121.70 Legislative purpose and intent. - Florida Statutes

121.70 Legislative purpose and intent.

   (1) This part provides for a uniform system for funding benefits provided under the Florida Retirement System defined benefit program established under part I of this chapter (referred to in this part as the defined benefit program) and under the Public Employee Optional Retirement Program established under part II of this chapter (referred to in this part as the optional retirement program). The Legislature recognizes and declares that the Florida Retirement System is a single retirement system, consisting of two retirement plans and other nonintegrated programs. Employers participating in the Florida Retirement System collectively shall be responsible for making contributions to support the benefits afforded under both plans. As provided in this part, employers participating in the Florida Retirement System shall make contributions based upon uniform contribution rates determined as a percentage of the total payroll for each class or subclass of Florida Retirement System membership, irrespective of which retirement plan individual employees may elect. This shall be known as a uniform or blended contribution rate system.

   (2) In establishing a uniform contribution rate system, it is the intent of the Legislature to:

   (a) Provide greater stability and certainty in financial planning and budgeting for Florida Retirement System employers by eliminating the fiscal instability that would be caused by dual rates coupled with employee-selected plan participation;

   (b) Provide greater fiscal equity and uniformity for system employers by effectively distributing the financial burden and benefit of short-term system deficits and surpluses, respectively, in proportion to total system payroll; and

   (c) Allow employees to make their retirement plan selection decisions free of circumstances that may cause employers to favor one plan choice over another.

History. s. 1, ch. 2002-177.