Bill > S7042

This bill makes several changes to the Florida Retirement System (FRS), which is a government-run retirement plan for state and local government employees. Primarily, it adjusts the required employer contribution rates for various employee categories, such as regular employees, special risk employees, and elected officials, with these new rates taking effect on July 1, 2016. Additionally, the bill clarifies that a portion of employer contributions designated for administrative and educational expenses will be transferred to the state board’s Administrative Trust Fund, rather than the Florida Retirement System Investment Plan Trust Fund. It also increases the employer assessment percentage for administrative and educational expenses from 0.04% to 0.06% of payroll, also effective July 1, 2016, with these funds going to the State Board of Administration’s Administrative Trust Fund to cover the costs of managing the investment plan and providing member education. The bill also includes a legislative finding that these changes serve a legitimate state interest by ensuring fair and adequate retirement benefits managed in an actuarially sound manner, as required by the Florida Constitution.