THE BILL ITSELF
HB 1441
Optional Retirement Programs for Public Postsecondary Employees
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A bill to be entitled
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An act relating to optional retirement programs for
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public postsecondary employees; amending ss. 121.35
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and 1012.875, F.S.; revising contribution amounts and
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how contributions are paid for specified optional
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retirement programs; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (a) of subsection (4) of section
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121.35, Florida Statutes, is amended to read:
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121.35 Optional retirement program for the State
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University System.—
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(4) CONTRIBUTIONS.—
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(a)1. Through June 30, 2001, each employer shall
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contribute on behalf of each member of the optional retirement
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program an amount equal to the normal cost portion of the
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employer retirement contribution which would be required if the
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employee were a regular member of the Florida Retirement System
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Pension Plan, plus the portion of the contribution rate required
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in s. 112.363(8) that would otherwise be assigned to the Retiree
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Health Insurance Subsidy Trust Fund.
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2. Effective July 1, 2001, through June 30, 2011, each
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employer shall contribute on behalf of each member of the
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optional retirement program an amount equal to 10.43 percent of
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the employee's gross monthly compensation.
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3. Effective July 1, 2011, through June 30, 2012, each
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member of the optional retirement program shall contribute an
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amount equal to the employee contribution required in s.
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121.71(3). The employer shall contribute on behalf of each such
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member an amount equal to the difference between 10.43 percent
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of the employee's gross monthly compensation and the amount
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equal to the employee's required contribution based on the
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employee's gross monthly compensation.
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4. Effective July 1, 2012, through June 30, 2026, each
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member of the optional retirement program shall contribute an
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amount equal to the employee contribution required in s.
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121.71(3). The employer shall contribute on behalf of each such
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member an amount equal to the difference between 8.15 percent of
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the employee's gross monthly compensation and the amount equal
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to the employee's required contribution based on the employee's
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gross monthly compensation.
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5. Effective July 1, 2026, each member of the optional
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retirement program shall contribute an amount equal to the
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employee contribution required in s. 121.71(3). The employer
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shall contribute an amount equal to the employer contribution
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required in s. 121.71(4) and (5).
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6.5. The payment of the contributions, including
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contributions by the employee, shall be made by the employer to
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the department, which shall forward the contributions to the
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designated company or companies contracting for payment of
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benefits for members of the program in the same manner as other
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retirement contributions. However, such contributions paid on
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behalf of an employee described in paragraph (3)(c) may not be
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forwarded to a company and do not begin to accrue interest until
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the employee has executed a contract and notified the
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department. The department shall deduct an amount from the
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contributions to provide for the administration of this program.
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Section 2. Paragraph (a) of subsection (4) of section
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1012.875, Florida Statutes, is amended to read:
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1012.875 State Community College System Optional
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Retirement Program.—Each Florida College System institution may
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implement an optional retirement program, if such program is
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established therefor pursuant to s. 1001.64(20), under which
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annuity or other contracts providing retirement and death
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benefits may be purchased by, and on behalf of, eligible
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employees who participate in the program, in accordance with s.
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403(b) of the Internal Revenue Code. Except as otherwise
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provided herein, this retirement program, which shall be known
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as the State Community College System Optional Retirement
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Program, may be implemented and administered only by an
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individual Florida College System institution or by a consortium
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of Florida College System institutions.
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(4)(a)1. Through June 30, 2011, each college must
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contribute on behalf of each program member an amount equal to
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10.43 percent of the employee's gross monthly compensation.
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2. Effective July 1, 2011, through June 30, 2012, each
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member shall contribute an amount equal to the employee
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contribution required under s. 121.71(3). The employer shall
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contribute on behalf of each program member an amount equal to
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the difference between 10.43 percent of the employee's gross
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monthly compensation and the employee's required contribution
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based on the employee's gross monthly compensation.
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3. Effective July 1, 2012, through June 30, 2026, each
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member shall contribute an amount equal to the employee
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contribution required under s. 121.71(3). The employer shall
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contribute on behalf of each program member an amount equal to
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the difference between 8.15 percent of the employee's gross
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monthly compensation and the employee's required contribution
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based on the employee's gross monthly compensation.
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4. Effective July 1, 2026, each member shall contribute an
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amount equal to the employee contribution required in s.
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121.71(3). The employer shall contribute an amount equal to the
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employer contribution required in s. 121.71(4) and (5).
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5.4. The college shall deduct an amount approved by the
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district board of trustees of the college to provide for the
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administration of the optional retirement program. Payment of
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this contribution must be made in the same manner as other
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retirement contributions directly by the college or through the
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program administrator to the designated company contracting for
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payment of benefits to the program member.
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Section 3. This act shall take effect July 1, 2026.