Florida Administrative Code
60 - DEPARTMENT OF MANAGEMENT SERVICES
60T - Division of Retirement - Local Retirement
Chapter 60T-1 - LOCAL RETIREMENT SYSTEMS
Section 60T-1.004 - Actuarial Impact Statements

Universal Citation: FL Admin Code R 60T-1.004

Current through Reg. 50, No. 187; September 24, 2024

(1) Regardless of funding source, no unit of local government shall agree to a proposed change in the retirement benefits or liabilities of a local system subsequent to October 1, 1980, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing thereon and has furnished a copy of such statement to the Division. Also, such statement shall incorporate by reference and have attached a copy of the proposed ordinance, amendment, resolution, collective bargaining agreement, insurance contract, or other legal instrument necessary to implement the proposed change to the retirement system. The adoption of a new plan shall require submission of an impact statement.

(2) The statement of actuarial impact may be based upon an actuarial valuation that has been prepared within 12 months of the proposed effective date for the amendments. The statement may be prepared by either the plan administrator or an enrolled actuary. The plan administrator shall transmit such statement to the Division along with his/her statement that the prepared information reflects the estimated costs of the proposed amendment(s).

(3) The statement of actuarial impact required by Section 112.63(3), F.S., should be in the form of a certification signed and dated by the plan administrator and contain the following information:

(a) A description of the proposed amendment and a statement that the actuary was provided the information necessary to evaluate the proposed amendment;

(b) An estimate of the cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also changed, additional information disclosing the effect of such actuarial changes must be provided;

(c) A statement indicating whether the proposed change is in compliance with Part VII, Chapter 112, F.S. and Section 14, Article X of the State Constitution.

(4) Actuarial impact statements supporting benefit changes shall provide for contribution and contribution rate changes to be effective as follows:

(a) For prospective or retroactive increases in the benefit formula of active or inactive employees - not later than the first day of the fiscal year next following the enactment date of the legal instrument providing the benefit increase.

(b) For retroactive retiree benefit increases required by litigation or federal or state regulations - not later than the first day of the fiscal year next following the effective date of the order or the regulation.

(c) For retroactive retiree benefit increases not required by litigation or federal or state regulation - not later than the first day of the fiscal year next following the enactment date of the legal instrument providing the benefit increase. A lump sum payment shall be required to fund the retroactive portion of the contribution increase from the effective date of such increase to the date of the contribution rate change and shall also be paid no later than the first day of the fiscal year next following such enactment date.

Rulemaking Authority 112.665(1) FS. Law Implemented 112.61, 112.63(3), (4) FS.

New 5-6-81, Amended 8-15-84, Formerly 22D-1.04, Amended 11-14-91, Formerly 22D-1.004, Amended 8-4-94.

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