SB 2100 Third Engrossed
20112100e3
1 A bill to be entitled
2 An act relating to retirement; amending ss. 110.123,
3 112.0801, 112.363, 112.65, and 121.011, F.S.;
4 conforming provisions to changes made by the act;
5 amending s. 121.021, F.S.; revising definitions;
6 amending s. 121.051, F.S.; requiring that a local
7 governmental entity or the governing body of a charter
8 school or charter technical career center make certain
9 elections regarding benefits at the time the entity or
10 governing body joins the Florida Retirement System;
11 requiring employee retirement contributions; providing
12 that employer-paid employee contributions are subject
13 to certain taxes; amending s. 121.0515, F.S.;
14 redefining membership in the Special Risk Class;
15 redefining criteria for Special Risk Class membership;
16 providing for employee contributions to be used, if
17 applicable, when purchasing credit for past service;
18 amending s. 121.052, F.S., relating to the membership
19 class of elected officers; conforming provisions to
20 changes made by the act; requiring member
21 contributions; providing for a refund of contributions
22 under certain circumstances for an officer who leaves
23 office; providing that a member who obtains a refund
24 of contributions waives certain rights under the
25 Florida Retirement System; amending s. 121.053, F.S.;
26 clarifying the employer contributions required for
27 Elected Officers’ Class members who participate in the
28 Deferred Retirement Option Program; amending s.
29 121.055, F.S., relating to the Senior Management
30 Service Class; conforming provisions to changes made
31 by the act; requiring employee contributions;
32 providing for a refund of contributions under certain
33 circumstances for a member who terminates employment;
34 providing that a member who obtains a refund of
35 contributions waives certain rights under the Florida
36 Retirement System; limiting the payment of benefits
37 prior to a participant’s termination of employment;
38 amending s. 121.061, F.S.; conforming provisions to
39 changes made by the act; amending s. 121.071, F.S.;
40 requiring employer and employee contributions to the
41 retirement system; providing for a refund of
42 contributions under certain circumstances following
43 termination of employment; prohibiting such refund if
44 an approved qualified domestic relations order is
45 filed against the participant’s retirement account;
46 providing that a member who obtains a refund of
47 contributions waives certain rights under the Florida
48 Retirement System; requiring repayment plus interest
49 of an invalid refund; amending s. 121.081, F.S.;
50 providing and revising requirements for contributions
51 for prior service performed on or after a certain
52 date; amending s. 121.091, F.S.; modifying the early
53 retirement benefit calculation for those members
54 retiring on or after a certain date or before the
55 normal retirement date to reflect the change in normal
56 retirement age; revising provisions relating to
57 disability retirement for judges; providing for the
58 refund of accumulated contributions if a member’s
59 employment is terminated for any reason other than
60 retirement; revising the interest rate on benefits for
61 members enrolling in drop after a certain date;
62 conforming provisions to changes made by the act;
63 amending s. 121.1001, F.S.; conforming provisions to
64 changes made by the act; amending s. 121.101, F.S.;
65 revising the cost-of-living adjustment depending on
66 the date of retirement; amending s. 121.1115, F.S.;
67 conforming provisions to changes made by the act;
68 amending s. 121.1122, F.S.; conforming provisions to
69 changes made by the act; amending s. 121.121, F.S.;
70 requiring that the purchase of creditable service
71 following an authorized leave of absence be purchased
72 at the employer and employee contribution rates in
73 effect during the leave of absence after a certain
74 date; amending s. 121.125, F.S.; requiring that a
75 penalty be assessed against certain employers that
76 fail to pay the required contributions for workers’
77 compensation; reenacting s. 121.161, F.S.; conforming
78 provisions to changes made by the act; amending s.
79 121.182, F.S.; conforming provisions to changes made
80 by the act; amending s. 121.35, F.S., relating to the
81 optional retirement program for the State University
82 System; requiring employee contributions; limiting the
83 payment of benefits before a participant’s termination
84 of employment; conforming provisions to changes made
85 by the act; amending s. 121.355, F.S.; conforming
86 provisions to changes made by the act; amending s.
87 121.4501, F.S.; changing the name of the Public
88 Employee Optional Retirement Program to the Florida
89 Retirement System Investment Plan; requiring members
90 to make certain contributions to the plan; revising
91 and providing definitions; revising the benefit
92 commencement age for a member enrolled on or after a
93 certain date; providing for contribution adjustments
94 as a result of employer errors or corrections;
95 requiring an employer to receive a credit for excess
96 contributions and to reimburse an employee for excess
97 contributions, subject to certain limitations;
98 providing for a pension plan participant to retain his
99 or her prior plan choice following a return to
100 employment; prohibiting a retiree who is reemployed
101 from renewing membership in the plan; limiting certain
102 refunds of contributions which exceed the amount that
103 would have accrued had the member remained in the
104 defined benefit program; providing certain
105 requirements and limitations with respect to
106 contributions; clarifying that participant and
107 employer contributions are earmarked for specified
108 purposes; providing duties of the third-party
109 administrator; providing that a member is fully and
110 immediately vested with respect to employee
111 contributions paid by the member; providing for the
112 forfeiture of nonvested employer contributions and
113 service credit under certain circumstances; conforming
114 provisions to changes made by the act; amending s.
115 121.4502, F.S.; changing the name of the Public
116 Employee Optional Retirement Program Trust Fund to the
117 Florida Retirement System Investment Plan Trust Fund;
118 amending s. 121.4503, F.S.; providing for the deposit
119 of employee contributions into the Florida Retirement
120 System Contributions Clearing Trust Fund; amending s.
121 121.571, F.S.; providing requirements for submitting
122 employee contributions; amending s. 121.591, F.S.;
123 limiting the payment of benefits prior to a member’s
124 termination of employment; providing for the
125 forfeiture of nonvested accumulations and service
126 credits upon payment of certain vested benefits;
127 providing that the distribution payment method
128 selected by the member or beneficiary is final and
129 irrevocable at the time of benefit distribution;
130 prohibiting a distribution of employee contributions
131 if a qualified domestic relations order is filed
132 against the participant’s account; conforming
133 provisions to changes made by the act; amending s.
134 121.5911, F.S.; conforming provisions to changes made
135 by the act; amending s. 121.70, F.S.; revising
136 legislative intent; amending s. 121.71, F.S.;
137 requiring that employee contributions be deducted from
138 the employee’s monthly salary, beginning on a
139 specified date, and treated as employer contributions
140 under certain provisions of federal law; clarifying
141 that an employee may not receive such contributions
142 directly; specifying the required employee retirement
143 contribution rates for the membership of each
144 membership class and subclass of the Florida
145 Retirement System; specifying the required employer
146 retirement contribution rates for each membership
147 class and subclass of the Florida Retirement System in
148 order to address unfunded actuarial liabilities of the
149 system; requiring an assessment to be imposed if the
150 employee contributions remitted are less than the
151 amount required under certain circumstances; providing
152 for the employer to receive a credit for excess
153 contributions remitted and to apply such credit
154 against future contributions owed; amending ss.
155 121.72, 121.73, 121.74, 121.75, and 121.77, F.S.;
156 conforming provisions to changes made by the act;
157 amending s. 121.78, F.S.; requiring that certain fees
158 be imposed for delinquent payments for retirement
159 contributions; providing that an employer is
160 responsible for recovering any refund provided to an
161 employee in error; revising the terms of an authorized
162 waiver of delinquency; requiring an employer to
163 receive a credit for excess contributions and to
164 reimburse an employee for excess contributions,
165 subject to certain limitations; amending s. 1012.875,
166 F.S.; requiring employer and employee contributions
167 for members of the State Community College System
168 Optional Retirement Program on a certain date;
169 limiting the payment of benefits prior to a
170 participant’s termination of employment; requiring the
171 State Board of Administration and the Department of
172 Management Services to request a determination letter
173 and private letter ruling from the United States
174 Internal Revenue Service; providing legislative
175 findings; providing that the act fulfills an important
176 state interest; providing appropriations to and
177 authorizing additional positions for the Division of
178 Retirement within the Department of Management
179 Services; providing effective dates.
180
181 Be It Enacted by the Legislature of the State of Florida:
182
183 Section 1. Paragraph (g) of subsection (2) of section
184 110.123, Florida Statutes, is amended to read:
185 110.123 State group insurance program.—
186 (2) DEFINITIONS.—As used in this section, the term:
187 (g) “Retired state officer or employee” or “retiree” means
188 any state or state university officer or employee who retires
189 under a state retirement system or a state optional annuity or
190 retirement program or is placed on disability retirement, and
191 who was insured under the state group insurance program at the
192 time of retirement, and who begins receiving retirement benefits
193 immediately after retirement from state or state university
194 office or employment. The term also includes In addition to
195 these requirements, any state officer or state employee who
196 retires under the Florida Retirement System Investment Plan
197 Public Employee Optional Retirement Program established under
198 part II of chapter 121 shall be considered a “retired state
199 officer or employee” or “retiree” as used in this section if he
200 or she:
201 1. Meets the age and service requirements to qualify for
202 normal retirement as set forth in s. 121.021(29); or
203 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
204 the Internal Revenue Code and has 6 years of creditable service.
205 Section 2. Section 112.0801, Florida Statutes, is amended
206 to read:
207 112.0801 Group insurance; participation by retired
208 employees.—
209 (1) Any state agency, county, municipality, special
210 district, community college, or district school board that which
211 provides life, health, accident, hospitalization, or annuity
212 insurance, or all of any kinds of such insurance, for its
213 officers and employees and their dependents upon a group
214 insurance plan or self-insurance plan shall allow all former
215 personnel who have retired before prior to October 1, 1987, as
216 well as those who retire on or after such date, and their
217 eligible dependents, the option of continuing to participate in
218 the such group insurance plan or self-insurance plan. Retirees
219 and their eligible dependents shall be offered the same health
220 and hospitalization insurance coverage as is offered to active
221 employees at a premium cost of no more than the premium cost
222 applicable to active employees. For the retired employees and
223 their eligible dependents, the cost of any such continued
224 participation in any type of plan or any of the cost thereof may
225 be paid by the employer or by the retired employees. To
226 determine health and hospitalization plan costs, the employer
227 shall commingle the claims experience of the retiree group with
228 the claims experience of the active employees; and, for other
229 types of coverage, the employer may commingle the claims
230 experience of the retiree group with the claims experience of
231 active employees. Retirees covered under Medicare may be
232 experience-rated separately from the retirees not covered by
233 Medicare and from active employees if, provided that the total
234 premium does not exceed that of the active group and coverage is
235 basically the same as for the active group.
236 (2) For purposes of this section, “retiree” means any
237 officer or employee who retires under a state retirement system
238 or a state optional annuity or retirement program or is placed
239 on disability retirement and who begins receiving retirement
240 benefits immediately after retirement from employment. In
241 addition to these requirements, any officer or employee who
242 retires under the Florida Retirement System Investment Plan
243 Public Employee Optional Retirement Program established under
244 part II of chapter 121 is shall be considered a “retired officer
245 or employee” or “retiree” as used in this section if he or she:
246 (a) Meets the age and service requirements to qualify for
247 normal retirement as set forth in s. 121.021(29); or
248 (b) Has attained the age specified by s. 72(t)(2)(A)(i) of
249 the Internal Revenue Code and has the years of service required
250 for vesting as set forth in s. 121.021(45) 6 years of creditable
251 service.
252 Section 3. Paragraphs (b) and (c) of subsection (2) and
253 paragraph (e) of subsection (3) of section 112.363, Florida
254 Statutes, are amended to read:
255 112.363 Retiree health insurance subsidy.—
256 (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.—
257 (b) For purposes of this section, a person is deemed
258 retired from a state-administered retirement system when he or
259 she terminates employment with all employers participating in
260 the Florida Retirement System as described in s. 121.021(39)
261 and:
262 1. For a member participant of the investment plan Public
263 Employee Optional Retirement Program established under part II
264 of chapter 121, the participant meets the age or service
265 requirements to qualify for normal retirement as set forth in s.
266 121.021(29) and meets the definition of retiree in s.
267 121.4501(2).
268 2. For a member of the Florida Retirement System Pension
269 Plan defined benefit program, or any employee who maintains
270 creditable service under both the pension plan defined benefit
271 program and the investment plan Public Employee Optional
272 Retirement Program, the member begins drawing retirement
273 benefits from the pension plan defined benefit program of the
274 Florida Retirement System.
275 (c)1. Effective July 1, 2001, any person retiring on or
276 after that such date as a member of the Florida Retirement
277 System, including a member any participant of the investment
278 plan defined contribution program administered pursuant to part
279 II of chapter 121, must have satisfied the vesting requirements
280 for his or her membership class under the pension plan Florida
281 Retirement System defined benefit program as administered under
282 part I of chapter 121. However,
283 2. Notwithstanding the provisions of subparagraph 1., a
284 person retiring due to disability must either qualify for a
285 regular or in-line-of-duty disability benefit as provided in s.
286 121.091(4) or qualify for a disability benefit under a
287 disability plan established under part II of chapter 121, as
288 appropriate.
289 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
290 (e)1. Beginning July 1, 2001, each eligible retiree of the
291 pension plan defined benefit program of the Florida Retirement
292 System, or, if the retiree is deceased, his or her beneficiary
293 who is receiving a monthly benefit from such retiree’s account
294 and who is a spouse, or a person who meets the definition of
295 joint annuitant in s. 121.021(28), shall receive a monthly
296 retiree health insurance subsidy payment equal to the number of
297 years of creditable service, as defined in s. 121.021(17),
298 completed at the time of retirement multiplied by $5; however,
299 no eligible retiree or beneficiary may receive a subsidy payment
300 of more than $150 or less than $30. If there are multiple
301 beneficiaries, the total payment may must not be greater than
302 the payment to which the retiree was entitled. The health
303 insurance subsidy amount payable to any person receiving the
304 retiree health insurance subsidy payment on July 1, 2001, may
305 shall not be reduced solely by operation of this subparagraph.
306 2. Beginning July 1, 2002, each eligible member participant
307 of the investment plan Public Employee Optional Retirement
308 Program of the Florida Retirement System who has met the
309 requirements of this section, or, if the member participant is
310 deceased, his or her spouse who is the member’s participant’s
311 designated beneficiary, shall receive a monthly retiree health
312 insurance subsidy payment equal to the number of years of
313 creditable service, as provided in this subparagraph, completed
314 at the time of retirement, multiplied by $5; however, an no
315 eligible retiree or beneficiary may not receive a subsidy
316 payment of more than $150 or less than $30. For purposes of
317 determining a member’s participant’s creditable service used to
318 calculate the health insurance subsidy, a member’s participant’s
319 years of service credit or fraction thereof shall be based on
320 the member’s participant’s work year as defined in s.
321 121.021(54). Credit must shall be awarded for a full work year
322 if whenever health insurance subsidy contributions have been
323 made as required by law for each month in the member’s
324 participant’s work year. In addition, all years of creditable
325 service retained under the Florida Retirement System Pension
326 Plan must defined benefit program shall be included as
327 creditable service for purposes of this section. Notwithstanding
328 any other provision in this section to the contrary, the spouse
329 at the time of death is shall be the member’s participant’s
330 beneficiary unless such member participant has designated a
331 different beneficiary subsequent to the member’s participant’s
332 most recent marriage.
333 Section 4. Subsection (1) of section 112.65, Florida
334 Statutes, is amended to read:
335 112.65 Limitation of benefits.—
336 (1) ESTABLISHMENT OF PROGRAM.—The normal retirement benefit
337 or pension payable to a retiree who becomes a member of any
338 retirement system or plan and who has not previously
339 participated in such plan, on or after January 1, 1980, may
340 shall not exceed 100 percent of his or her average final
341 compensation. However, nothing contained in this section does
342 not shall apply to supplemental retirement benefits or to
343 pension increases attributable to cost-of-living increases or
344 adjustments. For the purposes of this section, benefits accruing
345 in individual member participant accounts established under the
346 investment plan Public Employee Optional Retirement Program
347 established in part II of chapter 121 are considered
348 supplemental benefits. As used in this section, the term
349 “average final compensation” means the average of the member’s
350 earnings over a period of time which the governmental entity has
351 established by statute, charter, or ordinance.
352 Section 5. Paragraph (g) of subsection (3) of section
353 121.011, Florida Statutes, is amended, and paragraph (h) is
354 added to that subsection, to read:
355 121.011 Florida Retirement System.—
356 (3) PRESERVATION OF RIGHTS.—
357 (g) Any member of the Florida Retirement System or any
358 member of an existing system under this chapter who is not
359 retired and who is, has been, or shall be dismissed from
360 employment shall be considered terminated from active membership
361 in such system.
362 1. If such dismissal is rescinded by proper authority or
363 through legal proceedings, the member is eligible to receive
364 retirement service credit for such period of dismissal if
365 provided:
366 a. The dismissal action taken against the member is
367 determined to be incorrect and is negated, the employee is made
368 whole for the period of the dismissal or any portion thereof,
369 and employment is reinstated; and
370 b. The employer pays into the Retirement System Trust Fund
371 the total required employer contributions for the period for
372 which the employee is made whole, plus interest at 6.5 percent
373 compounded annually until full payment is made. The employee
374 shall pay the total employee contributions, plus interest, if
375 applicable. The employer shall pay the interest on employee
376 contributions, if applicable.
377 2. If the dismissal action is subsequently changed to a
378 suspension by proper authority or through legal proceedings, the
379 member is eligible to receive retirement service credit,
380 provided the member’s employment is reinstated, restoring the
381 employee-employer relationship, and the employee pays the total
382 required employer and employee contributions and complies with
383 all requirements in paragraph (e).
384 (h) Effective July 1, 2011, the retirement system shall
385 require employer and employee contributions as provided in s.
386 121.071 and part III of this chapter.
387 Section 6. Subsections (3), (7), and (15), paragraph (a) of
388 subsection (19), paragraph (b) of subsection (22), and
389 subsections (24), (29), (38), (39), (45), (55), and (59) of
390 section 121.021, Florida Statutes, are amended 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 (7) “Division” means the Division of Retirement in the
406 department. “City” means any municipality duly incorporated
407 under the laws of the state.
408 (15) “Special risk member” or “Special Risk Class member”
409 means a member of the Florida Retirement System who meets the
410 eligibility and criteria required under s. 121.0515 for
411 participation in the Special Risk Class.
412 (a) Until October 1, 1978, “special risk member” means any
413 officer or employee whose application is approved by the
414 administrator and who receives salary payments for work
415 performed as a peace officer; law enforcement officer; police
416 officer; highway patrol officer; custodial employee at a
417 correctional or detention facility; correctional agency employee
418 whose duties and responsibilities involve direct contact with
419 inmates, but excluding secretarial and clerical employees;
420 firefighter; or an employee in any other job in the field of law
421 enforcement or fire protection if the duties of such person are
422 certified as hazardous by his or her employer.
423 (b) Effective October 1, 1978, “special risk member” means
424 a member of the Florida Retirement System who is designated as a
425 special risk member by the division in accordance with s.
426 121.0515. Such member must be employed as a law enforcement
427 officer, a firefighter, or a correctional officer and must meet
428 certain other special criteria as set forth in s. 121.0515.
429 (c) Effective October 1, 1999, “special risk member” means
430 a member of the Florida Retirement System who is designated as a
431 special risk member by the division in accordance with s.
432 121.0515. Such member must be employed as a law enforcement
433 officer, a firefighter, a correctional officer, an emergency
434 medical technician, or a paramedic and must meet certain other
435 special criteria as set forth in s. 121.0515.
436 (d)1. Effective January 1, 2001, “special risk member”
437 includes any member who is employed as a community-based
438 correctional probation officer and meets the special criteria
439 set forth in s. 121.0515(2)(e).
440 2. Effective January 1, 2001, “special risk member”
441 includes any professional health care bargaining unit or non
442 unit member who is employed by the Department of Corrections or
443 the Department of Children and Family Services and meets the
444 special criteria set forth in s. 121.0515(2)(f).
445 (e) Effective July 1, 2001, the term “special risk member”
446 includes any member who is employed as a youth custody officer
447 by the Department of Juvenile Justice and meets the special
448 criteria set forth in s. 121.0515(2)(g).
449 (f) Effective August 1, 2008, “special risk member”
450 includes any member who meets the special criteria for continued
451 membership set forth in s. 121.0515(2)(k).
452 (19) “Prior service” under part I of this chapter means:
453 (a) Service for which the member had credit under one of
454 the existing systems and received a refund of his or her
455 contributions upon termination of employment. Prior service
456 shall also includes include that service between December 1,
457 1970, and the date the system becomes noncontributory for which
458 the member had credit under the Florida Retirement System and
459 received a refund of his or her contributions upon termination
460 of employment.
461 (22) “Compensation” means the monthly salary paid a member
462 by his or her employer for work performed arising from that
463 employment.
464 (b) Under no circumstances shall Compensation for a member
465 participating in the pension plan defined benefit retirement
466 program or the investment plan Public Employee Optional
467 Retirement Program of the Florida Retirement System may not
468 include:
469 1. Fees paid professional persons for special or particular
470 services or include salary payments made from a faculty practice
471 plan authorized by the Board of Governors of the State
472 University System for eligible clinical faculty at a college in
473 a state university that has a faculty practice plan; or
474 2. Any bonuses or other payments prohibited from inclusion
475 in the member’s average final compensation and defined in
476 subsection (47).
477 (24)(a) “Average final compensation” means:
478 1. For members initially enrolled before July 1, 2011, the
479 average of the 5 highest fiscal years of compensation for
480 creditable service before prior to retirement, termination, or
481 death. For in-line-of-duty disability benefits, if less than 5
482 years of creditable service have been completed, the term
483 “average final compensation” means the average annual
484 compensation of the total number of years of creditable service.
485 Each year used to calculate the in the calculation of average
486 final compensation commences shall commence on July 1.
487 2. For members initially enrolled on or after July 1, 2011,
488 the average of the 8 highest fiscal years of compensation for
489 creditable service before retirement, termination, or death. For
490 in-line-of-duty disability benefits, if less than 8 years of
491 creditable service have been completed, the term means the
492 average annual compensation of the total number of years of
493 creditable service. Each year used to calculate average final
494 compensation commences on July 1.
495 (b)(a) The average final compensation includes shall
496 include:
497 1. Accumulated annual leave payments, not to exceed 500
498 hours; and
499 2. All payments defined as compensation in subsection (22).
500 (c)(b) The average final compensation does shall not
501 include:
502 1. Compensation paid to professional persons for special or
503 particular services;
504 2. Payments for accumulated sick leave made due to
505 retirement or termination;
506 3. Payments for accumulated annual leave in excess of 500
507 hours;
508 4. Bonuses as defined in subsection (47);
509 5. Third party payments made on and after July 1, 1990; or
510 6. Fringe benefits (for example, automobile allowances or
511 housing allowances).
512 (29) “Normal retirement date” means the date a member
513 attains normal retirement age and is vested, which is determined
514 as follows:
515 (a)1. If a Regular Class member, a Senior Management
516 Service Class member, or an Elected Officers’ Class member
517 initially enrolled before July 1, 2011:
518 a.1. The first day of the month the member completes 6 or
519 more years of creditable service and attains age 62; or
520 b.2. The first day of the month following the date the
521 member completes 30 years of creditable service, regardless of
522 age.
523 2. If a Regular Class member, a Senior Management Service
524 Class member, or an Elected Officers’ Class member initially
525 enrolled on or after July 1, 2011:
526 a. The first day of the month the member attains age 65; or
527 b. The first day of the month following the date the member
528 completes 33 years of creditable service, regardless of age.
529 (b)1. If a Special Risk Class member initially enrolled
530 before July 1, 2011:
531 a.1. The first day of the month the member completes 6 or
532 more years of creditable service in the Special Risk Class and
533 attains age 55 and completes the years of creditable service in
534 the Special Risk Class equal to or greater than the years of
535 service required for vesting;
536 b.2. The first day of the month following the date the
537 member completes 25 years of creditable service in the Special
538 Risk Class, regardless of age; or
539 c.3. The first day of the month following the date the
540 member completes 25 years of creditable service and attains age
541 52, which service may include a maximum of 4 years of military
542 service credit if as long as such credit is not claimed under
543 any other system and the remaining years are in the Special Risk
544 Class.
545 2. If a Special Risk Class member initially enrolled on or
546 after July 1, 2011:
547 a. The first day of the month the member attains age 60 and
548 completes the years of creditable service in the Special Risk
549 Class equal to or greater than the years of service required for
550 vesting;
551 b. The first day of the month following the date the member
552 completes 30 years of creditable service in the Special Risk
553 Class, regardless of age; or
554 c. The first day of the month following the date the member
555 completes 30 years of creditable service and attains age 57,
556 which service may include a maximum of 4 years of military
557 service credit if such credit is not claimed under any other
558 system and the remaining years are in the Special Risk Class.
559
560 “Normal retirement age” is attained on the “normal retirement
561 date.”
562 (38) “Continuous service” means creditable service as a
563 member, beginning with the first day of employment with an
564 employer covered under a state-administered retirement system
565 consolidated herein and continuing for as long as the member
566 remains in an employer-employee relationship with an employer
567 covered under this chapter. An absence of 1 calendar month or
568 more from an employer’s payroll shall be considered a break in
569 continuous service, except for periods of absence during which
570 an employer-employee relationship continues to exist and such
571 period of absence is creditable under this chapter or under one
572 of the existing systems consolidated herein. However, a law
573 enforcement officer as defined in s. 121.0515(3)(2)(a) who was a
574 member of a state-administered retirement system under chapter
575 122 or chapter 321 and who resigned and was subsequently
576 reemployed in a law enforcement position within 12 calendar
577 months of such resignation by an employer under such state
578 administered retirement system shall be deemed to have not
579 experienced a break in service. Further, with respect to a
580 state-employed law enforcement officer who meets the criteria
581 specified in s. 121.0515(3)(2)(a), if the absence from the
582 employer’s payroll is the result of a “layoff” as defined in s.
583 110.107 or a resignation to run for an elected office that meets
584 the criteria specified in s. 121.0515(3)(2)(a), no break in
585 continuous service shall be deemed to have occurred if the
586 member is reemployed as a state law enforcement officer or is
587 elected to an office which meets the criteria specified in s.
588 121.0515(3)(2)(a) within 12 calendar months after the date of
589 the layoff or resignation, notwithstanding the fact that such
590 period of layoff or resignation is not creditable service under
591 this chapter. A withdrawal of contributions will constitute a
592 break in service. Continuous service also includes past service
593 purchased under this chapter, provided such service is
594 continuous within this definition and the rules established by
595 the administrator. The administrator may establish
596 administrative rules and procedures for applying this definition
597 to creditable service authorized under this chapter. Any
598 correctional officer, as defined in s. 943.10, whose
599 participation in the state-administered retirement system is
600 terminated due to the transfer of a county detention facility
601 through a contractual agreement with a private entity pursuant
602 to s. 951.062, shall be deemed an employee with continuous
603 service in the Special Risk Class, provided return to employment
604 with the former employer takes place within 3 years due to
605 contract termination or the officer is employed by a covered
606 employer in a special risk position within 1 year after his or
607 her initial termination of employment by such transfer of its
608 detention facilities to the private entity.
609 (39)(a) “Termination” occurs, except as provided in
610 paragraph (b), when a member ceases all employment relationships
611 with participating employers an employer, however:
612 1. For retirements effective before July 1, 2010, if a
613 member is employed by any such employer within the next calendar
614 month, termination shall be deemed not to have occurred. A leave
615 of absence constitutes a continuation of the employment
616 relationship, except that a leave of absence without pay due to
617 disability may constitute termination if such member makes
618 application for and is approved for disability retirement in
619 accordance with s. 121.091(4). The department or state board may
620 require other evidence of termination as it deems necessary.
621 2. For retirements effective on or after July 1, 2010, if a
622 member is employed by any such employer within the next 6
623 calendar months, termination shall be deemed not to have
624 occurred. A leave of absence constitutes a continuation of the
625 employment relationship, except that a leave of absence without
626 pay due to disability may constitute termination if such member
627 makes application for and is approved for disability retirement
628 in accordance with s. 121.091(4). The department or state board
629 may require other evidence of termination as it deems necessary.
630 (b) “Termination” for a member electing to participate in
631 the Deferred Retirement Option Program occurs when the program
632 participant ceases all employment relationships with
633 participating employers an employer in accordance with s.
634 121.091(13), however:
635 1. For termination dates occurring before July 1, 2010, if
636 the member participant is employed by any such employer within
637 the next calendar month, termination will be deemed not to have
638 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
639 absence shall constitute a continuation of the employment
640 relationship.
641 2. For termination dates occurring on or after July 1,
642 2010, if the member participant becomes employed by any such
643 employer within the next 6 calendar months, termination will be
644 deemed not to have occurred, except as provided in s.
645 121.091(13)(b)4.c. A leave of absence constitutes a continuation
646 of the employment relationship.
647 (c) Effective July 1, 2011, “termination” for a member
648 receiving a refund of employee contributions occurs when a
649 member ceases all employment relationships with participating
650 employers for 3 calendar months. A leave of absence constitutes
651 a continuation of the employment relationship.
652 (45)(a) “Vested” or “vesting” means the guarantee that a
653 member is eligible to receive a future retirement benefit upon
654 completion of the required years of creditable service for the
655 employee’s class of membership, even though the member may have
656 terminated covered employment before reaching normal or early
657 retirement date. Being vested does not entitle a member to a
658 disability benefit. Provisions governing entitlement to
659 disability benefits are set forth under s. 121.091(4).
660 (a)(b) Effective July 1, 2001, through June 30, 2011, a 6
661 year vesting requirement shall be implemented for the defined
662 benefit program of the Florida Retirement System Pension Plan
663 System. Pursuant thereto:
664 1. Any member employed in a regularly established position
665 on July 1, 2001, who completes or has completed a total of 6
666 years of creditable service is shall be considered vested as
667 described in paragraph (a).
668 2. Any member not employed in a regularly established
669 position on July 1, 2001, shall be deemed vested upon completion
670 of 6 years of creditable service if, provided that such member
671 is employed in a covered position for at least 1 work year after
672 July 1, 2001. However, a no member is not shall be required to
673 complete more years of creditable service than would have been
674 required for that member to vest under retirement laws in effect
675 before July 1, 2001.
676 3. Any member initially enrolled in the Florida Retirement
677 System on July 1, 2001, through June 30, 2011, shall be deemed
678 vested upon completion of 6 years of creditable service.
679 (b) Any member initially enrolled in the Florida Retirement
680 System on or after July 1, 2011, shall be vested upon completion
681 of 8 years of creditable service.
682 (55) “Benefit” means any pension payment, lump-sum or
683 periodic, to a member, retiree, or beneficiary, based partially
684 or entirely on employer contributions or employee contributions,
685 if applicable.
686 (59) “Payee” means a retiree or beneficiary of a retiree
687 who has received or is receiving a retirement benefit payment.
688 Section 7. Paragraphs (b) and (c) of subsection (2) and
689 subsection (3) of section 121.051, Florida Statutes, are amended
690 to read:
691 121.051 Participation in the system.—
692 (2) OPTIONAL PARTICIPATION.—
693 (b)1. The governing body of any municipality, metropolitan
694 planning organization, or special district in the state may
695 elect to participate in the Florida Retirement System upon
696 proper application to the administrator and may cover all or any
697 of its units as approved by the Secretary of Health and Human
698 Services and the administrator. The department shall adopt rules
699 establishing procedures provisions for the submission of
700 documents necessary for such application. Before Prior to being
701 approved for participation in the Florida Retirement system, the
702 governing body of a any such municipality, metropolitan planning
703 organization, or special district that has a local retirement
704 system must shall submit to the administrator a certified
705 financial statement showing the condition of the local
706 retirement system as of a date within 3 months before prior to
707 the proposed effective date of membership in the Florida
708 Retirement System. The statement must be certified by a
709 recognized accounting firm that is independent of the local
710 retirement system. All required documents necessary for
711 extending Florida Retirement System coverage must be received by
712 the department for consideration at least 15 days before prior
713 to the proposed effective date of coverage. If the municipality,
714 metropolitan planning organization, or special district does not
715 comply with this requirement, the department may require that
716 the effective date of coverage be changed.
717 2. A municipality Any city, metropolitan planning
718 organization, or special district that has an existing
719 retirement system covering the employees in the units that are
720 to be brought under the Florida Retirement System may
721 participate only after holding a referendum in which all
722 employees in the affected units have the right to participate.
723 Only those employees electing coverage under the Florida
724 Retirement System by affirmative vote in the said referendum are
725 shall be eligible for coverage under this chapter, and those not
726 participating or electing not to be covered by the Florida
727 Retirement System shall remain in their present systems and are
728 shall not be eligible for coverage under this chapter. After the
729 referendum is held, all future employees are shall be compulsory
730 members of the Florida Retirement System.
731 3. At the time of joining the Florida Retirement System,
732 the governing body of a municipality any city, metropolitan
733 planning organization, or special district complying with
734 subparagraph 1. may elect to provide, or not provide, benefits
735 based on past service of officers and employees as described in
736 s. 121.081(1). However, if such employer elects to provide past
737 service benefits, such benefits must be provided for all
738 officers and employees of its covered group.
739 4. Once this election is made and approved it may not be
740 revoked, except pursuant to subparagraphs 5. and 6., and all
741 present officers and employees electing coverage under this
742 chapter and all future officers and employees are shall be
743 compulsory members of the Florida Retirement System.
744 5. Subject to the conditions set forth in subparagraph 6.,
745 the governing body of a any hospital licensed under chapter 395
746 which is governed by the board of a special district as defined
747 in s. 189.403(1) or by the board of trustees of a public health
748 trust created under s. 154.07, hereinafter referred to as
749 “hospital district,” and which participates in the Florida
750 Retirement System, may elect to cease participation in the
751 system with regard to future employees in accordance with the
752 following procedure:
753 a. No more than 30 days and at least 7 days before adopting
754 a resolution to partially withdraw from the Florida Retirement
755 system and establish an alternative retirement plan for future
756 employees, a public hearing must be held on the proposed
757 withdrawal and proposed alternative plan.
758 b. From 7 to 15 days before such hearing, notice of intent
759 to withdraw, specifying the time and place of the hearing, must
760 be provided in writing to employees of the hospital district
761 proposing partial withdrawal and must be published in a
762 newspaper of general circulation in the area affected, as
763 provided by ss. 50.011-50.031. Proof of publication must of such
764 notice shall be submitted to the Department of Management
765 Services.
766 c. The governing body of a any hospital district seeking to
767 partially withdraw from the system must, before such hearing,
768 have an actuarial report prepared and certified by an enrolled
769 actuary, as defined in s. 112.625(3), illustrating the cost to
770 the hospital district of providing, through the retirement plan
771 that the hospital district is to adopt, benefits for new
772 employees comparable to those provided under the Florida
773 Retirement system.
774 d. Upon meeting all applicable requirements of this
775 subparagraph, and subject to the conditions set forth in
776 subparagraph 6., partial withdrawal from the system and adoption
777 of the alternative retirement plan may be accomplished by
778 resolution duly adopted by the hospital district board. The
779 hospital district board must provide written notice of such
780 withdrawal to the division by mailing a copy of the resolution
781 to the division, postmarked by no later than December 15, 1995.
782 The withdrawal shall take effect January 1, 1996.
783 6. Following the adoption of a resolution under sub
784 subparagraph 5.d., all employees of the withdrawing hospital
785 district who were members of participants in the Florida
786 Retirement system before prior to January 1, 1996, shall remain
787 as members of participants in the system for as long as they are
788 employees of the hospital district, and all rights, duties, and
789 obligations between the hospital district, the system, and the
790 employees shall remain in full force and effect. Any employee
791 who is hired or appointed on or after January 1, 1996, may not
792 participate in the Florida Retirement system, and the
793 withdrawing hospital district has shall have no obligation to
794 the system with respect to such employees.
795 (c) Employees of public community colleges or charter
796 technical career centers sponsored by public community colleges,
797 designated in s. 1000.21(3), who are members of the Regular
798 Class of the Florida Retirement System and who comply with the
799 criteria set forth in this paragraph and s. 1012.875 may, in
800 lieu of participating in the Florida Retirement System, elect to
801 withdraw from the system altogether and participate in the State
802 Community College System Optional Retirement Program provided by
803 the employing agency under s. 1012.875.
804 1.a. Through June 30, 2001, the cost to the employer for
805 benefits under the optional retirement program such annuity
806 equals the normal cost portion of the employer retirement
807 contribution which would be required if the employee were a
808 member of the pension plan’s Regular Class defined benefit
809 program, plus the portion of the contribution rate required by
810 s. 112.363(8) which would otherwise be assigned to the Retiree
811 Health Insurance Subsidy Trust Fund.
812 b. Effective July 1, 2001, through June 30, 2011, each
813 employer shall contribute on behalf of each member of
814 participant in the optional program an amount equal to 10.43
815 percent of the employee’s participant’s gross monthly
816 compensation. The employer shall deduct an amount for the
817 administration of the program.
818 c. Effective July 1, 2011, each member shall contribute an
819 amount equal to the employee contribution required under s.
820 121.71(3). The employer shall contribute on behalf of each
821 program member an amount equal to the difference between 10.43
822 percent of the employee’s gross monthly compensation and the
823 employee’s required contribution based on the employee’s gross
824 monthly compensation.
825 d. The employer shall contribute an additional amount to
826 the Florida Retirement System Trust Fund equal to the unfunded
827 actuarial accrued liability portion of the Regular Class
828 contribution rate.
829 2. The decision to participate in the an optional
830 retirement program is irrevocable as long as the employee holds
831 a position eligible for participation, except as provided in
832 subparagraph 3. Any service creditable under the Florida
833 Retirement System is retained after the member withdraws from
834 the system; however, additional service credit in the system may
835 not be earned while a member of the optional retirement program.
836 3. An employee who has elected to participate in the
837 optional retirement program shall have one opportunity, at the
838 employee’s discretion, to transfer from the optional retirement
839 program to the pension plan defined benefit program of the
840 Florida Retirement System or to the investment plan established
841 under part II of this chapter Public Employee Optional
842 Retirement Program, subject to the terms of the applicable
843 optional retirement program contracts.
844 a. If the employee chooses to move to the investment plan
845 Public Employee Optional Retirement Program, any contributions,
846 interest, and earnings creditable to the employee under the
847 State Community College System optional retirement program are
848 retained by the employee in the State Community College System
849 optional retirement program, and the applicable provisions of s.
850 121.4501(4) govern the election.
851 b. If the employee chooses to move to the pension plan
852 defined benefit program of the Florida Retirement System, the
853 employee shall receive service credit equal to his or her years
854 of service under the State Community College System optional
855 retirement program.
856 (I) The cost for such credit is the amount representing the
857 present value of the employee’s accumulated benefit obligation
858 for the affected period of service. The cost shall be calculated
859 as if the benefit commencement occurs on the first date the
860 employee becomes eligible for unreduced benefits, using the
861 discount rate and other relevant actuarial assumptions that were
862 used to value the Florida Retirement System Pension defined
863 benefit Plan liabilities in the most recent actuarial valuation.
864 The calculation must include any service already maintained
865 under the pension defined benefit plan in addition to the years
866 under the State Community College System optional retirement
867 program. The present value of any service already maintained
868 must be applied as a credit to total cost resulting from the
869 calculation. The division shall ensure that the transfer sum is
870 prepared using a formula and methodology certified by an
871 enrolled actuary.
872 (II) The employee must transfer from his or her State
873 Community College System optional retirement program account and
874 from other employee moneys as necessary, a sum representing the
875 present value of the employee’s accumulated benefit obligation
876 immediately following the time of such movement, determined
877 assuming that attained service equals the sum of service in the
878 pension plan defined benefit program and service in the State
879 Community College System optional retirement program.
880 4. Participation in the optional retirement program is
881 limited to employees who satisfy the following eligibility
882 criteria:
883 a. The employee is must be otherwise eligible for
884 membership or renewed membership in the Regular Class of the
885 Florida Retirement System, as provided in s. 121.021(11) and
886 (12) or s. 121.122.
887 b. The employee is must be employed in a full-time position
888 classified in the Accounting Manual for Florida’s Public
889 Community Colleges as:
890 (I) Instructional; or
891 (II) Executive Management, Instructional Management, or
892 Institutional Management and the, if a community college
893 determines that recruiting to fill a vacancy in the position is
894 to be conducted in the national or regional market, and the
895 duties and responsibilities of the position include the
896 formulation, interpretation, or implementation of policies, or
897 the performance of functions that are unique or specialized
898 within higher education and that frequently support the mission
899 of the community college.
900 c. The employee is must be employed in a position not
901 included in the Senior Management Service Class of the Florida
902 Retirement System, as described in s. 121.055.
903 5. Members of Participants in the program are subject to
904 the same reemployment limitations, renewed membership
905 provisions, and forfeiture provisions as are applicable to
906 regular members of the Florida Retirement System under ss.
907 121.091(9), 121.122, and 121.091(5), respectively. A member
908 participant who receives a program distribution funded by
909 employer and required employee contributions is shall be deemed
910 to be retired from a state-administered retirement system if the
911 member participant is subsequently employed with an employer
912 that participates in the Florida Retirement System.
913 6. Eligible community college employees are compulsory
914 members of the Florida Retirement System until, pursuant to s.
915 1012.875, a written election to withdraw from the system and
916 participate in the State Community College System optional
917 retirement program is filed with the program administrator and
918 received by the division.
919 a. A community college employee whose program eligibility
920 results from initial employment shall must be enrolled in the
921 State Community College System optional retirement program
922 retroactive to the first day of eligible employment. The
923 employer and employee retirement contributions paid through the
924 month of the employee plan change shall be transferred to the
925 community college to the employee’s optional program account,
926 and, effective the first day of the next month, the employer
927 shall pay the applicable contributions based upon subparagraph
928 1.
929 b. A community college employee whose program eligibility
930 is due to the subsequent designation of the employee’s position
931 as one of those specified in subparagraph 4., or due to the
932 employee’s appointment, promotion, transfer, or reclassification
933 to a position specified in subparagraph 4., must be enrolled in
934 the program on the first day of the first full calendar month
935 that such change in status becomes effective. The employer and
936 employee retirement contributions paid from the effective date
937 through the month of the employee plan change must be
938 transferred to the community college to the employee’s optional
939 program account, and, effective the first day of the next month,
940 the employer shall pay the applicable contributions based upon
941 subparagraph 1.
942 7. Effective July 1, 2003, through December 31, 2008, any
943 member participant of the State Community College System
944 optional retirement program who has service credit in the
945 pension defined benefit plan of the Florida Retirement System
946 for the period between his or her first eligibility to transfer
947 from the pension defined benefit plan to the optional retirement
948 program and the actual date of transfer may, during employment,
949 transfer to the optional retirement program a sum representing
950 the present value of the accumulated benefit obligation under
951 the defined benefit retirement program for the period of service
952 credit. Upon transfer, all service credit previously earned
953 under the pension plan defined benefit program of the Florida
954 Retirement System during this period is nullified for purposes
955 of entitlement to a future benefit under the pension plan
956 defined benefit program of the Florida Retirement System.
957 (3) SOCIAL SECURITY COVERAGE.—Social security coverage
958 shall be provided for all officers and employees who become
959 members under the provisions of subsection (1) or subsection
960 (2). Any modification of the present agreement with the Social
961 Security Administration, or referendum required under the Social
962 Security Act, for the purpose of providing social security
963 coverage for any member shall be requested by the state agency
964 in compliance with the applicable provisions of the Social
965 Security Act governing such coverage. However, retroactive
966 social security coverage for service before prior to December 1,
967 1970, with the employer may shall not be provided for a any
968 member who was not covered under the agreement as of November
969 30, 1970. The employer-paid employee contributions specified in
970 s. 121.71(3) are subject to taxes imposed under the Federal
971 Insurance Contributions Act, 26 U.S.C. ss. 3101-3128.
972 Section 8. Section 121.0515, Florida Statutes, is amended
973 to read:
974 121.0515 Special Risk Class membership.—
975 (1) ESTABLISHMENT OF CLASS LEGISLATIVE INTENT.—A separate
976 In creating the Special Risk class of membership within the
977 Florida Retirement System, to be known as the “Special Risk
978 Class,” is established it is the intent and purpose of the
979 Legislature to recognize that persons employed in certain
980 categories of law enforcement, firefighting, criminal detention,
981 and emergency medical care positions are required as one of the
982 essential functions of their positions to perform work that is
983 physically demanding or arduous, or work that requires
984 extraordinary agility and mental acuity, and that such persons,
985 because of diminishing physical and mental faculties, may find
986 that they are not able, without risk to the health and safety of
987 themselves, the public, or their coworkers, to continue
988 performing such duties and thus enjoy the full career and
989 retirement benefits enjoyed by persons employed in other
990 membership classes positions and that, if they find it
991 necessary, due to the physical and mental limitations of their
992 age, to retire at an earlier age and usually with less service,
993 they will suffer an economic deprivation therefrom. To address
994 Therefore, as a means of recognizing the peculiar and special
995 problems of this class of employees, it is the intent and
996 purpose of the Legislature to establish a class of retirement
997 membership is established that awards more retirement credit per
998 year of service than that awarded to other employees; however,
999 nothing contained herein shall require ineligibility for Special
1000 Risk Class membership upon reaching age 55.
1001 (2) MEMBERSHIP.—
1002 (a) Until October 1, 1978, “special risk member” means any
1003 officer or employee whose application is approved by the
1004 administrator and who receives salary payments for work
1005 performed as a peace officer; law enforcement officer; police
1006 officer; highway patrol officer; custodial employee at a
1007 correctional or detention facility; correctional agency employee
1008 whose duties and responsibilities involve direct contact with
1009 inmates, but excluding secretarial and clerical employees;
1010 firefighter; or an employee in any other job in the field of law
1011 enforcement or fire protection if the duties of such person are
1012 certified as hazardous by his or her employer.
1013 (b) Effective October 1, 1978, through September 30, 1999,
1014 “special risk member” means a member of the Florida Retirement
1015 System who is designated as a special risk member by the
1016 division in accordance with this section. Such member must be
1017 employed as a law enforcement officer, a firefighter, or a
1018 correctional officer and must meet certain other special
1019 criteria as set forth in this section.
1020 (c) Effective October 1, 1999, “special risk member” means
1021 a member of the Florida Retirement System who is designated as a
1022 special risk member by the division in accordance with this
1023 section. Such member must be employed as a law enforcement
1024 officer, a firefighter, a correctional officer, an emergency
1025 medical technician, or a paramedic and must meet certain other
1026 special criteria as set forth in this section.
1027 (d) Effective January 1, 2001, “special risk member”
1028 includes:
1029 1. Any member who is employed as a community-based
1030 correctional probation officer and meets the special criteria
1031 set forth in paragraph (3)(e).
1032 2. Any professional health care bargaining unit or non-unit
1033 member who is employed by the Department of Corrections or the
1034 Department of Children and Family Services and meets the special
1035 criteria set forth in paragraph (3)(f).
1036 (e) Effective July 1, 2001, “special risk member” includes
1037 any member who is employed as a youth custody officer by the
1038 Department of Juvenile Justice and meets the special criteria
1039 set forth in paragraph (3)(g).
1040 (f) Effective October 1, 2005, through June 30, 2008, the
1041 member must be employed by a law enforcement agency or medical
1042 examiner’s office in a forensic discipline and meet the special
1043 criteria set forth in paragraph (3)(h).
1044 (g) Effective July 1, 2008, the member must be employed by
1045 the Department of Law Enforcement in the crime laboratory or by
1046 the Division of State Fire Marshal in the forensic laboratory
1047 and meet the special criteria set forth in paragraph (3)(i).
1048 (h) Effective July 1, 2008, the member must be employed by
1049 a local government law enforcement agency or medical examiner’s
1050 office and meet the special criteria set forth in paragraph
1051 (3)(j).
1052 (i) Effective August 1, 2008, “special risk member”
1053 includes any member who meets the special criteria for continued
1054 membership set forth in paragraph (3)(k).
1055 (3)(2) CRITERIA.—A member, to be designated as a special
1056 risk member, must meet the following criteria:
1057 (a) Effective October 1, 1978, the member must be employed
1058 as a law enforcement officer and be certified, or required to be
1059 certified, in compliance with s. 943.1395; however, sheriffs and
1060 elected police chiefs are shall be excluded from meeting the
1061 certification requirements of this paragraph. In addition, the
1062 member’s duties and responsibilities must include the pursuit,
1063 apprehension, and arrest of law violators or suspected law
1064 violators; or as of July 1, 1982, the member must be an active
1065 member of a bomb disposal unit whose primary responsibility is
1066 the location, handling, and disposal of explosive devices; or
1067 the member must be the supervisor or command officer of a member
1068 or members who have such responsibilities.; provided, however,
1069 Administrative support personnel, including, but not limited to,
1070 those whose primary duties and responsibilities are in
1071 accounting, purchasing, legal, and personnel, are shall not be
1072 included;
1073 (b) Effective October 1, 1978, the member must be employed
1074 as a firefighter and be certified, or required to be certified,
1075 in compliance with s. 633.35 and be employed solely within the
1076 fire department of a local government employer or an agency of
1077 state government with firefighting responsibilities. In
1078 addition, the member’s duties and responsibilities must include
1079 on-the-scene fighting of fires; as of October 1, 2001, fire
1080 prevention, or firefighter training; as of October 1, 2001,
1081 direct supervision of firefighting units, fire prevention, or
1082 firefighter training; or as of July 1, 2001, aerial firefighting
1083 surveillance performed by fixed-wing aircraft pilots employed by
1084 the Division of Forestry of the Department of Agriculture and
1085 Consumer Services; or the member must be the supervisor or
1086 command officer of a member or members who have such
1087 responsibilities.; provided, however, Administrative support
1088 personnel, including, but not limited to, those whose primary
1089 duties and responsibilities are in accounting, purchasing,
1090 legal, and personnel, are shall not be included. and further
1091 provided that All periods of creditable service in fire
1092 prevention or firefighter training, or as the supervisor or
1093 command officer of a member or members who have such
1094 responsibilities, and for which the employer paid the special
1095 risk contribution rate, are shall be included;
1096 (c) Effective October 1, 1978, the member must be employed
1097 as a correctional officer and be certified, or required to be
1098 certified, in compliance with s. 943.1395. In addition, the
1099 member’s primary duties and responsibilities must be the
1100 custody, and physical restraint when necessary, of prisoners or
1101 inmates within a prison, jail, or other criminal detention
1102 facility, or while on work detail outside the facility, or while
1103 being transported; or as of July 1, 1984, the member must be the
1104 supervisor or command officer of a member or members who have
1105 such responsibilities.; provided, however, Administrative
1106 support personnel, including, but not limited to, those whose
1107 primary duties and responsibilities are in accounting,
1108 purchasing, legal, and personnel, are shall not be included;
1109 however, wardens and assistant wardens, as defined by rule, are
1110 included shall participate in the Special Risk Class;
1111 (d) Effective October 1, 1999, the member must be employed
1112 by a licensed Advance Life Support (ALS) or Basic Life Support
1113 (BLS) employer as an emergency medical technician or a paramedic
1114 and be certified in compliance with s. 401.27. In addition, the
1115 member’s primary duties and responsibilities must include on
1116 the-scene emergency medical care or as of October 1, 2001,
1117 direct supervision of emergency medical technicians or
1118 paramedics, or the member must be the supervisor or command
1119 officer of one or more members who have such responsibility.
1120 However, Administrative support personnel, including, but not
1121 limited to, those whose primary responsibilities are in
1122 accounting, purchasing, legal, and personnel, are shall not be
1123 included;
1124 (e) Effective January 1, 2001, the member must be employed
1125 as a community-based correctional probation officer and be
1126 certified, or required to be certified, in compliance with s.
1127 943.1395. In addition, the member’s primary duties and
1128 responsibilities must be the supervised custody, surveillance,
1129 control, investigation, and counseling of assigned inmates,
1130 probationers, parolees, or community controllees within the
1131 community; or the member must be the supervisor of a member or
1132 members who have such responsibilities. Administrative support
1133 personnel, including, but not limited to, those whose primary
1134 duties and responsibilities are in accounting, purchasing, legal
1135 services, and personnel management, are shall not be included;
1136 however, probation and parole circuit and deputy circuit
1137 administrators are included shall participate in the Special
1138 Risk Class;
1139 (f) Effective January 1, 2001, the member must be employed
1140 in one of the following classes and must spend at least 75
1141 percent of his or her time performing duties which involve
1142 contact with patients or inmates in a correctional or forensic
1143 facility or institution:
1144 1. Dietitian (class codes 5203 and 5204);
1145 2. Public health nutrition consultant (class code 5224);
1146 3. Psychological specialist (class codes 5230 and 5231);
1147 4. Psychologist (class code 5234);
1148 5. Senior psychologist (class codes 5237 and 5238);
1149 6. Regional mental health consultant (class code 5240);
1150 7. Psychological Services Director—DCF (class code 5242);
1151 8. Pharmacist (class codes 5245 and 5246);
1152 9. Senior pharmacist (class codes 5248 and 5249);
1153 10. Dentist (class code 5266);
1154 11. Senior dentist (class code 5269);
1155 12. Registered nurse (class codes 5290 and 5291);
1156 13. Senior registered nurse (class codes 5292 and 5293);
1157 14. Registered nurse specialist (class codes 5294 and
1158 5295);
1159 15. Clinical associate (class codes 5298 and 5299);
1160 16. Advanced registered nurse practitioner (class codes
1161 5297 and 5300);
1162 17. Advanced registered nurse practitioner specialist
1163 (class codes 5304 and 5305);
1164 18. Registered nurse supervisor (class codes 5306 and
1165 5307);
1166 19. Senior registered nurse supervisor (class codes 5308
1167 and 5309);
1168 20. Registered nursing consultant (class codes 5312 and
1169 5313);
1170 21. Quality management program supervisor (class code
1171 5314);
1172 22. Executive nursing director (class codes 5320 and 5321);
1173 23. Speech and hearing therapist (class code 5406); or
1174 24. Pharmacy manager (class code 5251);
1175 (g) Effective July 1, 2001, the member must be employed as
1176 a youth custody officer and be certified, or required to be
1177 certified, in compliance with s. 943.1395. In addition, the
1178 member’s primary duties and responsibilities must be the
1179 supervised custody, surveillance, control, investigation,
1180 apprehension, arrest, and counseling of assigned juveniles
1181 within the community;
1182 (h) Effective October 1, 2005, through June 30, 2008, the
1183 member must be employed by a law enforcement agency or medical
1184 examiner’s office in a forensic discipline recognized by the
1185 International Association for Identification and must qualify
1186 for active membership in the International Association for
1187 Identification. The member’s primary duties and responsibilities
1188 must include the collection, examination, preservation,
1189 documentation, preparation, or analysis of physical evidence or
1190 testimony, or both, or the member must be the direct supervisor,
1191 quality management supervisor, or command officer of one or more
1192 individuals with such responsibility. Administrative support
1193 personnel, including, but not limited to, those whose primary
1194 responsibilities are clerical or in accounting, purchasing,
1195 legal, and personnel, are shall not be included;
1196 (i) Effective July 1, 2008, the member must be employed by
1197 the Department of Law Enforcement in the crime laboratory or by
1198 the Division of State Fire Marshal in the forensic laboratory in
1199 one of the following classes:
1200 1. Forensic technologist (class code 8459);
1201 2. Crime laboratory technician (class code 8461);
1202 3. Crime laboratory analyst (class code 8463);
1203 4. Senior crime laboratory analyst (class code 8464);
1204 5. Crime laboratory analyst supervisor (class code 8466);
1205 6. Forensic chief (class code 9602); or
1206 7. Forensic services quality manager (class code 9603);
1207 (j) Effective July 1, 2008, the member must be employed by
1208 a local government law enforcement agency or medical examiner’s
1209 office and must spend at least 65 percent of his or her time
1210 performing duties that involve the collection, examination,
1211 preservation, documentation, preparation, or analysis of human
1212 tissues or fluids or physical evidence having potential
1213 biological, chemical, or radiological hazard or contamination,
1214 or use chemicals, processes, or materials that may have
1215 carcinogenic or health-damaging properties in the analysis of
1216 such evidence, or the member must be the direct supervisor of
1217 one or more individuals having such responsibility. If a special
1218 risk member changes to another position within the same agency,
1219 he or she must submit a complete application as provided in
1220 paragraph (4)(3)(a); or
1221 (k) The member must have already qualified for and be
1222 actively participating in special risk membership under
1223 paragraph (a), paragraph (b), or paragraph (c), must have
1224 suffered a qualifying injury as defined in this paragraph, must
1225 not be receiving disability retirement benefits as provided in
1226 s. 121.091(4), and must satisfy the requirements of this
1227 paragraph.
1228 1. The ability to qualify for the class of membership
1229 defined in paragraph (2)(f) occurs s. 121.021(15)(f) shall occur
1230 when two licensed medical physicians, one of whom is a primary
1231 treating physician of the member, certify the existence of the
1232 physical injury and medical condition that constitute a
1233 qualifying injury as defined in this paragraph and that the
1234 member has reached maximum medical improvement after August 1,
1235 2008. The certifications from the licensed medical physicians
1236 must include, at a minimum, that the injury to the special risk
1237 member has resulted in a physical loss, or loss of use, of at
1238 least two of the following: left arm, right arm, left leg, or
1239 right leg; and:
1240 a. That this physical loss or loss of use is total and
1241 permanent, except in the event that the loss of use is due to a
1242 physical injury to the member’s brain, in which event the loss
1243 of use is permanent with at least 75-percent loss of motor
1244 function with respect to each arm or leg affected.
1245 b. That this physical loss or loss of use renders the
1246 member physically unable to perform the essential job functions
1247 of his or her special risk position.
1248 c. That, notwithstanding this physical loss or loss of use,
1249 the individual is able to perform the essential job functions
1250 required by the member’s new position, as provided in
1251 subparagraph 3.
1252 d. That use of artificial limbs is either not possible or
1253 does not alter the member’s ability to perform the essential job
1254 functions of the member’s position.
1255 e. That the physical loss or loss of use is a direct result
1256 of a physical injury and not a result of any mental,
1257 psychological, or emotional injury.
1258 2. For the purposes of this paragraph, “qualifying injury”
1259 means an injury sustained in the line of duty, as certified by
1260 the member’s employing agency, by a special risk member that
1261 does not result in total and permanent disability as defined in
1262 s. 121.091(4)(b). An injury is a qualifying injury if when the
1263 injury is a physical injury to the member’s physical body
1264 resulting in a physical loss, or loss of use, of at least two of
1265 the following: left arm, right arm, left leg, or right leg.
1266 Notwithstanding any other provision of anything in this section
1267 to the contrary, an injury that would otherwise qualify as a
1268 qualifying injury is shall not be considered a qualifying injury
1269 if and when the member ceases employment with the employer for
1270 whom he or she was providing special risk services on the date
1271 the injury occurred.
1272 3. The new position, as described in sub-subparagraph 1.c.,
1273 that is required for qualification as a special risk member
1274 under this paragraph is not required to be a position with
1275 essential job functions that entitle an individual to special
1276 risk membership. Whether a new position as described in sub
1277 subparagraph 1.c. exists and is available to the special risk
1278 member is a decision to be made solely by the employer in
1279 accordance with its hiring practices and applicable law.
1280 4. This paragraph does not grant or create additional
1281 rights for any individual to continued employment or to be hired
1282 or rehired by his or her employer that are not already provided
1283 within the Florida Statutes, the State Constitution, the
1284 Americans with Disabilities Act, if applicable, or any other
1285 applicable state or federal law.
1286 (4)(3) PROCEDURE FOR DESIGNATING.—
1287 (a) Any member of the Florida Retirement System employed by
1288 a county, municipality city, or special district who feels that
1289 his or her position he or she meets the criteria set forth in
1290 this section for membership in the Special Risk Class may
1291 request that his or her employer submit an application to the
1292 department requesting that the department designate him or her
1293 as a Special Risk member. If the employer agrees that the member
1294 meets the requirements for Special Risk Class membership, the
1295 employer shall submit an application to the department on in
1296 behalf of the employee containing a certification that the
1297 member meets the criteria for Special Risk Class membership set
1298 forth in this section and such other supporting documentation as
1299 may be required by administrative rule. The department shall,
1300 within 90 days, either designate or refuse to designate the
1301 member as a special risk member. If the employer declines to
1302 submit the member’s application to the department or if the
1303 department does not designate the member as a special risk
1304 member, the member or the employer may appeal to the State
1305 Retirement Commission, as provided in s. 121.23, for designation
1306 as a special risk member. A member who receives a final
1307 affirmative ruling pursuant to such appeal for Special Risk
1308 membership shall have Special Risk Class membership retroactive
1309 to the date such member would have had Special Risk Class
1310 membership had such membership been approved by the employer and
1311 the department, as determined by the department, and the
1312 employer contributions shall be paid in full within 1 year after
1313 such final ruling.
1314 (b)1. Applying the criteria set forth in this section, the
1315 department of Management Services shall specify which current
1316 and newly created classes of positions under the uniform
1317 classification plan established pursuant to chapter 110 entitle
1318 the incumbents of positions in those classes to membership in
1319 the Special Risk Class. Only employees employed in the classes
1320 so specified shall be special risk members.
1321 2. If When a class is not specified by the department as
1322 provided in subparagraph 1., the employing agency may petition
1323 the State Retirement Commission for approval in accordance with
1324 s. 121.23.
1325 (5)(4) REMOVAL OF SPECIAL RISK CLASS MEMBERSHIP.—
1326 (a) Any member who is a special risk member on October 1,
1327 1978, and who fails to meet the criteria for Special Risk Class
1328 membership established by this section shall have his or her
1329 special risk designation removed and thereafter shall be a
1330 regular member and shall earn only regular membership credit.
1331 The department may shall have the authority to review the
1332 special risk designation of members to determine whether or not
1333 those members continue to meet the criteria for Special Risk
1334 Class membership.
1335 (b) Any member who is a special risk member on July 1,
1336 2008, and who became eligible to participate under paragraph
1337 (3)(2)(h) but fails to meet the criteria for Special Risk Class
1338 membership established by paragraph (3)(2)(i) or paragraph
1339 (3)(2)(j) shall have his or her special risk designation removed
1340 and thereafter shall be a Regular Class member and earn only
1341 Regular Class membership credit. The department may review the
1342 special risk designation of members to determine whether or not
1343 those members continue to meet the criteria for Special Risk
1344 Class membership.
1345 (6)(5) CREDIT FOR PAST SERVICE.—A special risk member may
1346 purchase retirement credit in the Special Risk Class based upon
1347 past service, and may upgrade retirement credit for such past
1348 service, to the extent of 2 percent of the member’s average
1349 monthly compensation as specified in s. 121.091(1)(a) for such
1350 service as follows:
1351 (a) The member may purchase special risk credit for past
1352 service with a municipality city or special district which has
1353 elected to join the Florida Retirement System, or with a
1354 participating agency to which a member’s governmental unit was
1355 transferred, merged, or consolidated as provided in s.
1356 121.081(1)(f), if the member was employed with the municipality
1357 city or special district at the time it commenced participating
1358 in the Florida Retirement System or with the governmental unit
1359 at the time of its transfer, merger, or consolidation with the
1360 participating agency. The service must satisfy the criteria set
1361 forth in subsection (3) (2) for Special Risk Class membership as
1362 a law enforcement officer, firefighter, or correctional officer;
1363 however, a no certificate or waiver of certificate of compliance
1364 with s. 943.1395 or s. 633.35 is not shall be required for such
1365 service.
1366 (b) Contributions for upgrading the additional special risk
1367 credit must pursuant to this subsection shall be equal to the
1368 difference in the employer and, if applicable, employee
1369 contributions paid and the special risk percentage rate of gross
1370 salary in effect at the time of purchase for the period being
1371 claimed, plus interest thereon at the rate of 4 percent a year
1372 compounded annually from the date of such service until July 1,
1373 1975, and 6.5 percent a year thereafter until the date of
1374 payment. This past service may be purchased by the member or by
1375 the employer on behalf of the member.
1376 (7)(6) CREDIT FOR PRIOR SERVICE.—A special risk member who
1377 has creditable service with an employer under chapter 122 or
1378 chapter 321, or was employed as a correctional counselor with
1379 the Department of Corrections between December 1, 1970, and
1380 September 30, 1979, in a position that which satisfies the
1381 criteria provided for in subsection (3) (2) for Special Risk
1382 Class membership except the requirement for a certificate or
1383 waiver of certificate, shall have those years of service counted
1384 towards the attainment of the normal retirement date as a
1385 special risk member under this chapter. The percentage value of
1386 each such year of creditable service under chapter 122, chapter
1387 321, or as a correctional counselor may shall not change as a
1388 result of the application of this subsection. A special risk
1389 member who has taken a refund of contributions for such
1390 creditable service under chapter 122 or chapter 321 and has
1391 reclaimed it as prior service credit under this chapter shall be
1392 permitted to have such creditable service counted towards the
1393 attainment of the normal retirement date for the Special Risk
1394 Class of membership under this chapter.
1395 (8)(7) SPECIAL RISK ADMINISTRATIVE SUPPORT CLASS RETENTION
1396 OF SPECIAL RISK NORMAL RETIREMENT DATE.—
1397 (a) A special risk member who is moved or reassigned to a
1398 nonspecial risk law enforcement, firefighting, correctional, or
1399 emergency medical care administrative support position with the
1400 same agency, or who is subsequently employed in such a position
1401 within with any law enforcement, firefighting, correctional, or
1402 emergency medical care agency under the Florida Retirement
1403 System, shall participate in the Special Risk Administrative
1404 Support Class and shall earn credit for such service at the same
1405 percentage rate as that earned by a regular member.
1406 Notwithstanding the provisions of subsection (5) (4), service in
1407 such an administrative support position shall, for purposes of
1408 s. 121.091, applies apply toward satisfaction of the special
1409 risk normal retirement date, as defined in s. 121.021(29)(b) if,
1410 provided that, while in such position, the member remains
1411 certified as a law enforcement officer, firefighter,
1412 correctional officer, emergency medical technician, or
1413 paramedic; remains subject to reassignment at any time to a
1414 position qualifying for special risk membership; and completes
1415 an aggregate of the 6 or more years of service as a designated
1416 special risk member before prior to retirement which is equal to
1417 or greater than the years of service required to be vested.
1418 (b) Upon application by a member, the provisions of this
1419 subsection shall apply, with respect to such member,
1420 retroactively to October 1, 1978, if provided that the member
1421 was removed from the Special Risk Class effective October 1,
1422 1978, due to a change in special risk criteria as a result of
1423 the enactment of chapter 78-308, Laws of Florida, or was
1424 reassigned or employed for training or career development or to
1425 fill a critical agency need.
1426 (c) The department shall adopt such rules as are required
1427 to administer this subsection.
1428 (d) Notwithstanding any other provision of this subsection
1429 to the contrary, this subsection does not apply to any special
1430 risk member who qualifies for continued membership pursuant to
1431 the provisions of paragraph (3)(2)(k).
1432 (9)(8) RESTORATION OF SPECIAL RISK CREDIT FOR SPECIFIED
1433 PERIOD OF EMPLOYMENT.—A special risk member who was removed from
1434 the Special Risk Class effective October 1978, for the sole
1435 reason that he or she did not possess the required certificate
1436 or temporary waiver of certificate, and who obtained
1437 certification and was approved for Special Risk Class membership
1438 on or before June 30, 1982, may shall be permitted to have
1439 special risk credit restored for that period upon:
1440 (a) Certification by his or her employer that all
1441 requirements for Special Risk Class membership except the
1442 requirement for certification or temporary waiver of
1443 certification were met; and
1444 (b) Payment of contributions equal to the difference in the
1445 contributions that were paid during the period and the
1446 contributions required for special risk members during that
1447 period, plus 6.5 percent interest thereon, compounded each June
1448 30 from date of service until date of payment.
1449
1450 This credit may be purchased by the member or by the employer on
1451 behalf of the member.
1452 (10)(9) CREDIT FOR UPGRADED SERVICE.—
1453 (a) Any member of the Special Risk Class who has earned
1454 creditable service through September 30, 1999, in another
1455 membership class of the Florida Retirement System as an
1456 emergency medical technician or paramedic, which service is
1457 within the purview of the Special Risk Class, may purchase
1458 additional retirement credit to upgrade such service to Special
1459 Risk Class service, to the extent of the percentages of the
1460 member’s average final compensation provided in s.
1461 121.091(1)(a)2. Contributions for upgrading such service to
1462 Special Risk Class credit must under this subsection shall be
1463 equal to the difference in the contributions paid and the
1464 Special Risk Class contribution rate as a percentage of gross
1465 salary in effect for the period being claimed, plus interest
1466 thereon at the rate of 6.5 percent a year, compounded annually
1467 until the date of payment. This service credit may be purchased
1468 by the employer on behalf of the member.
1469 (b) Any member of the Special Risk Class who has earned
1470 creditable service through September 30, 2001, in another
1471 membership class of the Florida Retirement System whose
1472 responsibilities included fire prevention or firefighter
1473 training, which service is within the purview of the Special
1474 Risk Class, may purchase additional retirement credit to upgrade
1475 such service to Special Risk Class service, to the extent of the
1476 percentages of the member’s average final compensation provided
1477 in s. 121.091(1)(a)2. Contributions for upgrading such service
1478 to Special Risk Class credit must under this subsection shall be
1479 equal to the difference in the contributions paid and the
1480 Special Risk Class contribution rate as a percentage of gross
1481 salary in effect for the period being claimed, plus interest
1482 thereon at the rate of 6.5 percent a year, compounded annually
1483 until the date of payment. This service credit may be purchased
1484 by the employer on behalf of the member.
1485 (c) Any member of the Special Risk Class who has earned
1486 creditable service through June 30, 2008, in another membership
1487 class of the Florida Retirement System in a position with the
1488 Department of Law Enforcement or the Division of State Fire
1489 Marshal and became covered by the Special Risk Class as
1490 described in paragraph (3)(2)(i), or with a local government law
1491 enforcement agency or medical examiner’s office and became
1492 covered by the Special Risk Class as described in paragraph
1493 (3)(2)(j), which service is within the purview of the Special
1494 Risk Class, and is employed in such position on or after July 1,
1495 2008, may purchase additional retirement credit to upgrade such
1496 service to Special Risk Class service, to the extent of the
1497 percentages of the member’s average final compensation provided
1498 in s. 121.091(1)(a)2. The cost for such credit must shall be an
1499 amount representing the actuarial accrued liability for the
1500 difference in accrual value during the affected period of
1501 service. The cost shall be calculated using the discount rate
1502 and other relevant actuarial assumptions that were used to value
1503 the Florida Retirement System Pension defined benefit Plan
1504 liabilities in the most recent actuarial valuation. The division
1505 shall ensure that the transfer sum is prepared using a formula
1506 and methodology certified by an enrolled actuary. The cost must
1507 be paid immediately upon notification by the division. The local
1508 government employer may purchase the upgraded service credit on
1509 behalf of the member if the member has been employed by that
1510 employer for at least 3 years.
1511 Section 9. Paragraphs (a) and (d) of subsection (4),
1512 paragraph (b) of subsection (7), and subsections (8) and (10) of
1513 section 121.052, Florida Statutes, are amended, present
1514 paragraph (c) of subsection (7) of that section is redesignated
1515 as paragraph (d), and a new paragraph (c) is added to that
1516 subsection, to read:
1517 121.052 Membership class of elected officers.—
1518 (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
1519 TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.—
1520 (a) A Any duly elected officer whose term of office was
1521 shortened by legislative or judicial apportionment pursuant to
1522 the provisions of s. 16, Art. III of the State Constitution may,
1523 after the term of office to which he or she was elected is
1524 completed, pay into the Florida Retirement System Trust Fund the
1525 amount of contributions that would have been made by the officer
1526 or the officer’s employer on his or her behalf, plus 4 percent
1527 interest compounded annually from the date he or she left office
1528 until July 1, 1975, and 6.5 percent interest compounded annually
1529 thereafter, and may receive service credit for the length of
1530 time the officer would have served if such term had not been
1531 shortened by apportionment.
1532 (d)1. Any justice or judge, or any retired justice or judge
1533 who retired before July 1, 1993, who has attained the age of 70
1534 years and who is prevented under s. 8, Art. V of the State
1535 Constitution from completing his or her term of office because
1536 of age may elect to purchase credit for all or a portion of the
1537 months he or she would have served during the remainder of the
1538 term of office; however, but he or she may claim those months
1539 only after the date the service would have occurred. The justice
1540 or judge must pay into the Florida Retirement System Trust Fund
1541 the amount of contributions that would have been made by the
1542 employer on his or her behalf for the period of time being
1543 claimed, plus 6.5 percent interest thereon compounded each June
1544 30 from the date he or she left office, in order to receive
1545 service credit in this class for the period of time being
1546 claimed. After the date the service would have occurred, and
1547 upon payment of the required contributions, the retirement
1548 benefit of a retired justice or judge shall will be adjusted
1549 prospectively to include the this additional creditable service;
1550 however, such adjustment may be made only once.
1551 2. Any justice or judge who does not seek election to a
1552 subsequent term of office because he or she would be prevented
1553 under s. 8, Art. V of the State Constitution from completing
1554 such term of office upon attaining the age of 70 years may elect
1555 to purchase service credit for service as a temporary judge as
1556 assigned by the court if the temporary assignment follows
1557 immediately follows the last full term of office served and the
1558 purchase is limited to the number of months of service needed to
1559 vest retirement benefits. To receive retirement credit for such
1560 temporary service beyond termination, the justice or judge must
1561 pay into the Florida Retirement System Trust Fund the amount of
1562 contributions that would have been made by the justice or judge
1563 and the employer on his or her behalf had he or she continued in
1564 office for the period of time being claimed, plus 6.5 percent
1565 interest thereon compounded each June 30 from the date he or she
1566 left office.
1567 (7) CONTRIBUTIONS.—
1568 (b) The employer paying the salary of a member of the
1569 Elected Officers’ Class shall contribute an amount as specified
1570 in this subsection or s. 121.71, as appropriate, which shall
1571 constitute the entire employer retirement contribution with
1572 respect to such member. The employer shall also withhold one
1573 half of the entire contribution of the member required for
1574 social security coverage. Effective July 1, 2011, each member of
1575 the Elected Officers’ Class shall pay employee contributions as
1576 specified in s. 121.71.
1577 (c) If a member of the Elected Officers’ Class ceases to
1578 fill an office covered by this class for 3 calendar months for
1579 any reason other than retirement and has not been employed in
1580 any capacity with any participating employer for 3 calendar
1581 months, the member may receive a refund of all contributions he
1582 or she has made to the pension plan, subject to the restrictions
1583 otherwise provided in this chapter. Partial refunds are not
1584 permitted. The refund shall not include any interest earnings on
1585 the contributions for a member of the pension plan. Employer
1586 contributions made on behalf of the member are not refundable. A
1587 member may not receive a refund of employee contributions if a
1588 pending or an approved qualified domestic relations order is
1589 filed against the member’s retirement account. By obtaining a
1590 refund of contributions, a member waives all rights under the
1591 Florida Retirement System and the health insurance subsidy
1592 provided under s. 112.363 to the service credit represented by
1593 the refunded contributions, except the right to purchase his or
1594 her prior service credit in accordance with s. 121.081(2).
1595 (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.—A member
1596 of the Elected Officers’ Class shall have the same normal
1597 retirement date and vesting requirement, as those terms are
1598 defined in s. 121.021(29) and (45), for a member of the regular
1599 class of the Florida Retirement System. Any public service
1600 commissioner who was removed from the Elected State Officers’
1601 Class on July 1, 1979, after attaining at least 8 years of
1602 creditable service in that class is shall be considered to have
1603 reached the normal retirement date upon attaining age 62 as
1604 required in s. 121.021(29)(a).
1605 (10) ACCRUED SERVICE VALUE.—A member of the Elected
1606 Officers’ Class who is a Supreme Court justice, district court
1607 of appeal judge, circuit judge, or county court judge shall
1608 receive judicial retirement credit of 3 1/3 percent of average
1609 final compensation, and all other members shall receive elected
1610 officer accrual value retirement credit of 3 percent of average
1611 final compensation, for each year of creditable service in such
1612 class.
1613 Section 10. Paragraph (a) of subsection (7) of section
1614 121.053, Florida Statutes, is amended to read:
1615 121.053 Participation in the Elected Officers’ Class for
1616 retired members.—
1617 (7) A member who is elected or appointed to an elective
1618 office and who is participating in the Deferred Retirement
1619 Option Program is not subject to termination as defined in s.
1620 121.021, or reemployment limitations as provided in s.
1621 121.091(9), until the end of his or her current term of office
1622 or, if the officer is consecutively elected or reelected to an
1623 elective office eligible for coverage under the Florida
1624 Retirement System, until he or she no longer holds an elective
1625 office, as follows:
1626 (a) At the end of the 60-month DROP period:
1627 1. The officer’s DROP account may not accrue additional
1628 monthly benefits, but does continue to earn interest as provided
1629 in s. 121.091(13). However, an officer whose DROP participation
1630 begins on or after July 1, 2010, may not continue to earn such
1631 interest.
1632 2. Retirement contributions, except for unfunded actuarial
1633 liability and health insurance subsidy contributions required in
1634 ss. 121.71(5) and 121.76, are not required of the employer of
1635 the elected officer and additional retirement credit may not be
1636 earned under the Florida Retirement System.
1637 Section 11. Paragraphs (b) and (j) of subsection (1),
1638 paragraph (b) of subsection (3), paragraph (b) of subsection
1639 (4), and paragraphs (c), (d), and (e) of subsection (6) of
1640 section 121.055, Florida Statutes, are amended, present
1641 paragraph (c) of subsection (3) of that section is redesignated
1642 as paragraph (d), and a new paragraph (c) is added to that
1643 subsection, to read:
1644 121.055 Senior Management Service Class.—There is hereby
1645 established a separate class of membership within the Florida
1646 Retirement System to be known as the “Senior Management Service
1647 Class,” which shall become effective February 1, 1987.
1648 (1)
1649 (b)1. Except as provided in subparagraph 2., effective
1650 January 1, 1990, participation in the Senior Management Service
1651 Class is shall be compulsory for the president of each community
1652 college, the manager of each participating municipality city or
1653 county, and all appointed district school superintendents.
1654 Effective January 1, 1994, additional positions may be
1655 designated for inclusion in the Senior Management Service Class
1656 if of the Florida Retirement System, provided that:
1657 a. Positions to be included in the class are shall be
1658 designated by the local agency employer. Notice of intent to
1659 designate positions for inclusion in the class must shall be
1660 published once a week for 2 consecutive weeks in a newspaper of
1661 general circulation published in the county or counties
1662 affected, as provided in chapter 50.
1663 b. Up to 10 nonelective full-time positions may be
1664 designated for each local agency employer reporting to the
1665 department of Management Services; for local agencies with 100
1666 or more regularly established positions, additional nonelective
1667 full-time positions may be designated, not to exceed 1 percent
1668 of the regularly established positions within the agency.
1669 c. Each position added to the class must be a managerial or
1670 policymaking position filled by an employee who is not subject
1671 to continuing contract and serves at the pleasure of the local
1672 agency employer without civil service protection, and who:
1673 (I) Heads an organizational unit; or
1674 (II) Has responsibility to effect or recommend personnel,
1675 budget, expenditure, or policy decisions in his or her areas of
1676 responsibility.
1677 2. In lieu of participation in the Senior Management
1678 Service Class, members of the Senior Management Service Class,
1679 pursuant to the provisions of subparagraph 1., may withdraw from
1680 the Florida Retirement System altogether. The decision to
1681 withdraw from the Florida Retirement system is shall be
1682 irrevocable for as long as the employee holds the such a
1683 position. Any service creditable under the Senior Management
1684 Service Class shall be retained after the member withdraws from
1685 the Florida Retirement system; however, additional service
1686 credit in the Senior Management Service Class may shall not be
1687 earned after such withdrawal. Such members are shall not be
1688 eligible to participate in the Senior Management Service
1689 Optional Annuity Program.
1690 3. Effective January 1, 2006, through June 30, 2006, an
1691 employee who has withdrawn from the Florida Retirement System
1692 under subparagraph 2. has one opportunity to elect to
1693 participate in either the pension plan defined benefit program
1694 or the investment plan Public Employee Optional Retirement
1695 Program of the Florida Retirement System.
1696 a. If the employee elects to participate in the investment
1697 plan Public Employee Optional Retirement Program, membership
1698 shall be prospective, and the applicable provisions of s.
1699 121.4501(4) shall govern the election.
1700 b. If the employee elects to participate in the pension
1701 plan defined benefit program of the Florida Retirement System,
1702 the employee shall, upon payment to the system trust fund of the
1703 amount calculated under sub-sub-subparagraph (I), receive
1704 service credit for prior service based upon the time during
1705 which the employee had withdrawn from the system.
1706 (I) The cost for such credit shall be an amount
1707 representing the actuarial accrued liability for the affected
1708 period of service. The cost shall be calculated using the
1709 discount rate and other relevant actuarial assumptions that were
1710 used to value the pension Florida Retirement System defined
1711 benefit plan liabilities in the most recent actuarial valuation.
1712 The calculation must shall include any service already
1713 maintained under the pension defined benefit plan in addition to
1714 the period of withdrawal. The actuarial accrued liability
1715 attributable to any service already maintained under the pension
1716 defined benefit plan shall be applied as a credit to the total
1717 cost resulting from the calculation. The division must shall
1718 ensure that the transfer sum is prepared using a formula and
1719 methodology certified by an actuary.
1720 (II) The employee must transfer a sum representing the net
1721 cost owed for the actuarial accrued liability in sub-sub
1722 subparagraph (I) immediately following the time of such
1723 movement, determined assuming that attained service equals the
1724 sum of service in the pension plan defined benefit program and
1725 the period of withdrawal.
1726 (j) Except as may otherwise be provided, a any member of
1727 the Senior Management Service Class may purchase additional
1728 retirement credit in such class for creditable service within
1729 the purview of the Senior Management Service Class retroactive
1730 to February 1, 1987, and may upgrade retirement credit for such
1731 service, to the extent of 2 percent of the member’s average
1732 monthly compensation as specified in paragraph (4)(d) for such
1733 service. Contributions for upgrading the additional Senior
1734 Management Service credit must pursuant to this paragraph shall
1735 be equal to the difference in the employer and, if applicable,
1736 employee contributions paid and the Senior Management Service
1737 Class contribution rate as a percentage of gross salary in
1738 effect for the period being claimed, plus interest thereon at
1739 the rate of 6.5 percent a year, compounded annually until the
1740 date of payment. This service credit may be purchased by the
1741 employer on behalf of the member.
1742 (3)
1743 (b) The employer paying the salary of a member of the
1744 Senior Management Service Class shall contribute an amount as
1745 specified in this section or s. 121.71, as appropriate, which
1746 shall constitute the entire employer retirement contribution
1747 with respect to such member. The employer shall also withhold
1748 one-half of the entire contribution of the member required for
1749 social security coverage. Effective July 1, 2011, each member
1750 shall pay employee contributions as specified in s. 121.71.
1751 (c) Upon termination of employment from all participating
1752 employers for 3 calendar months for any reason other than
1753 retirement pursuant to s. 121.021(39)(c), a member may receive a
1754 refund of all contributions he or she has made to the pension
1755 plan, subject to the restrictions otherwise provided in this
1756 chapter. Partial refunds are not permitted. The refund shall not
1757 include any interest earnings on the contributions for a member
1758 of the pension plan. Employer contributions made on behalf of
1759 the member are not refundable. A member may not receive a refund
1760 of employee contributions if a pending or an approved qualified
1761 domestic relations order is filed against the member’s
1762 retirement account. By obtaining a refund of contributions, a
1763 member waives all rights under the Florida Retirement System and
1764 the health insurance subsidy provided under s. 112.363 to the
1765 service credit represented by the refunded contributions, except
1766 the right to purchase his or her prior service credit in
1767 accordance with s. 121.081(2).
1768 (4)
1769 (b) Service in an eligible position before prior to
1770 February 1, 1987, or after January 31, 1987, shall satisfy the
1771 requirement of attaining the normal retirement date as defined
1772 in s. 121.021(29) for a Senior Management Service Class member,
1773 if provided the employee is a member of the Senior Management
1774 Service Class after January 31, 1987. A member of this class who
1775 fails to complete the 6 years of creditable service required for
1776 vesting in an eligible position must shall be required to
1777 satisfy the requirements for the normal retirement date for a
1778 regular member as provided in s. 121.021(29) and vesting as
1779 provided in s. 121.021(45).
1780 (6)
1781 (c) Participation.—
1782 1. An eligible employee who is employed on or before
1783 February 1, 1987, may elect to participate in the optional
1784 annuity program in lieu of participating participation in the
1785 Senior Management Service Class. Such election must be made in
1786 writing and filed with the department and the personnel officer
1787 of the employer on or before May 1, 1987. An eligible employee
1788 who is employed on or before February 1, 1987, and who fails to
1789 make an election to participate in the optional annuity program
1790 by May 1, 1987, shall be deemed to have elected membership in
1791 the Senior Management Service Class.
1792 2. Except as provided in subparagraph 6., an employee who
1793 becomes eligible to participate in the optional annuity program
1794 by reason of initial employment commencing after February 1,
1795 1987, may, within 90 days after the date of commencing
1796 employment, elect to participate in the optional annuity
1797 program. Such election must be made in writing and filed with
1798 the personnel officer of the employer. An eligible employee who
1799 does not within 90 days after commencing employment elect to
1800 participate in the optional annuity program shall be deemed to
1801 have elected membership in the Senior Management Service Class.
1802 3. A person who is appointed to a position in the Senior
1803 Management Service Class and who is a member of an existing
1804 retirement system or the Special Risk or Special Risk
1805 Administrative Support Classes of the Florida Retirement System
1806 may elect to remain in such system or class in lieu of
1807 participating participation in the Senior Management Service
1808 Class or optional annuity program. Such election must be made in
1809 writing and filed with the department and the personnel officer
1810 of the employer within 90 days after of such appointment. An Any
1811 eligible employee who fails to make an election to participate
1812 in the existing system, the Special Risk Class of the Florida
1813 Retirement System, the Special Risk Administrative Support Class
1814 of the Florida Retirement System, or the optional annuity
1815 program shall be deemed to have elected membership in the Senior
1816 Management Service Class.
1817 4. Except as provided in subparagraph 5., an employee’s
1818 election to participate in the optional annuity program is
1819 irrevocable if the employee continues to be employed in an
1820 eligible position and continues to meet the eligibility
1821 requirements set forth in this paragraph.
1822 5. Effective from July 1, 2002, through September 30, 2002,
1823 an any active employee in a regularly established position who
1824 has elected to participate in the Senior Management Service
1825 Optional Annuity Program has one opportunity to choose to move
1826 from the Senior Management Service Optional Annuity Program to
1827 the Florida Retirement System Pension Plan System defined
1828 benefit program.
1829 a. The election must be made in writing and must be filed
1830 with the department and the personnel officer of the employer
1831 before October 1, 2002, or, in the case of an active employee
1832 who is on a leave of absence on July 1, 2002, within 90 days
1833 after the conclusion of the leave of absence. This election is
1834 irrevocable.
1835 b. The employee shall receive service credit under the
1836 pension plan defined benefit program of the Florida Retirement
1837 System equal to his or her years of service under the Senior
1838 Management Service Optional Annuity Program. The cost for such
1839 credit is the amount representing the present value of that
1840 employee’s accumulated benefit obligation for the affected
1841 period of service.
1842 c. The employee must transfer the total accumulated
1843 employer contributions and earnings on deposit in his or her
1844 Senior Management Service Optional Annuity Program account. If
1845 the transferred amount is not sufficient to pay the amount due,
1846 the employee must pay a sum representing the remainder of the
1847 amount due. The employee may not retain any employer
1848 contributions or earnings thereon from the Senior Management
1849 Service Optional Annuity Program account.
1850 6. A retiree of a state-administered retirement system who
1851 is initially reemployed on or after July 1, 2010, may not renew
1852 membership in the Senior Management Service Optional Annuity
1853 Program.
1854 (d) Contributions.—
1855 1.a. Through June 30, 2001, each employer shall contribute
1856 on behalf of each member of participant in the Senior Management
1857 Service Optional Annuity Program an amount equal to the normal
1858 cost portion of the employer retirement contribution which would
1859 be required if the member participant were a Senior Management
1860 Service Class member of the Florida Retirement System Pension
1861 Plan defined benefit program, plus the portion of the
1862 contribution rate required in s. 112.363(8) that would otherwise
1863 be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1864 b. Effective July 1, 2001, through June 30, 2011, each
1865 employer shall contribute on behalf of each member of
1866 participant in the optional program an amount equal to 12.49
1867 percent of the employee’s participant’s gross monthly
1868 compensation.
1869 c. Effective July 1, 2011, each member of the optional
1870 annuity program shall contribute an amount equal to the employee
1871 contribution required under s. 121.71(3). The employer shall
1872 contribute on behalf of such employee an amount equal to the
1873 difference between 12.49 percent of the employee’s gross monthly
1874 compensation and the amount equal to the employee’s required
1875 contribution based on the employee’s gross monthly compensation.
1876 d. The department shall deduct an amount approved by the
1877 Legislature to provide for the administration of this program.
1878 The Payment of the contributions, including contributions made
1879 by the employee, to the optional program which is required by
1880 this subparagraph for each participant shall be made by the
1881 employer to the department, which shall forward the
1882 contributions to the designated company or companies contracting
1883 for payment of benefits for the member participant under the
1884 program.
1885 2. Each employer shall contribute on behalf of each member
1886 of participant in the Senior Management Service Optional Annuity
1887 Program an amount equal to the unfunded actuarial accrued
1888 liability portion of the employer contribution which would be
1889 required for members of the Senior Management Service Class in
1890 the Florida Retirement System. This contribution shall be paid
1891 to the department for transfer to the Florida Retirement System
1892 Trust Fund.
1893 3. An Optional Annuity Program Trust Fund shall be
1894 established in the State Treasury and administered by the
1895 department to make payments to provider companies on behalf of
1896 the optional annuity program members participants, and to
1897 transfer the unfunded liability portion of the state optional
1898 annuity program contributions to the Florida Retirement System
1899 Trust Fund.
1900 4. Contributions required for social security by each
1901 employer and employee each participant, in the amount required
1902 for social security coverage as now or hereafter may be provided
1903 by the federal Social Security Act shall be maintained for each
1904 member of participant in the Senior Management Service
1905 retirement program and are shall be in addition to the
1906 retirement contributions specified in this paragraph.
1907 5. Each member of participant in the Senior Management
1908 Service Optional Annuity Program may contribute by way of salary
1909 reduction or deduction a percentage amount of the employee’s
1910 participant’s gross compensation not to exceed the percentage
1911 amount contributed by the employer to the optional annuity
1912 program. Payment of the employee’s participant’s contributions
1913 shall be made by the employer to the department, which shall
1914 forward the contributions to the designated company or companies
1915 contracting for payment of benefits for the member participant
1916 under the program.
1917 (e) Benefits.—
1918 1. Benefits under the Senior Management Service Optional
1919 Annuity Program are payable only to members of participants in
1920 the program, or their beneficiaries as designated by the member
1921 participant in the contract with the provider company, and must
1922 be paid by the designated company in accordance with the terms
1923 of the annuity contract applicable to the member participant. A
1924 member participant must be terminated from all employment
1925 relationships with Florida Retirement System employers for 3
1926 calendar months as provided in s. 121.021(39) to begin receiving
1927 the employer-funded and employee-funded benefit. The member must
1928 meet the definition of termination in s. 121.021(39) beginning
1929 the month after receiving a benefit, including a distribution.
1930 Benefits funded by employer and employee contributions are
1931 payable under the terms of the contract to the member
1932 participant, his or her beneficiary, or his or her estate, in
1933 addition to:
1934 a. A lump-sum payment to the beneficiary upon the death of
1935 the member participant;
1936 b. A cash-out of a de minimis account upon the request of a
1937 former member participant who has been terminated for a minimum
1938 of 6 calendar months from the employment that entitled him or
1939 her to optional annuity program participation. Such cash-out
1940 must be a complete liquidation of the account balance with that
1941 company and is subject to the Internal Revenue Code;
1942 c. A mandatory distribution of a de minimis account of a
1943 former member participant who has been terminated for a minimum
1944 of 6 calendar months from the employment that entitled him or
1945 her to optional annuity program participation as authorized by
1946 the department; or
1947 d. A lump-sum direct rollover distribution whereby all
1948 accrued benefits, plus interest and investment earnings, are
1949 paid from the member’s participant’s account directly to the
1950 custodian of an eligible retirement plan, as defined in s.
1951 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
1952 member participant.
1953 2. Under the Senior Management Service Optional Annuity
1954 Program, benefits, including employee contributions, are not
1955 payable for employee hardships, unforeseeable emergencies,
1956 loans, medical expenses, educational expenses, purchase of a
1957 principal residence, payments necessary to prevent eviction or
1958 foreclosure on an employee’s principal residence, or any other
1959 reason before termination from all employment relationships with
1960 participating employers for 3 calendar months.
1961 3.2. The benefits payable to any person under the Senior
1962 Management Service Optional Annuity Program, and any
1963 contribution accumulated under such program, are not subject to
1964 assignment, execution, or attachment or to any legal process
1965 whatsoever.
1966 4.3. Except as provided in subparagraph 5. 4., a member
1967 participant who terminates employment and receives a
1968 distribution, including a rollover or trustee-to-trustee
1969 transfer, funded by employer and required employee contributions
1970 is shall be deemed to be retired from a state-administered
1971 retirement system if the member participant is subsequently
1972 employed with an employer that participates in the Florida
1973 Retirement System.
1974 5.4. A member participant who receives optional annuity
1975 program benefits funded by employer and employee contributions
1976 as a mandatory distribution of a de minimis account authorized
1977 by the department is not considered a retiree.
1978
1979 As used in this paragraph, a “de minimis account” means an
1980 account with a provider company containing employer and employee
1981 contributions and accumulated earnings of not more than $5,000
1982 made under this chapter.
1983 Section 12. Subsection (2) of section 121.061, Florida
1984 Statutes, is amended to read:
1985 121.061 Funding.—
1986 (2)(a) Should any employer other than a state employer fail
1987 to make the retirement and social security contributions, both
1988 member and employer contributions, required by this chapter,
1989 then, upon request by the administrator, the Department of
1990 Revenue or the Department of Financial Services, as the case may
1991 be, shall deduct the amount owed by the employer from any funds
1992 to be distributed by it to the county, municipality city,
1993 metropolitan planning organization, special district, or
1994 consolidated form of government. The amounts so deducted shall
1995 be transferred to the administrator for further distribution to
1996 the trust funds in accordance with this chapter.
1997 (b) Should any employer for whom the municipality city or
1998 county tax collector collects taxes, fail to make the retirement
1999 and social security contributions required by this chapter, the
2000 tax collector, at the request of the administrator and upon
2001 receipt of a certificate from the administrator showing the
2002 amount owed by the employer, shall deduct the amount so
2003 certified from any taxes collected for the employer and remit
2004 the amount to the administrator for further distribution to the
2005 trust funds in accordance with this chapter.
2006 (c) The governing body of each county, municipality city,
2007 metropolitan planning organization, special district, or
2008 consolidated form of government participating under this chapter
2009 or the administrator, acting individually or jointly, is hereby
2010 authorized to file and maintain an action in the courts of the
2011 state to require any employer to remit any retirement or social
2012 security member contributions or employer matching payments due
2013 the retirement or social security trust funds under the
2014 provisions of this chapter.
2015 (d) Should the income of any constitutional fee officer, in
2016 any year, be insufficient to make the matching payments required
2017 by this chapter, the board of county commissioners shall provide
2018 such fee officer sufficient funds to make these required
2019 payments when due.
2020 Section 13. Subsections (2) and (5) and paragraph (c) of
2021 subsection (6) of section 121.071, Florida Statutes, are
2022 amended, present paragraph (d) of subsection (6) of that section
2023 is redesignated as paragraph (e), a new paragraph (d) is added
2024 to that subsection, and subsection (7) is added to that section,
2025 to read:
2026 121.071 Contributions.—Contributions to the system shall be
2027 made as follows:
2028 (2)(a) Effective January 1, 1975, or October 1, 1975, as
2029 applicable, and through June 30, 2011, each employer shall make
2030 accomplish the contribution required by subsection (1) by a
2031 procedure in which no employee’s gross salary is shall be
2032 reduced. Effective July 1, 2011, each employer and employee
2033 shall pay retirement contributions as specified in s. 121.71.
2034 (b) Upon termination of employment from all participating
2035 employers for 3 calendar months for any reason other than
2036 retirement pursuant to s. 121.021(39)(c), a member may receive
2037 shall be entitled to a full refund of all the contributions he
2038 or she has made to the pension prior or subsequent to
2039 participation in the noncontributory plan, subject to the
2040 restrictions otherwise provided in this chapter. Partial refunds
2041 are not permitted. The refund may not include any interest
2042 earnings on the contributions for a member of the pension plan.
2043 Employer contributions made on behalf of the member are not
2044 refundable. A member may not receive a refund of employee
2045 contributions if a pending or an approved qualified domestic
2046 relations order is filed against his or her retirement account.
2047 By obtaining a refund of contributions, a member waives all
2048 rights under the Florida Retirement System and the health
2049 insurance subsidy to the service credit represented by the
2050 refunded contributions, except the right to purchase his or her
2051 prior service credit in accordance with s. 121.081(2).
2052 (5) Contributions made in accordance with subsections (1),
2053 (2), (3), and (4), and s. 121.71 shall be paid by the employer
2054 into the system trust funds in accordance with rules adopted by
2055 the administrator pursuant to chapter 120, except as may be
2056 otherwise specified herein. Effective July 1, 2002,
2057 contributions paid under subsections (1) and (4) and
2058 accompanying payroll data are due and payable no later than the
2059 5th working day of the month immediately following the month
2060 during which the payroll period ended.
2061 (6)
2062 (c) By obtaining a refund of contributions, a member waives
2063 all rights under the Florida Retirement System and the health
2064 insurance subsidy as provided in s. 112.363 to the service
2065 credit represented by the refunded contributions, except the
2066 right to purchase his or her prior service credit in accordance
2067 with s. 121.081(2).
2068 (d) If a member or former member of the pension plan
2069 receives an invalid refund from the Florida Retirement System
2070 Trust Fund, such person must repay the full amount of the
2071 invalid refund, plus interest at 6.5 percent compounded annually
2072 on each June 30 from the date of refund until full payment is
2073 made to the trust fund. The invalid refund must be repaid before
2074 the member retires or, if applicable, transfers to the
2075 investment plan.
2076 (7) Before termination of employment, benefits, including
2077 employee contributions, are not payable under the pension plan
2078 for employee hardships, unforeseeable emergencies, loans,
2079 medical expenses, educational expenses, purchase of a principal
2080 residence, payments necessary to prevent eviction or foreclosure
2081 on an employee’s principal residence, or any other reason before
2082 termination from all employment relationships with participating
2083 employers.
2084 Section 14. Paragraphs (b) and (c) of subsection (1) and
2085 subsection (2) of section 121.081, Florida Statutes, are amended
2086 to read:
2087 121.081 Past service; prior service; contributions.
2088 Conditions under which past service or prior service may be
2089 claimed and credited are:
2090 (1)
2091 (b) Past service earned after January 1, 1975, may be
2092 claimed by officers or employees of a municipality, metropolitan
2093 planning organization, charter school, charter technical career
2094 center, or special district who become a covered group under
2095 this system. The governing body of a covered group may elect to
2096 provide benefits for past service earned after January 1, 1975,
2097 in accordance with this chapter., and The cost for such past
2098 service is established by applying the following formula: The
2099 employer shall contribute an amount equal to the employer
2100 contribution rate in effect at the time the service was earned
2101 and, if applicable, the employee contribution rate, multiplied
2102 by the employee’s gross salary for each year of past service
2103 claimed, plus 6.5 percent 6.5-percent interest thereon,
2104 compounded annually, for figured on each year of past service,
2105 with interest compounded from date of annual salary earned until
2106 date of payment.
2107 (c) If an employer joins the Florida Retirement System and
2108 does Should the employer not elect to provide past service for
2109 the member at the time of joining, then the member may claim and
2110 pay for the service as provided in same, based on paragraphs (a)
2111 and (b).
2112 (2) Prior service, as defined in s. 121.021(19), may be
2113 claimed as creditable service under the Florida Retirement
2114 System after a member has been reemployed for 1 complete year of
2115 creditable service within a period of 12 consecutive months,
2116 except as provided in paragraph (c). Service performed as a
2117 member participant of the optional retirement program for the
2118 State University System under s. 121.35 or the Senior Management
2119 Service Optional Annuity Program under s. 121.055 may be used to
2120 satisfy the reemployment requirement of 1 complete year of
2121 creditable service. The member shall not be permitted to make
2122 any contributions for prior service until after completion of
2123 the 1 year of creditable service. If a member does not wish to
2124 claim credit for all of his or her prior service, the service
2125 the member claims must be the most recent period of service. The
2126 required contributions for claiming the various types of prior
2127 service are:
2128 (a) For prior service performed before prior to the date
2129 the system becomes noncontributory for the member and for which
2130 the member had credit under one of the existing retirement
2131 systems and received a refund of contributions upon termination
2132 of employment, the member shall contribute 4 percent of all
2133 salary received during the period being claimed, plus 4 percent
2134 4-percent interest compounded annually from date of refund until
2135 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
2136 annually thereafter, until full payment is made to the Florida
2137 Retirement System Trust Fund, and shall receive credit in the
2138 Regular Class. A member who elected to transfer to the Florida
2139 Retirement System from an existing system may receive credit for
2140 prior service under the existing system if he or she was
2141 eligible under the existing system to claim the prior service at
2142 the time of the transfer. Contributions for such prior service
2143 shall be determined by the applicable provisions of the system
2144 under which the prior service is claimed and shall be paid by
2145 the member, with matching contributions paid by the employer at
2146 the time the service was performed. Effective July 1, 1978, the
2147 account of a person who terminated under s. 238.05(3) may not be
2148 charged interest for contributions that remained on deposit in
2149 the Annuity Savings Trust Fund established under chapter 238,
2150 upon retirement under this chapter or chapter 238.
2151 (b) For prior service performed before prior to the date
2152 the system becomes noncontributory for the member and for which
2153 the member had credit under the Florida Retirement System and
2154 received a refund of contributions upon termination of
2155 employment, the member shall contribute at the rate that was
2156 required of him or her during the period of service being
2157 claimed, on all salary received during such period, plus 4
2158 percent 4-percent interest compounded annually from date of
2159 refund until July 1, 1975, and 6.5 percent 6.5-percent interest
2160 compounded annually thereafter, until the full payment is made
2161 to the Florida Retirement System Trust Fund, and shall receive
2162 credit in the membership class in which the member participated
2163 during the period claimed.
2164 (c) For prior service as defined in s. 121.021(19)(b) and
2165 (c) during which no contributions were made because the member
2166 did not participate in a retirement system, the member shall
2167 contribute 14.38 percent of all salary received during such
2168 period or 14.38 percent of $100 per month during such period,
2169 whichever is greater, plus 4 percent 4-percent interest
2170 compounded annually from the first year of service claimed until
2171 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
2172 annually thereafter, until full payment is made to the
2173 Retirement Trust Fund, and shall receive credit in the Regular
2174 Class.
2175 (d) In order to claim credit for prior service as defined
2176 in s. 121.021(19)(d) for which no retirement contributions were
2177 paid during the period of such service, the member shall
2178 contribute the total employee and employer contributions which
2179 were required to be made to the Highway Patrol Pension Trust
2180 Fund, as provided in chapter 321, during the period claimed,
2181 plus 4 percent 4-percent interest compounded annually from the
2182 first year of service until July 1, 1975, and 6.5 percent 6.5
2183 percent interest compounded annually thereafter, until full
2184 payment is made to the Retirement Trust Fund. However, any
2185 governmental entity that which employed such member may elect to
2186 pay up to 50 percent of the contributions and interest required
2187 to purchase the this prior service credit. The service shall be
2188 credited in accordance with the provisions of the Highway Patrol
2189 Pension Plan in effect during the period claimed unless the
2190 member terminated and withdrew his or her retirement
2191 contributions and was thereafter enrolled in the State and
2192 County Officers and Employees’ Retirement System or the Florida
2193 Retirement System, in which case the service shall be credited
2194 as Regular Class service.
2195 (e) For service performed under the Florida Retirement
2196 System after December 1, 1970, which that was never reported to
2197 the division or the department due to error, retirement credit
2198 may be claimed by a member of the Florida Retirement System. The
2199 department shall adopt rules establishing criteria for claiming
2200 such credit and detailing the documentation required to
2201 substantiate the error.
2202 (f) For prior service performed on or after July 1, 2011,
2203 for which the member had credit under the Florida Retirement
2204 System and received a refund of contributions 3 calendar months
2205 after termination of employment, the member shall contribute at
2206 the rate that was required during the period of service being
2207 claimed, plus 6.5 percent interest, compounded annually on each
2208 June 30 from date of refund until the full payment is made to
2209 the Florida Retirement System Trust Fund, and receive credit in
2210 the membership class in which the member participated during the
2211 period claimed.
2212 (g)(f) The employer may not be required to make
2213 contributions for prior service credit for any member, except
2214 that the employer shall pay the employer portion of
2215 contributions for any legislator who elects to withdraw from the
2216 Florida Retirement System and later rejoins the system and pays
2217 any employee contributions required in accordance with s.
2218 121.052(3)(d).
2219 Section 15. Paragraphs (a) and (b) of subsection (3),
2220 paragraphs (a) and (j) of subsection (4), paragraphs (a) and (c)
2221 of subsection (5), paragraph (d) of subsection (9), paragraphs
2222 (a) and (c) of subsection (13), and paragraph (d) of subsection
2223 (14) of section 121.091, Florida Statutes, are amended to read:
2224 121.091 Benefits payable under the system.—Benefits may not
2225 be paid under this section unless the member has terminated
2226 employment as provided in s. 121.021(39)(a) or begun
2227 participation in the Deferred Retirement Option Program as
2228 provided in subsection (13), and a proper application has been
2229 filed in the manner prescribed by the department. The department
2230 may cancel an application for retirement benefits when the
2231 member or beneficiary fails to timely provide the information
2232 and documents required by this chapter and the department’s
2233 rules. The department shall adopt rules establishing procedures
2234 for application for retirement benefits and for the cancellation
2235 of such application when the required information or documents
2236 are not received.
2237 (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
2238 early retirement date, the member shall receive an immediate
2239 monthly benefit that shall begin to accrue on the first day of
2240 the month of the retirement date and be payable on the last day
2241 of that month and each month thereafter during his or her
2242 lifetime. Such benefit shall be calculated as follows:
2243 (a) For a member initially enrolled:
2244 1. Before July 1, 2011, the amount of each monthly payment
2245 shall be computed in the same manner as for a normal retirement
2246 benefit, in accordance with subsection (1), but shall be based
2247 on the member’s average monthly compensation and creditable
2248 service as of the member’s early retirement date. The benefit so
2249 computed shall be reduced by five-twelfths of 1 percent for each
2250 complete month by which the early retirement date precedes the
2251 normal retirement date of age 62 for a member of the Regular
2252 Class, Senior Management Service Class, or the Elected Officers’
2253 Class, and age 55 for a member of the Special Risk Class, or age
2254 52 if a Special Risk member has completed 25 years of creditable
2255 service in accordance with s. 121.021(29)(b)1.c.
2256 121.021(29)(b)3.
2257 2. On or after July 1, 2011, the amount of each monthly
2258 payment shall be computed in the same manner as for a normal
2259 retirement benefit, in accordance with subsection (1), but shall
2260 be based on the member’s average monthly compensation and
2261 creditable service as of the member’s early retirement date. The
2262 benefit so computed shall be reduced by five-twelfths of 1
2263 percent for each complete month by which the early retirement
2264 date precedes the normal retirement date of age 65 for a member
2265 of the Regular Class, Senior Management Service Class, or the
2266 Elected Officers’ Class, and age 60 for a member of the Special
2267 Risk Class, or age 57 if a special risk member has completed 30
2268 years of creditable service in accordance with s.
2269 121.021(29)(b)2.c.
2270 (b) If the employment of a member is terminated by reason
2271 of death within 10 years before normal retirement as described
2272 in s. 121.021(29)(a)1.b. or s. 121.021(29)(a)2.b. subsequent to
2273 the completion of 20 years of creditable service, the monthly
2274 benefit payable to the member’s beneficiary shall be calculated
2275 in accordance with subsection (1), but must shall be based on
2276 average monthly compensation and creditable service as of the
2277 date of death. The benefit so computed shall be reduced by five
2278 twelfths of 1 percent for each complete month by which death
2279 precedes the normal retirement date specified above or the date
2280 on which the member would have attained the normal retirement
2281 date 30 years of creditable service had he or she survived and
2282 continued his or her employment, whichever provides a higher
2283 benefit.
2284 (4) DISABILITY RETIREMENT BENEFIT.—
2285 (a) Disability retirement; entitlement and effective date.—
2286 1.a. A member who becomes totally and permanently disabled,
2287 as defined in paragraph (b), after completing 5 years of
2288 creditable service, or a member who becomes totally and
2289 permanently disabled in the line of duty regardless of service,
2290 is shall be entitled to a monthly disability benefit; except
2291 that any member with less than 5 years of creditable service on
2292 July 1, 1980, or any person who becomes a member of the Florida
2293 Retirement System on or after such date must have completed 10
2294 years of creditable service before prior to becoming totally and
2295 permanently disabled in order to receive disability retirement
2296 benefits for any disability which occurs other than in the line
2297 of duty. However, if a member employed on July 1, 1980, who has
2298 with less than 5 years of creditable service as of that date,
2299 becomes totally and permanently disabled after completing 5
2300 years of creditable service and is found not to have attained
2301 fully insured status for benefits under the federal Social
2302 Security Act, such member is shall be entitled to a monthly
2303 disability benefit.
2304 b. Effective July 1, 2001, a member of the pension plan
2305 defined benefit retirement program who becomes totally and
2306 permanently disabled, as defined in paragraph (b), after
2307 completing 8 years of creditable service, or a member who
2308 becomes totally and permanently disabled in the line of duty
2309 regardless of service, is shall be entitled to a monthly
2310 disability benefit.
2311 2. If the division has received from the employer the
2312 required documentation of the member’s termination of
2313 employment, the effective retirement date for a member who
2314 applies and is approved for disability retirement shall be
2315 established by rule of the division.
2316 3. For a member who is receiving Workers’ Compensation
2317 payments, the effective disability retirement date may not
2318 precede the date the member reaches Maximum Medical Improvement
2319 (MMI), unless the member terminates employment before prior to
2320 reaching MMI.
2321 (j) Disability retirement of justice or judge by order of
2322 Supreme Court.—
2323 1. If a member is a justice of the Supreme Court, judge of
2324 a district court of appeal, circuit judge, or judge of a county
2325 court who has served for the number of years equal to, or
2326 greater than, the vesting requirement in s. 121.021(45) 6 years
2327 or more as an elected constitutional judicial officer, including
2328 service as a judicial officer, in any court abolished pursuant
2329 to Art. V of the State Constitution, and who is retired for
2330 disability by order of the Supreme Court upon recommendation of
2331 the Judicial Qualifications Commission pursuant to the
2332 provisions of Art. V of the State Constitution, the member’s
2333 Option 1 monthly benefit as provided in subparagraph (6)(a)1.
2334 may shall not be less than two-thirds of his or her monthly
2335 compensation as of the member’s disability retirement date. Such
2336 a member may alternatively elect to receive a disability
2337 retirement benefit under any other option as provided in
2338 paragraph (6)(a).
2339 2. Should any justice or judge who is a member of the
2340 Florida Retirement System be retired for disability by order of
2341 the Supreme Court upon recommendation of the Judicial
2342 Qualifications Commission pursuant to the provisions of Art. V
2343 of the State Constitution, then all contributions to his or her
2344 account and all contributions made on his or her behalf by the
2345 employer shall be transferred to and deposited in the General
2346 Revenue Fund of the state, and there is hereby appropriated
2347 annually out of the General Revenue Fund, to be paid into the
2348 Florida Retirement System Fund, an amount necessary to pay the
2349 benefits of all justices and judges retired from the Florida
2350 Retirement System pursuant to Art. V of the State Constitution.
2351 (5) TERMINATION BENEFITS.—A member whose employment is
2352 terminated prior to retirement retains membership rights to
2353 previously earned member-noncontributory service credit, and to
2354 member-contributory service credit, if the member leaves the
2355 member contributions on deposit in his or her retirement
2356 account. If a terminated member receives a refund of member
2357 contributions, such member may reinstate membership rights to
2358 the previously earned service credit represented by the refund
2359 by completing 1 year of creditable service and repaying the
2360 refunded member contributions, plus interest.
2361 (a) A member whose employment is terminated for any reason
2362 other than death or retirement before prior to becoming vested
2363 is entitled to the return of his or her accumulated
2364 contributions as of the date of termination. Effective July 1,
2365 2011, upon termination of employment from all participating
2366 employers for 3 calendar months as defined in s. 121.021(39)(c)
2367 for any reason other than retirement, a member may receive a
2368 refund of all contributions he or she has made to the pension
2369 plan, subject to the restrictions otherwise provided in this
2370 chapter. The refund may be received as a lump-sum payment, a
2371 rollover to a qualified plan, or a combination of these methods.
2372 Partial refunds are not permitted. The refund may not include
2373 any interest earnings on the contributions for a member of the
2374 pension plan. Employer contributions made on behalf of the
2375 member are not refundable. A member may not receive a refund of
2376 employee contributions if a pending or an approved qualified
2377 domestic relations order is filed against his or her retirement
2378 account. By obtaining a refund of contributions, a member waives
2379 all rights under the Florida Retirement System and the health
2380 insurance subsidy to the service credit represented by the
2381 refunded contributions, except the right to purchase his or her
2382 prior service credit in accordance with s. 121.081(2).
2383 (c) In lieu of the deferred monthly benefit provided in
2384 paragraph (b), the terminated member may elect to receive a
2385 lump-sum amount equal to his or her accumulated contributions as
2386 of the date of termination. Effective July 1, 2011, upon
2387 termination of employment from all participating employers for 3
2388 calendar months as defined in s. 121.021(39)(c) for any reason
2389 other than retirement, a member may receive a refund of all
2390 contributions he or she has made to the pension plan, subject to
2391 the restrictions otherwise provided in this chapter. Partial
2392 refunds are not permitted. The refund may not include any
2393 interest earnings on the contributions for a member of the
2394 pension plan. Employer contributions made on behalf of the
2395 member are not refundable. A member may not receive a refund of
2396 employee contributions if a pending or an approved qualified
2397 domestic relations order is filed against his or her retirement
2398 account. By obtaining a refund of contributions, a member waives
2399 all rights under the Florida Retirement System and the health
2400 insurance subsidy to the service credit represented by the
2401 refunded contributions, except the right to purchase his or her
2402 prior service credit in accordance with s. 121.081(2).
2403 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
2404 (d) The provisions of This subsection applies apply to
2405 retirees, as defined in s. 121.4501(2), of the Florida
2406 Retirement System Investment Plan Public Employee Optional
2407 Retirement Program, subject to the following conditions:
2408 1. A retiree The retirees may not be reemployed with an
2409 employer participating in the Florida Retirement System until
2410 such person has been retired for 6 calendar months.
2411 2. A retiree employed in violation of this subsection and
2412 an employer that employs or appoints such person are jointly and
2413 severally liable for reimbursement of any benefits paid to the
2414 retirement trust fund from which the benefits were paid,
2415 including the Retirement System Trust Fund and the Public
2416 Employee Optional Retirement Program Trust Fund, as appropriate.
2417 The employer must have a written statement from the retiree that
2418 he or she is not retired from a state-administered retirement
2419 system.
2420 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
2421 subject to this section, the Deferred Retirement Option Program,
2422 hereinafter referred to as DROP, is a program under which an
2423 eligible member of the Florida Retirement System may elect to
2424 participate, deferring receipt of retirement benefits while
2425 continuing employment with his or her Florida Retirement System
2426 employer. The deferred monthly benefits shall accrue in the
2427 Florida Retirement System on behalf of the member participant,
2428 plus interest compounded monthly, for the specified period of
2429 the DROP participation, as provided in paragraph (c). Upon
2430 termination of employment, the member participant shall receive
2431 the total DROP benefits and begin to receive the previously
2432 determined normal retirement benefits. Participation in the DROP
2433 does not guarantee employment for the specified period of DROP.
2434 Participation in DROP by an eligible member beyond the initial
2435 60-month period as authorized in this subsection shall be on an
2436 annual contractual basis for all participants.
2437 (a) Eligibility of member to participate in DROP.—All
2438 active Florida Retirement System members in a regularly
2439 established position, and all active members of the Teachers’
2440 Retirement System established in chapter 238 or the State and
2441 County Officers’ and Employees’ Retirement System established in
2442 chapter 122, which are consolidated within the Florida
2443 Retirement System under s. 121.011, are eligible to elect
2444 participation in DROP if:
2445 1. The member is not a renewed member under s. 121.122 or a
2446 member of the State Community College System Optional Retirement
2447 Program under s. 121.051, the Senior Management Service Optional
2448 Annuity Program under s. 121.055, or the optional retirement
2449 program for the State University System under s. 121.35.
2450 2. Except as provided in subparagraph 6., election to
2451 participate is made within 12 months immediately following the
2452 date on which the member first reaches normal retirement date,
2453 or, for a member who reaches normal retirement date based on
2454 service before he or she reaches age 62, or age 55 for Special
2455 Risk Class members, election to participate may be deferred to
2456 the 12 months immediately following the date the member attains
2457 age 57, or age 52 for Special Risk Class members. A member who
2458 delays DROP participation during the 12-month period immediately
2459 following his or her maximum DROP deferral date, except as
2460 provided in subparagraph 6., loses a month of DROP participation
2461 for each month delayed. A member who fails to make an election
2462 within the 12-month limitation period forfeits all rights to
2463 participate in DROP. The member shall advise his or her employer
2464 and the division in writing of the date DROP begins. The
2465 beginning date may be subsequent to the 12-month election period
2466 but must be within the original 60-month participation period
2467 provided in subparagraph (b)1. When establishing eligibility of
2468 the member to participate in DROP, the member may elect to
2469 include or exclude any optional service credit purchased by the
2470 member from the total service used to establish the normal
2471 retirement date. A member who has dual normal retirement dates
2472 is eligible to elect to participate in DROP after attaining
2473 normal retirement date in either class.
2474 3. The employer of a member electing to participate in
2475 DROP, or employers if dually employed, shall acknowledge in
2476 writing to the division the date the member’s participation in
2477 DROP begins and the date the member’s employment and DROP
2478 participation terminates will terminate.
2479 4. Simultaneous employment of a member participant by
2480 additional Florida Retirement System employers subsequent to the
2481 commencement of a member’s participation in DROP is permissible
2482 if such employers acknowledge in writing a DROP termination date
2483 no later than the member’s participant’s existing termination
2484 date or the maximum participation period provided in
2485 subparagraph (b)1.
2486 5. A member DROP participant may change employers while
2487 participating in DROP, subject to the following:
2488 a. A change of employment takes must take place without a
2489 break in service so that the member receives salary for each
2490 month of continuous DROP participation. If a member receives no
2491 salary during a month, DROP participation ceases shall cease
2492 unless the employer verifies a continuation of the employment
2493 relationship for such member participant pursuant to s.
2494 121.021(39)(b).
2495 b. The member Such participant and new employer shall
2496 notify the division of the identity of the new employer on forms
2497 required by the division.
2498 c. The new employer acknowledges shall acknowledge, in
2499 writing, the member’s participant’s DROP termination date, which
2500 may be extended but not beyond the maximum participation period
2501 provided in subparagraph (b)1., acknowledges shall acknowledge
2502 liability for any additional retirement contributions and
2503 interest required if the member participant fails to timely
2504 terminate employment, and is subject to the adjustment required
2505 in sub-subparagraph (c)5.d.
2506 6. Effective July 1, 2001, for instructional personnel as
2507 defined in s. 1012.01(2), election to participate in DROP may be
2508 made at any time following the date on which the member first
2509 reaches normal retirement date. The member shall advise his or
2510 her employer and the division in writing of the date on which
2511 DROP begins. When establishing eligibility of the member to
2512 participate in DROP for the 60-month participation period
2513 provided in subparagraph (b)1., the member may elect to include
2514 or exclude any optional service credit purchased by the member
2515 from the total service used to establish the normal retirement
2516 date. A member who has dual normal retirement dates is eligible
2517 to elect to participate in either class.
2518 (c) Benefits payable under DROP.—
2519 1. Effective on the date of DROP participation, the
2520 member’s initial normal monthly benefit, including creditable
2521 service, optional form of payment, and average final
2522 compensation, and the effective date of retirement are fixed.
2523 The beneficiary established under the Florida Retirement System
2524 is the beneficiary eligible to receive any DROP benefits payable
2525 if the DROP participant dies before completing the period of
2526 DROP participation. If a joint annuitant predeceases the member,
2527 the member may name a beneficiary to receive accumulated DROP
2528 benefits payable. The retirement benefit, the annual cost of
2529 living adjustments provided in s. 121.101, and interest accrue
2530 monthly in the Florida Retirement System Trust Fund. For members
2531 whose DROP participation begins:
2532 a. Before July 1, 2011, the interest accrues at an
2533 effective annual rate of 6.5 percent compounded monthly, on the
2534 prior month’s accumulated ending balance, up to the month of
2535 termination or death, except as provided in s. 121.053(7).
2536 b. On or after July 1, 2011, the interest accrues at an
2537 effective annual rate of 1.3 percent, compounded monthly, on the
2538 prior month’s accumulated ending balance, up to the month of
2539 termination or death, except as provided in s. 121.053(7).
2540 2. Each employee who elects to participate in DROP may
2541 elect to receive a lump-sum payment for accrued annual leave
2542 earned in accordance with agency policy upon beginning
2543 participation in DROP. The accumulated leave payment certified
2544 to the division upon commencement of DROP shall be included in
2545 the calculation of the member’s average final compensation. The
2546 employee electing the lump-sum payment is not eligible to
2547 receive a second lump-sum payment upon termination, except to
2548 the extent the employee has earned additional annual leave
2549 which, combined with the original payment, does not exceed the
2550 maximum lump-sum payment allowed by the employing agency’s
2551 policy or rules. An early lump-sum payment shall be based on the
2552 hourly wage of the employee at the time he or she begins
2553 participation in DROP. If the member elects to wait and receive
2554 a lump-sum payment upon termination of DROP and termination of
2555 employment with the employer, any accumulated leave payment made
2556 at that time may not be included in the member’s retirement
2557 benefit, which was determined and fixed by law when the employee
2558 elected to participate in DROP.
2559 3. The effective date of DROP participation and the
2560 effective date of retirement of a DROP participant shall be the
2561 first day of the month selected by the member to begin
2562 participation in DROP, provided such date is properly
2563 established, with the written confirmation of the employer, and
2564 the approval of the division, on forms required by the division.
2565 4. Normal retirement benefits and any interest shall
2566 continue to accrue in DROP until the established termination
2567 date of DROP or until the member participant terminates
2568 employment or dies before prior to such date, except as provided
2569 in s. 121.053(7). Although individual DROP accounts may shall
2570 not be established, a separate accounting of each member’s
2571 participant’s accrued benefits under DROP shall be calculated
2572 and provided to the member participants.
2573 5. At the conclusion of the member’s participation in the
2574 participant’s DROP, the division shall distribute the member’s
2575 participant’s total accumulated DROP benefits, subject to the
2576 following:
2577 a. The division shall receive verification by the member’s
2578 participant’s employer or employers that the member participant
2579 has terminated all employment relationships as provided in s.
2580 121.021(39).
2581 b. The terminated DROP participant or, if deceased, the
2582 member’s participant’s named beneficiary, shall elect on forms
2583 provided by the division to receive payment of the DROP benefits
2584 in accordance with one of the options listed below. If a member
2585 participant or beneficiary fails to elect a method of payment
2586 within 60 days after termination of DROP, the division shall pay
2587 a lump sum as provided in sub-sub-subparagraph (I).
2588 (I) Lump sum.—All accrued DROP benefits, plus interest,
2589 less withholding taxes remitted to the Internal Revenue Service,
2590 shall be paid to the DROP participant or surviving beneficiary.
2591 (II) Direct rollover.—All accrued DROP benefits, plus
2592 interest, shall be paid from DROP directly to the custodian of
2593 an eligible retirement plan as defined in s. 402(c)(8)(B) of the
2594 Internal Revenue Code. However, in the case of an eligible
2595 rollover distribution to the surviving spouse of a deceased
2596 member participant, an eligible retirement plan is an individual
2597 retirement account or an individual retirement annuity as
2598 described in s. 402(c)(9) of the Internal Revenue Code.
2599 (III) Partial lump sum.—A portion of the accrued DROP
2600 benefits shall be paid to DROP participant or surviving spouse,
2601 less withholding taxes remitted to the Internal Revenue Service,
2602 and the remaining DROP benefits must be transferred directly to
2603 the custodian of an eligible retirement plan as defined in s.
2604 402(c)(8)(B) of the Internal Revenue Code. However, in the case
2605 of an eligible rollover distribution to the surviving spouse of
2606 a deceased member participant, an eligible retirement plan is an
2607 individual retirement account or an individual retirement
2608 annuity as described in s. 402(c)(9) of the Internal Revenue
2609 Code. The proportions must be specified by the DROP participant
2610 or surviving beneficiary.
2611 c. The form of payment selected by the DROP participant or
2612 surviving beneficiary must comply with the minimum distribution
2613 requirements of the Internal Revenue Code.
2614 d. A DROP participant who fails to terminate all employment
2615 relationships as provided in s. 121.021(39) shall be deemed as
2616 not retired, and the DROP election is null and void. Florida
2617 Retirement System membership shall be reestablished
2618 retroactively to the date of the commencement of DROP, and each
2619 employer with whom the member participant continues employment
2620 must pay to the Florida Retirement System Trust Fund the
2621 difference between the DROP contributions paid in paragraph (i)
2622 and the contributions required for the applicable Florida
2623 Retirement System class of membership during the period the
2624 member participated in DROP, plus 6.5 percent interest
2625 compounded annually.
2626 6. The retirement benefits of any DROP participant who
2627 terminates all employment relationships as provided in s.
2628 121.021(39) but is reemployed in violation of the reemployment
2629 provisions of subsection (9) are shall be suspended during those
2630 months in which the retiree is in violation. Any retiree in
2631 violation of this subparagraph and any employer that employs or
2632 appoints such person without notifying the division of
2633 Retirement to suspend retirement benefits are jointly and
2634 severally liable for any benefits paid during the reemployment
2635 limitation period. The employer must have a written statement
2636 from the retiree that he or she is not retired from a state
2637 administered retirement system. Any retirement benefits received
2638 by a retiree while employed in violation of the reemployment
2639 limitations must be repaid to the Florida Retirement System
2640 Trust Fund, and his or her retirement benefits shall remain
2641 suspended until payment is made. Benefits suspended beyond the
2642 end of the reemployment limitation period apply toward repayment
2643 of benefits received in violation of the reemployment
2644 limitation.
2645 7. The accrued benefits of any DROP participant, and any
2646 contributions accumulated under the program, are not subject to
2647 assignment, execution, attachment, or any legal process
2648 whatsoever, except for qualified domestic relations court orders
2649 by a court of competent jurisdiction, income deduction orders as
2650 provided in s. 61.1301, and federal income tax levies.
2651 8. DROP participants are not eligible for disability
2652 retirement benefits as provided in subsection (4).
2653 (14) PAYMENT OF BENEFITS.—This subsection applies to the
2654 payment of benefits to a payee (retiree or beneficiary) under
2655 the Florida Retirement System:
2656 (d) A payee whose retirement benefits are reduced by the
2657 application of maximum benefit limits under s. 415(b) of the
2658 Internal Revenue Code, as specified in s. 121.30(5), shall have
2659 the portion of his or her calculated benefit in the Florida
2660 Retirement System Pension System defined benefit Plan which
2661 exceeds such federal limitation paid through the Florida
2662 Retirement System Preservation of Benefits Plan, as provided in
2663 s. 121.1001.
2664 Section 16. Subsection (1) and paragraph (a) of subsection
2665 (2) of section 121.1001, Florida Statutes, are amended to read:
2666 121.1001 Florida Retirement System Preservation of Benefits
2667 Plan.—Effective July 1, 1999, the Florida Retirement System
2668 Preservation of Benefits Plan is established as a qualified
2669 governmental excess benefit arrangement pursuant to s. 415(m) of
2670 the Internal Revenue Code. The Preservation of Benefits Plan is
2671 created as a separate portion of the Florida Retirement System,
2672 for the purpose of providing benefits to a payee (retiree or
2673 beneficiary) of the Florida Retirement System whose benefits
2674 would otherwise be limited by s. 415(b) of the Internal Revenue
2675 Code.
2676 (1) ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF
2677 BENEFITS PLAN.—A payee of the Florida Retirement System shall
2678 participate in the Preservation of Benefits Plan if whenever his
2679 or her earned benefit under the Florida Retirement System
2680 Pension System defined benefit Plan exceeds the benefit maximum
2681 established under s. 415(b) of the Internal Revenue Code.
2682 Participation in the Preservation of Benefits Plan shall
2683 continue for as long as the payee’s earned benefit under the
2684 pension Florida Retirement System defined benefit plan is
2685 reduced by the application of the maximum benefit limit under s.
2686 415(b) of the Internal Revenue Code.
2687 (2) BENEFITS PAYABLE UNDER THE PRESERVATION OF BENEFITS
2688 PLAN.—
2689 (a) On and after July 1, 1999, the division of Retirement
2690 shall pay to each eligible payee of the Florida Retirement
2691 System who retires before, on, or after that such date, a
2692 supplemental retirement benefit equal to the difference between
2693 the amount of the payee’s monthly retirement benefit which would
2694 have been payable under the Florida Retirement System Pension
2695 System defined benefit Plan if not for a reduction due to the
2696 application of s. 415(b) of the Internal Revenue Code and the
2697 reduced monthly retirement benefit as paid to the payee. The
2698 Preservation of Benefits Plan benefit shall be computed and
2699 payable under the same terms and conditions and to the same
2700 person as would have applied under the pension Florida
2701 Retirement System defined benefit plan were it not for the
2702 federal limitation.
2703 Section 17. Subsections (1) and (3) of section 121.101,
2704 Florida Statutes, are amended, present subsections (4) through
2705 (7) of that section are redesignated as subsections (6) through
2706 (9), respectively, and new subsections (4) and (5) are added to
2707 that section, to read:
2708 121.101 Cost-of-living adjustment of benefits.—
2709 (1) The purpose of this section is to provide cost-of
2710 living adjustments to the monthly benefits payable to all
2711 retired members of state-supported retirement systems.
2712 (3) Commencing July 1, 1987, the benefit of each retiree
2713 and annuitant whose effective retirement date is before July 1,
2714 2011, shall be adjusted annually on each July 1 thereafter, as
2715 follows:
2716 (a) For those retirees and annuitants who have never
2717 received a cost-of-living adjustment under this section, the
2718 amount of the monthly benefit payable for the 12-month period
2719 commencing on the adjustment date shall be the amount of the
2720 member’s initial benefit plus an amount equal to a percentage of
2721 the member’s initial benefit; this percentage is derived by
2722 dividing the number of months the member has received an initial
2723 benefit by 12, and multiplying the result by 3.
2724 (b) For those retirees and annuitants who have received a
2725 cost-of-living adjustment under this subsection section, the
2726 adjusted monthly benefit shall be the amount of the monthly
2727 benefit being received on June 30 immediately preceding the
2728 adjustment date plus an amount equal to 3 percent of this
2729 benefit.
2730 (4) For members whose effective retirement date is on or
2731 after July 1, 2011, the benefit of each retiree and annuitant
2732 shall be adjusted annually on July 1 as follows:
2733 (a) For those retirees and annuitants who have never
2734 received a cost-of-living adjustment under this subsection, the
2735 amount of the monthly benefit payable for the 12-month period
2736 commencing on the adjustment date shall be the amount of the
2737 member’s initial benefit plus an amount equal to a percentage of
2738 the member’s initial benefit. This percentage is derived by
2739 dividing the number of months the member has received an initial
2740 benefit by 12, and multiplying the result by the factor
2741 calculated pursuant to paragraph (c).
2742 (b) For those retirees and annuitants who have received a
2743 cost-of-living adjustment under this subsection, the adjusted
2744 monthly benefit shall be the amount of the monthly benefit being
2745 received on June 30 immediately preceding the adjustment date
2746 plus an amount determined by multiplying the benefit by the
2747 factor calculated pursuant to paragraph (c).
2748 (c) The department shall calculate a cost-of-living factor
2749 for each retiree and beneficiary retiring on or after July 1,
2750 2011. This factor shall equal the product of 3 percent
2751 multiplied by the quotient of the sum of the member’s service
2752 credit earned for service before July 1, 2011, divided by the
2753 sum of the member’s total service credit earned.
2754 (5) Subject to the availability of funding and the
2755 Legislature enacting sufficient employer contributions
2756 specifically for the purpose of funding the expiration of the
2757 cost-of-living adjustment specified in subsection (4), in
2758 accordance with s. 14, Art. X of the State Constitution, the
2759 cost-of-living adjustment formula provided for in subsection (4)
2760 shall expire effective June 30, 2016, and the benefit of each
2761 retiree and annuitant shall be adjusted on each July 1
2762 thereafter, as provided in subsection (3).
2763 Section 18. Paragraph (b) of subsection (1) of section
2764 121.1115, Florida Statutes, is amended to read:
2765 121.1115 Purchase of retirement credit for out-of-state or
2766 federal service.—Effective January 1, 1995, a member may
2767 purchase creditable service for periods of public employment in
2768 another state and receive creditable service for such periods of
2769 employment. Service with the Federal Government, including any
2770 active military service, may be claimed. Upon completion of each
2771 year of service earned under the Florida Retirement System, a
2772 member may purchase up to 1 year of retirement credit for his or
2773 her out-of-state service, subject to the following provisions:
2774 (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
2775 out-of-state service:
2776 (b) The member must have completed the a minimum of 6 years
2777 of creditable service required for vesting under the Florida
2778 Retirement System, excluding out-of-state service and in-state
2779 service claimed and purchased under s. 121.1122.
2780 Section 19. Paragraph (a) of subsection (2) of section
2781 121.1122, Florida Statutes, is amended to read:
2782 121.1122 Purchase of retirement credit for in-state public
2783 service and in-state service in accredited nonpublic schools and
2784 colleges, including charter schools and charter technical career
2785 centers.—Effective January 1, 1998, a member of the Florida
2786 Retirement System may purchase creditable service for periods of
2787 certain public or nonpublic employment performed in this state,
2788 as provided in this section.
2789 (2) LIMITATIONS AND CONDITIONS.—
2790 (a) A member is not eligible to receive credit for in-state
2791 service under this section until he or she has completed the 6
2792 years of creditable service required for vesting under the
2793 Florida Retirement System, excluding service purchased under
2794 this section and out-of-state service claimed and purchased
2795 under s. 121.1115.
2796 Section 20. Subsection (1) of section 121.121, Florida
2797 Statutes, is amended to read:
2798 121.121 Authorized leaves of absence.—
2799 (1) A member may purchase creditable service for up to 2
2800 work years of authorized leaves of absence, including any leaves
2801 of absence covered under the Family Medical Leave Act, if:
2802 (a) The member has completed the a minimum of 6 years of
2803 creditable service required for vesting, excluding periods for
2804 which a leave of absence was authorized;
2805 (b) The leave of absence is authorized in writing by the
2806 employer of the member and approved by the administrator;
2807 (c) The member returns to active employment performing
2808 service with a Florida Retirement System employer in a regularly
2809 established position immediately upon termination of the leave
2810 of absence and remains on the employer’s payroll for 1 calendar
2811 month, except that a member who retires on disability while on a
2812 medical leave of absence may shall not be required to return to
2813 employment. A member whose work year is less than 12 months and
2814 whose leave of absence terminates between school years is
2815 eligible to receive credit for the leave of absence if as long
2816 as he or she returns to the employment of his or her employer at
2817 the beginning of the next school year and remains on the
2818 employer’s payroll for 1 calendar month; and
2819 (d) The member makes the required contributions for service
2820 credit during the leave of absence, which shall be 8 percent
2821 until January 1, 1975, and 9 percent thereafter of his or her
2822 rate of monthly compensation in effect immediately before prior
2823 to the commencement of such leave for each month of such period,
2824 plus 4 percent interest until July 1, 1975, and 6.5 percent
2825 interest thereafter on such contributions, compounded annually
2826 each June 30 from the due date of the contribution to date of
2827 payment.
2828 1. Effective July 1, 1980, any leave of absence purchased
2829 pursuant to this section is shall be at the contribution rates
2830 specified in s. 121.071 or s. 121.71 in effect at the time the
2831 leave is granted for the class of membership from which the
2832 leave of absence was granted; however, any member who purchased
2833 leave-of-absence credit before prior to July 1, 1980, for a
2834 leave of absence from a position in a class other than the
2835 regular membership class, may pay the appropriate additional
2836 contributions plus compound interest thereon and receive
2837 creditable service for such leave of absence in the membership
2838 class from which the member was granted the leave of absence.
2839 2. Effective July 1, 2011, any leave of absence purchased
2840 by the member pursuant to this section shall be at the employer
2841 and employee contribution rates specified in s. 121.71 in effect
2842 during the leave for the class of membership from which the
2843 leave of absence was granted.
2844 Section 21. Section 121.125, Florida Statutes, is amended
2845 to read:
2846 121.125 Credit for workers’ compensation payment periods.—A
2847 member of the retirement system created by this chapter who has
2848 been eligible or becomes eligible to receive workers’
2849 compensation payments for an injury or illness occurring during
2850 his or her employment while a member of any state retirement
2851 system shall, upon return to active employment with a covered
2852 employer for 1 calendar month or upon approval for disability
2853 retirement in accordance with s. 121.091(4), receive full
2854 retirement credit for the period prior to such return to active
2855 employment or disability retirement for which the workers’
2856 compensation payments were received. However, a no member may
2857 not receive retirement credit for any such period occurring
2858 after the earlier of the date of maximum medical improvement as
2859 defined in s. 440.02 or the date termination has occurred as
2860 defined in s. 121.021(39). The employer of record at the time of
2861 the worker’s compensation injury or illness shall make the
2862 required employer and employee retirement contributions based on
2863 the member’s rate of monthly compensation immediately prior to
2864 his or her receiving workers’ compensation payments for
2865 retirement credit received by the member. The employer of record
2866 at the time of the workers’ compensation injury or illness shall
2867 be assessed by the division a penalty of 1 percent of the
2868 contributions on all contributions not paid on the first payroll
2869 report after the member becomes eligible to receive credit. This
2870 delinquent assessment may not be waived.
2871 Section 22. Section 121.161, Florida Statutes, is reenacted
2872 to read:
2873 121.161 References to other laws include amendments.
2874 References in this chapter to state or federal laws or
2875 agreements are intended to include such laws as they now exist
2876 or may hereafter be amended.
2877 Section 23. Section 121.182, Florida Statutes, is amended
2878 to read:
2879 121.182 Retirement annuities authorized for city and county
2880 personnel.—Municipalities Cities and counties are authorized to
2881 purchase annuities for all municipal city and county personnel
2882 with 25 or more years of creditable service who have reached age
2883 50 and have applied for retirement under the Florida Retirement
2884 System. No such annuity shall provide for more than the total
2885 difference in retirement income between the retirement benefit
2886 based on average monthly compensation and creditable service as
2887 of the member’s early retirement date and the early retirement
2888 benefit. Municipalities Cities and counties may also purchase
2889 annuities for members of the Florida Retirement System who have
2890 out-of-state service in another state or country which is
2891 documented as valid by the appropriate city or county. Such
2892 annuities may be based on no more than 5 years of out-of-state
2893 service and may equal, but not exceed, the benefits that would
2894 be payable under the Florida Retirement System if credit for
2895 out-of-state service was authorized under that system.
2896 Municipalities Cities and counties are authorized to invest
2897 funds, purchase annuities, or provide local supplemental
2898 retirement programs for purposes of providing annuities for city
2899 or county personnel. All retirement annuities shall comply with
2900 s. 14, Art. X of the State Constitution.
2901 Section 24. Paragraphs (g) and (i) of subsection (3),
2902 subsection (4), and subsection (5) of section 121.35, Florida
2903 Statutes, are amended to read:
2904 121.35 Optional retirement program for the State University
2905 System.—
2906 (3) ELECTION OF OPTIONAL PROGRAM.—
2907 (g) An eligible employee who is a member of the Florida
2908 Retirement System at the time of election to participate in the
2909 optional retirement program shall retain all retirement service
2910 credit earned under the Florida Retirement System, at the rate
2911 earned. No Additional service credit in the Florida Retirement
2912 System may not shall be earned while the employee participates
2913 in the optional program, and nor shall the employee is not be
2914 eligible for disability retirement under the Florida Retirement
2915 System. An eligible employee may transfer from the Florida
2916 Retirement System to his or her accounts under the State
2917 University System Optional Retirement Program a sum representing
2918 the present value of the employee’s accumulated benefit
2919 obligation under the defined benefit program of the pension plan
2920 Florida Retirement System for any service credit accrued from
2921 the employee’s first eligible transfer date to the optional
2922 retirement program through the actual date of such transfer, if
2923 such service credit was earned in the period from July 1, 1984,
2924 through December 31, 1992. The present value of the employee’s
2925 accumulated benefit obligation shall be calculated as described
2926 in s. 121.4501(3)(c)2. Upon such transfer, all such service
2927 credit previously earned under the defined benefit program of
2928 the pension plan Florida Retirement System during this period is
2929 shall be nullified for purposes of entitlement to a future
2930 benefit under the pension plan defined benefit program of the
2931 Florida Retirement System.
2932 (i) Effective January 1, 2008, through December 31, 2008,
2933 except for an employee who is a mandatory participant of the
2934 State University System Optional Retirement Program, an employee
2935 who has elected to participate in the State University System
2936 Optional Retirement Program shall have one opportunity, at the
2937 employee’s discretion, to choose to transfer from this program
2938 to the defined benefit program of the Florida Retirement System
2939 Pension Plan or to the investment plan Public Employee Optional
2940 Retirement Program, subject to the terms of the applicable
2941 contracts of the State University System Optional Retirement
2942 Program.
2943 1. If the employee chooses to move to the investment plan
2944 Public Employee Optional Retirement Program, any contributions,
2945 interest, and earnings creditable to the employee under the
2946 State University System Optional Retirement Program must shall
2947 be retained by the employee in the State University System
2948 Optional Retirement Program, and the applicable provisions of s.
2949 121.4501(4) shall govern the election.
2950 2. If the employee chooses to move to the pension plan
2951 defined benefit program of the Florida Retirement System, the
2952 employee shall receive service credit equal to his or her years
2953 of service under the State University System Optional Retirement
2954 Program.
2955 a. The cost for such credit must be in shall be an amount
2956 representing the actuarial accrued liability for the affected
2957 period of service. The cost must shall be calculated using the
2958 discount rate and other relevant actuarial assumptions that were
2959 used to value the Florida Retirement System Pension defined
2960 benefit Plan liabilities in the most recent actuarial valuation.
2961 The calculation must shall include any service already
2962 maintained under the pension defined benefit plan in addition to
2963 the years under the State University System Optional Retirement
2964 Program. The actuarial accrued liability of any service already
2965 maintained under the pension defined benefit plan must shall be
2966 applied as a credit to total cost resulting from the
2967 calculation. The division must shall ensure that the transfer
2968 sum is prepared using a formula and methodology certified by an
2969 enrolled actuary.
2970 b. The employee must transfer from his or her State
2971 University System Optional Retirement Program account, and from
2972 other employee moneys as necessary, a sum representing the
2973 actuarial accrued liability immediately following the time of
2974 such movement, determined assuming that attained service equals
2975 the sum of service in the pension plan defined benefit program
2976 and service in the State University System Optional Retirement
2977 Program.
2978 (4) CONTRIBUTIONS.—
2979 (a)1. Through June 30, 2001, each employer shall contribute
2980 on behalf of each member of participant in the optional
2981 retirement program an amount equal to the normal cost portion of
2982 the employer retirement contribution which would be required if
2983 the employee participant were a regular member of the Florida
2984 Retirement System Pension Plan System defined benefit program,
2985 plus the portion of the contribution rate required in s.
2986 112.363(8) that would otherwise be assigned to the Retiree
2987 Health Insurance Subsidy Trust Fund.
2988 2. Effective July 1, 2001, through June 30, 2011, each
2989 employer shall contribute on behalf of each member of
2990 participant in the optional retirement program an amount equal
2991 to 10.43 percent of the employee’s participant’s gross monthly
2992 compensation.
2993 3. Effective July 1, 2011, each member of the optional
2994 retirement program shall contribute an amount equal to the
2995 employee contribution required in s. 121.71(3). The employer
2996 shall contribute on behalf of each such member an amount equal
2997 to the difference between 10.43 percent of the employee’s gross
2998 monthly compensation and the amount equal to the employee’s
2999 required contribution based on the employee’s gross monthly
3000 compensation.
3001 4. The department shall deduct an amount approved by the
3002 Legislature to provide for the administration of this program.
3003 The payment of the contributions, including contributions by the
3004 employee, to the optional program which is required by this
3005 paragraph for each participant shall be made by the employer to
3006 the department, which shall forward the contributions to the
3007 designated company or companies contracting for payment of
3008 benefits for members of the participant under the program.
3009 However, such contributions paid on behalf of an employee
3010 described in paragraph (3)(c) may shall not be forwarded to a
3011 company and do shall not begin to accrue interest until the
3012 employee has executed a contract and notified the department.
3013 The department shall deduct an amount from the contributions to
3014 provide for the administration of this program.
3015 (b) Each employer shall contribute on behalf of each member
3016 of participant in the optional retirement program an amount
3017 equal to the unfunded actuarial accrued liability portion of the
3018 employer contribution which would be required for members of the
3019 Florida Retirement System. This contribution shall be paid to
3020 the department for transfer to the Florida Retirement System
3021 Trust Fund.
3022 (c) An Optional Retirement Program Trust Fund shall be
3023 established in the State Treasury and administered by the
3024 department to make payments to the provider companies on behalf
3025 of the optional retirement program members participants, and to
3026 transfer the unfunded liability portion of the state optional
3027 retirement program contributions to the Florida Retirement
3028 System Trust Fund.
3029 (d) Contributions required for social security by each
3030 employer and each employee participant, in the amount required
3031 for social security coverage as now or hereafter may be provided
3032 by the federal Social Security Act, shall be maintained for each
3033 member of participant in the optional retirement program and are
3034 shall be in addition to the retirement contributions specified
3035 in this subsection.
3036 (e) Each member of participant in the optional retirement
3037 program who has executed a contract may contribute by way of
3038 salary reduction or deduction a percentage amount of the
3039 employee’s participant’s gross compensation not to exceed the
3040 percentage amount contributed by the employer to the optional
3041 program, but in no case may such contribution may not exceed
3042 federal limitations. Payment of the employee’s participant’s
3043 contributions shall be made by the financial officer of the
3044 employer to the division which shall forward the contributions
3045 to the designated company or companies contracting for payment
3046 of benefits for members of the participant under the program. A
3047 member participant may not make, through salary reduction, any
3048 voluntary employee contributions to any other plan under s.
3049 403(b) of the Internal Revenue Code, with the exception of a
3050 custodial account under s. 403(b)(7) of the Internal Revenue
3051 Code, until he or she has made an employee contribution to his
3052 or her optional program equal to the employer contribution. An
3053 employee A participant is responsible for monitoring his or her
3054 individual tax-deferred income to ensure he or she does not
3055 exceed the maximum deferral amounts permitted under the Internal
3056 Revenue Code.
3057 (f) The Optional Retirement Trust Fund may accept for
3058 deposit into member participant contracts contributions in the
3059 form of rollovers or direct trustee-to-trustee transfers by or
3060 on behalf of members participants who are reasonably determined
3061 by the department to be eligible for rollover or transfer to the
3062 optional retirement program pursuant to the Internal Revenue
3063 Code, if such contributions are made in accordance with rules
3064 adopted by the department. Such contributions shall be accounted
3065 for in accordance with any applicable requirements of the
3066 Internal Revenue Code and department rules of the department.
3067 (g) Effective July 1, 2008, for purposes of paragraph (a)
3068 and notwithstanding s. 121.021(22)(b)1., the term “employee’s
3069 participant’s gross monthly compensation” includes salary
3070 payments made to eligible clinical faculty from a state
3071 university using funds provided by a faculty practice plan
3072 authorized by the Board of Governors of the State University
3073 System if:
3074 1. There is no not any employer contribution from the state
3075 university to any other retirement program with respect to such
3076 salary payments; and
3077 2. The employer contribution on behalf of a member of the
3078 participant in the optional retirement program with respect to
3079 such salary payments is made using funds provided by the faculty
3080 practice plan.
3081 (5) BENEFITS.—
3082 (a) Benefits are payable under the optional retirement
3083 program only to vested members participating participants in the
3084 program, or their beneficiaries as designated by the member
3085 participant in the contract with a provider company, and such
3086 benefits shall be paid only by the designated company in
3087 accordance with s. 403(b) of the Internal Revenue Code and the
3088 terms of the annuity contract or contracts applicable to the
3089 member participant. Benefits accrue in individual accounts that
3090 are member-directed participant-directed, portable, and funded
3091 by employer and employee contributions and the earnings thereon.
3092 The member participant must be terminated for 3 calendar months
3093 from all employment relationships with all Florida Retirement
3094 System employers, as provided in s. 121.021(39), to begin
3095 receiving the employer-funded benefit. Benefits funded by
3096 employer and employee contributions are payable in accordance
3097 with the following terms and conditions:
3098 1. Benefits shall be paid only to a participating member
3099 participant, to his or her beneficiaries, or to his or her
3100 estate, as designated by the member participant.
3101 2. Benefits shall be paid by the provider company or
3102 companies in accordance with the law, the provisions of the
3103 contract, and any applicable department rule or policy.
3104 3. In the event of a member’s participant’s death, moneys
3105 accumulated by, or on behalf of, the member participant, less
3106 withholding taxes remitted to the Internal Revenue Service, if
3107 any, shall be distributed to the member’s participant’s
3108 designated beneficiary or beneficiaries, or to the member’s
3109 participant’s estate, as if the member participant retired on
3110 the date of death, as provided in paragraph (d) (c). No other
3111 death benefits are available to survivors of members
3112 participants under the optional retirement program except for
3113 such benefits, or coverage for such benefits, as are separately
3114 afforded by the employer, at the employer’s discretion.
3115 (b) Benefits, including employee contributions, are not
3116 payable for employee hardships, unforeseeable emergencies,
3117 loans, medical expenses, educational expenses, purchase of a
3118 principal residence, payments necessary to prevent eviction or
3119 foreclosure on an employee’s principal residence, or any other
3120 reason before termination from all employment relationships with
3121 participating employers for 3 calendar months.
3122 (c)(b) Upon receipt by the provider company of a properly
3123 executed application for distribution of benefits, the total
3124 accumulated benefit is shall be payable to the participating
3125 member participant, as:
3126 1. A lump-sum distribution to the member participant;
3127 2. A lump-sum direct rollover distribution whereby all
3128 accrued benefits, plus interest and investment earnings, are
3129 paid from the member’s participant’s account directly to an
3130 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
3131 Internal Revenue Code, on behalf of the member participant;
3132 3. Periodic distributions;
3133 4. A partial lump-sum payment whereby a portion of the
3134 accrued benefit is paid to the member participant and the
3135 remaining amount is transferred to an eligible retirement plan,
3136 as defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
3137 behalf of the member participant; or
3138 5. Such other distribution options as are provided for in
3139 the member’s participant’s optional retirement program contract.
3140 (d)(c) Survivor benefits are shall be payable as:
3141 1. A lump-sum distribution payable to the beneficiaries or
3142 to the deceased member’s participant’s estate;
3143 2. An eligible rollover distribution on behalf of the
3144 surviving spouse of a deceased member participant, whereby all
3145 accrued benefits, plus interest and investment earnings, are
3146 paid from the deceased member’s participant’s account directly
3147 to an eligible retirement plan, as described in s. 402(c)(8)(B)
3148 of the Internal Revenue Code, on behalf of the surviving spouse;
3149 3. Such other distribution options as are provided for in
3150 the member’s participant’s optional retirement program contract;
3151 or
3152 4. A partial lump-sum payment whereby a portion of the
3153 accrued benefit is paid to the deceased member’s participant’s
3154 surviving spouse or other designated beneficiaries, less
3155 withholding taxes remitted to the Internal Revenue Service, if
3156 any, and the remaining amount is transferred directly to an
3157 eligible retirement plan, as described in s. 402(c)(8)(B) of the
3158 Internal Revenue Code, on behalf of the surviving spouse. The
3159 proportions must be specified by the member participant or the
3160 surviving beneficiary.
3161
3162 This paragraph does not abrogate other applicable provisions of
3163 state or federal law providing payment of death benefits.
3164 (e)(d) The benefits payable to any person under the
3165 optional retirement program, and any contribution accumulated
3166 under such program, are shall not be subject to assignment,
3167 execution, or attachment or to any legal process whatsoever.
3168 (f)(e) A participating member participant who chooses to
3169 receive his or her benefits must be terminated for 3 calendar
3170 months to be eligible to receive benefits funded by employer and
3171 employee contributions. The member upon termination as defined
3172 in s. 121.021 must notify the provider company of the date he or
3173 she wishes benefits funded by required employer and employee
3174 contributions to begin and must be terminated as defined in s.
3175 121.021 after the initial benefit payment or distribution is
3176 received. Benefits may be deferred until the member participant
3177 chooses to make such application.
3178 (g)(f) Benefits funded by the participating member’s
3179 voluntary participant’s personal contributions may be paid out
3180 at any time and in any form within the limits provided in the
3181 contract between the member participant and the his or her
3182 provider company. The member participant shall notify the
3183 provider company regarding the date and provisions under which
3184 he or she wants to receive the employee-funded portion of the
3185 plan.
3186 (h)(g) For purposes of this section, “retiree” means a
3187 former participating member participant of the optional
3188 retirement program who has terminated employment and has taken a
3189 distribution as provided in this subsection, except for a
3190 mandatory distribution of a de minimis account authorized by the
3191 department.
3192 Section 25. Section 121.355, Florida Statutes, is amended
3193 to read:
3194 121.355 Community College Optional Retirement Program and
3195 State University System Optional Retirement Program member
3196 transfer.—Effective January 1, 2009, through December 31, 2009,
3197 an employee who is a former member of participant in the
3198 Community College Optional Retirement Program or the State
3199 University System Optional Retirement Program and present
3200 mandatory member of participant in the Florida Retirement System
3201 Pension System defined benefit Plan may receive service credit
3202 equal to his or her years of service under the Community College
3203 Optional Retirement Program or the State University System
3204 Optional Retirement Program under the following conditions:
3205 (1) The cost for such credit must represent shall be an
3206 amount representing the actuarial accrued liability for the
3207 affected period of service. The cost shall be calculated using
3208 the discount rate and other relevant actuarial assumptions that
3209 were used to value the Florida Retirement System Pension System
3210 defined benefit Plan liabilities in the most recent actuarial
3211 valuation. The calculation must shall include any service
3212 already maintained under the pension defined benefit plan in
3213 addition to the years under the Community College Optional
3214 Retirement Program or the State University System Optional
3215 Retirement Program. The actuarial accrued liability of any
3216 service already maintained under the pension defined benefit
3217 plan shall be applied as a credit to total cost resulting from
3218 the calculation. The division shall ensure that the transfer sum
3219 is prepared using a formula and methodology certified by an
3220 enrolled actuary.
3221 (2) The employee must transfer from his or her Community
3222 College Optional Retirement Program account or State University
3223 System Optional Retirement Program account, subject to the terms
3224 of the applicable optional retirement program contract, and from
3225 other employee moneys as necessary, a sum representing the
3226 actuarial accrued liability immediately following the time of
3227 such movement, determined assuming that attained service equals
3228 the sum of service in the pension plan defined benefit program
3229 and service in the Community College Optional Retirement Program
3230 or State University System Optional Retirement Program.
3231 (3) The employee may not receive service credit for a
3232 period of mandatory participation in the State University
3233 Optional Retirement Program or for a period for which a
3234 distribution was received from the Community College Optional
3235 Retirement Program or State University System Optional
3236 Retirement Program.
3237 Section 26. Section 121.4501, Florida Statutes, is amended
3238 to read:
3239 121.4501 Florida Retirement System Investment Plan Public
3240 Employee Optional Retirement Program.—
3241 (1) The Trustees of the State Board of Administration shall
3242 establish a an optional defined contribution retirement program
3243 called the “Florida Retirement System Investment Plan” or
3244 “investment plan” for members of the Florida Retirement System
3245 under which retirement benefits will be provided for eligible
3246 employees who elect to participate in the program. The
3247 retirement benefits to be provided for or on behalf of
3248 participants in such optional retirement program shall be
3249 provided through member-directed employee-directed investments,
3250 in accordance with s. 401(a) of the Internal Revenue Code and
3251 its related regulations. The employer and employee employers
3252 shall make contributions contribute, as provided in this section
3253 and, ss. 121.571, and 121.71, to the Florida Retirement System
3254 Investment Plan Public Employee Optional Retirement Program
3255 Trust Fund toward the funding of such optional benefits.
3256 (2) DEFINITIONS.—As used in this part, the term:
3257 (a) “Approved provider” or “provider” means a private
3258 sector company that is selected and approved by the state board
3259 to offer one or more investment products or services to the
3260 investment plan optional retirement program. The term includes a
3261 bundled provider that offers members participants a range of
3262 individually allocated or unallocated investment products and
3263 may offer a range of administrative and customer services, which
3264 may include accounting and administration of individual member
3265 participant benefits and contributions; individual member
3266 participant recordkeeping; asset purchase, control, and
3267 safekeeping; direct execution of the member’s participant’s
3268 instructions as to asset and contribution allocation;
3269 calculation of daily net asset values; direct access to member
3270 participant account information; periodic reporting to members
3271 participants, at least quarterly, on account balances and
3272 transactions; guidance, advice, and allocation services directly
3273 relating to the provider’s own investment options or products,
3274 but only if the bundled provider complies with the standard of
3275 care of s. 404(a)(1)(A-B) of the Employee Retirement Income
3276 Security Act of 1974 (ERISA), and if providing such guidance,
3277 advice, or allocation services does not constitute a prohibited
3278 transaction under s. 4975(c)(1) of the Internal Revenue Code or
3279 s. 406 of ERISA, notwithstanding that such prohibited
3280 transaction provisions do not apply to the optional retirement
3281 program; a broad array of distribution options; asset
3282 allocation; and retirement counseling and education. Private
3283 sector companies include investment management companies,
3284 insurance companies, depositories, and mutual fund companies.
3285 (b) “Average monthly compensation” means one-twelfth of
3286 average final compensation as defined in s. 121.021.
3287 (c) “Covered employment” means employment in a regularly
3288 established position as defined in s. 121.021.
3289 (d) “Defined benefit program” means the defined benefit
3290 program of the Florida Retirement System administered under part
3291 I of this chapter.
3292 (e) “Division” means the Division of Retirement within the
3293 department.
3294 (d)(f) “Electronic means” means by telephone, if the
3295 required information is received on a recorded line, or through
3296 Internet access, if the required information is captured online.
3297 (e)(g) “Eligible employee” means an officer or employee, as
3298 defined in s. 121.021, who:
3299 1. Is a member of, or is eligible for membership in, the
3300 Florida Retirement System, including any renewed member of the
3301 Florida Retirement System initially enrolled before July 1,
3302 2010; or
3303 2. Participates in, or is eligible to participate in, the
3304 Senior Management Service Optional Annuity Program as
3305 established under s. 121.055(6), the State Community College
3306 System Optional Retirement Program as established under s.
3307 121.051(2)(c), or the State University System Optional
3308 Retirement Program established under s. 121.35.
3309
3310 The term does not include any member participating in the
3311 Deferred Retirement Option Program established under s.
3312 121.091(13), a retiree of a state-administered retirement system
3313 initially reemployed on or after July 1, 2010, or a mandatory
3314 participant of the State University System Optional Retirement
3315 Program established under s. 121.35.
3316 (f)(h) “Employer” means an employer, as defined in s.
3317 121.021, of an eligible employee.
3318 (g)(i) “Florida Retirement System Investment Plan” or
3319 “investment plan” “Optional retirement program” or “optional
3320 program” means the defined contribution program Public Employee
3321 Optional Retirement Program established under this part.
3322 (h) “Florida Retirement System Pension Plan” or “pension
3323 plan” means the defined benefit program of the Florida
3324 Retirement System administered under part I of this chapter.
3325 (i)(j) “Member” or “employee” “Participant” means an
3326 eligible employee who enrolls in the investment plan optional
3327 program as provided in subsection (4), or a terminated Deferred
3328 Retirement Option Program member participant as described in
3329 subsection (21), or a beneficiary or alternate payee of a member
3330 or employee.
3331 (j) “Member contributions” or “employee contributions”
3332 means the sum of all amounts deducted from the salary of a
3333 member by his or her employer in accordance with s. 121.71(3)
3334 and credited to his or her individual account in the investment
3335 plan, plus any earnings on such amounts and any contributions
3336 specified in paragraph (5)(e).
3337 (k) “Retiree” means a former member participant of the
3338 investment plan optional retirement program who has terminated
3339 employment and has taken a distribution of vested employee or
3340 employer contributions as provided in s. 121.591, except for a
3341 mandatory distribution of a de minimis account authorized by the
3342 state board or a minimum required distribution provided by s.
3343 401(a)(9) of the Internal Revenue Code.
3344 (l) “Vested” or “vesting” means the guarantee that a member
3345 participant is eligible to receive a retirement benefit upon
3346 completion of the required years of service under the investment
3347 plan optional retirement program.
3348 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
3349 BENEFITS.—
3350 (a) Participation in the Public Employee Optional
3351 Retirement Program is limited to eligible employees.
3352 Participation in the optional retirement program is in lieu of
3353 participation in the defined benefit program of the Florida
3354 Retirement System.
3355 (a)(b) An eligible employee who is employed in a regularly
3356 established position by a state employer on June 1, 2002; by a
3357 district school board employer on September 1, 2002; or by a
3358 local employer on December 1, 2002, and who is a member of the
3359 pension plan defined benefit retirement program of the Florida
3360 Retirement System at the time of his or her election to
3361 participate in the investment plan Public Employee Optional
3362 Retirement Program shall retain all retirement service credit
3363 earned under the pension plan defined benefit retirement program
3364 of the Florida Retirement System as credited under the system
3365 and is shall be entitled to a deferred benefit upon termination,
3366 if eligible under the system. However, election to enroll
3367 participate in the investment plan Public Employee Optional
3368 Retirement Program terminates the active membership of the
3369 employee in the pension plan defined benefit program of the
3370 Florida Retirement System, and the service of a member
3371 participant in the investment plan is Public Employee Optional
3372 Retirement Program shall not be creditable under the pension
3373 plan defined benefit retirement program of the Florida
3374 Retirement System for purposes of benefit accrual but is
3375 creditable shall be credited for purposes of vesting.
3376 (b)(c)1. Notwithstanding paragraph (a), an (b), each
3377 eligible employee who elects to participate in the investment
3378 plan Public Employee Optional Retirement Program and establishes
3379 one or more individual member participant accounts under the
3380 optional program may elect to transfer to the investment plan
3381 optional program a sum representing the present value of the
3382 employee’s accumulated benefit obligation under the pension plan
3383 defined benefit retirement program of the Florida Retirement
3384 System. Upon such transfer, all service credit previously earned
3385 under the pension plan is defined benefit program of the Florida
3386 Retirement System shall be nullified for purposes of entitlement
3387 to a future benefit under the pension plan defined benefit
3388 program of the Florida Retirement System. A member may not
3389 transfer participant is precluded from transferring the
3390 accumulated benefit obligation balance from the pension plan
3391 after the time defined benefit program upon the expiration of
3392 the period for enrolling afforded to enroll in the investment
3393 plan has expired optional program.
3394 1.2. For purposes of this subsection, the present value of
3395 the member’s accumulated benefit obligation is based upon the
3396 member’s estimated creditable service and estimated average
3397 final compensation under the pension plan defined benefit
3398 program, subject to recomputation under subparagraph 2. 3. For
3399 state employees enrolling under subparagraph (4)(a)1., initial
3400 estimates shall will be based upon creditable service and
3401 average final compensation as of midnight on June 30, 2002; for
3402 district school board employees enrolling under subparagraph
3403 (4)(b)1., initial estimates shall will be based upon creditable
3404 service and average final compensation as of midnight on
3405 September 30, 2002; and for local government employees enrolling
3406 under subparagraph (4)(c)1., initial estimates shall will be
3407 based upon creditable service and average final compensation as
3408 of midnight on December 31, 2002. The dates respectively
3409 specified are above shall be construed as the “estimate date”
3410 for these employees. The actuarial present value of the
3411 employee’s accumulated benefit obligation shall be based on the
3412 following:
3413 a. The discount rate and other relevant actuarial
3414 assumptions used to value the Florida Retirement System Trust
3415 Fund at the time the amount to be transferred is determined,
3416 consistent with the factors provided in sub-subparagraphs b. and
3417 c.
3418 b. A benefit commencement age, based on the member’s
3419 estimated creditable service as of the estimate date.
3420 c. Except as provided under sub-subparagraph d., for a
3421 member initially enrolled:
3422 (I) Before July 1, 2011, the benefit commencement age is
3423 shall be the younger of the following, but may shall not be
3424 younger than the member’s age as of the estimate date:
3425 (A)(I) Age 62; or
3426 (B)(II) The age the member would attain if the member
3427 completed 30 years of service with an employer, assuming the
3428 member worked continuously from the estimate date, and
3429 disregarding any vesting requirement that would otherwise apply
3430 under the pension plan defined benefit program of the Florida
3431 Retirement System.
3432 (II) On or after July 1, 2011, the benefit commencement age
3433 is the younger of the following, but may not be younger than the
3434 member’s age as of the estimate date:
3435 (A) Age 65; or
3436 (B) The age the member would attain if the member completed
3437 33 years of service with an employer, assuming the member worked
3438 continuously from the estimate date, and disregarding any
3439 vesting requirement that would otherwise apply under the pension
3440 plan.
3441 d.c. For members of the Special Risk Class and for members
3442 of the Special Risk Administrative Support Class entitled to
3443 retain the special risk normal retirement date:
3444 (I) Initially enrolled before July 1, 2011, the benefit
3445 commencement age is shall be the younger of the following, but
3446 may shall not be younger than the member’s age as of the
3447 estimate date:
3448 (A)(I) Age 55; or
3449 (B)(II) The age the member would attain if the member
3450 completed 25 years of service with an employer, assuming the
3451 member worked continuously from the estimate date, and
3452 disregarding any vesting requirement that would otherwise apply
3453 under the pension plan defined benefit program of the Florida
3454 Retirement System.
3455 (II) Initially enrolled on or after July 1, 2011, the
3456 benefit commencement age is the younger of the following, but
3457 may not be younger than the member’s age as of the estimate
3458 date:
3459 (A) Age 60; or
3460 (B) The age the member would attain if the member completed
3461 30 years of service with an employer, assuming the member worked
3462 continuously from the estimate date, and disregarding any
3463 vesting requirement that would otherwise apply under the pension
3464 plan.
3465 e.d. The calculation must shall disregard vesting
3466 requirements and early retirement reduction factors that would
3467 otherwise apply under the pension plan defined benefit
3468 retirement program.
3469 2.3. For each member participant who elects to transfer
3470 moneys from the pension plan defined benefit program to his or
3471 her account in the investment plan optional program, the
3472 division shall recompute the amount transferred under
3473 subparagraph 1. within 2. not later than 60 days after the
3474 actual transfer of funds based upon the member’s participant’s
3475 actual creditable service and actual final average compensation
3476 as of the initial date of participation in the investment plan
3477 optional program. If the recomputed amount differs from the
3478 amount transferred under subparagraph 2. by $10 or more, the
3479 division shall:
3480 a. Transfer, or cause to be transferred, from the Florida
3481 Retirement System Trust Fund to the member’s participant’s
3482 account in the optional program the excess, if any, of the
3483 recomputed amount over the previously transferred amount
3484 together with interest from the initial date of transfer to the
3485 date of transfer under this subparagraph, based upon the
3486 effective annual interest equal to the assumed return on the
3487 actuarial investment which was used in the most recent actuarial
3488 valuation of the system, compounded annually.
3489 b. Transfer, or cause to be transferred, from the member’s
3490 participant’s account to the Florida Retirement System Trust
3491 Fund the excess, if any, of the previously transferred amount
3492 over the recomputed amount, together with interest from the
3493 initial date of transfer to the date of transfer under this
3494 subparagraph, based upon 6 percent effective annual interest,
3495 compounded annually, pro rata based on the member’s
3496 participant’s allocation plan.
3497 3. If contribution adjustments are made as a result of
3498 employer errors or corrections, including plan corrections,
3499 following recomputation of the amount transferred under
3500 subparagraph 1., the member is entitled to the additional
3501 contributions or is responsible for returning any excess
3502 contributions resulting from the correction. However, any return
3503 of such erroneous excess pretax contribution by the plan must be
3504 made within the period allowed by the Internal Revenue Service.
3505 The present value of the member’s accumulated benefit obligation
3506 shall not be recalculated.
3507 4. As directed by the member participant, the state board
3508 shall transfer or cause to be transferred the appropriate
3509 amounts to the designated accounts within. The board shall
3510 establish transfer procedures by rule, but the actual transfer
3511 shall not be later than 30 days after the effective date of the
3512 member’s participation in the investment plan optional program
3513 unless the major financial markets for securities available for
3514 a transfer are seriously disrupted by an unforeseen event that
3515 which also causes the suspension of trading on any national
3516 securities exchange in the country where the securities were
3517 issued. In that event, the such 30-day period of time may be
3518 extended by a resolution of the state board trustees. Transfers
3519 are not commissionable or subject to other fees and may be in
3520 the form of securities or cash, as determined by the state
3521 board. Such securities are shall be valued as of the date of
3522 receipt in the member’s participant’s account.
3523 5. If the state board or the division receives notification
3524 from the United States Internal Revenue Service that this
3525 paragraph or any portion of this paragraph will cause the
3526 retirement system, or a portion thereof, to be disqualified for
3527 tax purposes under the Internal Revenue Code, then the portion
3528 that will cause the disqualification does not apply. Upon such
3529 notice, the state board and the division shall notify the
3530 presiding officers of the Legislature.
3531 (4) PARTICIPATION; ENROLLMENT.—
3532 (a)1. With respect to an eligible employee who is employed
3533 in a regularly established position on June 1, 2002, by a state
3534 employer:
3535 a. Any such employee may elect to participate in the
3536 investment plan Public Employee Optional Retirement Program in
3537 lieu of retaining his or her membership in the pension plan
3538 defined benefit program of the Florida Retirement System. The
3539 election must be made in writing or by electronic means and must
3540 be filed with the third-party administrator by August 31, 2002,
3541 or, in the case of an active employee who is on a leave of
3542 absence on April 1, 2002, by the last business day of the 5th
3543 month following the month the leave of absence concludes. This
3544 election is irrevocable, except as provided in paragraph (g)
3545 (e). Upon making such election, the employee shall be enrolled
3546 as a member participant of the investment plan Public Employee
3547 Optional Retirement Program, the employee’s membership in the
3548 Florida Retirement System is shall be governed by the provisions
3549 of this part, and the employee’s membership in the pension plan
3550 terminates defined benefit program of the Florida Retirement
3551 System shall terminate. The employee’s enrollment in the
3552 investment plan is Public Employee Optional Retirement Program
3553 shall be effective the first day of the month for which a full
3554 month’s employer contribution is made to the investment plan
3555 optional program.
3556 b. Any such employee who fails to elect to participate in
3557 the investment plan Public Employee Optional Retirement Program
3558 within the prescribed time period is deemed to have elected to
3559 retain membership in the pension plan defined benefit program of
3560 the Florida Retirement System, and the employee’s option to
3561 elect to participate in the investment plan optional program is
3562 forfeited.
3563 2. With respect to employees who become eligible to
3564 participate in the investment plan Public Employee Optional
3565 Retirement Program by reason of employment in a regularly
3566 established position with a state employer commencing after
3567 April 1, 2002:
3568 a. Any such employee shall, by default, be enrolled in the
3569 pension plan defined benefit retirement program of the Florida
3570 Retirement System at the commencement of employment, and may, by
3571 the last business day of the 5th month following the employee’s
3572 month of hire, elect to participate in the investment plan
3573 Public Employee Optional Retirement Program. The employee’s
3574 election must be made in writing or by electronic means and must
3575 be filed with the third-party administrator. The election to
3576 participate in the investment plan optional program is
3577 irrevocable, except as provided in paragraph (g) (e).
3578 b. If the employee files such election within the
3579 prescribed time period, enrollment in the investment plan is
3580 optional program shall be effective on the first day of
3581 employment. The employer retirement contributions paid through
3582 the month of the employee plan change shall be transferred to
3583 the investment optional program, and, effective the first day of
3584 the next month, the employer and employee must shall pay the
3585 applicable contributions based on the employee membership class
3586 in the optional program.
3587 c. An Any such employee who fails to elect to participate
3588 in the investment plan Public Employee Optional Retirement
3589 Program within the prescribed time period is deemed to have
3590 elected to retain membership in the pension plan defined benefit
3591 program of the Florida Retirement System, and the employee’s
3592 option to elect to participate in the investment plan optional
3593 program is forfeited.
3594 3. With respect to employees who become eligible to
3595 participate in the investment plan Public Employee Optional
3596 Retirement Program pursuant to s. 121.051(2)(c)3. or s.
3597 121.35(3)(i), the any such employee may elect to participate in
3598 the investment plan Public Employee Optional Retirement Program
3599 in lieu of retaining his or her membership participation in the
3600 State Community College System Optional Retirement Program or
3601 the State University System Optional Retirement Program. The
3602 election must be made in writing or by electronic means and must
3603 be filed with the third-party administrator. This election is
3604 irrevocable, except as provided in paragraph (g) (e). Upon
3605 making such election, the employee shall be enrolled as a member
3606 in participant of the investment plan Public Employee Optional
3607 Retirement Program, the employee’s membership in the Florida
3608 Retirement System is shall be governed by the provisions of this
3609 part, and the employee’s participation in the State Community
3610 College System Optional Retirement Program or the State
3611 University System Optional Retirement Program terminates shall
3612 terminate. The employee’s enrollment in the investment plan is
3613 Public Employee Optional Retirement Program shall be effective
3614 on the first day of the month for which a full month’s employer
3615 and employee contribution is made to the investment plan
3616 optional program.
3617 4. For purposes of this paragraph, “state employer” means
3618 any agency, board, branch, commission, community college,
3619 department, institution, institution of higher education, or
3620 water management district of the state, which participates in
3621 the Florida Retirement System for the benefit of certain
3622 employees.
3623 (b)1. With respect to an eligible employee who is employed
3624 in a regularly established position on September 1, 2002, by a
3625 district school board employer:
3626 a. Any such employee may elect to participate in the
3627 investment plan Public Employee Optional Retirement Program in
3628 lieu of retaining his or her membership in the pension plan
3629 defined benefit program of the Florida Retirement System. The
3630 election must be made in writing or by electronic means and must
3631 be filed with the third-party administrator by November 30, or,
3632 in the case of an active employee who is on a leave of absence
3633 on July 1, 2002, by the last business day of the 5th month
3634 following the month the leave of absence concludes. This
3635 election is irrevocable, except as provided in paragraph (g)
3636 (e). Upon making such election, the employee shall be enrolled
3637 as a member participant of the investment plan Public Employee
3638 Optional Retirement Program, the employee’s membership in the
3639 Florida Retirement System is shall be governed by the provisions
3640 of this part, and the employee’s membership in the pension plan
3641 terminates defined benefit program of the Florida Retirement
3642 System shall terminate. The employee’s enrollment in the
3643 investment plan is Public Employee Optional Retirement Program
3644 shall be effective the first day of the month for which a full
3645 month’s employer contribution is made to the investment optional
3646 program.
3647 b. Any such employee who fails to elect to participate in
3648 the investment plan Public Employee Optional Retirement Program
3649 within the prescribed time period is deemed to have elected to
3650 retain membership in the pension plan defined benefit program of
3651 the Florida Retirement System, and the employee’s option to
3652 elect to participate in the investment plan optional program is
3653 forfeited.
3654 2. With respect to employees who become eligible to
3655 participate in the investment plan Public Employee Optional
3656 Retirement Program by reason of employment in a regularly
3657 established position with a district school board employer
3658 commencing after July 1, 2002:
3659 a. Any such employee shall, by default, be enrolled in the
3660 pension plan defined benefit retirement program of the Florida
3661 Retirement System at the commencement of employment, and may, by
3662 the last business day of the 5th month following the employee’s
3663 month of hire, elect to participate in the investment plan
3664 Public Employee Optional Retirement Program. The employee’s
3665 election must be made in writing or by electronic means and must
3666 be filed with the third-party administrator. The election to
3667 participate in the investment plan optional program is
3668 irrevocable, except as provided in paragraph (g) (e).
3669 b. If the employee files such election within the
3670 prescribed time period, enrollment in the investment plan is
3671 optional program shall be effective on the first day of
3672 employment. The employer retirement contributions paid through
3673 the month of the employee plan change shall be transferred to
3674 the investment plan optional program, and, effective the first
3675 day of the next month, the employer shall pay the applicable
3676 contributions based on the employee membership class in the
3677 investment plan optional program.
3678 c. Any such employee who fails to elect to participate in
3679 the investment plan Public Employee Optional Retirement Program
3680 within the prescribed time period is deemed to have elected to
3681 retain membership in the pension plan defined benefit program of
3682 the Florida Retirement System, and the employee’s option to
3683 elect to participate in the investment plan optional program is
3684 forfeited.
3685 3. For purposes of this paragraph, “district school board
3686 employer” means any district school board that participates in
3687 the Florida Retirement System for the benefit of certain
3688 employees, or a charter school or charter technical career
3689 center that participates in the Florida Retirement System as
3690 provided in s. 121.051(2)(d).
3691 (c)1. With respect to an eligible employee who is employed
3692 in a regularly established position on December 1, 2002, by a
3693 local employer:
3694 a. Any such employee may elect to participate in the
3695 investment plan Public Employee Optional Retirement Program in
3696 lieu of retaining his or her membership in the pension plan
3697 defined benefit program of the Florida Retirement System. The
3698 election must be made in writing or by electronic means and must
3699 be filed with the third-party administrator by February 28,
3700 2003, or, in the case of an active employee who is on a leave of
3701 absence on October 1, 2002, by the last business day of the 5th
3702 month following the month the leave of absence concludes. This
3703 election is irrevocable, except as provided in paragraph (g)
3704 (e). Upon making such election, the employee shall be enrolled
3705 as a participant of the investment plan Public Employee Optional
3706 Retirement Program, the employee’s membership in the Florida
3707 Retirement System is shall be governed by the provisions of this
3708 part, and the employee’s membership in the pension plan
3709 terminates defined benefit program of the Florida Retirement
3710 System shall terminate. The employee’s enrollment in the
3711 investment plan is Public Employee Optional Retirement Program
3712 shall be effective the first day of the month for which a full
3713 month’s employer contribution is made to the investment plan
3714 optional program.
3715 b. Any such employee who fails to elect to participate in
3716 the investment plan Public Employee Optional Retirement Program
3717 within the prescribed time period is deemed to have elected to
3718 retain membership in the pension plan defined benefit program of
3719 the Florida Retirement System, and the employee’s option to
3720 elect to participate in the investment plan optional program is
3721 forfeited.
3722 2. With respect to employees who become eligible to
3723 participate in the investment plan Public Employee Optional
3724 Retirement Program by reason of employment in a regularly
3725 established position with a local employer commencing after
3726 October 1, 2002:
3727 a. Any such employee shall, by default, be enrolled in the
3728 pension plan defined benefit retirement program of the Florida
3729 Retirement System at the commencement of employment, and may, by
3730 the last business day of the 5th month following the employee’s
3731 month of hire, elect to participate in the investment plan
3732 Public Employee Optional Retirement Program. The employee’s
3733 election must be made in writing or by electronic means and must
3734 be filed with the third-party administrator. The election to
3735 participate in the investment plan optional program is
3736 irrevocable, except as provided in paragraph (g) (e).
3737 b. If the employee files such election within the
3738 prescribed time period, enrollment in the investment plan is
3739 optional program shall be effective on the first day of
3740 employment. The employer retirement contributions paid through
3741 the month of the employee plan change shall be transferred to
3742 the investment plan optional program, and, effective the first
3743 day of the next month, the employer shall pay the applicable
3744 contributions based on the employee membership class in the
3745 investment plan optional program.
3746 c. Any such employee who fails to elect to participate in
3747 the investment plan Public Employee Optional Retirement Program
3748 within the prescribed time period is deemed to have elected to
3749 retain membership in the pension plan defined benefit program of
3750 the Florida Retirement System, and the employee’s option to
3751 elect to participate in the investment plan optional program is
3752 forfeited.
3753 3. For purposes of this paragraph, “local employer” means
3754 any employer not included in paragraph (a) or paragraph (b).
3755 (d) Contributions available for self-direction by a member
3756 participant who has not selected one or more specific investment
3757 products shall be allocated as prescribed by the state board.
3758 The third-party administrator shall notify the member any such
3759 participant at least quarterly that the member participant
3760 should take an affirmative action to make an asset allocation
3761 among the investment optional program products.
3762 (e) On or after July 1, 2011, a member of the pension plan
3763 who obtains a refund of employee contributions retains his or
3764 her prior plan choice upon return to employment in a regularly
3765 established position with a participating employer.
3766 (f) A member of the investment plan who takes a
3767 distribution of any contributions from his or her investment
3768 plan account is considered a retiree. A retiree who is initially
3769 reemployed on or after July 1, 2010, is not eligible for renewed
3770 membership.
3771 (g)(e) After the period during which an eligible employee
3772 had the choice to elect the pension plan defined benefit program
3773 or the investment plan optional retirement program, or the month
3774 following the receipt of the eligible employee’s plan election,
3775 if sooner, the employee shall have one opportunity, at the
3776 employee’s discretion, to choose to move from the pension plan
3777 defined benefit program to the investment plan optional
3778 retirement program or from the investment plan optional
3779 retirement program to the pension plan defined benefit program.
3780 Eligible employees may elect to move between plans Florida
3781 Retirement System programs only if they are earning service
3782 credit in an employer-employee relationship consistent with s.
3783 121.021(17)(b), excluding leaves of absence without pay.
3784 Effective July 1, 2005, such elections are effective on the
3785 first day of the month following the receipt of the election by
3786 the third-party administrator and are not subject to the
3787 requirements regarding an employer-employee relationship or
3788 receipt of contributions for the eligible employee in the
3789 effective month, except when the election is received by the
3790 third-party administrator. This paragraph is contingent upon
3791 approval by from the Internal Revenue Service for including the
3792 choice described herein within the programs offered by the
3793 Florida Retirement System.
3794 1. If the employee chooses to move to the investment plan
3795 optional retirement program, the applicable provisions of
3796 subsection (3) this section shall govern the transfer.
3797 2. If the employee chooses to move to the pension plan
3798 defined benefit program, the employee must transfer from his or
3799 her investment plan optional retirement program account, and
3800 from other employee moneys as necessary, a sum representing the
3801 present value of that employee’s accumulated benefit obligation
3802 immediately following the time of such movement, determined
3803 assuming that attained service equals the sum of service in the
3804 pension plan defined benefit program and service in the
3805 investment plan optional retirement program. Benefit
3806 commencement occurs on the first date the employee is eligible
3807 for unreduced benefits, using the discount rate and other
3808 relevant actuarial assumptions that were used to value the
3809 pension defined benefit plan liabilities in the most recent
3810 actuarial valuation. For any employee who, at the time of the
3811 second election, already maintains an accrued benefit amount in
3812 the pension plan defined benefit program, the then-present value
3813 of the accrued benefit is shall be deemed part of the required
3814 transfer amount. The division must shall ensure that the
3815 transfer sum is prepared using a formula and methodology
3816 certified by an enrolled actuary. A refund of any employee
3817 contributions or additional member payments made which exceed
3818 the employee contributions that would have accrued had the
3819 member remained in the pension plan and not transferred to the
3820 investment plan is not permitted.
3821 3. Notwithstanding subparagraph 2., an employee who chooses
3822 to move to the pension plan defined benefit program and who
3823 became eligible to participate in the investment plan optional
3824 retirement program by reason of employment in a regularly
3825 established position with a state employer after June 1, 2002; a
3826 district school board employer after September 1, 2002; or a
3827 local employer after December 1, 2002, must transfer from his or
3828 her investment plan optional retirement program account, and
3829 from other employee moneys as necessary, a sum representing the
3830 employee’s actuarial accrued liability. A refund of any employee
3831 contributions or additional participant payments made which
3832 exceed the employee contributions that would have accrued had
3833 the member remained in the pension plan and not transferred to
3834 the investment plan is not permitted.
3835 4. An employee’s ability to transfer from the pension plan
3836 defined benefit program to the investment plan optional
3837 retirement program pursuant to paragraphs (a)-(d), and the
3838 ability of a current employee to have an option to later
3839 transfer back into the pension plan defined benefit program
3840 under subparagraph 2., shall be deemed a significant system
3841 amendment. Pursuant to s. 121.031(4), any resulting unfunded
3842 liability arising from actual original transfers from the
3843 pension plan defined benefit program to the investment plan
3844 optional program must be amortized within 30 plan years as a
3845 separate unfunded actuarial base independent of the reserve
3846 stabilization mechanism defined in s. 121.031(3)(f). For the
3847 first 25 years, a direct amortization payment may not be
3848 calculated for this base. During this 25-year period, the
3849 separate base shall be used to offset the impact of employees
3850 exercising their second program election under this paragraph.
3851 It is the intent of the Legislature that The actuarial funded
3852 status of the pension plan will defined benefit program not be
3853 affected by such second program elections in any significant
3854 manner, after due recognition of the separate unfunded actuarial
3855 base. Following the initial 25-year period, any remaining
3856 balance of the original separate base shall be amortized over
3857 the remaining 5 years of the required 30-year amortization
3858 period.
3859 5. If the employee chooses to transfer from the investment
3860 plan optional retirement program to the pension plan defined
3861 benefit program and retains an excess account balance in the
3862 investment plan optional program after satisfying the buy-in
3863 requirements under this paragraph, the excess may not be
3864 distributed until the member retires from the pension plan
3865 defined benefit program. The excess account balance may be
3866 rolled over to the pension plan defined benefit program and used
3867 to purchase service credit or upgrade creditable service in the
3868 pension plan that program.
3869 (5) CONTRIBUTIONS.—
3870 (a) The employee and Each employer shall make the required
3871 contributions to contribute on behalf of each participant in the
3872 investment plan based on a percentage of the employee’s gross
3873 monthly compensation Public Employee Optional Retirement
3874 Program, as provided in part III of this chapter.
3875 (b) Employee contributions shall be paid as provided in s.
3876 121.71.
3877 (c) The state board, acting as plan fiduciary, must shall
3878 ensure that all plan assets are held in a trust, pursuant to s.
3879 401 of the Internal Revenue Code. The fiduciary must shall
3880 ensure that such said contributions are allocated as follows:
3881 1. The employer and employee contribution portion earmarked
3882 for member participant accounts shall be used to purchase
3883 interests in the appropriate investment vehicles for the
3884 accounts of each participant as specified by the member
3885 participant, or in accordance with paragraph (4)(d).
3886 2. The employer contribution portion earmarked for
3887 administrative and educational expenses shall be transferred to
3888 the Florida Retirement System Investment Plan Trust Fund board.
3889 3. The employer contribution portion earmarked for
3890 disability benefits shall be transferred to the Florida
3891 Retirement System Trust Fund department.
3892 (d)(b) The third-party administrator is Employers are
3893 responsible for monitoring and notifying employers of the
3894 participants regarding maximum contribution levels allowed for
3895 members permitted under the Internal Revenue Code. If a member
3896 participant contributes to any other tax-deferred plan, the
3897 member he or she is responsible for ensuring that total
3898 contributions made to the investment plan optional program and
3899 to any other such plan do not exceed federally permitted
3900 maximums.
3901 (e)(c) The investment plan Public Employee Optional
3902 Retirement Program may accept for deposit into member
3903 participant accounts contributions in the form of rollovers or
3904 direct trustee-to-trustee transfers by or on behalf of members
3905 participants, reasonably determined by the state board to be
3906 eligible for rollover or transfer to the investment plan
3907 optional retirement program pursuant to the Internal Revenue
3908 Code, if such contributions are made in accordance with rules as
3909 may be adopted by the board. Such contributions must shall be
3910 accounted for in accordance with any applicable Internal Revenue
3911 Code requirements and rules of the state board.
3912 (6) VESTING REQUIREMENTS.—
3913 (a) A member is fully and immediately vested in all
3914 employee contributions paid to the investment plan as provided
3915 in s. 121.71, plus interest and earnings thereon and less
3916 investment fees and administrative charges.
3917 (b)(a)1. With respect to employer contributions paid on
3918 behalf of the member participant to the investment plan optional
3919 retirement program, plus interest and earnings thereon and less
3920 investment fees and administrative charges, a member participant
3921 is vested after completing 1 work year with an employer,
3922 including any service while the member participant was a member
3923 of the pension plan defined benefit program or an optional
3924 retirement program authorized under s. 121.051(2)(c) or s.
3925 121.055(6).
3926 2. If the member participant terminates employment before
3927 satisfying the vesting requirements, the nonvested accumulation
3928 must be transferred from the member’s participant’s accounts to
3929 the state board for deposit and investment by the state board in
3930 its the suspense account created within the Florida Retirement
3931 System Investment Plan Public Employee Optional Retirement
3932 Program Trust Fund. If the terminated member participant is
3933 reemployed as an eligible employee within 5 years, the state
3934 board shall transfer to the member’s participant’s account any
3935 amount previously transferred from the member’s participant’s
3936 accounts to the suspense account, plus actual earnings on such
3937 amount while in the suspense account.
3938 (c)(b)1. With respect to amounts contributed by an employer
3939 and transferred from the pension plan defined benefit program to
3940 the investment plan program, plus interest and earnings, and
3941 less investment fees and administrative charges, a member
3942 participant shall be vested in the amount transferred upon
3943 meeting the vesting service requirements for the member’s
3944 participant’s membership class as set forth in s. 121.021(45)
3945 121.021(29). The third-party administrator shall account for
3946 such amounts for each member participant. The division shall
3947 notify the member participant and the third-party administrator
3948 when the member participant has satisfied the vesting period for
3949 Florida Retirement System purposes.
3950 2. If the member participant terminates employment before
3951 satisfying the vesting requirements, the nonvested accumulation
3952 must be transferred from the member’s participant’s accounts to
3953 the state board for deposit and investment by the state board in
3954 the suspense account created within the Florida Retirement
3955 System Investment Plan Public Employee Optional Retirement
3956 Program Trust Fund. If the terminated member participant is
3957 reemployed as an eligible employee within 5 years, the state
3958 board shall transfer to the member’s accounts participant’s
3959 account any amount previously transferred from the member’s
3960 participant’s accounts to the suspense account, plus the actual
3961 earnings on such amount while in the suspense account.
3962 (d)(c) Any nonvested accumulations transferred from a
3963 member’s participant’s account to the state board’s suspense
3964 account shall be forfeited, including accompanying service
3965 credit, by the member participant if the member participant is
3966 not reemployed as an eligible employee within 5 years after
3967 termination.
3968 (e) If the member elects to receive any of his or her
3969 vested employee or employer contributions upon termination of
3970 employment as provided in s. 121.021(39)(a), except for a
3971 mandatory distribution of a de minimis account authorized by the
3972 state board or a minimum required distribution provided by s.
3973 401(a)(9) of the Internal Revenue Code, the member shall forfeit
3974 all nonvested employer contributions, and accompanying service
3975 credit, paid on behalf of the member to the investment plan.
3976 (7) BENEFITS.—Under the investment plan, benefits must
3977 Public Employee Optional Retirement Program:
3978 (a) Benefits shall Be provided in accordance with s. 401(a)
3979 of the Internal Revenue Code.
3980 (b) Benefits shall Accrue in individual accounts that are
3981 member-directed participant-directed, portable, and funded by
3982 employer and employee contributions and earnings thereon.
3983 (c) Benefits shall Be payable in accordance with the
3984 provisions of s. 121.591.
3985 (8) INVESTMENT PLAN ADMINISTRATION OF PROGRAM.—
3986 (a) The investment plan optional retirement program shall
3987 be administered by the state board and affected employers. The
3988 state board may require oaths, by affidavit or otherwise, and
3989 acknowledgments from persons in connection with the
3990 administration of its statutory duties and responsibilities for
3991 the investment plan this program. An oath, by affidavit or
3992 otherwise, may not be required of a member an employee
3993 participant at the time of enrollment. Acknowledgment of an
3994 employee’s election to participate in the program shall be no
3995 greater than necessary to confirm the employee’s election. The
3996 state board shall adopt rules to carry out its statutory duties
3997 with respect to administering the investment plan optional
3998 retirement program, including establishing the roles and
3999 responsibilities of affected state, local government, and
4000 education-related employers, the state board, the department,
4001 and third-party contractors. The department shall adopt rules
4002 necessary to administer the investment plan optional program in
4003 coordination with the pension plan defined benefit program and
4004 the disability benefits available under the investment plan
4005 optional program.
4006 (a)(b)1. The state board shall select and contract with a
4007 one third-party administrator to provide administrative services
4008 if those services cannot be competitively and contractually
4009 provided by the division of Retirement within the Department of
4010 Management Services. With the approval of the state board, the
4011 third-party administrator may subcontract with other
4012 organizations or individuals to provide components of the
4013 administrative services. As a cost of administration, the state
4014 board may compensate any such contractor for its services, in
4015 accordance with the terms of the contract, as is deemed
4016 necessary or proper by the board. The third-party administrator
4017 may not be an approved provider or be affiliated with an
4018 approved provider.
4019 2. These administrative services may include, but are not
4020 limited to, enrollment of eligible employees, collection of
4021 employer and employee contributions, disbursement of such
4022 contributions to approved providers in accordance with the
4023 allocation directions of members participants; services relating
4024 to consolidated billing; individual and collective recordkeeping
4025 and accounting; asset purchase, control, and safekeeping; and
4026 direct disbursement of funds to and from the third-party
4027 administrator, the division, the state board, employers, members
4028 participants, approved providers, and beneficiaries. This
4029 section does not prevent or prohibit a bundled provider from
4030 providing any administrative or customer service, including
4031 accounting and administration of individual member participant
4032 benefits and contributions; individual member participant
4033 recordkeeping; asset purchase, control, and safekeeping; direct
4034 execution of the member’s participant’s instructions as to asset
4035 and contribution allocation; calculation of daily net asset
4036 values; direct access to member participant account information;
4037 or periodic reporting to members participants, at least
4038 quarterly, on account balances and transactions, if these
4039 services are authorized by the state board as part of the
4040 contract.
4041 (b)1.3. The state board shall select and contract with one
4042 or more organizations to provide educational services. With
4043 approval of the state board, the organizations may subcontract
4044 with other organizations or individuals to provide components of
4045 the educational services. As a cost of administration, the state
4046 board may compensate any such contractor for its services in
4047 accordance with the terms of the contract, as is deemed
4048 necessary or proper by the board. The education organization may
4049 not be an approved provider or be affiliated with an approved
4050 provider.
4051 2.4. Educational services shall be designed by the state
4052 board and department to assist employers, eligible employees,
4053 members participants, and beneficiaries in order to maintain
4054 compliance with United States Department of Labor regulations
4055 under s. 404(c) of the Employee Retirement Income Security Act
4056 of 1974 and to assist employees in their choice of pension plan
4057 defined benefit or investment plan defined contribution
4058 retirement alternatives. Educational services include, but are
4059 not limited to, disseminating educational materials; providing
4060 retirement planning education; explaining the pension
4061 differences between the defined benefit retirement plan and the
4062 investment defined contribution retirement plan; and offering
4063 financial planning guidance on matters such as investment
4064 diversification, investment risks, investment costs, and asset
4065 allocation. An approved provider may also provide educational
4066 information, including retirement planning and investment
4067 allocation information concerning its products and services.
4068 (c)1. In evaluating and selecting a third-party
4069 administrator, the state board shall establish criteria for
4070 evaluating under which it shall consider the relative
4071 capabilities and qualifications of each proposed administrator.
4072 In developing such criteria, the state board shall consider:
4073 a. The administrator’s demonstrated experience in providing
4074 administrative services to public or private sector retirement
4075 systems.
4076 b. The administrator’s demonstrated experience in providing
4077 daily valued recordkeeping to defined contribution programs
4078 plans.
4079 c. The administrator’s ability and willingness to
4080 coordinate its activities with the Florida Retirement System
4081 employers, the state board, and the division, and to supply to
4082 such employers, the board, and the division the information and
4083 data they require, including, but not limited to, monthly
4084 management reports, quarterly member participant reports, and ad
4085 hoc reports requested by the department or state board.
4086 d. The cost-effectiveness and levels of the administrative
4087 services provided.
4088 e. The administrator’s ability to interact with the members
4089 participants, the employers, the state board, the division, and
4090 the providers; the means by which members participants may
4091 access account information, direct investment of contributions,
4092 make changes to their accounts, transfer moneys between
4093 available investment vehicles, and transfer moneys between
4094 investment products; and any fees that apply to such activities.
4095 f. Any other factor deemed necessary by the Trustees of the
4096 state board of Administration.
4097 2. In evaluating and selecting an educational provider, the
4098 state board shall establish criteria under which it shall
4099 consider the relative capabilities and qualifications of each
4100 proposed educational provider. In developing such criteria, the
4101 state board shall consider:
4102 a. Demonstrated experience in providing educational
4103 services to public or private sector retirement systems.
4104 b. Ability and willingness to coordinate its activities
4105 with the Florida Retirement System employers, the state board,
4106 and the division, and to supply to such employers, the board,
4107 and the division the information and data they require,
4108 including, but not limited to, reports on educational contacts.
4109 c. The cost-effectiveness and levels of the educational
4110 services provided.
4111 d. Ability to provide educational services via different
4112 media, including, but not limited to, the Internet, personal
4113 contact, seminars, brochures, and newsletters.
4114 e. Any other factor deemed necessary by the Trustees of the
4115 state board of Administration.
4116 3. The establishment of the criteria shall be solely within
4117 the discretion of the state board.
4118 (d) The state board shall develop the form and content of
4119 any contracts to be offered under the investment plan Public
4120 Employee Optional Retirement Program. In developing the its
4121 contracts, the board shall must consider:
4122 1. The nature and extent of the rights and benefits to be
4123 afforded in relation to the required contributions required
4124 under the plan program.
4125 2. The suitability of the rights and benefits provided to
4126 be afforded and the interests of employers in the recruitment
4127 and retention of eligible employees.
4128 (e)1. The state board may contract with any consultant for
4129 professional services, including legal, consulting, accounting,
4130 and actuarial services, deemed necessary to implement and
4131 administer the investment plan optional program by the Trustees
4132 of the State Board of Administration. The state board may enter
4133 into a contract with one or more vendors to provide low-cost
4134 investment advice to members participants, supplemental to
4135 education provided by the third-party administrator. All fees
4136 under any such contract shall be paid by those members
4137 participants who choose to use the services of the vendor.
4138 2. The department may contract with consultants for
4139 professional services, including legal, consulting, accounting,
4140 and actuarial services, deemed necessary to implement and
4141 administer the investment plan optional program in coordination
4142 with the pension plan defined benefit program of the Florida
4143 Retirement System. The department, in coordination with the
4144 state board, may enter into a contract with the third-party
4145 administrator in order to coordinate services common to the
4146 various programs within the Florida Retirement System.
4147 (f) The third-party administrator may shall not receive
4148 direct or indirect compensation from an approved provider,
4149 except as specifically provided for in the contract with the
4150 state board.
4151 (g) The state board shall receive and resolve member
4152 participant complaints against the program, the third-party
4153 administrator, or any program vendor or provider; shall resolve
4154 any conflict between the third-party administrator and an
4155 approved provider if such conflict threatens the implementation
4156 or administration of the program or the quality of services to
4157 employees; and may resolve any other conflicts. The third-party
4158 administrator shall retain all member participant records for at
4159 least 5 years for use in resolving any member participant
4160 conflicts. The state board, the third-party administrator, or a
4161 provider is not required to produce documentation or an audio
4162 recording to justify action taken with regard to a member
4163 participant if the action occurred 5 or more years before the
4164 complaint is submitted to the state board. It is presumed that
4165 all action taken 5 or more years before the complaint is
4166 submitted was taken at the request of the member participant and
4167 with the member’s participant’s full knowledge and consent. To
4168 overcome this presumption, the member participant must present
4169 documentary evidence or an audio recording demonstrating
4170 otherwise.
4171 (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
4172 (a) The state board shall develop policy and procedures for
4173 selecting, evaluating, and monitoring the performance of
4174 approved providers and investment products to which employees
4175 may direct retirement contributions under the investment plan
4176 program. In accordance with such policy and procedures, the
4177 state board shall designate and contract for a number of
4178 investment products as determined by the board. The board shall
4179 also select one or more bundled providers, each of which whom
4180 may offer multiple investment options and related services, if
4181 when such an approach is determined by the board to provide
4182 afford value to the members participants otherwise not available
4183 through individual investment products. Each approved bundled
4184 provider may offer investment options that provide members
4185 participants with the opportunity to invest in each of the
4186 following asset classes, to be composed of individual options
4187 that represent either a single asset class or a combination
4188 thereof: money markets, United States fixed income, United
4189 States equities, and foreign stock. The state board shall review
4190 and manage all educational materials, contract terms, fee
4191 schedules, and other aspects of the approved provider
4192 relationships to ensure that no provider is unduly favored or
4193 penalized by virtue of its status within the investment plan.
4194 (b) The state board shall consider investment options or
4195 products it considers appropriate to give members participants
4196 the opportunity to accumulate retirement benefits, subject to
4197 the following:
4198 1. The investment plan Public Employee Optional Retirement
4199 Program must offer a diversified mix of low-cost investment
4200 products that span the risk-return spectrum and may include a
4201 guaranteed account as well as investment products, such as
4202 individually allocated guaranteed and variable annuities, which
4203 meet the requirements of this subsection and combine the ability
4204 to accumulate investment returns with the option of receiving
4205 lifetime income consistent with the long-term retirement
4206 security of a pension plan and similar to the lifetime-income
4207 benefit provided by the Florida Retirement System.
4208 2. Investment options or products offered by the group of
4209 approved providers may include mutual funds, group annuity
4210 contracts, individual retirement annuities, interests in trusts,
4211 collective trusts, separate accounts, and other such financial
4212 instruments, and may include products that give members
4213 participants the option of committing their contributions for an
4214 extended time period in an effort to obtain returns higher than
4215 those that could be obtained from investment products offering
4216 full liquidity.
4217 3. The state board may shall not contract with a any
4218 provider that imposes a front-end, back-end, contingent, or
4219 deferred sales charge, or any other fee that limits or restricts
4220 the ability of members participants to select any investment
4221 product available in the investment plan optional program. This
4222 prohibition does not apply to fees or charges that are imposed
4223 on withdrawals from products that give members participants the
4224 option of committing their contributions for an extended time
4225 period in an effort to obtain returns higher than those that
4226 could be obtained from investment products offering full
4227 liquidity, if provided that the product in question, net of all
4228 fees and charges, produces material benefits relative to other
4229 comparable products in the investment plan program offering full
4230 liquidity.
4231 4. Fees or charges for insurance features, such as
4232 mortality and expense-risk charges, must be reasonable relative
4233 to the benefits provided.
4234 (c) In evaluating and selecting approved providers and
4235 products, the state board shall establish criteria for
4236 evaluating under which it shall consider the relative
4237 capabilities and qualifications of each proposed provider
4238 company and product. In developing such criteria, the board
4239 shall consider the following to the extent such factors may be
4240 applied in connection with investment products, services, or
4241 providers:
4242 1. Experience in the United States providing retirement
4243 products and related financial services under defined
4244 contribution retirement programs plans.
4245 2. Financial strength and stability as which shall be
4246 evidenced by the highest ratings assigned by nationally
4247 recognized rating services when comparing proposed providers
4248 that are so rated.
4249 3. Intrastate and interstate portability of the product
4250 offered, including early withdrawal options.
4251 4. Compliance with the Internal Revenue Code.
4252 5. The cost-effectiveness of the product provided and the
4253 levels of service supporting the product relative to its
4254 benefits and its characteristics, including, without limitation,
4255 the level of risk borne by the provider.
4256 6. The provider company’s ability and willingness to
4257 coordinate its activities with Florida Retirement System
4258 employers, the department, and the state board, and to supply
4259 the to such employers, the department, and the board with the
4260 information and data they require.
4261 7. The methods available to members participants to
4262 interact with the provider company; the means by which members
4263 participants may access account information, direct investment
4264 of contributions, make changes to their accounts, transfer
4265 moneys between available investment vehicles, and transfer
4266 moneys between provider companies; and any fees that apply to
4267 such activities.
4268 8. The provider company’s policies with respect to the
4269 transfer of individual account balances, contributions, and
4270 earnings thereon, both internally among investment products
4271 offered by the provider company and externally between approved
4272 providers, as well as any fees, charges, reductions, or
4273 penalties that may be applied.
4274 9. An evaluation of specific investment products, taking
4275 into account each product’s experience in meeting its investment
4276 return objectives net of all related fees, expenses, and
4277 charges, including, but not limited to, investment management
4278 fees, loads, distribution and marketing fees, custody fees,
4279 recordkeeping fees, education fees, annuity expenses, and
4280 consulting fees.
4281 10. Organizational factors, including, but not limited to,
4282 financial solvency, organizational depth, and experience in
4283 providing institutional and retail investment services.
4284 (d) By March 1, 2010, the state board shall identify and
4285 offer at least one terror-free investment product that allocates
4286 its funds among securities not subject to divestiture as
4287 provided in s. 215.473 if the investment product is deemed by
4288 the state board to be consistent with prudent investor
4289 standards. A No person may not bring a civil, criminal, or
4290 administrative action against an approved provider; the state
4291 board; or any employee, officer, director, or trustee of such
4292 provider based upon the divestiture of any security or the
4293 offering of a terror-free investment product as specified in
4294 this paragraph.
4295 (e) As a condition of offering an any investment option or
4296 product in the investment plan optional retirement program, the
4297 approved provider must agree to make the investment product or
4298 service available under the most beneficial terms offered to any
4299 other customer, subject to approval by the Trustees of the state
4300 board of Administration.
4301 (f) The state board shall regularly review the performance
4302 of each approved provider and product and related organizational
4303 factors to ensure continued compliance with established
4304 selection criteria and with board policy and procedures.
4305 Providers and products may be terminated subject to contract
4306 provisions. The state board shall adopt procedures to transfer
4307 account balances from terminated products or providers to other
4308 products or providers in the investment plan optional program.
4309 (g)1. An approved provider shall comply with all applicable
4310 federal and state securities and insurance laws and regulations
4311 applicable to the provider, as well as with the applicable rules
4312 and guidelines of the National Association of Securities Dealers
4313 which govern the ethical marketing of investment products. In
4314 furtherance of this mandate, an approved provider must agree in
4315 its contract with the state board to establish and maintain a
4316 compliance education and monitoring system to supervise the
4317 activities of all personnel who directly communicate with
4318 individual members participants and recommend investment
4319 products, which system is consistent with rules of the National
4320 Association of Securities Dealers.
4321 2. Approved provider personnel who directly communicate
4322 with individual members participants and who recommend
4323 investment products shall make an independent and unbiased
4324 determination as to whether an investment product is suitable
4325 for a particular member participant.
4326 3. The state board shall develop procedures to receive and
4327 resolve member participant complaints against a provider or
4328 approved provider personnel, and, if when appropriate, refer
4329 such complaints to the appropriate agency.
4330 4. Approved providers may not sell or in any way distribute
4331 any customer list or member participant identification
4332 information generated through their offering of products or
4333 services through the investment plan optional retirement
4334 program.
4335 (10) EDUCATION COMPONENT.—
4336 (a) The state board, in coordination with the department,
4337 shall provide for an education component for system members in a
4338 manner consistent with the provisions of this section. The
4339 education component must be available to eligible employees at
4340 least 90 days prior to the beginning date of the election period
4341 for the employees of the respective types of employers.
4342 (b) The education component must provide system members
4343 with impartial and balanced information about plan choices. The
4344 education component must involve multimedia formats. Program
4345 comparisons must, to the greatest extent possible, be based upon
4346 the retirement income that different retirement programs may
4347 provide to the member participant. The state board shall monitor
4348 the performance of the contract to ensure that the program is
4349 conducted in accordance with the contract, applicable law, and
4350 the rules of the state board.
4351 (c) The state board, in coordination with the department,
4352 shall provide for an initial and ongoing transfer education
4353 component to provide system members with information necessary
4354 to make informed plan choice decisions. The transfer education
4355 component must include, but is not limited to, information on:
4356 1. The amount of money available to a member to transfer to
4357 the defined contribution program.
4358 2. The features of and differences between the pension plan
4359 defined benefit program and the defined contribution program,
4360 both generally and specifically, as those differences may affect
4361 the member.
4362 3. The expected benefit available if the member were to
4363 retire under each of the retirement programs, based on
4364 appropriate alternative sets of assumptions.
4365 4. The rate of return from investments in the defined
4366 contribution program and the period of time over which such rate
4367 of return must be achieved to equal or exceed the expected
4368 monthly benefit payable to the member under the pension plan
4369 defined benefit program.
4370 5. The historical rates of return for the investment
4371 alternatives available in the defined contribution programs.
4372 6. The benefits and historical rates of return on
4373 investments available in a typical deferred compensation plan or
4374 a typical plan under s. 403(b) of the Internal Revenue Code for
4375 which the employee may be eligible.
4376 7. The program choices available to employees of the State
4377 University System and the comparative benefits of each available
4378 program, if applicable.
4379 8. Payout options available in each of the retirement
4380 programs.
4381 (d) An ongoing education and communication component must
4382 provide eligible employees system members with information
4383 necessary to make informed decisions about choices within their
4384 retirement system program of membership and in preparation for
4385 retirement. The component must include, but is not limited to,
4386 information concerning:
4387 1. Rights and conditions of membership.
4388 2. Benefit features within the program, options, and
4389 effects of certain decisions.
4390 3. Coordination of contributions and benefits with a
4391 deferred compensation plan under s. 457 or a plan under s.
4392 403(b) of the Internal Revenue Code.
4393 4. Significant program changes.
4394 5. Contribution rates and program funding status.
4395 6. Planning for retirement.
4396 (e) Descriptive materials must be prepared under the
4397 assumption that the employee is an unsophisticated investor, and
4398 all materials used in the education component must be approved
4399 by the state board prior to dissemination.
4400 (f) The state board and the department shall also establish
4401 a communication component to provide program information to
4402 participating employers and the employers’ personnel and payroll
4403 officers and to explain their respective responsibilities in
4404 conjunction with the retirement programs.
4405 (g) Funding for education of new employees may reflect
4406 administrative costs to the investment plan optional program and
4407 the pension plan defined benefit program.
4408 (h) Pursuant to subsection paragraph (8)(a), all Florida
4409 Retirement System employers have an obligation to regularly
4410 communicate the existence of the two Florida Retirement System
4411 plans and the plan choice in the natural course of administering
4412 their personnel functions, using the educational materials
4413 supplied by the state board and the Department of Management
4414 Services.
4415 (11) MEMBER PARTICIPANT INFORMATION REQUIREMENTS.—The state
4416 board shall ensure that each member participant is provided a
4417 quarterly statement that accounts for the contributions made on
4418 behalf of the member such participant; the interest and
4419 investment earnings thereon; and any fees, penalties, or other
4420 deductions that apply thereto. At a minimum, such statements
4421 must:
4422 (a) Indicate the member’s participant’s investment options.
4423 (b) State the market value of the account at the close of
4424 the current quarter and previous quarter.
4425 (c) Show account gains and losses for the period and
4426 changes in account accumulation unit values for the quarter
4427 period.
4428 (d) Itemize account contributions for the quarter.
4429 (e) Indicate any account changes due to adjustment of
4430 contribution levels, reallocation of contributions, balance
4431 transfers, or withdrawals.
4432 (f) Set forth any fees, charges, penalties, and deductions
4433 that apply to the account.
4434 (g) Indicate the amount of the account in which the member
4435 participant is fully vested and the amount of the account in
4436 which the member participant is not vested.
4437 (h) Indicate each investment product’s performance relative
4438 to an appropriate market benchmark.
4439
4440 The third-party administrator shall provide quarterly and annual
4441 summary reports to the state board and any other reports
4442 requested by the department or the state board. In any
4443 solicitation or offer of coverage under the investment plan an
4444 optional retirement program, a provider company shall be
4445 governed by the contract readability provisions of s. 627.4145,
4446 notwithstanding s. 627.4145(6)(c). In addition, all descriptive
4447 materials must be prepared under the assumption that the member
4448 participant is an unsophisticated investor. Provider companies
4449 must maintain an internal system of quality assurance, have
4450 proven functional systems that are date-calculation compliant,
4451 and be subject to a due-diligence inquiry that proves their
4452 capacity and fitness to undertake service responsibilities.
4453 (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.—The
4454 Investment Advisory Council, created pursuant to s. 215.444,
4455 shall assist the state board in implementing and administering
4456 the investment plan Public Employee Optional Retirement Program.
4457 The Investment Advisory council, created pursuant to s. 215.444,
4458 shall review the state board’s initial recommendations regarding
4459 the criteria to be used in selecting and evaluating approved
4460 providers and investment products. The council may provide
4461 comments on the recommendations to the state board within 45
4462 days after receiving the initial recommendations. The state
4463 board shall make the final determination as to whether any
4464 investment provider or product, any contractor, or any and all
4465 contract provisions are shall be approved for the investment
4466 plan program.
4467 (13) FEDERAL REQUIREMENTS.—
4468 (a) Provisions of This section shall be construed, and the
4469 investment plan Public Employee Optional Retirement Program
4470 shall be administered, so as to comply with the Internal Revenue
4471 Code, 26 U.S.C., and specifically with plan qualification
4472 requirements imposed on governmental plans under s. 401(a) of
4473 the Internal Revenue Code. The state board may shall have the
4474 power and authority to adopt rules reasonably necessary to
4475 establish or maintain the qualified status of the investment
4476 plan Optional Retirement Program under the Internal Revenue Code
4477 and to implement and administer the investment plan Optional
4478 Retirement Program in compliance with the Internal Revenue Code
4479 and as designated under this part; provided however, that the
4480 board shall not have the authority to adopt any rule which makes
4481 a substantive change to the investment plan Optional Retirement
4482 Program as designed by this part.
4483 (b) Any section or provision of this chapter which is
4484 susceptible to more than one construction shall must be
4485 interpreted in favor of the construction most likely to satisfy
4486 requirements imposed by s. 401(a) of the Internal Revenue Code.
4487 (c) Contributions payable under this section for any
4488 limitation year may not exceed the maximum amount allowable for
4489 qualified defined contribution pension plans under applicable
4490 provisions of the Internal Revenue Code. If an employee who is
4491 enrolled has elected to participate in the investment plan
4492 Public Employee Optional Retirement Program participates in any
4493 other plan that is maintained by the participating employer,
4494 benefits that accrue under the investment plan Public Employee
4495 Optional Retirement Program shall be considered primary for any
4496 aggregate limitation applicable under s. 415 of the Internal
4497 Revenue Code.
4498 (14) INVESTMENT POLICY STATEMENT.—
4499 (a) Investment products and approved providers selected for
4500 the investment plan must Public Employee Optional Retirement
4501 Program shall conform with the Florida Retirement System
4502 Investment Plan Public Employee Optional Retirement Program
4503 Investment Policy Statement, herein referred to as the
4504 “statement,” as developed and approved by the trustees of the
4505 state board of Administration. The statement must include, among
4506 other items, the investment objectives of the investment plan
4507 Public Employee Optional Retirement Program, manager selection
4508 and monitoring guidelines, and performance measurement criteria.
4509 As required from time to time, the executive director of the
4510 state board may present recommended changes in the statement to
4511 the board for approval.
4512 (b) Prior to presenting the statement, or any recommended
4513 changes thereto, to the state board, the executive director of
4514 the board shall present such statement or changes to the
4515 Investment Advisory Council for review. The council shall
4516 present the results of its review to the board prior to the
4517 board’s final approval of the statement or changes in the
4518 statement.
4519 (15) STATEMENT OF FIDUCIARY STANDARDS AND
4520 RESPONSIBILITIES.—
4521 (a) Investment of optional defined contribution retirement
4522 plan assets shall be made for the sole interest and exclusive
4523 purpose of providing benefits to members plan participants and
4524 beneficiaries and defraying reasonable expenses of administering
4525 the plan. The program’s assets shall are to be invested, on
4526 behalf of the program members participants, with the care,
4527 skill, and diligence that a prudent person acting in a like
4528 manner would undertake. The performance of the investment duties
4529 set forth in this paragraph shall comply with the fiduciary
4530 standards set forth in the Employee Retirement Income Security
4531 Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case of
4532 conflict with other provisions of law authorizing investments,
4533 the investment and fiduciary standards set forth in this
4534 subsection shall prevail.
4535 (b) If a member participant or beneficiary of the
4536 investment plan Public Employee Optional Retirement Program
4537 exercises control over the assets in his or her account, as
4538 determined by reference to regulations of the United States
4539 Department of Labor under s. 404(c) of the Employee Retirement
4540 Income Security Act of 1974 and all applicable laws governing
4541 the operation of the program, a no program fiduciary is not
4542 shall be liable for any loss to a member’s participant’s or
4543 beneficiary’s account which results from the member’s such
4544 participant’s or beneficiary’s exercise of control.
4545 (c) Subparagraph (8)(b)2.4. and paragraph (15)(b)
4546 incorporate the federal law concept of participant control,
4547 established by regulations of the United States Department of
4548 Labor under s. 404(c) of the Employee Retirement Income Security
4549 Act of 1974 (ERISA). The purpose of this paragraph is to assist
4550 employers and the state board of Administration in maintaining
4551 compliance with s. 404(c), while avoiding unnecessary costs and
4552 eroding member participant benefits under the investment plan
4553 Public Employee Optional Retirement Program. Pursuant to 29
4554 C.F.R. s. 2550.404c-1(b)(2)(i)(B)(1)(viii), the state board of
4555 Administration or its designated agents shall deliver to members
4556 participants of the investment plan Public Employee Optional
4557 Retirement Program a copy of the prospectus most recently
4558 provided to the plan, and, pursuant to 29 C.F.R. s. 2550.404c
4559 1(b)(2)(i)(B)(2)(ii), shall provide such members participants an
4560 opportunity to obtain this information, except that:
4561 1. The requirement to deliver a prospectus shall be deemed
4562 to be satisfied by delivery of a fund profile or summary profile
4563 that contains the information that would be included in a
4564 summary prospectus as described by Rule 498 under the Securities
4565 Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees,
4566 expense information or other information provided by a mutual
4567 fund in the prospectus does not reflect terms negotiated by the
4568 state board of Administration or its designated agents, the
4569 aforementioned requirement is deemed to be satisfied by delivery
4570 of a separate document described by Rule 498 substituting
4571 accurate information; and
4572 2. Delivery shall be deemed to have been effected if
4573 delivery is through electronic means and the following standards
4574 are satisfied:
4575 a. Electronically-delivered documents are prepared and
4576 provided consistent with style, format, and content requirements
4577 applicable to printed documents;
4578 b. Each member participant is provided timely and adequate
4579 notice of the documents that are to be delivered, and their
4580 significance thereof, and of the member’s participant’s right to
4581 obtain a paper copy of such documents free of charge;
4582 c.(I) Members Participants have adequate access to the
4583 electronic documents, at locations such as their worksites or
4584 public facilities, and have the ability to convert the documents
4585 to paper free of charge by the state board of Administration,
4586 and the board or its designated agents take appropriate and
4587 reasonable measures to ensure that the system for furnishing
4588 electronic documents results in actual receipt., or
4589 (II) Members Participants have provided consent to receive
4590 information in electronic format, which consent may be revoked;
4591 and
4592 d. The state board of Administration, or its designated
4593 agent, actually provides paper copies of the documents free of
4594 charge, upon request.
4595 (16) DISABILITY BENEFITS.—For any member participant of the
4596 investment plan optional retirement program who becomes totally
4597 and permanently disabled, benefits must shall be paid in
4598 accordance with the provisions of s. 121.591.
4599 (17) SOCIAL SECURITY COVERAGE.—Social security coverage
4600 shall be provided for all officers and employees who become
4601 members participants of the investment plan optional program.
4602 Any modification of the present agreement with the Social
4603 Security Administration, or referendum required under the Social
4604 Security Act, for the purpose of providing social security
4605 coverage for any member shall be requested by the state agency
4606 in compliance with the applicable provisions of the Social
4607 Security Act governing such coverage. However, retroactive
4608 social security coverage for service prior to December 1, 1970,
4609 with the employer may shall not be provided for any member who
4610 was not covered under the agreement as of November 30, 1970.
4611 (18) RETIREE HEALTH INSURANCE SUBSIDY.—All officers and
4612 employees who are members participants of the investment plan
4613 are optional program shall be eligible to receive the retiree
4614 health insurance subsidy, subject to the provisions of s.
4615 112.363.
4616 (19) MEMBER PARTICIPANT RECORDS.—Personal identifying
4617 information of a member participant in the investment plan
4618 Public Employee Optional Retirement Program contained in Florida
4619 Retirement System records held by the state board of
4620 Administration or the department of Management Services is
4621 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
4622 Constitution.
4623 (20) DESIGNATION OF BENEFICIARIES.—
4624 (a) Each member participant may, by electronic means or on
4625 a form provided for that purpose, signed and filed with the
4626 third-party administrator, designate a choice of one or more
4627 persons, named sequentially or jointly, as his or her
4628 beneficiary for receiving who shall receive the benefits, if
4629 any, which may be payable pursuant to this chapter in the event
4630 of the member’s participant’s death. If no beneficiary is named
4631 in this manner, or if no beneficiary designated by the member
4632 participant survives the member participant, the beneficiary
4633 shall be the spouse of the deceased, if living. If the member’s
4634 participant’s spouse is not alive at the time of the member’s
4635 his or her death, the beneficiary shall be the living children
4636 of the member participant. If no children survive, the
4637 beneficiary shall be the member’s participant’s father or
4638 mother, if living; otherwise, the beneficiary shall be the
4639 member’s participant’s estate. The beneficiary most recently
4640 designated by a member participant on a form or letter filed
4641 with the third-party administrator shall be the beneficiary
4642 entitled to any benefits payable at the time of the member’s
4643 participant’s death. However Notwithstanding any other provision
4644 in this subsection to the contrary, for a member participant who
4645 dies prior to his or her effective date of retirement, the
4646 spouse at the time of death shall be the member’s participant’s
4647 beneficiary unless the member such participant designates a
4648 different beneficiary as provided in this subsection subsequent
4649 to the member’s participant’s most recent marriage.
4650 (b) If a member participant designates a primary
4651 beneficiary other than the member’s participant’s spouse, the
4652 member’s participant’s spouse must sign the beneficiary
4653 designation form to acknowledge the designation. This
4654 requirement does not apply to the designation of one or more
4655 contingent beneficiaries to receive benefits remaining upon the
4656 death of the primary beneficiary or beneficiaries.
4657 (c) Notwithstanding the member’s participant’s designation
4658 of benefits to be paid through a trust to a beneficiary that is
4659 a natural person, and notwithstanding the provisions of the
4660 trust, benefits must shall be paid directly to the beneficiary
4661 if the person is no longer a minor or an incapacitated person as
4662 defined in s. 744.102.
4663 (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT OPTION
4664 PROGRAM MEMBERS PARTICIPANTS.—Notwithstanding any other
4665 provision of law to the contrary, members participants in the
4666 Deferred Retirement Option Program offered under part I may,
4667 after conclusion of their participation in the program, elect to
4668 roll over or authorize a direct trustee-to-trustee transfer to
4669 an account under the investment plan Public Employee Optional
4670 Retirement Program of their Deferred Retirement Option Program
4671 proceeds distributed as provided under s. 121.091(13)(c)5. The
4672 transaction must constitute an “eligible rollover distribution”
4673 within the meaning of s. 402(c)(4) of the Internal Revenue Code.
4674 (a) The investment plan Public Employee Optional Retirement
4675 Program may accept such amounts for deposit into member
4676 participant accounts as provided in paragraph (5)(e)(c).
4677 (b) The affected member participant shall direct the
4678 investment of his or her investment account; however, unless he
4679 or she becomes a renewed member of the Florida Retirement System
4680 under s. 121.122 and elects to participate in the investment
4681 plan Public Employee Optional Retirement Program, no employer
4682 contributions may not be made to the member’s participant’s
4683 account as provided under paragraph (5)(a).
4684 (c) The state board or the department is not responsible
4685 for locating those persons who may be eligible to participate in
4686 the investment plan Public Employee Optional Retirement Program
4687 under this subsection.
4688 (22) CREDIT FOR MILITARY SERVICE.—Creditable service of any
4689 member of the investment plan includes Public Employee Optional
4690 Retirement Program shall include military service in the Armed
4691 Forces of the United States as provided in the conditions
4692 outlined in s. 121.111(1).
4693 Section 27. Section 121.4502, Florida Statutes, is amended
4694 to read:
4695 121.4502 Florida Retirement System Investment Plan Public
4696 Employee Optional Retirement Program Trust Fund.—
4697 (1) The Florida Retirement System Investment Plan Public
4698 Employee Optional Retirement Program Trust Fund is created to
4699 hold the assets of the Florida Retirement System Investment Plan
4700 Public Employee Optional Retirement Program in trust for the
4701 exclusive benefit of the plan’s members such program’s
4702 participants and beneficiaries, and for the payment of
4703 reasonable administrative expenses of the plan program, in
4704 accordance with s. 401 of the Internal Revenue Code, and shall
4705 be administered by the state board of Administration as trustee.
4706 Funds shall be credited to the trust fund as provided in this
4707 part, to be used for the purposes of this part. The trust fund
4708 is exempt from the service charges imposed by s. 215.20.
4709 (2) The Florida Retirement System Investment Plan Public
4710 Employee Optional Retirement Program Trust Fund is a retirement
4711 trust fund of the Florida Retirement System that accounts for
4712 retirement plan assets held by the state in a trustee capacity
4713 as a fiduciary for individual participants in the Florida
4714 Retirement System Investment Plan Public Employee Optional
4715 Retirement Program and, pursuant to s. 19(f), Art. III of the
4716 State Constitution, is not subject to termination.
4717 (3) A forfeiture account shall be created within the
4718 Florida Retirement System Investment Plan Public Employee
4719 Optional Retirement Program Trust Fund to hold the assets
4720 derived from the forfeiture of benefits by participants.
4721 Pursuant to a private letter ruling from the Internal Revenue
4722 Service, the forfeiture account may be used only for paying
4723 expenses of the Florida Retirement System Investment Plan Public
4724 Employee Optional Retirement Program and reducing future
4725 employer contributions to the program. Consistent with Rulings
4726 80-155 and 74-340 of the Internal Revenue Service, unallocated
4727 reserves within the forfeiture account must be used as quickly
4728 and as prudently as possible considering the state board’s
4729 fiduciary duty. Expected withdrawals from the account must
4730 endeavor to reduce the account to zero each fiscal year.
4731 Section 28. Subsections (1) and (3) of section 121.4503,
4732 Florida Statutes, are amended to read:
4733 121.4503 Florida Retirement System Contributions Clearing
4734 Trust Fund.—
4735 (1) The Florida Retirement System Contributions Clearing
4736 Trust Fund is created as a clearing fund for disbursing employer
4737 and employee contributions to the component plans of the Florida
4738 Retirement System and shall be administered by the Department of
4739 Management Services. Funds shall be credited to the trust fund
4740 as provided in this chapter and shall be held in trust for the
4741 contributing employees and employers until such time as the
4742 assets are transferred by the department to the Florida
4743 Retirement System Trust Fund, the Florida Retirement System
4744 Investment Plan Public Employee Optional Retirement Program
4745 Trust Fund, or other trust funds as authorized by law, to be
4746 used for the purposes of this chapter. The trust fund is exempt
4747 from the service charges imposed by s. 215.20.
4748 (3) The Department of Management Services may adopt rules
4749 governing the receipt and disbursement of amounts received by
4750 the Florida Retirement System Contributions Clearing Trust Fund
4751 from employers and employees contributing to the component plans
4752 of the Florida Retirement System.
4753 Section 29. Section 121.571, Florida Statutes, is amended
4754 to read:
4755 121.571 Contributions.—Contributions to the Florida
4756 Retirement System Investment Plan Public Employee Optional
4757 Retirement Program shall be made as follows:
4758 (1) CONTRIBUTORY NONCONTRIBUTORY PLAN.—Each employer and
4759 employee shall submit accomplish the contributions as required
4760 by s. 121.71 by a procedure in which no employee’s gross salary
4761 shall be reduced.
4762 (2) CONTRIBUTION RATES GENERALLY.—Contributions to fund the
4763 retirement and disability benefits provided under this part must
4764 shall be based on the uniform contribution rates established by
4765 s. 121.71 and on the membership class or subclass of the member
4766 participant. Such contributions must shall be allocated as
4767 provided in ss. 121.72 and 121.73.
4768 (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
4769 RETIREE HEALTH INSURANCE SUBSIDY.—Contributions required under
4770 s. 121.71 are this section shall be in addition to employer and
4771 member contributions required for social security and the
4772 Retiree Health Insurance Subsidy Trust Fund as required under
4773 provided in ss. 112.363, 121.052, 121.055, and 121.071, as
4774 appropriate.
4775 Section 30. Section 121.591, Florida Statutes, is amended
4776 to read:
4777 121.591 Payment of benefits payable under the Public
4778 Employee Optional Retirement Program of the Florida Retirement
4779 System.—Benefits may not be paid under the Florida Retirement
4780 System Investment Plan this section unless the member has
4781 terminated employment as provided in s. 121.021(39)(a) or is
4782 deceased and a proper application has been filed as in the
4783 manner prescribed by the state board or the department. Before
4784 termination of employment, benefits, including employee
4785 contributions, are not payable under the investment plan for
4786 employee hardships, unforeseeable emergencies, loans, medical
4787 expenses, educational expenses, purchase of a principal
4788 residence, payments necessary to prevent eviction or foreclosure
4789 on an employee’s principal residence, or any other reason prior
4790 to termination from all employment relationships with
4791 participating employers. The state board or department, as
4792 appropriate, may cancel an application for retirement benefits
4793 if when the member or beneficiary fails to timely provide the
4794 information and documents required by this chapter and the rules
4795 of the state board and department. In accordance with their
4796 respective responsibilities as provided herein, the state board
4797 of Administration and the department of Management Services
4798 shall adopt rules establishing procedures for application for
4799 retirement benefits and for the cancellation of such application
4800 if when the required information or documents are not received.
4801 The state board of Administration and the department of
4802 Management Services, as appropriate, are authorized to cash out
4803 a de minimis account of a member participant who has been
4804 terminated from Florida Retirement System covered employment for
4805 a minimum of 6 calendar months. A de minimis account is an
4806 account containing employer and employee contributions and
4807 accumulated earnings of not more than $5,000 made under the
4808 provisions of this chapter. Such cash-out must either be a
4809 complete lump-sum liquidation of the account balance, subject to
4810 the provisions of the Internal Revenue Code, or a lump-sum
4811 direct rollover distribution paid directly to the custodian of
4812 an eligible retirement plan, as defined by the Internal Revenue
4813 Code, on behalf of the member participant. Any nonvested
4814 accumulations and associated service credit, including amounts
4815 transferred to the suspense account of the Florida Retirement
4816 System Investment Plan Trust Fund authorized under s.
4817 121.4501(6), shall be forfeited upon payment of any vested
4818 benefit to a member or beneficiary, except for de minimis
4819 distributions or minimum required distributions as provided
4820 under this section. If any financial instrument issued for the
4821 payment of retirement benefits under this section is not
4822 presented for payment within 180 days after the last day of the
4823 month in which it was originally issued, the third-party
4824 administrator or other duly authorized agent of the state board
4825 of Administration shall cancel the instrument and credit the
4826 amount of the instrument to the suspense account of the Florida
4827 Retirement System Investment Plan Public Employee Optional
4828 Retirement Program Trust Fund authorized under s. 121.4501(6).
4829 Any such amounts transferred to the suspense account are payable
4830 upon a proper application, not to include earnings thereon, as
4831 provided in this section, within 10 years after the last day of
4832 the month in which the instrument was originally issued, after
4833 which time such amounts and any earnings attributable to
4834 employer contributions thereon shall be forfeited. Any such
4835 forfeited amounts are assets of the Public Employee Optional
4836 Retirement Program trust fund and are not subject to the
4837 provisions of chapter 717.
4838 (1) NORMAL BENEFITS.—Under the investment plan Public
4839 Employee Optional Retirement Program:
4840 (a) Benefits in the form of vested accumulations as
4841 described in s. 121.4501(6) are payable under this subsection in
4842 accordance with the following terms and conditions:
4843 1. To the extent vested, Benefits are payable only to a
4844 member, an alternate payee of a qualified domestic relations
4845 order, or a beneficiary participant.
4846 2. Benefits shall be paid by the third-party administrator
4847 or designated approved providers in accordance with the law, the
4848 contracts, and any applicable board rule or policy.
4849 3. To receive benefits, The member participant must be
4850 terminated from all employment with all Florida Retirement
4851 System employers, as provided in s. 121.021(39).
4852 4. Benefit payments may not be made until the member
4853 participant has been terminated for 3 calendar months, except
4854 that the state board may authorize by rule for the distribution
4855 of up to 10 percent of the member’s participant’s account after
4856 being terminated for 1 calendar month if the member participant
4857 has reached the normal retirement date as defined in s. 121.021
4858 of the defined benefit plan.
4859 5. If a member or former member of the Florida Retirement
4860 System receives an invalid distribution from the Public Employee
4861 Optional Retirement Program Trust Fund, such person must either
4862 repay the full amount invalid distribution to the trust fund
4863 within 90 days after receipt of final notification by the state
4864 board or the third-party administrator that the distribution was
4865 invalid, or, in lieu of repayment, the member must terminate
4866 employment from all participating employers. If such person
4867 fails to repay the full invalid distribution within 90 days
4868 after receipt of final notification, the person may be deemed
4869 retired from the investment plan optional retirement program by
4870 the state board, as provided pursuant to s. 121.4501(2)(k), and
4871 is subject to s. 121.122. If such person is deemed retired by
4872 the state board, any joint and several liability set out in s.
4873 121.091(9)(d)2. is becomes null and void, and the state board,
4874 the department, or the employing agency is not liable for gains
4875 on payroll contributions that have not been deposited to the
4876 person’s account in the investment plan retirement program,
4877 pending resolution of the invalid distribution. The member or
4878 former member who has been deemed retired or who has been
4879 determined by the state board to have taken an invalid
4880 distribution may appeal the agency decision through the
4881 complaint process as provided under s. 121.4501(9)(g)3. As used
4882 in this subparagraph, the term “invalid distribution” means any
4883 distribution from an account in the investment plan optional
4884 retirement program which is taken in violation of this section,
4885 s. 121.091(9), or s. 121.4501.
4886 (b) If a member participant elects to receive his or her
4887 benefits upon termination of employment as defined in s.
4888 121.021, the member participant must submit a written
4889 application or an application by electronic means to the third
4890 party administrator indicating his or her preferred distribution
4891 date and selecting an authorized method of distribution as
4892 provided in paragraph (c). The member participant may defer
4893 receipt of benefits until he or she chooses to make such
4894 application, subject to federal requirements.
4895 (c) Upon receipt by the third-party administrator of a
4896 properly executed application for distribution of benefits, the
4897 total accumulated benefit is shall be payable to the member pro
4898 rata across all Florida Retirement System benefit sources
4899 participant, as:
4900 1. A lump-sum or partial distribution to the member
4901 participant;
4902 2. A lump-sum direct rollover distribution whereby all
4903 accrued benefits, plus interest and investment earnings, are
4904 paid from the member’s participant’s account directly to the
4905 custodian of an eligible retirement plan, as defined in s.
4906 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4907 member participant; or
4908 3. Periodic distributions, as authorized by the state
4909 board.
4910 (d) The distribution payment method selected by the member
4911 or beneficiary, and the retirement of the member or beneficiary,
4912 is final and irrevocable at the time a benefit distribution
4913 payment is cashed, deposited, or transferred to another
4914 financial institution. Any additional service that remains
4915 unclaimed at retirement may not be claimed or purchased, and the
4916 type of retirement may not be changed, except that if a member
4917 recovers from a disability, the member may subsequently request
4918 benefits under subsection (2).
4919 (e) A member may not receive a distribution of employee
4920 contributions if a pending qualified domestic relations order is
4921 filed against the member’s investment plan account.
4922 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
4923 this subsection are payable in lieu of the benefits that which
4924 would otherwise be payable under the provisions of subsection
4925 (1). Such benefits must shall be funded entirely from employer
4926 contributions made under s. 121.571, transferred employee
4927 contributions and participant funds accumulated pursuant to
4928 paragraph (a), and interest and earnings thereon. Pursuant
4929 thereto:
4930 (a) Transfer of funds.—To qualify to receive monthly
4931 disability benefits under this subsection:
4932 1. All moneys accumulated in the member’s account
4933 participant’s Public Employee Optional Retirement Program
4934 accounts, including vested and nonvested accumulations as
4935 described in s. 121.4501(6), must shall be transferred from such
4936 individual accounts to the division of Retirement for deposit in
4937 the disability account of the Florida Retirement System Trust
4938 Fund. Such moneys must shall be separately accounted for
4939 separately. Earnings must shall be credited on an annual basis
4940 for amounts held in the disability accounts of the Florida
4941 Retirement System Trust Fund based on actual earnings of the
4942 Florida Retirement System trust fund.
4943 2. If the member participant has retained retirement credit
4944 he or she had earned under the pension plan defined benefit
4945 program of the Florida Retirement System as provided in s.
4946 121.4501(3)(b), a sum representing the actuarial present value
4947 of such credit within the Florida Retirement System Trust Fund
4948 shall be reassigned by the division of Retirement from the
4949 pension plan defined benefit program to the disability program
4950 as implemented under this subsection and shall be deposited in
4951 the disability account of the Florida Retirement System trust
4952 fund. Such moneys must shall be separately accounted for
4953 separately.
4954 (b) Disability retirement; entitlement.—
4955 1. A member participant of the investment plan Public
4956 Employee Optional Retirement Program who becomes totally and
4957 permanently disabled, as defined in paragraph (d) s.
4958 121.091(4)(b), after completing 8 years of creditable service,
4959 or a member participant who becomes totally and permanently
4960 disabled in the line of duty regardless of his or her length of
4961 service, is shall be entitled to a monthly disability benefit as
4962 provided herein.
4963 2. In order for service to apply toward the 8 years of
4964 creditable service required to vest for regular disability
4965 benefits, or toward the creditable service used in calculating a
4966 service-based benefit as provided for under paragraph (g), the
4967 service must be creditable service as described below:
4968 a. The member’s participant’s period of service under the
4969 investment plan shall Public Employee Optional Retirement
4970 Program will be considered creditable service, except as
4971 provided in subparagraph d.
4972 b. If the member participant has elected to retain credit
4973 for his or her service under the pension plan defined benefit
4974 program of the Florida Retirement System as provided under s.
4975 121.4501(3)(b), all such service shall will be considered
4976 creditable service.
4977 c. If the member elects participant has elected to transfer
4978 to his or her member participant accounts a sum representing the
4979 present value of his or her retirement credit under the pension
4980 plan defined benefit program as provided under s.
4981 121.4501(3)(c), the period of service under the pension plan
4982 defined benefit program represented in the present value amounts
4983 transferred shall will be considered creditable service for
4984 purposes of vesting for disability benefits, except as provided
4985 in subparagraph d.
4986 d. If a member Whenever a participant has terminated
4987 employment and has taken distribution of his or her funds as
4988 provided in subsection (1), all creditable service represented
4989 by such distributed funds is forfeited for purposes of this
4990 subsection.
4991 (c) Disability retirement effective date.—The effective
4992 retirement date for a member participant who applies and is
4993 approved for disability retirement shall be established as
4994 provided under s. 121.091(4)(a)2. and 3.
4995 (d) Total and permanent disability.—A member participant
4996 shall be considered totally and permanently disabled if, in the
4997 opinion of the division, he or she is prevented, by reason of a
4998 medically determinable physical or mental impairment, from
4999 rendering useful and efficient service as an officer or
5000 employee.
5001 (e) Proof of disability.—The division, Before approving
5002 payment of any disability retirement benefit, the division shall
5003 require proof that the member participant is totally and
5004 permanently disabled in the same manner as provided for members
5005 of the defined benefit program of the Florida Retirement System
5006 under s. 121.091(4)(c).
5007 (f) Disability retirement benefit.—Upon the disability
5008 retirement of a member participant under this subsection, the
5009 member participant shall receive a monthly benefit that begins
5010 accruing shall begin to accrue on the first day of the month of
5011 disability retirement, as approved by the division, and is shall
5012 be payable on the last day of that month and each month
5013 thereafter during his or her lifetime and continued disability.
5014 All disability benefits must payable to such member shall be
5015 paid out of the disability account of the Florida Retirement
5016 System Trust Fund established under this subsection.
5017 (g) Computation of disability retirement benefit.—The
5018 amount of each monthly payment must shall be calculated in the
5019 same manner as provided for members of the defined benefit
5020 program of the Florida Retirement System under s. 121.091(4)(f).
5021 For such purpose, Creditable service under both the pension plan
5022 defined benefit program and the investment plan Public Employee
5023 Optional Retirement Program of the Florida Retirement System
5024 shall be applicable as provided under paragraph (b).
5025 (h) Reapplication.—A member participant whose initial
5026 application for disability retirement is has been denied may
5027 reapply for disability benefits in the same manner, and under
5028 the same conditions, as provided in for members of the defined
5029 benefit program of the Florida Retirement System under s.
5030 121.091(4)(g).
5031 (i) Membership.—Upon approval of a member’s an application
5032 for disability benefits under this subsection, the member
5033 applicant shall be transferred to the pension plan defined
5034 benefit program of the Florida Retirement System, effective upon
5035 his or her disability retirement effective date.
5036 (j) Option to cancel.—A member Any participant whose
5037 application for disability benefits is approved may cancel the
5038 his or her application if for disability benefits, provided that
5039 the cancellation request is received by the division before a
5040 disability retirement warrant has been deposited, cashed, or
5041 received by direct deposit. Upon such cancellation:
5042 1. The member’s participant’s transfer to the pension plan
5043 defined benefit program under paragraph (i) shall be nullified;
5044 2. The member participant shall be retroactively reinstated
5045 in the investment plan Public Employee Optional Retirement
5046 Program without hiatus;
5047 3. All funds transferred to the Florida Retirement System
5048 Trust Fund under paragraph (a) must shall be returned to the
5049 member participant accounts from which the such funds were
5050 drawn; and
5051 4. The member participant may elect to receive the benefit
5052 payable under the provisions of subsection (1) in lieu of
5053 disability benefits as provided under this subsection.
5054 (k) Recovery from disability.—
5055 1. The division may require periodic reexaminations at the
5056 expense of the disability program account of the Florida
5057 Retirement System Trust Fund. Except as otherwise provided in
5058 subparagraph 2., the requirements, procedures, and restrictions
5059 relating to the conduct and review of such reexaminations,
5060 discontinuation or termination of benefits, reentry into
5061 employment, disability retirement after reentry into covered
5062 employment, and all other matters relating to recovery from
5063 disability shall be the same as provided are set forth under s.
5064 121.091(4)(h).
5065 2. Upon recovery from disability, the any recipient of
5066 disability retirement benefits under this subsection shall be a
5067 compulsory member of the investment plan Public Employee
5068 Optional Retirement Program of the Florida Retirement System.
5069 The net difference between the recipient’s original account
5070 balance transferred to the Florida Retirement System Trust Fund,
5071 including earnings, under paragraph (a) and total disability
5072 benefits paid to such recipient, if any, shall be determined as
5073 provided in sub-subparagraph a.
5074 a. An amount equal to the total benefits paid shall be
5075 subtracted from that portion of the transferred account balance
5076 consisting of vested accumulations as described under s.
5077 121.4501(6), if any, and an amount equal to the remainder of
5078 benefit amounts paid, if any, shall then be subtracted from any
5079 remaining portion consisting of nonvested accumulations as
5080 described under s. 121.4501(6).
5081 b. Amounts subtracted under sub-subparagraph a. must shall
5082 be retained within the disability account of the Florida
5083 Retirement System Trust Fund. Any remaining account balance
5084 shall be transferred to the third-party administrator for
5085 disposition as provided under sub-subparagraph c. or sub
5086 subparagraph d., as appropriate.
5087 c. If the recipient returns to covered employment,
5088 transferred amounts must shall be deposited in individual
5089 accounts under the investment plan Public Employee Optional
5090 Retirement Program, as directed by the member participant.
5091 Vested and nonvested amounts shall be separately accounted for
5092 separately as provided in s. 121.4501(6).
5093 d. If the recipient fails to return to covered employment
5094 upon recovery from disability:
5095 (I) Any remaining vested amount must shall be deposited in
5096 individual accounts under the investment plan Public Employee
5097 Optional Retirement Program, as directed by the member
5098 participant, and is shall be payable as provided in subsection
5099 (1).
5100 (II) Any remaining nonvested amount must shall be held in a
5101 suspense account and is shall be forfeitable after 5 years as
5102 provided in s. 121.4501(6).
5103 3. If present value was reassigned from the pension plan
5104 defined benefit program to the disability program of the Florida
5105 Retirement System as provided under subparagraph (a)2., the full
5106 present value amount must shall be returned to the defined
5107 benefit account within the Florida Retirement System Trust Fund
5108 and the member’s affected individual’s associated retirement
5109 credit under the pension plan must defined benefit program shall
5110 be reinstated in full. Any benefit based upon such credit must
5111 shall be calculated as provided in s. 121.091(4)(h)1.
5112 (l) Nonadmissible causes of disability.—A member is
5113 participant shall not be entitled to receive a disability
5114 retirement benefit if the disability results from any injury or
5115 disease sustained or inflicted as described in s. 121.091(4)(i).
5116 (m) Disability retirement of justice or judge by order of
5117 Supreme Court.—
5118 1. If a member participant is a justice of the Supreme
5119 Court, judge of a district court of appeal, circuit judge, or
5120 judge of a county court who has served for the years equal to,
5121 or greater than, the vesting requirement in s. 121.021(45) 6
5122 years or more as an elected constitutional judicial officer,
5123 including service as a judicial officer in any court abolished
5124 pursuant to Art. V of the State Constitution, and who is retired
5125 for disability by order of the Supreme Court upon recommendation
5126 of the Judicial Qualifications Commission pursuant to s. 12, the
5127 provisions of Art. V of the State Constitution, the member’s
5128 participant’s Option 1 monthly disability benefit amount as
5129 provided in s. 121.091(6)(a)1. shall be two-thirds of his or her
5130 monthly compensation as of the member’s participant’s disability
5131 retirement date. The member Such a participant may alternatively
5132 elect to receive an actuarially adjusted disability retirement
5133 benefit under any other option as provided in s. 121.091(6)(a),
5134 or to receive the normal benefit payable under the Public
5135 Employee Optional Retirement Program as set forth in subsection
5136 (1).
5137 2. If any justice or judge who is a member participant of
5138 the investment plan Public Employee Optional Retirement Program
5139 of the Florida Retirement System is retired for disability by
5140 order of the Supreme Court upon recommendation of the Judicial
5141 Qualifications Commission pursuant to s. 12, the provisions of
5142 Art. V of the State Constitution and elects to receive a monthly
5143 disability benefit under the provisions of this paragraph:
5144 a. Any present value amount that was transferred to his or
5145 her investment plan program account and all employer and
5146 employee contributions made to such account on his or her
5147 behalf, plus interest and earnings thereon, must shall be
5148 transferred to and deposited in the disability account of the
5149 Florida Retirement System Trust Fund; and
5150 b. The monthly disability benefits payable under this
5151 paragraph for any affected justice or judge retired from the
5152 Florida Retirement System pursuant to Art. V of the State
5153 Constitution shall be paid from the disability account of the
5154 Florida Retirement System Trust Fund.
5155 (n) Death of retiree or beneficiary.—Upon the death of a
5156 disabled retiree or beneficiary of the retiree thereof who is
5157 receiving monthly disability benefits under this subsection, the
5158 monthly benefits shall be paid through the last day of the month
5159 of death and shall terminate, or be adjusted, if applicable, as
5160 of that date in accordance with the optional form of benefit
5161 selected at the time of retirement. The department of Management
5162 Services may adopt rules necessary to administer this paragraph.
5163 (3) DEATH BENEFITS.—Under the Florida Retirement System
5164 Investment Plan Public Employee Optional Retirement Program:
5165 (a) Survivor benefits are shall be payable in accordance
5166 with the following terms and conditions:
5167 1. To the extent vested, benefits are shall be payable only
5168 to a member’s participant’s beneficiary or beneficiaries as
5169 designated by the member participant as provided in s.
5170 121.4501(20).
5171 2. Benefits shall be paid by the third-party administrator
5172 or designated approved providers in accordance with the law, the
5173 contracts, and any applicable state board rule or policy.
5174 3. To receive benefits under this subsection, the member
5175 participant must be deceased.
5176 (b) In the event of a member’s participant’s death, all
5177 vested accumulations as described in s. 121.4501(6), less
5178 withholding taxes remitted to the Internal Revenue Service,
5179 shall be distributed, as provided in paragraph (c) or as
5180 described in s. 121.4501(20), as if the member participant
5181 retired on the date of death. No other death benefits are shall
5182 be available for survivors of members participants under the
5183 Public Employee Optional Retirement Program, except for such
5184 benefits, or coverage for such benefits, as are otherwise
5185 provided by law or are separately provided afforded by the
5186 employer, at the employer’s discretion.
5187 (c) Upon receipt by the third-party administrator of a
5188 properly executed application for distribution of benefits, the
5189 total accumulated benefit is shall be payable by the third-party
5190 administrator to the member’s participant’s surviving
5191 beneficiary or beneficiaries, as:
5192 1. A lump-sum distribution payable to the beneficiary or
5193 beneficiaries, or to the deceased member’s participant’s estate;
5194 2. An eligible rollover distribution, if permitted, on
5195 behalf of the surviving spouse of a deceased member participant,
5196 whereby all accrued benefits, plus interest and investment
5197 earnings, are paid from the deceased member’s participant’s
5198 account directly to the custodian of an eligible retirement
5199 plan, as described in s. 402(c)(8)(B) of the Internal Revenue
5200 Code, on behalf of the surviving spouse; or
5201 3. A partial lump-sum payment whereby a portion of the
5202 accrued benefit is paid to the deceased member’s participant’s
5203 surviving spouse or other designated beneficiaries, less
5204 withholding taxes remitted to the Internal Revenue Service, and
5205 the remaining amount is transferred directly to the custodian of
5206 an eligible retirement plan, if permitted, as described in s.
5207 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
5208 surviving spouse. The proportions must be specified by the
5209 member participant or the surviving beneficiary.
5210
5211 This paragraph does not abrogate other applicable provisions of
5212 state or federal law providing for payment of death benefits.
5213 (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
5214 any person under the Florida Retirement System Investment Plan
5215 Public Employee Optional Retirement Program, and any
5216 contributions accumulated under the plan such program, are not
5217 subject to assignment, execution, attachment, or any legal
5218 process, except for qualified domestic relations orders by a
5219 court of competent jurisdiction, income deduction orders as
5220 provided in s. 61.1301, and federal income tax levies.
5221 Section 31. Section 121.5911, Florida Statutes, is amended
5222 to read:
5223 121.5911 Disability retirement program; qualified status;
5224 rulemaking authority.—It is the intent of the Legislature that
5225 the disability retirement program for members participants of
5226 the Florida Retirement System Investment Plan Public Employee
5227 Optional Retirement Program as created in this act must meet all
5228 applicable requirements of federal law for a qualified plan. The
5229 department of Management Services shall seek a private letter
5230 ruling from the Internal Revenue Service on the disability
5231 retirement program for participants of the Public Employee
5232 Optional Retirement Program. Consistent with the private letter
5233 ruling, the department of Management Services shall adopt any
5234 necessary rules necessary required to maintain the qualified
5235 status of the disability retirement program and the Florida
5236 Retirement System Pension defined benefit Plan.
5237 Section 32. Section 121.70, Florida Statutes, is amended to
5238 read:
5239 121.70 Legislative purpose and intent.—
5240 (1) This part provides for a uniform system for funding
5241 benefits provided under the Florida Retirement System Pension
5242 Plan defined benefit program established under part I of this
5243 chapter (referred to in this part as the pension plan defined
5244 benefit program) and under the Florida Retirement System
5245 Investment Plan Public Employee Optional Retirement Program
5246 established under part II of this chapter (referred to in this
5247 part as the investment plan optional retirement program). The
5248 Legislature recognizes and declares that the Florida Retirement
5249 System is a single retirement system, consisting of two
5250 retirement plans and other nonintegrated programs. Employees and
5251 employers participating in the Florida Retirement System
5252 collectively shall be responsible for making contributions to
5253 support the benefits provided afforded under both plans. The
5254 employees and As provided in this part, employers participating
5255 in the Florida Retirement System shall make contributions based
5256 upon uniform contribution rates determined as a percentage of
5257 the employee’s gross monthly compensation total payroll for the
5258 employee’s each class or subclass of Florida Retirement System
5259 membership, irrespective of the which retirement plan in which
5260 the individual employee is enrolled employees may elect. This
5261 shall be known as a uniform or blended contribution rate system.
5262 (2) In establishing a uniform contribution rate system, it
5263 is the intent of the Legislature to:
5264 (a) Provide greater stability and certainty in financial
5265 planning and budgeting for Florida Retirement System employers
5266 by eliminating the fiscal instability that would be caused by
5267 dual rates coupled with employee-selected plan participation;
5268 (b) Provide greater fiscal equity and uniformity for system
5269 employers by effectively distributing the financial burden and
5270 benefit of short-term system deficits and surpluses,
5271 respectively, in proportion to total system payroll; and
5272 (c) Allow employees to make their retirement plan selection
5273 decisions free of circumstances that may cause employers to
5274 favor one plan choice over another.
5275 Section 33. Section 121.71, Florida Statutes, is amended to
5276 read:
5277 121.71 Uniform rates; process; calculations; levy.—
5278 (1) In conducting the system actuarial study required under
5279 s. 121.031, the actuary shall follow all requirements specified
5280 thereunder to determine, by Florida Retirement System employee
5281 membership class, the dollar contribution amounts necessary for
5282 the next forthcoming fiscal year for the pension plan defined
5283 benefit program. In addition, the actuary shall determine, by
5284 Florida Retirement System membership class, based on an estimate
5285 for the next forthcoming fiscal year of the gross compensation
5286 of employees participating in the investment plan optional
5287 retirement program, the dollar contribution amounts necessary to
5288 make the allocations required under ss. 121.72 and 121.73. For
5289 each employee membership class and subclass, the actuarial study
5290 must shall establish a uniform rate necessary to fund the
5291 benefit obligations under both Florida Retirement System
5292 retirement plans by dividing the sum of total dollars required
5293 by the estimated gross compensation of members in both plans.
5294 (2) Based on the uniform rates set forth in subsections
5295 subsection (3), (4), and (5), employees and employers shall make
5296 monthly contributions to the Division of Retirement as required
5297 in s. 121.061(1), which shall initially deposit the funds into
5298 the Florida Retirement System Contributions Clearing Trust Fund.
5299 A change in a contribution rate is effective the first day of
5300 the month for which a full month’s employer and employee
5301 contribution may be made on or after the beginning date of the
5302 change. Beginning July 1, 2011, each employee shall contribute
5303 the contributions required in subsection (3). The employer shall
5304 deduct the contribution from the employee’s monthly salary, and
5305 the contribution shall be submitted to the division. These
5306 contributions shall be reported as employer-paid employee
5307 contributions, and credited to the account of the employee. The
5308 contributions shall be deducted from the employee’s salary
5309 before the computation of applicable federal taxes and treated
5310 as employer contributions under 26 U.S.C. s. 414(h)(2). The
5311 employer specifies that the contributions, although designated
5312 as employee contributions, are being paid by the employer in
5313 lieu of contributions by the employee. The employee does not
5314 have the option of choosing to receive the contributed amounts
5315 directly instead of having them paid by the employer to the
5316 plan. Such contributions are mandatory and each employee is
5317 considered to have consented to payroll deductions. Payment of
5318 an employee’s salary or wages, less the contribution, is a full
5319 and complete discharge and satisfaction of all claims and
5320 demands for the service rendered by employees during the period
5321 covered by the payment, except their claims to the benefits to
5322 which they may be entitled under this chapter.
5323 (3) Required employee retirement contribution rates for
5324 each membership class and subclass of the Florida Retirement
5325 System for both retirement plans are as follows:
5326
5327 Membership Class Percentage of Gross Compensation,Effective July 1, 2011
5328 Regular Class 3.00%
5329 Special Risk Class 3.00%
5330 Special Risk Administrative Support Class 3.00%
5331 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 3.00%
5332 Elected Officers’ Class— Justices, Judges 3.00%
5333 Elected Officers’ Class— County Elected Officers 3.00%
5334 Senior Management Service Class 3.00%
5335 DROP 0.00%
5336 (4)(3) Required employer retirement contribution rates for
5337 each membership class and subclass of the Florida Retirement
5338 System for both retirement plans are as follows:
5339
5340 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009Percentage ofGrossCompensation,EffectiveJuly 1, 2012 2010
5341
5342 Regular Class 3.28% 8.69% 3.28% 9.63%
5343 Special Risk Class 10.21% 19.76% 10.21% 22.11%
5344 Special Risk Administrative Support Class 4.07% 11.39% 4.07% 12.10%
5345 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 7.02% 13.32% 7.02% 15.20%
5346 Elected Officers’ Class— Justices, Judges 9.78% 18.40% 9.78% 20.65%
5347 Elected Officers’ Class— County Elected Officers 9.27% 15.37% 9.27% 17.50%
5348 Senior Management Service Class 4.81% 11.96% 4.81% 13.43%
5349 DROP 3.31% 9.80% 3.31% 11.14%
5350 (5) In order to address unfunded actuarial liabilities of
5351 the system, the required employer retirement contribution rates
5352 for each membership class and subclass of the Florida Retirement
5353 System for both retirement plans are as follows:
5354 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011Percentage ofGrossCompensation,EffectiveJuly 1, 2012
5355 Regular Class 0.49% 2.16%
5356 Special Risk Class 2.75% 8.21%
5357 Special Risk Administrative Support Class 0.83% 21.40%
5358 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.88% 21.76%
5359 Elected Officers’ Class— Justices, Judges 0.77% 12.86%
5360 Elected Officers’ Class— County Elected Officers 0.73% 22.05%
5361 Senior Management Service Class 0.32% 10.51%
5362 DROP 0.00% 6.36%
5363 (6) If a member is reported under an incorrect membership
5364 class and the amount of contributions reported and remitted are
5365 less than the amount required, the employer shall owe the
5366 difference, plus the delinquent fee, of 1 percent for each
5367 calendar month or part thereof that the contributions should
5368 have been paid. The delinquent assessment may not be waived. If
5369 the contributions reported and remitted are more than the amount
5370 required, the employer shall receive a credit to be applied
5371 against future contributions owed.
5372 (7)(4) The state actuary shall recognize and use an
5373 appropriate level of available excess assets of the Florida
5374 Retirement System Trust Fund to offset the difference between
5375 the normal costs of the Florida Retirement System and the
5376 statutorily prescribed contribution rates.
5377 Section 34. Section 121.72, Florida Statutes, is amended to
5378 read:
5379 121.72 Allocations to investment plan member optional
5380 retirement program participant accounts; percentage amounts.—
5381 (1) The allocations established in subsection (4) shall
5382 fund retirement benefits under the investment plan optional
5383 retirement program and shall be transferred monthly by the
5384 Division of Retirement from the Florida Retirement System
5385 Contributions Clearing Trust Fund to the third-party
5386 administrator for deposit in each participating employee’s
5387 individual account based on the membership class of the
5388 participant.
5389 (2) The allocations are stated as a percentage of each
5390 investment plan member’s optional retirement program
5391 participant’s gross compensation for the calendar month. A
5392 change in a contribution percentage is effective the first day
5393 of the month for which retirement contributions a full month’s
5394 employer contribution may be made on or after the beginning date
5395 of the change. Contribution percentages may be modified by
5396 general law.
5397 (3) Employer and employee participant contributions to
5398 member participant accounts shall be accounted for separately.
5399 Participant contributions may be made only if expressly
5400 authorized by law. Interest and investment earnings on
5401 contributions shall accrue on a tax-deferred basis until
5402 proceeds are distributed.
5403 (4) Effective July 1, 2002, allocations from the Florida
5404 Retirement System Contributions Clearing Trust Fund to
5405 investment plan member optional retirement program participant
5406 accounts are shall be as follows:
5407 Membership Class Percentage of Gross Compensation
5408 Regular Class 9.00%
5409 Special Risk Class 20.00%
5410 Special Risk Administrative Support Class 11.35%
5411 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.40%
5412 Elected Officers’ Class— Justices, Judges 18.90%
5413 Elected Officers’ Class— County Elected Officers 16.20%
5414 Senior Management Service Class 10.95%
5415 Section 35. Section 121.73, Florida Statutes, is amended to
5416 read:
5417 121.73 Allocations for member optional retirement program
5418 participant disability coverage; percentage amounts.—
5419 (1) The allocations established in subsection (3) shall be
5420 used to provide disability coverage for members participants in
5421 the investment plan optional retirement program and shall be
5422 transferred monthly by the Division of Retirement from the
5423 Florida Retirement System Contributions Clearing Trust Fund to
5424 the disability account of the Florida Retirement System Trust
5425 Fund.
5426 (2) The allocations are stated as a percentage of each
5427 investment plan member’s optional retirement program
5428 participant’s gross compensation for the calendar month. A
5429 change in a contribution percentage is effective the first day
5430 of the month for which retirement contributions a full month’s
5431 employer contribution may be made on or after the beginning date
5432 of the change. Contribution percentages may be modified by
5433 general law.
5434 (3) Effective July 1, 2002, allocations from the Florida
5435 Retirement System Contributions FRS Contribution Clearing Trust
5436 Fund to provide disability coverage for members participants in
5437 the investment plan optional retirement program, and to offset
5438 the costs of administering said coverage, are shall be as
5439 follows:
5440 Membership Class Percentage of Gross Compensation
5441 Regular Class 0.25%
5442 Special Risk Class 1.33%
5443 Special Risk Administrative Support Class 0.45%
5444 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%
5445 Elected Officers’ Class— Justices, Judges 0.73%
5446 Elected Officers’ Class— County Elected Officers 0.41%
5447 Senior Management Service Class 0.26%
5448 Section 36. Section 121.74, Florida Statutes, is amended to
5449 read:
5450 121.74 Administrative and educational expenses.—In addition
5451 to contributions required under ss. s. 121.71 and 121.73,
5452 effective July 1, 2010, through June 30, 2014, employers
5453 participating in the Florida Retirement System shall contribute
5454 an amount equal to 0.03 percent of the payroll reported for each
5455 class or subclass of Florida Retirement System membership.;
5456 Effective July 1, 2014, the contribution rate shall be 0.04
5457 percent of the payroll reported for each class or subclass of
5458 membership. The amount contributed shall be transferred by the
5459 Division of Retirement from the Florida Retirement System
5460 Contributions Clearing Trust Fund to the State Board of
5461 Administration’s Administrative Trust Fund to offset the costs
5462 of administering the investment plan optional retirement program
5463 and the costs of providing educational services to members of
5464 the Florida Retirement System participants in the defined
5465 benefit program and the optional retirement program. Approval of
5466 the trustees is required before the expenditure of these funds.
5467 Payments for third-party administrative or educational expenses
5468 shall be made only pursuant to the terms of the approved
5469 contracts for such services.
5470 Section 37. Section 121.75, Florida Statutes, is amended to
5471 read:
5472 121.75 Allocation for pension plan defined benefit
5473 program.—After making the transfers required pursuant to ss.
5474 121.71, 121.72, 121.73, and 121.74, the monthly balance of funds
5475 in the Florida Retirement System Contributions Clearing Trust
5476 Fund shall be transferred to the Florida Retirement System Trust
5477 Fund to pay the costs of providing pension plan defined benefit
5478 program benefits and plan administrative costs under the pension
5479 plan defined benefit program.
5480 Section 38. Section 121.77, Florida Statutes, is amended to
5481 read:
5482 121.77 Deductions from member participant accounts.—The
5483 State Board of Administration may authorize the third-party
5484 administrator to deduct reasonable fees and apply appropriate
5485 charges to investment plan member optional retirement program
5486 participant accounts. In no event may shall administrative and
5487 educational expenses exceed the portion of employer
5488 contributions earmarked for such expenses under this part,
5489 except for reasonable administrative charges assessed against
5490 member participant accounts of persons for whom no employer
5491 contributions are made during the calendar quarter. Investment
5492 management fees shall be deducted from member participant
5493 accounts, pursuant to the terms of the contract between the
5494 provider and the board.
5495 Section 39. Section 121.78, Florida Statutes, is amended to
5496 read:
5497 121.78 Payment and distribution of contributions.—
5498 (1) Contributions made pursuant to this part shall be paid
5499 by the employer, including the employee contribution, to the
5500 Division of Retirement by electronic funds transfer no later
5501 than the 5th working day of the month immediately following the
5502 month during which the payroll period ended. Accompanying
5503 payroll data must be transmitted to the division concurrent with
5504 the contributions.
5505 (2) The division, the State Board of Administration, and
5506 the third-party administrator, as applicable, shall ensure that
5507 the contributions are distributed to the appropriate trust funds
5508 or participant accounts in a timely manner.
5509 (3)(a) Employee and employer contributions and accompanying
5510 payroll data received after the 5th working day of the month are
5511 considered late. The employer shall be assessed by the Division
5512 of Retirement a penalty of 1 percent of the contributions due
5513 for each calendar month or part thereof that the contributions
5514 or accompanying payroll data are late. Proceeds from the 1
5515 percent 1-percent assessment against contributions made on
5516 behalf of members participants of the pension plan must defined
5517 benefit program shall be deposited in the Florida Retirement
5518 System Trust Fund, and proceeds from the 1-percent assessment
5519 against contributions made on behalf of members participants of
5520 the investment plan optional retirement program shall be
5521 transferred to the third-party administrator for deposit into
5522 member participant accounts, as provided in paragraph (c) (b).
5523 (b) Retirement contributions paid for a prior period shall
5524 be charged a delinquent fee of 1 percent for each calendar month
5525 or part thereof that the contributions should have been paid.
5526 This includes prior period contributions due to incorrect wages
5527 and contributions from an earlier report or wages and
5528 contributions that should have been reported but were not. The
5529 delinquent assessments may not be waived.
5530 (c)(b) If employee contributions or contributions made by
5531 an employer on behalf of members participants of the investment
5532 plan optional retirement program or accompanying payroll data
5533 are not received within the calendar month they are due,
5534 including, but not limited to, contribution adjustments as a
5535 result of employer errors or corrections, and if that
5536 delinquency results in market losses to members participants,
5537 the employer shall reimburse each member’s participant’s account
5538 for market losses resulting from the late contributions. If a
5539 member participant has terminated employment and taken a
5540 distribution, the member participant is responsible for
5541 returning any excess contributions erroneously provided by
5542 employers, adjusted for any investment gain or loss incurred
5543 during the period such excess contributions were in the member’s
5544 participant’s account. The state board or its designated agent
5545 shall communicate to terminated members participants any
5546 obligation to repay such excess contribution amounts. However,
5547 the state board, its designated agents, the Florida Retirement
5548 System Investment Plan Public Employee Optional Retirement
5549 Program Trust Fund, the department, or the Florida Retirement
5550 System Trust Fund may not incur any loss or gain as a result of
5551 an employer’s correction of such excess contributions. The
5552 third-party administrator, hired by the state board pursuant to
5553 s. 121.4501(8), shall calculate the market losses for each
5554 affected member participant. If contributions made on behalf of
5555 members participants of the investment plan optional retirement
5556 program or accompanying payroll data are not received within the
5557 calendar month due, the employer shall also pay the cost of the
5558 third-party administrator’s calculation and reconciliation
5559 adjustments resulting from the late contributions. The third
5560 party administrator shall notify the employer of the results of
5561 the calculations and the total amount due from the employer for
5562 such losses and the costs of calculation and reconciliation. The
5563 employer shall remit to the Division of Retirement the amount
5564 due within 30 working days after the date of the penalty notice
5565 sent by the division. The division shall transfer that amount to
5566 the third-party administrator, which shall deposit proceeds from
5567 the 1-percent assessment and from individual market losses into
5568 member participant accounts, as appropriate. The state board may
5569 adopt rules to administer the provisions regarding late
5570 contributions, late submission of payroll data, the process for
5571 reimbursing member participant accounts for resultant market
5572 losses, and the penalties charged to the employers.
5573 (d) If employee contributions reported by an employer on
5574 behalf of members are reduced as a result of employer errors or
5575 corrections, and the member has terminated employment and taken
5576 a refund or distribution, the employer shall be billed and is
5577 responsible for recovering from the member any excess
5578 contributions erroneously provided by the employer.
5579 (e)(c) Delinquency fees specified in paragraph (a) may be
5580 waived by the division of Retirement, with regard to pension
5581 plan defined benefit program contributions, and by the state
5582 board, with regard to investment plan optional retirement
5583 program contributions, only if, in the opinion of the division
5584 or the board, as appropriate, exceptional circumstances beyond
5585 the employer’s control prevented remittance by the prescribed
5586 due date notwithstanding the employer’s good faith efforts to
5587 effect delivery. Such a waiver of delinquency may be granted an
5588 employer only once each plan state fiscal year.
5589 (f) If the employer submits excess employer or employee
5590 contributions, the employer shall receive a credit to be applied
5591 against future contributions owed. The employer is responsible
5592 for reimbursing the member for any excess contributions
5593 submitted if any return of such an erroneous excess pretax
5594 contribution by the program is made within 1 year after making
5595 erroneous contributions or such other period allowed under
5596 applicable Internal Revenue guidance.
5597 (g)(d) If contributions made by an employer on behalf of
5598 members participants in the investment plan optional retirement
5599 program are delayed in posting to member participant accounts
5600 due to acts of God beyond the control of the Division of
5601 Retirement, the state board, or the third-party administrator,
5602 as applicable, market losses resulting from the late
5603 contributions are not payable to the members participants.
5604 Section 40. Paragraph (a) of subsection (4) and paragraph
5605 (b) of subsection (5) of section 1012.875, Florida Statutes, are
5606 amended, and subsection (7) is added to that section, to read:
5607 1012.875 State Community College System Optional Retirement
5608 Program.—Each community college may implement an optional
5609 retirement program, if such program is established therefor
5610 pursuant to s. 1001.64(20), under which annuity or other
5611 contracts providing retirement and death benefits may be
5612 purchased by, and on behalf of, eligible employees who
5613 participate in the program, in accordance with s. 403(b) of the
5614 Internal Revenue Code. Except as otherwise provided herein, this
5615 retirement program, which shall be known as the State Community
5616 College System Optional Retirement Program, may be implemented
5617 and administered only by an individual community college or by a
5618 consortium of community colleges.
5619 (4)(a)1. Through June 30, 2011, each college must
5620 contribute on behalf of each program member participant an
5621 amount equal to 10.43 percent of the employee’s participant’s
5622 gross monthly compensation.
5623 2. Effective July 1, 2011, each member shall contribute an
5624 amount equal to the employee contribution required under s.
5625 121.71(3). The employer shall contribute on behalf of each
5626 program member an amount equal to the difference between 10.43
5627 percent of the employee’s gross monthly compensation and the
5628 employee’s required contribution based on the employee’s gross
5629 monthly compensation.
5630 3. The college shall deduct an amount approved by the
5631 district board of trustees of the college to provide for the
5632 administration of the optional retirement program. Payment of
5633 this contribution must be made either directly by the college or
5634 through the program administrator to the designated company
5635 contracting for payment of benefits to the program member
5636 participant.
5637 (5)
5638 (b) Benefits are payable under the optional retirement
5639 program to program participants or their beneficiaries, and the
5640 benefits must be paid only by the designated company in
5641 accordance with the terms of the contracts applicable to the
5642 program participant. Benefits shall accrue in individual
5643 accounts that are participant-directed, portable, and funded by
5644 employer and employee contributions and the earnings thereon.
5645 Benefits funded by employer and employee contributions are
5646 payable in accordance with the following terms and conditions:
5647 1. Benefits shall be payable only to a participant, to his
5648 or her beneficiaries, or to his or her estate, as designated by
5649 the participant.
5650 2. Benefits shall be paid by the provider company or
5651 companies in accordance with the law, the provisions of the
5652 contract, and any applicable employer rule or policy.
5653 3. In the event of a participant’s death, moneys
5654 accumulated by, or on behalf of, the participant, less
5655 withholding taxes remitted to the Internal Revenue Service, if
5656 any, shall be distributed to the participant’s designated
5657 beneficiary or beneficiaries, or to the participant’s estate, as
5658 if the participant retired on the date of death as provided in
5659 paragraph (d). No other death benefits are shall be available
5660 for survivors of participants under the optional retirement
5661 program except for such benefits, or coverage for such benefits,
5662 as are separately afforded by the employer at the employer’s
5663 discretion.
5664 (7) Benefits, including employee contributions, are not
5665 payable for employee hardships, unforeseeable emergencies,
5666 loans, medical expenses, educational expenses, purchase of a
5667 principal residence, payments necessary to prevent eviction or
5668 foreclosure on an employee’s principal residence, or any other
5669 reason before termination from all employment relationships with
5670 participating employers for 3 calendar months.
5671 Section 41. (1) Effective upon this act becoming a law, the
5672 State Board of Administration and the Department of Management
5673 Services shall request, as soon as practicable, a determination
5674 letter and private letter ruling from the United States Internal
5675 Revenue Service. If the United States Internal Revenue Service
5676 refuses to act upon a request for a private letter ruling, then
5677 a legal opinion from a qualified tax attorney or firm may be
5678 substituted for such private letter ruling.
5679 (2) If the board or the department receives notification
5680 from the United States Internal Revenue Service that this act or
5681 any portion of this act will cause the Florida Retirement
5682 System, or a portion thereof, to be disqualified for tax
5683 purposes under the Internal Revenue Code, then the portion that
5684 will cause the disqualification does not apply. Upon receipt of
5685 such notice, the state board and the department shall notify the
5686 presiding officers of the Legislature.
5687 Section 42. The Legislature finds that a proper and
5688 legitimate state purpose is served when employees and retirees
5689 of the state and its political subdivisions, and the dependents,
5690 survivors, and beneficiaries of such employees and retirees, are
5691 extended the basic protections afforded by governmental
5692 retirement systems. These persons must be provided benefits that
5693 are fair and adequate and that are managed, administered, and
5694 funded in an actuarially sound manner, as required by s. 14,
5695 Article X of the State Constitution and part VII of chapter 112,
5696 Florida Statutes. Therefore, the Legislature determines and
5697 declares that this act fulfills an important state interest.
5698 Section 43. For the 2011-2012 fiscal year, the sums of
5699 $207,070 of recurring funds and $31,184 of nonrecurring funds
5700 from the Florida Retirement System Operating Trust Fund are
5701 appropriated to, and four full-time equivalent positions are
5702 authorized for, the Division of Retirement within the Department
5703 of Management Services for the purpose of implementing this act.
5704 Section 44. Except as otherwise expressly provided in this
5705 act and except for this section, which shall take effect upon
5706 this act becoming a law, this act shall take effect July 1,
5707 2011.