Amendment of the contribution rates

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NO.:RULE TITLE:

60S-3.003Retirement Contributions for Regular, Special Risk, Elected Officer, Special Risk Administrative Support and Senior Management Service Classes of the Pension and Investment Plans of the Florida Retirement System; Contributions for the Retiree Health Insurance Subsidy; and Contributions for the Deferred Retirement Option Program

PURPOSE AND EFFECT: Amendment of the contribution rates

SUMMARY: To amend the contribution rates

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: the economic review conducted by the agency.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 121.031, 112.363(7) FS.

LAW IMPLEMENTED: 112.363, 121.052, 121.055, 121.071, 121.091, 121.122, 121.030, 121.70, 121.71, 121.72 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: Friday, August 12, 2016 at 10 a.m.

PLACE: 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee, Florida 32311

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Garry Green, Chief, Bureau of Research and Member Communications, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311, 850-414-6349

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-3.003 Retirement Contributions for Regular, Special Risk, Elected Officer, Special Risk Administrative Support and Senior Management Service Classes of the Pension and Investment Plans of the Florida Retirement System; Contributions for the Retiree Health Insurance Subsidy; and Contributions for the Deferred Retirement Option Program.

The following tables state the required retirement and Retiree Health Insurance Subsidy contribution rates for members of the Florida Retirement System and their employers in terms of percentages of members’ gross compensation as defined in Rule 60S-6.001, F.A.C.; however, effective July 1, 1990, retirement contributions shall not be made on fiscal year compensation in excess of the Internal Revenue Code (IRC) section 401(a)(17) maximum as provided in the definition of Compensation in Rule 60S-6.001, F.A.C. Contribution rates for both members and employers have changed since they were originally established and these changes are reflected in these tables. Employer contribution rates for the Florida Retirement System Investment Plan are effective on and after July 1, 2002. Changes in the contribution rates are always effective with the first salary paid on or after the beginning date of a change. Contributions are required to be made or deducted as may be appropriate, each pay period.

Effective July 1, 2002, contribution rates represent a blended rate actuarially determined to combine the Pension Plan and Investment Plan rates, by class, (including the Investment Plan disability rates), reduced by application of funds from the surplus in the Florida Retirement System Trust Fund.

(1) Retirement contributions for Regular Class members are as follows:

	Dates of Rate Changes	Members	Employers
	December 1, 1970 through	4%	4%
	December 31, 1974, for
	state agencies, state
	universities, community
	colleges and district school
	boards
	December 1, 1970 through	4%	4%
	September 30, 1975, for
	county agencies, cities and
	independent special districts
	January 1, 1975 through	0%	9%
	September 30, 1978, for
	state agencies and state
	universities
	January 1, 1975 through	0%	9%
	July 31, 1978, for
	community colleges and
	district school boards
	October 1, 1975 through	0%	9%
	September 30, 1978, for
	county agencies, cities and
	independent special districts
	August 1, 1978 through	0%	9.1%
	September 30, 1981, for
	community colleges and
	district school boards
	October 1, 1978 through	0%	9.1%
	September 30, 1981, for
	state agencies, state
	universities, county
	agencies, cities, independent
	and special districts
	October 1, 1981 through	0%	10.93%
	September 30, 1984
	October 1, 1984 through	0%	12.24%
	September 30, 1986
	October 1, 1986 through	0%	13.14%
	December 31, 1988
	January 1, 1989 through	0%	13.90%
	December 31, 1989
	January 1, 1990 through	0%	14.66%
	December 31, 1990
	January 1, 1991 through	0%	15.72%
	December 31, 1991
	January 1, 1992 through	0%	16.51%
	December 31, 1992
	January 1, 1993 through	0%	17.27%
	December 31, 1993
	January 1, 1994 through	0%	17.10%
	December 31, 1994
	January 1, 1995 through	0%	16.91%
	December 31, 1995
	January 1, 1996 through	0%	17.00%
	June 30, 1996
	July 1, 1996 through June 30, 1998	0%	16.77%
	July 1, 1998 through June 30, 1999	0%	15.51%
	July 1, 1999 through June 30, 2000	0%	9.21%
	July 1, 2000 through June 30, 2001	0%	8.11%
	July 1, 2001 through June 30, 2002	0%	6.09%
	July 1, 2002 through June 30, 2003	0%	4.50%

July 1, 2003 through June 30, 20040%6.18%

July 1, 2004 through June 30, 20050%6.20%

July 1, 2005 through June 30, 20060%6.67%

July 1, 2006 through June 30, 20100%8.69%

July 1, 2010 through June 30, 20110%9.63%

July 1, 2011 through June 30, 20123%3.77%

Effective July 1, 2012 through June 30, 20133%              4.04%

July 1, 2013 through June 30, 20143%5.72%

July 1, 2014 through June 30 20153%6.07%

July 1, 2015 through June 30, 20163%5.56%

Effective July 1, 20163%5.80%

(2) Retirement contributions for Special Risk Class members are as follows:

	Dates of Rate Changes	Members	Employers
	December 1, 1970 through	6%	6%
	September 30, 1974
	October 1, 1974 through	8%	8%
	December 31, 1974, for
	state agencies, state
	universities, community
	colleges, and district school
	boards
	October 1, 1974 through	8%	8%
	September 30, 1975, for
	county agencies, cities and
	independent special districts
	January 1, 1975 through	0%	13%
	September 30, 1978, for
	state agencies, state
	universities, community
	colleges, and district school
	boards
	October 1, 1975 through	0%	13%
	September 30, 1978, for
	county agencies, cities, and
	independent special districts
	October 1, 1978 through	0%	13.95%
	September 30, 1981
	October 1, 1981 through	0%	13.91%
	September 30, 1984
	October 1, 1984 through	0%	14.67%
	September 30, 1986
	October 1, 1986 through	0%	15.11%
	December 31, 1988
	January 1, 1989 through	0%	17.50%
	December 31, 1989
	January 1, 1990 through	0%	19.90%
	December 31, 1990
	January 1, 1991 through	0%	25.52%
	December 31, 1991
	January 1, 1992 through	0%	26.35%
	December 31, 1992
	January 1, 1993 through	0%	27.14%
	December 31, 1993
	January 1, 1994 through	0%	27.03%
	December 31, 1994
	January 1, 1995 through	0%	26.83%
	December 31, 1995
	January 1, 1996 through	0%	26.84%
	June 30, 1996
	July 1, 1996 through June 30, 1998	0%	26.44%
	July 1, 1998 through June 30, 1999	0%	24.38%
	July 1, 1999 through June 30, 2000	0%	20.22%
	July 1, 2000 through June 30, 2001	0%	19.25%
	July 1, 2001 through June 30, 2002	0%	17.23%
	July 1, 2002 through June 30, 2003	0%	14.75%

July 1, 2003 through June 30, 20040%17.32%

July 1, 2004 through June 30, 20050%17.34%

July 1, 2005 through June 30, 20060%17.37%

July 1, 2006 through June 30, 20100%19.76%

July 1, 2010 through June 30, 20110%22.11%

July 1, 2011 through June 30, 20123%12.96%

Effective July 1, 2012 through June 30, 20133%13.76%

July 1, 2013 through June 30, 20143%  17.83%

July 1, 2014 through June 30 20153%  18.52%

July 1, 2015 through June 30, 20163%  20.34%

Effective July 1, 20163%  20.85%

(3) Retirement contributions for Special Risk Administrative Support Class members are as follows:

	Dates of Rate Changes	Members	Employers
	July 1, 1982 through	0%	11.14%
	September 30, 1984
	October 1, 1984 through	0%	13.09%
	September 30, 1986
	October 1, 1986 through	0%	15.44%
	December 31, 1988
	January 1, 1989 through	0%	14.76%
	December 31, 1989
	January 1, 1990 through	0%	14.09%
	December 31, 1990
	January 1, 1991 through	0%	20.16%
	December 31, 1991
	January 1, 1992 through	0%	19.51%
	December 31, 1992
	January 1, 1993 through	0%	18.83%
	December 31, 1993
	January 1, 1994 through	0%	18.59%
	December 31, 1994
	January 1, 1995 through	0%	17.81%
	December 31, 1995
	January 1, 1996 through	0%	17.80%
	June 30, 1996
	July 1, 1996 through June 30, 1998	0%	17.20%
	July 1, 1998 through June 30, 1999	0%	14.64%
	July 1, 1999 through June 30, 2000	0%	11.53%
	July 1, 2000 through June 30, 2001	0%	10.64%
	July 1, 2001 through June 30, 2002	0%	8.62%
	July 1, 2002 through June 30, 2003	0%	5.30%

July 1, 2003 through June 30, 20040%8.71%

July 1, 2004 through June 30, 20050%8.73%

July 1, 2005 through June 30, 20060%8.76%

July 1, 2006 through June 30, 20100%11.39%

July 1, 2010 through June 30, 20110%12.10%

July 1, 2011 through June 30, 20123%4.90%

Effective July 1, 2012 through June 30, 20133%4.77%

July 1, 2013 through June 30, 20143%  34.73%

July 1, 2014 through June 30 20153%  40.77%

July 1, 2015 through June 30, 20163%  31.25%

Effective July 1, 20163%  26.34%

(4) Retirement contributions for Elected Officers’ Class members are as follows:

	Dates of Rate Changes	Members	Employers
	July 1, 1972 through
	September 30, 1977
	Legislators	8%	8%
	All Other Members	8%	8%
	October 1, 1977 through
	September 30, 1978
	Legislators	8%	8%
	All Other Members	4%	12%
	October 1, 1978 through
	September 30, 1979
	Legislators	8%	10.57%
	All Other Members	4%	16.78%
	October 1, 1979 through
	September 30, 1981
	Legislators	8%	10.57%
	Governor, Lt. Governor,	4%	16.78%
	Cabinet Officer
	All Other Members	0%	20.78%
	July 1, 1981 through June 30, 1984
	County Elected Officers	0%	19.30%
	July 1, 1984 through
	September 30, 1984
	County Elected Officers	0%	20.25%
	October 1, 1981 through
	September 30, 1984
	Legislators	0%	19.30%
	Governor, Lt. Governor,	0%	21.03%
	Cabinet Officer
	State Attorney, Public	0%	20.95%
	Defender
	Justice or Judge	0%	22.55%
	October 1, 1984 through
	September 30, 1986
	Justice or Judge	0%	21.79%
	County Elected Officers	0%	16.97%
	All Other Members	0%	10.98%
	October 1, 1986 through
	December 31, 1988
	Justice or Judge	0%	20.94%
	County Elected Officers	0%	17.19%
	All Other Members	0%	11.50%
	January 1, 1989 through
	December 31, 1989
	Justice, Judge	0%	22.58%
	County Elected Officers	0%	18.44%
	All Other Members	0%	13.70%
	January 1, 1990 through
	December 31, 1990
	Justice, Judge	0%	24.22%
	County Elected Officers	0%	19.71%
	All Other Members	0%	15.91%
	January 1, 1991 through
	December 31, 1991
	Justice, Judge	0%	26.63%
	County Elected Officers	0%	23.32%
	All Other Members	0%	17.73%
	January 1, 1992 through
	December 31, 1992
	Justice, Judge	0%	28.27%
	County Elected Officers	0%	24.59%
	All Other Members	0%	19.94%
	January 1, 1993 through
	December 31, 1993
	Justice, Judge	0%	29.91%
	County Elected Officers	0%	25.84%
	All Other Members	0%	22.14%
	January 1, 1994 through
	December 31, 1994
	Justice, Judge	0%	30.52%
	County Elected Officers	0%	26.07%
	All Other Members	0%	22.65%
	January 1, 1995 through
	December 31, 1995
	Justice, Judge	0%	30.21%
	County Elected Officers	0%	27.48%
	All Other Members	0%	22.80%
	January 1, 1996 through
	June 30, 1996
	Justice, Judge	0%	30.15%
	County Elected Officers	0%	27.54%
	All Other Members	0%	22.90%
	July 1, 1996 through June 30, 1998
	Justice, Judge	0%	29.55%
	County Elected Officers	0%	27.33%
	All Other Members	0%	23.07%
	July 1, 1998 through June 30, 1999
	Justice, Judge	0%	27.21%
	County Elected Officers	0%	26.99%
	All Other Members	0%	22.33%
	July 1, 1999 through June 30, 2000
	Justice, Judge	0%	20.48%
	County Elected Officers	0%	17.05%
	All Other Members	0%	14.31%
	July 1, 2000 through June 30, 2001
	Justice, Judge	0%	19.38%
	County Elected Officers	0%	15.95%
	All Other Members	0%	13.21%
	July 1, 2001 through June 30, 2002
	Justice, Judge	0%	17.35%
	County Elected Officers	0%	13.93%
	All Other Members	0%	11.19%
	July 1, 2002 through June 30, 2003
	Justice, Judge	0%	14.60%
	County Elected Officers	0%	10.60%
	All Other Members	0%	8.15%

July 1, 2003 through June 30, 2004

Justice, Judge0%              17.44%

County Elected Officers0%              14.02%

All Other Members0%              11.28%

July 1, 2004 through June 30, 2005

Justice, Judge0%              17.46%

County Elected Officers0%              14.04%

All Other Members0%              11.30%

July 1, 2005 through June 30, 2006

Justice, Judge0%              17.49%

County Elected Officers0%              14.07%

All Other Members0%              11.33%

July 1, 2006 through June 30, 2010

Justice, Judge0%              18.40%

County Elected Officers0%              15.37%

All Other Members0%              13.32%

July 1, 2010 through June 30, 2011

Justice, Judge0%              20.65%

County Elected Officers0%              17.50%

All Other Members0%              15.20%

July 1, 2011 through June 30, 2012

Justice, Judge3%              10.55%

County Elected Officers3%              10.00%

All Other Members3%              7.90%

Effective July 1, 2012 through June 30, 2013

Justice, Judge3%              10.79%

County Elected Officers3%                9.09%

All Other Members3%                7.39%

July 1, 2013 through June 30, 2014

Justice, Judge3%              27.05%

County Elected Officers3%              31.80%

All Other Members3%              31.37%

July 1, 2014 through June 30, 2015

Justice, Judge3%              31.87%

County Elected Officers3%              41.94%

All Other Members3%              44.96%

July 1, 2015 through June 30, 2016

Justice, Judge3%              34.01%

County Elected Officers3%              40.57%

All Other Members3%              44.10%

Effective July 1, 2016

Justice, Judge3%              34.98%

County Elected Officers3%              40.75%

All Other Members3%              40.38%

(5) Retirement contributions for Senior Management Service Class members are as follows:

	Dates of Rate Changes	Members	Employers
	February 1, 1987 through	0%	13.88%
	December 31, 1988
	January 1, 1989 through	0%	14.95%
	December 31, 1989
	January 1, 1990 through	0%	16.04%
	December 31, 1990
	January 1, 1991 through	0%	18.39%
	December 31, 1991
	January 1, 1992 through	0%	19.48%
	December 31, 1992
	January 1, 1993 through	0%	20.55%
	December 31, 1993
	January 1, 1994 through	0%	23.07%
	December 31, 1994
	January 1, 1995 through	0%	23.88%
	December 31, 1995
	January 1, 1996 through	0%	24.14%
	June 30, 1996
	July 1, 1996, through June 30, 1998	0%	21.58%
	July 1, 1998 through June 30, 1999	0%	23.10%
	July 1, 1999 through June 30, 2000	0%	11.19%
	July 1, 2000 through June 30, 2001	0%	10.09%
	July 1, 2001 through June 30, 2002	0%	8.07%
	July 1, 2002 through June 30, 2003	0%	4.80%

July 1, 2003 through June 30, 20040%  8.16%

July 1, 2004 through June 30, 20050%  8.18%

July 1, 2005 through June 30, 20060%  9.29%

July 1, 2006 through June 30, 20100%11.96%

July 1, 2010 through June 30, 20110%13.43%

July 1, 2011 through June 30, 20123%  5.13%

Effective July 1, 2012 through June 30, 20133%  5.16%

July 1, 2013 through June 30, 20143%  17.08%

July 1, 2014 through June 30 20153%  19.84%

July 1, 2015 through June 30, 20163%  19.73%

Effective July 1, 20163%  20.05%

(6) No change.

(7) In addition to the above retirement contributions, contributions for the following shall be made for all active members, reemployed retired members initially reemployed prior to July 1, 2010, and for all Deferred Retirement Option Program participants of state-administered retirement systems. Reemployed retirees initially reemployed in a regularly established position on or after July 1, 2010, shall only be subject to the additional contributions as provided in paragraph (a):

(a) Retiree Health Insurance Subsidy:

	Dates of Rate Change	Members	Employers
	October 1, 1987 through	0%	0.24%
	December 31, 1988
	January 1, 1989 through	0%	0.48%
	December 1, 1993
	January 1, 1994, through	0%	0.56%
	December 1, 1994
	January 1, 1995 through	0%	0.66%
	June 30, 1998
	July 1, 1998 through June 30, 2001	0%	0.94%
	Effective July 1, 2001 through June 30, 2013	0%	1.11%
	July 1, 2013 through June 30, 2014	0%	1.20%
	July 1, 2014 through June 30, 2015	0%	1.26%
	Effective July 1, 2015	0%	1.66%

(b) For transfer to the State Board of Administration’s Administrative Expense Trust Fund to offset the costs of implementing the Public Employee Optional Retirement Program:

	July 1, 2000 through June 30, 2002	0%	0.10%
	July 1, 2002 through June 30, 2003	0%	0.15%

July 1, 2003 through June 30, 20040%0.10%

July 1, 2004 through June 30, 20050%0.08%

July 1, 2005 through June 30, 20100%0.05%

July 1, 2010 through June 30, 20140%0.03%

July 1, 2014 through June 30, 20160%0.04%

Effective July 1, 2016 20140%0.06% 0.04%

(8) Retirement contributions for all participants in the Deferred Retirement Option Program are as follows:

	July 1, 1998 through June 30, 2002	0%	11.56%
	July 1, 2002 through June 30, 2005	0%	8.00%

July 1, 2005 through June 30, 20060%8.22%

July 1, 2006 through June 30, 20100%9.80%

July 1, 2010 through June 30, 20110%  11.14%

July 1, 2011 through June 30, 20120%    3.31%

July 1, 2012 through June 30, 20130%    4.33%

July 1, 2013 through June 30, 20140%   11.64%

July 1, 2014 through June 30, 20150%   11.02%

July 1, 2015 through June 30, 20160%   11.22%

Effective July 1, 2016 20120%    11.33% 4.33%

Rulemaking Authority 112.363(7), 121.031 FS. Law Implemented 112.363, 121.052, 121.055, 121.071, 121.091, 121.122, 121.30, 121.70, 121.71, 121.72 FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-1-79, 8-26-81, 10-12-82, 11-6-84, 9-24-85, Formerly 22B-3.03, Amended 1-12-87, 5-18-88, 2-7-89, 5-15-91, Formerly 22B-3.003, Amended 8-4-94, 3-12-96, 12-12-96, 2-24-99, 8-13-03, 4-5-12, 3-25-13, Amended              .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Elizabeth Stevens, Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Chad Poppell, Secretary

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 12, 2016

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 16, 2016