added to the Special Risk Class effective January 1, 2001:
Community-based correctional probation officers who meet the special criteria set forth in s. 121.051(2)(e), and
Any member who is in a professional health care bargaining unit or non-unit, is employed by the Department of Corrections or the Department of Children and Family Services, and meets the special criteria set forth in s. 121.0515(2)(f).
Membership in this class will not be retroactive.
The employer contribution rates for all FRS DB classes were reduced, based upon rate changes in both HB 2393 and CS/SB 94, effective July 1, 2000. The reduction was funded from the FRS Trust Fund surplus. The contribution rates* effective July 1, 2000 are:
Regular Class - 8.21%
Special Risk Class - 19.35%
Special Risk Administrative Support Class - 10.74%
Judges - 19.48%
Legislators, Governor, Lt. Governor, Cabinet, State Attorneys, Public Defenders - 13.31%
County, City, Special District Elected Officials - 16.05%
Senior Management Service Class - 10.19%
*NOTE: These rates do not include the Health Insurance Subsidy rate of 0.94%.
See the Contribution Rate page for a list of all the applicable contribution rates effective July 1, 2002.
HB 1089 05/25/2000 Approved by Governor; Chapter No. 2000-409 -
This bill makes miscellaneous changes to the West Palm Beach Firefighters Pension Fund.
HB 1091 05/25/2000 Approved by Governor; Chapter No. 2000-410 -
This bill makes miscellaneous changes to the West Palm Beach Police Pension Fund.
HB 1665 06/05/2000 Approved by Governor; Chapter No. 2000-448 -
This bill makes miscellaneous changes to the City of Orlando Fire Department Pension Fund.
HB 1715 06/07/2000 Approved by Governor; Chapter No. 2000-468 -
This bill makes miscellaneous changes to the Firefighters' Relief and Pension Fund of the City of Pensacola.
HB 1719 06/07/2000 Approved by Governor; Chapter No. 2000-470 -
This bill makes miscellaneous changes to the General Pension and Retirement Fund of the City of Pensacola.
HB 1769 06/07/2000 Approved by Governor; Chapter No. 2000-473 -
This bill makes miscellaneous changes to the City of Hollywood's Employee's Retirement Fund and Firefighter's Pension Fund.
HB 1805 06/07/2000 Approved by Governor; Chapter No. 2000-485 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
HB 1855 06/14/2000 Approved by Governor; Chapter No. 2000-490 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
SB 372 06/14/2000 Approved by Governor; Chapter No. 2000-264 -
This bill requires that local retirement system investments must be consistent with a written investment policy which lists authorized investments and prohibits investments not so listed.
The following retirement bills filed during the 2000 Florida Legislative Session were monitored by the Division of Retirement. A brief summary of each bill is available by following the appropriate bill link in the subject section. The bill summary contains a link to the Florida Legislature's Online Sunshine website which provides comprehensive information on the bill, including bill text, amendments, bill history, etc.
25 Year Normal Retirement - HB 573, SB 1190
Actuarial Assumption Conference - SB 1466
Alternative Retirement Plan - GR-2, HB 101, HB 649, HB 651, HB 2393, SB 210, SB 1352, SB 1434, SB 1566
Average Final Compensation - HB 99, HB 191, HB 635, SB 910, SB 914, SB 1026
City of Hollywood Pension Funds - HB 1769
City (Consolidated) of Jacksonville Pension Funds - HB 1863
City of Orlando Fire Department Pension Fund - HB 1665
City of Pensacola Pension Funds - HB 1715, HB 1719
City of Tampa Pension Funds - HB 1805, HB 1847, HB 1855, SB 2038, SB 2040, SB 2042
City of West Palm Beach Pension Funds - HB 1089, HB 1091, SB 1520, SB 1522
Claims Bill - SB 44
Division of Retirement - HB 2099, SB 2204, SB 2408
ILOD Disability - HB 127, HB 1103, HB 2393, SB 94, SB 1298
Local Retirement Systems -HB 303, SB 372
Military Service - HB 275, SB 812
Senior Management Service Class Expansion - HB 369, HB 805, HB 2393, SB 1054, SB 1440
Sick and Annual Leave - HB 831, SB 116, SB 820, SB 910, SB 1434
Special Risk Expansion - HB 229, HB 805, HB 2393, SB 1054, SB 2212, SB 2286
Special Risk Upgrade - HB 99, HB 191, HB 2393, SB 1026
Trust Funds - HB 1173
Vesting - HB 235, HB 2393, SB 1360
HB 99 -
This bill changes the Florida Retirement System definition of average final compensation from the average of the highest 5 fiscal years' salaries to the highest 3 fiscal years' salaries. This bill also provides a 3% per year accrual value for Special Risk Class service from October 1, 1978 to December 31, 1992, if the Special Risk Class member retires after July 1, 2000.
Back to subject list.
HB 101 -
This bill provides for an optional retirement program for all members of the Florida Retirement System.
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HB 127 -
This bill increases the minimum in-line-of-duty (ILOD) disability benefit for FRS Special Risk Class members from 42% to 65% of average final compensation (AFC) for an option 1 benefit, effective January 1, 2001.
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HB 191 -
This bill changes the Florida Retirement System definition of average final compensation for special risk members from the average of the highest 5 fiscal years' salaries to the highest 3 fiscal years' salaries. This bill also provides a 3% per year accrual value for Special Risk Class service from October 1, 1978 to December 31, 1992, if the Special Risk Class member retires after July 1, 2000.
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HB 229 -
This bill would add correctional probation officers, the supervisors of such officers, and probation and parole circuit and deputy circuit administrators to the Special Risk Class of the Florida Retirement System, effective January 1, 2001.
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HB 235 -
This bill changes the vesting requirement for all Florida Retirement System members to 5 years of creditable service.
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HB 275 -
This bill permits wartime veterans who have been employed on or after January 1, 1987 to purchase military service as additional years of employment for Florida Retirement System purposes.
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HB 303 -
This bill requires that the investment of the assets of any local retirement system or plan be consistent with a written investment policy and specifies requirements for such policies. Requires that such policies list authorized investments and prohibits investments not so listed.
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HB 369 -
This bill adds assistant state attorneys, assistant statewide prosecutors, and assistant public defenders to the Senior Management Service Class of the Florida Retirement System.
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HB 573 -
This bill allows district school board instructional personnel in the Regular Class to attain normal retirement after completing 25 years of creditable service, regardless of age (may include up to 4 years of military service).
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HB 635 -
This bill changes the Florida Retirement System definition of average final compensation for firefighters from the average of the highest 5 fiscal years' salaries to the highest 3 fiscal years' salaries.
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HB 649 -
This bill would create the Florida Millennium Retirement System (FMRS); a 401(k) defined contribution plan that would become effective June 1, 2000. The Florida Retirement System (FRS) will be closed to new membership effective May 31, 2000, and rights of FRS members are preserved except for those FRS members who elect to transfer to the FMRS. The FRS liability to be annuitized and excess assets to be transferred to the Florida's Future Trust Fund (see HB 651).
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HB 651 -
This bill would establish the Florida's Future Trust Fund, to be administered by the Department of Management Services. This trust fund would consist of FRS Trust Fund assets in excess of the FRS liability in HB 649.
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HB 805 -
This bill would add correctional probation officers, the supervisors of such officers, and probation and parole circuit and deputy circuit administrators to the Special Risk Class. The bill would also add assistant state attorneys, assistant statewide prosecutors, assistant public defenders and legislative assistants to the Senior Management Service Class.
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HB 831 -
This bill requires the Department of Management Services to contract with a private vendor for a tax-sheltered plan for state employees who are eligible to receive payment for their accumulated sick leave or annual leave upon termination of their employment.
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HB 1089 -
This bill makes miscellaneous changes to the West Palm Beach Firefighters Pension Fund.
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HB 1091 -
This bill makes miscellaneous changes to the West Palm Beach Police Pension Fund.
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HB 1103 -
The bill would require the Division of Retirement of the Department of Management Services to identify and locate specified members of the Florida Retirement System who have received in-line-of-duty disability benefits or in-line-of-duty death benefits prior to 1994 and to reimburse such members for income taxes paid in error.
Back to subject list.
HB 1173 -
This bill would provide a finding that specified trust funds administered by the State Board of Administration are exempt from constitutionally mandated termination.
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HB 1715 -
This bill makes miscellaneous changes to the Firefighters' Relief and Pension Fund of the City of Pensacola.
Back to subject list.
HB 1719 -
This bill makes miscellaneous changes to the General Pension and Retirement Fund of the City of Pensacola.
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HB 1769 -
This bill makes miscellaneous changes to the City of Hollywood's Employee's Retirement Fund and Firefighter's Pension Fund.
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HB 1805 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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HB 1847 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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HB 1855 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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HB 1863 -
This bill makes miscellaneous changes to the Consolidated City of Jacksonville's municipal firefighters' pension trust funds.
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HB 2099 -
This bill provides statutory authority under Chapter 120 for existing DMS rules of the Division of Retirement and the Division of State Fleet Management.
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HB 2393 -
See bill summary above.
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SB 44 -
This bill would provide an appropriation from the General Revenue Fund for the purpose of paying Johnny Stubbs the difference between the Florida Retirement System retirement benefits he has and will receive under the early retirement provisions and the benefits he would have received had he originally retired on an in-line-of-duty disability retirement.
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SB 94 -
This bill increases the minimum in-line-of-duty (ILOD) disability benefit for Florida Retirement System Special Risk Class members from 42% to 65% of average final compensation (AFC) for an option 1 benefit, effective January 1, 2001.
Back to subject list.
SB 116 -
This bill allows certain district school board and community college employees to annually contribute accumulated sick leave into pretax annuities, and places limitations on accumulated sick leave. Back to subject list.
SB 210 -
This bill would authorize the State Treasurer, on behalf of state agencies, and the governing body of a county, municipality, or other political subdivision to adopt a defined contribution plan to match all or a specified portion of public employees' contributions to a deferred compensation program.
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SB 372 -
This bill would require that the investment of the assets of any local retirement system or plan be consistent with a written investment policy and specify requirements for such policies. The bill would also require that such policies list authorized investments and prohibits investments not so listed.
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SB 812 -
This bill would permit wartime veterans who have been employed on or after January 1, 1987 to purchase military service as additional years of employment for Florida Retirement System purposes.
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SB 820 -
This bill requires the Department of Management Services to contract with a private vendor for a tax-sheltered plan for state employees who are eligible to receive payment for their accumulated sick leave or annual leave upon termination of their employment.
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SB 910 -
This bill would allow certain district school board employees to annually contribute accumulated sick leave into pretax annuities, and prohibits the use of accrued annual leave from being used in determining the average final calculation.
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SB 914 -
This bill would change the Florida Retirement System definition of average final compensation for firefighters from the average of the highest 5 fiscal years' salaries to the highest 3 fiscal years' salaries.
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SB 1026 -
This bill would change the Florida Retirement System definition of average final compensation for special risk members from the average of the highest 5 fiscal years' salaries to the highest 3 fiscal years' salaries. This bill also provides a 3% per year accrual value for Special Risk Class service from October 1, 1978, to December 31, 1992, if the Special Risk Class member retires after July 1, 2000.
Back to subject list.
SB 1054 -
This bill would add correctional probation officers, the supervisors of such officers, and probation and parole circuit and deputy circuit administrators to the Special Risk Class. Also adds assistant state attorneys, assistant statewide prosecutors, assistant public defenders and legislative assistants to the Senior Management Service Class.
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SB 1190 -
This bill allows district school board instructional personnel in the Regular Class to attain normal retirement after completing 25 years of creditable service regardless of age (may include up to 4 years of military service).
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SB 1298 -
This bill would require the Division of Retirement of the Department of Management Services to identify and locate specified members of the Florida Retirement System who have received in-line-of-duty disability benefits or in-line-of-duty death benefits prior to 1994 and reimburse such members for income taxes paid in error.
Back to subject list.
SB 1352 -
This bill would provide a statement of principles for the development of an optional retirement program for public employees.
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SB 1360 -
This bill would change the vesting requirement for all Florida Retirement System members to 5 years of creditable service.
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SB 1434 -
This bill would require the Department of Management Services to contract with a private vendor for an alternative retirement program for temporary and seasonal state employees. The bill also requires the Department of Management Services to contract with a private vendor for a tax-sheltered plan for state employees who are eligible to receive payment for their accumulated sick leave or annual leave upon termination of their employment.
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SB 1440 -
This bill would add assistant state attorneys, assistant statewide prosecutors, and assistant public defenders to the Senior Management Service Class of the Florida Retirement System.
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SB 1466 -
This bill would remove s. 121.031(3)(b), F.S., which created the Florida Retirement System Actuarial Assumption Conference and create s. 216.136(12), F.S., which recreates the Florida Retirement System Actuarial Assumption Conference.
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SB 1520- This bill would make miscellaneous changes to the West Palm Beach Firefighters Pension Fund.
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SB 1522 -
This bill makes miscellaneous changes to the West Palm Beach Police Pension Fund.
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SB 1566 -
This bill would create a portable retirement option, which is a defined contribution plan, for eligible public education employees. It would also prescribe duties of the Division of Retirement and qualifications for and duties of plan providers and create a Portable Retirement Option Commission, with duties for plan implementation and responsibility for continuing oversight.
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SB 2038 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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SB 2040 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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SB 2042 -
This bill makes miscellaneous changes to the City of Tampa's pension funds.
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SB 2204 -
This bill expresses legislative intent to revise the laws relating to the Florida Retirement System.
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SB 2212 -
This bill would add correctional probation officers, the supervisors of such officers, and probation and parole circuit and deputy circuit administrators to the Special Risk Class of the Florida Retirement System, effective January 1, 2001.
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SB 2286 -
This bill would add correctional probation officers, the supervisors of such officers, probation and parole circuit and deputy circuit administrators, and other employees of the Department of Corrections to the Special Risk Class of the Florida Retirement System, effective January 1, 2001.
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SB 2408 -
This bill would transfer functions of the Division of Retirement from the Department of Management Services to the State Board of Administration.
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