Florida Senate - 2011 (PROPOSED COMMITTEE BILL) SPB 7094
FOR CONSIDERATION By the Committee on Budget
576-03070B-11 20117094__
1 A bill to be entitled
2 An act relating to retirement; amending ss. 110.123,
3 112.0801, 112.363, and 112.65, F.S.; conforming
4 provisions to changes made by the act; amending s.
5 121.011, F.S.; requiring employee and employer
6 contributions to the retirement system by a certain
7 date; amending s. 121.021, F.S.; redefining the terms
8 “system,” “prior service,” “compensation,” “average
9 final compensation,” “normal retirement date,”
10 “termination,” “benefit,” and “payee”; defining the
11 term “division”; amending s. 121.051, F.S.; conforming
12 provisions to changes made by the act; amending s.
13 121.0515, F.S.; providing that special risk employee
14 contributions be used, if applicable, when purchasing
15 credit for past service; conforming a cross-reference;
16 amending s. 121.052, F.S., relating to the membership
17 class of elected officers; conforming provisions to
18 changes made by the act; providing for a refund of
19 contributions under certain circumstances for an
20 officer who leaves office; prohibiting such refund if
21 an approved qualified domestic relations order is
22 filed against the member’s retirement account;
23 providing that a member who obtains a refund of
24 contributions waives certain rights under the Florida
25 Retirement System; conforming a cross-reference;
26 amending s. 121.053, F.S.; conforming provisions to
27 changes made by the act; amending s. 121.055, F.S.,
28 relating to the Senior Management Service Class;
29 conforming provisions to changes made by the act;
30 providing for refunds of employee refunds; prohibiting
31 a refund of retirement contributions if an approved
32 qualified domestic relations order is filed against
33 the member’s retirement account; providing that a
34 member who obtains a refund of contributions waives
35 certain rights under the Florida Retirement System;
36 deleting a prohibition against a retiree’s renewing
37 membership in the Senior Management Service Optional
38 Annuity Program; requiring employee and employer
39 contributions for members in the Senior Management
40 Service Optional Annuity Program after a certain date;
41 limiting the payment of benefits before a member’s
42 termination of employment; amending s. 121.071, F.S.;
43 requiring employee and employer contributions to the
44 retirement system beginning on a certain date;
45 limiting the payment of benefits before a member’s
46 termination of employment; requiring repayment plus
47 interest of an invalid refund; amending s. 121.081,
48 F.S.; providing requirements for contributions for
49 prior service performed on or after a certain date;
50 amending s. 121.091, F.S.; conforming a cross
51 reference; providing for refunds of employee refunds;
52 limiting the payment of benefits before a member’s
53 termination of employment; prohibiting a refund of
54 retirement contributions if an approved qualified
55 domestic relations order is filed against the member’s
56 retirement account; providing that a member who
57 obtains a refund of contributions waives certain
58 rights under the Florida Retirement System;
59 terminating participation in the Deferred Retirement
60 Option Program after a certain date; conforming
61 provisions to changes made by the act; amending s.
62 121.1001, F.S.; conforming provisions to changes made
63 by the act; amending s. 121.101, F.S.;. revising the
64 cost-of-living adjustment depending on the date of
65 retirement; amending s. 121.121, F.S., relating to the
66 purchase of creditable service following an authorized
67 leave of absence; requiring that service credit be
68 purchased at the employee and employer contribution
69 rates in effect during the leave of absence; reducing
70 the interest rate on benefits payable under the
71 Deferred Retirement Option Program for employees hired
72 after a certain date; amending s. 121.122, F.S.;
73 providing for renewed membership in the retirement
74 system for retirees who are reemployed after a certain
75 date; specifying requirements and limitations;
76 amending s. 121.125, F.S.; conforming provisions to
77 changes made by the act; assessing a penalty against
78 employers for contributions not paid after a member
79 becomes eligible for workers’ compensation; amending
80 s. 121.35, F.S., relating to the optional retirement
81 program for the State University System; conforming
82 provisions to changes made by the act; requiring
83 employee and employer contributions for members
84 participating in the optional retirement program after
85 a certain date; deleting certain requirements
86 governing employer contributions to conform to changes
87 made by the act; prohibiting certain benefits before
88 termination from employment; conforming cross
89 references; amending s. 121.355, F.S.; conforming
90 provisions to changes made by the act; amending s.
91 121.4501, F.S.; changing the name of the Public
92 Employee Optional Retirement Program to the Florida
93 Retirement System Investment Plan; limiting the option
94 of enrolling in the State Retirement System’s defined
95 benefit program or defined contribution program to
96 public employees employed before a certain date;
97 requiring public employees employed on or after a
98 certain date to enroll in the investment plan;
99 providing exceptions; requiring that plan members make
100 contributions to the plan based on the employee’s
101 membership class; revising definitions; revising the
102 benefit commencement age for members of the special
103 risk class; providing for contribution adjustments as
104 a result of errors or corrections; deleting obsolete
105 provisions relating to the 2002 optional transfer of
106 public employees from the pension plan to the
107 investment plan; providing for past employees who
108 reenter the system; requiring an employer to receive a
109 credit for excess contributions and to reimburse an
110 employee for excess contributions, subject to certain
111 limitations; providing for a retiree to retain his or
112 her prior plan choice following a return to
113 employment; limiting certain refunds of contributions
114 which exceed the amount that would have accrued had
115 the member remained in the pension plan; providing
116 certain requirements and limitations with respect to
117 contributions; clarifying that employee and employer
118 contributions are earmarked for specified purposes;
119 providing duties of the third-party administrator;
120 providing that a member is vested immediately with
121 respect to employee contributions paid by the
122 employee; providing for the forfeiture of nonvested
123 employer contributions and service credit based on
124 years of service; amending s. 121.4502, F.S.;
125 conforming provisions to changes made by the act;
126 amending s. 121.4503, F.S.; providing for the deposit
127 of employee contributions into the Florida Retirement
128 System Contributions Clearing Trust Fund; amending s.
129 121.571, F.S.; conforming provisions to changes made
130 by the act; providing requirements for submitting
131 employee contributions; amending s. 121.591, F.S.;
132 prohibiting the payment of certain benefits before
133 termination of employment; providing for the
134 forfeiture of nonvested accumulations upon payment of
135 certain vested benefits; providing that the
136 distribution payment method selected by the member or
137 beneficiary is irrevocable at the time of
138 distribution; prohibiting a distribution of employee
139 contributions if a qualified domestic relations order
140 is filed against the member’s account; providing for
141 the distribution of an employee’s contributions if the
142 employee dies before being vested; conforming
143 provisions to changes made by the act; amending ss.
144 121.5911 and 121.70, F.S.; conforming provisions to
145 changes made by the act; amending s. 121.71, F.S.;
146 providing for employee contributions to be deducted
147 from the employee’s monthly salary, beginning on a
148 specified date, and treated as employer contributions
149 under certain provisions of federal law; clarifying
150 that an employee may not receive such contributions
151 directly; specifying the required contribution rate
152 for all members of the Florida Retirement System;
153 specifying the required employer retirement
154 contribution rates for each membership class and
155 subclass of the system in order to address unfunded
156 actuarial liabilities of the system; requiring an
157 assessment to be imposed if the employee contributions
158 remitted are less than the amount required; providing
159 for the employer to receive a credit for excess
160 contributions remitted; conforming cross-references;
161 amending s. 121.72, F.S.; revising certain
162 requirements governing allocations to optional
163 retirement program member accounts; conforming cross
164 references; amending s. 121.73, F.S., relating to
165 disability coverage for members of the optional
166 retirement program; conforming provisions to changes
167 made by the act; amending ss. 121.74, 121.75, and
168 121.77, F.S.; conforming provisions to changes made by
169 the act; conforming cross-references; amending s.
170 121.78, F.S.; revising certain requirements for
171 administering the payment and distribution of
172 contributions; requiring that certain fees be imposed
173 for delinquent payment; providing that an employer is
174 responsible for recovering any refund provided to an
175 employee in error; revising the terms of an authorized
176 waiver of delinquency; requiring an employer to
177 receive a credit for excess contributions and to
178 reimburse an employee for excess contributions,
179 subject to certain limitations; amending s. 175.121,
180 F.S.; specifying other sources available to pay the
181 expenses of the Department of Revenue for
182 administering firefighters’ pension plans; amending s.
183 175.341, F.S.; conforming provisions to changes made
184 by the act; amending s. 185.10, F.S.; specifying other
185 sources available to pay the expenses of the
186 department for administering police officers’ pension
187 plans; amending s. 185.23, F.S.; conforming provisions
188 to changes made by the act; amending s. 250.22, F.S.;
189 providing that retirement pay for members of the
190 Florida Nation Guard is determined on the date of
191 retirement and may not be recomputed to reflect an
192 increase in basic pay; directing the Division of
193 Retirement to annually adjust retirement pay after a
194 certain date; amending s. 1012.875, F.S.; requiring
195 employee and employer contributions for members of the
196 State Community College System Optional Retirement
197 Program on a certain date; conforming cross
198 references; providing that the act fulfills an
199 important state interest; providing a directive to the
200 Division of Statutory Revision; requiring the State
201 Board of Administration and the Department of
202 Management Services to request a private letter ruling
203 from the United States Internal Revenue Service
204 regarding the act; providing employers the option of
205 contributing to the retirement account of a reemployed
206 retiree during a specified period; providing an
207 effective date.
208
209 Be It Enacted by the Legislature of the State of Florida:
210
211 Section 1. Paragraph (g) of subsection (2) of section
212 110.123, Florida Statutes, is amended to read:
213 110.123 State group insurance program.—
214 (2) DEFINITIONS.—As used in this section, the term:
215 (g) “Retired state officer or employee” or “retiree” means
216 a any state, or state university, officer or employee who
217 retires under a state retirement system or a state optional
218 annuity or retirement program or is placed on disability
219 retirement, and who was insured under the state group insurance
220 program at the time of retirement, and who begins receiving
221 retirement benefits immediately after retirement from state or
222 state university office or employment. The term also includes In
223 addition to these requirements, any state officer or state
224 employee who retires under the investment plan Public Employee
225 Optional Retirement Program established under part II of chapter
226 121 shall be considered a “retired state officer or employee” or
227 “retiree” as used in this section if he or she:
228 1. Meets the age and service requirements to qualify for
229 normal retirement as set forth in s. 121.021(29); or
230 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
231 the Internal Revenue Code and has 6 years of creditable service.
232 Section 2. Section 112.0801, Florida Statutes, is amended
233 to read:
234 112.0801 Group insurance; participation by retired
235 employees.—
236 (1) Any state agency, county, municipality, special
237 district, community college, or district school board that which
238 provides life, health, accident, hospitalization, or annuity
239 insurance, or all of any kinds of such insurance, for its
240 officers and employees and their dependents upon a group
241 insurance plan or self-insurance plan shall allow all former
242 personnel who have retired before prior to October 1, 1987, as
243 well as those who retire on or after such date, and their
244 eligible dependents, the option of continuing to participate in
245 the such group insurance plan or self-insurance plan. Retirees
246 and their eligible dependents shall be offered the same health
247 and hospitalization insurance coverage as is offered to active
248 employees at a premium cost of no more than the premium cost
249 applicable to active employees. For the retired employees and
250 their eligible dependents, the cost of any such continued
251 participation in any type of plan or any of the cost thereof may
252 be paid by the employer or by the retired employees. To
253 determine health and hospitalization plan costs, the employer
254 shall commingle the claims experience of the retiree group with
255 the claims experience of the active employees; and, for other
256 types of coverage, the employer may commingle the claims
257 experience of the retiree group with the claims experience of
258 active employees. Retirees covered under Medicare may be
259 experience-rated separately from the retirees not covered by
260 Medicare and from active employees if, provided that the total
261 premium does not exceed that of the active group and coverage is
262 basically the same as for the active group.
263 (2) For purposes of this section, the term “retiree” has
264 the same meaning as in s. 110.123(2) means any officer or
265 employee who retires under a state retirement system or a state
266 optional annuity or retirement program or is placed on
267 disability retirement and who begins receiving retirement
268 benefits immediately after retirement from employment. In
269 addition to these requirements, any officer or employee who
270 retires under the Public Employee Optional Retirement Program
271 established under part II of chapter 121 shall be considered a
272 “retired officer or employee” or “retiree” as used in this
273 section if he or she:
274 (a) Meets the age and service requirements to qualify for
275 normal retirement as set forth in s. 121.021(29); or
276 (b) Has attained the age specified by s. 72(t)(2)(A)(i) of
277 the Internal Revenue Code and has 6 years of creditable service.
278 Section 3. Paragraphs (b) and (c) of subsection (2) and
279 paragraph (e) of subsection (3) of section 112.363, Florida
280 Statutes, are amended to read:
281 112.363 Retiree health insurance subsidy.—
282 (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.—
283 (b) For purposes of this section, a person is deemed
284 retired from a state-administered retirement system when he or
285 she terminates employment with all employers participating in
286 the Florida Retirement System as described in s. 121.021(39)
287 and:
288 1. For a member participant of the investment plan Public
289 Employee Optional Retirement program established under part II
290 of chapter 121, the member participant meets the age or service
291 requirements to qualify for normal retirement as set forth in s.
292 121.021(29) and meets the definition of retiree in s.
293 121.4501(2).
294 2. For a member of the pension plan Florida Retirement
295 System defined benefit program, or any employee who maintains
296 creditable service under both the pension plan and the
297 investment plan defined benefit program and the Public Employee
298 Optional Retirement program, the member begins drawing
299 retirement benefits from the pension plan defined benefit
300 program of the Florida Retirement System.
301 (c)1. Effective July 1, 2001, any person retiring on or
302 after that such date as a member of the Florida Retirement
303 System, including a member any participant of the investment
304 plan defined contribution program administered pursuant to part
305 II of chapter 121, must have satisfied the vesting requirements
306 for his or her membership class under the pension plan Florida
307 Retirement System defined benefit program as administered under
308 part I of chapter 121. However,
309 2. Notwithstanding the provisions of subparagraph 1., a
310 person retiring due to disability must either qualify for a
311 regular or in-line-of-duty disability benefit as provided in s.
312 121.091(4) or qualify for a disability benefit under a
313 disability plan established under part II of chapter 121, as
314 appropriate.
315 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
316 (e)1. Beginning July 1, 2001, each eligible retiree of the
317 pension plan defined benefit program of the Florida Retirement
318 System, or, if the retiree is deceased, his or her beneficiary
319 who is receiving a monthly benefit from such retiree’s account
320 and who is a spouse, or a person who meets the definition of
321 joint annuitant in s. 121.021(28), shall receive a monthly
322 retiree health insurance subsidy payment equal to the number of
323 years of creditable service, as defined in s. 121.021(17),
324 completed at the time of retirement multiplied by $5; however,
325 an no eligible retiree or beneficiary may not receive a subsidy
326 payment of more than $150 or less than $30. If there are
327 multiple beneficiaries, the total payment may must not be
328 greater than the payment to which the retiree was entitled. The
329 health insurance subsidy amount payable to any person receiving
330 the retiree health insurance subsidy payment on July 1, 2001,
331 may shall not be reduced solely by operation of this
332 subparagraph.
333 2. Beginning July 1, 2002, each eligible member participant
334 of the investment plan under part II of chapter 121 Public
335 Employee Optional Retirement program of the Florida Retirement
336 System who has met the requirements of this section, or, if the
337 member participant is deceased, his or her spouse who is the
338 member’s participant’s designated beneficiary, shall receive a
339 monthly retiree health insurance subsidy payment equal to the
340 number of years of creditable service, as provided in this
341 subparagraph, completed at the time of retirement, multiplied by
342 $5; however, an no eligible retiree or beneficiary may not
343 receive a subsidy payment of more than $150 or less than $30.
344 For purposes of determining a member’s participant’s creditable
345 service used to calculate the health insurance subsidy, the
346 member’s a participant’s years of service credit or fraction
347 thereof must shall be based on the member’s participant’s work
348 year as defined in s. 121.021(54). Credit must shall be awarded
349 for a full work year if whenever health insurance subsidy
350 contributions have been made as required by law for each month
351 in the member’s participant’s work year. In addition, all years
352 of creditable service retained under the Florida Retirement
353 System pension plan must defined benefit program shall be
354 included as creditable service for purposes of this section.
355 Notwithstanding any other provision in this section to the
356 contrary, the spouse at the time of death is shall be the
357 member’s participant’s beneficiary unless such member
358 participant has designated a different beneficiary subsequent to
359 the member’s participant’s most recent marriage.
360 Section 4. Subsection (1) of section 112.65, Florida
361 Statutes, is amended to read:
362 112.65 Limitation of benefits.—
363 (1) ESTABLISHMENT OF PROGRAM.—The normal retirement benefit
364 or pension payable to a retiree who becomes a member of a any
365 retirement system or plan and who has not previously
366 participated in such plan, on or after January 1, 1980, may
367 shall not exceed 100 percent of his or her average final
368 compensation. However, nothing contained in this section does
369 not shall apply to supplemental retirement benefits or to
370 pension increases attributable to cost-of-living increases or
371 adjustments. For the purposes of this section, benefits accruing
372 in individual member participant accounts established under the
373 investment plan Public Employee Optional Retirement program
374 established in part II of chapter 121 are considered
375 supplemental benefits. As used in this section, the term
376 “average final compensation” means the average of the member’s
377 earnings over a period of time which the governmental entity
378 establishes has established by statute, charter, or ordinance.
379 Section 5. Paragraph (h) is added to subsection (3) of
380 section 121.011, Florida Statutes, to read:
381 121.011 Florida Retirement System.—
382 (3) PRESERVATION OF RIGHTS.—
383 (h) Effective July 1, 2011, the retirement system shall
384 require employee and employer contributions as provided in s.
385 121.071 and part III of this chapter.
386 Section 6. Subsection (3), paragraph (a) of subsection
387 (19), paragraphs (a) and (b) of subsection (22), subsections
388 (24), (29), and (39), paragraph (b) of subsection (45), and
389 subsections (55) and (59) of section 121.021, Florida Statutes,
390 are amended, and subsection (65) is added to that section, to
391 read:
392 121.021 Definitions.—The following words and phrases as
393 used in this chapter have the respective meanings set forth
394 unless a different meaning is plainly required by the context:
395 (3) “Florida Retirement System” or “system” means the
396 general retirement system established by this chapter, to be
397 known and cited as the “Florida Retirement System,” including,
398 but not limited to, the defined benefit retirement program
399 administered under the provisions of part I of this part,
400 referred to as the “Florida Retirement System Pension Plan” or
401 “pension plan,” chapter and the defined contribution retirement
402 program known as the Public Employee Optional Retirement Program
403 and administered under the provisions of part II of this
404 chapter, referred to as the “Florida Retirement System
405 Investment Plan” or “investment plan.”
406 (19) “Prior service” under this chapter means:
407 (a) Service for which the member had credit under one of
408 the existing systems and received a refund of his or her
409 contributions upon termination of employment. Prior service
410 shall also includes include that service between December 1,
411 1970, and the date the system becomes noncontributory for which
412 the member had credit under the Florida Retirement System and
413 received a refund of his or her contributions upon termination
414 of employment.
415 (22) “Compensation” means the monthly salary paid a member
416 by his or her employer for work performed arising from that
417 employment.
418 (a) Before July 1, 2011, compensation includes shall
419 include:
420 1. Overtime payments paid from a salary fund.
421 2. Accumulated annual leave payments.
422 3. Payments in addition to the employee’s base rate of pay
423 if all the following apply:
424 a. The payments are paid according to a formal written
425 policy that applies to all eligible employees equally;
426 b. The policy provides that payments shall commence by no
427 later than the 11th year of employment;
428 c. The payments are paid for as long as the employee
429 continues his or her employment; and
430 d. The payments are paid at least annually.
431 4. Amounts withheld for tax sheltered annuities or deferred
432 compensation programs, or any other type of salary reduction
433 plan authorized under the Internal Revenue Code.
434 5. Payments made in lieu of a permanent increase in the
435 base rate of pay, whether made annually or in 12 or 26 equal
436 payments within a 12-month period, if when the member’s base pay
437 is at the maximum of his or her pay range. If When a portion of
438 a member’s annual increase raises his or her pay range and the
439 excess is paid as a lump sum payment, the such lump sum payment
440 is considered shall be compensation for retirement purposes.
441 (b) On or after July 1, 2011, compensation includes:
442 1. Payments in addition to the employee’s base rate of pay
443 if the following apply:
444 a. The payments are paid according to a formal written
445 policy that applies to all eligible employees equally;
446 b. The policy provides that payments shall commence by the
447 11th year of employment; and
448 c. The payments are paid at least annually.
449 2. Amounts withheld for tax-sheltered annuities, deferred
450 compensation programs, or any other type of salary reduction
451 plan authorized under the Internal Revenue Code.
452 3. Payments made in lieu of a permanent increase in the
453 base rate of pay, whether made annually or in 12 or 26 equal
454 payments within a 12-month period, if the member’s base pay is
455 at the maximum of his or her pay range. If a portion of a
456 member’s annual increase raises his or her pay range and the
457 excess is paid as a lump sum payment, such lump sum payment is
458 compensation for retirement purposes.
459 (c)(b) Under no circumstances shall Compensation for a
460 member participating in the pension plan defined benefit
461 retirement program or the investment plan Public Employee
462 Optional Retirement Program of the Florida Retirement System may
463 not include:
464 1. Fees paid professional persons for special or particular
465 services or include salary payments made from a faculty practice
466 plan authorized by the Board of Governors of the State
467 University System for eligible clinical faculty at a college in
468 a state university that has a faculty practice plan; or
469 2. Any bonuses or other payments prohibited from inclusion
470 in the member’s average final compensation and defined in
471 subsection (47).
472 (24) “Average final compensation” means the average of the
473 5 highest fiscal years of compensation for creditable service
474 prior to retirement, termination, or death. For in-line-of-duty
475 disability benefits, if less than 5 years of creditable service
476 have been completed, the term “average final compensation” means
477 the average annual compensation of the total number of years of
478 creditable service. Each year used to calculate the in the
479 calculation of average final compensation commences shall
480 commence on July 1.
481 (a) Before July 1, 2011:
482 1. The average final compensation includes shall include:
483 a.1. Accumulated annual leave payments, not to exceed 500
484 hours; and
485 b.2. All payments defined as compensation under this
486 section in subsection (22).
487 2.(b) The average final compensation does shall not
488 include:
489 a.1. Compensation paid to professional persons for special
490 or particular services;
491 b.2. Payments for accumulated sick leave made due to
492 retirement or termination;
493 c.3. Payments for accumulated annual leave in excess of 500
494 hours;
495 d.4. Bonuses as defined in subsection (47);
496 e.5. Third-party Third party payments made on and after
497 July 1, 1990; or
498 f.6. Fringe benefits, such as (for example, automobile
499 allowances or housing allowances).
500 (b) On or after July 1, 2011:
501 1. The average final compensation includes all payments
502 defined as compensation under this section.
503 2. The average final compensation does not include:
504 a. Compensation paid to professional persons for special or
505 particular services;
506 b. Payments for accumulated sick leave made due to
507 retirement or termination;
508 c. Payments for accumulated annual leave;
509 d. Overtime payments paid from a salary fund;
510 e. Bonuses;
511 f. Third-party payments made on and after July 1, 1990; or
512 g. Fringe benefits, such as automobile allowances or
513 housing allowances.
514 (29) “Normal retirement date” means the date a member
515 attains normal retirement age and is vested, which is determined
516 as follows:
517 (a) If a Regular Class member, a Senior Management Service
518 Class member, or an Elected Officers’ Class member:
519 1. The first day of the month the member completes 6 or
520 more years of creditable service and attains age 62; or
521 2. The first day of the month following the date the member
522 completes 30 years of creditable service, regardless of age.
523 (b) If a Special Risk Class member:
524 1. Enrolled before July 1, 2011:
525 a.1. The first day of the month the member completes 6 or
526 more years of creditable service in the Special Risk Class and
527 attains age 55;
528 b.2. The first day of the month following the date the
529 member completes 25 years of creditable service in the Special
530 Risk Class, regardless of age; or
531 c.3. The first day of the month following the date the
532 member completes 25 years of creditable service and attains age
533 52, which service may include a maximum of 4 years of military
534 service credit as long as such credit is not claimed under any
535 other system and the remaining years are in the Special Risk
536 Class.
537 2. Enrolled on or after July 1, 2011:
538 a. The first day of the month the member completes 6 or
539 more years of creditable service in the Special Risk Class and
540 attains age 62; or
541 b. The first day of the month following the date the member
542 completes 30 years of creditable service, regardless of age.
543
544 “Normal retirement age” is attained on the “normal retirement
545 date.”
546 (39)(a) “Termination” or “terminated” means occurs, except
547 as provided in paragraph (b), that when a member ceases all
548 employment relationships with a participating an employer;,
549 however:
550 1. For retirements effective before July 1, 2010, if a
551 member is employed by any such employer within the next calendar
552 month, termination shall be deemed not to have occurred. A leave
553 of absence constitutes a continuation of the employment
554 relationship, except that a leave of absence without pay due to
555 disability may constitute termination if such member makes
556 application for and is approved for disability retirement in
557 accordance with s. 121.091(4). The department or state board may
558 require other evidence of termination as it deems necessary.
559 2. For retirements effective on or after July 1, 2010, if a
560 member is employed by any such employer within the next 6
561 calendar months, termination shall be deemed not to have
562 occurred. A leave of absence constitutes a continuation of the
563 employment relationship, except that a leave of absence without
564 pay due to disability may constitute termination if such member
565 makes application for and is approved for disability retirement
566 in accordance with s. 121.091(4). The department or state board
567 may require other evidence of termination as it deems necessary.
568 (b) “Termination” or “terminated” means for a member
569 electing to participate in the Deferred Retirement Option
570 Program that occurs when the member program participant ceases
571 all employment relationships with a participating an employer in
572 accordance with s. 121.091(13);, however:
573 1. For termination dates occurring before July 1, 2010, if
574 the member participant is employed by any such employer within
575 the next calendar month, termination will be deemed not to have
576 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
577 absence shall constitute a continuation of the employment
578 relationship.
579 2. For termination dates occurring on or after July 1,
580 2010, if the member participant becomes employed by any such
581 employer within the next 6 calendar months, termination will be
582 deemed not to have occurred, except as provided in s.
583 121.091(13)(b)4.c. A leave of absence constitutes a continuation
584 of the employment relationship.
585 (c) Effective July 1, 2011, “termination” or “terminated”
586 means for a member receiving a refund of employee contributions
587 that the member ceases all employment relationships with a
588 participating employer for 3 calendar months. A leave of absence
589 for less than 3 calendar months constitutes a continuation of an
590 employment relationship.
591 (45)
592 (b) Effective July 1, 2001, a 6-year vesting requirement
593 shall be implemented for the defined benefit program of the
594 Florida Retirement System’s pension plan System. Pursuant
595 thereto:
596 1. Any member employed in a regularly established position
597 on July 1, 2001, who completes or has completed a total of 6
598 years of creditable service is shall be considered vested as
599 described in paragraph (a).
600 2. Any member not employed in a regularly established
601 position on July 1, 2001, shall be deemed vested upon completion
602 of 6 years of creditable service if, provided that such member
603 is employed in a covered position for at least 1 work year after
604 July 1, 2001. However, a no member may not shall be required to
605 complete more years of creditable service than would have been
606 required for that member to vest under retirement laws in effect
607 before July 1, 2001.
608 (55) “Benefit” means any pension payment, lump-sum or
609 periodic, to a member, retiree, or beneficiary, based partially
610 or entirely on employer and employee contributions as
611 applicable.
612 (59) “Payee” means a retiree or beneficiary of a retiree
613 who has received or is receiving a retirement benefit payment.
614 (65) “Division” means the Division of Retirement in the
615 department.
616 Section 7. Paragraphs (b), (c), and (d) of subsection (2)
617 of section 121.051, Florida Statutes, are amended, present
618 paragraphs (e) and (f) of that subsection are redesignated as
619 subsections (f) and (g), respectively, a new subsection (e) is
620 added to that subsection, and subsection (3) of that section is
621 amended, to read:
622 121.051 Participation in the system.—
623 (2) OPTIONAL PARTICIPATION.—
624 (b)1. The governing body of any municipality, metropolitan
625 planning organization, or special district in the state may
626 elect to participate in the Florida Retirement System upon
627 proper application to the administrator and may cover all or any
628 of its units as approved by the Secretary of Health and Human
629 Services and the administrator. The department shall adopt rules
630 establishing procedures provisions for the submission of
631 documents necessary for such application. Before Prior to being
632 approved for participation in the Florida Retirement System, the
633 governing body of a any such municipality, metropolitan planning
634 organization, or special district that has a local retirement
635 system must shall submit to the administrator a certified
636 financial statement showing the condition of the local
637 retirement system as of a date within 3 months before prior to
638 the proposed effective date of membership in the Florida
639 Retirement System. The statement must be certified by a
640 recognized accounting firm that is independent of the local
641 retirement system. All required documents necessary for
642 extending Florida Retirement System coverage must be received by
643 the department for consideration at least 15 days before prior
644 to the proposed effective date of coverage. If the governing
645 body municipality, metropolitan planning organization, or
646 special district does not comply with this requirement, the
647 department may require that the effective date of coverage be
648 changed.
649 2. A municipality Any city, metropolitan planning
650 organization, or special district that has an existing
651 retirement system covering the employees in the units that are
652 to be brought under the Florida Retirement System may
653 participate only after holding a referendum in which all
654 employees in the affected units have the right to participate.
655 Only those employees electing coverage under the Florida
656 Retirement System by affirmative vote in the said referendum are
657 shall be eligible for coverage under this chapter, and those not
658 participating or electing not to be covered by the Florida
659 Retirement System shall remain in their present systems and are
660 shall not be eligible for coverage under this chapter. After the
661 referendum is held, all future employees are shall be compulsory
662 members of the Florida Retirement System.
663 3. At the time of joining the Florida Retirement System,
664 the governing body of a municipality any city, metropolitan
665 planning organization, or special district complying with
666 subparagraph 1. may elect to provide, or not provide, benefits
667 based on past service of officers and employees as described in
668 s. 121.081(1). However, if such employer elects to provide past
669 service benefits, such benefits must be provided for all
670 officers and employees of its covered group.
671 4. Once this election is made and approved it may not be
672 revoked, except pursuant to subparagraphs 5. and 6., and all
673 present officers and employees electing coverage under this
674 chapter and all future officers and employees are shall be
675 compulsory members of the Florida Retirement System.
676 5. Subject to the conditions set forth in subparagraph 6.,
677 the governing body of a any hospital licensed under chapter 395
678 which is governed by the board of a special district as defined
679 in s. 189.403(1) or by the board of trustees of a public health
680 trust created under s. 154.07, hereinafter referred to as
681 “hospital district,” and which participates in the Florida
682 Retirement System, may elect to cease participation in the
683 system with regard to future employees in accordance with the
684 following procedure:
685 a. No more than 30 days and at least 7 days before
686 adopting a resolution to partially withdraw from the Florida
687 Retirement system and establish an alternative retirement plan
688 for future employees, a public hearing must be held on the
689 proposed withdrawal and proposed alternative plan.
690 b. From 7 to 15 days before such hearing, notice of intent
691 to withdraw, specifying the time and place of the hearing, must
692 be provided in writing to employees of the hospital district
693 proposing partial withdrawal and must be published in a
694 newspaper of general circulation in the area affected, as
695 provided by ss. 50.011-50.031. Proof of publication must of such
696 notice shall be submitted to the department of Management
697 Services.
698 c. The governing body of a any hospital district seeking to
699 partially withdraw from the system must, before such hearing,
700 have an actuarial report prepared and certified by an enrolled
701 actuary, as defined in s. 112.625(3), illustrating the cost to
702 the hospital district of providing, through the retirement plan
703 that the hospital district is to adopt, benefits for new
704 employees comparable to those provided under the Florida
705 Retirement system.
706 d. Upon meeting all applicable requirements of this
707 subparagraph, and subject to the conditions set forth in
708 subparagraph 6., partial withdrawal from the system and adoption
709 of the alternative retirement plan may be accomplished by
710 resolution duly adopted by the hospital district board. The
711 hospital district board must provide written notice of such
712 withdrawal to the division by mailing a copy of the resolution
713 to the division, postmarked by no later than December 15, 1995.
714 The withdrawal shall take effect January 1, 1996.
715 6. Following the adoption of a resolution under sub
716 subparagraph 5.d., all employees of the withdrawing hospital
717 district who were members of participants in the Florida
718 Retirement system before prior to January 1, 1996, shall remain
719 as members of participants in the system for as long as they are
720 employees of the hospital district, and all rights, duties, and
721 obligations between the hospital district, the system, and the
722 employees shall remain in full force and effect. Any employee
723 who is hired or appointed on or after January 1, 1996, may not
724 participate in the Florida Retirement system, and the
725 withdrawing hospital district has shall have no obligation to
726 the system with respect to such employees.
727 (c) Employees of public community colleges or charter
728 technical career centers sponsored by public community colleges,
729 designated in s. 1000.21(3), who are members of the Regular
730 Class of the Florida Retirement System and who comply with the
731 criteria set forth in this paragraph and s. 1012.875 may, in
732 lieu of participating in the Florida Retirement System, elect to
733 withdraw from the system altogether and participate in the State
734 Community College System Optional Retirement Program provided by
735 the employing agency under s. 1012.875.
736 1. Through June 30, 2001, the cost to the employer for a
737 benefit under the optional retirement program such annuity
738 equals the normal cost portion of the employer retirement
739 contribution which would be required if the employee were a
740 member of the Regular Class pension plan defined benefit
741 program, plus the portion of the contribution rate required by
742 s. 112.363(8) which would otherwise be assigned to the Retiree
743 Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
744 each employer shall contribute on behalf of each member of
745 participant in the optional program an amount equal to 10.43
746 percent of the employee’s participant’s gross monthly
747 compensation. The employer shall deduct an amount for the
748 administration of the program. The employer shall contribute an
749 additional amount to the Florida Retirement System Trust Fund
750 equal to the unfunded actuarial accrued liability portion of the
751 Regular Class contribution rate.
752 2. The decision to participate in the an optional
753 retirement program is irrevocable as long as the employee holds
754 a position eligible for participation, except as provided in
755 subparagraph 3. Any service creditable under the Florida
756 Retirement System is retained after the member withdraws from
757 the system; however, additional service credit in the system may
758 not be earned while a member of the optional retirement program.
759 3. An employee who has elected to participate in the
760 optional retirement program shall have one opportunity, at the
761 employee’s discretion, to transfer from the optional retirement
762 program to the defined benefit program of the Florida Retirement
763 System’s pension plan System or to the investment plan
764 established under part II of this chapter Public Employee
765 Optional Retirement Program, subject to the terms of the
766 applicable optional retirement program contracts.
767 a. If the employee chooses to move to the investment plan
768 Public Employee Optional Retirement program, any contributions,
769 interest, and earnings creditable to the employee under the
770 State Community College System optional retirement program are
771 retained by the employee in the State Community College System
772 optional retirement program, and the applicable provisions of s.
773 121.4501(4) govern the election.
774 b. If the employee chooses to move to the pension plan
775 defined benefit program of the Florida Retirement System, the
776 employee shall receive service credit equal to his or her years
777 of service under the State Community College System optional
778 retirement program.
779 (I) The cost for such credit is the amount representing the
780 present value of the employee’s accumulated benefit obligation
781 for the affected period of service. The cost shall be calculated
782 as if the benefit commencement occurs on the first date the
783 employee becomes eligible for unreduced benefits, using the
784 discount rate and other relevant actuarial assumptions that were
785 used to value the pension Florida Retirement System defined
786 benefit plan liabilities in the most recent actuarial valuation.
787 The calculation must include any service already maintained
788 under the pension defined benefit plan in addition to the years
789 under the State Community College System optional retirement
790 program. The present value of any service already maintained
791 must be applied as a credit to total cost resulting from the
792 calculation. The division shall ensure that the transfer sum is
793 prepared using a formula and methodology certified by an
794 enrolled actuary.
795 (II) The employee must transfer from his or her State
796 Community College System optional retirement program account and
797 from other employee moneys as necessary, a sum representing the
798 present value of the employee’s accumulated benefit obligation
799 immediately following the time of such movement, determined
800 assuming that attained service equals the sum of service in the
801 pension plan defined benefit program and service in the State
802 Community College System optional retirement program.
803 4. Participation in the optional retirement program is
804 limited to employees who satisfy the following eligibility
805 criteria:
806 a. The employee is must be otherwise eligible for
807 membership or renewed membership in the Regular Class of the
808 Florida Retirement System, as provided in s. 121.021(11) and
809 (12) or s. 121.122.
810 b. The employee is must be employed in a full-time position
811 classified in the Accounting Manual for Florida’s Public
812 Community Colleges as:
813 (I) Instructional; or
814 (II) Executive Management, Instructional Management, or
815 Institutional Management, and the, if a community college
816 determines that recruiting to fill a vacancy in the position is
817 to be conducted in the national or regional market, and the
818 duties and responsibilities of the position include the
819 formulation, interpretation, or implementation of policies, or
820 the performance of functions that are unique or specialized
821 within higher education and that frequently support the mission
822 of the community college.
823 c. The employee is must be employed in a position not
824 included in the Senior Management Service Class of the Florida
825 Retirement System, as described in s. 121.055.
826 5. Members of Participants in the program are subject to
827 the same reemployment limitations, renewed membership
828 provisions, and forfeiture provisions as are applicable to
829 regular members of the Florida Retirement System under ss.
830 121.091(9), 121.122, and 121.091(5), respectively. A member
831 participant who receives a program distribution funded by
832 employer contributions is shall be deemed to be retired from a
833 state-administered retirement system if the retiree participant
834 is subsequently employed with an employer that participates in
835 the Florida Retirement System.
836 6. Eligible community college employees are compulsory
837 members of the Florida Retirement System until, pursuant to s.
838 1012.875, a written election to withdraw from the system and
839 participate in the State Community College System optional
840 retirement program is filed with the program administrator and
841 received by the division.
842 a. A community college employee whose program eligibility
843 results from initial employment shall must be enrolled in the
844 State Community College System optional retirement program
845 retroactive to the first day of eligible employment. The
846 employer retirement contributions paid through the month of the
847 employee plan change shall be transferred to the community
848 college to the employee’s optional program account, and,
849 effective the first day of the next month, the employer shall
850 pay the applicable contributions based upon subparagraph 1.
851 b. A community college employee whose program eligibility
852 is due to the subsequent designation of the employee’s position
853 as one of those specified in subparagraph 4., or due to the
854 employee’s appointment, promotion, transfer, or reclassification
855 to a position specified in subparagraph 4., must be enrolled in
856 the program on the first day of the first full calendar month
857 that such change in status becomes effective. The employer
858 retirement contributions paid from the effective date through
859 the month of the employee plan change must be transferred to the
860 community college to the employee’s optional program account,
861 and, effective the first day of the next month, the employer
862 shall pay the applicable contributions based upon subparagraph
863 1.
864 7. Effective July 1, 2003, through December 31, 2008, any
865 member participant of the State Community College System
866 optional retirement program who has service credit in the
867 pension defined benefit plan of the Florida Retirement System
868 for the period between his or her first eligibility to transfer
869 from the pension defined benefit plan to the optional retirement
870 program and the actual date of transfer may, during employment,
871 transfer to the optional retirement program a sum representing
872 the present value of the accumulated benefit obligation under
873 the pension plan defined benefit retirement program for the
874 period of service credit. Upon transfer, all service credit
875 previously earned under the pension plan defined benefit program
876 of the Florida Retirement System during this period is nullified
877 for purposes of entitlement to a future benefit under the
878 pension plan defined benefit program of the Florida Retirement
879 System.
880 (d) The governing body of a charter school or a charter
881 technical career center may elect to participate in the system
882 upon proper application to the administrator and shall cover its
883 units as approved by the Secretary of Health and Human Services
884 and the administrator. Once this election is made and approved,
885 it may not be revoked, and all present officers and employees
886 selecting coverage under this chapter and all future officers
887 and employees shall be compulsory members of the Florida
888 Retirement System.
889 (e) All eligible employees initially enrolled on or after
890 July 1, 2011, except those who are eligible to and elect to
891 enroll in an optional retirement program established under s.
892 121.055(6), s. 121.35, or s. 1012.875, or those who qualify for
893 special risk membership pursuant to s. 121.0515, are compulsory
894 members of the investment plan and membership in the pension
895 plan is not permitted except as provided in s. 121.591. Such
896 employees may not use the election opportunity specified in s.
897 121.4501(4)(e).
898 (3) SOCIAL SECURITY COVERAGE.—Social security coverage
899 shall be provided for all officers and employees who become
900 members under the provisions of subsection (1) or subsection
901 (2). Any modification of the present agreement with the Social
902 Security Administration, or referendum required under the Social
903 Security Act, for the purpose of providing social security
904 coverage for any member shall be requested by the state agency
905 in compliance with the applicable provisions of the Social
906 Security Act governing such coverage. However, retroactive
907 social security coverage for service prior to December 1, 1970,
908 with the employer before December 1, 1970, may shall not be
909 provided for a any member who was not covered under the
910 agreement as of November 30, 1970. The employer-paid employee
911 contributions specified in s. 121.71(2) are subject to taxes
912 imposed under the Federal Insurance Contributions Act, 26 U.S.C.
913 ss. 3101-3128.
914 Section 8. Paragraph (b) of subsection (5), paragraph (a)
915 of subsection (7), and paragraph (c) of subsection (9) of
916 section 121.0515, Florida Statutes, are amended to read:
917 121.0515 Special risk membership.—
918 (5) CREDIT FOR PAST SERVICE.—A special risk member may
919 purchase retirement credit in the Special Risk Class based upon
920 past service, and may upgrade retirement credit for such past
921 service, to the extent of 2 percent of the member’s average
922 monthly compensation as specified in s. 121.091(1)(a) for such
923 service as follows:
924 (b) Contributions for upgrading the additional special risk
925 credit are pursuant to this subsection shall be equal to the
926 difference in the employer and, if applicable, employee
927 contributions paid and the special risk percentage rate of gross
928 salary in effect at the time of purchase for the period being
929 claimed, plus interest thereon at the rate of 4 percent a year
930 compounded annually from the date of such service until July 1,
931 1975, and 6.5 percent a year thereafter until the date of
932 payment. This Past service may be purchased by the member or by
933 the employer on behalf of the member.
934 (7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.—
935 (a) A special risk member who is moved or reassigned to a
936 nonspecial risk law enforcement, firefighting, correctional, or
937 emergency medical care administrative support position within
938 with the same agency, or who is subsequently employed in such a
939 position with any law enforcement, firefighting, correctional,
940 or emergency medical care agency under the Florida Retirement
941 System, shall participate in the Special Risk Administrative
942 Support Class and shall earn credit for such service at the same
943 percentage rate as that earned by a regular member.
944 Notwithstanding the provisions of subsection (4), service in
945 such an administrative support position shall, for purposes of
946 s. 121.091, applies apply toward satisfaction of the special
947 risk normal retirement date, as defined in s. 121.021(29)(b) if,
948 provided that, while in such position, the member remains
949 certified as a law enforcement officer, firefighter,
950 correctional officer, emergency medical technician, or
951 paramedic; remains subject to reassignment at any time to a
952 position qualifying for special risk membership; and completes
953 an aggregate of 6 or more years of service as a designated
954 special risk member before prior to retirement.
955 (9) CREDIT FOR UPGRADED SERVICE.—
956 (c) Any member of the Special Risk Class who has earned
957 creditable service in another membership class of the Florida
958 Retirement System in a position with the Department of Law
959 Enforcement or the Division of State Fire Marshal and became
960 covered by the Special Risk Class as described in paragraph
961 (2)(i), or with a local government law enforcement agency or
962 medical examiner’s office and became covered by the Special Risk
963 Class as described in paragraph (2)(j), which service is within
964 the purview of the Special Risk Class, and is employed in such
965 position on or after July 1, 2008, may purchase additional
966 retirement credit to upgrade such service to Special Risk Class
967 service, to the extent of the percentages of the member’s
968 average final compensation provided in s. 121.091(1)(a)2. The
969 cost for such credit must shall be an amount representing the
970 actuarial accrued liability for the difference in accrual value
971 during the affected period of service. The cost shall be
972 calculated using the discount rate and other relevant actuarial
973 assumptions that were used to value the Florida Retirement
974 System’s pension System defined benefit plan liabilities in the
975 most recent actuarial valuation. The division shall ensure that
976 the transfer sum is prepared using a formula and methodology
977 certified by an enrolled actuary. The cost must be paid
978 immediately upon notification by the division. The local
979 government employer may purchase the upgraded service credit on
980 behalf of the member if the member has been employed by that
981 employer for at least 3 years.
982 Section 9. Paragraphs (a) and (d) of subsection (4) and
983 paragraph (b) of subsection (7) of section 121.052, Florida
984 Statutes, are amended, present paragraph (c) of subsection (7)
985 of that section is redesignated as paragraph (d), a new
986 paragraph (c) is added to that subsection, and subsection (8) of
987 that section is amended, to read:
988 121.052 Membership class of elected officers.—
989 (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
990 TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.—
991 (a) An Any duly elected officer whose term of office was
992 shortened by legislative or judicial apportionment pursuant to
993 the provisions of s. 16, Art. III of the State Constitution may,
994 after the term of office to which he or she was elected is
995 completed, pay into the Florida Retirement System Trust Fund the
996 amount of contributions that would have been made by the officer
997 or the officer’s employer on his or her behalf, plus 4 percent
998 interest compounded annually from the date he or she left office
999 until July 1, 1975, and 6.5 percent interest compounded annually
1000 thereafter, and may receive service credit for the length of
1001 time the officer would have served if such term had not been
1002 shortened by apportionment.
1003 (d)1. Any justice or judge, or any retired justice or judge
1004 who retired before July 1, 1993, who has attained the age of 70
1005 years and who is prevented under s. 8, Art. V of the State
1006 Constitution from completing his or her term of office because
1007 of age may elect to purchase credit for all or a portion of the
1008 months he or she would have served during the remainder of the
1009 term of office; however, but he or she may claim those months
1010 only after the date the service would have occurred. The justice
1011 or judge must pay into the Florida Retirement System Trust Fund
1012 the amount of contributions that would have been made by the
1013 employer on his or her behalf for the period of time being
1014 claimed, plus 6.5 percent interest thereon compounded each June
1015 30 from the date he or she left office, in order to receive
1016 service credit in this class for the period of time being
1017 claimed. After the date the service would have occurred, and
1018 upon payment of the required contributions, the retirement
1019 benefit of a retired justice or judge shall will be adjusted
1020 prospectively to include the this additional creditable service;
1021 however, such adjustment may be made only once.
1022 2. Any justice or judge who does not seek election to a
1023 subsequent term of office because he or she would be prevented
1024 under s. 8, Art. V of the State Constitution from completing
1025 such term of office upon attaining the age of 70 years may elect
1026 to purchase service credit for service as a temporary judge as
1027 assigned by the court if the temporary assignment follows
1028 immediately follows the last full term of office served and the
1029 purchase is limited to the number of months of service needed to
1030 vest retirement benefits. To receive retirement credit for such
1031 temporary service beyond termination, the justice or judge must
1032 pay into the Florida Retirement System Trust Fund the amount of
1033 contributions that would have been made by the justice or judge
1034 and the employer on his or her behalf had he or she continued in
1035 office for the period of time being claimed, plus 6.5 percent
1036 interest thereon compounded each June 30 from the date he or she
1037 left office.
1038 (7) CONTRIBUTIONS.—
1039 (b) The employer paying the salary of a member of the
1040 Elected Officers’ Class shall contribute an amount as specified
1041 in this subsection or s. 121.71, as appropriate, which shall
1042 constitute the entire employer retirement contribution with
1043 respect to such member. The employer shall also withhold one
1044 half of the entire contribution of the member required for
1045 social security coverage. Effective July 1, 2011, members of the
1046 Elected Officers’ Class shall pay retirement contributions as
1047 specified in s. 121.71.
1048 (c) If a member of the Elected Officers’ Class ceases to
1049 fill an office covered by this class for 3 calendar months for
1050 any reason other than retirement and has not been employed in
1051 any capacity with any participating employer for 3 calendar
1052 months, the member is entitled to receive a refund of all
1053 contributions he or she made to the pension plan, subject to the
1054 restrictions otherwise provided in this chapter. Partial refunds
1055 are not permitted. The refund may not include any interest
1056 earnings on contributions to the pension plan. Employer
1057 contributions made on behalf of the member are not refundable. A
1058 member may not receive a refund of employee contributions if a
1059 pending or an approved qualified domestic relations order is
1060 filed against the member’s retirement account. By obtaining a
1061 refund of contributions, a member waives all rights under the
1062 Florida Retirement System, including the health insurance
1063 subsidy under this subsection, to the service credit represented
1064 by the refunded contributions, except the right to purchase
1065 prior service credit in accordance with s. 121.081(2).
1066 (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.—A member
1067 of the Elected Officers’ Class has shall have the same normal
1068 retirement date as defined in s. 121.021(29) for a member of the
1069 regular class of the Florida Retirement System. A Any public
1070 service commissioner who was removed from the Elected State
1071 Officers’ Class on July 1, 1979, after attaining at least 8
1072 years of creditable service in that class is shall be considered
1073 to have reached the normal retirement date upon attaining the
1074 required age as provided 62 as required in s. 121.021(29)(a).
1075 Section 10. Paragraph (a) of subsection (7) of section
1076 121.053, Florida Statutes, is amended to read:
1077 121.053 Participation in the Elected Officers’ Class for
1078 retired members.—
1079 (7) A member who is elected or appointed to an elective
1080 office and who is participating in the Deferred Retirement
1081 Option Program is not subject to termination as defined in s.
1082 121.021, or reemployment limitations as provided in s.
1083 121.091(9), until the end of his or her current term of office
1084 or, if the officer is consecutively elected or reelected to an
1085 elective office eligible for coverage under the Florida
1086 Retirement System, until he or she no longer holds an elective
1087 office, as follows:
1088 (a) At the end of the 60-month DROP period:
1089 1. The officer’s DROP account may not accrue additional
1090 monthly benefits, but does continue to earn interest as provided
1091 in s. 121.091(13). However, an officer whose DROP participation
1092 begins on or after July 1, 2010, may not continue to earn such
1093 interest.
1094 2. Except for unfunded actuarial liability and health
1095 insurance subsidy contributions required under ss. 121.71(5) and
1096 121.76, retirement contributions are not required of the
1097 employer of the elected officer and additional retirement credit
1098 may not be earned under the Florida Retirement System.
1099 Section 11. Paragraphs (b) and (j) of subsection (1),
1100 paragraph (b) of subsection (3), and paragraphs (c), (d), and
1101 (e) of subsection (6) of section 121.055, Florida Statutes, are
1102 amended, present paragraph (c) of subsection (3) of that section
1103 is redesignated as paragraph (d), and a new paragraph (c) is
1104 added to that subsection, to read:
1105 121.055 Senior Management Service Class.—There is hereby
1106 established a separate class of membership within the Florida
1107 Retirement System to be known as the “Senior Management Service
1108 Class,” which shall become effective February 1, 1987.
1109 (1)
1110 (b)1. Except as provided in subparagraph 2., effective
1111 January 1, 1990, participation in the Senior Management Service
1112 Class is shall be compulsory for the president of each community
1113 college, the manager of each participating city or county, and
1114 all appointed district school superintendents. Effective January
1115 1, 1994, additional positions may be designated for inclusion in
1116 the Senior Management Service Class if of the Florida Retirement
1117 System, provided that:
1118 a. Positions to be included in the class are shall be
1119 designated by the local agency employer. Notice of intent to
1120 designate positions for inclusion in the class must shall be
1121 published once a week for 2 consecutive weeks in a newspaper of
1122 general circulation published in the county or counties
1123 affected, as provided under in chapter 50.
1124 b. Up to 10 nonelective full-time positions may be
1125 designated for each local agency employer reporting to the
1126 department of Management Services; for local agencies with 100
1127 or more regularly established positions, additional nonelective
1128 full-time positions may be designated, up to not to exceed 1
1129 percent of the regularly established positions within the
1130 agency.
1131 c. Each position added to the class must be a managerial or
1132 policymaking position filled by an employee who is not subject
1133 to continuing contract and serves at the pleasure of the local
1134 agency employer without civil service protection, and who:
1135 (I) Heads an organizational unit; or
1136 (II) Has responsibility to effect or recommend personnel,
1137 budget, expenditure, or policy decisions in his or her areas of
1138 responsibility.
1139 2. In lieu of participation in the Senior Management
1140 Service Class, members of the Senior Management Service class,
1141 pursuant to the provisions of subparagraph 1., may withdraw from
1142 the Florida Retirement System altogether. The decision to
1143 withdraw from the Florida Retirement system is shall be
1144 irrevocable for as long as the employee holds the such a
1145 position. Any service creditable under the Senior Management
1146 Service Class shall be retained after the member withdraws from
1147 the Florida Retirement system; however, additional service
1148 credit in the Senior Management Service Class may shall not be
1149 earned after such withdrawal. Such members are shall not be
1150 eligible to participate in the Senior Management Service
1151 Optional Annuity Program.
1152 3. Effective January 1, 2006, through June 30, 2006, an
1153 employee who has withdrawn from the Florida Retirement System
1154 under subparagraph 2. has one opportunity to elect to
1155 participate in either the pension plan or investment plan
1156 defined benefit program or the Public Employee Optional
1157 Retirement Program of the Florida Retirement System.
1158 a. If the employee elects to participate in the investment
1159 plan Public Employee Optional Retirement Program, membership is
1160 shall be prospective, and the applicable provisions of s.
1161 121.4501(4) shall govern the election.
1162 b. If the employee elects to participate in the pension
1163 plan defined benefit program of the Florida Retirement System,
1164 the employee shall, upon payment to the system trust fund of the
1165 amount calculated under sub-sub-subparagraph (I), receive
1166 service credit for prior service based upon the time during
1167 which the employee had withdrawn from the system.
1168 (I) The cost for such credit shall be an amount
1169 representing the actuarial accrued liability for the affected
1170 period of service. The cost shall be calculated using the
1171 discount rate and other relevant actuarial assumptions that were
1172 used to value pension the Florida Retirement System defined
1173 benefit plan liabilities in the most recent actuarial valuation.
1174 The calculation must shall include any service already
1175 maintained under the pension defined benefit plan in addition to
1176 the period of withdrawal. The actuarial accrued liability
1177 attributable to any service already maintained under the pension
1178 defined benefit plan shall be applied as a credit to the total
1179 cost resulting from the calculation. The division must shall
1180 ensure that the transfer sum is prepared using a formula and
1181 methodology certified by an actuary.
1182 (II) The employee must transfer a sum representing the net
1183 cost owed for the actuarial accrued liability in sub-sub
1184 subparagraph (I) immediately following the time of such
1185 movement, determined assuming that attained service equals the
1186 sum of service in the pension plan defined benefit program and
1187 the period of withdrawal.
1188 (j) Except as may otherwise be provided, a any member of
1189 the Senior Management Service Class may purchase additional
1190 retirement credit in such class for creditable service within
1191 the purview of the Senior Management Service Class retroactive
1192 to February 1, 1987, and may upgrade retirement credit for such
1193 service, to the extent of 2 percent of the member’s average
1194 monthly compensation as specified in paragraph (4)(d) for such
1195 service. Contributions for upgrading the additional Senior
1196 Management Service credit are pursuant to this paragraph shall
1197 be equal to the difference in the employer and, if applicable,
1198 employee contributions paid and the Senior Management Service
1199 Class contribution rate as a percentage of gross salary in
1200 effect for the period being claimed, plus interest thereon at
1201 the rate of 6.5 percent a year, compounded annually until the
1202 date of payment. The This service credit may be purchased by the
1203 employer on behalf of the member.
1204 (3)
1205 (b) The employer or member of the Senior Management Service
1206 Class, as applicable, paying the salary of a member of the
1207 Senior Management Service Class shall contribute an amount as
1208 specified in this section or s. 121.71, as appropriate, which
1209 shall constitute the entire employer retirement contribution
1210 with respect to such member. The employer shall also withhold
1211 one-half of the entire contribution of the member required for
1212 social security coverage. Effective July 1, 2011, each member
1213 shall pay employee contributions as specified in s. 121.71.
1214 (c) Upon termination of employment from all participating
1215 employers for 3 calendar months as defined in s. 121.021(39)(c)
1216 for any reason other than retirement, a member may receive a
1217 refund of all contributions he or she has made to the pension
1218 plan, subject to the restrictions otherwise provided in this
1219 chapter. Partial refunds are not permitted. The refund may not
1220 include any interest earnings on the contributions for a member
1221 of the pension plan. Employer contributions made on behalf of
1222 the member are not refundable. A member may not receive a refund
1223 of employee contributions if a pending or an approved qualified
1224 domestic relations order is filed against the member’s
1225 retirement account. By obtaining a refund of contributions, a
1226 member waives all rights under the Florida Retirement System and
1227 the health insurance subsidy provided under s. 112.363 to the
1228 service credit represented by the refunded contributions, except
1229 the right to purchase prior service credit in accordance with s.
1230 121.081(2).
1231 (6)
1232 (c) Participation.—
1233 1. An eligible employee who is employed on or before
1234 February 1, 1987, may elect to participate in the optional
1235 annuity program in lieu of participating participation in the
1236 Senior Management Service Class. Such election must be made in
1237 writing and filed with the department and the personnel officer
1238 of the employer on or before May 1, 1987. An eligible employee
1239 who is employed on or before February 1, 1987, and who fails to
1240 make an election to participate in the optional annuity program
1241 by May 1, 1987, shall be deemed to have elected membership in
1242 the Senior Management Service Class.
1243 2. Except as provided in subparagraph 6., an employee who
1244 becomes eligible to participate in the optional annuity program
1245 by reason of initial employment commencing after February 1,
1246 1987, may, within 90 days after the date of commencing
1247 employment, elect to participate in the optional annuity
1248 program. Such election must be made in writing and filed with
1249 the personnel officer of the employer. An eligible employee who
1250 does not within 90 days after commencing employment elect to
1251 participate in the optional annuity program shall be deemed to
1252 have elected membership in the Senior Management Service Class.
1253 3. A person who is appointed to a position in the Senior
1254 Management Service Class and who is a member of an existing
1255 retirement system or the Special Risk or Special Risk
1256 Administrative Support Classes of the Florida Retirement System
1257 may elect to remain in such system or class in lieu of
1258 participating participation in the Senior Management Service
1259 Class or optional annuity program. Such election must be made in
1260 writing and filed with the department and the personnel officer
1261 of the employer within 90 days after of such appointment. An Any
1262 eligible employee who fails to make an election to participate
1263 in the existing system, the Special Risk Class of the Florida
1264 Retirement System, the Special Risk Administrative Support Class
1265 of the Florida Retirement System, or the optional annuity
1266 program shall be deemed to have elected membership in the Senior
1267 Management Service Class.
1268 4. Except as provided in subparagraph 5., an employee’s
1269 election to participate in the optional annuity program is
1270 irrevocable if the employee continues to be employed in an
1271 eligible position and continues to meet the eligibility
1272 requirements set forth in this paragraph.
1273 5. Effective from July 1, 2002, through September 30, 2002,
1274 an any active employee in a regularly established position who
1275 has elected to participate in the Senior Management Service
1276 Optional Annuity Program has one opportunity to choose to move
1277 from the Senior Management Service Optional Annuity Program to
1278 the Florida Retirement System’s pension plan System defined
1279 benefit program.
1280 a. The election must be made in writing and must be filed
1281 with the department and the personnel officer of the employer
1282 before October 1, 2002, or, in the case of an active employee
1283 who is on a leave of absence on July 1, 2002, within 90 days
1284 after the conclusion of the leave of absence. This election is
1285 irrevocable.
1286 b. The employee shall receive service credit under the
1287 pension plan defined benefit program of the Florida Retirement
1288 System equal to his or her years of service under the Senior
1289 Management Service Optional Annuity Program. The cost for such
1290 credit is the amount representing the present value of that
1291 employee’s accumulated benefit obligation for the affected
1292 period of service.
1293 c. The employee must transfer the total accumulated
1294 employer contributions and earnings on deposit in his or her
1295 Senior Management Service Optional Annuity Program account. If
1296 the transferred amount is not sufficient to pay the amount due,
1297 the employee must pay a sum representing the remainder of the
1298 amount due. The employee may not retain any employer
1299 contributions or earnings thereon from the Senior Management
1300 Service Optional Annuity Program account.
1301 6. A retiree of a state-administered retirement system who
1302 is initially reemployed on or after July 1, 2010, may not renew
1303 membership in the Senior Management Service Optional Annuity
1304 Program.
1305 (d) Contributions.—
1306 1.a. Through June 30, 2001, each employer shall contribute
1307 on behalf of each member of participant in the Senior Management
1308 Service Optional Annuity Program an amount equal to the normal
1309 cost portion of the employer retirement contribution which would
1310 be required if the employee participant were a Senior Management
1311 Service Class member of the Florida Retirement System’s pension
1312 plan System defined benefit program, plus the portion of the
1313 contribution rate required in s. 112.363(8) which that would
1314 otherwise be assigned to the Retiree Health Insurance Subsidy
1315 Trust Fund.
1316 b. Effective July 1, 2001, each employer shall contribute
1317 on behalf of each member of participant in the optional annuity
1318 program an amount equal to 12.49 percent of the employee’s
1319 participant’s gross monthly compensation.
1320 c. Effective July 1, 2011, each member of the optional
1321 annuity program shall contribute an amount equal to the employee
1322 contribution required in s. 121.71(3). The employer shall
1323 contribute on behalf of each such employee an amount equal to
1324 the difference between 12.49 percent of the employee’s gross
1325 monthly compensation and the amount equal to the employee’s
1326 required contribution based on the employee’s gross monthly
1327 compensation.
1328 d. The department shall deduct an amount approved by the
1329 Legislature to provide for the administration of this program.
1330 The Payment of the contributions, including contributions made
1331 by the employee, to the optional program which is required by
1332 this subparagraph for each participant shall be made by the
1333 employer to the department, which shall forward the
1334 contributions to the designated company or companies contracting
1335 for payment of benefits for members of the participant under the
1336 optional annuity program. The department shall deduct an amount
1337 approved by the Legislature to provide for the administration of
1338 the program.
1339 2. Each employer shall contribute on behalf of each member
1340 of participant in the Senior Management Service Optional Annuity
1341 Program an amount equal to the unfunded actuarial accrued
1342 liability portion of the employer contribution which would be
1343 required for members of the Senior Management Service Class in
1344 the Florida Retirement System. This contribution shall be paid
1345 to the department for transfer to the Florida Retirement System
1346 Trust Fund.
1347 3. An Optional Annuity Program Trust Fund shall be
1348 established in the State Treasury and administered by the
1349 department to make payments to provider companies on behalf of
1350 the optional annuity program members participants, and to
1351 transfer the unfunded liability portion of the state optional
1352 annuity program contributions to the Florida Retirement System
1353 Trust Fund.
1354 4. Contributions required for social security by each
1355 employer and each employee participant, in the amount required
1356 for social security coverage as now or hereafter may be provided
1357 by the federal Social Security Act, shall be maintained for each
1358 member of participant in the Senior Management Service
1359 retirement program and are shall be in addition to the
1360 retirement contributions specified in this paragraph.
1361 5. Each member of participant in the Senior Management
1362 Service optional annuity program may contribute by way of salary
1363 reduction or deduction a percentage amount of the employee’s
1364 participant’s gross compensation not to exceed the percentage
1365 amount contributed by the employer to the optional annuity
1366 program. Payment of the employee’s participant’s contributions
1367 shall be made by the employer to the department, which shall
1368 forward the contributions to the designated company or companies
1369 contracting for payment of benefits for member’s the participant
1370 under the program.
1371 (e) Benefits.—
1372 1. Benefits under the Senior Management Service Optional
1373 Annuity Program are payable only to members of participants in
1374 the program, or their beneficiaries as designated by the member
1375 participant in the contract with the provider company, and must
1376 be paid by the designated company in accordance with the terms
1377 of the annuity contract applicable to the member participant. A
1378 member participant must be terminated from all employment
1379 relationships with Florida Retirement System employers as
1380 provided in s. 121.021(39) to begin receiving the employer
1381 funded and employee-funded benefit. Benefits funded by employer
1382 and employee contributions are payable under the terms of the
1383 contract to the member participant, his or her beneficiary, or
1384 his or her estate, in addition to:
1385 a. A lump-sum payment to the beneficiary upon the death of
1386 the member participant;
1387 b. A cash-out of a de minimis account upon the request of a
1388 former member participant who has been terminated for a minimum
1389 of 6 calendar months from the employment that entitled him or
1390 her to optional annuity program participation. Such cash-out
1391 must be a complete liquidation of the account balance with that
1392 company and is subject to the Internal Revenue Code;
1393 c. A mandatory distribution of a de minimis account of a
1394 former member participant who has been terminated for a minimum
1395 of 6 calendar months from the employment that entitled him or
1396 her to optional annuity program participation as authorized by
1397 the department; or
1398 d. A lump-sum direct rollover distribution whereby all
1399 accrued benefits, plus interest and investment earnings, are
1400 paid from the member’s participant’s account directly to the
1401 custodian of an eligible retirement plan, as defined in s.
1402 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
1403 member participant.
1404 2. Benefits are not payable for employee hardships,
1405 unforeseeable emergencies, loans, medical expenses, educational
1406 expenses, purchase of a principal residence, payments necessary
1407 to prevent eviction or foreclosure on an employee’s principal
1408 residence, or any other reason before termination from all
1409 employment relationships with participating employers, as
1410 provided in s. 121.021(39).
1411 3.2. The benefits payable to any person under the Senior
1412 Management Service optional annuity program, and any
1413 contribution accumulated under such program, are not subject to
1414 assignment, execution, or attachment or to any legal process
1415 whatsoever.
1416 4.3. Except as provided in subparagraph 5. 4., a member
1417 participant who terminates employment and receives a
1418 distribution, including a rollover or trustee-to-trustee
1419 transfer, funded by employer or employee contributions is shall
1420 be deemed to be retired from a state-administered retirement
1421 system if the retiree participant is subsequently employed with
1422 an employer that participates in the Florida Retirement System.
1423 5.4. A member participant who receives optional annuity
1424 program benefits funded by employer or employee contributions as
1425 a mandatory distribution of a de minimis account authorized by
1426 the department is not considered a retiree.
1427
1428 As used in this paragraph, a “de minimis account” means an
1429 account with a provider company containing employer or employee
1430 contributions and accumulated earnings of not more than $5,000
1431 made under this chapter.
1432 Section 12. Subsections (2) and (5) and paragraph (c) of
1433 subsection (6) of section 121.071, Florida Statutes, are
1434 amended, present paragraph (d) of subsection (6) of that section
1435 is redesignated as paragraph (e), and a new paragraph (d) is
1436 added to that subsection, to read:
1437 121.071 Contributions.—Contributions to the system shall be
1438 made as follows:
1439 (2)(a) Effective January 1, 1975, or October 1, 1975, as
1440 applicable, and through June 30, 2011, each employer shall make
1441 accomplish the contribution required by subsection (1) by a
1442 procedure in which no employee’s gross salary is shall be
1443 reduced. Effective July 1, 2011, each employee, and his or her
1444 employer, shall pay retirement contributions as specified in s.
1445 121.71.
1446 (b) Upon termination of employment from all participating
1447 employers for 3 calendar months as defined in s. 121.021(39)(c)
1448 for any reason other than retirement, a member may receive a
1449 shall be entitled to a full refund of all the contributions he
1450 or she has made to the pension prior or subsequent to
1451 participation in the noncontributory plan, subject to the
1452 restrictions otherwise provided in this chapter. Partial refunds
1453 are not permitted. The refund may not include any interest
1454 earnings on the contributions for a member of the pension plan.
1455 Employer contributions made on behalf of the member are not
1456 refundable. A member may not receive a refund of employee
1457 contributions if a pending or an approved qualified domestic
1458 relations order is filed against his or her retirement account.
1459 By obtaining a refund of contributions, a member waives all
1460 rights under the Florida Retirement System and the health
1461 insurance subsidy to the service credit represented by the
1462 refunded contributions, except the right to purchase prior
1463 service credit in accordance with s. 121.081(2).
1464 (5) Contributions made in accordance with subsections (1),
1465 (2), (3), and (4), and s. 121.71 shall be paid by the employer
1466 into the system trust funds in accordance with rules adopted by
1467 the administrator pursuant to chapter 120, except as may be
1468 otherwise specified herein. Effective July 1, 2002,
1469 contributions paid under subsections (1) and (4) and
1470 accompanying payroll data are due and payable by no later than
1471 the 5th working day of the month immediately following the month
1472 during which the payroll period ended.
1473 (6)
1474 (c) By obtaining a refund of contributions, a member waives
1475 all rights under the Florida Retirement System, including the
1476 health insurance subsidy under subsection (4), to the service
1477 credit represented by the refunded contributions, except the
1478 right to purchase his or her prior service credit in accordance
1479 with s. 121.081(2).
1480 (d) If a member or former member of the pension plan
1481 receives an invalid refund from the Florida Retirement System
1482 Trust Fund, such person must repay the full amount of the
1483 refund, plus interest at 6.5 percent compounded annually on each
1484 June 30 from the date of refund until full repayment is made.
1485 The invalid refund must be repaid before the member retires or,
1486 if applicable, transfers to the investment plan.
1487 Section 13. Paragraphs (b) and (c) of subsection (1) and
1488 subsection (2) of section 121.081, Florida Statutes, are amended
1489 to read:
1490 121.081 Past service; prior service; contributions.
1491 Conditions under which past service or prior service may be
1492 claimed and credited are:
1493 (1)
1494 (b) Past service earned after January 1, 1975, may be
1495 claimed by officers or employees of a municipality, metropolitan
1496 planning organization, charter school, charter technical career
1497 center, or special district who become a covered group under
1498 this system. The governing body of a covered group may elect to
1499 provide benefits for past service earned after January 1, 1975,
1500 in accordance with this chapter., and The cost for such past
1501 service is established by applying the following formula: The
1502 employer shall contribute an amount equal to the employer or
1503 employee contribution rate in effect at the time the service was
1504 earned, as applicable, multiplied by the employee’s gross salary
1505 for each year of past service claimed, plus 6.5 percent 6.5
1506 percent interest thereon, compounded annually, for figured on
1507 each year of past service, with interest compounded from date of
1508 annual salary earned until date of payment.
1509 (c) If an Should the employer does not elect to provide
1510 past service for the member on the date of joining the system,
1511 then the member may claim and pay for the service as provided in
1512 same, based on paragraphs (a) and (b).
1513 (2) Prior service, as defined in s. 121.021(19), may be
1514 claimed as creditable service under the Florida Retirement
1515 System after a member has been reemployed for 1 complete year of
1516 creditable service within a period of 12 consecutive months,
1517 except as provided in paragraph (c). Service performed as a
1518 member participant of the optional retirement program for the
1519 State University System under s. 121.35 or the Senior Management
1520 Service Optional Annuity Program under s. 121.055 may be used to
1521 satisfy the reemployment requirement of 1 complete year of
1522 creditable service. The member may shall not be permitted to
1523 make any contributions for prior service until after completion
1524 of the 1 year of creditable service. If a member does not wish
1525 to claim credit for all of his or her prior service, the service
1526 the member claims must be the most recent period of service. The
1527 required contributions for claiming the various types of prior
1528 service are:
1529 (a) For prior service performed before prior to the date
1530 the system becomes noncontributory for the member and for which
1531 the member had credit under one of the existing retirement
1532 systems and received a refund of contributions upon termination
1533 of employment, the member shall contribute 4 percent of all
1534 salary received during the period being claimed, plus 4 percent
1535 4-percent interest compounded annually from date of refund until
1536 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
1537 annually thereafter, until full payment is made to the Florida
1538 Retirement System Trust Fund, and shall receive credit in the
1539 Regular Class. A member who elected to transfer to the Florida
1540 Retirement System from an existing system may receive credit for
1541 prior service under the existing system if he or she was
1542 eligible under the existing system to claim the prior service at
1543 the time of the transfer. Contributions for such prior service
1544 shall be determined by the applicable provisions of the system
1545 under which the prior service is claimed and shall be paid by
1546 the member, with matching contributions paid by the employer at
1547 the time the service was performed. Effective July 1, 1978, the
1548 account of a person who terminated under s. 238.05(3) may not be
1549 charged interest for contributions that remained on deposit in
1550 the Annuity Savings Trust Fund established under chapter 238,
1551 upon retirement under this chapter or chapter 238.
1552 (b) For prior service performed before prior to the date
1553 the system becomes noncontributory for the member and for which
1554 the member had credit under the Florida Retirement System and
1555 received a refund of contributions upon termination of
1556 employment, the member shall contribute at the rate that was
1557 required of him or her during the period of service being
1558 claimed, on all salary received during such period, plus 4
1559 percent 4-percent interest compounded annually from date of
1560 refund until July 1, 1975, and 6.5 percent 6.5-percent interest
1561 compounded annually thereafter, until the full payment is made
1562 to the Florida Retirement System Trust Fund, and shall receive
1563 credit in the membership class in which the member participated
1564 during the period claimed.
1565 (c) For prior service as defined in s. 121.021(19)(b) and
1566 (c) during which no contributions were made because the member
1567 did not participate in a retirement system, the member shall
1568 contribute 14.38 percent of all salary received during such
1569 period or 14.38 percent of $100 per month during such period,
1570 whichever is greater, plus 4 percent 4-percent interest
1571 compounded annually from the first year of service claimed until
1572 July 1, 1975, and 6.5 percent 6.5-percent interest compounded
1573 annually thereafter, until full payment is made to the
1574 Retirement Trust Fund, and shall receive credit in the Regular
1575 Class.
1576 (d) In order to claim credit for prior service as defined
1577 in s. 121.021(19)(d) for which no retirement contributions were
1578 paid during the period of such service, the member shall
1579 contribute the total employee and employer contributions which
1580 were required to be made to the Highway Patrol Pension Trust
1581 Fund, as provided in chapter 321, during the period claimed,
1582 plus 4 percent 4-percent interest compounded annually from the
1583 first year of service until July 1, 1975, and 6.5 percent 6.5
1584 percent interest compounded annually thereafter, until full
1585 payment is made to the Retirement Trust Fund. However, any
1586 governmental entity that which employed such member may elect to
1587 pay up to 50 percent of the contributions and interest required
1588 to purchase the this prior service credit. The service shall be
1589 credited in accordance with the provisions of the Highway Patrol
1590 Pension Plan in effect during the period claimed unless the
1591 member terminated and withdrew his or her retirement
1592 contributions and was thereafter enrolled in the State and
1593 County Officers and Employees’ Retirement System or the Florida
1594 Retirement System, in which case the service shall be credited
1595 as Regular Class service.
1596 (e) For service performed under the Florida Retirement
1597 System after December 1, 1970, which that was never reported to
1598 the division or the department due to error, retirement credit
1599 may be claimed by a member of the Florida Retirement System. The
1600 department shall adopt rules establishing criteria for claiming
1601 such credit and detailing the documentation required to
1602 substantiate the error.
1603 (f) For prior service performed on or after July 1, 2011,
1604 for which the member had credit under the Florida Retirement
1605 System and received a refund of contributions 3 calendar months
1606 after termination of employment, the member shall contribute at
1607 the rate that was required during the period of service being
1608 claimed, plus 6.5 percent interest, compounded annually on each
1609 June 30 from date of refund until the full payment is made to
1610 the Florida Retirement System Trust Fund, and shall receive
1611 credit in the membership class in which the member participated
1612 during the period claimed.
1613 (g)(f) The employer may not be required to make
1614 contributions for prior service credit for any member, except
1615 that the employer shall pay the employer portion of
1616 contributions for any legislator who elects to withdraw from the
1617 Florida Retirement System and later rejoins the system and pays
1618 any employee contributions required in accordance with s.
1619 121.052(3)(d).
1620 Section 14. Paragraph (a) of subsection (3), paragraph (a)
1621 of subsection (4), paragraphs (a) and (c) of subsection (5),
1622 paragraph (d) of subsection (9), paragraph (a) of subsection
1623 (13), and paragraph (d) of subsection (14) of section 121.091,
1624 Florida Statutes, are amended, and subsection (l) is added to
1625 subsection (13) of that section, to read:
1626 121.091 Benefits payable under the system.—Benefits may not
1627 be paid under this section unless the member has terminated
1628 employment as provided in s. 121.021(39)(a) or begun
1629 participation in the Deferred Retirement Option Program as
1630 provided in subsection (13), and a proper application has been
1631 filed in the manner prescribed by the department. The department
1632 may cancel an application for retirement benefits when the
1633 member or beneficiary fails to timely provide the information
1634 and documents required by this chapter and the department’s
1635 rules. The department shall adopt rules establishing procedures
1636 for application for retirement benefits and for the cancellation
1637 of such application when the required information or documents
1638 are not received.
1639 (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
1640 early retirement date, the member shall receive an immediate
1641 monthly benefit that shall begin to accrue on the first day of
1642 the month of the retirement date and be payable on the last day
1643 of that month and each month thereafter during his or her
1644 lifetime. Such benefit shall be calculated as follows:
1645 (a) The amount of each monthly payment shall be computed in
1646 the same manner as for a normal retirement benefit, in
1647 accordance with subsection (1), but shall be based on the
1648 member’s average monthly compensation and creditable service as
1649 of the member’s early retirement date. The benefit so computed
1650 shall be reduced by five-twelfths of 1 percent for each complete
1651 month by which the early retirement date precedes the normal
1652 retirement date of age 62 for a member of the Regular Class,
1653 Senior Management Service Class, or the Elected Officers’ Class,
1654 and age 55 for a member of the Special Risk Class, or age 52 if
1655 a Special Risk member has completed 25 years of creditable
1656 service in accordance with s. 121.021(29)(b)3.
1657 (4) DISABILITY RETIREMENT BENEFIT.—
1658 (a) Disability retirement; entitlement and effective date.—
1659 1.a. A member who becomes totally and permanently disabled,
1660 as defined in paragraph (b), after completing 5 years of
1661 creditable service, or a member who becomes totally and
1662 permanently disabled in the line of duty regardless of service,
1663 is shall be entitled to a monthly disability benefit; except
1664 that any member with less than 5 years of creditable service on
1665 July 1, 1980, or any person who becomes a member of the Florida
1666 Retirement System on or after such date must have completed 10
1667 years of creditable service before prior to becoming totally and
1668 permanently disabled in order to receive disability retirement
1669 benefits for any disability which occurs other than in the line
1670 of duty. However, if a member employed on July 1, 1980, having
1671 with less than 5 years of creditable service as of that date,
1672 becomes totally and permanently disabled after completing 5
1673 years of creditable service and is found not to have attained
1674 fully insured status for benefits under the federal Social
1675 Security Act, such member is shall be entitled to a monthly
1676 disability benefit.
1677 b. Effective July 1, 2001, a member of the pension plan
1678 defined benefit retirement program who becomes totally and
1679 permanently disabled, as defined in paragraph (b), after
1680 completing 8 years of creditable service, or a member who
1681 becomes totally and permanently disabled in the line of duty
1682 regardless of service, is shall be entitled to a monthly
1683 disability benefit.
1684 2. If the division has received from the employer the
1685 required documentation of the member’s termination of
1686 employment, the effective retirement date for a member who
1687 applies and is approved for disability retirement shall be
1688 established by rule of the division.
1689 3. For a member who is receiving Workers’ Compensation
1690 payments, the effective disability retirement date may not
1691 precede the date the member reaches Maximum Medical Improvement
1692 (MMI), unless the member terminates employment before prior to
1693 reaching MMI.
1694 (5) TERMINATION BENEFITS.—A member whose employment is
1695 terminated before prior to retirement retains membership rights
1696 to previously earned member-noncontributory service credit, and
1697 to member-contributory service credit, if the member leaves the
1698 member contributions on deposit in his or her retirement
1699 account. If a terminated member receives a refund of member
1700 contributions, such member may reinstate membership rights to
1701 the previously earned service credit represented by the refund
1702 by completing 1 year of creditable service and repaying the
1703 refunded member contributions, plus interest.
1704 (a) A member whose employment is terminated for any reason
1705 other than death or retirement before prior to becoming vested
1706 is entitled to the return of his or her accumulated employee
1707 contributions as of the date of termination. Effective July 1,
1708 2011, upon termination of employment from all participating
1709 employers for 3 calendar months as defined in s. 121.021(39)(c)
1710 for any reason other than retirement, a member may receive a
1711 refund of all contributions he or she has made to the pension
1712 plan, subject to the restrictions otherwise provided in this
1713 chapter. Partial refunds are not permitted. The refund may not
1714 include any interest earnings on the contributions for a member
1715 of the pension plan. Employer contributions made on behalf of
1716 the member are not refundable. A member may not receive a refund
1717 of employee contributions if a pending or an approved qualified
1718 domestic relations order is filed against his or her retirement
1719 account. By obtaining a refund of contributions, a member waives
1720 all rights under the Florida Retirement System and the health
1721 insurance subsidy to the service credit represented by the
1722 refunded contributions, except the right to purchase prior
1723 service credit in accordance with s. 121.081(2).
1724 (c) In lieu of the deferred monthly benefit provided in
1725 paragraph (b), the terminated member may elect to receive a
1726 lump-sum amount equal to his or her accumulated employee
1727 contributions as of the date of termination. Effective July 1,
1728 2011, upon termination of employment from all participating
1729 employers for 3 calendar months as defined in s. 121.021(39)(c)
1730 for any reason other than retirement, a member may receive a
1731 refund of all contributions he or she has made to the pension
1732 plan, subject to the restrictions otherwise provided in this
1733 chapter. Partial refunds are not permitted. The refund may not
1734 include any interest earnings on the contributions for a member
1735 of the pension plan. Employer contributions made on behalf of
1736 the member are not refundable. A member may not receive a refund
1737 of employee contributions if a pending or an approved qualified
1738 domestic relations order is filed against his or her retirement
1739 account. By obtaining a refund of contributions, a member waives
1740 all rights under the Florida Retirement System and the health
1741 insurance subsidy to the service credit represented by the
1742 refunded contributions, except the right to purchase prior
1743 service credit in accordance with s. 121.081(2).
1744 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
1745 (d) The provisions of This subsection applies apply to
1746 retirees, as defined in s. 121.4501(2), of the Florida Public
1747 Employee Optional Retirement System Investment Plan Program,
1748 subject to the following conditions:
1749 1. The retiree retirees may not be reemployed with an
1750 employer participating in the Florida Retirement System until
1751 such person has been retired for 6 calendar months.
1752 2. A retiree employed in violation of this subsection and
1753 an employer that employs or appoints such person are jointly and
1754 severally liable for reimbursement of any benefits paid to the
1755 retirement trust fund from which the benefits were paid,
1756 including the Retirement System Trust Fund and the Public
1757 Employee Optional Retirement Program Trust Fund, as appropriate.
1758 The employer must have a written statement from the retiree that
1759 he or she is not retired from a state-administered retirement
1760 system.
1761 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
1762 subject to this section, the Deferred Retirement Option Program,
1763 hereinafter referred to as DROP, is a program under which an
1764 eligible member of the Florida Retirement System may elect to
1765 participate, deferring receipt of retirement benefits while
1766 continuing employment with his or her Florida Retirement System
1767 employer. The deferred monthly benefits shall accrue in the
1768 Florida Retirement System on behalf of the participant, plus
1769 interest compounded monthly, for the specified period of the
1770 DROP participation, as provided in paragraph (c). Upon
1771 termination of employment, the participant shall receive the
1772 total DROP benefits and begin to receive the previously
1773 determined normal retirement benefits. Participation in the DROP
1774 does not guarantee employment for the specified period of DROP.
1775 Participation in DROP by an eligible member beyond the initial
1776 60-month period as authorized in this subsection shall be on an
1777 annual contractual basis for all participants.
1778 (a) Eligibility of member to participate in DROP.—All
1779 active Florida Retirement System members in a regularly
1780 established position, and all active members of the Teachers’
1781 Retirement System established in chapter 238 or the State and
1782 County Officers’ and Employees’ Retirement System established in
1783 chapter 122, which are consolidated within the Florida
1784 Retirement System under s. 121.011, are eligible to elect
1785 participation in DROP if:
1786 1. The member is not a renewed member under s. 121.122 or a
1787 member of the State Community College System Optional Retirement
1788 Program under s. 121.051, the Senior Management Service Optional
1789 Annuity Program under s. 121.055, or the optional retirement
1790 program for the State University System under s. 121.35.
1791 2. Except as provided in subparagraph 6., election to
1792 participate is made within 12 months immediately following the
1793 date on which the member first reaches normal retirement date,
1794 or, for a member who reaches normal retirement date based on
1795 service before he or she reaches age 62, or age 55 for Special
1796 Risk Class members, election to participate may be deferred to
1797 the 12 months immediately following the date the member attains
1798 age 57, or age 52 for Special Risk Class members. A member who
1799 delays DROP participation during the 12-month period immediately
1800 following his or her maximum DROP deferral date, except as
1801 provided in subparagraph 6., loses a month of DROP participation
1802 for each month delayed. A member who fails to make an election
1803 within the 12-month limitation period forfeits all rights to
1804 participate in DROP. The member shall advise his or her employer
1805 and the division in writing of the date DROP begins. The
1806 beginning date may be subsequent to the 12-month election period
1807 but must be within the original 60-month participation period
1808 provided in subparagraph (b)1. When establishing eligibility of
1809 the member to participate in DROP, the member may elect to
1810 include or exclude any optional service credit purchased by the
1811 member from the total service used to establish the normal
1812 retirement date. A member who has dual normal retirement dates
1813 is eligible to elect to participate in DROP after attaining
1814 normal retirement date in either class.
1815 3. The employer of a member electing to participate in
1816 DROP, or employers if dually employed, shall acknowledge in
1817 writing to the division the date the member’s participation in
1818 DROP begins and the date the member’s employment and DROP
1819 participation terminates will terminate.
1820 4. Simultaneous employment of a member participant by
1821 additional Florida Retirement System employers subsequent to the
1822 commencement of a member’s participation in DROP is permissible
1823 if such employers acknowledge in writing a DROP termination date
1824 no later than the member’s participant’s existing termination
1825 date or the maximum participation period provided in
1826 subparagraph (b)1.
1827 5. A member DROP participant may change employers while
1828 participating in DROP, subject to the following:
1829 a. A change of employment must take place without a break
1830 in service so that the member receives salary for each month of
1831 continuous DROP participation. If a member receives no salary
1832 during a month, DROP participation ceases shall cease unless the
1833 employer verifies a continuation of the employment relationship
1834 for such member participant pursuant to s. 121.021(39)(b).
1835 b. The member Such participant and new employer shall
1836 notify the division of the identity of the new employer on forms
1837 required by the division.
1838 c. The new employer acknowledges shall acknowledge, in
1839 writing, the member’s participant’s DROP termination date, which
1840 may be extended but not beyond the maximum participation period
1841 provided in subparagraph (b)1., acknowledges shall acknowledge
1842 liability for any additional retirement contributions and
1843 interest required if the member participant fails to timely
1844 terminate employment, and is subject to the adjustment required
1845 in sub-subparagraph (c)5.d.
1846 6. Effective July 1, 2001, for instructional personnel as
1847 defined in s. 1012.01(2), election to participate in DROP may be
1848 made at any time following the date on which the member first
1849 reaches normal retirement date. The member shall advise his or
1850 her employer and the division in writing of the date on which
1851 DROP begins. When establishing eligibility of the member to
1852 participate in DROP for the 60-month participation period
1853 provided in subparagraph (b)1., the member may elect to include
1854 or exclude any optional service credit purchased by the member
1855 from the total service used to establish the normal retirement
1856 date. A member who has dual normal retirement dates is eligible
1857 to elect to participate in either class.
1858 7. The effective date for DROP participation is before July
1859 1, 2011.
1860 (l) Closure of program to new participants.—Effective July
1861 1, 2011, DROP is closed to new participants. Only members whose
1862 DROP effective date is before July 1, 2011, may participate in
1863 DROP.
1864 (14) PAYMENT OF BENEFITS.—This subsection applies to the
1865 payment of benefits to a payee (retiree or beneficiary) under
1866 the Florida Retirement System:
1867 (d) A payee whose retirement benefits are reduced by the
1868 application of maximum benefit limits under s. 415(b) of the
1869 Internal Revenue Code, as specified in s. 121.30(5), shall have
1870 the portion of his or her calculated benefit in the Florida
1871 Retirement System’s pension System defined benefit plan which
1872 exceeds such federal limitation paid through the Florida
1873 Retirement System Preservation of Benefits Plan, as provided in
1874 s. 121.1001.
1875 Section 15. Subsection (1) and paragraph (a) of subsection
1876 (2) of section 121.1001, Florida Statutes, are amended to read:
1877 121.1001 Florida Retirement System Preservation of Benefits
1878 Plan.—Effective July 1, 1999, the Florida Retirement System
1879 Preservation of Benefits Plan is established as a qualified
1880 governmental excess benefit arrangement pursuant to s. 415(m) of
1881 the Internal Revenue Code. The Preservation of Benefits Plan is
1882 created as a separate portion of the Florida Retirement System,
1883 for the purpose of providing benefits to a payee (retiree or
1884 beneficiary) of the Florida Retirement System whose benefits
1885 would otherwise be limited by s. 415(b) of the Internal Revenue
1886 Code.
1887 (1) ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF
1888 BENEFITS PLAN.—A payee of the Florida Retirement System shall
1889 participate in the Preservation of Benefits Plan if whenever his
1890 or her earned benefit under the Florida Retirement System’s
1891 pension System defined benefit plan exceeds the benefit maximum
1892 established under s. 415(b) of the Internal Revenue Code.
1893 Participation in the Preservation of Benefits Plan shall
1894 continue for as long as the payee’s earned benefit under the
1895 pension Florida Retirement System defined benefit plan is
1896 reduced by the application of the maximum benefit limit under s.
1897 415(b) of the Internal Revenue Code.
1898 (2) BENEFITS PAYABLE UNDER THE PRESERVATION OF BENEFITS
1899 PLAN.—
1900 (a) On and after July 1, 1999, the division of Retirement
1901 shall pay to each eligible payee of the Florida Retirement
1902 System who retires before, on, or after that such date, a
1903 supplemental retirement benefit equal to the difference between
1904 the amount of the payee’s monthly retirement benefit which would
1905 have been payable under the Florida Retirement System’s pension
1906 System defined benefit plan if not for a reduction due to the
1907 application of s. 415(b) of the Internal Revenue Code and the
1908 reduced monthly retirement benefit as paid to the payee. The
1909 Preservation of Benefits Plan benefit shall be computed and
1910 payable under the same terms and conditions and to the same
1911 person as would have applied under the pension Florida
1912 Retirement System defined benefit plan were it not for the
1913 federal limitation.
1914 Section 16. Subsections (1) and (3) of section 121.101,
1915 Florida Statutes, are amended, present subsections (4) through
1916 (7) of that section are redesignated as subsections (5) through
1917 (8), respectively, and a new subsection (4) is added to that
1918 section, to read:
1919 121.101 Cost-of-living adjustment of benefits.—
1920 (1) The purpose of this section is to provide cost-of
1921 living adjustments to the monthly benefits payable to all
1922 retired members of state-supported retirement systems.
1923 (3) Commencing July 1, 1987, the benefit of each retiree
1924 and annuitant retiring before July 1, 2011, shall be adjusted
1925 annually on each July 1 thereafter, as follows:
1926 (a) For those retirees and annuitants who have never
1927 received a cost-of-living adjustment under this section, the
1928 amount of the monthly benefit payable for the 12-month period
1929 commencing on the adjustment date shall be the amount of the
1930 member’s initial benefit plus an amount equal to a percentage of
1931 the member’s initial benefit; this percentage is derived by
1932 dividing the number of months the member has received an initial
1933 benefit by 12, and multiplying the result by 3.
1934 (b) For those retirees and annuitants who have received a
1935 cost-of-living adjustment under this subsection section, the
1936 adjusted monthly benefit shall be the amount of the monthly
1937 benefit being received on June 30 immediately preceding the
1938 adjustment date plus an amount equal to 3 percent of this
1939 benefit.
1940 (4) For members retiring on or after July 1, 2011, the
1941 benefit of each retiree and annuitant shall be adjusted annually
1942 on July 1 as follows:
1943 (a) For those retirees and annuitants who have never
1944 received a cost-of-living adjustment under this subsection, the
1945 amount of the monthly benefit payable for the 12-month period
1946 commencing on the adjustment date shall be the amount of the
1947 member’s initial benefit plus an amount equal to a percentage of
1948 the member’s initial benefit. This percentage is derived by
1949 dividing the number of months the member has received an initial
1950 benefit by 12, and multiplying the result by the factor
1951 calculated pursuant to paragraph (c).
1952 (b) For those retirees and annuitants who have received a
1953 cost-of-living adjustment under this subsection, the adjusted
1954 monthly benefit shall be the amount of the monthly benefit being
1955 received on June 30 immediately preceding the adjustment date
1956 plus an amount determined by multiplying the benefit by the
1957 factor calculated pursuant to paragraph (c).
1958 (c) The department shall calculate a cost-of-living factor
1959 for each retiree and beneficiary retiring on or after July 1,
1960 2011. This factor shall equal the product of 3 percent
1961 multiplied by the quotient of the sum of the member’s service
1962 credit earned for service before July 1, 2011, divided by the
1963 sum of the member’s total service credit earned.
1964 Section 17. Subsection (1) of section 121.121, Florida
1965 Statutes, is amended to read:
1966 121.121 Authorized leaves of absence.—
1967 (1) A member may purchase creditable service for up to 2
1968 work years of authorized leaves of absence, including any leaves
1969 of absence covered under the Family Medical Leave Act, if:
1970 (a) The member has completed a minimum of 6 years of
1971 creditable service, excluding periods for which a leave of
1972 absence was authorized;
1973 (b) The leave of absence is authorized in writing by the
1974 employer of the member and approved by the administrator;
1975 (c) The member returns to active employment performing
1976 service with a Florida Retirement System employer in a regularly
1977 established position immediately upon termination of the leave
1978 of absence and remains on the employer’s payroll for 1 calendar
1979 month, except that a member who retires on disability while on a
1980 medical leave of absence may shall not be required to return to
1981 employment. A member whose work year is less than 12 months and
1982 whose leave of absence terminates between school years is
1983 eligible to receive credit for the leave of absence if as long
1984 as he or she returns to the employment of his or her employer at
1985 the beginning of the next school year and remains on the
1986 employer’s payroll for 1 calendar month; and
1987 (d) The member makes the required contributions for service
1988 credit during the leave of absence, which shall be 8 percent
1989 until January 1, 1975, and 9 percent thereafter of his or her
1990 rate of monthly compensation in effect immediately before prior
1991 to the commencement of such leave for each month of such period,
1992 plus 4 percent interest until July 1, 1975, and 6.5 percent
1993 interest thereafter on such contributions, compounded annually
1994 each June 30 from the due date of the contribution to date of
1995 payment. Effective July 1, 1980, any leave of absence purchased
1996 pursuant to this section is shall be at the contribution rates
1997 specified in s. 121.071 or s. 121.71 in effect at the time the
1998 leave is granted for the class of membership from which the
1999 leave of absence was granted; however, any member who purchased
2000 leave-of-absence credit before prior to July 1, 1980, for a
2001 leave of absence from a position in a class other than the
2002 regular membership class, may pay the appropriate additional
2003 contributions plus compound interest thereon and receive
2004 creditable service for such leave of absence in the membership
2005 class from which the member was granted the leave of absence.
2006 Effective July 1, 2011, any leave of absence purchased pursuant
2007 to this section shall be at the employee and employer
2008 contribution rates specified in s. 121.71 in effect during the
2009 leave for the class of membership from which the leave of
2010 absence was granted.
2011 Section 18. Subsection (2) of section 121.122, Florida
2012 Statutes, is amended, and subsection (3) is added to that
2013 section, to read:
2014 121.122 Renewed membership in system.—
2015 (2) A retiree of a state-administered retirement system who
2016 is initially reemployed on or after July 1, 2010, through June
2017 30, 2011, shall become a member of the Regular Class and be
2018 enrolled in the Florida Retirement System Investment Plan on
2019 July 1, 2011, and must resatisfy the vesting requirements and
2020 other provisions provided in this chapter is not eligible for
2021 renewed membership.
2022 (a) Creditable service, including credit towards the
2023 retiree health insurance subsidy provided in s. 112.363, does
2024 not accrue for a retiree’s employment in a regularly established
2025 position with a covered employer during the period from July 1,
2026 2010, through June 30, 2011.
2027 (b) Employer contributions, interest, earnings, or any
2028 other funds may not be paid into a renewed member’s investment
2029 plan account for any employment in a regularly established
2030 position with a covered employer during the period from July 1,
2031 2010, through June 30, 2011.
2032 (c) To be eligible to receive a retirement benefit under
2033 the investment plan, the renewed member must meet the vesting
2034 requirements of the plan as provided in s. 121.4501(6).
2035 (d) The member is not entitled to disability benefits as
2036 provided in s. 121.091(4) or s. 121.591(2).
2037 (e) The member must meet the limitations on reemployment
2038 after retirement as provided in s. 121.091(9), as applicable.
2039 (f) Upon the renewed membership or reemployment of a
2040 retiree, the employer of such member and the retiree shall pay
2041 the applicable employer and employee contributions as required
2042 by ss. 112.363, 121.71, 121.74, and 121.76. Such contributions
2043 are payable only for employment in a regularly established
2044 position with a covered employer on or after July 1, 2011.
2045 (g) The member may not purchase any prior or past service
2046 in the investment plan, including employment in a regularly
2047 established position with a covered employer during the period
2048 from July 1, 2010, through June 30, 2011.
2049 (h) A renewed member who is not receiving the maximum
2050 health insurance subsidy provided in s. 112.363 is entitled to
2051 earn additional credit toward the subsidy. Such credit may be
2052 earned only for employment in a regularly established position
2053 with a covered employer on or after July 1, 2011. Any additional
2054 subsidy due because of additional credit may be received only at
2055 the time of paying the second career retirement benefit. The
2056 total health insurance subsidy received by a retiree receiving
2057 benefits from initial and renewed membership may not exceed the
2058 maximum allowed under s. 112.363.
2059 (3) Any retiree of a state-administered retirement system
2060 who is initially reemployed on or after July 1, 2011, in a
2061 regularly established position with a covered employer,
2062 including an elective public office that does not qualify for
2063 the Elected Officers’ Class, shall become a member of the
2064 Regular Class and be enrolled in the Florida Retirement System
2065 Investment Plan, and must resatisfy the vesting requirements and
2066 other provisions provided in this chapter.
2067 (a) To be eligible to receive a retirement benefit under
2068 the investment plan, the renewed member must meet the vesting
2069 requirements of the investment plan as provided in s.
2070 121.4501(6).
2071 (b) The member is not entitled to disability benefits as
2072 provided in s. 121.091(4) or s. 121.591(2).
2073 (c) The member must meet the limitations on reemployment
2074 after retirement provided in s. 121.091(9), as applicable.
2075 (d) Upon renewed membership or reemployment of a retiree,
2076 the employer of such member and the retiree must pay the
2077 applicable employer and employee contributions as required by
2078 ss. 112.363, 121.71, 121.74, and 121.76.
2079 (e) The member may not purchase any prior or past service
2080 in the investment plan.
2081 (f) A renewed member who is not receiving the maximum
2082 health insurance subsidy provided in s. 112.363 is entitled to
2083 earn additional credit toward the subsidy. Any additional
2084 subsidy due because of additional credit may be received only at
2085 the time of paying the second career retirement benefit. The
2086 total health insurance subsidy received by a retiree receiving
2087 benefits from initial and renewed membership may not exceed the
2088 maximum allowed under s. 112.363.
2089 Section 19. Section 121.125, Florida Statutes, is amended
2090 to read:
2091 121.125 Credit for workers’ compensation payment periods.—A
2092 member of the retirement system created by this chapter who has
2093 been eligible or becomes eligible for to receive workers’
2094 compensation payments for an injury or illness that occurred
2095 occurring during his or her employment while a member of a any
2096 state retirement system shall, upon return to active employment
2097 with a covered employer for 1 calendar month or upon approval
2098 for disability retirement in accordance with s. 121.091(4),
2099 receive full retirement credit for the period before prior to
2100 such return to active employment or disability retirement for
2101 which the workers’ compensation payments were received. However,
2102 a no member may not receive retirement credit for any such
2103 period occurring after the earlier of the date of maximum
2104 medical improvement as defined in s. 440.02 or the date
2105 termination has occurred as defined in s. 121.021(39). The
2106 employer of record at the time of the worker’s compensation
2107 injury or illness shall make the required employee and employer
2108 retirement contributions based on the member’s rate of monthly
2109 compensation immediately before prior to his or her receiving
2110 workers’ compensation payments for retirement credit received by
2111 the member. The employer of record at the time of the workers’
2112 compensation injury or illness shall be assessed by the division
2113 a penalty of 1 percent of the contributions on all contributions
2114 not paid on the first payroll report after the member becomes
2115 eligible to receive credit. This delinquent assessment may not
2116 be waived.
2117 Section 20. Paragraphs (g) and (i) of subsection (3) and
2118 subsections (4) and (5) of section 121.35, Florida Statutes, are
2119 amended to read:
2120 121.35 Optional retirement program for the State University
2121 System.—
2122 (3) ELECTION OF OPTIONAL PROGRAM.—
2123 (g) An eligible employee who is a member of the Florida
2124 Retirement System at the time of electing election to
2125 participate in the optional retirement program shall retain all
2126 retirement service credit earned under the Florida Retirement
2127 System, at the rate earned. No Additional service credit in the
2128 Florida Retirement system may not shall be earned while the
2129 employee participates in the optional program, and nor shall the
2130 employee is not be eligible for disability retirement under the
2131 Florida Retirement system. An eligible employee may transfer
2132 from the Florida Retirement System to his or her accounts under
2133 the State University System Optional Retirement Program a sum
2134 representing the present value of the employee’s accumulated
2135 benefit obligation under the defined benefit program of the
2136 Florida Retirement System’s pension plan System for any service
2137 credit accrued from the employee’s first eligible transfer date
2138 to the optional retirement program through the actual date of
2139 such transfer, if such service credit was earned in the period
2140 from July 1, 1984, through December 31, 1992. The present value
2141 of the employee’s accumulated benefit obligation shall be
2142 calculated as described in s. 121.4501(3) s. 121.4501(3)(c)2.
2143 Upon such transfer, all such service credit previously earned
2144 under the pension plan defined benefit program of the Florida
2145 Retirement System during this period is shall be nullified for
2146 purposes of entitlement to a future benefit under the pension
2147 plan defined benefit program of the Florida Retirement System.
2148 (i) Effective January 1, 2008, through December 31, 2008,
2149 except for an employee who is a mandatory member participant of
2150 the State University System Optional Retirement Program, an
2151 employee who has elected to participate in the State University
2152 System Optional Retirement Program shall have one opportunity,
2153 at the employee’s discretion, to choose to transfer from this
2154 program to the pension plan or the investment plan defined
2155 benefit program of the Florida Retirement System or to the
2156 Public Employee Optional Retirement Program, subject to the
2157 terms of the applicable contracts of the State University System
2158 Optional Retirement Program.
2159 1. If the employee chooses to move to the investment plan
2160 Public Employee Optional Retirement Program, any contributions,
2161 interest, and earnings creditable to the employee under the
2162 State University System Optional Retirement Program must shall
2163 be retained by the employee in the State University System
2164 Optional Retirement Program, and the applicable provisions of s.
2165 121.4501(4) shall govern the election.
2166 2. If the employee chooses to move to the pension plan
2167 defined benefit program of the Florida Retirement System, the
2168 employee shall receive service credit equal to his or her years
2169 of service under the State University System Optional Retirement
2170 Program.
2171 a. The cost for such credit must be in shall be an amount
2172 representing the actuarial accrued liability for the affected
2173 period of service. The cost must shall be calculated using the
2174 discount rate and other relevant actuarial assumptions that were
2175 used to value the pension Florida Retirement System defined
2176 benefit plan liabilities in the most recent actuarial valuation.
2177 The calculation must shall include any service already
2178 maintained under the pension defined benefit plan in addition to
2179 the years under the State University System Optional Retirement
2180 Program. The actuarial accrued liability of any service already
2181 maintained under the pension defined benefit plan must shall be
2182 applied as a credit to total cost resulting from the
2183 calculation. The division must shall ensure that the transfer
2184 sum is prepared using a formula and methodology certified by an
2185 enrolled actuary.
2186 b. The employee must transfer from his or her State
2187 University System Optional Retirement Program account, and from
2188 other employee moneys as necessary, a sum representing the
2189 actuarial accrued liability immediately following the time of
2190 such movement, determined assuming that attained service equals
2191 the sum of service in the pension plan defined benefit program
2192 and service in the State University System Optional Retirement
2193 Program.
2194 (4) CONTRIBUTIONS.—
2195 (a)1. Through June 30, 2001, each employer shall contribute
2196 on behalf of each member of participant in the optional
2197 retirement program an amount equal to the normal cost portion of
2198 the employer retirement contribution which would be required if
2199 the employee participant were a regular member of the Florida
2200 Retirement System’s pension plan System defined benefit program,
2201 plus the portion of the contribution rate required in s.
2202 112.363(8) that would otherwise be assigned to the Retiree
2203 Health Insurance Subsidy Trust Fund.
2204 2. Effective July 1, 2001, through June 30, 2011, each
2205 employer shall contribute on behalf of each member of
2206 participant in the optional retirement program an amount equal
2207 to 10.43 percent of the employee’s participant’s gross monthly
2208 compensation.
2209 3. Effective July 1, 2011, each member of the optional
2210 retirement program shall contribute an amount equal to the
2211 employee contribution required in s. 121.71(3). The employer
2212 shall contribute on behalf of each such member an amount equal
2213 to the difference between 10.43 percent of the employee’s gross
2214 monthly compensation and the amount equal to the employee’s
2215 required contribution based on the employee’s gross monthly
2216 compensation.
2217 4. The department shall deduct an amount approved by the
2218 Legislature to provide for the administration of this program.
2219 The payment of the contributions, including contributions by the
2220 employee, to the optional program which is required by this
2221 paragraph for each participant shall be made by the employer to
2222 the department, which shall forward the contributions to the
2223 designated company or companies contracting for payment of
2224 benefits for member’s of the participant under the program.
2225 However, such contributions paid on behalf of an employee
2226 described in paragraph (3)(c) may shall not be forwarded to a
2227 company and do shall not begin to accrue interest until the
2228 employee has executed a contract and notified the department.
2229 The department shall deduct an amount from the contributions to
2230 provide for the administration of this program.
2231 (b) Each employer shall contribute on behalf of each member
2232 of participant in the optional retirement program an amount
2233 equal to the unfunded actuarial accrued liability portion of the
2234 employer contribution which would be required for members of the
2235 Florida Retirement System. This contribution shall be paid to
2236 the department for transfer to the Florida Retirement System
2237 Trust Fund.
2238 (c) An Optional Retirement Program Trust Fund shall be
2239 established in the State Treasury and administered by the
2240 department to make payments to the provider companies on behalf
2241 of the optional retirement program members participants, and to
2242 transfer the unfunded liability portion of the state optional
2243 retirement program contributions to the Florida Retirement
2244 System Trust Fund.
2245 (d) Contributions required for social security by each
2246 employer and each employee participant, in the amount required
2247 for social security coverage as now or hereafter may be provided
2248 by the federal Social Security Act, shall be maintained for each
2249 member of participant in the optional retirement program and are
2250 shall be in addition to the retirement contributions specified
2251 in this subsection.
2252 (e) Each member of participant in the optional retirement
2253 program who has executed a contract may contribute by way of
2254 salary reduction or deduction a percentage amount of the
2255 employee’s participant’s gross compensation not to exceed the
2256 percentage amount contributed by the employer to the optional
2257 program, but in no case may such contribution may not exceed
2258 federal limitations. Payment of the employee’s participant’s
2259 contributions shall be made by the financial officer of the
2260 employer to the division which shall forward the contributions
2261 to the designated company or companies contracting for payment
2262 of benefits for members the participant under the program. A
2263 member participant may not make, through salary reduction, any
2264 voluntary employee contributions to any other plan under s.
2265 403(b) of the Internal Revenue Code, with the exception of a
2266 custodial account under s. 403(b)(7) of the Internal Revenue
2267 Code, until he or she has made an employee contribution to his
2268 or her optional program equal to the employer contribution. An
2269 employee A participant is responsible for monitoring his or her
2270 individual tax-deferred income to ensure he or she does not
2271 exceed the maximum deferral amounts permitted under the Internal
2272 Revenue Code.
2273 (f) The Optional Retirement Trust Fund may accept for
2274 deposit into member participant contracts contributions in the
2275 form of rollovers or direct trustee-to-trustee transfers by or
2276 on behalf of members participants who are reasonably determined
2277 by the department to be eligible for rollover or transfer to the
2278 optional retirement program pursuant to the Internal Revenue
2279 Code, if such contributions are made in accordance with rules
2280 adopted by the department. Such contributions shall be accounted
2281 for in accordance with any applicable requirements of the
2282 Internal Revenue Code and department rules of the department.
2283 (g) Effective July 1, 2008, for purposes of paragraph (a)
2284 and notwithstanding s. 121.021(22)(b)1., the term “employee’s
2285 participant’s gross monthly compensation” includes salary
2286 payments made to eligible clinical faculty from a state
2287 university using funds provided by a faculty practice plan
2288 authorized by the Board of Governors of the State University
2289 System if:
2290 1. There is no not any employer contribution from the state
2291 university to any other retirement program with respect to such
2292 salary payments; and
2293 2. The employer contribution on behalf of a member of the
2294 participant in the optional retirement program with respect to
2295 such salary payments is made using funds provided by the faculty
2296 practice plan.
2297 (5) BENEFITS.—
2298 (a) Benefits are payable under the optional retirement
2299 program only to vested members participating participants in the
2300 program, or their beneficiaries as designated by the member
2301 participant in the contract with a provider company, and such
2302 benefits shall be paid only by the designated company in
2303 accordance with s. 403(b) of the Internal Revenue Code and the
2304 terms of the annuity contract or contracts applicable to the
2305 member participant. Benefits accrue in individual accounts that
2306 are member-directed participant-directed, portable, and funded
2307 by employer contributions and the earnings thereon. The member
2308 participant must be terminated for 3 calendar months from all
2309 employment relationships with all Florida Retirement System
2310 employers, as provided in s. 121.021(39), to begin receiving the
2311 employer-funded benefit. Benefits funded by employer
2312 contributions are payable in accordance with the following terms
2313 and conditions:
2314 1. Benefits shall be paid only to a participating member
2315 participant, to his or her beneficiaries, or to his or her
2316 estate, as designated by the member participant.
2317 2. Benefits shall be paid by the provider company or
2318 companies in accordance with the law, the provisions of the
2319 contract, and any applicable department rule or policy.
2320 3. In the event of a member’s participant’s death, moneys
2321 accumulated by, or on behalf of, the member participant, less
2322 withholding taxes remitted to the Internal Revenue Service, if
2323 any, shall be distributed to the member’s participant’s
2324 designated beneficiary or beneficiaries, or to the member’s
2325 participant’s estate, as if the member participant retired on
2326 the date of death, as provided in paragraph (d) (c). No other
2327 death benefits are available to survivors of members
2328 participants under the optional retirement program except for
2329 such benefits, or coverage for such benefits, as are separately
2330 afforded by the employer, at the employer’s discretion.
2331 (b) Benefits are not payable for employee hardships,
2332 unforeseeable emergencies, loans, medical expenses, educational
2333 expenses, purchase of a principal residence, payments necessary
2334 to prevent eviction or foreclosure on an employee’s principal
2335 residence, or any other reason before termination from all
2336 employment relationships with participating employers, as
2337 provided in s. 121.021(39).
2338 (c)(b) Upon receipt by the provider company of a properly
2339 executed application for distribution of benefits, the total
2340 accumulated benefit are shall be payable to the participating
2341 member participant, as:
2342 1. A lump-sum distribution to the member participant;
2343 2. A lump-sum direct rollover distribution whereby all
2344 accrued benefits, plus interest and investment earnings, are
2345 paid from the participant’s account directly to an eligible
2346 retirement plan, as defined in s. 402(c)(8)(B) of the Internal
2347 Revenue Code, on behalf of the member participant;
2348 3. Periodic distributions;
2349 4. A partial lump-sum payment whereby a portion of the
2350 accrued benefit is paid to the member participant and the
2351 remaining amount is transferred to an eligible retirement plan,
2352 as defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
2353 behalf of the member participant; or
2354 5. Such other distribution options as are provided for in
2355 the participant’s optional retirement program contract.
2356 (d)(c) Survivor benefits are shall be payable as:
2357 1. A lump-sum distribution payable to the beneficiaries or
2358 to the deceased member’s participant’s estate;
2359 2. An eligible rollover distribution on behalf of the
2360 surviving spouse of a deceased member participant, whereby all
2361 accrued benefits, plus interest and investment earnings, are
2362 paid from the deceased member’s participant’s account directly
2363 to an eligible retirement plan, as described in s. 402(c)(8)(B)
2364 of the Internal Revenue Code, on behalf of the surviving spouse;
2365 3. Such other distribution options as are provided for in
2366 the member’s participant’s optional retirement program contract;
2367 or
2368 4. A partial lump-sum payment whereby a portion of the
2369 accrued benefit is paid to the deceased member’s participant’s
2370 surviving spouse or other designated beneficiaries, less
2371 withholding taxes remitted to the Internal Revenue Service, if
2372 any, and the remaining amount is transferred directly to an
2373 eligible retirement plan, as described in s. 402(c)(8)(B) of the
2374 Internal Revenue Code, on behalf of the surviving spouse. The
2375 proportions must be specified by the member participant or the
2376 surviving beneficiary.
2377
2378 This paragraph does not abrogate other applicable provisions of
2379 state or federal law providing payment of death benefits.
2380 (e)(d) The benefits payable to any person under the
2381 optional retirement program, and any contribution accumulated
2382 under such program, are shall not be subject to assignment,
2383 execution, or attachment or to any legal process whatsoever.
2384 (f)(e) A participating member participant who chooses to
2385 receive his or her benefits must be terminated for 3 calendar
2386 months to be eligible to receive benefits funded by employer
2387 contributions. The member upon termination as defined in s.
2388 121.021 must notify the provider company of the date he or she
2389 wishes benefits funded by required employer and employee
2390 contributions to begin and must be terminated as defined in s.
2391 121.021 after the initial benefit payment or distribution.
2392 Benefits may be deferred until the member participant chooses to
2393 make such application.
2394 (g)(f) Benefits funded by the participating member’s
2395 voluntary participant’s personal contributions may be paid out
2396 at any time and in any form within the limits provided in the
2397 contract between the member participant and the his or her
2398 provider company. The member participant shall notify the
2399 provider company regarding the date and provisions under which
2400 he or she wants to receive the employee-funded portion of the
2401 plan.
2402 (h)(g) For purposes of this section, “retiree” means a
2403 former participating member participant of the optional
2404 retirement program who has terminated employment and has taken a
2405 distribution as provided in this subsection, except for a
2406 mandatory distribution of a de minimis account authorized by the
2407 department.
2408 Section 21. Section 121.355, Florida Statutes, is amended
2409 to read:
2410 121.355 Community College Optional Retirement Program and
2411 State University System Optional Retirement Program member
2412 transfer.—Effective January 1, 2009, through December 31, 2009,
2413 an employee who is a former member of participant in the
2414 Community College Optional Retirement Program or the State
2415 University System Optional Retirement Program and present
2416 mandatory member of participant in the Florida Retirement
2417 System’s pension System defined benefit plan may receive service
2418 credit equal to his or her years of service under the Community
2419 College Optional Retirement Program or the State University
2420 System Optional Retirement Program under the following
2421 conditions:
2422 (1) The cost for such credit must represent shall be an
2423 amount representing the actuarial accrued liability for the
2424 affected period of service. The cost shall be calculated using
2425 the discount rate and other relevant actuarial assumptions that
2426 were used to value the Florida Retirement System’s pension
2427 System defined benefit plan liabilities in the most recent
2428 actuarial valuation. The calculation must shall include any
2429 service already maintained under the pension defined benefit
2430 plan in addition to the years under the Community College
2431 Optional Retirement Program or the State University System
2432 Optional Retirement Program. The actuarial accrued liability of
2433 any service already maintained under the pension defined benefit
2434 plan shall be applied as a credit to total cost resulting from
2435 the calculation. The division shall ensure that the transfer sum
2436 is prepared using a formula and methodology certified by an
2437 enrolled actuary.
2438 (2) The employee must transfer from his or her Community
2439 College Optional Retirement Program account or State University
2440 System Optional Retirement Program account, subject to the terms
2441 of the applicable optional retirement program contract, and from
2442 other employee moneys as necessary, a sum representing the
2443 actuarial accrued liability immediately following the time of
2444 such movement, determined assuming that attained service equals
2445 the sum of service in the pension plan defined benefit program
2446 and service in the Community College Optional Retirement Program
2447 or State University System Optional Retirement Program.
2448 (3) The employee may not receive service credit for a
2449 period of mandatory participation in the State University
2450 Optional Retirement Program or for a period for which a
2451 distribution was received from the Community College Optional
2452 Retirement Program or State University System Optional
2453 Retirement Program.
2454 Section 22. Section 121.4501, Florida Statutes, is amended
2455 to read:
2456 121.4501 Florida Public Employee Optional Retirement System
2457 Investment Plan Program.—
2458 (1) The Trustees of the State Board of Administration shall
2459 establish a an optional defined contribution retirement program
2460 called the Florida Retirement System Investment Plan for members
2461 of the Florida Retirement System under which retirement benefits
2462 are will be provided for eligible employees initially employed
2463 before July 1, 2011, who elect to enroll participate in the
2464 plan. Enrollment is compulsory for all eligible employees
2465 employed on or after July 1, 2011, except for those who are
2466 eligible to and elect to enroll in an optional retirement
2467 program established under s. 121.055(6), s. 121.35, or s.
2468 1012.875, or those who qualify for special risk membership
2469 pursuant to s. 121.0515 program. The retirement benefits to be
2470 provided for or on behalf of participants in such optional
2471 retirement program shall be provided through employee-directed
2472 investments, in accordance with s. 401(a) of the Internal
2473 Revenue Code and its related regulations. The Employers and
2474 employees shall make contributions contribute, as provided in
2475 this section and, ss. 121.571, and 121.71, to the Florida Public
2476 Employee Optional Retirement System Investment Plan Program
2477 Trust Fund toward the funding of such optional benefits.
2478 (2) DEFINITIONS.—As used in this part, the term:
2479 (a) “Approved provider” or “provider” means a private
2480 sector company that is selected and approved by the state board
2481 to offer one or more investment products or services to the
2482 investment plan optional retirement program. The term includes a
2483 bundled provider that offers plan members participants a range
2484 of individually allocated or unallocated investment products and
2485 may offer a range of administrative and customer services, which
2486 may include accounting and administration of individual member
2487 participant benefits and contributions; individual member
2488 participant recordkeeping; asset purchase, control, and
2489 safekeeping; direct execution of the member’s participant’s
2490 instructions as to asset and contribution allocation;
2491 calculation of daily net asset values; direct access to member
2492 participant account information; periodic reporting to members
2493 participants, at least quarterly, on account balances and
2494 transactions; guidance, advice, and allocation services directly
2495 relating to the provider’s own investment options or products,
2496 but only if the bundled provider complies with the standard of
2497 care of s. 404(a)(1)(A-B) of the Employee Retirement Income
2498 Security Act of 1974 (ERISA) and if providing such guidance,
2499 advice, or allocation services does not constitute a prohibited
2500 transaction under s. 4975(c)(1) of the Internal Revenue Code or
2501 s. 406 of ERISA, notwithstanding that such prohibited
2502 transaction provisions do not apply to the optional retirement
2503 program; a broad array of distribution options; asset
2504 allocation; and retirement counseling and education. Private
2505 sector companies include investment management companies,
2506 insurance companies, depositories, and mutual fund companies.
2507 (b) “Average monthly compensation” means one-twelfth of
2508 average final compensation as defined in s. 121.021.
2509 (c) “Covered employment” means employment in a regularly
2510 established position as defined in s. 121.021.
2511 (d) “Defined benefit program” means the defined benefit
2512 program of the Florida Retirement System administered under part
2513 I of this chapter.
2514 (e) “Division” means the Division of Retirement within the
2515 department.
2516 (d)(f) “Electronic means” means by telephone, if the
2517 required information is received on a recorded line, or through
2518 Internet access, if the required information is captured online.
2519 (g) “Eligible employee” means an officer or employee, as
2520 defined in s. 121.021, who:
2521 1. Is a member of, or is eligible for membership in, the
2522 Florida Retirement System, including any renewed member of the
2523 Florida Retirement System initially enrolled before July 1,
2524 2010; or
2525 2. Participates in, or is eligible to participate in, the
2526 Senior Management Service Optional Annuity Program as
2527 established under s. 121.055(6), the State Community College
2528 System Optional Retirement Program as established under s.
2529 121.051(2)(c), or the State University System Optional
2530 Retirement Program established under s. 121.35.
2531
2532 The term does not include any member participating in the
2533 Deferred Retirement Option Program established under s.
2534 121.091(13), a retiree of a state-administered retirement system
2535 initially reemployed on or after July 1, 2010, or a mandatory
2536 participant of the State University System Optional Retirement
2537 Program established under s. 121.35.
2538 (e)(h) “Employer” means an employer, as defined in s.
2539 121.021, of an eligible employee.
2540 (f) “Florida Retirement System Investment Plan” or
2541 “investment plan” means the defined contribution program of the
2542 Florida Retirement System established under this part.
2543 (g) “Florida Retirement System Pension Plan” or pension
2544 plan” means the defined benefit program of the Florida
2545 Retirement System administered under part I of this chapter.
2546 (i) “Optional retirement program” or “optional program”
2547 means the Public Employee Optional Retirement Program
2548 established under this part.
2549 (h)(j) “Member” or “employee” “participant” means an
2550 eligible employee who is enrolled enrolls in the investment plan
2551 optional program as provided in subsection (4), or a terminated
2552 Deferred Retirement Option Program member participant as
2553 described in subsection (21), or a beneficiary or alternate
2554 payee of a member or employee.
2555 (i) “Member contributions” or “employee contributions” mean
2556 the sum of all amounts deducted from the salary of a member by
2557 his or her employer in accordance with s. 121.71(2) and credited
2558 to his or her individual account in the investment plan, plus
2559 any earnings on such amounts and any contributions specified in
2560 paragraph (5)(e).
2561 (j)(k) “Retiree” means a former member participant of the
2562 investment plan optional retirement program who has terminated
2563 employment and has taken a distribution of vested employer or
2564 employee contributions as provided in s. 121.591, except for a
2565 mandatory distribution of a de minimis account authorized by the
2566 state board.
2567 (k)(l) “Vested” or “vesting” means the guarantee that a
2568 member participant is eligible to receive a retirement benefit
2569 upon completion of the required years of service under the
2570 investment plan optional retirement program.
2571 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
2572 BENEFITS.—
2573 (a) Participation in the Public Employee Optional
2574 Retirement Program is limited to eligible employees.
2575 Participation in the optional retirement program is in lieu of
2576 participation in the defined benefit program of the Florida
2577 Retirement System.
2578 (a)(b) An eligible employee who is employed in a regularly
2579 established position by a state employer on June 1, 2002; by a
2580 district school board employer on September 1, 2002; or by a
2581 local employer on December 1, 2002, and who is a member of the
2582 pension plan defined benefit retirement program of the Florida
2583 Retirement System at the time of his or her election to enroll
2584 participate in the investment plan Public Employee Optional
2585 Retirement Program shall retain all retirement service credit
2586 earned under the pension plan defined benefit retirement program
2587 of the Florida Retirement System as credited under the Florida
2588 Retirement System and is shall be entitled to a deferred benefit
2589 upon termination, if eligible under the system. However,
2590 election to enroll participate in the investment plan Public
2591 Employee Optional Retirement Program terminates the active
2592 membership of the employee in the pension plan defined benefit
2593 program of the Florida Retirement System, and the service of a
2594 member of participant in the investment plan is Public Employee
2595 Optional Retirement Program shall not be creditable under the
2596 pension plan defined benefit retirement program of the Florida
2597 Retirement System for purposes of benefit accrual but is
2598 creditable shall be credited for purposes of vesting.
2599 (b)(c)1. Notwithstanding paragraph (a), an (b), each
2600 eligible employee who elects to enroll participate in the
2601 investment plan Public Employee Optional Retirement Program and
2602 establishes one or more individual member participant accounts
2603 under the optional program may elect to transfer to the
2604 investment plan optional program a sum representing the present
2605 value of the employee’s accumulated benefit obligation under the
2606 pension plan defined benefit retirement program of the Florida
2607 Retirement System. Upon such transfer, all service credit
2608 previously earned under the pension plan is defined benefit
2609 program of the Florida Retirement System shall be nullified for
2610 purposes of entitlement to a future benefit under the pension
2611 plan defined benefit program of the Florida Retirement System. A
2612 member may not transfer participant is precluded from
2613 transferring the accumulated benefit obligation balance from the
2614 pension plan after the time defined benefit program upon the
2615 expiration of the period for enrolling afforded to enroll in the
2616 investment plan optional program.
2617 1.2. For purposes of this subsection, the present value of
2618 the member’s accumulated benefit obligation is based upon the
2619 member’s estimated creditable service and estimated average
2620 final compensation under the pension plan defined benefit
2621 program, subject to recomputation under subparagraph 2. 3. For
2622 state employees enrolling under subparagraph (4)(a)1., initial
2623 estimates shall will be based upon creditable service and
2624 average final compensation as of midnight on June 30, 2002; for
2625 district school board employees enrolling under subparagraph
2626 (4)(b)1., initial estimates shall will be based upon creditable
2627 service and average final compensation as of midnight on
2628 September 30, 2002; and for local government employees enrolling
2629 under subparagraph (4)(c)1., initial estimates shall will be
2630 based upon creditable service and average final compensation as
2631 of midnight on December 31, 2002. The dates respectively
2632 specified are above shall be construed as the “estimate date”
2633 for these employees. The actuarial present value of the
2634 employee’s accumulated benefit obligation shall be based on the
2635 following:
2636 a. The discount rate and other relevant actuarial
2637 assumptions used to value the Florida Retirement System Trust
2638 Fund at the time the amount to be transferred is determined,
2639 consistent with the factors provided in sub-subparagraphs b. and
2640 c.
2641 b. A benefit commencement age, based on the member’s
2642 estimated creditable service as of the estimate date. The
2643 benefit commencement age is shall be the younger of the
2644 following, but may shall not be younger than the member’s age as
2645 of the estimate date:
2646 (I) Age 62; or
2647 (II) The age the member would attain if the member
2648 completed 30 years of service with an employer, assuming the
2649 member worked continuously from the estimate date, and
2650 disregarding any vesting requirement that would otherwise apply
2651 under the pension plan defined benefit program of the Florida
2652 Retirement System.
2653 c. For members of the Special Risk Class, and for members
2654 of the Special Risk Administrative Support Class entitled to
2655 retain the special risk normal retirement date, the benefit
2656 commencement age is shall be the younger of the following, but
2657 may shall not be younger than the member’s age as of the
2658 estimate date:
2659 (I) Age 55 or, for members enrolled on or after July 1,
2660 2011, age 62; or
2661 (II) The age the member would attain if the member
2662 completed 25 years of service with an employer, or, for members
2663 enrolled on or after July 1, 2011, 30 years of service with an
2664 employer, assuming the member worked continuously from the
2665 estimate date, and disregarding any vesting requirement that
2666 would otherwise apply under the pension plan defined benefit
2667 program of the Florida Retirement System.
2668 d. The calculation must shall disregard vesting
2669 requirements and early retirement reduction factors that would
2670 otherwise apply under the pension plan defined benefit
2671 retirement program.
2672 2.3. For each member participant who elects to transfer
2673 moneys from the pension plan defined benefit program to his or
2674 her account in the investment plan optional program, the
2675 division shall recompute the amount transferred under
2676 subparagraph 1. within 2. not later than 60 days after the
2677 actual transfer of funds based upon the member’s participant’s
2678 actual creditable service and actual final average compensation
2679 as of the initial date of participation in the investment plan
2680 optional program. If the recomputed amount differs from the
2681 amount transferred under subparagraph 2. by $10 or more, the
2682 division shall:
2683 a. Transfer, or cause to be transferred, from the Florida
2684 Retirement System Trust Fund to the member’s participant’s
2685 account in the optional program the excess, if any, of the
2686 recomputed amount over the previously transferred amount
2687 together with interest from the initial date of transfer to the
2688 date of transfer under this subparagraph, based upon the
2689 effective annual interest equal to the assumed return on the
2690 actuarial investment which was used in the most recent actuarial
2691 valuation of the system, compounded annually.
2692 b. Transfer, or cause to be transferred, from the member’s
2693 participant’s account to the Florida Retirement System Trust
2694 Fund the excess, if any, of the previously transferred amount
2695 over the recomputed amount, together with interest from the
2696 initial date of transfer to the date of transfer under this
2697 subparagraph, based upon 6 percent effective annual interest,
2698 compounded annually, pro rata based on the member’s
2699 participant’s allocation plan.
2700 3. If contribution adjustments are made as a result of
2701 employer errors or corrections, including plan corrections,
2702 following recomputation of the amount transferred under
2703 subparagraph 1., the member is entitled to the additional
2704 contributions or is responsible for returning any excess
2705 contributions resulting from the correction. However, the return
2706 of such erroneous excess pretax contribution by the plan must be
2707 made within the period allowed by the Internal Revenue Service.
2708 The present value of the member’s accumulated benefit obligation
2709 may not be recalculated.
2710 4. As directed by the member participant, the state board
2711 shall transfer or cause to be transferred the appropriate
2712 amounts to the designated accounts within. The board shall
2713 establish transfer procedures by rule, but the actual transfer
2714 shall not be later than 30 days after the effective date of the
2715 member’s participation in the investment plan optional program
2716 unless the major financial markets for securities available for
2717 a transfer are seriously disrupted by an unforeseen event that
2718 which also causes the suspension of trading on any national
2719 securities exchange in the country where the securities are were
2720 issued. In that event, the such 30-day period of time may be
2721 extended by a resolution of the state board trustees. Transfers
2722 are not commissionable or subject to other fees and may be in
2723 the form of securities or cash, as determined by the state
2724 board. Such securities are shall be valued as of the date of
2725 receipt in the member’s participant’s account.
2726 5. If the state board or the division receives notification
2727 from the United States Internal Revenue Service that this
2728 paragraph or any portion of this paragraph will cause the
2729 retirement system, or a portion thereof, to be disqualified for
2730 tax purposes under the Internal Revenue Code, then the portion
2731 that will cause the disqualification does not apply. Upon such
2732 notice, the state board and the division shall notify the
2733 presiding officers of the Legislature.
2734 (4) PARTICIPATION; ENROLLMENT.—
2735 (a)1. Between June 1, 2001, and February 28, 2003, eligible
2736 employees were provided a 90-day period to elect membership in
2737 the investment plan. An employee who failed to elect the
2738 investment plan during the election period remained in the
2739 pension plan. An eligible employee who was employed in a
2740 regularly established position during the election period was
2741 also provided one opportunity to change plans, as provided under
2742 paragraph (e). With respect to an eligible employee who did not
2743 participate in the initial election period and an eligible
2744 employee who is initially employed in a regularly established
2745 position after the close of the initial election period but
2746 before June 30, 2011, the on June 1, 2002, by a state employer:
2747 a. Any such employee may elect to participate in the Public
2748 Employee Optional Retirement Program in lieu of retaining his or
2749 her membership in the defined benefit program of the Florida
2750 Retirement System. The election must be made in writing or by
2751 electronic means and must be filed with the third-party
2752 administrator by August 31, 2002, or, in the case of an active
2753 employee who is on a leave of absence on April 1, 2002, by the
2754 last business day of the 5th month following the month the leave
2755 of absence concludes. This election is irrevocable, except as
2756 provided in paragraph (e). Upon making such election, the
2757 employee shall be enrolled as a participant of the Public
2758 Employee Optional Retirement Program, the employee’s membership
2759 in the Florida Retirement System shall be governed by the
2760 provisions of this part, and the employee’s membership in the
2761 defined benefit program of the Florida Retirement System shall
2762 terminate. The employee’s enrollment in the Public Employee
2763 Optional Retirement Program shall be effective the first day of
2764 the month for which a full month’s employer contribution is made
2765 to the optional program.
2766 b. Any such employee who fails to elect to participate in
2767 the Public Employee Optional Retirement Program within the
2768 prescribed time period is deemed to have elected to retain
2769 membership in the defined benefit program of the Florida
2770 Retirement System, and the employee’s option to elect to
2771 participate in the optional program is forfeited.
2772 2. With respect to employees who become eligible to
2773 participate in the Public Employee Optional Retirement Program
2774 by reason of employment in a regularly established position with
2775 a state employer commencing after April 1, 2002:
2776 a. Any such employee shall, by default, be enrolled in the
2777 pension plan defined benefit retirement program of the Florida
2778 Retirement System at the commencement of employment, and may, by
2779 the last business day of the 5th month following the employee’s
2780 month of hire, elect to enroll participate in the investment
2781 plan Public Employee Optional Retirement Program. The employee’s
2782 election must be made in writing or by electronic means and must
2783 be filed with the third-party administrator. The election to
2784 enroll participate in the investment plan optional program is
2785 irrevocable, except as provided in paragraph (e).
2786 1.b. If the employee files such election within the
2787 prescribed time period, enrollment in the investment plan is
2788 optional program shall be effective on the first day of
2789 employment. The employer and employee retirement contributions
2790 paid through the month of the employee plan change shall be
2791 transferred to the investment plan optional program, and,
2792 effective the first day of the next month, the employer and
2793 employee must shall pay the applicable contributions based on
2794 the employee membership class in the plan optional program.
2795 2.c. An Any such employee who fails to elect to enroll
2796 participate in the investment plan Public Employee Optional
2797 Retirement Program within the prescribed time period is deemed
2798 to have elected to retain membership in the pension plan defined
2799 benefit program of the Florida Retirement System, and the
2800 employee’s option to elect to enroll participate in the
2801 investment plan optional program is forfeited.
2802 3. With respect to employees who become eligible to enroll
2803 participate in the investment plan Public Employee Optional
2804 Retirement Program pursuant to s. 121.051(2)(c)3. or s.
2805 121.35(3)(i), the any such employee may elect to enroll
2806 participate in the investment plan Public Employee Optional
2807 Retirement Program in lieu of retaining his or her participation
2808 in the State Community College System Optional Retirement
2809 Program or the State University System Optional Retirement
2810 Program. The election must be made in writing or by electronic
2811 means and must be filed with the third-party administrator. This
2812 election is irrevocable, except as provided in paragraph (e).
2813 Upon making such election, the employee shall be enrolled in as
2814 a participant of the investment plan Public Employee Optional
2815 Retirement Program, the employee’s membership in the Florida
2816 Retirement System shall be governed by the provisions of this
2817 part, and the employee’s participation in the State Community
2818 College System Optional Retirement Program or the State
2819 University System Optional Retirement Program shall terminate.
2820 The employee’s enrollment in the investment plan is Public
2821 Employee Optional Retirement Program shall be effective on the
2822 first day of the month for which a full month’s of employee
2823 contributions are employer contribution is made to the
2824 investment plan optional program.
2825 4. For purposes of this paragraph, “state employer” means
2826 any agency, board, branch, commission, community college,
2827 department, institution, institution of higher education, or
2828 water management district of the state, which participates in
2829 the Florida Retirement System for the benefit of certain
2830 employees.
2831 (b)1. With respect to an eligible employee who is employed
2832 in a regularly established position on September 1, 2002, by a
2833 district school board employer:
2834 a. Any such employee may elect to participate in the Public
2835 Employee Optional Retirement Program in lieu of retaining his or
2836 her membership in the defined benefit program of the Florida
2837 Retirement System. The election must be made in writing or by
2838 electronic means and must be filed with the third-party
2839 administrator by November 30, or, in the case of an active
2840 employee who is on a leave of absence on July 1, 2002, by the
2841 last business day of the 5th month following the month the leave
2842 of absence concludes. This election is irrevocable, except as
2843 provided in paragraph (e). Upon making such election, the
2844 employee shall be enrolled as a participant of the Public
2845 Employee Optional Retirement Program, the employee’s membership
2846 in the Florida Retirement System shall be governed by the
2847 provisions of this part, and the employee’s membership in the
2848 defined benefit program of the Florida Retirement System shall
2849 terminate. The employee’s enrollment in the Public Employee
2850 Optional Retirement Program shall be effective the first day of
2851 the month for which a full month’s employer contribution is made
2852 to the optional program.
2853 b. Any such employee who fails to elect to participate in
2854 the Public Employee Optional Retirement Program within the
2855 prescribed time period is deemed to have elected to retain
2856 membership in the defined benefit program of the Florida
2857 Retirement System, and the employee’s option to elect to
2858 participate in the optional program is forfeited.
2859 2. With respect to employees who become eligible to
2860 participate in the Public Employee Optional Retirement Program
2861 by reason of employment in a regularly established position with
2862 a district school board employer commencing after July 1, 2002:
2863 a. Any such employee shall, by default, be enrolled in the
2864 defined benefit retirement program of the Florida Retirement
2865 System at the commencement of employment, and may, by the last
2866 business day of the 5th month following the employee’s month of
2867 hire, elect to participate in the Public Employee Optional
2868 Retirement Program. The employee’s election must be made in
2869 writing or by electronic means and must be filed with the third
2870 party administrator. The election to participate in the optional
2871 program is irrevocable, except as provided in paragraph (e).
2872 b. If the employee files such election within the
2873 prescribed time period, enrollment in the optional program shall
2874 be effective on the first day of employment. The employer
2875 retirement contributions paid through the month of the employee
2876 plan change shall be transferred to the optional program, and,
2877 effective the first day of the next month, the employer shall
2878 pay the applicable contributions based on the employee
2879 membership class in the optional program.
2880 c. Any such employee who fails to elect to participate in
2881 the Public Employee Optional Retirement Program within the
2882 prescribed time period is deemed to have elected to retain
2883 membership in the defined benefit program of the Florida
2884 Retirement System, and the employee’s option to elect to
2885 participate in the optional program is forfeited.
2886 3. For purposes of this paragraph, “district school board
2887 employer” means any district school board that participates in
2888 the Florida Retirement System for the benefit of certain
2889 employees, or a charter school or charter technical career
2890 center that participates in the Florida Retirement System as
2891 provided in s. 121.051(2)(d).
2892 (c)1. With respect to an eligible employee who is employed
2893 in a regularly established position on December 1, 2002, by a
2894 local employer:
2895 a. Any such employee may elect to participate in the Public
2896 Employee Optional Retirement Program in lieu of retaining his or
2897 her membership in the defined benefit program of the Florida
2898 Retirement System. The election must be made in writing or by
2899 electronic means and must be filed with the third-party
2900 administrator by February 28, 2003, or, in the case of an active
2901 employee who is on a leave of absence on October 1, 2002, by the
2902 last business day of the 5th month following the month the leave
2903 of absence concludes. This election is irrevocable, except as
2904 provided in paragraph (e). Upon making such election, the
2905 employee shall be enrolled as a participant of the Public
2906 Employee Optional Retirement Program, the employee’s membership
2907 in the Florida Retirement System shall be governed by the
2908 provisions of this part, and the employee’s membership in the
2909 defined benefit program of the Florida Retirement System shall
2910 terminate. The employee’s enrollment in the Public Employee
2911 Optional Retirement Program shall be effective the first day of
2912 the month for which a full month’s employer contribution is made
2913 to the optional program.
2914 b. Any such employee who fails to elect to participate in
2915 the Public Employee Optional Retirement Program within the
2916 prescribed time period is deemed to have elected to retain
2917 membership in the defined benefit program of the Florida
2918 Retirement System, and the employee’s option to elect to
2919 participate in the optional program is forfeited.
2920 2. With respect to employees who become eligible to
2921 participate in the Public Employee Optional Retirement Program
2922 by reason of employment in a regularly established position with
2923 a local employer commencing after October 1, 2002:
2924 a. Any such employee shall, by default, be enrolled in the
2925 defined benefit retirement program of the Florida Retirement
2926 System at the commencement of employment, and may, by the last
2927 business day of the 5th month following the employee’s month of
2928 hire, elect to participate in the Public Employee Optional
2929 Retirement Program. The employee’s election must be made in
2930 writing or by electronic means and must be filed with the third
2931 party administrator. The election to participate in the optional
2932 program is irrevocable, except as provided in paragraph (e).
2933 b. If the employee files such election within the
2934 prescribed time period, enrollment in the optional program shall
2935 be effective on the first day of employment. The employer
2936 retirement contributions paid through the month of the employee
2937 plan change shall be transferred to the optional program, and,
2938 effective the first day of the next month, the employer shall
2939 pay the applicable contributions based on the employee
2940 membership class in the optional program.
2941 c. Any such employee who fails to elect to participate in
2942 the Public Employee Optional Retirement Program within the
2943 prescribed time period is deemed to have elected to retain
2944 membership in the defined benefit program of the Florida
2945 Retirement System, and the employee’s option to elect to
2946 participate in the optional program is forfeited.
2947 3. For purposes of this paragraph, “local employer” means
2948 any employer not included in paragraph (a) or paragraph (b).
2949 (b)(d) Contributions available for self-direction by a
2950 member participant who has not selected one or more specific
2951 investment products shall be allocated as prescribed by the
2952 state board. The third-party administrator shall notify the
2953 member any such participant at least quarterly that the member
2954 participant should take an affirmative action to make an asset
2955 allocation among the investment plan optional program products.
2956 (c) On or after July 1, 2011, a member of the pension plan
2957 who obtains a refund of employee contributions retains his or
2958 her prior plan choice upon return to employment in a regularly
2959 established position with a participating employer.
2960 (d) A member of the investment plan who takes a
2961 distribution of any contributions from his investment plan
2962 account is considered a retiree. Upon reemployment in a
2963 regularly established position with a participating employer,
2964 the member returns as a new hire and, if applicable, may
2965 participate in the Florida Retirement System.
2966 (e) After the period during which an eligible employee had
2967 the choice to elect the pension plan defined benefit program or
2968 the investment plan optional retirement program, or the month
2969 following the receipt of the eligible employee’s plan election,
2970 if sooner, the employee shall have one opportunity, at the
2971 employee’s discretion, to choose to move from the pension plan
2972 defined benefit program to the investment plan optional
2973 retirement program or from the investment plan optional
2974 retirement program to the pension plan defined benefit program.
2975 Eligible employees may elect to move between Florida Retirement
2976 System programs only if they are earning service credit in an
2977 employer-employee relationship consistent with s.
2978 121.021(17)(b), excluding leaves of absence without pay.
2979 Effective July 1, 2005, such elections are effective on the
2980 first day of the month following the receipt of the election by
2981 the third-party administrator and are not subject to the
2982 requirements regarding an employer-employee relationship or
2983 receipt of contributions for the eligible employee in the
2984 effective month, except when the election is received by the
2985 third-party administrator. This paragraph is contingent upon
2986 receiving approval from the Internal Revenue Service to include
2987 for including the choice described herein within the programs
2988 offered by the Florida Retirement System.
2989 1. If the employee chooses to move to the investment plan
2990 optional retirement program, the applicable provisions of
2991 subsection (3) this section shall govern the transfer.
2992 2. If the employee chooses to move to the pension plan
2993 defined benefit program, the employee must transfer from his or
2994 her investment plan optional retirement program account, and
2995 from other employee moneys as necessary, a sum representing the
2996 present value of that employee’s accumulated benefit obligation
2997 immediately following the time of such movement, determined
2998 assuming that attained service equals the sum of service in the
2999 pension plan defined benefit program and service in the
3000 investment plan optional retirement program. Benefit
3001 commencement occurs on the first date the employee is eligible
3002 for unreduced benefits, using the discount rate and other
3003 relevant actuarial assumptions that were used to value the
3004 pension defined benefit plan liabilities in the most recent
3005 actuarial valuation. For any employee who, at the time of the
3006 second election, already maintains an accrued benefit amount in
3007 the pension plan defined benefit program, the then-present value
3008 of the accrued benefit shall be deemed part of the required
3009 transfer amount. The division shall ensure that the transfer sum
3010 is prepared using a formula and methodology certified by an
3011 enrolled actuary. A refund of any employee contributions or
3012 additional member payments made which exceed the employee
3013 contributions that would have accrued had the member remained in
3014 the pension plan and not transferred to the investment plan is
3015 not permitted.
3016 3. Notwithstanding subparagraph 2., an employee who chooses
3017 to move to the pension plan defined benefit program and who
3018 became eligible to participate in the optional retirement
3019 program by reason of employment in a regularly established
3020 position with a state employer after June 1, 2002; a district
3021 school board employer after September 1, 2002; or a local
3022 employer after December 1, 2002, must transfer from his or her
3023 investment plan optional retirement program account, and from
3024 other employee moneys as necessary, a sum representing the
3025 employee’s actuarial accrued liability. A refund of any employee
3026 contributions or additional participant payments made which
3027 exceed the employee contributions that would have accrued had
3028 the member remained in the pension plan and not transferred to
3029 the investment plan is not permitted.
3030 4. An employee’s ability to transfer from the pension plan
3031 defined benefit program to the investment plan optional
3032 retirement program pursuant to paragraphs (a) and (b) (a)-(d),
3033 and the ability of a current employee to have an option to later
3034 transfer back into the pension plan defined benefit program
3035 under subparagraph 2., shall be deemed a significant system
3036 amendment. Pursuant to s. 121.031(4), any resulting unfunded
3037 liability arising from actual original transfers from the
3038 pension plan defined benefit program to the investment plan
3039 optional program must be amortized within 30 plan years as a
3040 separate unfunded actuarial base independent of the reserve
3041 stabilization mechanism defined in s. 121.031(3)(f). For the
3042 first 25 years, a direct amortization payment may not be
3043 calculated for this base. During this 25-year period, the
3044 separate base shall be used to offset the impact of employees
3045 exercising their second program election under this paragraph.
3046 It is the intent of the Legislature that the actuarial funded
3047 status of the pension plan defined benefit program not be
3048 affected by such second program elections in any significant
3049 manner, after due recognition of the separate unfunded actuarial
3050 base. Following the initial 25-year period, any remaining
3051 balance of the original separate base shall be amortized over
3052 the remaining 5 years of the required 30-year amortization
3053 period.
3054 5. If the employee chooses to transfer from the investment
3055 plan optional retirement program to the pension plan defined
3056 benefit program and retains an excess account balance in the
3057 investment plan optional program after satisfying the buy-in
3058 requirements under this paragraph, the excess may not be
3059 distributed until the member retires from the pension plan
3060 defined benefit program. The excess account balance may be
3061 rolled over to the pension plan defined benefit program and used
3062 to purchase service credit or upgrade creditable service in that
3063 program.
3064 (f) On or after July 1, 2011, a member of the pension plan
3065 who obtains a refund of employee contributions retains his or
3066 her prior plan choice upon return to employment in a regularly
3067 established position with a participating employer.
3068 (g) A member of the investment plan who takes a
3069 distribution of any contributions from his or her investment
3070 plan account is considered a retiree. Upon reemployment in a
3071 regularly established position with a participating employer,
3072 the member returns as a new hire and, if applicable, may
3073 participate in the Florida Retirement System.
3074 (h) All eligible employees initially enrolled on or after
3075 July 1, 2011, except those who are eligible to and elect to
3076 enroll in an optional retirement program established under s.
3077 121.055(6), s. 121.35, or s. 1012.875, or those who qualify for
3078 special risk membership pursuant to s. 121.0515, are compulsory
3079 members of the investment plan and membership in the pension
3080 plan is not permitted except as provided in s. 121.591. Such
3081 employees may not use the election opportunity specified in
3082 paragraph (e).
3083 (5) CONTRIBUTIONS.—
3084 (a) The Each employer and employee shall make the required
3085 contributions to the investment plan based on a percentage of
3086 the employee’s gross monthly compensation contribute on behalf
3087 of each participant in the Public Employee optional retirement
3088 Program, as provided in part III of this chapter.
3089 (b) Employee contributions shall be paid on a pretax basis,
3090 as provided in s. 121.71(2).
3091 (c) The state board, acting as plan fiduciary, shall ensure
3092 that all plan assets are held in a trust, pursuant to s. 401 of
3093 the Internal Revenue Code. The fiduciary shall ensure that said
3094 contributions are allocated as follows:
3095 1. The employer and employee portion earmarked for member
3096 participant accounts shall be used to purchase interests in the
3097 appropriate investment vehicles for the accounts of each
3098 participant as specified by the member participant, or in
3099 accordance with paragraph (4)(b) (4)(d).
3100 2. The employer portion earmarked for administrative and
3101 educational expenses shall be transferred to the state board.
3102 3. The employer portion earmarked for disability benefits
3103 shall be transferred to the department.
3104 (d)(b) The third-party administrator is Employers are
3105 responsible for monitoring and notifying employers of the
3106 participants regarding maximum contribution levels allowed for
3107 members permitted under the Internal Revenue Code. If a member
3108 participant contributes to any other tax-deferred plan, the
3109 member he or she is responsible for ensuring that total
3110 contributions made to the investment plan optional program and
3111 to any other such plan do not exceed federally permitted
3112 maximums.
3113 (e)(c) The investment plan Public Employee Optional
3114 Retirement Program may accept for deposit into member
3115 participant accounts contributions in the form of rollovers or
3116 direct trustee-to-trustee transfers by or on behalf of members
3117 participants, reasonably determined by the state board to be
3118 eligible for rollover or transfer to the investment plan
3119 optional retirement program pursuant to the Internal Revenue
3120 Code, if such contributions are made in accordance with rules as
3121 may be adopted by the board. Such contributions must shall be
3122 accounted for in accordance with any applicable Internal Revenue
3123 Code requirements and rules of the state board.
3124 (6) VESTING REQUIREMENTS.—
3125 (a) A member is fully and immediately vested in all
3126 employee contributions paid to the investment plan as provided
3127 in s. 121.72(2), plus interest and earnings thereon and less
3128 investment fees and administrative charges.
3129 (b)(a)1. With respect to employer contributions paid on
3130 behalf of a member of the participant to the investment plan
3131 optional retirement program, plus interest and earnings thereon
3132 and less investment fees and administrative charges, a member
3133 who voluntarily elected to enroll in the investment plan before
3134 July 1, 2011, or an eligible employee initially enrolled in the
3135 Florida Retirement System before July 1, 2011, who has the
3136 option to voluntarily elect to enroll in the investment plan,
3137 participant is vested after completing 1 work year with an
3138 employer, including any service while the employee participant
3139 was a member of the pension plan defined benefit program or an
3140 optional retirement program authorized under s. 121.051(2)(c),
3141 or s. 121.055(6), or s. 121.35.
3142 2. With respect to employer contributions paid on behalf of
3143 the member of the investment plan, plus interest and earnings
3144 thereon and less investment fees and administrative charges, an
3145 employee initially enrolled in the Florida Retirement System on
3146 or after July 1, 2011, is vested according to the following
3147 schedule:
3148 a. Upon completion of 1 year of service.................20%
3149 b. Upon completion of 2 years of service................40%
3150 c. Upon completion of 3 years of service................60%
3151 d. Upon completion of 4 years of service................80%
3152 e. Upon completion of 5 or more years of service.......100%
3153
3154 Years of service includes any service completed while the
3155 employee was a member of the pension plan or an optional
3156 retirement program authorized under s. 121.051(2)(c), s.
3157 121.055(6), or s. 121.35.
3158 3.2. If the member participant terminates employment before
3159 satisfying the vesting requirements, the nonvested accumulation
3160 must be transferred from the member’s participant’s accounts to
3161 the state board for deposit and investment by the state board in
3162 the suspense account created within the Florida Public Employee
3163 Optional Retirement System Investment Plan Program Trust Fund.
3164 If the terminated member participant is reemployed as an
3165 eligible employee within 5 years, the state board shall transfer
3166 to the member’s participant’s account any amount previously
3167 transferred from the member’s participant’s accounts to the
3168 suspense account, plus actual earnings on such amount while in
3169 the suspense account.
3170 (c)(b)1. With respect to amounts contributed by an employer
3171 and transferred from the pension plan defined benefit program to
3172 the investment plan program, plus interest and earnings, and
3173 less investment fees and administrative charges, a member
3174 participant shall be vested in the amount transferred upon
3175 meeting the service requirements for the member’s participant’s
3176 membership class as set forth in s. 121.021(29). The third-party
3177 administrator shall account for such amounts for each member
3178 participant. The division shall notify the member participant
3179 and the third-party administrator when the member participant
3180 has satisfied the vesting period for Florida Retirement System
3181 purposes.
3182 2. If the member participant terminates employment before
3183 satisfying the vesting requirements, the nonvested employer
3184 accumulation must be transferred from the member’s participant’s
3185 accounts to the state board for deposit and investment by the
3186 state board in the suspense account created within the Florida
3187 Public Employee Optional Retirement System Investment Plan
3188 Program Trust Fund. If the terminated member participant is
3189 reemployed as an eligible employee within 5 years, the state
3190 board shall transfer to the member’s participant’s account any
3191 amount previously transferred from the member’s participant’s
3192 accounts to the suspense account, plus the actual earnings on
3193 such amount while in the suspense account.
3194 (d)(c) Any nonvested accumulations transferred from a
3195 member’s participant’s account to the state board’s suspense
3196 account, including any accompanying service credit, shall be
3197 forfeited by the member participant if the member participant is
3198 not reemployed as an eligible employee within 5 years after
3199 termination.
3200 (e) If the member elects to receive any of his or her
3201 vested employer or employee contributions upon termination of
3202 employment as defined in s. 121.021, except for a mandatory
3203 distribution of a de minimis account authorized by the state
3204 board or a minimum required distribution provided by s.
3205 401(a)(9) of the Internal Revenue Code, the employee shall
3206 forfeit all nonvested employer contributions and accompanying
3207 service credit paid on behalf of the employee to the investment
3208 plan.
3209 (7) BENEFITS.—Under the investment plan the normal
3210 retirement date is the date on which a member attains age 62 or
3211 completes 5 years of service, whichever occurs later. Plan
3212 benefits must Public Employee Optional Retirement program:
3213 (a) Benefits shall Be provided in accordance with s. 401(a)
3214 of the Internal Revenue Code.
3215 (b) Benefits shall Accrue in individual accounts that are
3216 member-directed participant-directed, portable, and funded by
3217 employer and employee contributions and earnings thereon.
3218 (c) Benefits shall Be payable in accordance with the
3219 provisions of s. 121.591.
3220 (8) ADMINISTRATION OF PLAN PROGRAM.—
3221 (a) The investment plan optional retirement program shall
3222 be administered by the state board and affected employers. The
3223 state board may require oaths, by affidavit or otherwise, and
3224 acknowledgments from persons in connection with the
3225 administration of its statutory duties and responsibilities for
3226 the plan this program. An oath, by affidavit or otherwise, may
3227 not be required of an employee participant at the time of
3228 enrollment. For members enrolled before July 1, 2011,
3229 acknowledgment of an employee’s election to enroll participate
3230 in the plan may program shall be no greater than necessary to
3231 confirm the employee’s election. The state board shall adopt
3232 rules to carry out its statutory duties with respect to
3233 administering the investment plan optional retirement program,
3234 including establishing the roles and responsibilities of
3235 affected state, local government, and education-related
3236 employers, the state board, the department, and third-party
3237 contractors. The department shall adopt rules necessary to
3238 administer the investment plan optional program in coordination
3239 with the pension plan defined benefit program and the disability
3240 benefits available under the investment plan optional program.
3241 (a)(b)1. The state board shall select and contract with a
3242 one third-party administrator to provide administrative services
3243 if those services cannot be competitively and contractually
3244 provided by the division of Retirement within the Department of
3245 Management Services. With the approval of the state board, the
3246 third-party administrator may subcontract with other
3247 organizations or individuals to provide components of the
3248 administrative services. As a cost of administration, the state
3249 board may compensate any such contractor for its services, in
3250 accordance with the terms of the contract, as is deemed
3251 necessary or proper by the board. The third-party administrator
3252 may not be an approved provider or be affiliated with an
3253 approved provider.
3254 2. These administrative services may include, but are not
3255 limited to, enrollment of eligible employees, collection of
3256 employer and employee contributions, disbursement of such
3257 contributions to approved providers in accordance with the
3258 allocation directions of members participants; services relating
3259 to consolidated billing; individual and collective recordkeeping
3260 and accounting; asset purchase, control, and safekeeping; and
3261 direct disbursement of funds to and from the third-party
3262 administrator, the division, the state board, employers, plan
3263 members participants, approved providers, and beneficiaries.
3264 This section does not prevent or prohibit a bundled provider
3265 from providing any administrative or customer service, including
3266 accounting and administration of individual member participant
3267 benefits and contributions; individual member participant
3268 recordkeeping; asset purchase, control, and safekeeping; direct
3269 execution of the member’s participant’s instructions as to asset
3270 and contribution allocation; calculation of daily net asset
3271 values; direct access to member participant account information;
3272 or periodic reporting to members participants, at least
3273 quarterly, on account balances and transactions, if these
3274 services are authorized by the state board as part of the
3275 contract.
3276 (b)1.3. The state board shall select and contract with one
3277 or more organizations to provide educational services. With
3278 approval of the state board, the organizations may subcontract
3279 with other organizations or individuals to provide components of
3280 the educational services. As a cost of administration, the state
3281 board may compensate any such contractor for its services in
3282 accordance with the terms of the contract, as is deemed
3283 necessary or proper by the board. The education organization may
3284 not be an approved provider or be affiliated with an approved
3285 provider.
3286 2.4. Educational services shall be designed by the state
3287 board and department to assist employers, eligible employees,
3288 members participants, and beneficiaries in order to maintain
3289 compliance with United States Department of Labor regulations
3290 under s. 404(c) of the Employee Retirement Income Security Act
3291 of 1974, and to assist employees in understanding their choice
3292 of defined benefit or defined contribution retirement program,
3293 and, if applicable, the choice between the pension plan and the
3294 investment plan alternatives. Educational services include, but
3295 are not limited to, disseminating educational materials;
3296 providing retirement planning education; explaining the pension
3297 differences between the defined benefit retirement plan and the
3298 investment defined contribution retirement plan; and offering
3299 financial planning guidance on matters such as investment
3300 diversification, investment risks, investment costs, and asset
3301 allocation. An approved provider may also provide educational
3302 information, including retirement planning and investment
3303 allocation information concerning its products and services.
3304 (c)1. In evaluating and selecting a third-party
3305 administrator, the state board shall establish criteria for
3306 evaluating under which it shall consider the relative
3307 capabilities and qualifications of each proposed administrator.
3308 In developing such criteria, the state board shall consider:
3309 a. The administrator’s demonstrated experience in providing
3310 administrative services to public or private sector retirement
3311 systems.
3312 b. The administrator’s demonstrated experience in providing
3313 daily valued recordkeeping for investment to defined
3314 contribution plans.
3315 c. The administrator’s ability and willingness to
3316 coordinate its activities with the Florida Retirement System
3317 employers, the state board, and the division, and to supply to
3318 such employers, the board, and the division the information and
3319 data they require, including, but not limited to, monthly
3320 management reports, quarterly member participant reports, and ad
3321 hoc reports requested by the department or state board.
3322 d. The cost-effectiveness and levels of the administrative
3323 services provided.
3324 e. The administrator’s ability to interact with the members
3325 participants, the employers, the state board, the division, and
3326 the providers; the means by which members participants may
3327 access account information, direct investment of contributions,
3328 make changes to their accounts, transfer moneys between
3329 available investment vehicles, and transfer moneys between
3330 investment products; and any fees that apply to such activities.
3331 f. Any other factor deemed necessary by the Trustees of the
3332 state board of Administration.
3333 2. In evaluating and selecting an educational provider, the
3334 state board shall establish criteria under which it shall
3335 consider the relative capabilities and qualifications of each
3336 proposed educational provider. In developing such criteria, the
3337 board shall consider:
3338 a. Demonstrated experience in providing educational
3339 services to public or private sector retirement systems.
3340 b. Ability and willingness to coordinate its activities
3341 with the Florida Retirement System employers, the state board,
3342 and the division, and to supply to such employers, the board,
3343 and the division the information and data they require,
3344 including, but not limited to, reports on educational contacts.
3345 c. The cost-effectiveness and levels of the educational
3346 services provided.
3347 d. Ability to provide educational services via different
3348 media, including, but not limited to, the Internet, personal
3349 contact, seminars, brochures, and newsletters.
3350 e. Any other factor deemed necessary by the Trustees of the
3351 state board of Administration.
3352 3. The establishment of the criteria shall be solely within
3353 the discretion of the state board.
3354 (d) The state board shall develop the form and content of
3355 any contracts to be offered under the investment plan Public
3356 Employee Optional Retirement Program. In developing the its
3357 contracts, the board shall must consider:
3358 1. The nature and extent of the rights and benefits to be
3359 afforded in relation to the required contributions required
3360 under the plan program.
3361 2. The suitability of the rights and benefits provided to
3362 be afforded and the interests of employers in the recruitment
3363 and retention of eligible employees.
3364 (e)1. The state board may contract with any consultant for
3365 professional services, including legal, consulting, accounting,
3366 and actuarial services, deemed necessary to implement and
3367 administer the investment plan optional program by the Trustees
3368 of the state board of Administration. The board may enter into a
3369 contract with one or more vendors to provide low-cost investment
3370 advice to members participants, supplemental to education
3371 provided by the third-party administrator. All fees under any
3372 such contract shall be paid by those members participants who
3373 choose to use the services of the vendor.
3374 2. The department may contract with consultants for
3375 professional services, including legal, consulting, accounting,
3376 and actuarial services, deemed necessary to implement and
3377 administer the investment plan optional program in coordination
3378 with the pension plan defined benefit program of the Florida
3379 Retirement System. The department, in coordination with the
3380 state board, may enter into a contract with the third-party
3381 administrator in order to coordinate services common to the
3382 various programs within the Florida Retirement System.
3383 (f) The third-party administrator may shall not receive
3384 direct or indirect compensation from an approved provider,
3385 except as specifically provided for in the contract with the
3386 state board.
3387 (g) The state board shall receive and resolve member
3388 participant complaints against the investment plan program, the
3389 third-party administrator, or any plan program vendor or
3390 provider; shall resolve any conflict between the third-party
3391 administrator and an approved provider if such conflict
3392 threatens the implementation or administration of the plan
3393 program or the quality of services to employees; and may resolve
3394 any other conflicts. The third-party administrator shall retain
3395 all member participant records for at least 5 years for use in
3396 resolving any member participant conflicts. The state board, the
3397 third-party administrator, or a provider is not required to
3398 produce documentation or an audio recording to justify action
3399 taken with regard to a member participant if the action occurred
3400 5 or more years before the complaint is submitted to the state
3401 board. It is presumed that all action taken 5 or more years
3402 before the complaint is submitted was taken at the request of
3403 the member participant and with the member’s participant’s full
3404 knowledge and consent. To overcome this presumption, the member
3405 participant must present documentary evidence or an audio
3406 recording demonstrating otherwise.
3407 (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
3408 (a) The state board shall develop policy and procedures for
3409 selecting, evaluating, and monitoring the performance of
3410 approved providers and investment products to which employees
3411 may direct retirement contributions under the investment plan
3412 program. In accordance with such policy and procedures, the
3413 state board shall designate and contract for a number of
3414 investment products as determined by the board. The board shall
3415 also select one or more bundled providers, each of which whom
3416 may offer multiple investment options and related services, if
3417 when such an approach is determined by the board to provide
3418 afford value to the members participants otherwise not available
3419 through individual investment products. Each approved bundled
3420 provider may offer investment options that provide members
3421 participants with the opportunity to invest in each of the
3422 following asset classes, to be composed of individual options
3423 that represent either a single asset class or a combination
3424 thereof: money markets, United States fixed income, United
3425 States equities, and foreign stock. The state board shall review
3426 and manage all educational materials, contract terms, fee
3427 schedules, and other aspects of the approved provider
3428 relationships to ensure that no provider is unduly favored or
3429 penalized by virtue of its status within the investment plan.
3430 (b) The state board shall consider investment options or
3431 products it considers appropriate to give members participants
3432 the opportunity to accumulate retirement benefits, subject to
3433 the following:
3434 1. The investment plan Public Employee Optional Retirement
3435 Program must offer a diversified mix of low-cost investment
3436 products that span the risk-return spectrum and may include a
3437 guaranteed account as well as investment products, such as
3438 individually allocated guaranteed and variable annuities, which
3439 meet the requirements of this subsection and combine the ability
3440 to accumulate investment returns with the option of receiving
3441 lifetime income consistent with the long-term retirement
3442 security of a pension plan and similar to the lifetime-income
3443 benefit provided by the Florida Retirement System.
3444 2. Investment options or products offered by the group of
3445 approved providers may include mutual funds, group annuity
3446 contracts, individual retirement annuities, interests in trusts,
3447 collective trusts, separate accounts, and other such financial
3448 instruments, and may include products that give members
3449 participants the option of committing their contributions for an
3450 extended time period in an effort to obtain returns higher than
3451 those that could be obtained from investment products offering
3452 full liquidity.
3453 3. The state board may shall not contract with a any
3454 provider that imposes a front-end, back-end, contingent, or
3455 deferred sales charge, or any other fee that limits or restricts
3456 the ability of members participants to select any investment
3457 product available in the investment plan optional program. This
3458 prohibition does not apply to fees or charges that are imposed
3459 on withdrawals from products that give members participants the
3460 option of committing their contributions for an extended time
3461 period in an effort to obtain returns higher than those that
3462 could be obtained from investment products offering full
3463 liquidity, provided that the product in question, net of all
3464 fees and charges, produces material benefits relative to other
3465 comparable products in the plan program offering full liquidity.
3466 4. Fees or charges for insurance features, such as
3467 mortality and expense-risk charges, must be reasonable relative
3468 to the benefits provided.
3469 (c) In evaluating and selecting approved providers and
3470 products, the state board shall establish criteria for
3471 evaluating under which it shall consider the relative
3472 capabilities and qualifications of each proposed provider
3473 company and product. In developing such criteria, the board
3474 shall consider the following to the extent such factors may be
3475 applied in connection with investment products, services, or
3476 providers:
3477 1. Experience in the United States providing retirement
3478 products and related financial services under investment defined
3479 contribution retirement plans.
3480 2. Financial strength and stability as which shall be
3481 evidenced by the highest ratings assigned by nationally
3482 recognized rating services when comparing proposed providers
3483 that are so rated.
3484 3. Intrastate and interstate portability of the product
3485 offered, including early withdrawal options.
3486 4. Compliance with the Internal Revenue Code.
3487 5. The cost-effectiveness of the product provided and the
3488 levels of service supporting the product relative to its
3489 benefits and its characteristics, including, without limitation,
3490 the level of risk borne by the provider.
3491 6. The provider company’s ability and willingness to
3492 coordinate its activities with Florida Retirement System
3493 employers, the department, and the state board, and to supply to
3494 the such employers, the department, and the board with the
3495 information and data they require.
3496 7. The methods available to members participants to
3497 interact with the provider company; the means by which members
3498 participants may access account information, direct investment
3499 of contributions, make changes to their accounts, transfer
3500 moneys between available investment vehicles, and transfer
3501 moneys between provider companies; and any fees that apply to
3502 such activities.
3503 8. The provider company’s policies with respect to the
3504 transfer of individual account balances, contributions, and
3505 earnings thereon, both internally among investment products
3506 offered by the provider company and externally between approved
3507 providers, as well as any fees, charges, reductions, or
3508 penalties that may be applied.
3509 9. An evaluation of specific investment products, taking
3510 into account each product’s experience in meeting its investment
3511 return objectives net of all related fees, expenses, and
3512 charges, including, but not limited to, investment management
3513 fees, loads, distribution and marketing fees, custody fees,
3514 recordkeeping fees, education fees, annuity expenses, and
3515 consulting fees.
3516 10. Organizational factors, including, but not limited to,
3517 financial solvency, organizational depth, and experience in
3518 providing institutional and retail investment services.
3519 (d) By March 1, 2010, The state board shall identify and
3520 offer at least one terror-free investment product that allocates
3521 its funds among securities not subject to divestiture as
3522 provided in s. 215.473 if the investment product is deemed by
3523 the board to be consistent with prudent investor standards. No
3524 person may bring a civil, criminal, or administrative action
3525 against an approved provider; the state board; or any employee,
3526 officer, director, or trustee of such provider based upon the
3527 divestiture of any security or the offering of a terror-free
3528 investment product as specified in this paragraph.
3529 (e) As a condition of offering an any investment option or
3530 product in the investment plan optional retirement program, the
3531 approved provider must agree to make the investment product or
3532 service available under the most beneficial terms offered to any
3533 other customer, subject to approval by the Trustees of the state
3534 board of Administration.
3535 (f) The state board shall regularly review the performance
3536 of each approved provider and product and related organizational
3537 factors to ensure continued compliance with established
3538 selection criteria and with board policy and procedures.
3539 Providers and products may be terminated subject to contract
3540 provisions. The state board shall adopt procedures to transfer
3541 account balances from terminated products or providers to other
3542 products or providers in the investment plan optional program.
3543 (g)1. An approved provider shall comply with all applicable
3544 federal and state securities and insurance laws and regulations
3545 applicable to the provider, as well as with the applicable rules
3546 and guidelines of the National Association of Securities Dealers
3547 which govern the ethical marketing of investment products. In
3548 furtherance of this mandate, an approved provider must agree in
3549 its contract with the state board to establish and maintain a
3550 compliance education and monitoring system to supervise the
3551 activities of all personnel who directly communicate with
3552 individual members participants and recommend investment
3553 products, which system is consistent with rules of the National
3554 Association of Securities Dealers.
3555 2. Approved provider personnel who directly communicate
3556 with individual members participants and who recommend
3557 investment products shall make an independent and unbiased
3558 determination as to whether an investment product is suitable
3559 for a particular member participant.
3560 3. The state board shall develop procedures to receive and
3561 resolve member participant complaints against a provider or
3562 approved provider personnel, and, if when appropriate, refer
3563 such complaints to the appropriate agency.
3564 4. Approved providers may not sell or in any way distribute
3565 any customer list or member participant identification
3566 information generated through their offering of products or
3567 services through the investment plan optional retirement
3568 program.
3569 (10) EDUCATION COMPONENT.—
3570 (a) The state board, in coordination with the department,
3571 shall provide for an education component for eligible employees
3572 system members in a manner consistent with the provisions of
3573 this section. The education component must be available to
3574 eligible employees at least 90 days before prior to the
3575 beginning date of the election period for the employees of the
3576 respective types of employers.
3577 (b) The education component must provide eligible employees
3578 system members with impartial and balanced information about
3579 plan choices. The education component must involve multimedia
3580 formats. Plan Program comparisons must, to the greatest extent
3581 possible, be based upon the retirement income that different
3582 retirement programs may provide to the member participant. The
3583 state board shall monitor the performance of the contract for
3584 the education component to ensure that the program is conducted
3585 in accordance with the contract, applicable law, and the rules
3586 of the board.
3587 (c) The state board, in coordination with the department,
3588 shall provide for an initial and ongoing transfer education
3589 component to provide system members with information necessary
3590 to make informed plan choice decisions. The transfer education
3591 component must include, but is not limited to, information on:
3592 1. The amount of money available to a member to transfer to
3593 the investment plan defined contribution program.
3594 2. The features of and differences between the pension plan
3595 defined benefit program and the investment plan defined
3596 contribution program, both generally and specifically, as those
3597 differences may affect the member.
3598 3. The expected benefit available if the member were to
3599 retire under each of the retirement programs, based on
3600 appropriate alternative sets of assumptions.
3601 4. The rate of return from investments in the investment
3602 plan defined contribution program and the period of time over
3603 which such rate of return must be achieved to equal or exceed
3604 the expected monthly benefit payable to the member under the
3605 pension plan defined benefit program.
3606 5. The historical rates of return for the investment
3607 alternatives available in the investment plan defined
3608 contribution programs.
3609 6. The benefits and historical rates of return on
3610 investments available in a typical deferred compensation plan or
3611 a typical plan under s. 403(b) of the Internal Revenue Code for
3612 which the employee may be eligible.
3613 7. The program choices available to employees of the State
3614 University System and the comparative benefits of each available
3615 program, if applicable.
3616 8. Payout options available in each of the retirement
3617 programs.
3618 (d) An ongoing education and communication component must
3619 provide eligible employees system members with information
3620 necessary to make informed decisions about choices within their
3621 retirement program of membership and in preparation for
3622 retirement. The component must include, but is not limited to,
3623 information concerning:
3624 1. Rights and conditions of membership.
3625 2. Benefit features within the program, options, and
3626 effects of certain decisions.
3627 3. Coordination of contributions and benefits with a
3628 deferred compensation plan under s. 457 or a plan under s.
3629 403(b) of the Internal Revenue Code.
3630 4. Significant program changes.
3631 5. Contribution rates and program funding status.
3632 6. Planning for retirement.
3633 (e) Descriptive materials must be prepared under the
3634 assumption that the employee is an unsophisticated investor, and
3635 all materials used in the education component must be approved
3636 by the state board before prior to dissemination.
3637 (f) The state board and the department shall also establish
3638 a communication component to provide program information to
3639 participating employers and the employers’ personnel and payroll
3640 officers and to explain their respective responsibilities in
3641 conjunction with the retirement programs.
3642 (g) Funding for education of new employees may reflect
3643 administrative costs to the investment plan optional program and
3644 the pension plan defined benefit program.
3645 (h) Pursuant to paragraph (8)(a), all Florida Retirement
3646 System employers have an obligation to regularly communicate the
3647 existence of the two Florida Retirement System plans and the
3648 plan choice in the natural course of administering their
3649 personnel functions, using the educational materials supplied by
3650 the state board and the department of Management Services.
3651 (11) MEMBER PARTICIPANT INFORMATION REQUIREMENTS.—The state
3652 board shall ensure that each member participant is provided a
3653 quarterly statement that accounts for employer and employee the
3654 contributions made on behalf of the member such participant; the
3655 interest and investment earnings thereon; and any fees,
3656 penalties, or other deductions that apply thereto. At a minimum,
3657 such statements must:
3658 (a) Indicate the member’s participant’s investment options.
3659 (b) State the market value of the account at the close of
3660 the current quarter and previous quarter.
3661 (c) Show account gains and losses for the period and
3662 changes in account accumulation unit values for the quarter
3663 period.
3664 (d) Itemize account contributions for the quarter.
3665 (e) Indicate any account changes due to adjustment of
3666 contribution levels, reallocation of contributions, balance
3667 transfers, or withdrawals.
3668 (f) Set forth any fees, charges, penalties, and deductions
3669 that apply to the account.
3670 (g) Indicate the amount of the account in which the member
3671 participant is fully vested and the amount of the account in
3672 which the member participant is not vested.
3673 (h) Indicate each investment product’s performance relative
3674 to an appropriate market benchmark.
3675
3676 The third-party administrator shall provide quarterly and annual
3677 summary reports to the state board and any other reports
3678 requested by the department or the board. In any solicitation or
3679 offer of coverage under the investment plan an optional
3680 retirement program, a provider company shall be governed by the
3681 contract readability provisions of s. 627.4145, notwithstanding
3682 s. 627.4145(6)(c). In addition, all descriptive materials must
3683 be prepared under the assumption that the member participant is
3684 an unsophisticated investor. Provider companies must maintain an
3685 internal system of quality assurance, have proven functional
3686 systems that are date-calculation compliant, and be subject to a
3687 due-diligence inquiry that proves their capacity and fitness to
3688 undertake service responsibilities.
3689 (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.—The
3690 Investment Advisory Council, created pursuant to s. 215.444,
3691 shall assist the state board in implementing and administering
3692 the investment plan Public Employee Optional Retirement Program.
3693 The Investment Advisory council, created pursuant to s. 215.444,
3694 shall review the state board’s initial recommendations regarding
3695 the criteria to be used in selecting and evaluating approved
3696 providers and investment products. The council may provide
3697 comments on the recommendations to the board within 45 days
3698 after receiving the initial recommendations. The state board
3699 shall make the final determination as to whether any investment
3700 provider or product, any contractor, or any and all contract
3701 provisions are shall be approved for the investment plan
3702 program.
3703 (13) FEDERAL REQUIREMENTS.—
3704 (a) Provisions of This section shall be construed, and the
3705 investment plan Public Employee Optional Retirement Program
3706 shall be administered, so as to comply with the Internal Revenue
3707 Code, 26 U.S.C., and specifically with plan qualification
3708 requirements imposed on governmental plans under s. 401(a) of
3709 the Internal Revenue Code. The state board may shall have the
3710 power and authority to adopt rules reasonably necessary to
3711 establish or maintain the qualified status of the investment
3712 plan Optional Retirement Program under the Internal Revenue Code
3713 and to implement and administer the plan Optional Retirement
3714 Program in compliance with the Internal Revenue Code and this
3715 part; provided however, that the board may shall not have the
3716 authority to adopt any rule which makes a substantive change to
3717 the investment plan Optional Retirement Program as designed by
3718 this part.
3719 (b) Any section or provision of this chapter which is
3720 susceptible to more than one construction shall must be
3721 interpreted in favor of the construction most likely to satisfy
3722 requirements imposed by s. 401(a) of the Internal Revenue Code.
3723 (c) Employer and employee contributions payable under this
3724 section for any limitation year may not exceed the maximum
3725 amount allowable for qualified defined contribution pension
3726 plans under applicable provisions of the Internal Revenue Code.
3727 If an employee who is enrolled who has elected to participate in
3728 the investment plan enrolls Public Employee Optional Retirement
3729 Program participates in any other plan that is maintained by the
3730 participating employer, benefits that accrue under the
3731 investment plan are Public Employee Optional Retirement Program
3732 shall be considered primary for any aggregate limitation
3733 applicable under s. 415 of the Internal Revenue Code.
3734 (14) INVESTMENT POLICY STATEMENT.—
3735 (a) Investment products and approved providers selected for
3736 the investment plan Public Employee Optional Retirement Program
3737 must shall conform with the Florida Public Employee Optional
3738 Retirement System Program Investment Plan Policy Statement,
3739 herein referred to as the “statement,” as developed and approved
3740 by the Trustees of the state board of Administration. The
3741 statement must include, among other items, the investment
3742 objectives of the investment plan Public Employee Optional
3743 Retirement Program, manager selection and monitoring guidelines,
3744 and performance measurement criteria. As required from time to
3745 time, the executive director of the state board may present
3746 recommended changes in the statement to the board for approval.
3747 (b) Before Prior to presenting the statement, or any
3748 recommended changes thereto, to the state board, the executive
3749 director of the board shall present such statement or changes to
3750 the Investment Advisory Council for review. The council shall
3751 present the results of its review to the board prior to the
3752 board’s final approval of the statement or changes in the
3753 statement.
3754 (15) STATEMENT OF FIDUCIARY STANDARDS AND
3755 RESPONSIBILITIES.—
3756 (a) Investment of investment plan optional defined
3757 contribution retirement plan assets shall be made for the sole
3758 interest and exclusive purpose of providing benefits to plan
3759 members participants and beneficiaries and defraying reasonable
3760 expenses of administering the plan. The program’s assets shall
3761 are to be invested, on behalf of the members program
3762 participants, with the care, skill, and diligence that a prudent
3763 person acting in a like manner would undertake. The performance
3764 of the investment duties set forth in this paragraph shall
3765 comply with the fiduciary standards set forth in the Employee
3766 Retirement Income Security Act of 1974 at 29 U.S.C. s.
3767 1104(a)(1)(A)-(C). In case of conflict with other provisions of
3768 law authorizing investments, the investment and fiduciary
3769 standards set forth in this subsection shall prevail.
3770 (b) If a member participant or beneficiary of the
3771 investment plan Public Employee Optional Retirement program
3772 exercises control over the assets in his or her account, as
3773 determined by reference to regulations of the United States
3774 Department of Labor under s. 404(c) of the Employee Retirement
3775 Income Security Act of 1974 and all applicable laws governing
3776 the operation of the program, a no program fiduciary is not
3777 shall be liable for any loss to a member’s participant’s or
3778 beneficiary’s account which results from the member’s such
3779 participant’s or beneficiary’s exercise of control.
3780 (c) Subparagraph (8)(b)2. (8)(b)4. and paragraph (15)(b)
3781 incorporate the federal law concept of member participant
3782 control, established by regulations of the United States
3783 Department of Labor under s. 404(c) of the Employee Retirement
3784 Income Security Act of 1974 (ERISA). The purpose of this
3785 paragraph is to assist employers and the state board of
3786 Administration in maintaining compliance with s. 404(c), while
3787 avoiding unnecessary costs and eroding member participant
3788 benefits under the investment plan Public Employee Optional
3789 Retirement program. Pursuant to 29 C.F.R. s. 2550.404c
3790 1(b)(2)(i)(B)(1)(viii), the state board of Administration or its
3791 designated agents shall deliver to members participants of the
3792 investment plan Public Employee Optional Retirement program a
3793 copy of the prospectus most recently provided to the plan, and,
3794 pursuant to 29 C.F.R. s. 2550.404c-1(b)(2)(i)(B)(2)(ii), shall
3795 provide such members participants an opportunity to obtain this
3796 information, except that:
3797 1. The requirement to deliver a prospectus shall be deemed
3798 to be satisfied by delivery of a fund profile or summary profile
3799 that contains the information that would be included in a
3800 summary prospectus as described by Rule 498 under the Securities
3801 Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees,
3802 expense information, or other information provided by a mutual
3803 fund in the prospectus does not reflect terms negotiated by the
3804 state board of Administration or its designated agents, the
3805 aforementioned requirement is deemed to be satisfied by delivery
3806 of a separate document described by Rule 498 substituting
3807 accurate information; and
3808 2. Delivery shall be deemed to have been effected if
3809 delivery is through electronic means and the following standards
3810 are satisfied:
3811 a. Electronically-delivered documents are prepared and
3812 provided consistent with style, format, and content requirements
3813 applicable to printed documents;
3814 b. Each member participant is provided timely and adequate
3815 notice of the documents that are to be delivered and their
3816 significance thereof, and of the member’s participant’s right to
3817 obtain a paper copy of such documents free of charge;
3818 c.(I) Members Participants have adequate access to the
3819 electronic documents, at locations such as their worksites or
3820 public facilities, and have the ability to convert the documents
3821 to paper free of charge by the state board of Administration,
3822 and the board or its designated agents take appropriate and
3823 reasonable measures to ensure that the system for furnishing
3824 electronic documents results in actual receipt., or
3825 (II) Members Participants have provided consent to receive
3826 information in electronic format, which consent may be revoked;
3827 and
3828 d. The state board of Administration, or its designated
3829 agent, actually provides paper copies of the documents free of
3830 charge, upon request.
3831 (16) DISABILITY BENEFITS.—For any member participant of the
3832 investment plan optional retirement program who becomes totally
3833 and permanently disabled, benefits must shall be paid in
3834 accordance with the provisions of s. 121.591.
3835 (17) SOCIAL SECURITY COVERAGE.—Social security coverage
3836 shall be provided for all officers and employees who become
3837 members participants of the investment plan optional program.
3838 Any modification of the present agreement with the Social
3839 Security Administration, or referendum required under the Social
3840 Security Act, for the purpose of providing social security
3841 coverage for any member shall be requested by the state agency
3842 in compliance with the applicable provisions of the Social
3843 Security Act governing such coverage. However, retroactive
3844 social security coverage for service before prior to December 1,
3845 1970, with the employer may shall not be provided for any member
3846 who was not covered under the agreement as of November 30, 1970.
3847 (18) RETIREE HEALTH INSURANCE SUBSIDY.—All officers and
3848 employees who are members participants of the investment plan
3849 are optional program shall be eligible to receive the retiree
3850 health insurance subsidy, subject to the provisions of s.
3851 112.363.
3852 (19) MEMBER PARTICIPANT RECORDS.—Personal identifying
3853 information of a member of participant in the investment plan
3854 Public Employee Optional Retirement Program contained in Florida
3855 Retirement System records held by the state board of
3856 Administration or the department of Management Services is
3857 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3858 Constitution.
3859 (20) DESIGNATION OF BENEFICIARIES.—
3860 (a) Each member participant may, by electronic means or on
3861 a form provided for that purpose, signed and filed with the
3862 third-party administrator, designate a choice of one or more
3863 persons, named sequentially or jointly, as his or her
3864 beneficiary for receiving who shall receive the benefits, if
3865 any, which may be payable pursuant to this chapter in the event
3866 of the member’s participant’s death. If no beneficiary is named
3867 in this manner, or if no beneficiary designated by the member
3868 participant survives the member participant, the beneficiary
3869 shall be the spouse of the deceased, if living. If the member’s
3870 participant’s spouse is not alive at the time of the
3871 beneficiary’s his or her death, the beneficiary shall be the
3872 member’s living children of the participant. If no children
3873 survive, the beneficiary shall be the member’s participant’s
3874 father or mother, if living; otherwise, the beneficiary shall be
3875 the member’s participant’s estate. The beneficiary most recently
3876 designated by a member participant on a form or letter filed
3877 with the third-party administrator shall be the beneficiary
3878 entitled to any benefits payable at the time of the member’s
3879 participant’s death. However Notwithstanding any other provision
3880 in this subsection to the contrary, if a member for a
3881 participant who dies before prior to his or her effective date
3882 of retirement, the spouse at the time of death shall be the
3883 member’s participant’s beneficiary unless the member such
3884 participant designates a different beneficiary as provided in
3885 this subsection subsequent to the member’s participant’s most
3886 recent marriage.
3887 (b) If a member participant designates a primary
3888 beneficiary other than the member’s participant’s spouse, the
3889 member’s participant’s spouse must sign the beneficiary
3890 designation form to acknowledge the designation. This
3891 requirement does not apply to the designation of one or more
3892 contingent beneficiaries to receive benefits remaining upon the
3893 death of the primary beneficiary or beneficiaries.
3894 (c) Notwithstanding the member’s participant’s designation
3895 of benefits to be paid through a trust to a beneficiary that is
3896 a natural person, and notwithstanding the provisions of the
3897 trust, benefits must shall be paid directly to the beneficiary
3898 if the person is no longer a minor or an incapacitated person as
3899 defined in s. 744.102.
3900 (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT OPTION
3901 PROGRAM PARTICIPANTS.—Notwithstanding any other provision of law
3902 to the contrary, members participating participants in the
3903 Deferred Retirement Option Program offered under part I may,
3904 after conclusion of their participation in the program, elect to
3905 roll over or authorize a direct trustee-to-trustee transfer to
3906 an account under the investment plan Public Employee Optional
3907 Retirement Program of their Deferred Retirement Option Program
3908 proceeds distributed as provided under s. 121.091(13)(c)5. The
3909 transaction must constitute an “eligible rollover distribution”
3910 within the meaning of s. 402(c)(4) of the Internal Revenue Code.
3911 (a) The investment plan Public Employee Optional Retirement
3912 Program may accept such amounts for deposit into member
3913 participant accounts as provided in paragraph (5)(e) (5)(c).
3914 (b) The affected member participant shall direct the
3915 investment of his or her investment account; however, unless he
3916 or she becomes a renewed member of the Florida Retirement System
3917 under s. 121.122 and elects to enroll participate in the
3918 investment plan Public Employee Optional Retirement program,
3919 employer and employee contributions may not be made to the
3920 member’s participant’s account as provided under paragraph
3921 (5)(a).
3922 (c) The state board or the department is not responsible
3923 for locating those persons who may be eligible to enroll
3924 participate in the investment plan Public Employee Optional
3925 Retirement Program under this subsection.
3926 (22) CREDIT FOR MILITARY SERVICE.—Creditable service of any
3927 member of the investment program includes Public Employee
3928 Optional Retirement Program shall include military service in
3929 the Armed Forces of the United States as provided in the
3930 conditions outlined in s. 121.111(1).
3931 Section 23. Section 121.4502, Florida Statutes, is amended
3932 to read:
3933 121.4502 Florida Public Employee Optional Retirement System
3934 Investment Plan Program Trust Fund.—
3935 (1) The Florida Public Employee Optional Retirement System
3936 Investment Plan Program Trust Fund is created to hold the assets
3937 of the Florida Public Employee Optional Retirement System
3938 Investment Plan Program in trust for the exclusive benefit of
3939 plan members such program’s participants and beneficiaries, and
3940 for the payment of reasonable administrative expenses of the
3941 plan program, in accordance with s. 401 of the Internal Revenue
3942 Code, and shall be administered by the State Board of
3943 Administration as trustee. Funds shall be credited to the trust
3944 fund as provided in this part and, to be used for the purposes
3945 of this part. The trust fund is exempt from the service charges
3946 imposed by s. 215.20.
3947 (2) The Florida Public Employee Optional Retirement System
3948 Investment Plan Program Trust Fund is a retirement trust fund of
3949 the Florida Retirement System that accounts for retirement plan
3950 assets held by the state in a trustee capacity as a fiduciary
3951 for individual members participants in the Florida Public
3952 Employee Optional Retirement System Investment Plan Program and,
3953 pursuant to s. 19(f), Art. III of the State Constitution, is not
3954 subject to termination.
3955 (3) A forfeiture account shall be created within the
3956 Florida Retirement System Investment Plan Public Employee
3957 Optional Retirement Program Trust Fund to hold the assets
3958 derived from the forfeiture of benefits by participating members
3959 participants. Pursuant to a private letter ruling from the
3960 Internal Revenue Service, the forfeiture account may be used
3961 only for paying expenses of the Florida Retirement System
3962 Investment Plan Public Employee Optional Retirement Program and
3963 reducing future employer contributions to the program.
3964 Consistent with Rulings 80-155 and 74-340 of the Internal
3965 Revenue Service, unallocated reserves within the forfeiture
3966 account must be used as quickly and as prudently as possible
3967 considering the state board’s fiduciary duty. Expected
3968 withdrawals from the account must endeavor to reduce the account
3969 to zero each fiscal year.
3970 Section 24. Subsections (1) and (3) of section 121.4503,
3971 Florida Statutes, are amended to read:
3972 121.4503 Florida Retirement System Contributions Clearing
3973 Trust Fund.—
3974 (1) The Florida Retirement System Contributions Clearing
3975 Trust Fund is created as a clearing fund for disbursing employer
3976 and employee contributions to the component plans of the Florida
3977 Retirement System and shall be administered by the department of
3978 Management Services. Funds shall be credited to the trust fund
3979 as provided in this chapter and shall be held in trust for the
3980 contributing employers and employees until such time as the
3981 assets are transferred by the department to the Florida
3982 Retirement System Trust Fund, the Florida Public Employee
3983 Optional Retirement System Investment Plan Program Trust Fund,
3984 or other trust funds as authorized by law, to be used for the
3985 purposes of this chapter. The trust fund is exempt from the
3986 service charges imposed by s. 215.20.
3987 (3) The department of Management Services may adopt rules
3988 governing the receipt and disbursement of amounts received by
3989 the Florida Retirement System Contributions Clearing Trust Fund
3990 from employers and employees contributing to the component plans
3991 of the Florida Retirement System.
3992 Section 25. Section 121.571, Florida Statutes, is amended
3993 to read:
3994 121.571 Contributions.—Contributions to the Florida Public
3995 Employee Optional Retirement System Investment Plan Program
3996 shall be made as follows:
3997 (1) CONTRIBUTORY NONCONTRIBUTORY PLAN.—Each employer and
3998 employee shall submit accomplish the contributions as required
3999 under by s. 121.71 by a procedure in which no employee’s gross
4000 salary shall be reduced.
4001 (2) CONTRIBUTION RATES GENERALLY.—Contributions to fund the
4002 retirement and disability benefits provided under this part must
4003 shall be based on the uniform contribution rates established by
4004 s. 121.71 and on the membership class or subclass of the
4005 employee participant. Such contributions must shall be allocated
4006 as provided in ss. 121.72 and 121.73.
4007 (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
4008 RETIREE HEALTH INSURANCE SUBSIDY.—Contributions required under
4009 s. 121.71 are this section shall be in addition to employer and
4010 member contributions required for social security and the
4011 Retiree Health Insurance Subsidy Trust Fund as required under
4012 provided in ss. 112.363, 121.052, 121.055, and 121.071, as
4013 appropriate.
4014 Section 26. Section 121.591, Florida Statutes, is amended
4015 to read:
4016 121.591 Payment of benefits payable under the Public
4017 Employee Optional Retirement Program of the Florida Retirement
4018 System.—Benefits may not be paid under the Florida Retirement
4019 System Investment Plan this section unless the member has
4020 terminated employment as provided in s. 121.021(39)(a) or is
4021 deceased and a proper application has been filed as in the
4022 manner prescribed by the state board or the department. Before
4023 termination of employment, benefits are not payable under the
4024 investment plan for employee hardships, unforeseeable
4025 emergencies, loans, medical expenses, educational expenses,
4026 purchase of a principal residence, payments necessary to prevent
4027 eviction or foreclosure on an employee’s principal residence, or
4028 any other reason prior to termination from all employment
4029 relationships with participating employers. The state board or
4030 department, as appropriate, may cancel an application for
4031 retirement benefits if when the member or beneficiary fails to
4032 timely provide the information and documents required by this
4033 chapter and the rules of the state board and department. In
4034 accordance with their respective responsibilities as provided
4035 herein, the state board of Administration and the department of
4036 Management Services shall adopt rules establishing procedures
4037 for application for retirement benefits and for the cancellation
4038 of such application if when the required information or
4039 documents are not received. The state board of Administration
4040 and the department of Management Services, as appropriate, are
4041 authorized to cash out a de minimis account of not more than
4042 $5,000 of a member participant who has been terminated from
4043 Florida Retirement System covered employment for a minimum of 6
4044 calendar months. A de minimis account is an account containing
4045 employer contributions and accumulated earnings of not more than
4046 $5,000 made under the provisions of this chapter. Such cash-out
4047 must either be a complete lump-sum liquidation of the account
4048 balance, subject to the provisions of the Internal Revenue Code,
4049 or a lump-sum direct rollover distribution paid directly to the
4050 custodian of an eligible retirement plan, as defined by the
4051 Internal Revenue Code, on behalf of the member participant. Any
4052 nonvested accumulations, including amounts transferred to the
4053 suspense account of the Florida Retirement System Investment
4054 Plan Trust Fund, are forfeited upon payment of any vested
4055 benefit to a member or beneficiary, except for de minimis
4056 distributions or minimum required distributions as provided
4057 under this section. If any financial instrument issued for the
4058 payment of retirement benefits under this section is not
4059 presented for payment within 180 days after the last day of the
4060 month in which it was originally issued, the third-party
4061 administrator or other duly authorized agent of the state board
4062 of Administration shall cancel the instrument and credit the
4063 amount of the instrument to the suspense account of the Florida
4064 Public Employee Optional Retirement System Investment Plan
4065 Program Trust Fund authorized under s. 121.4501(6). Any such
4066 amounts transferred to the suspense account are payable upon a
4067 proper application, not to include earnings thereon, as provided
4068 in this section, within 10 years after the last day of the month
4069 in which the instrument was originally issued, after which time
4070 such amounts and any earnings attributable to employer
4071 contributions are thereon shall be forfeited. Any such forfeited
4072 amounts are assets of the Public Employee Optional Retirement
4073 Program trust fund and are not subject to the provisions of
4074 chapter 717.
4075 (1) NORMAL BENEFITS.—Under the Florida Public Employee
4076 Optional Retirement System Investment Plan Program:
4077 (a) Benefits in the form of vested accumulations as
4078 described in s. 121.4501(6) are payable under this subsection in
4079 accordance with the following terms and conditions:
4080 1. To the extent vested, Benefits are payable only to a
4081 member, alternate payee of a qualified domestic relations order,
4082 or a beneficiary participant.
4083 2. Benefits shall be paid by the third-party administrator
4084 or designated approved providers in accordance with the law, the
4085 contracts, and any applicable board rule or policy.
4086 3. To receive benefits, The member participant must be
4087 terminated from all employment with all Florida Retirement
4088 System employers, as provided in s. 121.021(39).
4089 4. Benefit payments may not be made until the member
4090 participant has been terminated for 3 calendar months, except
4091 that the state board may authorize by rule for the distribution
4092 of up to 10 percent of the member’s participant’s account after
4093 being terminated for 1 calendar month if the member participant
4094 has reached the normal retirement date as defined in s. 121.021
4095 of the defined benefit plan.
4096 5. If a member or former member of the Florida Retirement
4097 System receives an invalid distribution from the Public Employee
4098 Optional Retirement Program Trust Fund, such person must repay
4099 the full amount invalid distribution to the trust fund within 90
4100 days after receipt of final notification by the state board or
4101 the third-party administrator that the distribution was invalid,
4102 or, in lieu of repayment, must terminate employment from all
4103 participating employers. If such person fails to repay the full
4104 invalid distribution within 90 days after receipt of final
4105 notification, the person may be deemed retired from the
4106 investment plan optional retirement program by the state board,
4107 as provided pursuant to s. 121.4501(2)(k), and is subject to s.
4108 121.122. If such person is deemed retired by the state board,
4109 any joint and several liability set out in s. 121.091(9)(d)2. is
4110 becomes null and void, and the state board, the department, or
4111 the employing agency is not liable for gains on payroll
4112 contributions that have not been deposited to the person’s
4113 account in the investment plan retirement program, pending
4114 resolution of the invalid distribution. The member or former
4115 member who has been deemed retired or who has been determined by
4116 the state board to have taken an invalid distribution may appeal
4117 the agency decision through the complaint process as provided
4118 under s. 121.4501(9)(g)3. As used in this subparagraph, the term
4119 “invalid distribution” means any distribution from an account in
4120 the investment plan optional retirement program which is taken
4121 in violation of this section, s. 121.091(9), or s. 121.4501.
4122 (b) If a member participant elects to receive his or her
4123 benefits upon termination of employment as defined in s.
4124 121.021, the member participant must submit a written
4125 application or an application by electronic means to the third
4126 party administrator indicating his or her preferred distribution
4127 date and selecting an authorized method of distribution as
4128 provided in paragraph (c). The member participant may defer
4129 receipt of benefits until he or she chooses to make such
4130 application, subject to federal requirements.
4131 (c) Upon receipt by the third-party administrator of a
4132 properly executed application for distribution of benefits, the
4133 total accumulated benefit is shall be payable to the member pro
4134 rata across all Florida Retirement System benefit sources
4135 participant, as:
4136 1. A lump-sum or partial distribution to the member
4137 participant;
4138 2. A lump-sum direct rollover distribution whereby all
4139 accrued benefits, plus interest and investment earnings, are
4140 paid from the member’s participant’s account directly to the
4141 custodian of an eligible retirement plan, as defined in s.
4142 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4143 member participant; or
4144 3. Periodic distributions, as authorized by the state
4145 board.
4146 (d) The distribution payment method selected by the plan
4147 member or beneficiary, and the retirement of the member or
4148 beneficiary, is final and irrevocable at the time a benefit
4149 distribution payment is cashed, deposited, or transferred to
4150 another financial institution. Any additional service that
4151 remains unclaimed at retirement may not be claimed or purchased,
4152 and the type of retirement may not be changed, except that if a
4153 member recovers from a disability, the member may subsequently
4154 request normal service benefits under subsection (2).
4155 (e) A member may not receive a distribution of employee
4156 contributions if a pending or approved qualified domestic
4157 relations order is filed against the member’s investment plan
4158 account.
4159 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
4160 this subsection are payable in lieu of the benefits that which
4161 would otherwise be payable under the provisions of subsection
4162 (1). Such benefits must shall be funded entirely from employer
4163 contributions made under s. 121.571, transferred employee
4164 contributions and participant funds accumulated pursuant to
4165 paragraph (a), and interest and earnings thereon. Pursuant
4166 thereto:
4167 (a) Transfer of funds.—To qualify for to receive monthly
4168 disability benefits under this subsection:
4169 1. All moneys accumulated in a member’s account the
4170 participant’s Public Employee Optional Retirement Program
4171 accounts, including vested and nonvested accumulations as
4172 described in s. 121.4501(6), must shall be transferred from such
4173 individual accounts to the division of Retirement for deposit in
4174 the disability account of the Florida Retirement System Trust
4175 Fund. Such moneys must shall be separately accounted for
4176 separately. Earnings must shall be credited on an annual basis
4177 for amounts held in the disability accounts of the Florida
4178 Retirement System Trust Fund based on actual earnings of the
4179 Florida Retirement System trust fund.
4180 2. If the member participant has retained retirement credit
4181 he or she had earned under the pension plan defined benefit
4182 program of the Florida Retirement System as provided in s.
4183 121.4501(3) s. 121.4501(3)(b), a sum representing the actuarial
4184 present value of such credit within the Florida Retirement
4185 System Trust Fund shall be reassigned by the division of
4186 Retirement from the pension plan defined benefit program to the
4187 disability program as implemented under this subsection and
4188 shall be deposited in the disability account of the Florida
4189 Retirement System trust fund. Such moneys must shall be
4190 separately accounted for separately.
4191 (b) Disability retirement; entitlement.—
4192 1. A member participant of the investment plan Public
4193 Employee Optional Retirement program who becomes totally and
4194 permanently disabled, as defined in paragraph (d) s.
4195 121.091(4)(b), after completing 8 years of creditable service,
4196 or a member participant who becomes totally and permanently
4197 disabled in the line of duty regardless of his or her length of
4198 service, is shall be entitled to a monthly disability benefit as
4199 provided herein.
4200 2. In order for service to apply toward the 8 years of
4201 creditable service required to vest for regular disability
4202 benefits, or toward the creditable service used in calculating a
4203 service-based benefit as provided for under paragraph (g), the
4204 service must be creditable service as described below:
4205 a. The member’s participant’s period of service under the
4206 investment plan shall Public Employee Optional Retirement
4207 program will be considered creditable service, except as
4208 provided in subparagraph d.
4209 b. If the member participant has elected to retain credit
4210 for his or her service under the pension plan defined benefit
4211 program of the Florida Retirement System as provided under s.
4212 121.4501(3) s. 121.4501(3)(b), all such service shall will be
4213 considered creditable service.
4214 c. If the member elects participant has elected to transfer
4215 to his or her member participant accounts a sum representing the
4216 present value of his or her retirement credit under the pension
4217 plan defined benefit program as provided under s. 121.4501(3) s.
4218 121.4501(3)(c), the period of service under the pension plan
4219 defined benefit program represented in the present value amounts
4220 transferred shall will be considered creditable service for
4221 purposes of vesting for disability benefits, except as provided
4222 in subparagraph d.
4223 d. If a member Whenever a participant has terminated
4224 employment and has taken distribution of his or her funds as
4225 provided in subsection (1), all creditable service represented
4226 by such distributed funds is forfeited for purposes of this
4227 subsection.
4228 (c) Disability retirement effective date.—The effective
4229 retirement date for a member participant who applies and is
4230 approved for disability retirement shall be established as
4231 provided under s. 121.091(4)(a)2. and 3.
4232 (d) Total and permanent disability.—A member is participant
4233 shall be considered totally and permanently disabled if, in the
4234 opinion of the division, he or she is prevented, by reason of a
4235 medically determinable physical or mental impairment, from
4236 rendering useful and efficient service as an officer or
4237 employee.
4238 (e) Proof of disability.—The division, Before approving
4239 payment of any disability retirement benefit, the division shall
4240 require proof that the member participant is totally and
4241 permanently disabled in the same manner as provided for members
4242 of the defined benefit program of the Florida Retirement System
4243 under s. 121.091(4)(c).
4244 (f) Disability retirement benefit.—Upon the disability
4245 retirement of a member participant under this subsection, the
4246 member participant shall receive a monthly benefit that begins
4247 accruing shall begin to accrue on the first day of the month of
4248 disability retirement, as approved by the division, and is shall
4249 be payable on the last day of that month and each month
4250 thereafter during his or her lifetime and continued disability.
4251 All disability benefits must payable to such member shall be
4252 paid out of the disability account of the Florida Retirement
4253 System Trust Fund established under this subsection.
4254 (g) Computation of disability retirement benefit.—The
4255 amount of each monthly payment must shall be calculated in the
4256 same manner as provided for members of the defined benefit
4257 program of the Florida Retirement System under s. 121.091(4)(f).
4258 For such purpose, Creditable service under both the pension plan
4259 defined benefit program and the investment plan Public Employee
4260 Optional Retirement Program of the Florida Retirement System
4261 shall be applicable as provided under paragraph (b).
4262 (h) Reapplication.—A member participant whose initial
4263 application for disability retirement is has been denied may
4264 reapply for disability benefits in the same manner, and under
4265 the same conditions, as provided for members of the pension plan
4266 defined benefit program of the Florida Retirement System under
4267 s. 121.091(4)(g).
4268 (i) Membership.—Upon approval of a member’s an application
4269 for disability benefits under this subsection, the applicant
4270 shall be transferred to the pension plan defined benefit program
4271 of the Florida Retirement System, effective upon his or her
4272 disability retirement effective date.
4273 (j) Option to cancel.—A member Any participant whose
4274 application for disability benefits is approved may cancel the
4275 his or her application if for disability benefits, provided that
4276 the cancellation request is received by the division before a
4277 disability retirement warrant has been deposited, cashed, or
4278 received by direct deposit. Upon such cancellation:
4279 1. The member’s participant’s transfer to the pension plan
4280 defined benefit program under paragraph (i) shall be nullified;
4281 2. The member participant shall be retroactively reinstated
4282 in the investment plan Public Employee Optional Retirement
4283 program without hiatus;
4284 3. All funds transferred to the Florida Retirement System
4285 Trust Fund under paragraph (a) must shall be returned to the
4286 member participant accounts from which the such funds were
4287 drawn; and
4288 4. The member participant may elect to receive the benefit
4289 payable under the provisions of subsection (1) in lieu of
4290 disability benefits as provided under this subsection.
4291 (k) Recovery from disability.—
4292 1. The division may require periodic reexaminations at the
4293 expense of the disability program account of the Florida
4294 Retirement System Trust Fund. Except as otherwise provided in
4295 subparagraph 2., the requirements, procedures, and restrictions
4296 relating to the conduct and review of such reexaminations,
4297 discontinuation or termination of benefits, reentry into
4298 employment, disability retirement after reentry into covered
4299 employment, and all other matters relating to recovery from
4300 disability shall be the same as provided are set forth under s.
4301 121.091(4)(h).
4302 2. Upon recovery from disability, the any recipient of
4303 disability retirement benefits under this subsection shall be
4304 transferred back to the investment plan a compulsory member of
4305 the Public Employee Optional Retirement Program of the Florida
4306 Retirement System. The net difference between the recipient’s
4307 original account balance transferred to the Florida Retirement
4308 System Trust Fund, including earnings, under paragraph (a) and
4309 total disability benefits paid to such recipient, if any, shall
4310 be determined as provided in sub-subparagraph a.
4311 a. An amount equal to the total benefits paid shall be
4312 subtracted from that portion of the transferred account balance
4313 consisting of vested accumulations as described under s.
4314 121.4501(6), if any, and an amount equal to the remainder of
4315 benefit amounts paid, if any, shall then be subtracted from any
4316 remaining portion consisting of nonvested accumulations as
4317 described under s. 121.4501(6).
4318 b. Amounts subtracted under sub-subparagraph a. must shall
4319 be retained within the disability account of the Florida
4320 Retirement System Trust Fund. Any remaining account balance
4321 shall be transferred to the third-party administrator for
4322 disposition as provided under sub-subparagraph c. or sub
4323 subparagraph d., as appropriate.
4324 c. If the recipient returns to covered employment,
4325 transferred amounts must shall be deposited in individual
4326 accounts under the investment plan Public Employee Optional
4327 Retirement program, as directed by the member participant.
4328 Vested and nonvested amounts shall be separately accounted for
4329 as provided in s. 121.4501(6).
4330 d. If the recipient fails to return to covered employment
4331 upon recovery from disability:
4332 (I) Any remaining vested amount must shall be deposited in
4333 individual accounts under the investment plan Public Employee
4334 Optional Retirement program, as directed by the member
4335 participant, and is shall be payable as provided in subsection
4336 (1).
4337 (II) Any remaining nonvested amount must shall be held in a
4338 suspense account and is shall be forfeitable after 5 years as
4339 provided in s. 121.4501(6).
4340 3. If present value was reassigned from the pension plan
4341 defined benefit program to the disability program of the Florida
4342 Retirement System as provided under subparagraph (a)2., the full
4343 present value amount must shall be returned to the pension plan
4344 defined benefit account within the Florida Retirement System
4345 Trust Fund and the recipient’s affected individual’s associated
4346 retirement credit under the pension plan must defined benefit
4347 program shall be reinstated in full. Any benefit based upon such
4348 credit must shall be calculated as provided in s.
4349 121.091(4)(h)1.
4350 (l) Nonadmissible causes of disability.—A member is
4351 participant shall not be entitled to receive a disability
4352 retirement benefit if the disability results from any injury or
4353 disease sustained or inflicted as described in s. 121.091(4)(i).
4354 (m) Disability retirement of justice or judge by order of
4355 Supreme Court.—
4356 1. If a member participant is a justice of the Supreme
4357 Court, judge of a district court of appeal, circuit judge, or
4358 judge of a county court who has served for 6 years or more as an
4359 elected constitutional judicial officer, including service as a
4360 judicial officer in any court abolished pursuant to Art. V of
4361 the State Constitution, and who is retired for disability by
4362 order of the Supreme Court upon recommendation of the Judicial
4363 Qualifications Commission pursuant to s. 12, the provisions of
4364 Art. V of the State Constitution, the member’s participant’s
4365 Option 1 monthly disability benefit amount as provided in s.
4366 121.091(6)(a)1. shall be two-thirds of his or her monthly
4367 compensation as of the member’s participant’s disability
4368 retirement date. The member Such a participant may alternatively
4369 elect to receive an actuarially adjusted disability retirement
4370 benefit under any other option as provided in s. 121.091(6)(a),
4371 or to receive the normal benefit payable under the Public
4372 Employee Optional Retirement Program as set forth in subsection
4373 (1).
4374 2. If any justice or judge who is a member participant of
4375 the investment plan Public Employee Optional Retirement program
4376 of the Florida Retirement System is retired for disability by
4377 order of the Supreme Court upon recommendation of the Judicial
4378 Qualifications Commission pursuant to s. 12, the provisions of
4379 Art. V of the State Constitution, and elects to receive a
4380 monthly disability benefit under the provisions of this
4381 paragraph:
4382 a. Any present value amount that was transferred to his or
4383 her plan program account and all employer and employee
4384 contributions made to such account on his or her behalf, plus
4385 interest and earnings thereon, must shall be transferred to and
4386 deposited in the disability account of the Florida Retirement
4387 System Trust Fund; and
4388 b. The monthly disability benefits payable under this
4389 paragraph for any affected justice or judge retired from the
4390 Florida Retirement System pursuant to Art. V of the State
4391 Constitution shall be paid from the disability account of the
4392 Florida Retirement System Trust Fund.
4393 (n) Death of retiree or beneficiary.—Upon the death of a
4394 disabled retiree or beneficiary of the retiree thereof who is
4395 receiving monthly disability benefits under this subsection, the
4396 monthly benefits shall be paid through the last day of the month
4397 of death and shall terminate, or be adjusted, if applicable, as
4398 of that date in accordance with the optional form of benefit
4399 selected at the time of retirement. The department of Management
4400 Services may adopt rules necessary to administer this paragraph.
4401 (3) DEATH BENEFITS.—Under the Florida Public Employee
4402 Optional Retirement System Investment Plan Program:
4403 (a) Survivor benefits are shall be payable in accordance
4404 with the following terms and conditions:
4405 1. To the extent vested, Benefits are shall be payable only
4406 to a member’s participant’s beneficiary or beneficiaries as
4407 designated by the member participant as provided in s.
4408 121.4501(20).
4409 2. Benefits shall be paid by the third-party administrator
4410 or designated approved providers in accordance with the law, the
4411 contracts, and any applicable state board rule or policy.
4412 3. To receive benefits under this subsection, the member
4413 participant must be deceased.
4414 (b) Except as provided in paragraph (d), if the employment
4415 of a member is terminated by reason of his or her In the event
4416 of a participant’s death:,
4417 1. Before being vested, only the member’s accumulated
4418 contributions are payable to his or her designated beneficiary.
4419 2. After being vested, all vested accumulations as
4420 described in s. 121.4501(6), less withholding taxes remitted to
4421 the Internal Revenue Service, shall be distributed, as provided
4422 in paragraph (c) or as described in s. 121.4501(20), as if the
4423 member participant retired on the date of death. No other death
4424 benefits are shall be available for survivors of members
4425 participants under the investment plan Public Employee Optional
4426 Retirement Program, except for such benefits, or coverage for
4427 such benefits, as are otherwise provided by law or are
4428 separately provided afforded by the employer, at the employer’s
4429 discretion.
4430 (c) Upon receipt by the third-party administrator of a
4431 properly executed application for distribution of benefits under
4432 paragraph (b), the total accumulated benefit is shall be payable
4433 by the third-party administrator to the member’s participant’s
4434 surviving beneficiary or beneficiaries, as:
4435 1. A lump-sum distribution payable to the beneficiary or
4436 beneficiaries, or to the deceased member’s participant’s estate;
4437 2. An eligible rollover distribution on behalf of the
4438 surviving spouse of a deceased member participant, whereby all
4439 accrued benefits, plus interest and investment earnings, are
4440 paid from the deceased member’s participant’s account directly
4441 to the custodian of an eligible retirement plan, as described in
4442 s. 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4443 surviving spouse; or
4444 3. A partial lump-sum payment whereby a portion of the
4445 accrued benefit is paid to the deceased member’s participant’s
4446 surviving spouse or other designated beneficiaries, less
4447 withholding taxes remitted to the Internal Revenue Service, and
4448 the remaining amount is transferred directly to the custodian of
4449 an eligible retirement plan, as described in s. 402(c)(8)(B) of
4450 the Internal Revenue Code, on behalf of the surviving spouse.
4451 The proportions must be specified by the member participant or
4452 the surviving beneficiary.
4453
4454 This paragraph does not abrogate other applicable provisions of
4455 state or federal law providing for payment of death benefits.
4456 (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
4457 any person under the Florida Public Employee Optional Retirement
4458 System Investment Plan Program, and any contributions
4459 accumulated under such plan program, are not subject to
4460 assignment, execution, attachment, or any legal process, except
4461 for qualified domestic relations orders by a court of competent
4462 jurisdiction, income deduction orders as provided in s. 61.1301,
4463 and federal income tax levies.
4464 Section 27. Section 121.5911, Florida Statutes, is amended
4465 to read:
4466 121.5911 Disability retirement program; qualified status;
4467 rulemaking authority.—It is the intent of the Legislature that
4468 the disability retirement program for members participants of
4469 the Florida Public Employee Optional Retirement System
4470 Investment Plan Program as created in this act must meet all
4471 applicable requirements of federal law for a qualified plan. The
4472 department of Management Services shall seek a private letter
4473 ruling from the Internal Revenue Service on the disability
4474 retirement program for participants of the Public Employee
4475 Optional Retirement Program. Consistent with the private letter
4476 ruling, the department of Management Services shall adopt any
4477 necessary rules necessary required to maintain the qualified
4478 status of the disability retirement program and the Florida
4479 Retirement System’s pension System defined benefit plan.
4480 Section 28. Subsection (1) of section 121.70, Florida
4481 Statutes, is amended to read:
4482 121.70 Legislative purpose and intent.—
4483 (1) This part provides for a uniform system for funding
4484 benefits provided under the Florida Retirement System defined
4485 benefit program established under part I of this chapter,
4486 (referred to in this part as the pension plan, defined benefit
4487 program) and under the Florida Public Employee Optional
4488 Retirement System Investment Plan Program established under part
4489 II of this chapter, (referred to in this part as the investment
4490 plan optional retirement program). The Legislature recognizes
4491 and declares that the Florida Retirement System is a single
4492 retirement system, consisting of two retirement plans and other
4493 nonintegrated programs. Employers and employees participating in
4494 the Florida Retirement System collectively shall be responsible
4495 for making contributions to support the benefits provided
4496 afforded under both programs plans. The As provided in this
4497 part, employers and employees participating in the Florida
4498 Retirement System shall make contributions based upon uniform
4499 contribution rates determined as a percentage of the total
4500 payroll for each class or subclass of Florida Retirement System
4501 membership, irrespective of which retirement program the plan
4502 individual employee is enrolled in employees may elect. This
4503 shall be known as a uniform or blended contribution rate system.
4504 Section 29. Subsections (1) and (2) of section 121.71,
4505 Florida Statutes, are amended, present subsections (3) and (4)
4506 of that section are renumbered as subsections (4) and (7),
4507 respectively, and new subsections (3), (5), and (6) are added to
4508 that section, to read:
4509 121.71 Uniform rates; process; calculations; levy.—
4510 (1) In conducting the system actuarial study required under
4511 s. 121.031, the actuary shall follow all requirements specified
4512 thereunder to determine, by Florida Retirement System employee
4513 membership class, the dollar contribution amounts necessary for
4514 the next forthcoming fiscal year for the pension plan defined
4515 benefit program. In addition, the actuary shall determine, by
4516 Florida Retirement System membership class, based on an estimate
4517 for the forthcoming fiscal year of the gross compensation of
4518 employees participating in the investment plan optional
4519 retirement program, the dollar contribution amounts necessary to
4520 make the allocations required under ss. 121.72 and 121.73. For
4521 each employee membership class and subclass, the actuarial study
4522 must shall establish a uniform rate necessary to fund the
4523 benefit obligations under both Florida Retirement System
4524 retirement plans by dividing the sum of total dollars required
4525 by the estimated gross compensation of members in both plans.
4526 (2) Based on the uniform rates set forth in subsections
4527 subsection (3), (4), and (5), employers and employees shall make
4528 monthly contributions to the division as required under s.
4529 121.061(1) of Retirement, which shall initially deposit the
4530 funds into the Florida Retirement System Contributions Clearing
4531 Trust Fund. A change in a contribution rate is effective on the
4532 first day of the month for which a full month’s employer
4533 contribution may be made on or after the beginning date of the
4534 change. Beginning July 1, 2011, each employee shall contribute
4535 the contributions required in subsection (3) to the plan. The
4536 employer shall deduct the contribution from the employee’s
4537 monthly salary and submit it to the division. The contributions
4538 shall be reported as employer-paid employee contributions, and
4539 shall be credited to the account of the employee. The
4540 contributions shall be deducted from the employee’s salary
4541 before the computation of applicable federal taxes and treated
4542 as employer contributions under 26 U.S.C. 414(h)(2). Although
4543 designated as employee contributions, the employer specifies
4544 that the contributions are being paid by the employer in lieu of
4545 contributions by the employee. The employee does not have the
4546 option of choosing to receive the contributed amounts directly
4547 instead of having them paid to the plan. Such contributions are
4548 mandatory and each employee is deemed to have consented to the
4549 payroll deductions. Payment of an employee’s salary or wages,
4550 less the contribution, is a full and complete discharge and
4551 satisfaction of all claims and demands for the service rendered
4552 by employees during the period covered by the payment, except
4553 for claims to benefits to which they may be entitled under this
4554 chapter.
4555 (3) Effective July 1, 2011, the required employee
4556 retirement contribution rates for all members of the Florida
4557 Retirement System for both the pension and investment plans is 3
4558 percent of gross compensation.
4559 (4)(3) Required employer retirement contribution rates for
4560 each membership class and subclass of the Florida Retirement
4561 System for both retirement plans are as follows:
4562 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009Percentage ofGrossCompensation,EffectiveJuly 1, 2010
4563
4564 Regular Class 5.09% 8.69% 9.63%
4565 Special Risk Class 13.80% 19.76% 22.11%
4566 Special Risk Administrative Support Class 6.67% 11.39% 12.10%
4567 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 9.46% 13.32% 15.20%
4568 Elected Officers’ Class— Justices, Judges 12.02% 18.40% 20.65%
4569 Elected Officers’ Class— County Elected Officers 11.44% 15.37% 17.50%
4570 Senior Management Class 6.88% 11.96% 13.43%
4571 DROP 3.12% 9.80% 11.14%
4572 (5) In order to address unfunded actuarial liabilities of
4573 the system, the required employer retirement contribution rates
4574 for each membership class and subclass of the Florida Retirement
4575 System for both retirement plans are as follows:
4576
4577
4578 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011
4579 Regular Class 0.00%
4580 Special Risk Class 0.00%
4581 Special Risk Administrative Support Class 0.00%
4582 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.00%
4583 Elected Officers’ Class— Justices, Judges 0.00%
4584 Elected Officers’ Class— County Elected Officers 0.00%
4585 Senior Management Class 0.00%
4586 DROP 0.00%
4587 (6) If a member is reported under an incorrect membership
4588 class and the amount of contributions reported and remitted are
4589 less than the amount required, the employer shall owe the
4590 difference plus the delinquent fee of 1 percent for each
4591 calendar month or part thereof that the contributions should
4592 have been paid. This delinquent assessment may not be waived. If
4593 the contributions reported and remitted are more than the amount
4594 required, the employer shall receive a credit to be applied
4595 against future contributions owed.
4596 (7)(4) The state actuary shall recognize and use an
4597 appropriate level of available excess assets of the Florida
4598 Retirement System Trust Fund to offset the difference between
4599 the normal costs of the Florida Retirement System and the
4600 statutorily prescribed contribution rates.
4601 Section 30. Section 121.72, Florida Statutes, is amended to
4602 read:
4603 121.72 Allocations to investment plan member optional
4604 retirement program participant accounts; percentage amounts.—
4605 (1) The allocations established in subsection (4) shall
4606 fund retirement benefits under the investment plan under part II
4607 of this chapter optional retirement program and shall be
4608 transferred monthly by the division of Retirement from the
4609 Florida Retirement System Contributions Clearing Trust Fund to
4610 the third-party administrator for deposit in each participating
4611 employee’s individual account based on the membership class of
4612 the employee participant.
4613 (2) The allocations are stated as a percentage of each
4614 investment plan member’s optional retirement program
4615 participant’s gross compensation for the calendar month. A
4616 change in a contribution percentage is effective the first day
4617 of the month for which retirement contributions a full month’s
4618 employer contribution may be made on or after the beginning date
4619 of the change. Contribution percentages may be modified by
4620 general law.
4621 (3) Employer and employee participant contributions to
4622 member’s participant accounts shall be accounted for separately.
4623 Participant contributions may be made only if expressly
4624 authorized by law. Interest and investment earnings on
4625 contributions shall accrue on a tax-deferred basis until
4626 proceeds are distributed.
4627 (4) Effective July 1, 2011 July 1, 2002, allocations from
4628 the Florida Retirement System Contributions Clearing Trust Fund
4629 to investment plan member optional retirement program
4630 participant accounts, including employee contributions required
4631 under s. 121.71(3), are shall be as follows:
4632 Membership Class Percentage of Gross Compensation
4633 Regular Class 9.00%
4634 Special Risk Class 20.00%
4635 Special Risk Administrative Support Class 11.35%
4636 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.40%
4637 Elected Officers’ Class— Justices, Judges 18.90%
4638 Elected Officers’ Class— County Elected Officers 16.20%
4639 Senior Management Service Class 10.95%
4640 Section 31. Section 121.73, Florida Statutes, is amended to
4641 read:
4642 121.73 Allocations for member optional retirement program
4643 participant disability coverage; percentage amounts.—
4644 (1) The allocations established in subsection (3) shall be
4645 used to provide disability coverage for members of the
4646 investment plan participants in the optional retirement program
4647 and shall be transferred monthly by the division of Retirement
4648 from the Florida Retirement System Contributions Clearing Trust
4649 Fund to the disability account of the Florida Retirement System
4650 Trust Fund.
4651 (2) The allocations are stated as a percentage of each
4652 investment plan member’s optional retirement program
4653 participant’s gross compensation for the calendar month. A
4654 change in a contribution percentage is effective the first day
4655 of the month for which retirement contributions a full month’s
4656 employer contribution may be made on or after the beginning date
4657 of the change. Contribution percentages may be modified by
4658 general law.
4659 (3) Effective July 1, 2002, allocations from the Florida
4660 Retirement System FRS Contribution Clearing Fund to provide
4661 disability coverage for members of the investment plan
4662 participants in the optional retirement program, and to offset
4663 the costs of administering said coverage, shall be as follows:
4664 Membership Class Percentage of Gross Compensation
4665 Regular Class 0.25%
4666 Special Risk Class 1.33%
4667 Special Risk Administrative Support Class 0.45%
4668 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%
4669 Elected Officers’ Class— Justices, Judges 0.73%
4670 Elected Officers’ Class— County Elected Officers 0.41%
4671 Senior Management Service Class 0.26%
4672 (4) Effective July 1, 2011, allocations from the Florida
4673 Retirement System Contribution Clearing Fund to provide
4674 disability coverage for members of the investment plan and to
4675 offset the costs of administering such coverage shall be the
4676 actuarially indicated amount necessary to fund the statutorily
4677 authorized benefit for the plan year as determined by the
4678 department’s actuary.
4679 Section 32. Section 121.74, Florida Statutes, is amended to
4680 read:
4681 121.74 Administrative and educational expenses.—In addition
4682 to contributions required under ss. s. 121.71 and 121.73,
4683 effective July 1, 2010, through June 30, 2014, employers
4684 participating in the Florida Retirement System shall contribute
4685 an amount equal to 0.03 percent of the payroll reported for each
4686 class or subclass of Florida Retirement System membership;
4687 effective July 1, 2014, the contribution rate shall be 0.04
4688 percent of the payroll reported for each class or subclass of
4689 membership. The amount contributed shall be transferred by the
4690 division of Retirement from the Florida Retirement System
4691 Contributions Clearing Trust Fund to the state board’s Board of
4692 Administration’s administrative trust fund to offset the costs
4693 of administering the investment plan optional retirement program
4694 and the costs of providing educational services to members
4695 participating participants in the pension plan defined benefit
4696 program and the investment plan optional retirement program.
4697 Approval of the trustees is required before the expenditure of
4698 these funds. Payments for third-party administrative or
4699 educational expenses shall be made only pursuant to the terms of
4700 the approved contracts for such services.
4701 Section 33. Section 121.75, Florida Statutes, is amended to
4702 read:
4703 121.75 Allocation for pension plan defined benefit
4704 program.—After making the transfers required pursuant to ss.
4705 121.71, 121.72, 121.73, and 121.74, the monthly balance of funds
4706 in the Florida Retirement System Contributions Clearing Trust
4707 Fund shall be transferred to the Florida Retirement System Trust
4708 Fund to pay the costs of providing pension plan defined benefit
4709 program benefits and plan administrative costs under the pension
4710 plan defined benefit program.
4711 Section 34. Section 121.77, Florida Statutes, is amended to
4712 read:
4713 121.77 Deductions from member participant accounts.—The
4714 State Board of Administration may authorize the third-party
4715 administrator to deduct reasonable fees and apply appropriate
4716 charges to investment plan member optional retirement program
4717 participant accounts. In no event may shall administrative and
4718 educational expenses exceed the portion of employer
4719 contributions earmarked for such expenses under this part,
4720 except for reasonable administrative charges assessed against
4721 member participant accounts of persons for whom no employer
4722 contributions are made during the calendar quarter. Investment
4723 management fees shall be deducted from member participant
4724 accounts, pursuant to the terms of the contract between the
4725 provider and the board.
4726 Section 35. Subsections (1) and (3) of section 121.78,
4727 Florida Statutes, are amended to read:
4728 121.78 Payment and distribution of contributions.—
4729 (1) Contributions made pursuant to this part, including the
4730 employee contributions, shall be paid by the employer to the
4731 division of Retirement by electronic funds transfer no later
4732 than the 5th working day of the month immediately following the
4733 month during which the payroll period ended. Accompanying
4734 payroll data must be transmitted to the division concurrent with
4735 the contributions.
4736 (3)(a) Employer and employee contributions and accompanying
4737 payroll data received after the 5th working day of the month are
4738 considered late. The employer shall be assessed by the division
4739 of Retirement a penalty of 1 percent of the contributions due
4740 for each calendar month or part thereof that the contributions
4741 or accompanying payroll data are late. Proceeds from the 1
4742 percent assessment against contributions made on behalf of
4743 members of the pension plan participants of the defined benefit
4744 program shall be deposited in the Florida Retirement System
4745 Trust Fund, and proceeds from the 1 percent 1-percent assessment
4746 against contributions made on behalf of members of the
4747 investment plan participants of the optional retirement program
4748 shall be transferred to the third-party administrator for
4749 deposit into member participant accounts, as provided in
4750 paragraph (c) (b).
4751 (b) Retirement contributions paid for a prior period shall
4752 be charged a delinquent fee of 1 percent for each calendar month
4753 or part thereof that the contributions should have been paid.
4754 This includes prior period contributions due to incorrect wages,
4755 contributions from an earlier report or wages, and contributions
4756 that should have been reported but were not. The delinquent
4757 assessments may not be waived.
4758 (c)(b) If employee contributions or contributions made by
4759 an employer on behalf of members of the investment plan
4760 participants of the optional retirement program or accompanying
4761 payroll data are not received within the calendar month they are
4762 due, including, but not limited to, contribution adjustments as
4763 a result of employer errors or corrections, and if that
4764 delinquency results in market losses to members participants,
4765 the employer shall reimburse each member’s participant’s account
4766 for market losses resulting from the late contributions. If a
4767 member participant has terminated employment and taken a
4768 distribution, the member participant is responsible for
4769 returning any excess contributions erroneously provided by
4770 employers, adjusted for any investment gain or loss incurred
4771 during the period such excess contributions were in the member’s
4772 participant’s account. The state board or its designated agent
4773 shall communicate to terminated members participants any
4774 obligation to repay such excess contribution amounts. However,
4775 the state board, its designated agents, the Florida Public
4776 Employee Optional Retirement System Investment Plan Program
4777 Trust Fund, the department, or the Florida Retirement System
4778 Trust Fund may not incur any loss or gain as a result of an
4779 employer’s correction of such excess contributions. The third
4780 party administrator, hired by the state board pursuant to s.
4781 121.4501(8), shall calculate the market losses for each affected
4782 member participant. If contributions made on behalf of members
4783 of the investment plan participants of the optional retirement
4784 program or accompanying payroll data are not received within the
4785 calendar month due, the employer shall also pay the cost of the
4786 third-party administrator’s calculation and reconciliation
4787 adjustments resulting from the late contributions. The third
4788 party administrator shall notify the employer of the results of
4789 the calculations and the total amount due from the employer for
4790 such losses and the costs of calculation and reconciliation. The
4791 employer shall remit to the division of Retirement the amount
4792 due within 30 working days after the date of the penalty notice
4793 sent by the division. The division shall transfer that amount to
4794 the third-party administrator, which shall deposit proceeds from
4795 the 1 percent 1-percent assessment and from individual market
4796 losses into member participant accounts, as appropriate. The
4797 state board may adopt rules to administer the provisions
4798 regarding late contributions, late submission of payroll data,
4799 the process for reimbursing member participant accounts for
4800 resultant market losses, and the penalties charged to the
4801 employers.
4802 (d) If employee contributions reported by an employer on
4803 behalf of the employee are reduced as a result of employer
4804 errors or corrections and the employee has terminated employment
4805 and taken a refund or distribution, the employer shall be billed
4806 and is responsible for recovering from the employee any excess
4807 contributions erroneously provided by the employer.
4808 (e)(c) Delinquency fees specified in paragraph (a) may be
4809 waived by the division of Retirement, with regard to pension
4810 plan defined benefit program contributions, and by the state
4811 board, with regard to investment plan optional retirement
4812 program contributions, only if, in the opinion of the division
4813 or the board, as appropriate, exceptional circumstances beyond
4814 the employer’s control prevented remittance by the prescribed
4815 due date notwithstanding the employer’s good faith efforts to
4816 effect delivery. Such a waiver of delinquency may be granted an
4817 employer only once each plan state fiscal year.
4818 (f) If the employer submits excess employer or employee
4819 contributions, the employer shall receive a credit to be applied
4820 against future contributions owed. The employer is responsible
4821 for reimbursing the employee for any excess contributions
4822 submitted if any return of such an erroneous excess pretax
4823 contribution by the program is made within 1 year after making
4824 erroneous contributions or such other period as allowed under
4825 applicable Internal Revenue Service guidance.
4826 (g)(d) If contributions made by an employer on behalf of
4827 members of the investment program participants in the optional
4828 retirement program are delayed in posting to member participant
4829 accounts due to acts of God beyond the control of the division
4830 of Retirement, the state board, or the third-party
4831 administrator, as applicable, market losses resulting from the
4832 late contributions are not payable to the members participants.
4833 Section 36. Subsection (1) of section 175.121, Florida
4834 Statutes, is amended to read:
4835 175.121 Department of Revenue and Division of Retirement to
4836 keep accounts of deposits; disbursements.—For any municipality
4837 or special fire control district having a chapter or local law
4838 plan established pursuant to this chapter:
4839 (1) The Department of Revenue shall keep a separate account
4840 of all moneys collected for each municipality and each special
4841 fire control district pursuant to under the provisions of this
4842 chapter. All moneys so collected must be transferred to the
4843 Police and Firefighters’ Premium Tax Trust Fund and shall be
4844 separately accounted for by the division. The moneys budgeted as
4845 necessary to pay the expenses of the division for the daily
4846 oversight and monitoring of the firefighters’ pension plans
4847 under this chapter and for the oversight and actuarial reviews
4848 conducted under part VII of chapter 112 are annually
4849 appropriated from the following sources in the order listed:
4850 (a) Interest and investment income earned on the moneys
4851 collected for each municipality or special fire control district
4852 and deposited in the Police and Firefighters’ Premium Tax Trust
4853 Fund. Interest and investment income remaining thereafter in the
4854 trust fund which is unexpended and otherwise unallocated by law
4855 shall revert to the General Revenue Fund on June 30 of each
4856 year.
4857 (b) Moneys collected for each municipality or special fire
4858 control district and deposited in the Police and Firefighters’
4859 Premium Tax Trust Fund. Moneys used pursuant to this paragraph
4860 shall be reimbursed during years in which there is an excess of
4861 interest and investment income under paragraph (a).
4862 Section 37. Subsection (1) of section 175.341, Florida
4863 Statutes, is amended to read:
4864 175.341 Duties of Division of Retirement; rulemaking
4865 authority; investments by State Board of Administration.—
4866 (1) The division is shall be responsible for the daily
4867 oversight and monitoring of the for actuarial soundness of the
4868 firefighters’ pension plans, whether chapter or local law plans,
4869 established under this chapter, for receiving and holding the
4870 premium tax moneys collected under this chapter, and, upon
4871 determining compliance with the provisions of this chapter, for
4872 disbursing those moneys to the firefighters’ pension plans. The
4873 funds necessary to pay expenses for such administration shall be
4874 annually appropriated as provided in s. 175.121(1) from the
4875 interest and investment income earned on moneys deposited in the
4876 trust fund.
4877 Section 38. Subsection (1) of section 185.10, Florida
4878 Statutes, is amended to read:
4879 185.10 Department of Revenue and Division of Retirement to
4880 keep accounts of deposits; disbursements.—For any municipality
4881 having a chapter plan or local law plan under this chapter:
4882 (1) The Department of Revenue shall keep a separate account
4883 of all moneys collected for each municipality pursuant to under
4884 the provisions of this chapter. All moneys so collected must be
4885 transferred to the Police and Firefighters’ Premium Tax Trust
4886 Fund and shall be separately accounted for by the division. The
4887 moneys budgeted as necessary to pay the expenses of the division
4888 for the daily oversight and monitoring of the police officers’
4889 retirement plans under this chapter and for the oversight and
4890 actuarial reviews conducted under part VII of chapter 112 are
4891 annually appropriated from the following sources in the order
4892 listed:
4893 (a) Interest and investment income earned on the moneys
4894 collected for each municipality or special fire control district
4895 and deposited in the Police and Firefighters’ Premium Tax Trust
4896 Fund. Interest and investment income remaining thereafter in the
4897 trust fund which is unexpended and otherwise unallocated by law
4898 shall revert to the General Revenue Fund on June 30 of each
4899 year.
4900 (b) Moneys collected for each municipality or special fire
4901 control district and deposited in the Police and Firefighters’
4902 Premium Tax Trust Fund. Moneys used pursuant to this paragraph
4903 shall be reimbursed during years in which there is an excess of
4904 interest and investment income under paragraph (a).
4905 Section 39. Subsection (1) of section 185.23, Florida
4906 Statutes, is amended to read:
4907 185.23 Duties of Division of Retirement; rulemaking
4908 authority; investments by State Board of Administration.—
4909 (1) The division is shall be responsible for the daily
4910 oversight and monitoring of the for actuarial soundness of the
4911 municipal police officers’ retirement plans, whether chapter or
4912 local law plans, established under this chapter, for receiving
4913 and holding the premium tax moneys collected under this chapter,
4914 and, upon determining compliance with the provisions of this
4915 chapter, for disbursing those moneys to the municipal police
4916 officers’ retirement plans. The funds to pay the expenses for
4917 such administration shall be annually appropriated as provided
4918 in s. 185.10(1) from the interest and investment income earned
4919 on moneys deposited in the trust fund.
4920 Section 40. Subsection (1) of section 250.22, Florida
4921 Statutes, is amended to read:
4922 250.22 Retirement.—
4923 (1) Any person who is at least 62 years of age and who has
4924 completed at least not less than 30 years of service as an
4925 officer or enlisted person in the Florida National Guard,
4926 (exclusive of time served on the inactive or retired lists,) on,
4927 before, or subsequent to the passage of this section is eligible
4928 upon application, whether on the active or retired list of the
4929 Florida National Guard, to be retired under the provisions of
4930 this section at the highest rank attained while serving in the
4931 Florida National Guard or the federal military forces.
4932 (a) Such person, and shall initially receive pay in an
4933 amount equal to one-half of the base pay as is now or hereafter
4934 may be prescribed on the date of retirement in the applicable
4935 pay tables for similar grades and periods of service of
4936 personnel in the United States Army or Air Force if; provided
4937 that, in computing service in the Florida National Guard,
4938 service in federal military forces during a period of war or
4939 upon order of the President of the United States, in any
4940 military duty, where the applicant has been inducted from the
4941 Florida National Guard is shall be included; and provided
4942 further that, in computing such service performed after July 1,
4943 1955, only federally recognized service is shall be included.
4944 Eligibility for retirement under this section is in addition to
4945 any other retirement that such person is eligible to receive;
4946 provided, however, such that retirement pay under this section
4947 shall be reduced by any amount of retirement pay, pension, or
4948 compensation which such person is eligible to receive from the
4949 Federal Government for military service. Unless otherwise
4950 provided by law, effective July 1, 2011, the retirement pay of a
4951 member or former member of the Florida National Guard may not be
4952 recomputed to reflect an increase in the rates of base pay for
4953 active members of the armed forces.
4954 (b) Effective July 1, 2012, and annually thereafter on July
4955 1, the Division of Retirement shall adjust the retirement pay of
4956 persons eligible under this section based on s. 121.101(3).
4957 Section 41. Paragraph (a) of subsection (4) of section
4958 1012.875, Florida Statutes, is amended to read:
4959 1012.875 State Community College System Optional Retirement
4960 Program.—Each community college may implement an optional
4961 retirement program, if such program is established therefor
4962 pursuant to s. 1001.64(20), under which annuity or other
4963 contracts providing retirement and death benefits may be
4964 purchased by, and on behalf of, eligible employees who
4965 participate in the program, in accordance with s. 403(b) of the
4966 Internal Revenue Code. Except as otherwise provided herein, this
4967 retirement program, which shall be known as the State Community
4968 College System Optional Retirement Program, may be implemented
4969 and administered only by an individual community college or by a
4970 consortium of community colleges.
4971 (4)(a) Through June 30, 2011, each college must contribute
4972 on behalf of each program member participant an amount equal to
4973 10.43 percent of the employee’s participant’s gross monthly
4974 compensation. Effective July 1, 2011, each member shall
4975 contribute an amount equal to the employee contribution required
4976 under s. 121.71(3). Effective July 1, 2011, each employer shall
4977 contribute on behalf of each program member an amount equal to
4978 the difference between 10.43 percent of the employee’s gross
4979 monthly compensation and the employee’s required contribution
4980 based on the employee’s gross monthly compensation. The college
4981 shall deduct an amount approved by the district board of
4982 trustees of the college to provide for the administration of the
4983 optional retirement program. Payment of this contribution must
4984 be made either directly by the college or through the program
4985 administrator to the designated company contracting for payment
4986 of benefits to the program member participant.
4987 Section 42. The Legislature finds that a proper and
4988 legitimate state purpose is served when employees and retirees
4989 of the state and its political subdivisions, and the dependents,
4990 survivors, and beneficiaries of such employees and retirees, are
4991 extended the basic protections afforded by governmental
4992 retirement systems. These persons must be provided benefits that
4993 are fair and adequate and that are managed, administered, and
4994 funded in an actuarially sound manner, as required by s. 14,
4995 Article X of the State Constitution and part VII of chapter 112,
4996 Florida Statutes. Therefore, the Legislature determines and
4997 declares that this act fulfills an important state interest.
4998 Section 43. The Division of Statutory Revision is requested
4999 to rename the title of part II of chapter 121, Florida Statutes,
5000 as “Florida Retirement System Investment Plan.”
5001 Section 44. (1) Effective upon this act becoming a law, the
5002 State Board of Administration and the Department of Management
5003 Services shall, as soon as practicable, request a determination
5004 letter and private letter ruling from the United States Internal
5005 Revenue Service. If the Internal Revenue Service refuses to act
5006 upon a request for a private letter ruling, the legal opinion
5007 from a qualified tax attorney or firm may be substituted for the
5008 private letter ruling.
5009 (2) If the board or the department receives notification
5010 from the United States Internal Revenue Service that this act or
5011 any portion of this act will cause the Florida Retirement
5012 System, or a portion thereof, to be disqualified for tax
5013 purposes under the Internal Revenue Code, then that portion does
5014 not apply. Upon such notice, the state board and the department
5015 shall notify the presiding officers of the Legislature.
5016 Section 45. During the 90-day period beginning on the
5017 effective date of this act, a Florida Retirement System employer
5018 may contribute to the retirement account of a current employee
5019 who is retired from the Florida Retirement System the amount
5020 that would have been contributed had the employee been allowed
5021 to reenroll in the Florida Retirement System during the 2010
5022 2011 fiscal year.
5023 Section 46. This act shall take effect June 30, 2011.