FL H5607

Reduces the interest rate accrued on deferred retirement benefits in the Deferred Retirement Option Program (DROP) from 6.5 percent to 3.0 percent annually for members entering DROP on or after July 1, 2010.

Increases employer retirement contribution rates for all membership classes of the Florida Retirement System effective July 1, 2010 and July 1, 2011 to address unfunded actuarial liabilities.

Establishes additional unfunded actuarial liability contribution rates for all membership classes effective July 1, 2010 (0.00 percent) and July 1, 2011 (ranging from 1.74 percent to 21.73 percent by class).

Reduces the administrative and educational expenses contribution rate from 0.05 percent to 0.03 percent of payroll effective July 1, 2010, increasing to 0.04 percent effective July 1, 2014.

Requires the state actuary to study three alternative methods of funding the DROP program based on the June 30, 2010 actuarial valuation.