SB 7018 (Governmental Oversight and Accountability) establishes the contribution rates paid by employers participating in the Florida Retirement System beginning July 1, 2021. These rates are intended to fund the full normal cost and the amortization of the unfunded actuarial liability of the FRS. With these modifications to employer contribution rates, the FRS Trust Fund will receive roughly $373.5 million more in revenue on an annual basis beginning July 1, 2021. The public employers that will incur these additional costs are state agencies, state universities and colleges, school districts, counties, municipalities and other governmental entities that participate in the FRS.

The bill also reduces the contributions paid by employers participating in the retiree health insurance subsidy program. With the reduced contribution rates, the revenues deposited into the Retiree Health Insurance Subsidy Trust Fund will be reduced by roughly $56.6 million on an annual basis beginning July 1, 2021.

The bill will have a fiscal impact on state funds appropriated by the Legislature for employee salaries and benefits. The bill will increase the amounts, in the aggregate, employers participating in the FRS and the retiree health insurance subsidy program must pay for retiree benefits. (Hughes)