SB 2100 Second Engrossed
20112100e2
1 A bill to be entitled
2 An act relating to retirement; amending ss. 110.123,
3 112.0801, 112.363, and 112.65, F.S.; conforming
4 provisions to changes made by the act; amending s.
5 121.011, F.S.; requiring employee and employer
6 contributions to the retirement system by a certain
7 date; amending s. 121.021, F.S.; redefining the terms
8 “system,” “prior service,” “compensation,” “average
9 final compensation,” “normal retirement date,”
10 “termination,” “benefit,” and “payee”; defining the
11 term “division”; amending s. 121.051, F.S.; conforming
12 provisions to changes made by the act; amending s.
13 121.0515, F.S.; providing that special risk employee
14 contributions be used, if applicable, when purchasing
15 credit for past service; conforming a cross-reference;
16 amending s. 121.052, F.S., relating to the membership
17 class of elected officers; conforming provisions to
18 changes made by the act; providing for a refund of
19 contributions under certain circumstances for an
20 officer who leaves office; prohibiting such refund if
21 an approved qualified domestic relations order is
22 filed against the member’s retirement account;
23 providing that a member who obtains a refund of
24 contributions waives certain rights under the Florida
25 Retirement System; conforming a cross-reference;
26 amending s. 121.053, F.S.; conforming provisions to
27 changes made by the act; amending s. 121.055, F.S.,
28 relating to the Senior Management Service Class;
29 conforming provisions to changes made by the act;
30 providing for refunds of employee refunds; prohibiting
31 a refund of retirement contributions if an approved
32 qualified domestic relations order is filed against
33 the member’s retirement account; providing that a
34 member who obtains a refund of contributions waives
35 certain rights under the Florida Retirement System;
36 requiring employee and employer contributions for
37 members in the Senior Management Service Optional
38 Annuity Program after a certain date; limiting the
39 payment of benefits before a member’s termination of
40 employment; amending s. 121.071, F.S.; requiring
41 employee and employer contributions to the retirement
42 system beginning on a certain date; limiting the
43 payment of benefits before a member’s termination of
44 employment; requiring repayment plus interest of an
45 invalid refund; amending s. 121.081, F.S.; providing
46 requirements for contributions for prior service
47 performed on or after a certain date; amending s.
48 121.091, F.S.; conforming a cross-reference; providing
49 for refunds of employee refunds; limiting the payment
50 of benefits before a member’s termination of
51 employment; prohibiting a refund of retirement
52 contributions if an approved qualified domestic
53 relations order is filed against the member’s
54 retirement account; providing that a member who
55 obtains a refund of contributions waives certain
56 rights under the Florida Retirement System;
57 terminating participation in the Deferred Retirement
58 Option Program after a certain date; revising the
59 interest rate accruing on DROP benefits after a
60 certain date; conforming provisions to changes made by
61 the act; amending s. 121.1001, F.S.; conforming
62 provisions to changes made by the act; amending s.
63 121.101, F.S.;. revising the cost-of-living adjustment
64 depending on the date of retirement; amending s.
65 121.121, F.S., relating to the purchase of creditable
66 service following an authorized leave of absence;
67 requiring that service credit be purchased at the
68 employee and employer contribution rates in effect
69 during the leave of absence; reducing the interest
70 rate on benefits payable under the Deferred Retirement
71 Option Program for employees hired after a certain
72 date; amending s. 121.122, F.S.; providing for renewed
73 membership in the retirement system for retirees who
74 are reemployed after a certain date; excluding
75 retirees of the Elected Officers’ Class or the Senior
76 Management Service Class; specifying requirements and
77 limitations; amending s. 121.125, F.S.; conforming
78 provisions to changes made by the act; assessing a
79 penalty against employers for contributions not paid
80 after a member becomes eligible for workers’
81 compensation; amending s. 121.35, F.S., relating to
82 the optional retirement program for the State
83 University System; conforming provisions to changes
84 made by the act; requiring employee and employer
85 contributions for members participating in the
86 optional retirement program after a certain date;
87 deleting certain requirements governing employer
88 contributions to conform to changes made by the act;
89 prohibiting certain benefits before termination from
90 employment; conforming cross-references; amending s.
91 121.355, F.S.; conforming provisions to changes made
92 by the act; amending s. 121.4501, F.S.; changing the
93 name of the Public Employee Optional Retirement
94 Program to the Florida Retirement System Investment
95 Plan; limiting the option of enrolling in the State
96 Retirement System’s defined benefit program or defined
97 contribution program to public employees employed
98 before a certain date; requiring certain public
99 employees employed on or after a certain date to
100 enroll in the investment plan; providing exceptions;
101 requiring that plan members make contributions to the
102 plan based on the employee’s membership class;
103 revising definitions; revising the benefit
104 commencement age for members of the special risk
105 class; providing for contribution adjustments as a
106 result of errors or corrections; deleting obsolete
107 provisions relating to the 2002 optional transfer of
108 public employees from the pension plan to the
109 investment plan; providing for past employees who
110 reenter the system; requiring an employer to receive a
111 credit for excess contributions and to reimburse an
112 employee for excess contributions, subject to certain
113 limitations; providing for a retiree to retain his or
114 her prior plan choice following a return to
115 employment; limiting certain refunds of contributions
116 which exceed the amount that would have accrued had
117 the member remained in the pension plan; providing
118 certain requirements and limitations with respect to
119 contributions; clarifying that employee and employer
120 contributions are earmarked for specified purposes;
121 providing duties of the third-party administrator;
122 providing that a member is vested immediately with
123 respect to employee contributions paid by the
124 employee; providing for the forfeiture of nonvested
125 employer contributions and service credit based on
126 years of service; amending s. 121.4502, F.S.;
127 conforming provisions to changes made by the act;
128 amending s. 121.4503, F.S.; providing for the deposit
129 of employee contributions into the Florida Retirement
130 System Contributions Clearing Trust Fund; amending s.
131 121.571, F.S.; conforming provisions to changes made
132 by the act; providing requirements for submitting
133 employee contributions; amending s. 121.591, F.S.;
134 prohibiting the payment of certain benefits before
135 termination of employment; providing for the
136 forfeiture of nonvested accumulations upon payment of
137 certain vested benefits; providing that the
138 distribution payment method selected by the member or
139 beneficiary is irrevocable at the time of
140 distribution; prohibiting a distribution of employee
141 contributions if a qualified domestic relations order
142 is filed against the member’s account; providing for
143 the distribution of an employee’s contributions if the
144 employee dies before being vested; conforming
145 provisions to changes made by the act; amending ss.
146 121.5911 and 121.70, F.S.; conforming provisions to
147 changes made by the act; amending s. 121.71, F.S.;
148 providing for employee contributions to be deducted
149 from the employee’s monthly salary, beginning on a
150 specified date, and treated as employer contributions
151 under certain provisions of federal law; clarifying
152 that an employee may not receive such contributions
153 directly; specifying the required contribution rate
154 for all members of the Florida Retirement System;
155 providing an exception for participants in the
156 Deferred Retirement Option Program; specifying the
157 required employer retirement contribution rates for
158 each membership class and subclass of the system in
159 order to address unfunded actuarial liabilities of the
160 system; requiring an assessment to be imposed if the
161 employee contributions remitted are less than the
162 amount required; providing for the employer to receive
163 a credit for excess contributions remitted; conforming
164 cross-references; amending s. 121.72, F.S.; revising
165 certain requirements governing allocations to optional
166 retirement program member accounts; conforming cross
167 references; amending s. 121.73, F.S., relating to
168 disability coverage for members of the optional
169 retirement program; conforming provisions to changes
170 made by the act; amending ss. 121.74, 121.75, and
171 121.77, F.S.; conforming provisions to changes made by
172 the act; conforming cross-references; amending s.
173 121.78, F.S.; revising certain requirements for
174 administering the payment and distribution of
175 contributions; requiring that certain fees be imposed
176 for delinquent payment; providing that an employer is
177 responsible for recovering any refund provided to an
178 employee in error; revising the terms of an authorized
179 waiver of delinquency; requiring an employer to
180 receive a credit for excess contributions and to
181 reimburse an employee for excess contributions,
182 subject to certain limitations; amending s. 175.121,
183 F.S.; specifying other sources available to pay the
184 expenses of the Department of Revenue for
185 administering firefighters’ pension plans; amending s.
186 175.341, F.S.; conforming provisions to changes made
187 by the act; amending s. 185.10, F.S.; specifying other
188 sources available to pay the expenses of the
189 department for administering police officers’ pension
190 plans; amending s. 185.23, F.S.; conforming provisions
191 to changes made by the act; amending s. 250.22, F.S.;
192 providing that retirement pay for members of the
193 Florida National Guard is determined on the date of
194 retirement and may not be recomputed to reflect an
195 increase in basic pay; directing the Division of
196 Retirement to annually adjust retirement pay after a
197 certain date; amending s. 1012.875, F.S.; requiring
198 employee and employer contributions for members of the
199 State Community College System Optional Retirement
200 Program on a certain date; conforming cross
201 references; providing that the act fulfills an
202 important state interest; providing a directive to the
203 Division of Statutory Revision; requiring the State
204 Board of Administration and the Department of
205 Management Services to request a private letter ruling
206 from the United States Internal Revenue Service
207 regarding the act; providing an effective date.
208
209 Be It Enacted by the Legislature of the State of Florida:
210
211 Section 1. Paragraph (g) of subsection (2) of section
212 110.123, Florida Statutes, is amended to read:
213 110.123 State group insurance program.—
214 (2) DEFINITIONS.—As used in this section, the term:
215 (g) “Retired state officer or employee” or “retiree” means
216 a any state, or state university, officer or employee who
217 retires under a state retirement system or a state optional
218 annuity or retirement program or is placed on disability
219 retirement, and who was insured under the state group insurance
220 program at the time of retirement, and who begins receiving
221 retirement benefits immediately after retirement from state or
222 state university office or employment. The term also includes In
223 addition to these requirements, any state officer or state
224 employee who retires under the investment plan Public Employee
225 Optional Retirement Program established under part II of chapter
226 121 shall be considered a “retired state officer or employee” or
227 “retiree” as used in this section if he or she:
228 1. Meets the age and service requirements to qualify for
229 normal retirement as set forth in s. 121.021(29); or
230 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
231 the Internal Revenue Code and has 6 years of creditable service.
232 Section 2. Section 112.0801, Florida Statutes, is amended
233 to read:
234 112.0801 Group insurance; participation by retired
235 employees.—
236 (1) Any state agency, county, municipality, special
237 district, community college, or district school board that which
238 provides life, health, accident, hospitalization, or annuity
239 insurance, or all of any kinds of such insurance, for its
240 officers and employees and their dependents upon a group
241 insurance plan or self-insurance plan shall allow all former
242 personnel who have retired before prior to October 1, 1987, as
243 well as those who retire on or after such date, and their
244 eligible dependents, the option of continuing to participate in
245 the such group insurance plan or self-insurance plan. Retirees
246 and their eligible dependents shall be offered the same health
247 and hospitalization insurance coverage as is offered to active
248 employees at a premium cost of no more than the premium cost
249 applicable to active employees. For the retired employees and
250 their eligible dependents, the cost of any such continued
251 participation in any type of plan or any of the cost thereof may
252 be paid by the employer or by the retired employees. To
253 determine health and hospitalization plan costs, the employer
254 shall commingle the claims experience of the retiree group with
255 the claims experience of the active employees; and, for other
256 types of coverage, the employer may commingle the claims
257 experience of the retiree group with the claims experience of
258 active employees. Retirees covered under Medicare may be
259 experience-rated separately from the retirees not covered by
260 Medicare and from active employees if, provided that the total
261 premium does not exceed that of the active group and coverage is
262 basically the same as for the active group.
263 (2) For purposes of this section, the term “retiree” has
264 the same meaning as in s. 110.123(2) means any officer or
265 employee who retires under a state retirement system or a state
266 optional annuity or retirement program or is placed on
267 disability retirement and who begins receiving retirement
268 benefits immediately after retirement from employment. In
269 addition to these requirements, any officer or employee who
270 retires under the Public Employee Optional Retirement Program
271 established under part II of chapter 121 shall be considered a
272 “retired officer or employee” or “retiree” as used in this
273 section if he or she:
274 (a) Meets the age and service requirements to qualify for
275 normal retirement as set forth in s. 121.021(29); or
276 (b) Has attained the age specified by s. 72(t)(2)(A)(i) of
277 the Internal Revenue Code and has 6 years of creditable service.
278 Section 3. Paragraphs (b) and (c) of subsection (2) and
279 paragraph (e) of subsection (3) of section 112.363, Florida
280 Statutes, are amended to read:
281 112.363 Retiree health insurance subsidy.—
282 (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.—
283 (b) For purposes of this section, a person is deemed
284 retired from a state-administered retirement system when he or
285 she terminates employment with all employers participating in
286 the Florida Retirement System as described in s. 121.021(39)
287 and:
288 1. For a member participant of the investment plan Public
289 Employee Optional Retirement program established under part II
290 of chapter 121, the member participant meets the age or service
291 requirements to qualify for normal retirement as set forth in s.
292 121.021(29) and meets the definition of retiree in s.
293 121.4501(2).
294 2. For a member of the pension plan Florida Retirement
295 System defined benefit program, or any employee who maintains
296 creditable service under both the pension plan and the
297 investment plan defined benefit program and the Public Employee
298 Optional Retirement program, the member begins drawing
299 retirement benefits from the pension plan defined benefit
300 program of the Florida Retirement System.
301 (c)1. Effective July 1, 2001, any person retiring on or
302 after that such date as a member of the Florida Retirement
303 System, including a member any participant of the investment
304 plan defined contribution program administered pursuant to part
305 II of chapter 121, must have satisfied the vesting requirements
306 for his or her membership class under the pension plan Florida
307 Retirement System defined benefit program as administered under
308 part I of chapter 121. However,
309 2. Notwithstanding the provisions of subparagraph 1., a
310 person retiring due to disability must either qualify for a
311 regular or in-line-of-duty disability benefit as provided in s.
312 121.091(4) or qualify for a disability benefit under a
313 disability plan established under part II of chapter 121, as
314 appropriate.
315 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
316 (e)1. Beginning July 1, 2001, each eligible retiree of the
317 pension plan defined benefit program of the Florida Retirement
318 System, or, if the retiree is deceased, his or her beneficiary
319 who is receiving a monthly benefit from such retiree’s account
320 and who is a spouse, or a person who meets the definition of
321 joint annuitant in s. 121.021(28), shall receive a monthly
322 retiree health insurance subsidy payment equal to the number of
323 years of creditable service, as defined in s. 121.021(17),
324 completed at the time of retirement multiplied by $5; however,
325 an no eligible retiree or beneficiary may not receive a subsidy
326 payment of more than $150 or less than $30. If there are
327 multiple beneficiaries, the total payment may must not be
328 greater than the payment to which the retiree was entitled. The
329 health insurance subsidy amount payable to any person receiving
330 the retiree health insurance subsidy payment on July 1, 2001,
331 may shall not be reduced solely by operation of this
332 subparagraph.
333 2. Beginning July 1, 2002, each eligible member participant
334 of the investment plan under part II of chapter 121 Public
335 Employee Optional Retirement program of the Florida Retirement
336 System who has met the requirements of this section, or, if the
337 member participant is deceased, his or her spouse who is the
338 member’s participant’s designated beneficiary, shall receive a
339 monthly retiree health insurance subsidy payment equal to the
340 number of years of creditable service, as provided in this
341 subparagraph, completed at the time of retirement, multiplied by
342 $5; however, an no eligible retiree or beneficiary may not
343 receive a subsidy payment of more than $150 or less than $30.
344 For purposes of determining a member’s participant’s creditable
345 service used to calculate the health insurance subsidy, the
346 member’s a participant’s years of service credit or fraction
347 thereof must shall be based on the member’s participant’s work
348 year as defined in s. 121.021(54). Credit must shall be awarded
349 for a full work year if whenever health insurance subsidy
350 contributions have been made as required by law for each month
351 in the member’s participant’s work year. In addition, all years
352 of creditable service retained under the Florida Retirement
353 System pension plan must defined benefit program shall be
354 included as creditable service for purposes of this section.
355 Notwithstanding any other provision in this section to the
356 contrary, the spouse at the time of death is shall be the
357 member’s participant’s beneficiary unless such member
358 participant has designated a different beneficiary subsequent to
359 the member’s participant’s most recent marriage.
360 Section 4. Subsection (1) of section 112.65, Florida
361 Statutes, is amended to read:
362 112.65 Limitation of benefits.—
363 (1) ESTABLISHMENT OF PROGRAM.—The normal retirement benefit
364 or pension payable to a retiree who becomes a member of a any
365 retirement system or plan and who has not previously
366 participated in such plan, on or after January 1, 1980, may
367 shall not exceed 100 percent of his or her average final
368 compensation. However, nothing contained in this section does
369 not shall apply to supplemental retirement benefits or to
370 pension increases attributable to cost-of-living increases or
371 adjustments. For the purposes of this section, benefits accruing
372 in individual member participant accounts established under the
373 investment plan Public Employee Optional Retirement program
374 established in part II of chapter 121 are considered
375 supplemental benefits. As used in this section, the term
376 “average final compensation” means the average of the member’s
377 earnings over a period of time which the governmental entity
378 establishes has established by statute, charter, or ordinance.
379 Section 5. Paragraph (h) is added to subsection (3) of
380 section 121.011, Florida Statutes, to read:
381 121.011 Florida Retirement System.—
382 (3) PRESERVATION OF RIGHTS.—
383 (h) Effective July 1, 2011, the retirement system shall
384 require employee and employer contributions as provided in s.
385 121.071 and part III of this chapter.
386 Section 6. Subsection (3), paragraph (a) of subsection
387 (19), paragraphs (a) and (b) of subsection (22), subsections
388 (24), (29), (39), (45), (55), and (59) of section 121.021,
389 Florida Statutes, are amended, and subsection (65) is added to
390 that section, to read:
391 121.021 Definitions.—The following words and phrases as
392 used in this chapter have the respective meanings set forth
393 unless a different meaning is plainly required by the context:
394 (3) “Florida Retirement System” or “system” means the
395 general retirement system established by this chapter, to be
396 known and cited as the “Florida Retirement System,” including,
397 but not limited to, the defined benefit retirement program
398 administered under the provisions of part I of this part,
399 referred to as the “Florida Retirement System Pension Plan” or
400 “pension plan,” chapter and the defined contribution retirement
401 program known as the Public Employee Optional Retirement Program
402 and administered under the provisions of part II of this
403 chapter, referred to as the “Florida Retirement System
404 Investment Plan” or “investment plan.”
405 (19) “Prior service” under this chapter means:
406 (a) Service for which the member had credit under one of
407 the existing systems and received a refund of his or her
408 contributions upon termination of employment. Prior service
409 shall also includes include that service between December 1,
410 1970, and the date the system becomes noncontributory for which
411 the member had credit under the Florida Retirement System and
412 received a refund of his or her contributions upon termination
413 of employment.
414 (22) “Compensation” means the monthly salary paid a member
415 by his or her employer for work performed arising from that
416 employment.
417 (a) Before July 1, 2011, compensation includes shall
418 include:
419 1. Overtime payments paid from a salary fund.
420 2. Accumulated annual leave payments.
421 3. Payments in addition to the employee’s base rate of pay
422 if all the following apply:
423 a. The payments are paid according to a formal written
424 policy that applies to all eligible employees equally;
425 b. The policy provides that payments shall commence by no
426 later than the 11th year of employment;
427 c. The payments are paid for as long as the employee
428 continues his or her employment; and
429 d. The payments are paid at least annually.
430 4. Amounts withheld for tax sheltered annuities or deferred
431 compensation programs, or any other type of salary reduction
432 plan authorized under the Internal Revenue Code.
433 5. Payments made in lieu of a permanent increase in the
434 base rate of pay, whether made annually or in 12 or 26 equal
435 payments within a 12-month period, if when the member’s base pay
436 is at the maximum of his or her pay range. If When a portion of
437 a member’s annual increase raises his or her pay range and the
438 excess is paid as a lump sum payment, the such lump sum payment
439 is considered shall be compensation for retirement purposes.
440 (b) On or after July 1, 2011, compensation includes:
441 1. Payments in addition to the employee’s base rate of pay
442 if the following apply:
443 a. The payments are paid according to a formal written
444 policy that applies to all eligible employees equally;
445 b. The policy provides that payments shall commence by the
446 11th year of employment; and
447 c. The payments are paid at least annually.
448 2. Amounts withheld for tax-sheltered annuities, deferred
449 compensation programs, or any other type of salary reduction
450 plan authorized under the Internal Revenue Code.
451 3. Payments made in lieu of a permanent increase in the
452 base rate of pay, whether made annually or in 12 or 26 equal
453 payments within a 12-month period, if the member’s base pay is
454 at the maximum of his or her pay range. If a portion of a
455 member’s annual increase raises his or her pay range and the
456 excess is paid as a lump sum payment, such lump sum payment is
457 compensation for retirement purposes.
458 4. Up to 300 hours of overtime payments paid from a salary
459 fund.
460 (c)(b) Under no circumstances shall Compensation for a
461 member participating in the pension plan defined benefit
462 retirement program or the investment plan Public Employee
463 Optional Retirement Program of the Florida Retirement System may
464 not include:
465 1. Fees paid professional persons for special or particular
466 services or include salary payments made from a faculty practice
467 plan authorized by the Board of Governors of the State
468 University System for eligible clinical faculty at a college in
469 a state university that has a faculty practice plan; or
470 2. Any bonuses or other payments prohibited from inclusion
471 in the member’s average final compensation and defined in
472 subsection (47).
473 (24) “Average final compensation” means the average of the
474 5 highest fiscal years of compensation for creditable service
475 prior to retirement, termination, or death. For in-line-of-duty
476 disability benefits, if less than 5 years of creditable service
477 have been completed, the term “average final compensation” means
478 the average annual compensation of the total number of years of
479 creditable service. Each year used to calculate the in the
480 calculation of average final compensation commences shall
481 commence on July 1.
482 (a) Before July 1, 2011:
483 1. The average final compensation includes shall include:
484 a.1. Accumulated annual leave payments, not to exceed 500
485 hours; and
486 b.2. All payments defined as compensation under this
487 section in subsection (22).
488 2.(b) The average final compensation does shall not
489 include:
490 a.1. Compensation paid to professional persons for special
491 or particular services;
492 b.2. Payments for accumulated sick leave made due to
493 retirement or termination;
494 c.3. Payments for accumulated annual leave in excess of 500
495 hours;
496 d.4. Bonuses as defined in subsection (47);
497 e.5. Third-party Third party payments made on and after
498 July 1, 1990; or
499 f.6. Fringe benefits, such as (for example, automobile
500 allowances or housing allowances).
501 (b) On or after July 1, 2011:
502 1. The average final compensation includes all payments
503 defined as compensation under this section.
504 2. The average final compensation does not include:
505 a. Compensation paid to professional persons for special or
506 particular services;
507 b. Payments for accumulated sick leave made due to
508 retirement or termination;
509 c. Payments for accumulated annual leave;
510 d. Payments for overtime exceeding 300 hours paid from a
511 salary fund;
512 e. Bonuses;
513 f. Third-party payments made on and after July 1, 1990; or
514 g. Fringe benefits, such as automobile allowances or
515 housing allowances.
516 (29) “Normal retirement date” means the date a member
517 attains normal retirement age and is vested, which is determined
518 as follows:
519 (a) If a Regular Class member, a Senior Management Service
520 Class member, or an Elected Officers’ Class member:
521 1. The first day of the month the member completes 6 or
522 more years of creditable service and attains age 62; or
523 2. The first day of the month following the date the member
524 completes 30 years of creditable service, regardless of age.
525 (b) If a Special Risk Class member:
526 1. The first day of the month the member completes 6 or
527 more years of creditable service in the Special Risk Class and
528 attains age 55;
529 2. The first day of the month following the date the member
530 completes 25 years of creditable service in the Special Risk
531 Class, regardless of age; or
532 3. The first day of the month following the date the member
533 completes 25 years of creditable service and attains age 52,
534 which service may include a maximum of 4 years of military
535 service credit as long as such credit is not claimed under any
536 other system and the remaining years are in the Special Risk
537 Class.
538
539 “Normal retirement age” is attained on the “normal retirement
540 date.”
541 (39)(a) “Termination” or “terminated” means occurs, except
542 as provided in paragraph (b), that when a member ceases all
543 employment relationships with a participating an employer;,
544 however:
545 1. For retirements effective before July 1, 2010, if a
546 member is employed by any such employer within the next calendar
547 month, termination shall be deemed not to have occurred. A leave
548 of absence constitutes a continuation of the employment
549 relationship, except that a leave of absence without pay due to
550 disability may constitute termination if such member makes
551 application for and is approved for disability retirement in
552 accordance with s. 121.091(4). The department or state board may
553 require other evidence of termination as it deems necessary.
554 2. For retirements effective on or after July 1, 2010, if a
555 member is employed by any such employer within the next 6
556 calendar months, termination shall be deemed not to have
557 occurred. A leave of absence constitutes a continuation of the
558 employment relationship, except that a leave of absence without
559 pay due to disability may constitute termination if such member
560 makes application for and is approved for disability retirement
561 in accordance with s. 121.091(4). The department or state board
562 may require other evidence of termination as it deems necessary.
563 (b) “Termination” or “terminated” means for a member
564 electing to participate in the Deferred Retirement Option
565 Program that occurs when the member program participant ceases
566 all employment relationships with a participating an employer in
567 accordance with s. 121.091(13);, however:
568 1. For termination dates occurring before July 1, 2010, if
569 the member participant is employed by any such employer within
570 the next calendar month, termination will be deemed not to have
571 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
572 absence shall constitute a continuation of the employment
573 relationship.
574 2. For termination dates occurring on or after July 1,
575 2010, if the member participant becomes employed by any such
576 employer within the next 6 calendar months, termination will be
577 deemed not to have occurred, except as provided in s.
578 121.091(13)(b)4.c. A leave of absence constitutes a continuation
579 of the employment relationship.
580 (c) Effective July 1, 2011, “termination” or “terminated”
581 means for a member receiving a refund of employee contributions
582 that the member ceases all employment relationships with a
583 participating employer for 3 calendar months. A leave of absence
584 for less than 3 calendar months constitutes a continuation of an
585 employment relationship.
586 (45)(a) “Vested” or “vesting” means the guarantee that a
587 member is eligible to receive a future retirement benefit upon
588 completion of the required years of creditable service for the
589 employee’s class of membership, even though the member may have
590 terminated covered employment before reaching normal or early
591 retirement date. Being vested does not entitle a member to a
592 disability benefit. Provisions governing entitlement to
593 disability benefits are set forth under s. 121.091(4).
594 (a)(b) Effective July 1, 2001, and for members initially
595 enrolled before July 1, 2011, a 6-year vesting requirement shall
596 be implemented for the defined benefit program of the Florida
597 Retirement System’s pension plan System. Pursuant thereto:
598 1. Any member employed in a regularly established position
599 on July 1, 2001, who completes or has completed a total of 6
600 years of creditable service is shall be considered vested as
601 described in paragraph (a).
602 2. Any member not employed in a regularly established
603 position on July 1, 2001, shall be deemed vested upon completion
604 of 6 years of creditable service if, provided that such member
605 is employed in a covered position for at least 1 work year after
606 July 1, 2001. However, a no member may not shall be required to
607 complete more years of creditable service than would have been
608 required for that member to vest under retirement laws in effect
609 before July 1, 2001.
610 (b) Any member initially enrolled on or after July 1, 2011,
611 is vested upon completion of 10 years of creditable service.
612 (55) “Benefit” means any pension payment, lump-sum or
613 periodic, to a member, retiree, or beneficiary, based partially
614 or entirely on employer and employee contributions as
615 applicable.
616 (59) “Payee” means a retiree or beneficiary of a retiree
617 who has received or is receiving a retirement benefit payment.
618 (65) “Division” means the Division of Retirement in the
619 department.
620 Section 7. Paragraphs (b), (c), and (d) of subsection (2)
621 of section 121.051, Florida Statutes, are amended, present
622 paragraphs (e) and (f) of that subsection are redesignated as
623 subsections (f) and (g), respectively, a new subsection (e) is
624 added to that subsection, and subsection (3) of that section is
625 amended, to read:
626 121.051 Participation in the system.—
627 (2) OPTIONAL PARTICIPATION.—
628 (b)1. The governing body of any municipality, metropolitan
629 planning organization, or special district in the state may
630 elect to participate in the Florida Retirement System upon
631 proper application to the administrator and may cover all or any
632 of its units as approved by the Secretary of Health and Human
633 Services and the administrator. The department shall adopt rules
634 establishing procedures provisions for the submission of
635 documents necessary for such application. Before Prior to being
636 approved for participation in the Florida Retirement System, the
637 governing body of a any such municipality, metropolitan planning
638 organization, or special district that has a local retirement
639 system must shall submit to the administrator a certified
640 financial statement showing the condition of the local
641 retirement system as of a date within 3 months before prior to
642 the proposed effective date of membership in the Florida
643 Retirement System. The statement must be certified by a
644 recognized accounting firm that is independent of the local
645 retirement system. All required documents necessary for
646 extending Florida Retirement System coverage must be received by
647 the department for consideration at least 15 days before prior
648 to the proposed effective date of coverage. If the governing
649 body municipality, metropolitan planning organization, or
650 special district does not comply with this requirement, the
651 department may require that the effective date of coverage be
652 changed.
653 2. A municipality Any city, metropolitan planning
654 organization, or special district that has an existing
655 retirement system covering the employees in the units that are
656 to be brought under the Florida Retirement System may
657 participate only after holding a referendum in which all
658 employees in the affected units have the right to participate.
659 Only those employees electing coverage under the Florida
660 Retirement System by affirmative vote in the said referendum are
661 shall be eligible for coverage under this chapter, and those not
662 participating or electing not to be covered by the Florida
663 Retirement System shall remain in their present systems and are
664 shall not be eligible for coverage under this chapter. After the
665 referendum is held, all future employees are shall be compulsory
666 members of the Florida Retirement System.
667 3. At the time of joining the Florida Retirement System,
668 the governing body of a municipality any city, metropolitan
669 planning organization, or special district complying with
670 subparagraph 1. may elect to provide, or not provide, benefits
671 based on past service of officers and employees as described in
672 s. 121.081(1). However, if such employer elects to provide past
673 service benefits, such benefits must be provided for all
674 officers and employees of its covered group.
675 4. Once this election is made and approved it may not be
676 revoked, except pursuant to subparagraphs 5. and 6., and all
677 present officers and employees electing coverage under this
678 chapter and all future officers and employees are shall be
679 compulsory members of the Florida Retirement System.
680 5. Subject to the conditions set forth in subparagraph 6.,
681 the governing body of a any hospital licensed under chapter 395
682 which is governed by the board of a special district as defined
683 in s. 189.403(1) or by the board of trustees of a public health
684 trust created under s. 154.07, hereinafter referred to as
685 “hospital district,” and which participates in the Florida
686 Retirement System, may elect to cease participation in the
687 system with regard to future employees in accordance with the
688 following procedure:
689 a. No more than 30 days and at least 7 days before
690 adopting a resolution to partially withdraw from the Florida
691 Retirement system and establish an alternative retirement plan
692 for future employees, a public hearing must be held on the
693 proposed withdrawal and proposed alternative plan.
694 b. From 7 to 15 days before such hearing, notice of intent
695 to withdraw, specifying the time and place of the hearing, must
696 be provided in writing to employees of the hospital district
697 proposing partial withdrawal and must be published in a
698 newspaper of general circulation in the area affected, as
699 provided by ss. 50.011-50.031. Proof of publication must of such
700 notice shall be submitted to the department of Management
701 Services.
702 c. The governing body of a any hospital district seeking to
703 partially withdraw from the system must, before such hearing,
704 have an actuarial report prepared and certified by an enrolled
705 actuary, as defined in s. 112.625(3), illustrating the cost to
706 the hospital district of providing, through the retirement plan
707 that the hospital district is to adopt, benefits for new
708 employees comparable to those provided under the Florida
709 Retirement system.
710 d. Upon meeting all applicable requirements of this
711 subparagraph, and subject to the conditions set forth in
712 subparagraph 6., partial withdrawal from the system and adoption
713 of the alternative retirement plan may be accomplished by
714 resolution duly adopted by the hospital district board. The
715 hospital district board must provide written notice of such
716 withdrawal to the division by mailing a copy of the resolution
717 to the division, postmarked by no later than December 15, 1995.
718 The withdrawal shall take effect January 1, 1996.
719 6. Following the adoption of a resolution under sub
720 subparagraph 5.d., all employees of the withdrawing hospital
721 district who were members of participants in the Florida
722 Retirement system before prior to January 1, 1996, shall remain
723 as members of participants in the system for as long as they are
724 employees of the hospital district, and all rights, duties, and
725 obligations between the hospital district, the system, and the
726 employees shall remain in full force and effect. Any employee
727 who is hired or appointed on or after January 1, 1996, may not
728 participate in the Florida Retirement system, and the
729 withdrawing hospital district has shall have no obligation to
730 the system with respect to such employees.
731 (c) Employees of public community colleges or charter
732 technical career centers sponsored by public community colleges,
733 designated in s. 1000.21(3), who are members of the Regular
734 Class of the Florida Retirement System and who comply with the
735 criteria set forth in this paragraph and s. 1012.875 may, in
736 lieu of participating in the Florida Retirement System, elect to
737 withdraw from the system altogether and participate in the State
738 Community College System Optional Retirement Program provided by
739 the employing agency under s. 1012.875.
740 1. Through June 30, 2001, the cost to the employer for a
741 benefit under the optional retirement program such annuity
742 equals the normal cost portion of the employer retirement
743 contribution which would be required if the employee were a
744 member of the Regular Class pension plan defined benefit
745 program, plus the portion of the contribution rate required by
746 s. 112.363(8) which would otherwise be assigned to the Retiree
747 Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
748 each employer shall contribute on behalf of each member of
749 participant in the optional program an amount equal to 10.43
750 percent of the employee’s participant’s gross monthly
751 compensation. The employer shall deduct an amount for the
752 administration of the program. The employer shall contribute an
753 additional amount to the Florida Retirement System Trust Fund
754 equal to the unfunded actuarial accrued liability portion of the
755 Regular Class contribution rate.
756 2. The decision to participate in the an optional
757 retirement program is irrevocable as long as the employee holds
758 a position eligible for participation, except as provided in
759 subparagraph 3. Any service creditable under the Florida
760 Retirement System is retained after the member withdraws from
761 the system; however, additional service credit in the system may
762 not be earned while a member of the optional retirement program.
763 3. An employee who has elected to participate in the
764 optional retirement program shall have one opportunity, at the
765 employee’s discretion, to transfer from the optional retirement
766 program to the defined benefit program of the Florida Retirement
767 System’s pension plan System or to the investment plan
768 established under part II of this chapter Public Employee
769 Optional Retirement Program, subject to the terms of the
770 applicable optional retirement program contracts.
771 a. If the employee chooses to move to the investment plan
772 Public Employee Optional Retirement program, any contributions,
773 interest, and earnings creditable to the employee under the
774 State Community College System optional retirement program are
775 retained by the employee in the State Community College System
776 optional retirement program, and the applicable provisions of s.
777 121.4501(4) govern the election.
778 b. If the employee chooses to move to the pension plan
779 defined benefit program of the Florida Retirement System, the
780 employee shall receive service credit equal to his or her years
781 of service under the State Community College System optional
782 retirement program.
783 (I) The cost for such credit is the amount representing the
784 present value of the employee’s accumulated benefit obligation
785 for the affected period of service. The cost shall be calculated
786 as if the benefit commencement occurs on the first date the
787 employee becomes eligible for unreduced benefits, using the
788 discount rate and other relevant actuarial assumptions that were
789 used to value the pension Florida Retirement System defined
790 benefit plan liabilities in the most recent actuarial valuation.
791 The calculation must include any service already maintained
792 under the pension defined benefit plan in addition to the years
793 under the State Community College System optional retirement
794 program. The present value of any service already maintained
795 must be applied as a credit to total cost resulting from the
796 calculation. The division shall ensure that the transfer sum is
797 prepared using a formula and methodology certified by an
798 enrolled actuary.
799 (II) The employee must transfer from his or her State
800 Community College System optional retirement program account and
801 from other employee moneys as necessary, a sum representing the
802 present value of the employee’s accumulated benefit obligation
803 immediately following the time of such movement, determined
804 assuming that attained service equals the sum of service in the
805 pension plan defined benefit program and service in the State
806 Community College System optional retirement program.
807 4. Participation in the optional retirement program is
808 limited to employees who satisfy the following eligibility
809 criteria:
810 a. The employee is must be otherwise eligible for
811 membership or renewed membership in the Regular Class of the
812 Florida Retirement System, as provided in s. 121.021(11) and
813 (12) or s. 121.122.
814 b. The employee is must be employed in a full-time position
815 classified in the Accounting Manual for Florida’s Public
816 Community Colleges as:
817 (I) Instructional; or
818 (II) Executive Management, Instructional Management, or
819 Institutional Management, and the, if a community college
820 determines that recruiting to fill a vacancy in the position is
821 to be conducted in the national or regional market, and the
822 duties and responsibilities of the position include the
823 formulation, interpretation, or implementation of policies, or
824 the performance of functions that are unique or specialized
825 within higher education and that frequently support the mission
826 of the community college.
827 c. The employee is must be employed in a position not
828 included in the Senior Management Service Class of the Florida
829 Retirement System, as described in s. 121.055.
830 5. Members of Participants in the program are subject to
831 the same reemployment limitations, renewed membership
832 provisions, and forfeiture provisions as are applicable to
833 regular members of the Florida Retirement System under ss.
834 121.091(9), 121.122, and 121.091(5), respectively. A member
835 participant who receives a program distribution funded by
836 employer contributions is shall be deemed to be retired from a
837 state-administered retirement system if the retiree participant
838 is subsequently employed with an employer that participates in
839 the Florida Retirement System.
840 6. Eligible community college employees are compulsory
841 members of the Florida Retirement System until, pursuant to s.
842 1012.875, a written election to withdraw from the system and
843 participate in the State Community College System optional
844 retirement program is filed with the program administrator and
845 received by the division.
846 a. A community college employee whose program eligibility
847 results from initial employment shall must be enrolled in the
848 State Community College System optional retirement program
849 retroactive to the first day of eligible employment. The
850 employer retirement contributions paid through the month of the
851 employee plan change shall be transferred to the community
852 college to the employee’s optional program account, and,
853 effective the first day of the next month, the employer shall
854 pay the applicable contributions based upon subparagraph 1.
855 b. A community college employee whose program eligibility
856 is due to the subsequent designation of the employee’s position
857 as one of those specified in subparagraph 4., or due to the
858 employee’s appointment, promotion, transfer, or reclassification
859 to a position specified in subparagraph 4., must be enrolled in
860 the program on the first day of the first full calendar month
861 that such change in status becomes effective. The employer
862 retirement contributions paid from the effective date through
863 the month of the employee plan change must be transferred to the
864 community college to the employee’s optional program account,
865 and, effective the first day of the next month, the employer
866 shall pay the applicable contributions based upon subparagraph
867 1.
868 7. Effective July 1, 2003, through December 31, 2008, any
869 member participant of the State Community College System
870 optional retirement program who has service credit in the
871 pension defined benefit plan of the Florida Retirement System
872 for the period between his or her first eligibility to transfer
873 from the pension defined benefit plan to the optional retirement
874 program and the actual date of transfer may, during employment,
875 transfer to the optional retirement program a sum representing
876 the present value of the accumulated benefit obligation under
877 the pension plan defined benefit retirement program for the
878 period of service credit. Upon transfer, all service credit
879 previously earned under the pension plan defined benefit program
880 of the Florida Retirement System during this period is nullified
881 for purposes of entitlement to a future benefit under the
882 pension plan defined benefit program of the Florida Retirement
883 System.
884 (d) The governing body of a charter school or a charter
885 technical career center may elect to participate in the system
886 upon proper application to the administrator and shall cover its
887 units as approved by the Secretary of Health and Human Services
888 and the administrator. Once this election is made and approved,
889 it may not be revoked, and all present officers and employees
890 selecting coverage under this chapter and all future officers
891 and employees shall be compulsory members of the Florida
892 Retirement System.
893 (e) All eligible employees initially enrolled on or after
894 July 1, 2011, who are members of the Elected Officers’ Class and
895 Senior Management Class are compulsory members of the investment
896 plan and membership in the revision plan is not permitted except
897 as provided in s. 121.591, F.S.
898 (3) SOCIAL SECURITY COVERAGE.—Social security coverage
899 shall be provided for all officers and employees who become
900 members under the provisions of subsection (1) or subsection
901 (2). Any modification of the present agreement with the Social
902 Security Administration, or referendum required under the Social
903 Security Act, for the purpose of providing social security
904 coverage for any member shall be requested by the state agency
905 in compliance with the applicable provisions of the Social
906 Security Act governing such coverage. However, retroactive
907 social security coverage for service prior to December 1, 1970,
908 with the employer before December 1, 1970, may shall not be
909 provided for a any member who was not covered under the
910 agreement as of November 30, 1970. The employer-paid employee
911 contributions specified in s. 121.71(2) are subject to taxes
912 imposed under the Federal Insurance Contributions Act, 26 U.S.C.
913 ss. 3101-3128.
914 Section 8. Paragraph (b) of subsection (5), paragraph (a)
915 of subsection (7), and paragraph (c) of subsection (9) of
916 section 121.0515, Florida Statutes, are amended to read:
917 121.0515 Special risk membership.—
918 (5) CREDIT FOR PAST SERVICE.—A special risk member may
919 purchase retirement credit in the Special Risk Class based upon
920 past service, and may upgrade retirement credit for such past
921 service, to the extent of 2 percent of the member’s average
922 monthly compensation as specified in s. 121.091(1)(a) for such
923 service as follows:
924 (b) Contributions for upgrading the additional special risk
925 credit are pursuant to this subsection shall be equal to the
926 difference in the employer and, if applicable, employee
927 contributions paid and the special risk percentage rate of gross
928 salary in effect at the time of purchase for the period being
929 claimed, plus interest thereon at the rate of 4 percent a year
930 compounded annually from the date of such service until July 1,
931 1975, and 6.5 percent a year thereafter until the date of
932 payment. This Past service may be purchased by the member or by
933 the employer on behalf of the member.
934 (7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.—
935 (a) A special risk member who is moved or reassigned to a
936 nonspecial risk law enforcement, firefighting, correctional, or
937 emergency medical care administrative support position within
938 with the same agency, or who is subsequently employed in such a
939 position with any law enforcement, firefighting, correctional,
940 or emergency medical care agency under the Florida Retirement
941 System, shall participate in the Special Risk Administrative
942 Support Class and shall earn credit for such service at the same
943 percentage rate as that earned by a regular member.
944 Notwithstanding the provisions of subsection (4), service in
945 such an administrative support position shall, for purposes of
946 s. 121.091, applies apply toward satisfaction of the special
947 risk normal retirement date, as defined in s. 121.021(29)(b) if,
948 provided that, while in such position, the member remains
949 certified as a law enforcement officer, firefighter,
950 correctional officer, emergency medical technician, or
951 paramedic; remains subject to reassignment at any time to a
952 position qualifying for special risk membership; and completes
953 an aggregate of 6 or more years of service as a designated
954 special risk member before prior to retirement.
955 (9) CREDIT FOR UPGRADED SERVICE.—
956 (c) Any member of the Special Risk Class who has earned
957 creditable service in another membership class of the Florida
958 Retirement System in a position with the Department of Law
959 Enforcement or the Division of State Fire Marshal and became
960 covered by the Special Risk Class as described in paragraph
961 (2)(i), or with a local government law enforcement agency or
962 medical examiner’s office and became covered by the Special Risk
963 Class as described in paragraph (2)(j), which service is within
964 the purview of the Special Risk Class, and is employed in such
965 position on or after July 1, 2008, may purchase additional
966 retirement credit to upgrade such service to Special Risk Class
967 service, to the extent of the percentages of the member’s
968 average final compensation provided in s. 121.091(1)(a)2. The
969 cost for such credit must shall be an amount representing the
970 actuarial accrued liability for the difference in accrual value
971 during the affected period of service. The cost shall be
972 calculated using the discount rate and other relevant actuarial
973 assumptions that were used to value the Florida Retirement
974 System’s pension System defined benefit plan liabilities in the
975 most recent actuarial valuation. The division shall ensure that
976 the transfer sum is prepared using a formula and methodology
977 certified by an enrolled actuary. The cost must be paid
978 immediately upon notification by the division. The local
979 government employer may purchase the upgraded service credit on
980 behalf of the member if the member has been employed by that
981 employer for at least 3 years.
982 Section 9. Paragraphs (a) and (d) of subsection (4) and
983 paragraph (b) of subsection (7) of section 121.052, Florida
984 Statutes, are amended, present paragraph (c) of subsection (7)
985 of that section is redesignated as paragraph (d), a new
986 paragraph (c) is added to that subsection, and subsection (8) of
987 that section is amended, to read:
988 121.052 Membership class of elected officers.—
989 (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
990 TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.—
991 (a) An Any duly elected officer whose term of office was
992 shortened by legislative or judicial apportionment pursuant to
993 the provisions of s. 16, Art. III of the State Constitution may,
994 after the term of office to which he or she was elected is
995 completed, pay into the Florida Retirement System Trust Fund the
996 amount of contributions that would have been made by the officer
997 or the officer’s employer on his or her behalf, plus 4 percent
998 interest compounded annually from the date he or she left office
999 until July 1, 1975, and 6.5 percent interest compounded annually
1000 thereafter, and may receive service credit for the length of
1001 time the officer would have served if such term had not been
1002 shortened by apportionment.
1003 (d)1. Any justice or judge, or any retired justice or judge
1004 who retired before July 1, 1993, who has attained the age of 70
1005 years and who is prevented under s. 8, Art. V of the State
1006 Constitution from completing his or her term of office because
1007 of age may elect to purchase credit for all or a portion of the
1008 months he or she would have served during the remainder of the
1009 term of office; however, but he or she may claim those months
1010 only after the date the service would have occurred. The justice
1011 or judge must pay into the Florida Retirement System Trust Fund
1012 the amount of contributions that would have been made by the
1013 employer on his or her behalf for the period of time being
1014 claimed, plus 6.5 percent interest thereon compounded each June
1015 30 from the date he or she left office, in order to receive
1016 service credit in this class for the period of time being
1017 claimed. After the date the service would have occurred, and
1018 upon payment of the required contributions, the retirement
1019 benefit of a retired justice or judge shall will be adjusted
1020 prospectively to include the this additional creditable service;
1021 however, such adjustment may be made only once.
1022 2. Any justice or judge who does not seek election to a
1023 subsequent term of office because he or she would be prevented
1024 under s. 8, Art. V of the State Constitution from completing
1025 such term of office upon attaining the age of 70 years may elect
1026 to purchase service credit for service as a temporary judge as
1027 assigned by the court if the temporary assignment follows
1028 immediately follows the last full term of office served and the
1029 purchase is limited to the number of months of service needed to
1030 vest retirement benefits. To receive retirement credit for such
1031 temporary service beyond termination, the justice or judge must
1032 pay into the Florida Retirement System Trust Fund the amount of
1033 contributions that would have been made by the justice or judge
1034 and the employer on his or her behalf had he or she continued in
1035 office for the period of time being claimed, plus 6.5 percent
1036 interest thereon compounded each June 30 from the date he or she
1037 left office.
1038 (7) CONTRIBUTIONS.—
1039 (b) The employer paying the salary of a member of the
1040 Elected Officers’ Class shall contribute an amount as specified
1041 in this subsection or s. 121.71, as appropriate, which shall
1042 constitute the entire employer retirement contribution with
1043 respect to such member. The employer shall also withhold one
1044 half of the entire contribution of the member required for
1045 social security coverage. Effective July 1, 2011, members of the
1046 Elected Officers’ Class shall pay retirement contributions as
1047 specified in s. 121.71.
1048 (c) If a member of the Elected Officers’ Class ceases to
1049 fill an office covered by this class for 3 calendar months for
1050 any reason other than retirement and has not been employed in
1051 any capacity with any participating employer for 3 calendar
1052 months, the member is entitled to receive a refund of all
1053 contributions he or she made to the pension plan, subject to the
1054 restrictions otherwise provided in this chapter. Partial refunds
1055 are not permitted. The refund may not include any interest
1056 earnings on contributions to the pension plan. Employer
1057 contributions made on behalf of the member are not refundable. A
1058 member may not receive a refund of employee contributions if a
1059 pending or an approved qualified domestic relations order is
1060 filed against the member’s retirement account. By obtaining a
1061 refund of contributions, a member waives all rights under the
1062 Florida Retirement System, including the health insurance
1063 subsidy under this subsection, to the service credit represented
1064 by the refunded contributions, except the right to purchase
1065 prior service credit in accordance with s. 121.081(2).
1066 (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.—A member
1067 of the Elected Officers’ Class has shall have the same normal
1068 retirement date as defined in s. 121.021(29) for a member of the
1069 regular class of the Florida Retirement System. A Any public
1070 service commissioner who was removed from the Elected State
1071 Officers’ Class on July 1, 1979, after attaining at least 8
1072 years of creditable service in that class is shall be considered
1073 to have reached the normal retirement date upon attaining the
1074 required age as provided 62 as required in s. 121.021(29)(a).
1075 Section 10. Paragraph (a) of subsection (7) of section
1076 121.053, Florida Statutes, is amended to read:
1077 121.053 Participation in the Elected Officers’ Class for
1078 retired members.—
1079 (7) A member who is elected or appointed to an elective
1080 office and who is participating in the Deferred Retirement
1081 Option Program is not subject to termination as defined in s.
1082 121.021, or reemployment limitations as provided in s.
1083 121.091(9), until the end of his or her current term of office
1084 or, if the officer is consecutively elected or reelected to an
1085 elective office eligible for coverage under the Florida
1086 Retirement System, until he or she no longer holds an elective
1087 office, as follows:
1088 (a) At the end of the 60-month DROP period:
1089 1. The officer’s DROP account may not accrue additional
1090 monthly benefits, but does continue to earn interest as provided
1091 in s. 121.091(13). However, an officer whose DROP participation
1092 begins on or after July 1, 2010, may not continue to earn such
1093 interest.
1094 2. Except for unfunded actuarial liability and health
1095 insurance subsidy contributions required under ss. 121.71(5) and
1096 121.76, retirement contributions are not required of the
1097 employer of the elected officer and additional retirement credit
1098 may not be earned under the Florida Retirement System.
1099 Section 11. Paragraphs (b) and (j) of subsection (1),
1100 paragraph (b) of subsection (3), and paragraphs (c), (d), and
1101 (e) of subsection (6) of section 121.055, Florida Statutes, are
1102 amended, present paragraph (c) of subsection (3) of that section
1103 is redesignated as paragraph (d), and a new paragraph (c) is
1104 added to that subsection, to read:
1105 121.055 Senior Management Service Class.—There is hereby
1106 established a separate class of membership within the Florida
1107 Retirement System to be known as the “Senior Management Service
1108 Class,” which shall become effective February 1, 1987.
1109 (1)
1110 (b)1. Except as provided in subparagraph 2., effective
1111 January 1, 1990, participation in the Senior Management Service
1112 Class is shall be compulsory for the president of each community
1113 college, the manager of each participating city or county, and
1114 all appointed district school superintendents. Effective January
1115 1, 1994, additional positions may be designated for inclusion in
1116 the Senior Management Service Class if of the Florida Retirement
1117 System, provided that:
1118 a. Positions to be included in the class are shall be
1119 designated by the local agency employer. Notice of intent to
1120 designate positions for inclusion in the class must shall be
1121 published once a week for 2 consecutive weeks in a newspaper of
1122 general circulation published in the county or counties
1123 affected, as provided under in chapter 50.
1124 b. Up to 10 nonelective full-time positions may be
1125 designated for each local agency employer reporting to the
1126 department of Management Services; for local agencies with 100
1127 or more regularly established positions, additional nonelective
1128 full-time positions may be designated, up to not to exceed 1
1129 percent of the regularly established positions within the
1130 agency.
1131 c. Each position added to the class must be a managerial or
1132 policymaking position filled by an employee who is not subject
1133 to continuing contract and serves at the pleasure of the local
1134 agency employer without civil service protection, and who:
1135 (I) Heads an organizational unit; or
1136 (II) Has responsibility to effect or recommend personnel,
1137 budget, expenditure, or policy decisions in his or her areas of
1138 responsibility.
1139 2. In lieu of participation in the Senior Management
1140 Service Class, members of the Senior Management Service class,
1141 pursuant to the provisions of subparagraph 1., may withdraw from
1142 the Florida Retirement System altogether. The decision to
1143 withdraw from the Florida Retirement system is shall be
1144 irrevocable for as long as the employee holds the such a
1145 position. Any service creditable under the Senior Management
1146 Service Class shall be retained after the member withdraws from
1147 the Florida Retirement system; however, additional service
1148 credit in the Senior Management Service Class may shall not be
1149 earned after such withdrawal. Such members are shall not be
1150 eligible to participate in the Senior Management Service
1151 Optional Annuity Program.
1152 3. Effective January 1, 2006, through June 30, 2006, an
1153 employee who has withdrawn from the Florida Retirement System
1154 under subparagraph 2. has one opportunity to elect to
1155 participate in either the pension plan or investment plan
1156 defined benefit program or the Public Employee Optional
1157 Retirement Program of the Florida Retirement System.
1158 a. If the employee elects to participate in the investment
1159 plan Public Employee Optional Retirement Program, membership is
1160 shall be prospective, and the applicable provisions of s.
1161 121.4501(4) shall govern the election.
1162 b. If the employee elects to participate in the pension
1163 plan defined benefit program of the Florida Retirement System,
1164 the employee shall, upon payment to the system trust fund of the
1165 amount calculated under sub-sub-subparagraph (I), receive
1166 service credit for prior service based upon the time during
1167 which the employee had withdrawn from the system.
1168 (I) The cost for such credit shall be an amount
1169 representing the actuarial accrued liability for the affected
1170 period of service. The cost shall be calculated using the
1171 discount rate and other relevant actuarial assumptions that were
1172 used to value pension the Florida Retirement System defined
1173 benefit plan liabilities in the most recent actuarial valuation.
1174 The calculation must shall include any service already
1175 maintained under the pension defined benefit plan in addition to
1176 the period of withdrawal. The actuarial accrued liability
1177 attributable to any service already maintained under the pension
1178 defined benefit plan shall be applied as a credit to the total
1179 cost resulting from the calculation. The division must shall
1180 ensure that the transfer sum is prepared using a formula and
1181 methodology certified by an actuary.
1182 (II) The employee must transfer a sum representing the net
1183 cost owed for the actuarial accrued liability in sub-sub
1184 subparagraph (I) immediately following the time of such
1185 movement, determined assuming that attained service equals the
1186 sum of service in the pension plan defined benefit program and
1187 the period of withdrawal.
1188 (j) Except as may otherwise be provided, a any member of
1189 the Senior Management Service Class may purchase additional
1190 retirement credit in such class for creditable service within
1191 the purview of the Senior Management Service Class retroactive
1192 to February 1, 1987, and may upgrade retirement credit for such
1193 service, to the extent of 2 percent of the member’s average
1194 monthly compensation as specified in paragraph (4)(d) for such
1195 service. Contributions for upgrading the additional Senior
1196 Management Service credit are pursuant to this paragraph shall
1197 be equal to the difference in the employer and, if applicable,
1198 employee contributions paid and the Senior Management Service
1199 Class contribution rate as a percentage of gross salary in
1200 effect for the period being claimed, plus interest thereon at
1201 the rate of 6.5 percent a year, compounded annually until the
1202 date of payment. The This service credit may be purchased by the
1203 employer on behalf of the member.
1204 (3)
1205 (b) The employer or member of the Senior Management Service
1206 Class, as applicable, paying the salary of a member of the
1207 Senior Management Service Class shall contribute an amount as
1208 specified in this section or s. 121.71, as appropriate, which
1209 shall constitute the entire employer retirement contribution
1210 with respect to such member. The employer shall also withhold
1211 one-half of the entire contribution of the member required for
1212 social security coverage. Effective July 1, 2011, each member
1213 shall pay employee contributions as specified in s. 121.71.
1214 (c) Upon termination of employment from all participating
1215 employers for 3 calendar months as defined in s. 121.021(39)(c)
1216 for any reason other than retirement, a member may receive a
1217 refund of all contributions he or she has made to the pension
1218 plan, subject to the restrictions otherwise provided in this
1219 chapter. Partial refunds are not permitted. The refund may not
1220 include any interest earnings on the contributions for a member
1221 of the pension plan. Employer contributions made on behalf of
1222 the member are not refundable. A member may not receive a refund
1223 of employee contributions if a pending or an approved qualified
1224 domestic relations order is filed against the member’s
1225 retirement account. By obtaining a refund of contributions, a
1226 member waives all rights under the Florida Retirement System and
1227 the health insurance subsidy provided under s. 112.363 to the
1228 service credit represented by the refunded contributions, except
1229 the right to purchase prior service credit in accordance with s.
1230 121.081(2).
1231 (6)
1232 (c) Participation.—
1233 1. An eligible employee who is employed on or before
1234 February 1, 1987, may elect to participate in the optional
1235 annuity program in lieu of participating participation in the
1236 Senior Management Service Class. Such election must be made in
1237 writing and filed with the department and the personnel officer
1238 of the employer on or before May 1, 1987. An eligible employee
1239 who is employed on or before February 1, 1987, and who fails to
1240 make an election to participate in the optional annuity program
1241 by May 1, 1987, shall be deemed to have elected membership in
1242 the Senior Management Service Class.
1243 2. Except as provided in subparagraph 6., an employee who
1244 becomes eligible to participate in the optional annuity program
1245 by reason of initial employment commencing after February 1,
1246 1987, may, within 90 days after the date of commencing
1247 employment, elect to participate in the optional annuity
1248 program. Such election must be made in writing and filed with
1249 the personnel officer of the employer. An eligible employee who
1250 does not within 90 days after commencing employment elect to
1251 participate in the optional annuity program shall be deemed to
1252 have elected membership in the Senior Management Service Class.
1253 3. A person who is appointed to a position in the Senior
1254 Management Service Class and who is a member of an existing
1255 retirement system or the Special Risk or Special Risk
1256 Administrative Support Classes of the Florida Retirement System
1257 may elect to remain in such system or class in lieu of
1258 participating participation in the Senior Management Service
1259 Class or optional annuity program. Such election must be made in
1260 writing and filed with the department and the personnel officer
1261 of the employer within 90 days after of such appointment. An Any
1262 eligible employee who fails to make an election to participate
1263 in the existing system, the Special Risk Class of the Florida
1264 Retirement System, the Special Risk Administrative Support Class
1265 of the Florida Retirement System, or the optional annuity
1266 program shall be deemed to have elected membership in the Senior
1267 Management Service Class.
1268 4. Except as provided in subparagraph 5., an employee’s
1269 election to participate in the optional annuity program is
1270 irrevocable if the employee continues to be employed in an
1271 eligible position and continues to meet the eligibility
1272 requirements set forth in this paragraph.
1273 5. Effective from July 1, 2002, through September 30, 2002,
1274 an any active employee in a regularly established position who
1275 has elected to participate in the Senior Management Service
1276 Optional Annuity Program has one opportunity to choose to move
1277 from the Senior Management Service Optional Annuity Program to
1278 the Florida Retirement System’s pension plan System defined
1279 benefit program.
1280 a. The election must be made in writing and must be filed
1281 with the department and the personnel officer of the employer
1282 before October 1, 2002, or, in the case of an active employee
1283 who is on a leave of absence on July 1, 2002, within 90 days
1284 after the conclusion of the leave of absence. This election is
1285 irrevocable.
1286 b. The employee shall receive service credit under the
1287 pension plan defined benefit program of the Florida Retirement
1288 System equal to his or her years of service under the Senior
1289 Management Service Optional Annuity Program. The cost for such
1290 credit is the amount representing the present value of that
1291 employee’s accumulated benefit obligation for the affected
1292 period of service.
1293 c. The employee must transfer the total accumulated
1294 employer contributions and earnings on deposit in his or her
1295 Senior Management Service Optional Annuity Program account. If
1296 the transferred amount is not sufficient to pay the amount due,
1297 the employee must pay a sum representing the remainder of the
1298 amount due. The employee may not retain any employer
1299 contributions or earnings thereon from the Senior Management
1300 Service Optional Annuity Program account.
1301 6. A retiree of a state-administered retirement system who
1302 is initially reemployed on or after July 1, 2010, may not renew
1303 membership in the Senior Management Service Optional Annuity
1304 Program.
1305 (d) Contributions.—
1306 1.a. Through June 30, 2001, each employer shall contribute
1307 on behalf of each member of participant in the Senior Management
1308 Service Optional Annuity Program an amount equal to the normal
1309 cost portion of the employer retirement contribution which would
1310 be required if the employee participant were a Senior Management
1311 Service Class member of the Florida Retirement System’s pension
1312 plan System defined benefit program, plus the portion of the
1313 contribution rate required in s. 112.363(8) which that would
1314 otherwise be assigned to the Retiree Health Insurance Subsidy
1315 Trust Fund.
1316 b. Effective July 1, 2001, each employer shall contribute
1317 on behalf of each member of participant in the optional annuity
1318 program an amount equal to 12.49 percent of the employee’s
1319 participant’s gross monthly compensation.
1320 c. Effective July 1, 2011, each member of the optional
1321 annuity program shall contribute an amount equal to the employee
1322 contribution required in s. 121.71(3). The employer shall
1323 contribute on behalf of each such employee an amount equal to
1324 the difference between 12.49 percent of the employee’s gross
1325 monthly compensation and the amount equal to the employee’s
1326 required contribution based on the employee’s gross monthly
1327 compensation.
1328 d. The department shall deduct an amount approved by the
1329 Legislature to provide for the administration of this program.
1330 The Payment of the contributions, including contributions made
1331 by the employee, to the optional program which is required by
1332 this subparagraph for each participant shall be made by the
1333 employer to the department, which shall forward the
1334 contributions to the designated company or companies contracting
1335 for payment of benefits for members of the participant under the
1336 optional annuity program. The department shall deduct an amount
1337 approved by the Legislature to provide for the administration of
1338 the program.
1339 2. Each employer shall contribute on behalf of each member
1340 of participant in the Senior Management Service Optional Annuity
1341 Program an amount equal to the unfunded actuarial accrued
1342 liability portion of the employer contribution which would be
1343 required for members of the Senior Management Service Class in
1344 the Florida Retirement System. This contribution shall be paid
1345 to the department for transfer to the Florida Retirement System
1346 Trust Fund.
1347 3. An Optional Annuity Program Trust Fund shall be
1348 established in the State Treasury and administered by the
1349 department to make payments to provider companies on behalf of
1350 the optional annuity program members participants, and to
1351 transfer the unfunded liability portion of the state optional
1352 annuity program contributions to the Florida Retirement System
1353 Trust Fund.
1354 4. Contributions required for social security by each
1355 employer and each employee participant, in the amount required
1356 for social security coverage as now or hereafter may be provided
1357 by the federal Social Security Act, shall be maintained for each
1358 member of participant in the Senior Management Service
1359 retirement program and are shall be in addition to the
1360 retirement contributions specified in this paragraph.
1361 5. Each member of participant in the Senior Management
1362 Service optional annuity program may contribute by way of salary
1363 reduction or deduction a percentage amount of the employee’s
1364 participant’s gross compensation not to exceed the percentage
1365 amount contributed by the employer to the optional annuity
1366 program. Payment of the employee’s participant’s contributions
1367 shall be made by the employer to the department, which shall
1368 forward the contributions to the designated company or companies
1369 contracting for payment of benefits for members the participant
1370 under the program.
1371 (e) Benefits.—
1372 1. Benefits under the Senior Management Service Optional
1373 Annuity Program are payable only to members of participants in
1374 the program, or their beneficiaries as designated by the member
1375 participant in the contract with the provider company, and must
1376 be paid by the designated company in accordance with the terms
1377 of the annuity contract applicable to the member participant. A
1378 member participant must be terminated from all employment
1379 relationships with Florida Retirement System employers as
1380 provided in s. 121.021(39) to begin receiving the employer
1381 funded and employee-funded benefit. Benefits funded by employer
1382 and employee contributions are payable under the terms of the
1383 contract to the member participant, his or her beneficiary, or
1384 his or her estate, in addition to:
1385 a. A lump-sum payment to the beneficiary upon the death of
1386 the member participant;
1387 b. A cash-out of a de minimis account upon the request of a
1388 former member participant who has been terminated for a minimum
1389 of 6 calendar months from the employment that entitled him or
1390 her to optional annuity program participation. Such cash-out
1391 must be a complete liquidation of the account balance with that
1392 company and is subject to the Internal Revenue Code;
1393 c. A mandatory distribution of a de minimis account of a
1394 former member participant who has been terminated for a minimum
1395 of 6 calendar months from the employment that entitled him or
1396 her to optional annuity program participation as authorized by
1397 the department; or
1398 d. A lump-sum direct rollover distribution whereby all
1399 accrued benefits, plus interest and investment earnings, are
1400 paid from the member’s participant’s account directly to the
1401 custodian of an eligible retirement plan, as defined in s.
1402 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
1403 member participant.
1404 2. Benefits are not payable for employee hardships,
1405 unforeseeable emergencies, loans, medical expenses, educational
1406 expenses, purchase of a principal residence, payments necessary
1407 to prevent eviction or foreclosure on an employee’s principal
1408 residence, or any other reason before termination from all
1409 employment relationships with participating employers, as
1410 provided in s. 121.021(39).
1411 3.2. The benefits payable to any person under the Senior
1412 Management Service optional annuity program, and any
1413 contribution accumulated under such program, are not subject to
1414 assignment, execution, or attachment or to any legal process
1415 whatsoever.
1416 4.3. Except as provided in subparagraph 5. 4., a member
1417 participant who terminates employment and receives a
1418 distribution, including a rollover or trustee-to-trustee
1419 transfer, funded by employer or employee contributions is shall
1420 be deemed to be retired from a state-administered retirement
1421 system if the retiree participant is subsequently employed with
1422 an employer that participates in the Florida Retirement System.
1423 5.4. A member participant who receives optional annuity
1424 program benefits funded by employer or employee contributions as
1425 a mandatory distribution of a de minimis account authorized by
1426 the department is not considered a retiree.
1427
1428 As used in this paragraph, a “de minimis account” means an
1429 account with a provider company containing employer or employee
1430 contributions and accumulated earnings of not more than $5,000
1431 made under this chapter.
1432 Section 12. Subsections (2) and (5) and paragraph (c) of
1433 subsection (6) of section 121.071, Florida Statutes, are
1434 amended, present paragraph (d) of subsection (6) of that section
1435 is redesignated as paragraph (e), and a new paragraph (d) is
1436 added to that subsection, to read:
1437 121.071 Contributions.—Contributions to the system shall be
1438 made as follows:
1439 (2)(a) Effective January 1, 1975, or October 1, 1975, as
1440 applicable, and through June 30, 2011, each employer shall make
1441 accomplish the contribution required by subsection (1) by a
1442 procedure in which no employee’s gross salary is shall be
1443 reduced. Effective July 1, 2011, each employee, and his or her
1444 employer, shall pay retirement contributions as specified in s.
1445 121.71.
1446 (b) Upon termination of employment from all participating
1447 employers for 3 calendar months as defined in s. 121.021(39)(c)
1448 for any reason other than retirement, a member may receive a
1449 shall be entitled to a full refund of all the contributions he
1450 or she has made to the pension prior or subsequent to
1451 participation in the noncontributory plan, subject to the
1452 restrictions otherwise provided in this chapter. Partial refunds
1453 are not permitted. The refund may not include any interest
1454 earnings on the contributions for a member of the pension plan.
1455 Employer contributions made on behalf of the member are not
1456 refundable. A member may not receive a refund of employee
1457 contributions if a pending or an approved qualified domestic
1458 relations order is filed against his or her retirement account.
1459 By obtaining a refund of contributions, a member waives all
1460 rights under the Florida Retirement System and the health
1461 insurance subsidy to the service credit represented by the
1462 refunded contributions, except the right to purchase prior
1463 service credit in accordance with s. 121.081(2).
1464 (5) Contributions made in accordance with subsections (1),
1465 (2), (3), and (4), and s. 121.71 shall be paid by the employer
1466 into the system trust funds in accordance with rules adopted by
1467 the administrator pursuant to chapter 120, except as may be
1468 otherwise specified herein. Effective July 1, 2002,
1469 contributions paid under subsections (1) and (4) and
1470 accompanying payroll data are due and payable by no later than
1471 the 5th working day of the month immediately following the month
1472 during which the payroll period ended.
1473 (6)
1474 (c) By obtaining a refund of contributions, a member waives
1475 all rights under the Florida Retirement System, including the
1476 health insurance subsidy under subsection (4), to the service
1477 credit represented by the refunded contributions, except the
1478 right to purchase his or her prior service credit in accordance
1479 with s. 121.081(2).
1480 (d) If a member or former member of the pension plan
1481 receives an invalid refund from the Florida Retirement System
1482 Trust Fund, such person must repay the full amount of the
1483 refund, plus interest at 6.5 percent compounded annually on each
1484 June 30 from the date of refund until full repayment is made.
1485 The invalid refund must be repaid before the member retires or,
1486 if applicable, transfers to the investment plan.
1487 Section 13. Paragraphs (b) and (c) of subsection (1) and
1488 subsection (2) of section 121.081, Florida Statutes, are amended
1489 to read:
1490 121.081 Past service; prior service; contributions.
1491 Conditions under which past service or prior service may be
1492 claimed and credited are:
1493 (1)
1494 (b) Past service earned after January 1, 1975, may be
1495 claimed by officers or employees of a municipality, metropolitan
1496 planning organization, charter school, charter technical career
1497 center, or special district who become a covered group under
1498 this system. The governing body of a covered group may elect to
1499 provide benefits for past service earned after January 1, 1975,
1500 in accordance with this chapter., and The cost for such past
1501 service is established by applying the following formula: The
1502 employer shall contribute an amount equal to the employer or
1503 employee contribution rate in effect at the time the service was
1504 earned, as applicable, multiplied by the employee’s gross salary
1505 for each year of past service claimed, plus 6.5 percent 6.5
1506 percent interest thereon, compounded annually, for figured on
1507 each year of past service, with interest compounded from date of
1508 annual salary earned until date of payment.
1509 (c) If an Should the employer does not elect to provide
1510 past service for the member on the date of joining the system,
1511 then the member may claim and pay for the service as provided in
1512 same, based on paragraphs (a) and (b).
1513 (2) Prior service, as defined in s. 121.021(19), may be
1514 claimed as creditable service under the Florida Retirement
1515 System after a member has been reemployed for 1 complete year of
1516 creditable service within a period of 12 consecutive months,
1517 except as provided in paragraph (c). Service performed as a
1518 member participant of the optional retirement program for the
1519 State University System under s. 121.35 or the Senior Management
1520 Service Optional Annuity Program under s. 121.055 may be used to
1521 satisfy the reemployment requirement of 1 complete year of
1522 creditable service. The member may shall not be permitted to
1523 make any contributions for prior service until after completion
1524 of the 1 year of creditable service. If a member does not wish
1525 to claim credit for all of his or her prior service, the service
1526 the member claims must be the most recent period of service. The
1527 required contributions for claiming the various types of prior
1528 service are:
1529 (a) For prior service performed before prior to the date
1530 the system becomes noncontributory for the member and for which
1531 the member had credit under one of the existing retirement
1532 systems and received a refund of contributions upon termination
1533 of employment, the member shall contribute 4 percent of all
1534 salary received during the period being claimed, plus 4 percent
1535 4-percent interest compounded annually from date of refund until
1536 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
1537 annually thereafter, until full payment is made to the Florida
1538 Retirement System Trust Fund, and shall receive credit in the
1539 Regular Class. A member who elected to transfer to the Florida
1540 Retirement System from an existing system may receive credit for
1541 prior service under the existing system if he or she was
1542 eligible under the existing system to claim the prior service at
1543 the time of the transfer. Contributions for such prior service
1544 shall be determined by the applicable provisions of the system
1545 under which the prior service is claimed and shall be paid by
1546 the member, with matching contributions paid by the employer at
1547 the time the service was performed. Effective July 1, 1978, the
1548 account of a person who terminated under s. 238.05(3) may not be
1549 charged interest for contributions that remained on deposit in
1550 the Annuity Savings Trust Fund established under chapter 238,
1551 upon retirement under this chapter or chapter 238.
1552 (b) For prior service performed before prior to the date
1553 the system becomes noncontributory for the member and for which
1554 the member had credit under the Florida Retirement System and
1555 received a refund of contributions upon termination of
1556 employment, the member shall contribute at the rate that was
1557 required of him or her during the period of service being
1558 claimed, on all salary received during such period, plus 4
1559 percent 4-percent interest compounded annually from date of
1560 refund until July 1, 1975, and 6.5 percent 6.5-percent interest
1561 compounded annually thereafter, until the full payment is made
1562 to the Florida Retirement System Trust Fund, and shall receive
1563 credit in the membership class in which the member participated
1564 during the period claimed.
1565 (c) For prior service as defined in s. 121.021(19)(b) and
1566 (c) during which no contributions were made because the member
1567 did not participate in a retirement system, the member shall
1568 contribute 14.38 percent of all salary received during such
1569 period or 14.38 percent of $100 per month during such period,
1570 whichever is greater, plus 4 percent 4-percent interest
1571 compounded annually from the first year of service claimed until
1572 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
1573 annually thereafter, until full payment is made to the
1574 Retirement Trust Fund, and shall receive credit in the Regular
1575 Class.
1576 (d) In order to claim credit for prior service as defined
1577 in s. 121.021(19)(d) for which no retirement contributions were
1578 paid during the period of such service, the member shall
1579 contribute the total employee and employer contributions which
1580 were required to be made to the Highway Patrol Pension Trust
1581 Fund, as provided in chapter 321, during the period claimed,
1582 plus 4 percent 4-percent interest compounded annually from the
1583 first year of service until July 1, 1975, and 6.5 percent 6.5
1584 percent interest compounded annually thereafter, until full
1585 payment is made to the Retirement Trust Fund. However, any
1586 governmental entity that which employed such member may elect to
1587 pay up to 50 percent of the contributions and interest required
1588 to purchase the this prior service credit. The service shall be
1589 credited in accordance with the provisions of the Highway Patrol
1590 Pension Plan in effect during the period claimed unless the
1591 member terminated and withdrew his or her retirement
1592 contributions and was thereafter enrolled in the State and
1593 County Officers and Employees’ Retirement System or the Florida
1594 Retirement System, in which case the service shall be credited
1595 as Regular Class service.
1596 (e) For service performed under the Florida Retirement
1597 System after December 1, 1970, which that was never reported to
1598 the division or the department due to error, retirement credit
1599 may be claimed by a member of the Florida Retirement System. The
1600 department shall adopt rules establishing criteria for claiming
1601 such credit and detailing the documentation required to
1602 substantiate the error.
1603 (f) For prior service performed on or after July 1, 2011,
1604 for which the member had credit under the Florida Retirement
1605 System and received a refund of contributions 3 calendar months
1606 after termination of employment, the member shall contribute at
1607 the rate that was required during the period of service being
1608 claimed, plus 6.5 percent interest, compounded annually on each
1609 June 30 from date of refund until the full payment is made to
1610 the Florida Retirement System Trust Fund, and shall receive
1611 credit in the membership class in which the member participated
1612 during the period claimed.
1613 (g)(f) The employer may not be required to make
1614 contributions for prior service credit for any member, except
1615 that the employer shall pay the employer portion of
1616 contributions for any legislator who elects to withdraw from the
1617 Florida Retirement System and later rejoins the system and pays
1618 any employee contributions required in accordance with s.
1619 121.052(3)(d).
1620 Section 14. Paragraph (a) of subsection (3), paragraph (a)
1621 of subsection (4), paragraphs (a) and (c) of subsection (5),
1622 paragraph (d) of subsection (9), paragraphs (a) and (c) of
1623 subsection (13), and paragraph (d) of subsection (14) of section
1624 121.091, Florida Statutes, are amended to read:
1625 121.091 Benefits payable under the system.—Benefits may not
1626 be paid under this section unless the member has terminated
1627 employment as provided in s. 121.021(39)(a) or begun
1628 participation in the Deferred Retirement Option Program as
1629 provided in subsection (13), and a proper application has been
1630 filed in the manner prescribed by the department. The department
1631 may cancel an application for retirement benefits when the
1632 member or beneficiary fails to timely provide the information
1633 and documents required by this chapter and the department’s
1634 rules. The department shall adopt rules establishing procedures
1635 for application for retirement benefits and for the cancellation
1636 of such application when the required information or documents
1637 are not received.
1638 (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
1639 early retirement date, the member shall receive an immediate
1640 monthly benefit that shall begin to accrue on the first day of
1641 the month of the retirement date and be payable on the last day
1642 of that month and each month thereafter during his or her
1643 lifetime. Such benefit shall be calculated as follows:
1644 (a) The amount of each monthly payment shall be computed in
1645 the same manner as for a normal retirement benefit, in
1646 accordance with subsection (1), but shall be based on the
1647 member’s average monthly compensation and creditable service as
1648 of the member’s early retirement date. The benefit so computed
1649 shall be reduced by five-twelfths of 1 percent for each complete
1650 month by which the early retirement date precedes the normal
1651 retirement date of age 62 for a member of the Regular Class,
1652 Senior Management Service Class, or the Elected Officers’ Class,
1653 and age 55 for a member of the Special Risk Class, or age 52 if
1654 a Special Risk member has completed 25 years of creditable
1655 service in accordance with s. 121.021(29)(b)3.
1656 (4) DISABILITY RETIREMENT BENEFIT.—
1657 (a) Disability retirement; entitlement and effective date.—
1658 1.a. A member who becomes totally and permanently disabled,
1659 as defined in paragraph (b), after completing 5 years of
1660 creditable service, or a member who becomes totally and
1661 permanently disabled in the line of duty regardless of service,
1662 is shall be entitled to a monthly disability benefit; except
1663 that any member with less than 5 years of creditable service on
1664 July 1, 1980, or any person who becomes a member of the Florida
1665 Retirement System on or after such date must have completed 10
1666 years of creditable service before prior to becoming totally and
1667 permanently disabled in order to receive disability retirement
1668 benefits for any disability which occurs other than in the line
1669 of duty. However, if a member employed on July 1, 1980, having
1670 with less than 5 years of creditable service as of that date,
1671 becomes totally and permanently disabled after completing 5
1672 years of creditable service and is found not to have attained
1673 fully insured status for benefits under the federal Social
1674 Security Act, such member is shall be entitled to a monthly
1675 disability benefit.
1676 b. Effective July 1, 2001, a member of the pension plan
1677 defined benefit retirement program who becomes totally and
1678 permanently disabled, as defined in paragraph (b), after
1679 completing 8 years of creditable service, or a member who
1680 becomes totally and permanently disabled in the line of duty
1681 regardless of service, is shall be entitled to a monthly
1682 disability benefit.
1683 2. If the division has received from the employer the
1684 required documentation of the member’s termination of
1685 employment, the effective retirement date for a member who
1686 applies and is approved for disability retirement shall be
1687 established by rule of the division.
1688 3. For a member who is receiving Workers’ Compensation
1689 payments, the effective disability retirement date may not
1690 precede the date the member reaches Maximum Medical Improvement
1691 (MMI), unless the member terminates employment before prior to
1692 reaching MMI.
1693 (5) TERMINATION BENEFITS.—A member whose employment is
1694 terminated before prior to retirement retains membership rights
1695 to previously earned member-noncontributory service credit, and
1696 to member-contributory service credit, if the member leaves the
1697 member contributions on deposit in his or her retirement
1698 account. If a terminated member receives a refund of member
1699 contributions, such member may reinstate membership rights to
1700 the previously earned service credit represented by the refund
1701 by completing 1 year of creditable service and repaying the
1702 refunded member contributions, plus interest.
1703 (a) A member whose employment is terminated for any reason
1704 other than death or retirement before prior to becoming vested
1705 is entitled to the return of his or her accumulated employee
1706 contributions as of the date of termination. Effective July 1,
1707 2011, upon termination of employment from all participating
1708 employers for 3 calendar months as defined in s. 121.021(39)(c)
1709 for any reason other than retirement, a member may receive a
1710 refund of all contributions he or she has made to the pension
1711 plan, subject to the restrictions otherwise provided in this
1712 chapter. Partial refunds are not permitted. The refund may not
1713 include any interest earnings on the contributions for a member
1714 of the pension plan. Employer contributions made on behalf of
1715 the member are not refundable. A member may not receive a refund
1716 of employee contributions if a pending or an approved qualified
1717 domestic relations order is filed against his or her retirement
1718 account. By obtaining a refund of contributions, a member waives
1719 all rights under the Florida Retirement System and the health
1720 insurance subsidy to the service credit represented by the
1721 refunded contributions, except the right to purchase prior
1722 service credit in accordance with s. 121.081(2).
1723 (c) In lieu of the deferred monthly benefit provided in
1724 paragraph (b), the terminated member may elect to receive a
1725 lump-sum amount equal to his or her accumulated employee
1726 contributions as of the date of termination. Effective July 1,
1727 2011, upon termination of employment from all participating
1728 employers for 3 calendar months as defined in s. 121.021(39)(c)
1729 for any reason other than retirement, a member may receive a
1730 refund of all contributions he or she has made to the pension
1731 plan, subject to the restrictions otherwise provided in this
1732 chapter. Partial refunds are not permitted. The refund may not
1733 include any interest earnings on the contributions for a member
1734 of the pension plan. Employer contributions made on behalf of
1735 the member are not refundable. A member may not receive a refund
1736 of employee contributions if a pending or an approved qualified
1737 domestic relations order is filed against his or her retirement
1738 account. By obtaining a refund of contributions, a member waives
1739 all rights under the Florida Retirement System and the health
1740 insurance subsidy to the service credit represented by the
1741 refunded contributions, except the right to purchase prior
1742 service credit in accordance with s. 121.081(2).
1743 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
1744 (d) The provisions of This subsection applies apply to
1745 retirees, as defined in s. 121.4501(2), of the Florida Public
1746 Employee Optional Retirement System Investment Plan Program,
1747 subject to the following conditions:
1748 1. The retiree retirees may not be reemployed with an
1749 employer participating in the Florida Retirement System until
1750 such person has been retired for 6 calendar months.
1751 2. A retiree employed in violation of this subsection and
1752 an employer that employs or appoints such person are jointly and
1753 severally liable for reimbursement of any benefits paid to the
1754 retirement trust fund from which the benefits were paid,
1755 including the Retirement System Trust Fund and the Public
1756 Employee Optional Retirement Program Trust Fund, as appropriate.
1757 The employer must have a written statement from the retiree that
1758 he or she is not retired from a state-administered retirement
1759 system.
1760 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
1761 subject to this section, the Deferred Retirement Option Program,
1762 hereinafter referred to as DROP, is a program under which an
1763 eligible member of the Florida Retirement System may elect to
1764 participate, deferring receipt of retirement benefits while
1765 continuing employment with his or her Florida Retirement System
1766 employer. The deferred monthly benefits shall accrue in the
1767 Florida Retirement System on behalf of the participant, plus
1768 interest compounded monthly, for the specified period of the
1769 DROP participation, as provided in paragraph (c). Upon
1770 termination of employment, the participant shall receive the
1771 total DROP benefits and begin to receive the previously
1772 determined normal retirement benefits. Participation in the DROP
1773 does not guarantee employment for the specified period of DROP.
1774 Participation in DROP by an eligible member beyond the initial
1775 60-month period as authorized in this subsection shall be on an
1776 annual contractual basis for all participants.
1777 (a) Eligibility of member to participate in DROP.—All
1778 active Florida Retirement System members in a regularly
1779 established position, and all active members of the Teachers’
1780 Retirement System established in chapter 238 or the State and
1781 County Officers’ and Employees’ Retirement System established in
1782 chapter 122, which are consolidated within the Florida
1783 Retirement System under s. 121.011, are eligible to elect
1784 participation in DROP if:
1785 1. The member is not a renewed member under s. 121.122 or a
1786 member of the State Community College System Optional Retirement
1787 Program under s. 121.051, the Senior Management Service Optional
1788 Annuity Program under s. 121.055, or the optional retirement
1789 program for the State University System under s. 121.35.
1790 2. Except as provided in subparagraph 6., election to
1791 participate is made within 12 months immediately following the
1792 date on which the member first reaches normal retirement date,
1793 or, for a member who reaches normal retirement date based on
1794 service before he or she reaches age 62, or age 55 for Special
1795 Risk Class members, election to participate may be deferred to
1796 the 12 months immediately following the date the member attains
1797 age 57, or age 52 for Special Risk Class members. A member who
1798 delays DROP participation during the 12-month period immediately
1799 following his or her maximum DROP deferral date, except as
1800 provided in subparagraph 6., loses a month of DROP participation
1801 for each month delayed. A member who fails to make an election
1802 within the 12-month limitation period forfeits all rights to
1803 participate in DROP. The member shall advise his or her employer
1804 and the division in writing of the date DROP begins. The
1805 beginning date may be subsequent to the 12-month election period
1806 but must be within the original 60-month participation period
1807 provided in subparagraph (b)1. When establishing eligibility of
1808 the member to participate in DROP, the member may elect to
1809 include or exclude any optional service credit purchased by the
1810 member from the total service used to establish the normal
1811 retirement date. A member who has dual normal retirement dates
1812 is eligible to elect to participate in DROP after attaining
1813 normal retirement date in either class.
1814 3. The employer of a member electing to participate in
1815 DROP, or employers if dually employed, shall acknowledge in
1816 writing to the division the date the member’s participation in
1817 DROP begins and the date the member’s employment and DROP
1818 participation terminates will terminate.
1819 4. Simultaneous employment of a member participant by
1820 additional Florida Retirement System employers subsequent to the
1821 commencement of a member’s participation in DROP is permissible
1822 if such employers acknowledge in writing a DROP termination date
1823 no later than the member’s participant’s existing termination
1824 date or the maximum participation period provided in
1825 subparagraph (b)1.
1826 5. A member DROP participant may change employers while
1827 participating in DROP, subject to the following:
1828 a. A change of employment must take place without a break
1829 in service so that the member receives salary for each month of
1830 continuous DROP participation. If a member receives no salary
1831 during a month, DROP participation ceases shall cease unless the
1832 employer verifies a continuation of the employment relationship
1833 for such member participant pursuant to s. 121.021(39)(b).
1834 b. The member Such participant and new employer shall
1835 notify the division of the identity of the new employer on forms
1836 required by the division.
1837 c. The new employer acknowledges shall acknowledge, in
1838 writing, the member’s participant’s DROP termination date, which
1839 may be extended but not beyond the maximum participation period
1840 provided in subparagraph (b)1., acknowledges shall acknowledge
1841 liability for any additional retirement contributions and
1842 interest required if the member participant fails to timely
1843 terminate employment, and is subject to the adjustment required
1844 in sub-subparagraph (c)5.d.
1845 6. Effective July 1, 2001, for instructional personnel as
1846 defined in s. 1012.01(2), election to participate in DROP may be
1847 made at any time following the date on which the member first
1848 reaches normal retirement date. The member shall advise his or
1849 her employer and the division in writing of the date on which
1850 DROP begins. When establishing eligibility of the member to
1851 participate in DROP for the 60-month participation period
1852 provided in subparagraph (b)1., the member may elect to include
1853 or exclude any optional service credit purchased by the member
1854 from the total service used to establish the normal retirement
1855 date. A member who has dual normal retirement dates is eligible
1856 to elect to participate in either class.
1857 7. The effective date for DROP participation is before July
1858 1, 2016.
1859 (l) Closure of program to new participants.-Effective July
1860 1, 2016, DROP is closed to new participants. Only members whose
1861 DROP effective date is before July 1, 2016, may participate in
1862 DROP.
1863 (c) Benefits payable under DROP.—
1864 1. Effective on the date of DROP participation, the
1865 member’s initial normal monthly benefit, including creditable
1866 service, optional form of payment, and average final
1867 compensation, and the effective date of retirement are fixed.
1868 The beneficiary established under the Florida Retirement System
1869 is the beneficiary eligible to receive any DROP benefits payable
1870 if the DROP participant dies before completing the period of
1871 DROP participation. If a joint annuitant predeceases the member,
1872 the member may name a beneficiary to receive accumulated DROP
1873 benefits payable. The retirement benefit, the annual cost of
1874 living adjustments provided in s. 121.101, and interest accrue
1875 monthly in the Florida Retirement System Trust Fund.
1876 a. For members initially enrolled in the system before July
1877 1, 2011, the interest accrues at an effective annual rate of 6.5
1878 percent compounded monthly, on the prior month’s accumulated
1879 ending balance, up to the month of termination or death, except
1880 as provided in s. 121.053(7).
1881 b. For members initially enrolled in the system on or after
1882 July 1, 2011, the interest accrues at an effective annual rate
1883 of 2 percent compounded monthly, on the prior month’s
1884 accumulated ending balance, up to the month of termination or
1885 death, except as provided in s. 121.053(7).
1886 2. Each employee who elects to participate in DROP may
1887 elect to receive a lump-sum payment for accrued annual leave
1888 earned in accordance with agency policy upon beginning
1889 participation in DROP. The accumulated leave payment certified
1890 to the division upon commencement of DROP shall be included in
1891 the calculation of the member’s average final compensation. The
1892 employee electing the lump-sum payment is not eligible to
1893 receive a second lump-sum payment upon termination, except to
1894 the extent the employee has earned additional annual leave
1895 which, combined with the original payment, does not exceed the
1896 maximum lump-sum payment allowed by the employing agency’s
1897 policy or rules. An early lump-sum payment shall be based on the
1898 hourly wage of the employee at the time he or she begins
1899 participation in DROP. If the member elects to wait and receive
1900 a lump-sum payment upon termination of DROP and termination of
1901 employment with the employer, any accumulated leave payment made
1902 at that time may not be included in the member’s retirement
1903 benefit, which was determined and fixed by law when the employee
1904 elected to participate in DROP.
1905 3. The effective date of DROP participation and the
1906 effective date of retirement of a DROP participant shall be the
1907 first day of the month selected by the member to begin
1908 participation in DROP, provided such date is properly
1909 established, with the written confirmation of the employer, and
1910 the approval of the division, on forms required by the division.
1911 4. Normal retirement benefits and any interest shall
1912 continue to accrue in DROP until the established termination
1913 date of DROP or until the member participant terminates
1914 employment or dies before prior to such date, except as provided
1915 in s. 121.053(7). Although individual DROP accounts may shall
1916 not be established, a separate accounting of each member’s
1917 participant’s accrued benefits under DROP shall be calculated
1918 and provided to the member participants.
1919 5. At the conclusion of the member’s participation in the
1920 participant’s DROP, the division shall distribute the member’s
1921 participant’s total accumulated DROP benefits, subject to the
1922 following:
1923 a. The division shall receive verification by the member’s
1924 participant’s employer or employers that the member participant
1925 has terminated all employment relationships as provided in s.
1926 121.021(39).
1927 b. The terminated DROP participant or, if deceased, the
1928 member’s participant’s named beneficiary, shall elect on forms
1929 provided by the division to receive payment of the DROP benefits
1930 in accordance with one of the options listed below. If a member
1931 participant or beneficiary fails to elect a method of payment
1932 within 60 days after termination of DROP, the division shall pay
1933 a lump sum as provided in sub-sub-subparagraph (I).
1934 (I) Lump sum.—All accrued DROP benefits, plus interest,
1935 less withholding taxes remitted to the Internal Revenue Service,
1936 shall be paid to the DROP participant or surviving beneficiary.
1937 (II) Direct rollover.—All accrued DROP benefits, plus
1938 interest, shall be paid from DROP directly to the custodian of
1939 an eligible retirement plan as defined in s. 402(c)(8)(B) of the
1940 Internal Revenue Code. However, in the case of an eligible
1941 rollover distribution to the surviving spouse of a deceased
1942 member participant, an eligible retirement plan is an individual
1943 retirement account or an individual retirement annuity as
1944 described in s. 402(c)(9) of the Internal Revenue Code.
1945 (III) Partial lump sum.—A portion of the accrued DROP
1946 benefits shall be paid to DROP participant or surviving spouse,
1947 less withholding taxes remitted to the Internal Revenue Service,
1948 and the remaining DROP benefits must be transferred directly to
1949 the custodian of an eligible retirement plan as defined in s.
1950 402(c)(8)(B) of the Internal Revenue Code. However, in the case
1951 of an eligible rollover distribution to the surviving spouse of
1952 a deceased member participant, an eligible retirement plan is an
1953 individual retirement account or an individual retirement
1954 annuity as described in s. 402(c)(9) of the Internal Revenue
1955 Code. The proportions must be specified by the DROP participant
1956 or surviving beneficiary.
1957 c. The form of payment selected by the DROP participant or
1958 surviving beneficiary must comply with the minimum distribution
1959 requirements of the Internal Revenue Code.
1960 d. A DROP participant who fails to terminate all employment
1961 relationships as provided in s. 121.021(39) shall be deemed as
1962 not retired, and the DROP election is null and void. Florida
1963 Retirement System membership shall be reestablished
1964 retroactively to the date of the commencement of DROP, and each
1965 employer with whom the member participant continues employment
1966 must pay to the Florida Retirement System Trust Fund the
1967 difference between the DROP contributions paid in paragraph (i)
1968 and the contributions required for the applicable Florida
1969 Retirement System class of membership during the period the
1970 member participated in DROP, plus 6.5 percent interest
1971 compounded annually.
1972 6. The retirement benefits of any DROP participant who
1973 terminates all employment relationships as provided in s.
1974 121.021(39) but is reemployed in violation of the reemployment
1975 provisions of subsection (9) are shall be suspended during those
1976 months in which the retiree is in violation. Any retiree in
1977 violation of this subparagraph and any employer that employs or
1978 appoints such person without notifying the division of
1979 Retirement to suspend retirement benefits are jointly and
1980 severally liable for any benefits paid during the reemployment
1981 limitation period. The employer must have a written statement
1982 from the retiree that he or she is not retired from a state
1983 administered retirement system. Any retirement benefits received
1984 by a retiree while employed in violation of the reemployment
1985 limitations must be repaid to the Florida Retirement System
1986 Trust Fund, and his or her retirement benefits shall remain
1987 suspended until payment is made. Benefits suspended beyond the
1988 end of the reemployment limitation period apply toward repayment
1989 of benefits received in violation of the reemployment
1990 limitation.
1991 7. The accrued benefits of any DROP participant, and any
1992 contributions accumulated under the program, are not subject to
1993 assignment, execution, attachment, or any legal process
1994 whatsoever, except for qualified domestic relations court orders
1995 by a court of competent jurisdiction, income deduction orders as
1996 provided in s. 61.1301, and federal income tax levies.
1997 8. DROP participants are not eligible for disability
1998 retirement benefits as provided in subsection (4).
1999 (14) PAYMENT OF BENEFITS.—This subsection applies to the
2000 payment of benefits to a payee (retiree or beneficiary) under
2001 the Florida Retirement System:
2002 (d) A payee whose retirement benefits are reduced by the
2003 application of maximum benefit limits under s. 415(b) of the
2004 Internal Revenue Code, as specified in s. 121.30(5), shall have
2005 the portion of his or her calculated benefit in the Florida
2006 Retirement System’s pension System defined benefit plan which
2007 exceeds such federal limitation paid through the Florida
2008 Retirement System Preservation of Benefits Plan, as provided in
2009 s. 121.1001.
2010 Section 15. Subsection (1) and paragraph (a) of subsection
2011 (2) of section 121.1001, Florida Statutes, are amended to read:
2012 121.1001 Florida Retirement System Preservation of Benefits
2013 Plan.—Effective July 1, 1999, the Florida Retirement System
2014 Preservation of Benefits Plan is established as a qualified
2015 governmental excess benefit arrangement pursuant to s. 415(m) of
2016 the Internal Revenue Code. The Preservation of Benefits Plan is
2017 created as a separate portion of the Florida Retirement System,
2018 for the purpose of providing benefits to a payee (retiree or
2019 beneficiary) of the Florida Retirement System whose benefits
2020 would otherwise be limited by s. 415(b) of the Internal Revenue
2021 Code.
2022 (1) ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF
2023 BENEFITS PLAN.—A payee of the Florida Retirement System shall
2024 participate in the Preservation of Benefits Plan if whenever his
2025 or her earned benefit under the Florida Retirement System’s
2026 pension System defined benefit plan exceeds the benefit maximum
2027 established under s. 415(b) of the Internal Revenue Code.
2028 Participation in the Preservation of Benefits Plan shall
2029 continue for as long as the payee’s earned benefit under the
2030 pension Florida Retirement System defined benefit plan is
2031 reduced by the application of the maximum benefit limit under s.
2032 415(b) of the Internal Revenue Code.
2033 (2) BENEFITS PAYABLE UNDER THE PRESERVATION OF BENEFITS
2034 PLAN.—
2035 (a) On and after July 1, 1999, the division of Retirement
2036 shall pay to each eligible payee of the Florida Retirement
2037 System who retires before, on, or after that such date, a
2038 supplemental retirement benefit equal to the difference between
2039 the amount of the payee’s monthly retirement benefit which would
2040 have been payable under the Florida Retirement System’s pension
2041 System defined benefit plan if not for a reduction due to the
2042 application of s. 415(b) of the Internal Revenue Code and the
2043 reduced monthly retirement benefit as paid to the payee. The
2044 Preservation of Benefits Plan benefit shall be computed and
2045 payable under the same terms and conditions and to the same
2046 person as would have applied under the pension Florida
2047 Retirement System defined benefit plan were it not for the
2048 federal limitation.
2049 Section 16. Subsections (1) and (3) of section 121.101,
2050 Florida Statutes, are amended, present subsections (4) through
2051 (7) of that section are redesignated as subsections (5) through
2052 (8), respectively, and a new subsection (4) is added to that
2053 section, to read:
2054 121.101 Cost-of-living adjustment of benefits.—
2055 (1) The purpose of this section is to provide cost-of
2056 living adjustments to the monthly benefits payable to all
2057 retired members of state-supported retirement systems.
2058 (3) Commencing July 1, 1987, the benefit of each retiree
2059 and annuitant retiring before July 1, 2011, shall be adjusted
2060 annually on each July 1 thereafter, as follows:
2061 (a) For those retirees and annuitants who have never
2062 received a cost-of-living adjustment under this section, the
2063 amount of the monthly benefit payable for the 12-month period
2064 commencing on the adjustment date shall be the amount of the
2065 member’s initial benefit plus an amount equal to a percentage of
2066 the member’s initial benefit; this percentage is derived by
2067 dividing the number of months the member has received an initial
2068 benefit by 12, and multiplying the result by 3.
2069 (b) For those retirees and annuitants who have received a
2070 cost-of-living adjustment under this subsection section, the
2071 adjusted monthly benefit shall be the amount of the monthly
2072 benefit being received on June 30 immediately preceding the
2073 adjustment date plus an amount equal to 3 percent of this
2074 benefit.
2075 (4) For members retiring on or after July 1, 2011, the
2076 benefit of each retiree and annuitant shall be adjusted annually
2077 on July 1 as follows:
2078 (a) For those retirees and annuitants who have never
2079 received a cost-of-living adjustment under this subsection, the
2080 amount of the monthly benefit payable for the 12-month period
2081 commencing on the adjustment date shall be the amount of the
2082 member’s initial benefit plus an amount equal to a percentage of
2083 the member’s initial benefit. This percentage is derived by
2084 dividing the number of months the member has received an initial
2085 benefit by 12, and multiplying the result by the factor
2086 calculated pursuant to paragraph (c).
2087 (b) For those retirees and annuitants who have received a
2088 cost-of-living adjustment under this subsection, the adjusted
2089 monthly benefit shall be the amount of the monthly benefit being
2090 received on June 30 immediately preceding the adjustment date
2091 plus an amount determined by multiplying the benefit by the
2092 factor calculated pursuant to paragraph (c).
2093 (c) The department shall calculate a cost-of-living factor
2094 for each retiree and beneficiary retiring on or after July 1,
2095 2011. This factor shall equal the product of 3 percent
2096 multiplied by the quotient of the sum of the member’s service
2097 credit earned for service before July 1, 2011, divided by the
2098 sum of the member’s total service credit earned.
2099 Section 17. Subsection (1) of section 121.121, Florida
2100 Statutes, is amended to read:
2101 121.121 Authorized leaves of absence.—
2102 (1) A member may purchase creditable service for up to 2
2103 work years of authorized leaves of absence, including any leaves
2104 of absence covered under the Family Medical Leave Act, if:
2105 (a) The member has completed a minimum of 6 years of
2106 creditable service, excluding periods for which a leave of
2107 absence was authorized;
2108 (b) The leave of absence is authorized in writing by the
2109 employer of the member and approved by the administrator;
2110 (c) The member returns to active employment performing
2111 service with a Florida Retirement System employer in a regularly
2112 established position immediately upon termination of the leave
2113 of absence and remains on the employer’s payroll for 1 calendar
2114 month, except that a member who retires on disability while on a
2115 medical leave of absence may shall not be required to return to
2116 employment. A member whose work year is less than 12 months and
2117 whose leave of absence terminates between school years is
2118 eligible to receive credit for the leave of absence if as long
2119 as he or she returns to the employment of his or her employer at
2120 the beginning of the next school year and remains on the
2121 employer’s payroll for 1 calendar month; and
2122 (d) The member makes the required contributions for service
2123 credit during the leave of absence, which shall be 8 percent
2124 until January 1, 1975, and 9 percent thereafter of his or her
2125 rate of monthly compensation in effect immediately before prior
2126 to the commencement of such leave for each month of such period,
2127 plus 4 percent interest until July 1, 1975, and 6.5 percent
2128 interest thereafter on such contributions, compounded annually
2129 each June 30 from the due date of the contribution to date of
2130 payment. Effective July 1, 1980, any leave of absence purchased
2131 pursuant to this section is shall be at the contribution rates
2132 specified in s. 121.071 or s. 121.71 in effect at the time the
2133 leave is granted for the class of membership from which the
2134 leave of absence was granted; however, any member who purchased
2135 leave-of-absence credit before prior to July 1, 1980, for a
2136 leave of absence from a position in a class other than the
2137 regular membership class, may pay the appropriate additional
2138 contributions plus compound interest thereon and receive
2139 creditable service for such leave of absence in the membership
2140 class from which the member was granted the leave of absence.
2141 Effective July 1, 2011, any leave of absence purchased pursuant
2142 to this section shall be at the employee and employer
2143 contribution rates specified in s. 121.71 in effect during the
2144 leave for the class of membership from which the leave of
2145 absence was granted.
2146 Section 18. Subsection (2) of section 121.122, Florida
2147 Statutes, is amended, and subsection (3) is added to that
2148 section, to read:
2149 121.122 Renewed membership in system.—
2150 (2) A retiree of a state-administered retirement system who
2151 is initially reemployed on or after July 1, 2010, through June
2152 30, 2011, shall become a member of the Regular Class and be
2153 enrolled in the Florida Retirement System Investment Plan on
2154 July 1, 2011, and must resatisfy the vesting requirements and
2155 other provisions provided in this chapter is not eligible for
2156 renewed membership. This subsection does not apply to retirees
2157 from the Elected Officers’ Class or the Senior Management
2158 Service Class.
2159 (a) Creditable service, including credit towards the
2160 retiree health insurance subsidy provided in s. 112.363, does
2161 not accrue for a retiree’s employment in a regularly established
2162 position with a covered employer during the period from July 1,
2163 2010, through June 30, 2011.
2164 (b) Employer contributions, interest, earnings, or any
2165 other funds may not be paid into a renewed member’s investment
2166 plan account for any employment in a regularly established
2167 position with a covered employer during the period from July 1,
2168 2010, through June 30, 2011.
2169 (c) To be eligible to receive a retirement benefit under
2170 the investment plan, the renewed member must meet the vesting
2171 requirements of the plan as provided in s. 121.4501(6).
2172 (d) The member is not entitled to disability benefits as
2173 provided in s. 121.091(4) or s. 121.591(2).
2174 (e) The member must meet the limitations on reemployment
2175 after retirement as provided in s. 121.091(9), as applicable.
2176 (f) Upon the renewed membership or reemployment of a
2177 retiree, the employer of such member and the retiree shall pay
2178 the applicable employer and employee contributions as required
2179 by ss. 112.363, 121.71, 121.74, and 121.76. Such contributions
2180 are payable only for employment in a regularly established
2181 position with a covered employer on or after July 1, 2011.
2182 (g) The member may not purchase any prior or past service
2183 in the investment plan, including employment in a regularly
2184 established position with a covered employer during the period
2185 from July 1, 2010, through June 30, 2011.
2186 (h) A renewed member who is not receiving the maximum
2187 health insurance subsidy provided in s. 112.363 is entitled to
2188 earn additional credit toward the subsidy. Such credit may be
2189 earned only for employment in a regularly established position
2190 with a covered employer on or after July 1, 2011. Any additional
2191 subsidy due because of additional credit may be received only at
2192 the time of paying the second career retirement benefit. The
2193 total health insurance subsidy received by a retiree receiving
2194 benefits from initial and renewed membership may not exceed the
2195 maximum allowed under s. 112.363.
2196 (3) Any retiree of a state-administered retirement system
2197 who is initially reemployed on or after July 1, 2011, except for
2198 retirees from the Elected Officers’ Class or the Senior
2199 Management Service Class, shall become a member of the Regular
2200 Class and be enrolled in the Florida Retirement System
2201 Investment Plan, and must resatisfy the vesting requirements and
2202 other provisions of this chapter. Retirees from the Elected
2203 Officers’ Class or the Senior Management Service Class may not
2204 be enrolled in a state-administered retirement system.
2205 (a) To be eligible to receive a retirement benefit under
2206 the investment plan, the renewed member must meet the vesting
2207 requirements of the investment plan as provided in s.
2208 121.4501(6).
2209 (b) The member is not entitled to disability benefits as
2210 provided in s. 121.091(4) or s. 121.591(2).
2211 (c) The member must meet the limitations on reemployment
2212 after retirement provided in s. 121.091(9), as applicable.
2213 (d) Upon renewed membership or reemployment of a retiree,
2214 the employer of such member and the retiree must pay the
2215 applicable employer and employee contributions as required by
2216 ss. 112.363, 121.71, 121.74, and 121.76.
2217 (e) The member may not purchase any prior or past service
2218 in the investment plan.
2219 (f) A renewed member who is not receiving the maximum
2220 health insurance subsidy provided in s. 112.363 is entitled to
2221 earn additional credit toward the subsidy. Any additional
2222 subsidy due because of additional credit may be received only at
2223 the time of paying the second career retirement benefit. The
2224 total health insurance subsidy received by a retiree receiving
2225 benefits from initial and renewed membership may not exceed the
2226 maximum allowed under s. 112.363.
2227 Section 19. Section 121.125, Florida Statutes, is amended
2228 to read:
2229 121.125 Credit for workers’ compensation payment periods.—A
2230 member of the retirement system created by this chapter who has
2231 been eligible or becomes eligible for to receive workers’
2232 compensation payments for an injury or illness that occurred
2233 occurring during his or her employment while a member of a any
2234 state retirement system shall, upon return to active employment
2235 with a covered employer for 1 calendar month or upon approval
2236 for disability retirement in accordance with s. 121.091(4),
2237 receive full retirement credit for the period before prior to
2238 such return to active employment or disability retirement for
2239 which the workers’ compensation payments were received. However,
2240 a no member may not receive retirement credit for any such
2241 period occurring after the earlier of the date of maximum
2242 medical improvement as defined in s. 440.02 or the date
2243 termination has occurred as defined in s. 121.021(39). The
2244 employer of record at the time of the worker’s compensation
2245 injury or illness shall make the required employee and employer
2246 retirement contributions based on the member’s rate of monthly
2247 compensation immediately before prior to his or her receiving
2248 workers’ compensation payments for retirement credit received by
2249 the member. The employer of record at the time of the workers’
2250 compensation injury or illness shall be assessed by the division
2251 a penalty of 1 percent of the contributions on all contributions
2252 not paid on the first payroll report after the member becomes
2253 eligible to receive credit. This delinquent assessment may not
2254 be waived.
2255 Section 20. Paragraphs (g) and (i) of subsection (3) and
2256 subsections (4) and (5) of section 121.35, Florida Statutes, are
2257 amended to read:
2258 121.35 Optional retirement program for the State University
2259 System.—
2260 (3) ELECTION OF OPTIONAL PROGRAM.—
2261 (g) An eligible employee who is a member of the Florida
2262 Retirement System at the time of electing election to
2263 participate in the optional retirement program shall retain all
2264 retirement service credit earned under the Florida Retirement
2265 System, at the rate earned. No Additional service credit in the
2266 Florida Retirement system may not shall be earned while the
2267 employee participates in the optional program, and nor shall the
2268 employee is not be eligible for disability retirement under the
2269 Florida Retirement system. An eligible employee may transfer
2270 from the Florida Retirement System to his or her accounts under
2271 the State University System Optional Retirement Program a sum
2272 representing the present value of the employee’s accumulated
2273 benefit obligation under the defined benefit program of the
2274 Florida Retirement System’s pension plan System for any service
2275 credit accrued from the employee’s first eligible transfer date
2276 to the optional retirement program through the actual date of
2277 such transfer, if such service credit was earned in the period
2278 from July 1, 1984, through December 31, 1992. The present value
2279 of the employee’s accumulated benefit obligation shall be
2280 calculated as described in s. 121.4501(3) s. 121.4501(3)(c)2.
2281 Upon such transfer, all such service credit previously earned
2282 under the pension plan defined benefit program of the Florida
2283 Retirement System during this period is shall be nullified for
2284 purposes of entitlement to a future benefit under the pension
2285 plan defined benefit program of the Florida Retirement System.
2286 (i) Effective January 1, 2008, through December 31, 2008,
2287 except for an employee who is a mandatory member participant of
2288 the State University System Optional Retirement Program, an
2289 employee who has elected to participate in the State University
2290 System Optional Retirement Program shall have one opportunity,
2291 at the employee’s discretion, to choose to transfer from this
2292 program to the pension plan or the investment plan defined
2293 benefit program of the Florida Retirement System or to the
2294 Public Employee Optional Retirement Program, subject to the
2295 terms of the applicable contracts of the State University System
2296 Optional Retirement Program.
2297 1. If the employee chooses to move to the investment plan
2298 Public Employee Optional Retirement Program, any contributions,
2299 interest, and earnings creditable to the employee under the
2300 State University System Optional Retirement Program must shall
2301 be retained by the employee in the State University System
2302 Optional Retirement Program, and the applicable provisions of s.
2303 121.4501(4) shall govern the election.
2304 2. If the employee chooses to move to the pension plan
2305 defined benefit program of the Florida Retirement System, the
2306 employee shall receive service credit equal to his or her years
2307 of service under the State University System Optional Retirement
2308 Program.
2309 a. The cost for such credit must be in shall be an amount
2310 representing the actuarial accrued liability for the affected
2311 period of service. The cost must shall be calculated using the
2312 discount rate and other relevant actuarial assumptions that were
2313 used to value the pension Florida Retirement System defined
2314 benefit plan liabilities in the most recent actuarial valuation.
2315 The calculation must shall include any service already
2316 maintained under the pension defined benefit plan in addition to
2317 the years under the State University System Optional Retirement
2318 Program. The actuarial accrued liability of any service already
2319 maintained under the pension defined benefit plan must shall be
2320 applied as a credit to total cost resulting from the
2321 calculation. The division must shall ensure that the transfer
2322 sum is prepared using a formula and methodology certified by an
2323 enrolled actuary.
2324 b. The employee must transfer from his or her State
2325 University System Optional Retirement Program account, and from
2326 other employee moneys as necessary, a sum representing the
2327 actuarial accrued liability immediately following the time of
2328 such movement, determined assuming that attained service equals
2329 the sum of service in the pension plan defined benefit program
2330 and service in the State University System Optional Retirement
2331 Program.
2332 (4) CONTRIBUTIONS.—
2333 (a)1. Through June 30, 2001, each employer shall contribute
2334 on behalf of each member of participant in the optional
2335 retirement program an amount equal to the normal cost portion of
2336 the employer retirement contribution which would be required if
2337 the employee participant were a regular member of the Florida
2338 Retirement System’s pension plan System defined benefit program,
2339 plus the portion of the contribution rate required in s.
2340 112.363(8) that would otherwise be assigned to the Retiree
2341 Health Insurance Subsidy Trust Fund.
2342 2. Effective July 1, 2001, through June 30, 2011, each
2343 employer shall contribute on behalf of each member of
2344 participant in the optional retirement program an amount equal
2345 to 10.43 percent of the employee’s participant’s gross monthly
2346 compensation.
2347 3. Effective July 1, 2011, each member of the optional
2348 retirement program shall contribute an amount equal to the
2349 employee contribution required in s. 121.71(3). The employer
2350 shall contribute on behalf of each such member an amount equal
2351 to the difference between 10.43 percent of the employee’s gross
2352 monthly compensation and the amount equal to the employee’s
2353 required contribution based on the employee’s gross monthly
2354 compensation.
2355 4. The department shall deduct an amount approved by the
2356 Legislature to provide for the administration of this program.
2357 The payment of the contributions, including contributions by the
2358 employee, to the optional program which is required by this
2359 paragraph for each participant shall be made by the employer to
2360 the department, which shall forward the contributions to the
2361 designated company or companies contracting for payment of
2362 benefits for members of the participant under the program.
2363 However, such contributions paid on behalf of an employee
2364 described in paragraph (3)(c) may shall not be forwarded to a
2365 company and do shall not begin to accrue interest until the
2366 employee has executed a contract and notified the department.
2367 The department shall deduct an amount from the contributions to
2368 provide for the administration of this program.
2369 (b) Each employer shall contribute on behalf of each member
2370 of participant in the optional retirement program an amount
2371 equal to the unfunded actuarial accrued liability portion of the
2372 employer contribution which would be required for members of the
2373 Florida Retirement System. This contribution shall be paid to
2374 the department for transfer to the Florida Retirement System
2375 Trust Fund.
2376 (c) An Optional Retirement Program Trust Fund shall be
2377 established in the State Treasury and administered by the
2378 department to make payments to the provider companies on behalf
2379 of the optional retirement program members participants, and to
2380 transfer the unfunded liability portion of the state optional
2381 retirement program contributions to the Florida Retirement
2382 System Trust Fund.
2383 (d) Contributions required for social security by each
2384 employer and each employee participant, in the amount required
2385 for social security coverage as now or hereafter may be provided
2386 by the federal Social Security Act, shall be maintained for each
2387 member of participant in the optional retirement program and are
2388 shall be in addition to the retirement contributions specified
2389 in this subsection.
2390 (e) Each member of participant in the optional retirement
2391 program who has executed a contract may contribute by way of
2392 salary reduction or deduction a percentage amount of the
2393 employee’s participant’s gross compensation not to exceed the
2394 percentage amount contributed by the employer to the optional
2395 program, but in no case may such contribution may not exceed
2396 federal limitations. Payment of the employee’s participant’s
2397 contributions shall be made by the financial officer of the
2398 employer to the division which shall forward the contributions
2399 to the designated company or companies contracting for payment
2400 of benefits for members the participant under the program. A
2401 member participant may not make, through salary reduction, any
2402 voluntary employee contributions to any other plan under s.
2403 403(b) of the Internal Revenue Code, with the exception of a
2404 custodial account under s. 403(b)(7) of the Internal Revenue
2405 Code, until he or she has made an employee contribution to his
2406 or her optional program equal to the employer contribution. An
2407 employee A participant is responsible for monitoring his or her
2408 individual tax-deferred income to ensure he or she does not
2409 exceed the maximum deferral amounts permitted under the Internal
2410 Revenue Code.
2411 (f) The Optional Retirement Trust Fund may accept for
2412 deposit into member participant contracts contributions in the
2413 form of rollovers or direct trustee-to-trustee transfers by or
2414 on behalf of members participants who are reasonably determined
2415 by the department to be eligible for rollover or transfer to the
2416 optional retirement program pursuant to the Internal Revenue
2417 Code, if such contributions are made in accordance with rules
2418 adopted by the department. Such contributions shall be accounted
2419 for in accordance with any applicable requirements of the
2420 Internal Revenue Code and department rules of the department.
2421 (g) Effective July 1, 2008, for purposes of paragraph (a)
2422 and notwithstanding s. 121.021(22)(b)1., the term “employee’s
2423 participant’s gross monthly compensation” includes salary
2424 payments made to eligible clinical faculty from a state
2425 university using funds provided by a faculty practice plan
2426 authorized by the Board of Governors of the State University
2427 System if:
2428 1. There is no not any employer contribution from the state
2429 university to any other retirement program with respect to such
2430 salary payments; and
2431 2. The employer contribution on behalf of a member of the
2432 participant in the optional retirement program with respect to
2433 such salary payments is made using funds provided by the faculty
2434 practice plan.
2435 (5) BENEFITS.—
2436 (a) Benefits are payable under the optional retirement
2437 program only to vested members participating participants in the
2438 program, or their beneficiaries as designated by the member
2439 participant in the contract with a provider company, and such
2440 benefits shall be paid only by the designated company in
2441 accordance with s. 403(b) of the Internal Revenue Code and the
2442 terms of the annuity contract or contracts applicable to the
2443 member participant. Benefits accrue in individual accounts that
2444 are member-directed participant-directed, portable, and funded
2445 by employer contributions and the earnings thereon. The member
2446 participant must be terminated for 3 calendar months from all
2447 employment relationships with all Florida Retirement System
2448 employers, as provided in s. 121.021(39), to begin receiving the
2449 employer-funded benefit. Benefits funded by employer
2450 contributions are payable in accordance with the following terms
2451 and conditions:
2452 1. Benefits shall be paid only to a participating member
2453 participant, to his or her beneficiaries, or to his or her
2454 estate, as designated by the member participant.
2455 2. Benefits shall be paid by the provider company or
2456 companies in accordance with the law, the provisions of the
2457 contract, and any applicable department rule or policy.
2458 3. In the event of a member’s participant’s death, moneys
2459 accumulated by, or on behalf of, the member participant, less
2460 withholding taxes remitted to the Internal Revenue Service, if
2461 any, shall be distributed to the member’s participant’s
2462 designated beneficiary or beneficiaries, or to the member’s
2463 participant’s estate, as if the member participant retired on
2464 the date of death, as provided in paragraph (d) (c). No other
2465 death benefits are available to survivors of members
2466 participants under the optional retirement program except for
2467 such benefits, or coverage for such benefits, as are separately
2468 afforded by the employer, at the employer’s discretion.
2469 (b) Benefits are not payable for employee hardships,
2470 unforeseeable emergencies, loans, medical expenses, educational
2471 expenses, purchase of a principal residence, payments necessary
2472 to prevent eviction or foreclosure on an employee’s principal
2473 residence, or any other reason before termination from all
2474 employment relationships with participating employers, as
2475 provided in s. 121.021(39).
2476 (c)(b) Upon receipt by the provider company of a properly
2477 executed application for distribution of benefits, the total
2478 accumulated benefit are shall be payable to the participating
2479 member participant, as:
2480 1. A lump-sum distribution to the member participant;
2481 2. A lump-sum direct rollover distribution whereby all
2482 accrued benefits, plus interest and investment earnings, are
2483 paid from the participant’s account directly to an eligible
2484 retirement plan, as defined in s. 402(c)(8)(B) of the Internal
2485 Revenue Code, on behalf of the member participant;
2486 3. Periodic distributions;
2487 4. A partial lump-sum payment whereby a portion of the
2488 accrued benefit is paid to the member participant and the
2489 remaining amount is transferred to an eligible retirement plan,
2490 as defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
2491 behalf of the member participant; or
2492 5. Such other distribution options as are provided for in
2493 the participant’s optional retirement program contract.
2494 (d)(c) Survivor benefits are shall be payable as:
2495 1. A lump-sum distribution payable to the beneficiaries or
2496 to the deceased member’s participant’s estate;
2497 2. An eligible rollover distribution on behalf of the
2498 surviving spouse of a deceased member participant, whereby all
2499 accrued benefits, plus interest and investment earnings, are
2500 paid from the deceased member’s participant’s account directly
2501 to an eligible retirement plan, as described in s. 402(c)(8)(B)
2502 of the Internal Revenue Code, on behalf of the surviving spouse;
2503 3. Such other distribution options as are provided for in
2504 the member’s participant’s optional retirement program contract;
2505 or
2506 4. A partial lump-sum payment whereby a portion of the
2507 accrued benefit is paid to the deceased member’s participant’s
2508 surviving spouse or other designated beneficiaries, less
2509 withholding taxes remitted to the Internal Revenue Service, if
2510 any, and the remaining amount is transferred directly to an
2511 eligible retirement plan, as described in s. 402(c)(8)(B) of the
2512 Internal Revenue Code, on behalf of the surviving spouse. The
2513 proportions must be specified by the member participant or the
2514 surviving beneficiary.
2515
2516 This paragraph does not abrogate other applicable provisions of
2517 state or federal law providing payment of death benefits.
2518 (e)(d) The benefits payable to any person under the
2519 optional retirement program, and any contribution accumulated
2520 under such program, are shall not be subject to assignment,
2521 execution, or attachment or to any legal process whatsoever.
2522 (f)(e) A participating member participant who chooses to
2523 receive his or her benefits must be terminated for 3 calendar
2524 months to be eligible to receive benefits funded by employer
2525 contributions. The member upon termination as defined in s.
2526 121.021 must notify the provider company of the date he or she
2527 wishes benefits funded by required employer and employee
2528 contributions to begin and must be terminated as defined in s.
2529 121.021 after the initial benefit payment or distribution.
2530 Benefits may be deferred until the member participant chooses to
2531 make such application.
2532 (g)(f) Benefits funded by the participating member’s
2533 voluntary participant’s personal contributions may be paid out
2534 at any time and in any form within the limits provided in the
2535 contract between the member participant and the his or her
2536 provider company. The member participant shall notify the
2537 provider company regarding the date and provisions under which
2538 he or she wants to receive the employee-funded portion of the
2539 plan.
2540 (h)(g) For purposes of this section, “retiree” means a
2541 former participating member participant of the optional
2542 retirement program who has terminated employment and has taken a
2543 distribution as provided in this subsection, except for a
2544 mandatory distribution of a de minimis account authorized by the
2545 department.
2546 Section 21. Section 121.355, Florida Statutes, is amended
2547 to read:
2548 121.355 Community College Optional Retirement Program and
2549 State University System Optional Retirement Program member
2550 transfer.—Effective January 1, 2009, through December 31, 2009,
2551 an employee who is a former member of participant in the
2552 Community College Optional Retirement Program or the State
2553 University System Optional Retirement Program and present
2554 mandatory member of participant in the Florida Retirement
2555 System’s pension System defined benefit plan may receive service
2556 credit equal to his or her years of service under the Community
2557 College Optional Retirement Program or the State University
2558 System Optional Retirement Program under the following
2559 conditions:
2560 (1) The cost for such credit must represent shall be an
2561 amount representing the actuarial accrued liability for the
2562 affected period of service. The cost shall be calculated using
2563 the discount rate and other relevant actuarial assumptions that
2564 were used to value the Florida Retirement System’s pension
2565 System defined benefit plan liabilities in the most recent
2566 actuarial valuation. The calculation must shall include any
2567 service already maintained under the pension defined benefit
2568 plan in addition to the years under the Community College
2569 Optional Retirement Program or the State University System
2570 Optional Retirement Program. The actuarial accrued liability of
2571 any service already maintained under the pension defined benefit
2572 plan shall be applied as a credit to total cost resulting from
2573 the calculation. The division shall ensure that the transfer sum
2574 is prepared using a formula and methodology certified by an
2575 enrolled actuary.
2576 (2) The employee must transfer from his or her Community
2577 College Optional Retirement Program account or State University
2578 System Optional Retirement Program account, subject to the terms
2579 of the applicable optional retirement program contract, and from
2580 other employee moneys as necessary, a sum representing the
2581 actuarial accrued liability immediately following the time of
2582 such movement, determined assuming that attained service equals
2583 the sum of service in the pension plan defined benefit program
2584 and service in the Community College Optional Retirement Program
2585 or State University System Optional Retirement Program.
2586 (3) The employee may not receive service credit for a
2587 period of mandatory participation in the State University
2588 Optional Retirement Program or for a period for which a
2589 distribution was received from the Community College Optional
2590 Retirement Program or State University System Optional
2591 Retirement Program.
2592 Section 22. Section 121.4501, Florida Statutes, is amended
2593 to read:
2594 121.4501 Florida Public Employee Optional Retirement System
2595 Investment Plan Program.—
2596 (1) The Trustees of the State Board of Administration shall
2597 establish a an optional defined contribution retirement program
2598 called the Florida Retirement System Investment Plan for members
2599 of the Florida Retirement System under which retirement benefits
2600 are will be provided for eligible employees initially employed
2601 before July 1, 2011, who elect to enroll participate in the
2602 plan. Enrollment is compulsory for members of the Elected
2603 Officers’ Class and the Senior Management Class, who are
2604 employed on or after July 1, 2011, except for those who are
2605 eligible to and elect to enroll in an optional retirement
2606 program established under s. 121.055(6), s. 121.35, or s.
2607 1012.875, or those who qualify for special risk membership
2608 pursuant to s. 121.0515 program. The retirement benefits to be
2609 provided for or on behalf of participants in such optional
2610 retirement program shall be provided through employee-directed
2611 investments, in accordance with s. 401(a) of the Internal
2612 Revenue Code and its related regulations. The Employers and
2613 employees shall make contributions contribute, as provided in
2614 this section and, ss. 121.571, and 121.71, to the Florida Public
2615 Employee Optional Retirement System Investment Plan Program
2616 Trust Fund toward the funding of such optional benefits.
2617 (2) DEFINITIONS.—As used in this part, the term:
2618 (a) “Approved provider” or “provider” means a private
2619 sector company that is selected and approved by the state board
2620 to offer one or more investment products or services to the
2621 investment plan optional retirement program. The term includes a
2622 bundled provider that offers plan members participants a range
2623 of individually allocated or unallocated investment products and
2624 may offer a range of administrative and customer services, which
2625 may include accounting and administration of individual member
2626 participant benefits and contributions; individual member
2627 participant recordkeeping; asset purchase, control, and
2628 safekeeping; direct execution of the member’s participant’s
2629 instructions as to asset and contribution allocation;
2630 calculation of daily net asset values; direct access to member
2631 participant account information; periodic reporting to members
2632 participants, at least quarterly, on account balances and
2633 transactions; guidance, advice, and allocation services directly
2634 relating to the provider’s own investment options or products,
2635 but only if the bundled provider complies with the standard of
2636 care of s. 404(a)(1)(A-B) of the Employee Retirement Income
2637 Security Act of 1974 (ERISA) and if providing such guidance,
2638 advice, or allocation services does not constitute a prohibited
2639 transaction under s. 4975(c)(1) of the Internal Revenue Code or
2640 s. 406 of ERISA, notwithstanding that such prohibited
2641 transaction provisions do not apply to the optional retirement
2642 program; a broad array of distribution options; asset
2643 allocation; and retirement counseling and education. Private
2644 sector companies include investment management companies,
2645 insurance companies, depositories, and mutual fund companies.
2646 (b) “Average monthly compensation” means one-twelfth of
2647 average final compensation as defined in s. 121.021.
2648 (c) “Covered employment” means employment in a regularly
2649 established position as defined in s. 121.021.
2650 (d) “Defined benefit program” means the defined benefit
2651 program of the Florida Retirement System administered under part
2652 I of this chapter.
2653 (e) “Division” means the Division of Retirement within the
2654 department.
2655 (d)(f) “Electronic means” means by telephone, if the
2656 required information is received on a recorded line, or through
2657 Internet access, if the required information is captured online.
2658 (g) “Eligible employee” means an officer or employee, as
2659 defined in s. 121.021, who:
2660 1. Is a member of, or is eligible for membership in, the
2661 Florida Retirement System, including any renewed member of the
2662 Florida Retirement System initially enrolled before July 1,
2663 2010; or
2664 2. Participates in, or is eligible to participate in, the
2665 Senior Management Service Optional Annuity Program as
2666 established under s. 121.055(6), the State Community College
2667 System Optional Retirement Program as established under s.
2668 121.051(2)(c), or the State University System Optional
2669 Retirement Program established under s. 121.35.
2670
2671 The term does not include any member participating in the
2672 Deferred Retirement Option Program established under s.
2673 121.091(13), a retiree of a state-administered retirement system
2674 initially reemployed on or after July 1, 2010, or a mandatory
2675 participant of the State University System Optional Retirement
2676 Program established under s. 121.35.
2677 (e)(h) “Employer” means an employer, as defined in s.
2678 121.021, of an eligible employee.
2679 (f) “Florida Retirement System Investment Plan” or
2680 “investment plan” means the defined contribution program of the
2681 Florida Retirement System established under this part.
2682 (g) “Florida Retirement System Pension Plan” or pension
2683 plan” means the defined benefit program of the Florida
2684 Retirement System administered under part I of this chapter.
2685 (i) “Optional retirement program” or “optional program”
2686 means the Public Employee Optional Retirement Program
2687 established under this part.
2688 (h)(j) “Member” or “employee” “participant” means an
2689 eligible employee who is enrolled enrolls in the investment plan
2690 optional program as provided in subsection (4), or a terminated
2691 Deferred Retirement Option Program member participant as
2692 described in subsection (21), or a beneficiary or alternate
2693 payee of a member or employee.
2694 (i) “Member contributions” or “employee contributions” mean
2695 the sum of all amounts deducted from the salary of a member by
2696 his or her employer in accordance with s. 121.71(2) and credited
2697 to his or her individual account in the investment plan, plus
2698 any earnings on such amounts and any contributions specified in
2699 paragraph (5)(e).
2700 (j)(k) “Retiree” means a former member participant of the
2701 investment plan optional retirement program who has terminated
2702 employment and has taken a distribution of vested employer or
2703 employee contributions as provided in s. 121.591, except for a
2704 mandatory distribution of a de minimis account authorized by the
2705 state board.
2706 (k)(l) “Vested” or “vesting” means the guarantee that a
2707 member participant is eligible to receive a retirement benefit
2708 upon completion of the required years of service under the
2709 investment plan optional retirement program.
2710 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
2711 BENEFITS.—
2712 (a) Participation in the Public Employee Optional
2713 Retirement Program is limited to eligible employees.
2714 Participation in the optional retirement program is in lieu of
2715 participation in the defined benefit program of the Florida
2716 Retirement System.
2717 (a)(b) An eligible employee who is employed in a regularly
2718 established position by a state employer on June 1, 2002; by a
2719 district school board employer on September 1, 2002; or by a
2720 local employer on December 1, 2002, and who is a member of the
2721 pension plan defined benefit retirement program of the Florida
2722 Retirement System at the time of his or her election to enroll
2723 participate in the investment plan Public Employee Optional
2724 Retirement Program shall retain all retirement service credit
2725 earned under the pension plan defined benefit retirement program
2726 of the Florida Retirement System as credited under the Florida
2727 Retirement System and is shall be entitled to a deferred benefit
2728 upon termination, if eligible under the system. However,
2729 election to enroll participate in the investment plan Public
2730 Employee Optional Retirement Program terminates the active
2731 membership of the employee in the pension plan defined benefit
2732 program of the Florida Retirement System, and the service of a
2733 member of participant in the investment plan is Public Employee
2734 Optional Retirement Program shall not be creditable under the
2735 pension plan defined benefit retirement program of the Florida
2736 Retirement System for purposes of benefit accrual but is
2737 creditable shall be credited for purposes of vesting.
2738 (b)(c)1. Notwithstanding paragraph (a), an (b), each
2739 eligible employee who elects to enroll participate in the
2740 investment plan Public Employee Optional Retirement Program and
2741 establishes one or more individual member participant accounts
2742 under the optional program may elect to transfer to the
2743 investment plan optional program a sum representing the present
2744 value of the employee’s accumulated benefit obligation under the
2745 pension plan defined benefit retirement program of the Florida
2746 Retirement System. Upon such transfer, all service credit
2747 previously earned under the pension plan is defined benefit
2748 program of the Florida Retirement System shall be nullified for
2749 purposes of entitlement to a future benefit under the pension
2750 plan defined benefit program of the Florida Retirement System. A
2751 member may not transfer participant is precluded from
2752 transferring the accumulated benefit obligation balance from the
2753 pension plan after the time defined benefit program upon the
2754 expiration of the period for enrolling afforded to enroll in the
2755 investment plan has expired optional program.
2756 1.2. For purposes of this subsection, the present value of
2757 the member’s accumulated benefit obligation is based upon the
2758 member’s estimated creditable service and estimated average
2759 final compensation under the pension plan defined benefit
2760 program, subject to recomputation under subparagraph 2. 3. For
2761 state employees enrolling under subparagraph (4)(a)1., initial
2762 estimates shall will be based upon creditable service and
2763 average final compensation as of midnight on June 30, 2002; for
2764 district school board employees enrolling under subparagraph
2765 (4)(b)1., initial estimates shall will be based upon creditable
2766 service and average final compensation as of midnight on
2767 September 30, 2002; and for local government employees enrolling
2768 under subparagraph (4)(c)1., initial estimates shall will be
2769 based upon creditable service and average final compensation as
2770 of midnight on December 31, 2002. The dates respectively
2771 specified are above shall be construed as the “estimate date”
2772 for these employees. The actuarial present value of the
2773 employee’s accumulated benefit obligation shall be based on the
2774 following:
2775 a. The discount rate and other relevant actuarial
2776 assumptions used to value the Florida Retirement System Trust
2777 Fund at the time the amount to be transferred is determined,
2778 consistent with the factors provided in sub-subparagraphs b. and
2779 c.
2780 b. A benefit commencement age, based on the member’s
2781 estimated creditable service as of the estimate date. The
2782 benefit commencement age is shall be the younger of the
2783 following, but may shall not be younger than the member’s age as
2784 of the estimate date:
2785 (I) Age 62; or
2786 (II) The age the member would attain if the member
2787 completed 30 years of service with an employer, assuming the
2788 member worked continuously from the estimate date, and
2789 disregarding any vesting requirement that would otherwise apply
2790 under the pension plan defined benefit program of the Florida
2791 Retirement System.
2792 c. For members of the Special Risk Class, and for members
2793 of the Special Risk Administrative Support Class entitled to
2794 retain the special risk normal retirement date, the benefit
2795 commencement age is shall be the younger of the following, but
2796 may shall not be younger than the member’s age as of the
2797 estimate date:
2798 (I) Age 55 or, for members enrolled on or after July 1,
2799 2011, age 62; or
2800 (II) The age the member would attain if the member
2801 completed 25 years of service with an employer, or, for members
2802 enrolled on or after July 1, 2011, 30 years of service with an
2803 employer, assuming the member worked continuously from the
2804 estimate date, and disregarding any vesting requirement that
2805 would otherwise apply under the pension plan defined benefit
2806 program of the Florida Retirement System.
2807 d. The calculation must shall disregard vesting
2808 requirements and early retirement reduction factors that would
2809 otherwise apply under the pension plan defined benefit
2810 retirement program.
2811 2.3. For each member participant who elects to transfer
2812 moneys from the pension plan defined benefit program to his or
2813 her account in the investment plan optional program, the
2814 division shall recompute the amount transferred under
2815 subparagraph 1. within 2. not later than 60 days after the
2816 actual transfer of funds based upon the member’s participant’s
2817 actual creditable service and actual final average compensation
2818 as of the initial date of participation in the investment plan
2819 optional program. If the recomputed amount differs from the
2820 amount transferred under subparagraph 2. by $10 or more, the
2821 division shall:
2822 a. Transfer, or cause to be transferred, from the Florida
2823 Retirement System Trust Fund to the member’s participant’s
2824 account in the optional program the excess, if any, of the
2825 recomputed amount over the previously transferred amount
2826 together with interest from the initial date of transfer to the
2827 date of transfer under this subparagraph, based upon the
2828 effective annual interest equal to the assumed return on the
2829 actuarial investment which was used in the most recent actuarial
2830 valuation of the system, compounded annually.
2831 b. Transfer, or cause to be transferred, from the member’s
2832 participant’s account to the Florida Retirement System Trust
2833 Fund the excess, if any, of the previously transferred amount
2834 over the recomputed amount, together with interest from the
2835 initial date of transfer to the date of transfer under this
2836 subparagraph, based upon 6 percent effective annual interest,
2837 compounded annually, pro rata based on the member’s
2838 participant’s allocation plan.
2839 3. If contribution adjustments are made as a result of
2840 employer errors or corrections, including plan corrections,
2841 following recomputation of the amount transferred under
2842 subparagraph 1., the member is entitled to the additional
2843 contributions or is responsible for returning any excess
2844 contributions resulting from the correction. However, the return
2845 of such erroneous excess pretax contribution by the plan must be
2846 made within the period allowed by the Internal Revenue Service.
2847 The present value of the member’s accumulated benefit obligation
2848 may not be recalculated.
2849 4. As directed by the member participant, the state board
2850 shall transfer or cause to be transferred the appropriate
2851 amounts to the designated accounts within. The board shall
2852 establish transfer procedures by rule, but the actual transfer
2853 shall not be later than 30 days after the effective date of the
2854 member’s participation in the investment plan optional program
2855 unless the major financial markets for securities available for
2856 a transfer are seriously disrupted by an unforeseen event that
2857 which also causes the suspension of trading on any national
2858 securities exchange in the country where the securities are were
2859 issued. In that event, the such 30-day period of time may be
2860 extended by a resolution of the state board trustees. Transfers
2861 are not commissionable or subject to other fees and may be in
2862 the form of securities or cash, as determined by the state
2863 board. Such securities are shall be valued as of the date of
2864 receipt in the member’s participant’s account.
2865 5. If the state board or the division receives notification
2866 from the United States Internal Revenue Service that this
2867 paragraph or any portion of this paragraph will cause the
2868 retirement system, or a portion thereof, to be disqualified for
2869 tax purposes under the Internal Revenue Code, then the portion
2870 that will cause the disqualification does not apply. Upon such
2871 notice, the state board and the division shall notify the
2872 presiding officers of the Legislature.
2873 (4) PARTICIPATION; ENROLLMENT.—
2874 (a)1. Between June 1, 2001, and February 28, 2003, eligible
2875 employees were provided a 90-day period to elect membership in
2876 the investment plan. An employee who failed to elect the
2877 investment plan during the election period remained in the
2878 pension plan. An eligible employee who was employed in a
2879 regularly established position during the election period was
2880 also provided one opportunity to change plans, as provided under
2881 paragraph (e). With respect to an eligible employee who did not
2882 participate in the initial election period and an eligible
2883 employee who is initially employed in a regularly established
2884 position after the close of the initial election period but
2885 before June 30, 2011, the on June 1, 2002, by a state employer:
2886 a. Any such employee may elect to participate in the Public
2887 Employee Optional Retirement Program in lieu of retaining his or
2888 her membership in the defined benefit program of the Florida
2889 Retirement System. The election must be made in writing or by
2890 electronic means and must be filed with the third-party
2891 administrator by August 31, 2002, or, in the case of an active
2892 employee who is on a leave of absence on April 1, 2002, by the
2893 last business day of the 5th month following the month the leave
2894 of absence concludes. This election is irrevocable, except as
2895 provided in paragraph (e). Upon making such election, the
2896 employee shall be enrolled as a participant of the Public
2897 Employee Optional Retirement Program, the employee’s membership
2898 in the Florida Retirement System shall be governed by the
2899 provisions of this part, and the employee’s membership in the
2900 defined benefit program of the Florida Retirement System shall
2901 terminate. The employee’s enrollment in the Public Employee
2902 Optional Retirement Program shall be effective the first day of
2903 the month for which a full month’s employer contribution is made
2904 to the optional program.
2905 b. Any such employee who fails to elect to participate in
2906 the Public Employee Optional Retirement Program within the
2907 prescribed time period is deemed to have elected to retain
2908 membership in the defined benefit program of the Florida
2909 Retirement System, and the employee’s option to elect to
2910 participate in the optional program is forfeited.
2911 2. With respect to employees who become eligible to
2912 participate in the Public Employee Optional Retirement Program
2913 by reason of employment in a regularly established position with
2914 a state employer commencing after April 1, 2002:
2915 a. Any such employee shall, by default, be enrolled in the
2916 pension plan defined benefit retirement program of the Florida
2917 Retirement System at the commencement of employment, and may, by
2918 the last business day of the 5th month following the employee’s
2919 month of hire, elect to enroll participate in the investment
2920 plan Public Employee Optional Retirement Program. The employee’s
2921 election must be made in writing or by electronic means and must
2922 be filed with the third-party administrator. The election to
2923 enroll participate in the investment plan optional program is
2924 irrevocable, except as provided in paragraph (e).
2925 1.b. If the employee files such election within the
2926 prescribed time period, enrollment in the investment plan is
2927 optional program shall be effective on the first day of
2928 employment. The employer and employee retirement contributions
2929 paid through the month of the employee plan change shall be
2930 transferred to the investment plan optional program, and,
2931 effective the first day of the next month, the employer and
2932 employee must shall pay the applicable contributions based on
2933 the employee membership class in the plan optional program.
2934 2.c. An Any such employee who fails to elect to enroll
2935 participate in the investment plan Public Employee Optional
2936 Retirement Program within the prescribed time period is deemed
2937 to have elected to retain membership in the pension plan defined
2938 benefit program of the Florida Retirement System, and the
2939 employee’s option to elect to enroll participate in the
2940 investment plan optional program is forfeited.
2941 3. With respect to employees who become eligible to enroll
2942 participate in the investment plan Public Employee Optional
2943 Retirement Program pursuant to s. 121.051(2)(c)3. or s.
2944 121.35(3)(i), the any such employee may elect to enroll
2945 participate in the investment plan Public Employee Optional
2946 Retirement Program in lieu of retaining his or her participation
2947 in the State Community College System Optional Retirement
2948 Program or the State University System Optional Retirement
2949 Program. The election must be made in writing or by electronic
2950 means and must be filed with the third-party administrator. This
2951 election is irrevocable, except as provided in paragraph (e).
2952 Upon making such election, the employee shall be enrolled in as
2953 a participant of the investment plan Public Employee Optional
2954 Retirement Program, the employee’s membership in the Florida
2955 Retirement System shall be governed by the provisions of this
2956 part, and the employee’s participation in the State Community
2957 College System Optional Retirement Program or the State
2958 University System Optional Retirement Program shall terminate.
2959 The employee’s enrollment in the investment plan is Public
2960 Employee Optional Retirement Program shall be effective on the
2961 first day of the month for which a full month’s of employee
2962 contributions are employer contribution is made to the
2963 investment plan optional program.
2964 4. For purposes of this paragraph, “state employer” means
2965 any agency, board, branch, commission, community college,
2966 department, institution, institution of higher education, or
2967 water management district of the state, which participates in
2968 the Florida Retirement System for the benefit of certain
2969 employees.
2970 (b)1. With respect to an eligible employee who is employed
2971 in a regularly established position on September 1, 2002, by a
2972 district school board employer:
2973 a. Any such employee may elect to participate in the Public
2974 Employee Optional Retirement Program in lieu of retaining his or
2975 her membership in the defined benefit program of the Florida
2976 Retirement System. The election must be made in writing or by
2977 electronic means and must be filed with the third-party
2978 administrator by November 30, or, in the case of an active
2979 employee who is on a leave of absence on July 1, 2002, by the
2980 last business day of the 5th month following the month the leave
2981 of absence concludes. This election is irrevocable, except as
2982 provided in paragraph (e). Upon making such election, the
2983 employee shall be enrolled as a participant of the Public
2984 Employee Optional Retirement Program, the employee’s membership
2985 in the Florida Retirement System shall be governed by the
2986 provisions of this part, and the employee’s membership in the
2987 defined benefit program of the Florida Retirement System shall
2988 terminate. The employee’s enrollment in the Public Employee
2989 Optional Retirement Program shall be effective the first day of
2990 the month for which a full month’s employer contribution is made
2991 to the optional program.
2992 b. Any such employee who fails to elect to participate in
2993 the Public Employee Optional Retirement Program within the
2994 prescribed time period is deemed to have elected to retain
2995 membership in the defined benefit program of the Florida
2996 Retirement System, and the employee’s option to elect to
2997 participate in the optional program is forfeited.
2998 2. With respect to employees who become eligible to
2999 participate in the Public Employee Optional Retirement Program
3000 by reason of employment in a regularly established position with
3001 a district school board employer commencing after July 1, 2002:
3002 a. Any such employee shall, by default, be enrolled in the
3003 defined benefit retirement program of the Florida Retirement
3004 System at the commencement of employment, and may, by the last
3005 business day of the 5th month following the employee’s month of
3006 hire, elect to participate in the Public Employee Optional
3007 Retirement Program. The employee’s election must be made in
3008 writing or by electronic means and must be filed with the third
3009 party administrator. The election to participate in the optional
3010 program is irrevocable, except as provided in paragraph (e).
3011 b. If the employee files such election within the
3012 prescribed time period, enrollment in the optional program shall
3013 be effective on the first day of employment. The employer
3014 retirement contributions paid through the month of the employee
3015 plan change shall be transferred to the optional program, and,
3016 effective the first day of the next month, the employer shall
3017 pay the applicable contributions based on the employee
3018 membership class in the optional program.
3019 c. Any such employee who fails to elect to participate in
3020 the Public Employee Optional Retirement Program within the
3021 prescribed time period is deemed to have elected to retain
3022 membership in the defined benefit program of the Florida
3023 Retirement System, and the employee’s option to elect to
3024 participate in the optional program is forfeited.
3025 3. For purposes of this paragraph, “district school board
3026 employer” means any district school board that participates in
3027 the Florida Retirement System for the benefit of certain
3028 employees, or a charter school or charter technical career
3029 center that participates in the Florida Retirement System as
3030 provided in s. 121.051(2)(d).
3031 (c)1. With respect to an eligible employee who is employed
3032 in a regularly established position on December 1, 2002, by a
3033 local employer:
3034 a. Any such employee may elect to participate in the Public
3035 Employee Optional Retirement Program in lieu of retaining his or
3036 her membership in the defined benefit program of the Florida
3037 Retirement System. The election must be made in writing or by
3038 electronic means and must be filed with the third-party
3039 administrator by February 28, 2003, or, in the case of an active
3040 employee who is on a leave of absence on October 1, 2002, by the
3041 last business day of the 5th month following the month the leave
3042 of absence concludes. This election is irrevocable, except as
3043 provided in paragraph (e). Upon making such election, the
3044 employee shall be enrolled as a participant of the Public
3045 Employee Optional Retirement Program, the employee’s membership
3046 in the Florida Retirement System shall be governed by the
3047 provisions of this part, and the employee’s membership in the
3048 defined benefit program of the Florida Retirement System shall
3049 terminate. The employee’s enrollment in the Public Employee
3050 Optional Retirement Program shall be effective the first day of
3051 the month for which a full month’s employer contribution is made
3052 to the optional program.
3053 b. Any such employee who fails to elect to participate in
3054 the Public Employee Optional Retirement Program within the
3055 prescribed time period is deemed to have elected to retain
3056 membership in the defined benefit program of the Florida
3057 Retirement System, and the employee’s option to elect to
3058 participate in the optional program is forfeited.
3059 2. With respect to employees who become eligible to
3060 participate in the Public Employee Optional Retirement Program
3061 by reason of employment in a regularly established position with
3062 a local employer commencing after October 1, 2002:
3063 a. Any such employee shall, by default, be enrolled in the
3064 defined benefit retirement program of the Florida Retirement
3065 System at the commencement of employment, and may, by the last
3066 business day of the 5th month following the employee’s month of
3067 hire, elect to participate in the Public Employee Optional
3068 Retirement Program. The employee’s election must be made in
3069 writing or by electronic means and must be filed with the third
3070 party administrator. The election to participate in the optional
3071 program is irrevocable, except as provided in paragraph (e).
3072 b. If the employee files such election within the
3073 prescribed time period, enrollment in the optional program shall
3074 be effective on the first day of employment. The employer
3075 retirement contributions paid through the month of the employee
3076 plan change shall be transferred to the optional program, and,
3077 effective the first day of the next month, the employer shall
3078 pay the applicable contributions based on the employee
3079 membership class in the optional program.
3080 c. Any such employee who fails to elect to participate in
3081 the Public Employee Optional Retirement Program within the
3082 prescribed time period is deemed to have elected to retain
3083 membership in the defined benefit program of the Florida
3084 Retirement System, and the employee’s option to elect to
3085 participate in the optional program is forfeited.
3086 3. For purposes of this paragraph, “local employer” means
3087 any employer not included in paragraph (a) or paragraph (b).
3088 (b)(d) Contributions available for self-direction by a
3089 member participant who has not selected one or more specific
3090 investment products shall be allocated as prescribed by the
3091 state board. The third-party administrator shall notify the
3092 member any such participant at least quarterly that the member
3093 participant should take an affirmative action to make an asset
3094 allocation among the investment plan optional program products.
3095 (c) On or after July 1, 2011, a member of the pension plan
3096 who obtains a refund of employee contributions retains his or
3097 her prior plan choice upon return to employment in a regularly
3098 established position with a participating employer.
3099 (d) A member of the investment plan who takes a
3100 distribution of any contributions from his investment plan
3101 account is considered a retiree. Upon reemployment in a
3102 regularly established position with a participating employer,
3103 the member returns as a new hire and, if applicable, may
3104 participate in the Florida Retirement System.
3105 (e) After the period during which an eligible employee had
3106 the choice to elect the pension plan defined benefit program or
3107 the investment plan optional retirement program, or the month
3108 following the receipt of the eligible employee’s plan election,
3109 if sooner, the employee shall have one opportunity, at the
3110 employee’s discretion, to choose to move from the pension plan
3111 defined benefit program to the investment plan optional
3112 retirement program or from the investment plan optional
3113 retirement program to the pension plan defined benefit program.
3114 Eligible employees may elect to move between Florida Retirement
3115 System programs only if they are earning service credit in an
3116 employer-employee relationship consistent with s.
3117 121.021(17)(b), excluding leaves of absence without pay.
3118 Effective July 1, 2005, such elections are effective on the
3119 first day of the month following the receipt of the election by
3120 the third-party administrator and are not subject to the
3121 requirements regarding an employer-employee relationship or
3122 receipt of contributions for the eligible employee in the
3123 effective month, except when the election is received by the
3124 third-party administrator. This paragraph is contingent upon
3125 receiving approval from the Internal Revenue Service to include
3126 for including the choice described herein within the programs
3127 offered by the Florida Retirement System.
3128 1. If the employee chooses to move to the investment plan
3129 optional retirement program, the applicable provisions of
3130 subsection (3) this section shall govern the transfer.
3131 2. If the employee chooses to move to the pension plan
3132 defined benefit program, the employee must transfer from his or
3133 her investment plan optional retirement program account, and
3134 from other employee moneys as necessary, a sum representing the
3135 present value of that employee’s accumulated benefit obligation
3136 immediately following the time of such movement, determined
3137 assuming that attained service equals the sum of service in the
3138 pension plan defined benefit program and service in the
3139 investment plan optional retirement program. Benefit
3140 commencement occurs on the first date the employee is eligible
3141 for unreduced benefits, using the discount rate and other
3142 relevant actuarial assumptions that were used to value the
3143 pension defined benefit plan liabilities in the most recent
3144 actuarial valuation. For any employee who, at the time of the
3145 second election, already maintains an accrued benefit amount in
3146 the pension plan defined benefit program, the then-present value
3147 of the accrued benefit shall be deemed part of the required
3148 transfer amount. The division shall ensure that the transfer sum
3149 is prepared using a formula and methodology certified by an
3150 enrolled actuary. A refund of any employee contributions or
3151 additional member payments made which exceed the employee
3152 contributions that would have accrued had the member remained in
3153 the pension plan and not transferred to the investment plan is
3154 not permitted.
3155 3. Notwithstanding subparagraph 2., an employee who chooses
3156 to move to the pension plan defined benefit program and who
3157 became eligible to participate in the optional retirement
3158 program by reason of employment in a regularly established
3159 position with a state employer after June 1, 2002; a district
3160 school board employer after September 1, 2002; or a local
3161 employer after December 1, 2002, must transfer from his or her
3162 investment plan optional retirement program account, and from
3163 other employee moneys as necessary, a sum representing the
3164 employee’s actuarial accrued liability. A refund of any employee
3165 contributions or additional participant payments made which
3166 exceed the employee contributions that would have accrued had
3167 the member remained in the pension plan and not transferred to
3168 the investment plan is not permitted.
3169 4. An employee’s ability to transfer from the pension plan
3170 defined benefit program to the investment plan optional
3171 retirement program pursuant to paragraphs (a) and (b) (a)-(d),
3172 and the ability of a current employee to have an option to later
3173 transfer back into the pension plan defined benefit program
3174 under subparagraph 2., shall be deemed a significant system
3175 amendment. Pursuant to s. 121.031(4), any resulting unfunded
3176 liability arising from actual original transfers from the
3177 pension plan defined benefit program to the investment plan
3178 optional program must be amortized within 30 plan years as a
3179 separate unfunded actuarial base independent of the reserve
3180 stabilization mechanism defined in s. 121.031(3)(f). For the
3181 first 25 years, a direct amortization payment may not be
3182 calculated for this base. During this 25-year period, the
3183 separate base shall be used to offset the impact of employees
3184 exercising their second program election under this paragraph.
3185 It is the intent of the Legislature that the actuarial funded
3186 status of the pension plan defined benefit program not be
3187 affected by such second program elections in any significant
3188 manner, after due recognition of the separate unfunded actuarial
3189 base. Following the initial 25-year period, any remaining
3190 balance of the original separate base shall be amortized over
3191 the remaining 5 years of the required 30-year amortization
3192 period.
3193 5. If the employee chooses to transfer from the investment
3194 plan optional retirement program to the pension plan defined
3195 benefit program and retains an excess account balance in the
3196 investment plan optional program after satisfying the buy-in
3197 requirements under this paragraph, the excess may not be
3198 distributed until the member retires from the pension plan
3199 defined benefit program. The excess account balance may be
3200 rolled over to the pension plan defined benefit program and used
3201 to purchase service credit or upgrade creditable service in that
3202 program.
3203 (f) On or after July 1, 2011, a member of the pension plan
3204 who obtains a refund of employee contributions retains his or
3205 her prior plan choice upon return to employment in a regularly
3206 established position with a participating employer.
3207 (g) A member of the investment plan who takes a
3208 distribution of any contributions from his or her investment
3209 plan account is considered a retiree. Upon reemployment in a
3210 regularly established position with a participating employer,
3211 the member returns as a new hire and, if applicable, may
3212 participate in the Florida Retirement System.
3213 (5) CONTRIBUTIONS.—
3214 (a) The Each employer and employee shall make the required
3215 contributions to the investment plan based on a percentage of
3216 the employee’s gross monthly compensation contribute on behalf
3217 of each participant in the Public Employee optional retirement
3218 Program, as provided in part III of this chapter.
3219 (b) Employee contributions shall be paid on a pretax basis,
3220 as provided in s. 121.71(2).
3221 (c) The state board, acting as plan fiduciary, shall ensure
3222 that all plan assets are held in a trust, pursuant to s. 401 of
3223 the Internal Revenue Code. The fiduciary shall ensure that said
3224 contributions are allocated as follows:
3225 1. The employer and employee portion earmarked for member
3226 participant accounts shall be used to purchase interests in the
3227 appropriate investment vehicles for the accounts of each
3228 participant as specified by the member participant, or in
3229 accordance with paragraph (4)(b) (4)(d).
3230 2. The employer portion earmarked for administrative and
3231 educational expenses shall be transferred to the state board.
3232 3. The employer portion earmarked for disability benefits
3233 shall be transferred to the department.
3234 (d)(b) The third-party administrator is Employers are
3235 responsible for monitoring and notifying employers of the
3236 participants regarding maximum contribution levels allowed for
3237 members permitted under the Internal Revenue Code. If a member
3238 participant contributes to any other tax-deferred plan, the
3239 member he or she is responsible for ensuring that total
3240 contributions made to the investment plan optional program and
3241 to any other such plan do not exceed federally permitted
3242 maximums.
3243 (e)(c) The investment plan Public Employee Optional
3244 Retirement Program may accept for deposit into member
3245 participant accounts contributions in the form of rollovers or
3246 direct trustee-to-trustee transfers by or on behalf of members
3247 participants, reasonably determined by the state board to be
3248 eligible for rollover or transfer to the investment plan
3249 optional retirement program pursuant to the Internal Revenue
3250 Code, if such contributions are made in accordance with rules as
3251 may be adopted by the board. Such contributions must shall be
3252 accounted for in accordance with any applicable Internal Revenue
3253 Code requirements and rules of the state board.
3254 (6) VESTING REQUIREMENTS.—
3255 (a) A member is fully and immediately vested in all
3256 employee contributions paid to the investment plan as provided
3257 in s. 121.72(2), plus interest and earnings thereon and less
3258 investment fees and administrative charges.
3259 (b)(a)1. With respect to employer contributions paid on
3260 behalf of a member of the participant to the investment plan
3261 optional retirement program, plus interest and earnings thereon
3262 and less investment fees and administrative charges, a member
3263 who voluntarily elected to enroll in the investment plan before
3264 July 1, 2011, or an eligible employee initially enrolled in the
3265 Florida Retirement System before July 1, 2011, who has the
3266 option to voluntarily elect to enroll in the investment plan,
3267 participant is vested after completing 1 work year with an
3268 employer, including any service while the employee participant
3269 was a member of the pension plan defined benefit program or an
3270 optional retirement program authorized under s. 121.051(2)(c),
3271 or s. 121.055(6), or s. 121.35.
3272 2. With respect to employer contributions paid on behalf of
3273 the member of the investment plan, plus interest and earnings
3274 thereon and less investment fees and administrative charges, an
3275 employee initially enrolled in the Florida Retirement System on
3276 or after July 1, 2011, is vested according to the following
3277 schedule:
3278 a. Upon completion of 1 year of service.................20%
3279 b. Upon completion of 2 years of service................40%
3280 c. Upon completion of 3 years of service................60%
3281 d. Upon completion of 4 years of service................80%
3282 e. Upon completion of 5 or more years of service.......100%
3283
3284 Years of service includes any service completed while the
3285 employee was a member of the pension plan or an optional
3286 retirement program authorized under s. 121.051(2)(c), s.
3287 121.055(6), or s. 121.35.
3288 3.2. If the member participant terminates employment before
3289 satisfying the vesting requirements, the nonvested accumulation
3290 must be transferred from the member’s participant’s accounts to
3291 the state board for deposit and investment by the state board in
3292 the suspense account created within the Florida Public Employee
3293 Optional Retirement System Investment Plan Program Trust Fund.
3294 If the terminated member participant is reemployed as an
3295 eligible employee within 5 years, the state board shall transfer
3296 to the member’s participant’s account any amount previously
3297 transferred from the member’s participant’s accounts to the
3298 suspense account, plus actual earnings on such amount while in
3299 the suspense account.
3300 (c)(b)1. With respect to amounts contributed by an employer
3301 and transferred from the pension plan defined benefit program to
3302 the investment plan program, plus interest and earnings, and
3303 less investment fees and administrative charges, a member
3304 participant shall be vested in the amount transferred upon
3305 meeting the service requirements for the member’s participant’s
3306 membership class as set forth in s. 121.021(29). The third-party
3307 administrator shall account for such amounts for each member
3308 participant. The division shall notify the member participant
3309 and the third-party administrator when the member participant
3310 has satisfied the vesting period for Florida Retirement System
3311 purposes.
3312 2. If the member participant terminates employment before
3313 satisfying the vesting requirements, the nonvested employer
3314 accumulation must be transferred from the member’s participant’s
3315 accounts to the state board for deposit and investment by the
3316 state board in the suspense account created within the Florida
3317 Public Employee Optional Retirement System Investment Plan
3318 Program Trust Fund. If the terminated member participant is
3319 reemployed as an eligible employee within 5 years, the state
3320 board shall transfer to the member’s participant’s account any
3321 amount previously transferred from the member’s participant’s
3322 accounts to the suspense account, plus the actual earnings on
3323 such amount while in the suspense account.
3324 (d)(c) Any nonvested accumulations transferred from a
3325 member’s participant’s account to the state board’s suspense
3326 account, including any accompanying service credit, shall be
3327 forfeited by the member participant if the member participant is
3328 not reemployed as an eligible employee within 5 years after
3329 termination.
3330 (e) If the member elects to receive any of his or her
3331 vested employer or employee contributions upon termination of
3332 employment as defined in s. 121.021, except for a mandatory
3333 distribution of a de minimis account authorized by the state
3334 board or a minimum required distribution provided by s.
3335 401(a)(9) of the Internal Revenue Code, the employee shall
3336 forfeit all nonvested employer contributions and accompanying
3337 service credit paid on behalf of the employee to the investment
3338 plan.
3339 (7) BENEFITS.—Under the investment plan the normal
3340 retirement date is the date on which a member attains age 62 or
3341 completes 5 years of service, whichever occurs later. Plan
3342 benefits must Public Employee Optional Retirement program:
3343 (a) Benefits shall Be provided in accordance with s. 401(a)
3344 of the Internal Revenue Code.
3345 (b) Benefits shall Accrue in individual accounts that are
3346 member-directed participant-directed, portable, and funded by
3347 employer and employee contributions and earnings thereon.
3348 (c) Benefits shall Be payable in accordance with the
3349 provisions of s. 121.591.
3350 (8) ADMINISTRATION OF PLAN PROGRAM.—
3351 (a) The investment plan optional retirement program shall
3352 be administered by the state board and affected employers. The
3353 state board may require oaths, by affidavit or otherwise, and
3354 acknowledgments from persons in connection with the
3355 administration of its statutory duties and responsibilities for
3356 the plan this program. An oath, by affidavit or otherwise, may
3357 not be required of an employee participant at the time of
3358 enrollment. For members enrolled before July 1, 2011,
3359 acknowledgment of an employee’s election to enroll participate
3360 in the plan may program shall be no greater than necessary to
3361 confirm the employee’s election. The state board shall adopt
3362 rules to carry out its statutory duties with respect to
3363 administering the investment plan optional retirement program,
3364 including establishing the roles and responsibilities of
3365 affected state, local government, and education-related
3366 employers, the state board, the department, and third-party
3367 contractors. The department shall adopt rules necessary to
3368 administer the investment plan optional program in coordination
3369 with the pension plan defined benefit program and the disability
3370 benefits available under the investment plan optional program.
3371 (a)(b)1. The state board shall select and contract with a
3372 one third-party administrator to provide administrative services
3373 if those services cannot be competitively and contractually
3374 provided by the division of Retirement within the Department of
3375 Management Services. With the approval of the state board, the
3376 third-party administrator may subcontract with other
3377 organizations or individuals to provide components of the
3378 administrative services. As a cost of administration, the state
3379 board may compensate any such contractor for its services, in
3380 accordance with the terms of the contract, as is deemed
3381 necessary or proper by the board. The third-party administrator
3382 may not be an approved provider or be affiliated with an
3383 approved provider.
3384 2. These administrative services may include, but are not
3385 limited to, enrollment of eligible employees, collection of
3386 employer and employee contributions, disbursement of such
3387 contributions to approved providers in accordance with the
3388 allocation directions of members participants; services relating
3389 to consolidated billing; individual and collective recordkeeping
3390 and accounting; asset purchase, control, and safekeeping; and
3391 direct disbursement of funds to and from the third-party
3392 administrator, the division, the state board, employers, plan
3393 members participants, approved providers, and beneficiaries.
3394 This section does not prevent or prohibit a bundled provider
3395 from providing any administrative or customer service, including
3396 accounting and administration of individual member participant
3397 benefits and contributions; individual member participant
3398 recordkeeping; asset purchase, control, and safekeeping; direct
3399 execution of the member’s participant’s instructions as to asset
3400 and contribution allocation; calculation of daily net asset
3401 values; direct access to member participant account information;
3402 or periodic reporting to members participants, at least
3403 quarterly, on account balances and transactions, if these
3404 services are authorized by the state board as part of the
3405 contract.
3406 (b)1.3. The state board shall select and contract with one
3407 or more organizations to provide educational services. With
3408 approval of the state board, the organizations may subcontract
3409 with other organizations or individuals to provide components of
3410 the educational services. As a cost of administration, the state
3411 board may compensate any such contractor for its services in
3412 accordance with the terms of the contract, as is deemed
3413 necessary or proper by the board. The education organization may
3414 not be an approved provider or be affiliated with an approved
3415 provider.
3416 2.4. Educational services shall be designed by the state
3417 board and department to assist employers, eligible employees,
3418 members participants, and beneficiaries in order to maintain
3419 compliance with United States Department of Labor regulations
3420 under s. 404(c) of the Employee Retirement Income Security Act
3421 of 1974, and to assist employees in understanding their choice
3422 of defined benefit or defined contribution retirement program,
3423 and, if applicable, the choice between the pension plan and the
3424 investment plan alternatives. Educational services include, but
3425 are not limited to, disseminating educational materials;
3426 providing retirement planning education; explaining the pension
3427 differences between the defined benefit retirement plan and the
3428 investment defined contribution retirement plan; and offering
3429 financial planning guidance on matters such as investment
3430 diversification, investment risks, investment costs, and asset
3431 allocation. An approved provider may also provide educational
3432 information, including retirement planning and investment
3433 allocation information concerning its products and services.
3434 (c)1. In evaluating and selecting a third-party
3435 administrator, the state board shall establish criteria for
3436 evaluating under which it shall consider the relative
3437 capabilities and qualifications of each proposed administrator.
3438 In developing such criteria, the state board shall consider:
3439 a. The administrator’s demonstrated experience in providing
3440 administrative services to public or private sector retirement
3441 systems.
3442 b. The administrator’s demonstrated experience in providing
3443 daily valued recordkeeping for investment to defined
3444 contribution plans.
3445 c. The administrator’s ability and willingness to
3446 coordinate its activities with the Florida Retirement System
3447 employers, the state board, and the division, and to supply to
3448 such employers, the board, and the division the information and
3449 data they require, including, but not limited to, monthly
3450 management reports, quarterly member participant reports, and ad
3451 hoc reports requested by the department or state board.
3452 d. The cost-effectiveness and levels of the administrative
3453 services provided.
3454 e. The administrator’s ability to interact with the members
3455 participants, the employers, the state board, the division, and
3456 the providers; the means by which members participants may
3457 access account information, direct investment of contributions,
3458 make changes to their accounts, transfer moneys between
3459 available investment vehicles, and transfer moneys between
3460 investment products; and any fees that apply to such activities.
3461 f. Any other factor deemed necessary by the Trustees of the
3462 state board of Administration.
3463 2. In evaluating and selecting an educational provider, the
3464 state board shall establish criteria under which it shall
3465 consider the relative capabilities and qualifications of each
3466 proposed educational provider. In developing such criteria, the
3467 board shall consider:
3468 a. Demonstrated experience in providing educational
3469 services to public or private sector retirement systems.
3470 b. Ability and willingness to coordinate its activities
3471 with the Florida Retirement System employers, the state board,
3472 and the division, and to supply to such employers, the board,
3473 and the division the information and data they require,
3474 including, but not limited to, reports on educational contacts.
3475 c. The cost-effectiveness and levels of the educational
3476 services provided.
3477 d. Ability to provide educational services via different
3478 media, including, but not limited to, the Internet, personal
3479 contact, seminars, brochures, and newsletters.
3480 e. Any other factor deemed necessary by the Trustees of the
3481 state board of Administration.
3482 3. The establishment of the criteria shall be solely within
3483 the discretion of the state board.
3484 (d) The state board shall develop the form and content of
3485 any contracts to be offered under the investment plan Public
3486 Employee Optional Retirement Program. In developing the its
3487 contracts, the state board shall must consider:
3488 1. The nature and extent of the rights and benefits to be
3489 afforded in relation to the required contributions required
3490 under the plan program.
3491 2. The suitability of the rights and benefits provided to
3492 be afforded and the interests of employers in the recruitment
3493 and retention of eligible employees.
3494 (e)1. The state board may contract with any consultant for
3495 professional services, including legal, consulting, accounting,
3496 and actuarial services, deemed necessary to implement and
3497 administer the investment plan optional program by the Trustees
3498 of the state board of Administration. The state board may enter
3499 into a contract with one or more vendors to provide low-cost
3500 investment advice to members participants, supplemental to
3501 education provided by the third-party administrator. All fees
3502 under any such contract shall be paid by those members
3503 participants who choose to use the services of the vendor.
3504 2. The department may contract with consultants for
3505 professional services, including legal, consulting, accounting,
3506 and actuarial services, deemed necessary to implement and
3507 administer the investment plan optional program in coordination
3508 with the pension plan defined benefit program of the Florida
3509 Retirement System. The department, in coordination with the
3510 state board, may enter into a contract with the third-party
3511 administrator in order to coordinate services common to the
3512 various programs within the Florida Retirement System.
3513 (f) The third-party administrator may shall not receive
3514 direct or indirect compensation from an approved provider,
3515 except as specifically provided for in the contract with the
3516 state board.
3517 (g) The state board shall receive and resolve member
3518 participant complaints against the investment plan program, the
3519 third-party administrator, or any plan program vendor or
3520 provider; shall resolve any conflict between the third-party
3521 administrator and an approved provider if such conflict
3522 threatens the implementation or administration of the plan
3523 program or the quality of services to employees; and may resolve
3524 any other conflicts. The third-party administrator shall retain
3525 all member participant records for at least 5 years for use in
3526 resolving any member participant conflicts. The state board, the
3527 third-party administrator, or a provider is not required to
3528 produce documentation or an audio recording to justify action
3529 taken with regard to a member participant if the action occurred
3530 5 or more years before the complaint is submitted to the state
3531 board. It is presumed that all action taken 5 or more years
3532 before the complaint is submitted was taken at the request of
3533 the member participant and with the member’s participant’s full
3534 knowledge and consent. To overcome this presumption, the member
3535 participant must present documentary evidence or an audio
3536 recording demonstrating otherwise.
3537 (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
3538 (a) The state board shall develop policy and procedures for
3539 selecting, evaluating, and monitoring the performance of
3540 approved providers and investment products to which employees
3541 may direct retirement contributions under the investment plan
3542 program. In accordance with such policy and procedures, the
3543 state board shall designate and contract for a number of
3544 investment products as determined by the state board. The state
3545 board shall also select one or more bundled providers, each of
3546 which whom may offer multiple investment options and related
3547 services, if when such an approach is determined by the state
3548 board to provide afford value to the members participants
3549 otherwise not available through individual investment products.
3550 Each approved bundled provider may offer investment options that
3551 provide members participants with the opportunity to invest in
3552 each of the following asset classes, to be composed of
3553 individual options that represent either a single asset class or
3554 a combination thereof: money markets, United States fixed
3555 income, United States equities, and foreign stock. The state
3556 board shall review and manage all educational materials,
3557 contract terms, fee schedules, and other aspects of the approved
3558 provider relationships to ensure that no provider is unduly
3559 favored or penalized by virtue of its status within the
3560 investment plan.
3561 (b) The state board shall consider investment options or
3562 products it considers appropriate to give members participants
3563 the opportunity to accumulate retirement benefits, subject to
3564 the following:
3565 1. The investment plan Public Employee Optional Retirement
3566 Program must offer a diversified mix of low-cost investment
3567 products that span the risk-return spectrum and may include a
3568 guaranteed account as well as investment products, such as
3569 individually allocated guaranteed and variable annuities, which
3570 meet the requirements of this subsection and combine the ability
3571 to accumulate investment returns with the option of receiving
3572 lifetime income consistent with the long-term retirement
3573 security of a pension plan and similar to the lifetime-income
3574 benefit provided by the Florida Retirement System.
3575 2. Investment options or products offered by the group of
3576 approved providers may include mutual funds, group annuity
3577 contracts, individual retirement annuities, interests in trusts,
3578 collective trusts, separate accounts, and other such financial
3579 instruments, and may include products that give members
3580 participants the option of committing their contributions for an
3581 extended time period in an effort to obtain returns higher than
3582 those that could be obtained from investment products offering
3583 full liquidity.
3584 3. The state board may shall not contract with a any
3585 provider that imposes a front-end, back-end, contingent, or
3586 deferred sales charge, or any other fee that limits or restricts
3587 the ability of members participants to select any investment
3588 product available in the investment plan optional program. This
3589 prohibition does not apply to fees or charges that are imposed
3590 on withdrawals from products that give members participants the
3591 option of committing their contributions for an extended time
3592 period in an effort to obtain returns higher than those that
3593 could be obtained from investment products offering full
3594 liquidity, provided that the product in question, net of all
3595 fees and charges, produces material benefits relative to other
3596 comparable products in the plan program offering full liquidity.
3597 4. Fees or charges for insurance features, such as
3598 mortality and expense-risk charges, must be reasonable relative
3599 to the benefits provided.
3600 (c) In evaluating and selecting approved providers and
3601 products, the state board shall establish criteria for
3602 evaluating under which it shall consider the relative
3603 capabilities and qualifications of each proposed provider
3604 company and product. In developing such criteria, the state
3605 board shall consider the following to the extent such factors
3606 may be applied in connection with investment products, services,
3607 or providers:
3608 1. Experience in the United States providing retirement
3609 products and related financial services under investment defined
3610 contribution retirement plans.
3611 2. Financial strength and stability as which shall be
3612 evidenced by the highest ratings assigned by nationally
3613 recognized rating services when comparing proposed providers
3614 that are so rated.
3615 3. Intrastate and interstate portability of the product
3616 offered, including early withdrawal options.
3617 4. Compliance with the Internal Revenue Code.
3618 5. The cost-effectiveness of the product provided and the
3619 levels of service supporting the product relative to its
3620 benefits and its characteristics, including, without limitation,
3621 the level of risk borne by the provider.
3622 6. The provider company’s ability and willingness to
3623 coordinate its activities with Florida Retirement System
3624 employers, the department, and the state board, and to supply to
3625 the such employers, the department, and the state board with the
3626 information and data they require.
3627 7. The methods available to members participants to
3628 interact with the provider company; the means by which members
3629 participants may access account information, direct investment
3630 of contributions, make changes to their accounts, transfer
3631 moneys between available investment vehicles, and transfer
3632 moneys between provider companies; and any fees that apply to
3633 such activities.
3634 8. The provider company’s policies with respect to the
3635 transfer of individual account balances, contributions, and
3636 earnings thereon, both internally among investment products
3637 offered by the provider company and externally between approved
3638 providers, as well as any fees, charges, reductions, or
3639 penalties that may be applied.
3640 9. An evaluation of specific investment products, taking
3641 into account each product’s experience in meeting its investment
3642 return objectives net of all related fees, expenses, and
3643 charges, including, but not limited to, investment management
3644 fees, loads, distribution and marketing fees, custody fees,
3645 recordkeeping fees, education fees, annuity expenses, and
3646 consulting fees.
3647 10. Organizational factors, including, but not limited to,
3648 financial solvency, organizational depth, and experience in
3649 providing institutional and retail investment services.
3650 (d) By March 1, 2010, The state board shall identify and
3651 offer at least one terror-free investment product that allocates
3652 its funds among securities not subject to divestiture as
3653 provided in s. 215.473 if the investment product is deemed by
3654 the state board to be consistent with prudent investor
3655 standards. No person may bring a civil, criminal, or
3656 administrative action against an approved provider; the state
3657 board; or any employee, officer, director, or trustee of such
3658 provider based upon the divestiture of any security or the
3659 offering of a terror-free investment product as specified in
3660 this paragraph.
3661 (e) As a condition of offering an any investment option or
3662 product in the investment plan optional retirement program, the
3663 approved provider must agree to make the investment product or
3664 service available under the most beneficial terms offered to any
3665 other customer, subject to approval by the Trustees of the state
3666 board of Administration.
3667 (f) The state board shall regularly review the performance
3668 of each approved provider and product and related organizational
3669 factors to ensure continued compliance with established
3670 selection criteria and with board policy and procedures.
3671 Providers and products may be terminated subject to contract
3672 provisions. The state board shall adopt procedures to transfer
3673 account balances from terminated products or providers to other
3674 products or providers in the investment plan optional program.
3675 (g)1. An approved provider shall comply with all applicable
3676 federal and state securities and insurance laws and regulations
3677 applicable to the provider, as well as with the applicable rules
3678 and guidelines of the National Association of Securities Dealers
3679 which govern the ethical marketing of investment products. In
3680 furtherance of this mandate, an approved provider must agree in
3681 its contract with the state board to establish and maintain a
3682 compliance education and monitoring system to supervise the
3683 activities of all personnel who directly communicate with
3684 individual members participants and recommend investment
3685 products, which system is consistent with rules of the National
3686 Association of Securities Dealers.
3687 2. Approved provider personnel who directly communicate
3688 with individual members participants and who recommend
3689 investment products shall make an independent and unbiased
3690 determination as to whether an investment product is suitable
3691 for a particular member participant.
3692 3. The state board shall develop procedures to receive and
3693 resolve member participant complaints against a provider or
3694 approved provider personnel, and, if when appropriate, refer
3695 such complaints to the appropriate agency.
3696 4. Approved providers may not sell or in any way distribute
3697 any customer list or member participant identification
3698 information generated through their offering of products or
3699 services through the investment plan optional retirement
3700 program.
3701 (10) EDUCATION COMPONENT.—
3702 (a) The state board, in coordination with the department,
3703 shall provide for an education component for eligible employees
3704 system members in a manner consistent with the provisions of
3705 this section. The education component must be available to
3706 eligible employees at least 90 days before prior to the
3707 beginning date of the election period for the employees of the
3708 respective types of employers.
3709 (b) The education component must provide eligible employees
3710 system members with impartial and balanced information about
3711 plan choices. The education component must involve multimedia
3712 formats. Plan Program comparisons must, to the greatest extent
3713 possible, be based upon the retirement income that different
3714 retirement programs may provide to the member participant. The
3715 state board shall monitor the performance of the contract for
3716 the education component to ensure that the program is conducted
3717 in accordance with the contract, applicable law, and the rules
3718 of the board.
3719 (c) The state board, in coordination with the department,
3720 shall provide for an initial and ongoing transfer education
3721 component to provide system members with information necessary
3722 to make informed plan choice decisions. The transfer education
3723 component must include, but is not limited to, information on:
3724 1. The amount of money available to a member to transfer to
3725 the investment plan defined contribution program.
3726 2. The features of and differences between the pension plan
3727 defined benefit program and the investment plan defined
3728 contribution program, both generally and specifically, as those
3729 differences may affect the member.
3730 3. The expected benefit available if the member were to
3731 retire under each of the retirement programs, based on
3732 appropriate alternative sets of assumptions.
3733 4. The rate of return from investments in the investment
3734 plan defined contribution program and the period of time over
3735 which such rate of return must be achieved to equal or exceed
3736 the expected monthly benefit payable to the member under the
3737 pension plan defined benefit program.
3738 5. The historical rates of return for the investment
3739 alternatives available in the investment plan defined
3740 contribution programs.
3741 6. The benefits and historical rates of return on
3742 investments available in a typical deferred compensation plan or
3743 a typical plan under s. 403(b) of the Internal Revenue Code for
3744 which the employee may be eligible.
3745 7. The program choices available to employees of the State
3746 University System and the comparative benefits of each available
3747 program, if applicable.
3748 8. Payout options available in each of the retirement
3749 programs.
3750 (d) An ongoing education and communication component must
3751 provide eligible employees system members with information
3752 necessary to make informed decisions about choices within their
3753 retirement program of membership and in preparation for
3754 retirement. The component must include, but is not limited to,
3755 information concerning:
3756 1. Rights and conditions of membership.
3757 2. Benefit features within the program, options, and
3758 effects of certain decisions.
3759 3. Coordination of contributions and benefits with a
3760 deferred compensation plan under s. 457 or a plan under s.
3761 403(b) of the Internal Revenue Code.
3762 4. Significant program changes.
3763 5. Contribution rates and program funding status.
3764 6. Planning for retirement.
3765 (e) Descriptive materials must be prepared under the
3766 assumption that the employee is an unsophisticated investor, and
3767 all materials used in the education component must be approved
3768 by the state board before prior to dissemination.
3769 (f) The state board and the department shall also establish
3770 a communication component to provide program information to
3771 participating employers and the employers’ personnel and payroll
3772 officers and to explain their respective responsibilities in
3773 conjunction with the retirement programs.
3774 (g) Funding for education of new employees may reflect
3775 administrative costs to the investment plan optional program and
3776 the pension plan defined benefit program.
3777 (h) Pursuant to paragraph (8)(a), all Florida Retirement
3778 System employers have an obligation to regularly communicate the
3779 existence of the two Florida Retirement System plans and the
3780 plan choice in the natural course of administering their
3781 personnel functions, using the educational materials supplied by
3782 the state board and the department of Management Services.
3783 (11) MEMBER PARTICIPANT INFORMATION REQUIREMENTS.—The state
3784 board shall ensure that each member participant is provided a
3785 quarterly statement that accounts for employer and employee the
3786 contributions made on behalf of the member such participant; the
3787 interest and investment earnings thereon; and any fees,
3788 penalties, or other deductions that apply thereto. At a minimum,
3789 such statements must:
3790 (a) Indicate the member’s participant’s investment options.
3791 (b) State the market value of the account at the close of
3792 the current quarter and previous quarter.
3793 (c) Show account gains and losses for the period and
3794 changes in account accumulation unit values for the quarter
3795 period.
3796 (d) Itemize account contributions for the quarter.
3797 (e) Indicate any account changes due to adjustment of
3798 contribution levels, reallocation of contributions, balance
3799 transfers, or withdrawals.
3800 (f) Set forth any fees, charges, penalties, and deductions
3801 that apply to the account.
3802 (g) Indicate the amount of the account in which the member
3803 participant is fully vested and the amount of the account in
3804 which the member participant is not vested.
3805 (h) Indicate each investment product’s performance relative
3806 to an appropriate market benchmark.
3807
3808 The third-party administrator shall provide quarterly and annual
3809 summary reports to the state board and any other reports
3810 requested by the department or the board. In any solicitation or
3811 offer of coverage under the investment plan an optional
3812 retirement program, a provider company shall be governed by the
3813 contract readability provisions of s. 627.4145, notwithstanding
3814 s. 627.4145(6)(c). In addition, all descriptive materials must
3815 be prepared under the assumption that the member participant is
3816 an unsophisticated investor. Provider companies must maintain an
3817 internal system of quality assurance, have proven functional
3818 systems that are date-calculation compliant, and be subject to a
3819 due-diligence inquiry that proves their capacity and fitness to
3820 undertake service responsibilities.
3821 (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.—The
3822 Investment Advisory Council, created pursuant to s. 215.444,
3823 shall assist the state board in implementing and administering
3824 the investment plan Public Employee Optional Retirement Program.
3825 The Investment Advisory council, created pursuant to s. 215.444,
3826 shall review the state board’s initial recommendations regarding
3827 the criteria to be used in selecting and evaluating approved
3828 providers and investment products. The council may provide
3829 comments on the recommendations to the board within 45 days
3830 after receiving the initial recommendations. The state board
3831 shall make the final determination as to whether any investment
3832 provider or product, any contractor, or any and all contract
3833 provisions are shall be approved for the investment plan
3834 program.
3835 (13) FEDERAL REQUIREMENTS.—
3836 (a) Provisions of This section shall be construed, and the
3837 investment plan Public Employee Optional Retirement Program
3838 shall be administered, so as to comply with the Internal Revenue
3839 Code, 26 U.S.C., and specifically with plan qualification
3840 requirements imposed on governmental plans under s. 401(a) of
3841 the Internal Revenue Code. The state board may shall have the
3842 power and authority to adopt rules reasonably necessary to
3843 establish or maintain the qualified status of the investment
3844 plan Optional Retirement Program under the Internal Revenue Code
3845 and to implement and administer the plan Optional Retirement
3846 Program in compliance with the Internal Revenue Code and this
3847 part; provided however, that the board may shall not have the
3848 authority to adopt any rule which makes a substantive change to
3849 the investment plan Optional Retirement Program as designed by
3850 this part.
3851 (b) Any section or provision of this chapter which is
3852 susceptible to more than one construction shall must be
3853 interpreted in favor of the construction most likely to satisfy
3854 requirements imposed by s. 401(a) of the Internal Revenue Code.
3855 (c) Employer and employee contributions payable under this
3856 section for any limitation year may not exceed the maximum
3857 amount allowable for qualified defined contribution pension
3858 plans under applicable provisions of the Internal Revenue Code.
3859 If an employee who is enrolled who has elected to participate in
3860 the investment plan enrolls Public Employee Optional Retirement
3861 Program participates in any other plan that is maintained by the
3862 participating employer, benefits that accrue under the
3863 investment plan are Public Employee Optional Retirement Program
3864 shall be considered primary for any aggregate limitation
3865 applicable under s. 415 of the Internal Revenue Code.
3866 (14) INVESTMENT POLICY STATEMENT.—
3867 (a) Investment products and approved providers selected for
3868 the investment plan Public Employee Optional Retirement Program
3869 must shall conform with the Florida Public Employee Optional
3870 Retirement System Program Investment Plan Policy Statement,
3871 herein referred to as the “statement,” as developed and approved
3872 by the Trustees of the state board of Administration. The
3873 statement must include, among other items, the investment
3874 objectives of the investment plan Public Employee Optional
3875 Retirement Program, manager selection and monitoring guidelines,
3876 and performance measurement criteria. As required from time to
3877 time, the executive director of the state board may present
3878 recommended changes in the statement to the board for approval.
3879 (b) Before Prior to presenting the statement, or any
3880 recommended changes thereto, to the state board, the executive
3881 director of the board shall present such statement or changes to
3882 the Investment Advisory Council for review. The council shall
3883 present the results of its review to the board prior to the
3884 board’s final approval of the statement or changes in the
3885 statement.
3886 (15) STATEMENT OF FIDUCIARY STANDARDS AND
3887 RESPONSIBILITIES.—
3888 (a) Investment of investment plan optional defined
3889 contribution retirement plan assets shall be made for the sole
3890 interest and exclusive purpose of providing benefits to plan
3891 members participants and beneficiaries and defraying reasonable
3892 expenses of administering the plan. The program’s assets shall
3893 are to be invested, on behalf of the members program
3894 participants, with the care, skill, and diligence that a prudent
3895 person acting in a like manner would undertake. The performance
3896 of the investment duties set forth in this paragraph shall
3897 comply with the fiduciary standards set forth in the Employee
3898 Retirement Income Security Act of 1974 at 29 U.S.C. s.
3899 1104(a)(1)(A)-(C). In case of conflict with other provisions of
3900 law authorizing investments, the investment and fiduciary
3901 standards set forth in this subsection shall prevail.
3902 (b) If a member participant or beneficiary of the
3903 investment plan Public Employee Optional Retirement program
3904 exercises control over the assets in his or her account, as
3905 determined by reference to regulations of the United States
3906 Department of Labor under s. 404(c) of the Employee Retirement
3907 Income Security Act of 1974 and all applicable laws governing
3908 the operation of the program, a no program fiduciary is not
3909 shall be liable for any loss to a member’s participant’s or
3910 beneficiary’s account which results from the member’s such
3911 participant’s or beneficiary’s exercise of control.
3912 (c) Subparagraph (8)(b)2. (8)(b)4. and paragraph (15)(b)
3913 incorporate the federal law concept of member participant
3914 control, established by regulations of the United States
3915 Department of Labor under s. 404(c) of the Employee Retirement
3916 Income Security Act of 1974 (ERISA). The purpose of this
3917 paragraph is to assist employers and the state board of
3918 Administration in maintaining compliance with s. 404(c), while
3919 avoiding unnecessary costs and eroding member participant
3920 benefits under the investment plan Public Employee Optional
3921 Retirement program. Pursuant to 29 C.F.R. s. 2550.404c
3922 1(b)(2)(i)(B)(1)(viii), the state board of Administration or its
3923 designated agents shall deliver to members participants of the
3924 investment plan Public Employee Optional Retirement program a
3925 copy of the prospectus most recently provided to the plan, and,
3926 pursuant to 29 C.F.R. s. 2550.404c-1(b)(2)(i)(B)(2)(ii), shall
3927 provide such members participants an opportunity to obtain this
3928 information, except that:
3929 1. The requirement to deliver a prospectus shall be deemed
3930 to be satisfied by delivery of a fund profile or summary profile
3931 that contains the information that would be included in a
3932 summary prospectus as described by Rule 498 under the Securities
3933 Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees,
3934 expense information, or other information provided by a mutual
3935 fund in the prospectus does not reflect terms negotiated by the
3936 state board of Administration or its designated agents, the
3937 aforementioned requirement is deemed to be satisfied by delivery
3938 of a separate document described by Rule 498 substituting
3939 accurate information; and
3940 2. Delivery shall be deemed to have been effected if
3941 delivery is through electronic means and the following standards
3942 are satisfied:
3943 a. Electronically-delivered documents are prepared and
3944 provided consistent with style, format, and content requirements
3945 applicable to printed documents;
3946 b. Each member participant is provided timely and adequate
3947 notice of the documents that are to be delivered and their
3948 significance thereof, and of the member’s participant’s right to
3949 obtain a paper copy of such documents free of charge;
3950 c.(I) Members Participants have adequate access to the
3951 electronic documents, at locations such as their worksites or
3952 public facilities, and have the ability to convert the documents
3953 to paper free of charge by the state board of Administration,
3954 and the board or its designated agents take appropriate and
3955 reasonable measures to ensure that the system for furnishing
3956 electronic documents results in actual receipt., or
3957 (II) Members Participants have provided consent to receive
3958 information in electronic format, which consent may be revoked;
3959 and
3960 d. The state board of Administration, or its designated
3961 agent, actually provides paper copies of the documents free of
3962 charge, upon request.
3963 (16) DISABILITY BENEFITS.—For any member participant of the
3964 investment plan optional retirement program who becomes totally
3965 and permanently disabled, benefits must shall be paid in
3966 accordance with the provisions of s. 121.591.
3967 (17) SOCIAL SECURITY COVERAGE.—Social security coverage
3968 shall be provided for all officers and employees who become
3969 members participants of the investment plan optional program.
3970 Any modification of the present agreement with the Social
3971 Security Administration, or referendum required under the Social
3972 Security Act, for the purpose of providing social security
3973 coverage for any member shall be requested by the state agency
3974 in compliance with the applicable provisions of the Social
3975 Security Act governing such coverage. However, retroactive
3976 social security coverage for service before prior to December 1,
3977 1970, with the employer may shall not be provided for any member
3978 who was not covered under the agreement as of November 30, 1970.
3979 (18) RETIREE HEALTH INSURANCE SUBSIDY.—All officers and
3980 employees who are members participants of the investment plan
3981 are optional program shall be eligible to receive the retiree
3982 health insurance subsidy, subject to the provisions of s.
3983 112.363.
3984 (19) MEMBER PARTICIPANT RECORDS.—Personal identifying
3985 information of a member of participant in the investment plan
3986 Public Employee Optional Retirement Program contained in Florida
3987 Retirement System records held by the state board of
3988 Administration or the department of Management Services is
3989 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3990 Constitution.
3991 (20) DESIGNATION OF BENEFICIARIES.—
3992 (a) Each member participant may, by electronic means or on
3993 a form provided for that purpose, signed and filed with the
3994 third-party administrator, designate a choice of one or more
3995 persons, named sequentially or jointly, as his or her
3996 beneficiary for receiving who shall receive the benefits, if
3997 any, which may be payable pursuant to this chapter in the event
3998 of the member’s participant’s death. If no beneficiary is named
3999 in this manner, or if no beneficiary designated by the member
4000 participant survives the member participant, the beneficiary
4001 shall be the spouse of the deceased, if living. If the member’s
4002 participant’s spouse is not alive at the time of the
4003 beneficiary’s his or her death, the beneficiary shall be the
4004 member’s living children of the participant. If no children
4005 survive, the beneficiary shall be the member’s participant’s
4006 father or mother, if living; otherwise, the beneficiary shall be
4007 the member’s participant’s estate. The beneficiary most recently
4008 designated by a member participant on a form or letter filed
4009 with the third-party administrator shall be the beneficiary
4010 entitled to any benefits payable at the time of the member’s
4011 participant’s death. However Notwithstanding any other provision
4012 in this subsection to the contrary, if a member for a
4013 participant who dies before prior to his or her effective date
4014 of retirement, the spouse at the time of death shall be the
4015 member’s participant’s beneficiary unless the member such
4016 participant designates a different beneficiary as provided in
4017 this subsection subsequent to the member’s participant’s most
4018 recent marriage.
4019 (b) If a member participant designates a primary
4020 beneficiary other than the member’s participant’s spouse, the
4021 member’s participant’s spouse must sign the beneficiary
4022 designation form to acknowledge the designation. This
4023 requirement does not apply to the designation of one or more
4024 contingent beneficiaries to receive benefits remaining upon the
4025 death of the primary beneficiary or beneficiaries.
4026 (c) Notwithstanding the member’s participant’s designation
4027 of benefits to be paid through a trust to a beneficiary that is
4028 a natural person, and notwithstanding the provisions of the
4029 trust, benefits must shall be paid directly to the beneficiary
4030 if the person is no longer a minor or an incapacitated person as
4031 defined in s. 744.102.
4032 (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT OPTION
4033 PROGRAM PARTICIPANTS.—Notwithstanding any other provision of law
4034 to the contrary, members participating participants in the
4035 Deferred Retirement Option Program offered under part I may,
4036 after conclusion of their participation in the program, elect to
4037 roll over or authorize a direct trustee-to-trustee transfer to
4038 an account under the investment plan Public Employee Optional
4039 Retirement Program of their Deferred Retirement Option Program
4040 proceeds distributed as provided under s. 121.091(13)(c)5. The
4041 transaction must constitute an “eligible rollover distribution”
4042 within the meaning of s. 402(c)(4) of the Internal Revenue Code.
4043 (a) The investment plan Public Employee Optional Retirement
4044 Program may accept such amounts for deposit into member
4045 participant accounts as provided in paragraph (5)(e) (5)(c).
4046 (b) The affected member participant shall direct the
4047 investment of his or her investment account; however, unless he
4048 or she becomes a renewed member of the Florida Retirement System
4049 under s. 121.122 and elects to enroll participate in the
4050 investment plan Public Employee Optional Retirement program,
4051 employer and employee contributions may not be made to the
4052 member’s participant’s account as provided under paragraph
4053 (5)(a).
4054 (c) The state board or the department is not responsible
4055 for locating those persons who may be eligible to enroll
4056 participate in the investment plan Public Employee Optional
4057 Retirement Program under this subsection.
4058 (22) CREDIT FOR MILITARY SERVICE.—Creditable service of any
4059 member of the investment program includes Public Employee
4060 Optional Retirement Program shall include military service in
4061 the Armed Forces of the United States as provided in the
4062 conditions outlined in s. 121.111(1).
4063 Section 23. Section 121.4502, Florida Statutes, is amended
4064 to read:
4065 121.4502 Florida Public Employee Optional Retirement System
4066 Investment Plan Program Trust Fund.—
4067 (1) The Florida Public Employee Optional Retirement System
4068 Investment Plan Program Trust Fund is created to hold the assets
4069 of the Florida Public Employee Optional Retirement System
4070 Investment Plan Program in trust for the exclusive benefit of
4071 plan members such program’s participants and beneficiaries, and
4072 for the payment of reasonable administrative expenses of the
4073 plan program, in accordance with s. 401 of the Internal Revenue
4074 Code, and shall be administered by the State Board of
4075 Administration as trustee. Funds shall be credited to the trust
4076 fund as provided in this part and, to be used for the purposes
4077 of this part. The trust fund is exempt from the service charges
4078 imposed by s. 215.20.
4079 (2) The Florida Public Employee Optional Retirement System
4080 Investment Plan Program Trust Fund is a retirement trust fund of
4081 the Florida Retirement System that accounts for retirement plan
4082 assets held by the state in a trustee capacity as a fiduciary
4083 for individual members participants in the Florida Public
4084 Employee Optional Retirement System Investment Plan Program and,
4085 pursuant to s. 19(f), Art. III of the State Constitution, is not
4086 subject to termination.
4087 (3) A forfeiture account shall be created within the
4088 Florida Retirement System Investment Plan Public Employee
4089 Optional Retirement Program Trust Fund to hold the assets
4090 derived from the forfeiture of benefits by participating members
4091 participants. Pursuant to a private letter ruling from the
4092 Internal Revenue Service, the forfeiture account may be used
4093 only for paying expenses of the Florida Retirement System
4094 Investment Plan Public Employee Optional Retirement Program and
4095 reducing future employer contributions to the program.
4096 Consistent with Rulings 80-155 and 74-340 of the Internal
4097 Revenue Service, unallocated reserves within the forfeiture
4098 account must be used as quickly and as prudently as possible
4099 considering the state board’s fiduciary duty. Expected
4100 withdrawals from the account must endeavor to reduce the account
4101 to zero each fiscal year.
4102 Section 24. Subsections (1) and (3) of section 121.4503,
4103 Florida Statutes, are amended to read:
4104 121.4503 Florida Retirement System Contributions Clearing
4105 Trust Fund.—
4106 (1) The Florida Retirement System Contributions Clearing
4107 Trust Fund is created as a clearing fund for disbursing employer
4108 and employee contributions to the component plans of the Florida
4109 Retirement System and shall be administered by the department of
4110 Management Services. Funds shall be credited to the trust fund
4111 as provided in this chapter and shall be held in trust for the
4112 contributing employers and employees until such time as the
4113 assets are transferred by the department to the Florida
4114 Retirement System Trust Fund, the Florida Public Employee
4115 Optional Retirement System Investment Plan Program Trust Fund,
4116 or other trust funds as authorized by law, to be used for the
4117 purposes of this chapter. The trust fund is exempt from the
4118 service charges imposed by s. 215.20.
4119 (3) The department of Management Services may adopt rules
4120 governing the receipt and disbursement of amounts received by
4121 the Florida Retirement System Contributions Clearing Trust Fund
4122 from employers and employees contributing to the component plans
4123 of the Florida Retirement System.
4124 Section 25. Section 121.571, Florida Statutes, is amended
4125 to read:
4126 121.571 Contributions.—Contributions to the Florida Public
4127 Employee Optional Retirement System Investment Plan Program
4128 shall be made as follows:
4129 (1) CONTRIBUTORY NONCONTRIBUTORY PLAN.—Each employer and
4130 employee shall submit accomplish the contributions as required
4131 under by s. 121.71 by a procedure in which no employee’s gross
4132 salary shall be reduced.
4133 (2) CONTRIBUTION RATES GENERALLY.—Contributions to fund the
4134 retirement and disability benefits provided under this part must
4135 shall be based on the uniform contribution rates established by
4136 s. 121.71 and on the membership class or subclass of the
4137 employee participant. Such contributions must shall be allocated
4138 as provided in ss. 121.72 and 121.73.
4139 (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
4140 RETIREE HEALTH INSURANCE SUBSIDY.—Contributions required under
4141 s. 121.71 are this section shall be in addition to employer and
4142 member contributions required for social security and the
4143 Retiree Health Insurance Subsidy Trust Fund as required under
4144 provided in ss. 112.363, 121.052, 121.055, and 121.071, as
4145 appropriate.
4146 Section 26. Section 121.591, Florida Statutes, is amended
4147 to read:
4148 121.591 Payment of benefits payable under the Public
4149 Employee Optional Retirement Program of the Florida Retirement
4150 System.—Benefits may not be paid under the Florida Retirement
4151 System Investment Plan this section unless the member has
4152 terminated employment as provided in s. 121.021(39)(a) or is
4153 deceased and a proper application has been filed as in the
4154 manner prescribed by the state board or the department. Before
4155 termination of employment, benefits are not payable under the
4156 investment plan for employee hardships, unforeseeable
4157 emergencies, loans, medical expenses, educational expenses,
4158 purchase of a principal residence, payments necessary to prevent
4159 eviction or foreclosure on an employee’s principal residence, or
4160 any other reason prior to termination from all employment
4161 relationships with participating employers. The state board or
4162 department, as appropriate, may cancel an application for
4163 retirement benefits if when the member or beneficiary fails to
4164 timely provide the information and documents required by this
4165 chapter and the rules of the state board and department. In
4166 accordance with their respective responsibilities as provided
4167 herein, the state board of Administration and the department of
4168 Management Services shall adopt rules establishing procedures
4169 for application for retirement benefits and for the cancellation
4170 of such application if when the required information or
4171 documents are not received. The state board of Administration
4172 and the department of Management Services, as appropriate, are
4173 authorized to cash out a de minimis account of not more than
4174 $5,000 of a member participant who has been terminated from
4175 Florida Retirement System covered employment for a minimum of 6
4176 calendar months. A de minimis account is an account containing
4177 employer contributions and accumulated earnings of not more than
4178 $5,000 made under the provisions of this chapter. Such cash-out
4179 must either be a complete lump-sum liquidation of the account
4180 balance, subject to the provisions of the Internal Revenue Code,
4181 or a lump-sum direct rollover distribution paid directly to the
4182 custodian of an eligible retirement plan, as defined by the
4183 Internal Revenue Code, on behalf of the member participant. Any
4184 nonvested accumulations, including amounts transferred to the
4185 suspense account of the Florida Retirement System Investment
4186 Plan Trust Fund, are forfeited upon payment of any vested
4187 benefit to a member or beneficiary, except for de minimis
4188 distributions or minimum required distributions as provided
4189 under this section. If any financial instrument issued for the
4190 payment of retirement benefits under this section is not
4191 presented for payment within 180 days after the last day of the
4192 month in which it was originally issued, the third-party
4193 administrator or other duly authorized agent of the state board
4194 of Administration shall cancel the instrument and credit the
4195 amount of the instrument to the suspense account of the Florida
4196 Public Employee Optional Retirement System Investment Plan
4197 Program Trust Fund authorized under s. 121.4501(6). Any such
4198 amounts transferred to the suspense account are payable upon a
4199 proper application, not to include earnings thereon, as provided
4200 in this section, within 10 years after the last day of the month
4201 in which the instrument was originally issued, after which time
4202 such amounts and any earnings attributable to employer
4203 contributions are thereon shall be forfeited. Any such forfeited
4204 amounts are assets of the Public Employee Optional Retirement
4205 Program trust fund and are not subject to the provisions of
4206 chapter 717.
4207 (1) NORMAL BENEFITS.—Under the Florida Public Employee
4208 Optional Retirement System Investment Plan Program:
4209 (a) Benefits in the form of vested accumulations as
4210 described in s. 121.4501(6) are payable under this subsection in
4211 accordance with the following terms and conditions:
4212 1. To the extent vested, Benefits are payable only to a
4213 member, alternate payee of a qualified domestic relations order,
4214 or a beneficiary participant.
4215 2. Benefits shall be paid by the third-party administrator
4216 or designated approved providers in accordance with the law, the
4217 contracts, and any applicable board rule or policy.
4218 3. To receive benefits, The member participant must be
4219 terminated from all employment with all Florida Retirement
4220 System employers, as provided in s. 121.021(39).
4221 4. Benefit payments may not be made until the member
4222 participant has been terminated for 3 calendar months, except
4223 that the state board may authorize by rule for the distribution
4224 of up to 10 percent of the member’s participant’s account after
4225 being terminated for 1 calendar month if the member participant
4226 has reached the normal retirement date as defined in s. 121.021
4227 of the defined benefit plan.
4228 5. If a member or former member of the Florida Retirement
4229 System receives an invalid distribution from the Public Employee
4230 Optional Retirement Program Trust Fund, such person must repay
4231 the full amount invalid distribution to the trust fund within 90
4232 days after receipt of final notification by the state board or
4233 the third-party administrator that the distribution was invalid,
4234 or, in lieu of repayment, must terminate employment from all
4235 participating employers. If such person fails to repay the full
4236 invalid distribution within 90 days after receipt of final
4237 notification, the person may be deemed retired from the
4238 investment plan optional retirement program by the state board,
4239 as provided pursuant to s. 121.4501(2)(k), and is subject to s.
4240 121.122. If such person is deemed retired by the state board,
4241 any joint and several liability set out in s. 121.091(9)(d)2. is
4242 becomes null and void, and the state board, the department, or
4243 the employing agency is not liable for gains on payroll
4244 contributions that have not been deposited to the person’s
4245 account in the investment plan retirement program, pending
4246 resolution of the invalid distribution. The member or former
4247 member who has been deemed retired or who has been determined by
4248 the state board to have taken an invalid distribution may appeal
4249 the agency decision through the complaint process as provided
4250 under s. 121.4501(9)(g)3. As used in this subparagraph, the term
4251 “invalid distribution” means any distribution from an account in
4252 the investment plan optional retirement program which is taken
4253 in violation of this section, s. 121.091(9), or s. 121.4501.
4254 (b) If a member participant elects to receive his or her
4255 benefits upon termination of employment as defined in s.
4256 121.021, the member participant must submit a written
4257 application or an application by electronic means to the third
4258 party administrator indicating his or her preferred distribution
4259 date and selecting an authorized method of distribution as
4260 provided in paragraph (c). The member participant may defer
4261 receipt of benefits until he or she chooses to make such
4262 application, subject to federal requirements.
4263 (c) Upon receipt by the third-party administrator of a
4264 properly executed application for distribution of benefits, the
4265 total accumulated benefit is shall be payable to the member pro
4266 rata across all Florida Retirement System benefit sources
4267 participant, as:
4268 1. A lump-sum or partial distribution to the member
4269 participant;
4270 2. A lump-sum direct rollover distribution whereby all
4271 accrued benefits, plus interest and investment earnings, are
4272 paid from the member’s participant’s account directly to the
4273 custodian of an eligible retirement plan, as defined in s.
4274 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4275 member participant; or
4276 3. Periodic distributions, as authorized by the state
4277 board.
4278 (d) The distribution payment method selected by the plan
4279 member or beneficiary, and the retirement of the member or
4280 beneficiary, is final and irrevocable at the time a benefit
4281 distribution payment is cashed, deposited, or transferred to
4282 another financial institution. Any additional service that
4283 remains unclaimed at retirement may not be claimed or purchased,
4284 and the type of retirement may not be changed, except that if a
4285 member recovers from a disability, the member may subsequently
4286 request normal service benefits under subsection (2).
4287 (e) A member may not receive a distribution of employee
4288 contributions if a pending or approved qualified domestic
4289 relations order is filed against the member’s investment plan
4290 account.
4291 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
4292 this subsection are payable in lieu of the benefits that which
4293 would otherwise be payable under the provisions of subsection
4294 (1). Such benefits must shall be funded entirely from employer
4295 contributions made under s. 121.571, transferred employee
4296 contributions and participant funds accumulated pursuant to
4297 paragraph (a), and interest and earnings thereon. Pursuant
4298 thereto:
4299 (a) Transfer of funds.—To qualify for to receive monthly
4300 disability benefits under this subsection:
4301 1. All moneys accumulated in a member’s account the
4302 participant’s Public Employee Optional Retirement Program
4303 accounts, including vested and nonvested accumulations as
4304 described in s. 121.4501(6), must shall be transferred from such
4305 individual accounts to the division of Retirement for deposit in
4306 the disability account of the Florida Retirement System Trust
4307 Fund. Such moneys must shall be separately accounted for
4308 separately. Earnings must shall be credited on an annual basis
4309 for amounts held in the disability accounts of the Florida
4310 Retirement System Trust Fund based on actual earnings of the
4311 Florida Retirement System trust fund.
4312 2. If the member participant has retained retirement credit
4313 he or she had earned under the pension plan defined benefit
4314 program of the Florida Retirement System as provided in s.
4315 121.4501(3) s. 121.4501(3)(b), a sum representing the actuarial
4316 present value of such credit within the Florida Retirement
4317 System Trust Fund shall be reassigned by the division of
4318 Retirement from the pension plan defined benefit program to the
4319 disability program as implemented under this subsection and
4320 shall be deposited in the disability account of the Florida
4321 Retirement System trust fund. Such moneys must shall be
4322 separately accounted for separately.
4323 (b) Disability retirement; entitlement.—
4324 1. A member participant of the investment plan Public
4325 Employee Optional Retirement program who becomes totally and
4326 permanently disabled, as defined in paragraph (d) s.
4327 121.091(4)(b), after completing 8 years of creditable service,
4328 or a member participant who becomes totally and permanently
4329 disabled in the line of duty regardless of his or her length of
4330 service, is shall be entitled to a monthly disability benefit as
4331 provided herein.
4332 2. In order for service to apply toward the 8 years of
4333 creditable service required to vest for regular disability
4334 benefits, or toward the creditable service used in calculating a
4335 service-based benefit as provided for under paragraph (g), the
4336 service must be creditable service as described below:
4337 a. The member’s participant’s period of service under the
4338 investment plan shall Public Employee Optional Retirement
4339 program will be considered creditable service, except as
4340 provided in subparagraph d.
4341 b. If the member participant has elected to retain credit
4342 for his or her service under the pension plan defined benefit
4343 program of the Florida Retirement System as provided under s.
4344 121.4501(3) s. 121.4501(3)(b), all such service shall will be
4345 considered creditable service.
4346 c. If the member elects participant has elected to transfer
4347 to his or her member participant accounts a sum representing the
4348 present value of his or her retirement credit under the pension
4349 plan defined benefit program as provided under s. 121.4501(3) s.
4350 121.4501(3)(c), the period of service under the pension plan
4351 defined benefit program represented in the present value amounts
4352 transferred shall will be considered creditable service for
4353 purposes of vesting for disability benefits, except as provided
4354 in subparagraph d.
4355 d. If a member Whenever a participant has terminated
4356 employment and has taken distribution of his or her funds as
4357 provided in subsection (1), all creditable service represented
4358 by such distributed funds is forfeited for purposes of this
4359 subsection.
4360 (c) Disability retirement effective date.—The effective
4361 retirement date for a member participant who applies and is
4362 approved for disability retirement shall be established as
4363 provided under s. 121.091(4)(a)2. and 3.
4364 (d) Total and permanent disability.—A member is participant
4365 shall be considered totally and permanently disabled if, in the
4366 opinion of the division, he or she is prevented, by reason of a
4367 medically determinable physical or mental impairment, from
4368 rendering useful and efficient service as an officer or
4369 employee.
4370 (e) Proof of disability.—The division, Before approving
4371 payment of any disability retirement benefit, the division shall
4372 require proof that the member participant is totally and
4373 permanently disabled in the same manner as provided for members
4374 of the defined benefit program of the Florida Retirement System
4375 under s. 121.091(4)(c).
4376 (f) Disability retirement benefit.—Upon the disability
4377 retirement of a member participant under this subsection, the
4378 member participant shall receive a monthly benefit that begins
4379 accruing shall begin to accrue on the first day of the month of
4380 disability retirement, as approved by the division, and is shall
4381 be payable on the last day of that month and each month
4382 thereafter during his or her lifetime and continued disability.
4383 All disability benefits must payable to such member shall be
4384 paid out of the disability account of the Florida Retirement
4385 System Trust Fund established under this subsection.
4386 (g) Computation of disability retirement benefit.—The
4387 amount of each monthly payment must shall be calculated in the
4388 same manner as provided for members of the defined benefit
4389 program of the Florida Retirement System under s. 121.091(4)(f).
4390 For such purpose, Creditable service under both the pension plan
4391 defined benefit program and the investment plan Public Employee
4392 Optional Retirement Program of the Florida Retirement System
4393 shall be applicable as provided under paragraph (b).
4394 (h) Reapplication.—A member participant whose initial
4395 application for disability retirement is has been denied may
4396 reapply for disability benefits in the same manner, and under
4397 the same conditions, as provided for members of the pension plan
4398 defined benefit program of the Florida Retirement System under
4399 s. 121.091(4)(g).
4400 (i) Membership.—Upon approval of a member’s an application
4401 for disability benefits under this subsection, the applicant
4402 shall be transferred to the pension plan defined benefit program
4403 of the Florida Retirement System, effective upon his or her
4404 disability retirement effective date.
4405 (j) Option to cancel.—A member Any participant whose
4406 application for disability benefits is approved may cancel the
4407 his or her application if for disability benefits, provided that
4408 the cancellation request is received by the division before a
4409 disability retirement warrant has been deposited, cashed, or
4410 received by direct deposit. Upon such cancellation:
4411 1. The member’s participant’s transfer to the pension plan
4412 defined benefit program under paragraph (i) shall be nullified;
4413 2. The member participant shall be retroactively reinstated
4414 in the investment plan Public Employee Optional Retirement
4415 program without hiatus;
4416 3. All funds transferred to the Florida Retirement System
4417 Trust Fund under paragraph (a) must shall be returned to the
4418 member participant accounts from which the such funds were
4419 drawn; and
4420 4. The member participant may elect to receive the benefit
4421 payable under the provisions of subsection (1) in lieu of
4422 disability benefits as provided under this subsection.
4423 (k) Recovery from disability.—
4424 1. The division may require periodic reexaminations at the
4425 expense of the disability program account of the Florida
4426 Retirement System Trust Fund. Except as otherwise provided in
4427 subparagraph 2., the requirements, procedures, and restrictions
4428 relating to the conduct and review of such reexaminations,
4429 discontinuation or termination of benefits, reentry into
4430 employment, disability retirement after reentry into covered
4431 employment, and all other matters relating to recovery from
4432 disability shall be the same as provided are set forth under s.
4433 121.091(4)(h).
4434 2. Upon recovery from disability, the any recipient of
4435 disability retirement benefits under this subsection shall be
4436 transferred back to the investment plan a compulsory member of
4437 the Public Employee Optional Retirement Program of the Florida
4438 Retirement System. The net difference between the recipient’s
4439 original account balance transferred to the Florida Retirement
4440 System Trust Fund, including earnings, under paragraph (a) and
4441 total disability benefits paid to such recipient, if any, shall
4442 be determined as provided in sub-subparagraph a.
4443 a. An amount equal to the total benefits paid shall be
4444 subtracted from that portion of the transferred account balance
4445 consisting of vested accumulations as described under s.
4446 121.4501(6), if any, and an amount equal to the remainder of
4447 benefit amounts paid, if any, shall then be subtracted from any
4448 remaining portion consisting of nonvested accumulations as
4449 described under s. 121.4501(6).
4450 b. Amounts subtracted under sub-subparagraph a. must shall
4451 be retained within the disability account of the Florida
4452 Retirement System Trust Fund. Any remaining account balance
4453 shall be transferred to the third-party administrator for
4454 disposition as provided under sub-subparagraph c. or sub
4455 subparagraph d., as appropriate.
4456 c. If the recipient returns to covered employment,
4457 transferred amounts must shall be deposited in individual
4458 accounts under the investment plan Public Employee Optional
4459 Retirement program, as directed by the member participant.
4460 Vested and nonvested amounts shall be separately accounted for
4461 as provided in s. 121.4501(6).
4462 d. If the recipient fails to return to covered employment
4463 upon recovery from disability:
4464 (I) Any remaining vested amount must shall be deposited in
4465 individual accounts under the investment plan Public Employee
4466 Optional Retirement program, as directed by the member
4467 participant, and is shall be payable as provided in subsection
4468 (1).
4469 (II) Any remaining nonvested amount must shall be held in a
4470 suspense account and is shall be forfeitable after 5 years as
4471 provided in s. 121.4501(6).
4472 3. If present value was reassigned from the pension plan
4473 defined benefit program to the disability program of the Florida
4474 Retirement System as provided under subparagraph (a)2., the full
4475 present value amount must shall be returned to the pension plan
4476 defined benefit account within the Florida Retirement System
4477 Trust Fund and the recipient’s affected individual’s associated
4478 retirement credit under the pension plan must defined benefit
4479 program shall be reinstated in full. Any benefit based upon such
4480 credit must shall be calculated as provided in s.
4481 121.091(4)(h)1.
4482 (l) Nonadmissible causes of disability.—A member is
4483 participant shall not be entitled to receive a disability
4484 retirement benefit if the disability results from any injury or
4485 disease sustained or inflicted as described in s. 121.091(4)(i).
4486 (m) Disability retirement of justice or judge by order of
4487 Supreme Court.—
4488 1. If a member participant is a justice of the Supreme
4489 Court, judge of a district court of appeal, circuit judge, or
4490 judge of a county court who has served for 6 years or more as an
4491 elected constitutional judicial officer, including service as a
4492 judicial officer in any court abolished pursuant to Art. V of
4493 the State Constitution, and who is retired for disability by
4494 order of the Supreme Court upon recommendation of the Judicial
4495 Qualifications Commission pursuant to s. 12, the provisions of
4496 Art. V of the State Constitution, the member’s participant’s
4497 Option 1 monthly disability benefit amount as provided in s.
4498 121.091(6)(a)1. shall be two-thirds of his or her monthly
4499 compensation as of the member’s participant’s disability
4500 retirement date. The member Such a participant may alternatively
4501 elect to receive an actuarially adjusted disability retirement
4502 benefit under any other option as provided in s. 121.091(6)(a),
4503 or to receive the normal benefit payable under the Public
4504 Employee Optional Retirement Program as set forth in subsection
4505 (1).
4506 2. If any justice or judge who is a member participant of
4507 the investment plan Public Employee Optional Retirement program
4508 of the Florida Retirement System is retired for disability by
4509 order of the Supreme Court upon recommendation of the Judicial
4510 Qualifications Commission pursuant to s. 12, the provisions of
4511 Art. V of the State Constitution, and elects to receive a
4512 monthly disability benefit under the provisions of this
4513 paragraph:
4514 a. Any present value amount that was transferred to his or
4515 her plan program account and all employer and employee
4516 contributions made to such account on his or her behalf, plus
4517 interest and earnings thereon, must shall be transferred to and
4518 deposited in the disability account of the Florida Retirement
4519 System Trust Fund; and
4520 b. The monthly disability benefits payable under this
4521 paragraph for any affected justice or judge retired from the
4522 Florida Retirement System pursuant to Art. V of the State
4523 Constitution shall be paid from the disability account of the
4524 Florida Retirement System Trust Fund.
4525 (n) Death of retiree or beneficiary.—Upon the death of a
4526 disabled retiree or beneficiary of the retiree thereof who is
4527 receiving monthly disability benefits under this subsection, the
4528 monthly benefits shall be paid through the last day of the month
4529 of death and shall terminate, or be adjusted, if applicable, as
4530 of that date in accordance with the optional form of benefit
4531 selected at the time of retirement. The department of Management
4532 Services may adopt rules necessary to administer this paragraph.
4533 (3) DEATH BENEFITS.—Under the Florida Public Employee
4534 Optional Retirement System Investment Plan Program:
4535 (a) Survivor benefits are shall be payable in accordance
4536 with the following terms and conditions:
4537 1. To the extent vested, Benefits are shall be payable only
4538 to a member’s participant’s beneficiary or beneficiaries as
4539 designated by the member participant as provided in s.
4540 121.4501(20).
4541 2. Benefits shall be paid by the third-party administrator
4542 or designated approved providers in accordance with the law, the
4543 contracts, and any applicable state board rule or policy.
4544 3. To receive benefits under this subsection, the member
4545 participant must be deceased.
4546 (b) Except as provided in paragraph (d), if the employment
4547 of a member is terminated by reason of his or her In the event
4548 of a participant’s death:,
4549 1. Before being vested, only the member’s accumulated
4550 contributions are payable to his or her designated beneficiary.
4551 2. After being vested, all vested accumulations as
4552 described in s. 121.4501(6), less withholding taxes remitted to
4553 the Internal Revenue Service, shall be distributed, as provided
4554 in paragraph (c) or as described in s. 121.4501(20), as if the
4555 member participant retired on the date of death. No other death
4556 benefits are shall be available for survivors of members
4557 participants under the investment plan Public Employee Optional
4558 Retirement Program, except for such benefits, or coverage for
4559 such benefits, as are otherwise provided by law or are
4560 separately provided afforded by the employer, at the employer’s
4561 discretion.
4562 (c) Upon receipt by the third-party administrator of a
4563 properly executed application for distribution of benefits under
4564 paragraph (b), the total accumulated benefit is shall be payable
4565 by the third-party administrator to the member’s participant’s
4566 surviving beneficiary or beneficiaries, as:
4567 1. A lump-sum distribution payable to the beneficiary or
4568 beneficiaries, or to the deceased member’s participant’s estate;
4569 2. An eligible rollover distribution on behalf of the
4570 surviving spouse of a deceased member participant, whereby all
4571 accrued benefits, plus interest and investment earnings, are
4572 paid from the deceased member’s participant’s account directly
4573 to the custodian of an eligible retirement plan, as described in
4574 s. 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4575 surviving spouse; or
4576 3. A partial lump-sum payment whereby a portion of the
4577 accrued benefit is paid to the deceased member’s participant’s
4578 surviving spouse or other designated beneficiaries, less
4579 withholding taxes remitted to the Internal Revenue Service, and
4580 the remaining amount is transferred directly to the custodian of
4581 an eligible retirement plan, as described in s. 402(c)(8)(B) of
4582 the Internal Revenue Code, on behalf of the surviving spouse.
4583 The proportions must be specified by the member participant or
4584 the surviving beneficiary.
4585
4586 This paragraph does not abrogate other applicable provisions of
4587 state or federal law providing for payment of death benefits.
4588 (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
4589 any person under the Florida Public Employee Optional Retirement
4590 System Investment Plan Program, and any contributions
4591 accumulated under such plan program, are not subject to
4592 assignment, execution, attachment, or any legal process, except
4593 for qualified domestic relations orders by a court of competent
4594 jurisdiction, income deduction orders as provided in s. 61.1301,
4595 and federal income tax levies.
4596 Section 27. Section 121.5911, Florida Statutes, is amended
4597 to read:
4598 121.5911 Disability retirement program; qualified status;
4599 rulemaking authority.—It is the intent of the Legislature that
4600 the disability retirement program for members participants of
4601 the Florida Public Employee Optional Retirement System
4602 Investment Plan Program as created in this act must meet all
4603 applicable requirements of federal law for a qualified plan. The
4604 department of Management Services shall seek a private letter
4605 ruling from the Internal Revenue Service on the disability
4606 retirement program for participants of the Public Employee
4607 Optional Retirement Program. Consistent with the private letter
4608 ruling, the department of Management Services shall adopt any
4609 necessary rules necessary required to maintain the qualified
4610 status of the disability retirement program and the Florida
4611 Retirement System’s pension System defined benefit plan.
4612 Section 28. Subsection (1) of section 121.70, Florida
4613 Statutes, is amended to read:
4614 121.70 Legislative purpose and intent.—
4615 (1) This part provides for a uniform system for funding
4616 benefits provided under the Florida Retirement System defined
4617 benefit program established under part I of this chapter,
4618 (referred to in this part as the pension plan, defined benefit
4619 program) and under the Florida Public Employee Optional
4620 Retirement System Investment Plan Program established under part
4621 II of this chapter, (referred to in this part as the investment
4622 plan optional retirement program). The Legislature recognizes
4623 and declares that the Florida Retirement System is a single
4624 retirement system, consisting of two retirement plans and other
4625 nonintegrated programs. Employers and employees participating in
4626 the Florida Retirement System collectively shall be responsible
4627 for making contributions to support the benefits provided
4628 afforded under both programs plans. The As provided in this
4629 part, employers and employees participating in the Florida
4630 Retirement System shall make contributions based upon uniform
4631 contribution rates determined as a percentage of the total
4632 payroll for each class or subclass of Florida Retirement System
4633 membership, irrespective of which retirement program the plan
4634 individual employee is enrolled in employees may elect. This
4635 shall be known as a uniform or blended contribution rate system.
4636 Section 29. Subsections (1) and (2) of section 121.71,
4637 Florida Statutes, are amended, present subsections (3) and (4)
4638 of that section are renumbered as subsections (5) and (8),
4639 respectively, and new subsections (3), (4), (6), and (7) are
4640 added to that section, to read:
4641 121.71 Uniform rates; process; calculations; levy.—
4642 (1) In conducting the system actuarial study required under
4643 s. 121.031, the actuary shall follow all requirements specified
4644 thereunder to determine, by Florida Retirement System employee
4645 membership class, the dollar contribution amounts necessary for
4646 the next forthcoming fiscal year for the pension plan defined
4647 benefit program. In addition, the actuary shall determine, by
4648 Florida Retirement System membership class, based on an estimate
4649 for the forthcoming fiscal year of the gross compensation of
4650 employees participating in the investment plan optional
4651 retirement program, the dollar contribution amounts necessary to
4652 make the allocations required under ss. 121.72 and 121.73. For
4653 each employee membership class and subclass, the actuarial study
4654 must shall establish a uniform rate necessary to fund the
4655 benefit obligations under both Florida Retirement System
4656 retirement plans by dividing the sum of total dollars required
4657 by the estimated gross compensation of members in both plans.
4658 (2) Based on the uniform rates set forth in subsections
4659 subsection (3), (4), and (5), employers and employees shall make
4660 monthly contributions to the division as required under s.
4661 121.061(1) of Retirement, which shall initially deposit the
4662 funds into the Florida Retirement System Contributions Clearing
4663 Trust Fund. A change in a contribution rate is effective on the
4664 first day of the month for which a full month’s employer
4665 contribution may be made on or after the beginning date of the
4666 change. Beginning July 1, 2011, each employee, except those
4667 participating in the Deferred Retirement Option Program, shall
4668 contribute the contributions required in subsection (3) to the
4669 plan. The employer shall deduct the contribution from the
4670 employee’s monthly salary and submit it to the division. The
4671 contributions shall be reported as employer-paid employee
4672 contributions, and shall be credited to the account of the
4673 employee. The contributions shall be deducted from the
4674 employee’s salary before the computation of applicable federal
4675 taxes and treated as employer contributions under 26 U.S.C.
4676 414(h)(2). Although designated as employee contributions, the
4677 employer specifies that the contributions are being paid by the
4678 employer in lieu of contributions by the employee. The employee
4679 does not have the option of choosing to receive the contributed
4680 amounts directly instead of having them paid to the plan. Such
4681 contributions are mandatory and each employee is deemed to have
4682 consented to the payroll deductions. Payment of an employee’s
4683 salary or wages, less the contribution, is a full and complete
4684 discharge and satisfaction of all claims and demands for the
4685 service rendered by employees during the period covered by the
4686 payment, except for claims to benefits to which they may be
4687 entitled under this chapter.
4688 (3) Effective July 1, 2011, the required employee
4689 retirement contribution rates for all members of the Florida
4690 Retirement System shall be 2 percent for gross compensation up
4691 to and including $25,000, 4 percent for gross compensation
4692 greater than $25,000 and up to and including $50,000, and 6
4693 percent for gross compensation greater than $50,000. This
4694 subsection does not apply to members participating in the
4695 Deferred Option Retirement Program.
4696 (4) Effective July 1, 2011, the required employee
4697 retirement contribution rate for those members of the Elected
4698 Officers’ Class who are members of the Florida Legislature and
4699 all Statewide Elected Officials (for both the pension and
4700 investment plans) shall be 3 percent for gross compensation up
4701 to and including $25,000, 5 percent for gross compensation
4702 greater than $25,000 and up to and including $50,000, and 7
4703 percent for gross compensation greater than $50,000.
4704 (5)(3) Required employer retirement contribution rates for
4705 each membership class and subclass of the Florida Retirement
4706 System for both retirement plans are as follows:
4707 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009Percentage ofGrossCompensation,EffectiveJuly 1, 2010
4708
4709 Regular Class 5.09% 8.69% 9.63%
4710 Special Risk Class 13.80% 19.76% 22.11%
4711 Special Risk Administrative Support Class 6.67% 11.39% 12.10%
4712 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 9.46% 13.32% 15.20%
4713 Elected Officers’ Class— Justices, Judges 12.02% 18.40% 20.65%
4714 Elected Officers’ Class— County Elected Officers 11.44% 15.37% 17.50%
4715 Senior Management Class 6.88% 11.96% 13.43%
4716 DROP 3.12% 9.80% 11.14%
4717 (6) In order to address unfunded actuarial liabilities of
4718 the system, the required employer retirement contribution rates
4719 for each membership class and subclass of the Florida Retirement
4720 System for both retirement plans are as follows:
4721
4722
4723 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011
4724 Regular Class 0.00%
4725 Special Risk Class 0.00%
4726 Special Risk Administrative Support Class 0.00%
4727 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.00%
4728 Elected Officers’ Class— Justices, Judges 0.00%
4729 Elected Officers’ Class— County Elected Officers 0.00%
4730 Senior Management Class 0.00%
4731 DROP 0.00%
4732 (7) If a member is reported under an incorrect membership
4733 class and the amount of contributions reported and remitted are
4734 less than the amount required, the employer shall owe the
4735 difference plus the delinquent fee of 1 percent for each
4736 calendar month or part thereof that the contributions should
4737 have been paid. This delinquent assessment may not be waived. If
4738 the contributions reported and remitted are more than the amount
4739 required, the employer shall receive a credit to be applied
4740 against future contributions owed.
4741 (8)(4) The state actuary shall recognize and use an
4742 appropriate level of available excess assets of the Florida
4743 Retirement System Trust Fund to offset the difference between
4744 the normal costs of the Florida Retirement System and the
4745 statutorily prescribed contribution rates.
4746 Section 30. Section 121.72, Florida Statutes, is amended to
4747 read:
4748 121.72 Allocations to investment plan member optional
4749 retirement program participant accounts; percentage amounts.—
4750 (1) The allocations established in subsection (4) shall
4751 fund retirement benefits under the investment plan under part II
4752 of this chapter optional retirement program and shall be
4753 transferred monthly by the division of Retirement from the
4754 Florida Retirement System Contributions Clearing Trust Fund to
4755 the third-party administrator for deposit in each participating
4756 employee’s individual account based on the membership class of
4757 the employee participant.
4758 (2) The allocations are stated as a percentage of each
4759 investment plan member’s optional retirement program
4760 participant’s gross compensation for the calendar month. A
4761 change in a contribution percentage is effective the first day
4762 of the month for which retirement contributions a full month’s
4763 employer contribution may be made on or after the beginning date
4764 of the change. Contribution percentages may be modified by
4765 general law.
4766 (3) Employer and employee participant contributions to
4767 member’s participant accounts shall be accounted for separately.
4768 Participant contributions may be made only if expressly
4769 authorized by law. Interest and investment earnings on
4770 contributions shall accrue on a tax-deferred basis until
4771 proceeds are distributed.
4772 (4) Effective July 1, 2011 July 1, 2002, allocations from
4773 the Florida Retirement System Contributions Clearing Trust Fund
4774 to investment plan member optional retirement program
4775 participant accounts, including employee contributions required
4776 under s. 121.71(3), are shall be as follows:
4777 Membership Class Percentage of Gross Compensation
4778 Regular Class 9.00%
4779 Special Risk Class 20.00%
4780 Special Risk Administrative Support Class 11.35%
4781 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.40%
4782 Elected Officers’ Class— Justices, Judges 18.90%
4783 Elected Officers’ Class— County Elected Officers 16.20%
4784 Senior Management Service Class 10.95%
4785 Section 31. Section 121.73, Florida Statutes, is amended to
4786 read:
4787 121.73 Allocations for member optional retirement program
4788 participant disability coverage; percentage amounts.—
4789 (1) The allocations established in subsection (3) shall be
4790 used to provide disability coverage for members of the
4791 investment plan participants in the optional retirement program
4792 and shall be transferred monthly by the division of Retirement
4793 from the Florida Retirement System Contributions Clearing Trust
4794 Fund to the disability account of the Florida Retirement System
4795 Trust Fund.
4796 (2) The allocations are stated as a percentage of each
4797 investment plan member’s optional retirement program
4798 participant’s gross compensation for the calendar month. A
4799 change in a contribution percentage is effective the first day
4800 of the month for which retirement contributions a full month’s
4801 employer contribution may be made on or after the beginning date
4802 of the change. Contribution percentages may be modified by
4803 general law.
4804 (3) Effective July 1, 2002, allocations from the Florida
4805 Retirement System FRS Contribution Clearing Fund to provide
4806 disability coverage for members of the investment plan
4807 participants in the optional retirement program, and to offset
4808 the costs of administering said coverage, shall be as follows:
4809 Membership Class Percentage of Gross Compensation
4810 Regular Class 0.25%
4811 Special Risk Class 1.33%
4812 Special Risk Administrative Support Class 0.45%
4813 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%
4814 Elected Officers’ Class— Justices, Judges 0.73%
4815 Elected Officers’ Class— County Elected Officers 0.41%
4816 Senior Management Service Class 0.26%
4817 (4) Effective July 1, 2011, allocations from the Florida
4818 Retirement System Contribution Clearing Fund to provide
4819 disability coverage for members of the investment plan and to
4820 offset the costs of administering such coverage shall be the
4821 actuarially indicated amount necessary to fund the statutorily
4822 authorized benefit for the plan year as determined by the
4823 department’s actuary.
4824 Section 32. Section 121.74, Florida Statutes, is amended to
4825 read:
4826 121.74 Administrative and educational expenses.—In addition
4827 to contributions required under ss. s. 121.71 and 121.73,
4828 effective July 1, 2010, through June 30, 2014, employers
4829 participating in the Florida Retirement System shall contribute
4830 an amount equal to 0.03 percent of the payroll reported for each
4831 class or subclass of Florida Retirement System membership;
4832 effective July 1, 2014, the contribution rate shall be 0.04
4833 percent of the payroll reported for each class or subclass of
4834 membership. The amount contributed shall be transferred by the
4835 division of Retirement from the Florida Retirement System
4836 Contributions Clearing Trust Fund to the state board’s Board of
4837 Administration’s administrative trust fund to offset the costs
4838 of administering the investment plan optional retirement program
4839 and the costs of providing educational services to members
4840 participating participants in the pension plan defined benefit
4841 program and the investment plan optional retirement program.
4842 Approval of the trustees is required before the expenditure of
4843 these funds. Payments for third-party administrative or
4844 educational expenses shall be made only pursuant to the terms of
4845 the approved contracts for such services.
4846 Section 33. Section 121.75, Florida Statutes, is amended to
4847 read:
4848 121.75 Allocation for pension plan defined benefit
4849 program.—After making the transfers required pursuant to ss.
4850 121.71, 121.72, 121.73, and 121.74, the monthly balance of funds
4851 in the Florida Retirement System Contributions Clearing Trust
4852 Fund shall be transferred to the Florida Retirement System Trust
4853 Fund to pay the costs of providing pension plan defined benefit
4854 program benefits and plan administrative costs under the pension
4855 plan defined benefit program.
4856 Section 34. Section 121.77, Florida Statutes, is amended to
4857 read:
4858 121.77 Deductions from member participant accounts.—The
4859 State Board of Administration may authorize the third-party
4860 administrator to deduct reasonable fees and apply appropriate
4861 charges to investment plan member optional retirement program
4862 participant accounts. In no event may shall administrative and
4863 educational expenses exceed the portion of employer
4864 contributions earmarked for such expenses under this part,
4865 except for reasonable administrative charges assessed against
4866 member participant accounts of persons for whom no employer
4867 contributions are made during the calendar quarter. Investment
4868 management fees shall be deducted from member participant
4869 accounts, pursuant to the terms of the contract between the
4870 provider and the board.
4871 Section 35. Subsections (1) and (3) of section 121.78,
4872 Florida Statutes, are amended to read:
4873 121.78 Payment and distribution of contributions.—
4874 (1) Contributions made pursuant to this part, including the
4875 employee contributions, shall be paid by the employer to the
4876 division of Retirement by electronic funds transfer no later
4877 than the 5th working day of the month immediately following the
4878 month during which the payroll period ended. Accompanying
4879 payroll data must be transmitted to the division concurrent with
4880 the contributions.
4881 (3)(a) Employer and employee contributions and accompanying
4882 payroll data received after the 5th working day of the month are
4883 considered late. The employer shall be assessed by the division
4884 of Retirement a penalty of 1 percent of the contributions due
4885 for each calendar month or part thereof that the contributions
4886 or accompanying payroll data are late. Proceeds from the 1
4887 percent 1-percent assessment against contributions made on
4888 behalf of members of the pension plan participants of the
4889 defined benefit program shall be deposited in the Florida
4890 Retirement System Trust Fund, and proceeds from the 1 percent 1
4891 percent assessment against contributions made on behalf of
4892 members of the investment plan participants of the optional
4893 retirement program shall be transferred to the third-party
4894 administrator for deposit into member participant accounts, as
4895 provided in paragraph (c) (b).
4896 (b) Retirement contributions paid for a prior period shall
4897 be charged a delinquent fee of 1 percent for each calendar month
4898 or part thereof that the contributions should have been paid.
4899 This includes prior period contributions due to incorrect wages,
4900 contributions from an earlier report or wages, and contributions
4901 that should have been reported but were not. The delinquent
4902 assessments may not be waived.
4903 (c)(b) If employee contributions or contributions made by
4904 an employer on behalf of members of the investment plan
4905 participants of the optional retirement program or accompanying
4906 payroll data are not received within the calendar month they are
4907 due, including, but not limited to, contribution adjustments as
4908 a result of employer errors or corrections, and if that
4909 delinquency results in market losses to members participants,
4910 the employer shall reimburse each member’s participant’s account
4911 for market losses resulting from the late contributions. If a
4912 member participant has terminated employment and taken a
4913 distribution, the member participant is responsible for
4914 returning any excess contributions erroneously provided by
4915 employers, adjusted for any investment gain or loss incurred
4916 during the period such excess contributions were in the member’s
4917 participant’s account. The state board or its designated agent
4918 shall communicate to terminated members participants any
4919 obligation to repay such excess contribution amounts. However,
4920 the state board, its designated agents, the Florida Public
4921 Employee Optional Retirement System Investment Plan Program
4922 Trust Fund, the department, or the Florida Retirement System
4923 Trust Fund may not incur any loss or gain as a result of an
4924 employer’s correction of such excess contributions. The third
4925 party administrator, hired by the state board pursuant to s.
4926 121.4501(8), shall calculate the market losses for each affected
4927 member participant. If contributions made on behalf of members
4928 of the investment plan participants of the optional retirement
4929 program or accompanying payroll data are not received within the
4930 calendar month due, the employer shall also pay the cost of the
4931 third-party administrator’s calculation and reconciliation
4932 adjustments resulting from the late contributions. The third
4933 party administrator shall notify the employer of the results of
4934 the calculations and the total amount due from the employer for
4935 such losses and the costs of calculation and reconciliation. The
4936 employer shall remit to the division of Retirement the amount
4937 due within 30 working days after the date of the penalty notice
4938 sent by the division. The division shall transfer that amount to
4939 the third-party administrator, which shall deposit proceeds from
4940 the 1 percent 1-percent assessment and from individual market
4941 losses into member participant accounts, as appropriate. The
4942 state board may adopt rules to administer the provisions
4943 regarding late contributions, late submission of payroll data,
4944 the process for reimbursing member participant accounts for
4945 resultant market losses, and the penalties charged to the
4946 employers.
4947 (d) If employee contributions reported by an employer on
4948 behalf of the employee are reduced as a result of employer
4949 errors or corrections and the employee has terminated employment
4950 and taken a refund or distribution, the employer shall be billed
4951 and is responsible for recovering from the employee any excess
4952 contributions erroneously provided by the employer.
4953 (e)(c) Delinquency fees specified in paragraph (a) may be
4954 waived by the division of Retirement, with regard to pension
4955 plan defined benefit program contributions, and by the state
4956 board, with regard to investment plan optional retirement
4957 program contributions, only if, in the opinion of the division
4958 or the board, as appropriate, exceptional circumstances beyond
4959 the employer’s control prevented remittance by the prescribed
4960 due date notwithstanding the employer’s good faith efforts to
4961 effect delivery. Such a waiver of delinquency may be granted an
4962 employer only once each plan state fiscal year.
4963 (f) If the employer submits excess employer or employee
4964 contributions, the employer shall receive a credit to be applied
4965 against future contributions owed. The employer is responsible
4966 for reimbursing the employee for any excess contributions
4967 submitted if any return of such an erroneous excess pretax
4968 contribution by the program is made within 1 year after making
4969 erroneous contributions or such other period as allowed under
4970 applicable Internal Revenue Service guidance.
4971 (g)(d) If contributions made by an employer on behalf of
4972 members of the investment program participants in the optional
4973 retirement program are delayed in posting to member participant
4974 accounts due to acts of God beyond the control of the division
4975 of Retirement, the state board, or the third-party
4976 administrator, as applicable, market losses resulting from the
4977 late contributions are not payable to the members participants.
4978 Section 36. Subsection (1) of section 175.121, Florida
4979 Statutes, is amended to read:
4980 175.121 Department of Revenue and Division of Retirement to
4981 keep accounts of deposits; disbursements.—For any municipality
4982 or special fire control district having a chapter or local law
4983 plan established pursuant to this chapter:
4984 (1) The Department of Revenue shall keep a separate account
4985 of all moneys collected for each municipality and each special
4986 fire control district pursuant to under the provisions of this
4987 chapter. All moneys so collected must be transferred to the
4988 Police and Firefighters’ Premium Tax Trust Fund and shall be
4989 separately accounted for by the division. The moneys budgeted as
4990 necessary to pay the expenses of the division for the daily
4991 oversight and monitoring of the firefighters’ pension plans
4992 under this chapter and for the oversight and actuarial reviews
4993 conducted under part VII of chapter 112 are annually
4994 appropriated from the following sources in the order listed:
4995 (a) Interest and investment income earned on the moneys
4996 collected for each municipality or special fire control district
4997 and deposited in the Police and Firefighters’ Premium Tax Trust
4998 Fund. Interest and investment income remaining thereafter in the
4999 trust fund which is unexpended and otherwise unallocated by law
5000 shall revert to the General Revenue Fund on June 30 of each
5001 year.
5002 (b) Moneys collected for each municipality or special fire
5003 control district and deposited in the Police and Firefighters’
5004 Premium Tax Trust Fund. Moneys used pursuant to this paragraph
5005 shall be reimbursed during years in which there is an excess of
5006 interest and investment income under paragraph (a).
5007 Section 37. Subsection (1) of section 175.341, Florida
5008 Statutes, is amended to read:
5009 175.341 Duties of Division of Retirement; rulemaking
5010 authority; investments by State Board of Administration.—
5011 (1) The division is shall be responsible for the daily
5012 oversight and monitoring of the for actuarial soundness of the
5013 firefighters’ pension plans, whether chapter or local law plans,
5014 established under this chapter, for receiving and holding the
5015 premium tax moneys collected under this chapter, and, upon
5016 determining compliance with the provisions of this chapter, for
5017 disbursing those moneys to the firefighters’ pension plans. The
5018 funds necessary to pay expenses for such administration shall be
5019 annually appropriated as provided in s. 175.121(1) from the
5020 interest and investment income earned on moneys deposited in the
5021 trust fund.
5022 Section 38. Subsection (1) of section 185.10, Florida
5023 Statutes, is amended to read:
5024 185.10 Department of Revenue and Division of Retirement to
5025 keep accounts of deposits; disbursements.—For any municipality
5026 having a chapter plan or local law plan under this chapter:
5027 (1) The Department of Revenue shall keep a separate account
5028 of all moneys collected for each municipality pursuant to under
5029 the provisions of this chapter. All moneys so collected must be
5030 transferred to the Police and Firefighters’ Premium Tax Trust
5031 Fund and shall be separately accounted for by the division. The
5032 moneys budgeted as necessary to pay the expenses of the division
5033 for the daily oversight and monitoring of the police officers’
5034 retirement plans under this chapter and for the oversight and
5035 actuarial reviews conducted under part VII of chapter 112 are
5036 annually appropriated from the following sources in the order
5037 listed:
5038 (a) Interest and investment income earned on the moneys
5039 collected for each municipality or special fire control district
5040 and deposited in the Police and Firefighters’ Premium Tax Trust
5041 Fund. Interest and investment income remaining thereafter in the
5042 trust fund which is unexpended and otherwise unallocated by law
5043 shall revert to the General Revenue Fund on June 30 of each
5044 year.
5045 (b) Moneys collected for each municipality or special fire
5046 control district and deposited in the Police and Firefighters’
5047 Premium Tax Trust Fund. Moneys used pursuant to this paragraph
5048 shall be reimbursed during years in which there is an excess of
5049 interest and investment income under paragraph (a).
5050 Section 39. Subsection (1) of section 185.23, Florida
5051 Statutes, is amended to read:
5052 185.23 Duties of Division of Retirement; rulemaking
5053 authority; investments by State Board of Administration.—
5054 (1) The division is shall be responsible for the daily
5055 oversight and monitoring of the for actuarial soundness of the
5056 municipal police officers’ retirement plans, whether chapter or
5057 local law plans, established under this chapter, for receiving
5058 and holding the premium tax moneys collected under this chapter,
5059 and, upon determining compliance with the provisions of this
5060 chapter, for disbursing those moneys to the municipal police
5061 officers’ retirement plans. The funds to pay the expenses for
5062 such administration shall be annually appropriated as provided
5063 in s. 185.10(1) from the interest and investment income earned
5064 on moneys deposited in the trust fund.
5065 Section 40. Subsection (1) of section 250.22, Florida
5066 Statutes, is amended to read:
5067 250.22 Retirement.—
5068 (1) Any person who is at least 62 years of age and who has
5069 completed at least not less than 30 years of service as an
5070 officer or enlisted person in the Florida National Guard,
5071 (exclusive of time served on the inactive or retired lists,) on,
5072 before, or subsequent to the passage of this section is eligible
5073 upon application, whether on the active or retired list of the
5074 Florida National Guard, to be retired under the provisions of
5075 this section at the highest rank attained while serving in the
5076 Florida National Guard or the federal military forces.
5077 (a) Such person, and shall initially receive pay in an
5078 amount equal to one-half of the base pay as is now or hereafter
5079 may be prescribed on the date of retirement in the applicable
5080 pay tables for similar grades and periods of service of
5081 personnel in the United States Army or Air Force if; provided
5082 that, in computing service in the Florida National Guard,
5083 service in federal military forces during a period of war or
5084 upon order of the President of the United States, in any
5085 military duty, where the applicant has been inducted from the
5086 Florida National Guard is shall be included; and provided
5087 further that, in computing such service performed after July 1,
5088 1955, only federally recognized service is shall be included.
5089 Eligibility for retirement under this section is in addition to
5090 any other retirement that such person is eligible to receive;
5091 provided, however, such that retirement pay under this section
5092 shall be reduced by any amount of retirement pay, pension, or
5093 compensation which such person is eligible to receive from the
5094 Federal Government for military service. Unless otherwise
5095 provided by law, effective July 1, 2011, the retirement pay of a
5096 member or former member of the Florida National Guard may not be
5097 recomputed to reflect an increase in the rates of base pay for
5098 active members of the armed forces.
5099 (b) Effective July 1, 2012, and annually thereafter on July
5100 1, the Division of Retirement shall adjust the retirement pay of
5101 persons eligible under this section based on s. 121.101(3).
5102 Section 41. Paragraph (a) of subsection (4) of section
5103 1012.875, Florida Statutes, is amended to read:
5104 1012.875 State Community College System Optional Retirement
5105 Program.—Each community college may implement an optional
5106 retirement program, if such program is established therefor
5107 pursuant to s. 1001.64(20), under which annuity or other
5108 contracts providing retirement and death benefits may be
5109 purchased by, and on behalf of, eligible employees who
5110 participate in the program, in accordance with s. 403(b) of the
5111 Internal Revenue Code. Except as otherwise provided herein, this
5112 retirement program, which shall be known as the State Community
5113 College System Optional Retirement Program, may be implemented
5114 and administered only by an individual community college or by a
5115 consortium of community colleges.
5116 (4)(a) Through June 30, 2011, each college must contribute
5117 on behalf of each program member participant an amount equal to
5118 10.43 percent of the employee’s participant’s gross monthly
5119 compensation. Effective July 1, 2011, each member shall
5120 contribute an amount equal to the employee contribution required
5121 under s. 121.71(3). Effective July 1, 2011, each employer shall
5122 contribute on behalf of each program member an amount equal to
5123 the difference between 10.43 percent of the employee’s gross
5124 monthly compensation and the employee’s required contribution
5125 based on the employee’s gross monthly compensation. The college
5126 shall deduct an amount approved by the district board of
5127 trustees of the college to provide for the administration of the
5128 optional retirement program. Payment of this contribution must
5129 be made either directly by the college or through the program
5130 administrator to the designated company contracting for payment
5131 of benefits to the program member participant.
5132 Section 42. The Legislature finds that a proper and
5133 legitimate state purpose is served when employees and retirees
5134 of the state and its political subdivisions, and the dependents,
5135 survivors, and beneficiaries of such employees and retirees, are
5136 extended the basic protections afforded by governmental
5137 retirement systems. These persons must be provided benefits that
5138 are fair and adequate and that are managed, administered, and
5139 funded in an actuarially sound manner, as required by s. 14,
5140 Article X of the State Constitution and part VII of chapter 112,
5141 Florida Statutes. Therefore, the Legislature determines and
5142 declares that this act fulfills an important state interest.
5143 Section 43. The Division of Statutory Revision is requested
5144 to rename the title of part II of chapter 121, Florida Statutes,
5145 as “Florida Retirement System Investment Plan.”
5146 Section 44. (1) Effective upon this act becoming a law, the
5147 State Board of Administration and the Department of Management
5148 Services shall, as soon as practicable, request a determination
5149 letter and private letter ruling from the United States Internal
5150 Revenue Service. If the Internal Revenue Service refuses to act
5151 upon a request for a private letter ruling, the legal opinion
5152 from a qualified tax attorney or firm may be substituted for the
5153 private letter ruling.
5154 (2) If the board or the department receives notification
5155 from the United States Internal Revenue Service that this act or
5156 any portion of this act will cause the Florida Retirement
5157 System, or a portion thereof, to be disqualified for tax
5158 purposes under the Internal Revenue Code, then that portion does
5159 not apply. Upon such notice, the state board and the department
5160 shall notify the presiding officers of the Legislature.
5161 Section 45. This act shall take effect June 30, 2011.