SB 84 (Rodrigues) closes the pension plan (defined benefit) to new enrollees and requires all new enrollees to participate in the investment plan (defined contribution), effective July 1, 2022. The bill does not impact the rights of any current Florida Retirement System enrollee to select participation in the pension plan or the investment plan. Changes included in the bill pertain only to FRS members initially enrolled in the system on or after July 1, 2022.
Beginning July 1, 2022, the bill increases the employer-paid assessment for administrative and educational services by one basis point. This assessment is expected to generate roughly $3.4 million annually for the State Board of Administration to offset additional costs associated with the increase in the number of members participating in the investment plan and an increase in the workload relating to educational services offered to FRS members.
The fiscal impact relating to compulsory membership in the investment plan for members initially enrolling in the FRS on or after July 1, 2022, is unknown at this time. The special actuarial study on such impacts is underway. Any impacts will be borne by the employers participating in the FRS.
The bill takes effect July 1, 2021; however, most changes are applicable to public employees on or after July 1, 2022. (Hughes)