CS for SB 1130 - Retirement Summary

• Employee contributions: Effective July 1, 2011, employees must contribute to the Florida Retirement System with tiered rates based on compensation (0% up to $40,000; up to 2% from $40,001-$75,000; up to 4% above $75,000), with a cap on contributions by membership class.

• Investment Plan changes: Renames "Public Employee Optional Retirement Program" to "Florida Retirement System Investment Plan" and requires new employees hired on or after July 1, 2011 to enroll in the investment plan rather than the pension plan, with limited exceptions.

• Vesting requirements: Increases vesting period from 6 to 8 years for pension plan members hired on or after July 1, 2011, while investment plan members have a graduated vesting schedule for employer contributions (0-100% based on years of service).

• Refund restrictions: Members who obtain refunds of employee contributions waive rights to related service credit and health insurance subsidies; refunds are delayed 3 months after termination and prohibited if a qualified domestic relations order is pending or approved.

• Employer contribution rates: Specifies new employer contribution rates for fiscal years 2011-2012 and 2012-2013 across all membership classes, with additional rates to address unfunded actuarial liabilities.