This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0589c.APC
DATE: 1/31/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 589 Criminal Conflict and Civil Regional Counsel Membership in the Senior Management
Service Class
SPONSOR(S): Brannan
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Constitutional Rights, Rule of Law &
Government Operations Subcommittee
13 Y, 0 N Villa Miller
2) Appropriations Committee 28 Y, 0 N Smith Pridgeon
3) State Affairs Committee
SUMMARY ANALYSIS
In 2007, the Legislature established five Offices of Criminal Conflict and Civil Regional Counsel (CCCRC). When an Office
of the Public Defender determines it has a conflict in representing an indigent defendant, the CCCRC is appointed to
represent the defendant. The CCCRC has primary responsibility for representing persons entitled to court-appointed
counsel under the Federal or State Constitution or as authorized by law in civil proceedings, such as proceedings to
terminate parental rights. Each CCCRC district is led by a regional counsel, appointed by the Governor for a term of four
years, subject to Senate confirmation.
The Florida Retirement System (FRS) is a contributory retirement system, with active members contributing 3.0 percent of
their salaries. FRS Members have two primary plan options available for participation: the defined benefit plan, known as
the pension plan, and the defined contribution plan, known as the investment plan. The membership of the FRS is divided
into five membership classes:
The Regular Class;
The Special Risk Class;
The Special Risk Administrative Support Class;
The Elected Officers’ Class; and
The Senior Management Service Class (SMSC).
Benefits payable under the pension plan are calculated based on the member’s years of creditable service multiplied by
the service accrual rate multiplied by the member’s average final compensation. The Regular Class service credit
provides a 1.6 percent accrual value for each year of creditable service while the SMSC earns a 2.0 percent accrual value
each year.
Benefits under the investment plan accrue in individual member accounts funded by both employee and employer
contributions and investment earnings. Benefits are provided through employee-directed investments offered by approved
investment providers. The amount of money contributed to each member’s account varies by class with the Regular Class
receiving 11.3 percent of salary and SMSC receiving 12.67 percent.
The bill makes assistant regional counsel supervisors of the CCCRC members of the SMSC of the FRS, rather than the
Regular Class. For each employee participating in the pension plan, this change means the employee earns 2.0 percent
service credit for each year of service rather than 1.6 percent. For an employee participating in the investment plan, the
employee will receive contributions into the investment account equal to 12.67 percent of salary rather than 11.3 percent.
Any employee moved from the Regular Class to the SMSC may purchase additional retirement credit, retroactive to
October 1, 2007, and may upgrade retirement credit for service in the same position. The upgraded service credit may not
be purchased by the member’s employer.
The bill provides an appropriation of $950,000 in recurring funds from the General Revenue Fund to the offices of the
CCCRC for the purpose of funding the inclusion of assistant regional counsel supervisors in the FRS’s Senior
Management Service Class.
The effective date of the bill is July 1, 2024. STORAGE NAME: h0589c.APC PAGE: 2
DATE: 1/31/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Criminal Conflict and Civil Regional Counsel (CCCRC)
In 2007, the Legislature established five offices of the CCCRC.
1
When an Office of the Public Defender
determines it has a conflict in representing an indigent defendant, a CCCRC is appointed to represent
the defendant. The CCCRC has primary responsibility for representing persons entitled to court-
appointed counsel under the federal or state Constitutions or as authorized by law in civil proceedings,
such as proceedings to terminate parental rights.
2
Each regional counsel, who serves as the lead in
each CCCRC region, is recommended as part of a list of qualified candidates by the Supreme Court
Judicial Nominating Commission.
3
Thereafter, the Governor appoints the regional counsel from
amongst those listed for a term of four years.
4
The appointment is subject to Senate confirmation.
5
Each CCCRC is housed, for administrative purposes, in the Justice Administrative Commission.
6
Regional counsels serve on a full-time basis and may not engage in the private practice of law while
holding office.
7
Effective July 1, 2020, each appointed CCCRC and each district’s assistant regional counsel chiefs,
administrative directors, and chief investigators are part of the Senior Management Service Class
(SMSC) of the Florida Retirement System (FRS).
8
All other employees of the offices of the CCCRC,
including assistant regional counsel supervisors, are part of the Regular Class of the FRS.
State Board of Administration
The State Board of Administration (SBA) is established by Art. IV, s. 4(e) of the Florida Constitution,
and is composed of the Governor as Chair, the Chief Financial Officer, and the Attorney General,
commonly referred to as the “Board of Trustees.”
9
The SBA has responsibility for investing the assets
of the Florida Retirement System (FRS) Pension Plan
10
and administering the FRS Investment Plan,
11
which combined represent approximately $194.7 billion, or approximately 84.5 percent of the $230.2
billion in assets managed by the SBA, as of July 31, 2023.
12
The SBA also manages over 25 other
investment portfolios, with combined assets of approximately $35.5 billion, including the Florida
Hurricane Catastrophe Fund, the Florida Lottery Fund, the Florida Prepaid College Plan, and various
debt-service accounts for state bond issues.
Florida Retirement System
The Florida Retirement System (FRS) was established in 1970 when the Legislature consolidated and
closed the Teachers’ Retirement System, the State and County Officers and Employees’ Retirement
System, and the Highway Patrol Pension Fund. In 1972, the Judicial Retirement System was closed
and consolidated into the FRS, and in 2007, the Institute of Food and Agricultural Sciences
1
Ch. 2007-62, Laws of Fla., codified in s. 27.511, F.S.
2
S. 27.511(5) and (6), F.S.
3
S. 27.511(3)(a), F.S.
4
Id.
5
Id.
6
S. 27.511(2), F.S.
7
S. 27.511(4), F.S.
8
See ch. 2020-120, Laws of Fla.
9
See also Art. XII, s. 9, FLA. CONST.
10
S. 121.151, F.S.
11
S. 121.4501(8), F.S. See also, rule 19-13.001, F.A.C.
12
See State Board of Administration, Performance Report Month Ending: September 30, 2023,
https://www.sbafla.com/fsb/Portals/FSB/Content/Performance/Trustees/9.23.September%202023%20Monthly%20Trustee%20Report.
Posted.pdf?ver=2023-11-21-095016-763 (last visited January 26, 2024). STORAGE NAME: h0589c.APC PAGE: 3
DATE: 1/31/2024
Supplemental Retirement Program was consolidated under the Regular Class of the FRS as a closed
group. The FRS was amended in 1998 to include the Deferred Retirement Option Program (DROP)
under the defined benefit plan and in 2000 was amended to provide a defined contribution plan
alternative to the defined benefit plan for FRS members effective July 1, 2002.
13
The FRS is a multiple-employer, contributory plan
14
governed by the Florida Retirement System Act.
15
As of June 30, 2023, the FRS had 646,277 active members,
16
455,601 retired members and
beneficiaries, and 27,767 members in DROP.
17
It is the primary retirement plan for employees of state
and county government agencies, district school boards, state colleges, and state universities. The
FRS also serves as the retirement plan for the employees of the 181 cities, 153 special districts, and
two independent hospitals that have elected to join the system.
18
The membership of the FRS is divided into five membership classes:
The Regular Class
19
has 550,931 active members and 8,433 in renewed membership.
The Special Risk Class
20
has 75,495 active members and 1,168 in renewed membership.
The Special Risk Administrative Support Class
21
has 93 active members and one in renewed
membership.
The Elected Officers’ Class
22
has 2,105 active members and 106 in renewed membership.
The SMSC
23
has 7,714 active members and 227 in renewed membership.
24
Members of the FRS have two primary plan options available for participation:
The defined benefit plan, also known as the pension plan; and
The defined contribution plan, also known as the investment plan.
Pension Plan
The pension plan is a defined benefit plan that is administered by the secretary of the Department of
Management Services (DMS) through the Division of Retirement (Division).
25
Investment management
is provided by the SBA.
Any member initially enrolled in the pension plan before July 1, 2011, vests in the pension plan after
completing six years of service with an FRS employer.
26
For members initially enrolled on or after July
1, 2011, the member vests in the pension plan after eight years of creditable service.
27
A member vests
immediately in all employee contributions paid to the pension plan.
28
Benefits payable under the
13
Florida Department of Management Services, Florida Retirement System Pension Plan and Other State Administered Systems
Comprehensive Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2023, p. 33.
https://employer.frs.fl.gov/forms/2022-23_ACFR.pdf [hereinafter Annual Report] (Last visited Jan. 26, 2024).
14
Prior to 1975, members of the FRS were required to make employee contributions of either four percent of their salaries for Regular
Class members or six percent for Special Risk Class members. Members were again required to contribute to the system after June 30,
2011, at three percent of their salary regardless of membership class.
15
Ch. 121, F.S.
16
As of June 30, 2023, the FRS Pension Plan, which is a defined benefit plan, had 441,816 members, and the investment plan, which
is a defined contribution plan, had 204,461 members. Annual Report, supra note 13, at p. 188.
17
Id.
18
Id., at 226.
19
The Regular Class is for all members who are not assigned to another class. Section 121.021(12), F.S.
20
The Special Risk Class is for members employed as law enforcement officers, firefighters, correctional officers, probation officers,
paramedics and emergency technicians, among others. Section 121.0515, F.S.
21
The Special Risk Administrative Support Class if for a special risk member who moved or was reassigned to a nonspecial risk law
enforcement, firefighting, correctional, or emergency medical care administrative support position with the same agency, or who is
subsequently employed in such a position under the FRS. Section 121.0515(8), F.S.
22
The Elected Officers’ Class is for elected state and county officers, and for those elected municipal or special district officers whose
governing body has chosen Elected Officers’ Class participation for its elected officers. Section 121.052, F.S.
23
The Senior Management Service Class is for members who fill senior management level positions assigned by law to the Senior
Management Service Class or authorized by law as eligible for Senior Management Service designation. Section 121.055, F.S.
24
FRS Comprehensive Annual Report, supra note 9 at p. 191.
25
See s. 121.025, F.S.
26
S. 121.021(45)(a), F.S.
27
S. 121.021(45)(b), F.S.
28
See s. 121.091(5)(a), F.S. STORAGE NAME: h0589c.APC PAGE: 4
DATE: 1/31/2024
pension plan are calculated based on the member’s years of creditable service multiplied by the service
accrual rate multiplied by the member’s average final compensation.
29
For non-special risk members of the pension plan initially enrolled before July 1, 2011, normal
retirement is the earlier of 30 years of service or age 62.
30
Those members initially enrolled in the
pension plan on or after July 1, 2011, must complete 33 years of credible service or attain age 65.
31
For
members in the Special Risk and Special Risk Administrative Support Classes, normal retirement is the
earlier of 25 years of credible service or age 55.
32
The Regular Class and the SMSC share the same normal retirement dates, average final
compensation calculation, and disability/survivor benefits. However, the Regular Class service credit
provides a 1.6 percent accrual value for each year of creditable service while the SMSC earns a 2.0
percent accrual value each year.
33
A member of the SMSC may upgrade service credit in the same position from Regular Class accrual
value to the SMSC accrual value.
34
Generally, the service credit may be purchased by the employer on
behalf of the member.
35
Investment Plan
In 2000, the Legislature created the Public Employee Optional Retirement Program (investment plan), a
defined contribution plan offered to eligible employees as an alternative to the pension plan. The
earliest that any member could participate in the investment plan was July 1, 2002. The SBA is
primarily responsible for administering the investment plan.
36
A member vests immediately in all employee contributions paid to the investment plan.
37
With respect
to the employer contributions, a member vests after completing one work year with an FRS employer.
38
Vested benefits are payable upon termination of employment with the FRS employer or death, as a
lump-sum distribution, direct rollover distribution, or periodic distribution.
39
The investment plan also
provides disability coverage for both in-line-of-duty and regular disability retirement benefits.
40
An FRS
member who qualifies for disability while enrolled in the investment plan may apply for benefits as if the
employee were a member of the pension plan. If approved for retirement disability benefits, the
member is transferred to the pension plan.
41
The table below shows the allocation of contributions made into the FRS for members of the investment
plan participating in the Regular Class and SMSC. The contributions are based on the percentage of
the member’s gross compensation for the month.
42
29
S. 121.091, F.S.
30
S. 121.021(29)(a)1., F.S.
31
S. 121.021(29)(a)2., F.S.
32
S. 121.021(29)(b), F.S.
33
S. 121.091(1)(a), F.S.
34
S. 121.055(1)(j), F.S.
35
Id.
36
S. 121.4501(8), F.S.
37
S. 121.4501(6)(a), F.S.
38
If a member terminates employment before vesting in the investment plan, the nonvested money is transferred from the member’s
account to the SBA for deposit and investment by the SBA in its suspense account for up to five years. If the member is not reemployed
as an eligible employee within five years, any nonvested accumulations transferred from a member’s account to the SBA’s suspense
account are forfeited. S. 121.4501(6)(b)–(d), F.S.
39
S. 121.591, F.S.
40
S. 121.4501(16), F.S.
41
Pension plan disability retirement benefits, which apply for investment plan members who qualify for disability, compensate an in-line-
of-duty disabled member up to 65 percent of the average monthly compensation as of the disability retirement date for special risk class
members. Other members may receive up to 42 percent of the member’s average monthly compensation for disability retirement
benefits. If the disability occurs other than in the line of duty, the monthly benefit may not be less than 25 percent of the average
monthly compensation as of the disability retirement date. S. 121.091(4)(f), F.S.
42
S. 121.72(7), F.S. STORAGE NAME: h0589c.APC PAGE: 5
DATE: 1/31/2024
Membership Class Percentage of Gross
Compensation
43
Regular Class 11.30%
Special Risk Class 19.00%
Special Risk Administrative Support Class 12.95%
Elected Officers’ Class
Justices and Judges
County Elected Officers
Others
18.23%
16.34%
14.38%
Senior Management Service Class 12.67%
Contribution Rates
FRS employers are responsible for contributing a set percentage of the member’s monthly
compensation to the Division to be distributed into the FRS Contributions Clearing Trust Fund. The
employer contribution rate is a blended contribution rate set by statute, which is the same percentage
regardless of whether the member participates in the pension plan or the investment plan.
44
The rate is
determined annually based on an actuarial study provided by DMS that calculates the necessary level
of funding to support all of the benefit obligations under both FRS retirement plans.
As of July 1, 2023, the current employer contribution for the Regular Class is 6.73 percent and the
employer contribution rate for the SMSC is 8.56 percent. In order to address unfunded liabilities in the
system, the required employer contribution is 4.78 percent for the Regular Class and 23.90 percent for
the SMSC.
45
This represents a total blended contribution rate of 11.51 percent for the Regular Class
and 32.46 percent for the SMSC.
Regardless of employee class, all employees contribute 3 percent of their compensation towards
retirement.
46
Effect of the Bill
The bill makes assistant regional counsel supervisors of the CCCRC offices members of the SMSC of
the FRS, rather than the Regular Class. For each employee participating in the pension plan of the
FRS, this shift means the employee earns 2.0 percent service credit for each year of service rather than
1.6 percent. For an employee participating in the investment plan of the FRS, the employee will receive
contributions into the investment account equal to 12.67 percent of salary rather than 11.3 percent.
Any employee moved from the Regular Class to the SMSC may purchase additional retirement credit,
retroactive to October 7, 2007, and may upgrade retirement credit for service in the same position. The
upgraded service credit may not be purchased by the member’s employer.
The bill provides an appropriation of $950,000 in recurring funds from the General Revenue Fund to the
offices of the CCCRC for the purpose of funding the inclusion of assistant regional counsel supervisors
in the FRS’s Senior Management Service Class.
43
Includes the three percent employee contribution.
44
S. 121.70(1), F.S.
45
S. 121.71(4) and (5), F.S.
46
S. 121.71(3), F.S. STORAGE NAME: h0589c.APC PAGE: 6
DATE: 1/31/2024
B. SECTION DIRECTORY:
Section 1: Amends s. 121.055, F.S., relating to the Senior Management Service Class.
Section 2: Provides an appropriation to the Office of the Criminal Conflict and Civil Regional Counsel.
Section 3: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill provides an appropriation of $950,000 in recurring funds from the General Revenue Fund to
the offices of the CCCRC for the purpose of funding the inclusion of assistant regional counsel
supervisors in the FRS’s Senior Management Service Class.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
STORAGE NAME: h0589c.APC PAGE: 7
DATE: 1/31/2024
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.