Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1392
       
       
       
       
       
       
                                Barcode 138436                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             04/30/2013 01:42 PM       .                                
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       Senator Latvala moved the following:
       
    1         Senate Amendment (with directory and title amendments)
    2  
    3         Between lines 1342 and 1343
    4  insert:
    5         (3) DEATH BENEFITS.—Under the Florida Retirement System
    6  Investment Plan:
    7         (a)1. Survivor benefits are payable in accordance with the
    8  following terms and conditions:
    9         a.1. To the extent vested, benefits are payable only to a
   10  member’s beneficiary or beneficiaries as designated by the
   11  member as provided in s. 121.4501(20).
   12         b.2. Benefits shall be paid by the third-party
   13  administrator or designated approved providers in accordance
   14  with the law, the contracts, and any applicable state board rule
   15  or policy.
   16         c.3. To receive benefits, the member must be deceased.
   17         2.(b) In the event of a member’s death, all vested
   18  accumulations as described in s. 121.4501(6), less withholding
   19  taxes remitted to the Internal Revenue Service, shall be
   20  distributed, as provided in subparagraph 3. paragraph (c) or as
   21  described in s. 121.4501(20), as if the member retired on the
   22  date of death. No other death benefits are available for
   23  survivors of members, except for benefits, or coverage for
   24  benefits, as are otherwise provided by law or separately
   25  provided by the employer, at the employer’s discretion.
   26         3.(c) Upon receipt by the third-party administrator of a
   27  properly executed application for distribution of benefits, the
   28  total accumulated benefit is payable by the third-party
   29  administrator to the member’s surviving beneficiary or
   30  beneficiaries, as:
   31         a.1. A lump-sum distribution payable to the beneficiary or
   32  beneficiaries, or to the deceased member’s estate;
   33         b.2. An eligible rollover distribution, if permitted, on
   34  behalf of the surviving spouse of a deceased member, whereby all
   35  accrued benefits, plus interest and investment earnings, are
   36  paid from the deceased member’s account directly to the
   37  custodian of an eligible retirement plan, as described in s.
   38  402(c)(8)(B) of the Internal Revenue Code, on behalf of the
   39  surviving spouse; or
   40         c.3. A partial lump-sum payment whereby a portion of the
   41  accrued benefit is paid to the deceased member’s surviving
   42  spouse or other designated beneficiaries, less withholding taxes
   43  remitted to the Internal Revenue Service, and the remaining
   44  amount is transferred directly to the custodian of an eligible
   45  retirement plan, if permitted, as described in s. 402(c)(8)(B)
   46  of the Internal Revenue Code, on behalf of the surviving spouse.
   47  The proportions must be specified by the member or the surviving
   48  beneficiary.
   49         (b)1. Each employer participating in the Florida Retirement
   50  System shall purchase a life insurance policy from a state term
   51  contract for each member of the Special Risk Class of the
   52  investment plan who is initially enrolled in the Florida
   53  Retirement System on or after July 1, 2014.
   54         2. The Department of Management Services shall procure a
   55  life insurance product on a state term contract with the
   56  following attributes:
   57         a. The benefit must be limited to Special Risk Class
   58  members who are killed in the line of duty.
   59         b. The benefit must be equal to 10 times the employee’s
   60  annual salary.
   61         c. The benefit must provide for monthly benefit payments,
   62  including interest, to be paid to the designated beneficiary or
   63  beneficiaries over a 20-year period.
   64         d. The product must be guaranteed issue.
   65         e. The product must provide level premium rates for the
   66  term of the policy.
   67         f. Any administrative fees shall be the responsibility of
   68  the employer.
   69         3. Survivor benefits provided by the life insurance policy
   70  are payable in addition to the survivor benefits provided under
   71  paragraph (a).
   72  
   73  This subsection paragraph does not abrogate other applicable
   74  provisions of state or federal law providing for payment of
   75  death benefits.
   76  
   77  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
   78         And the directory clause is amended as follows:
   79         Delete lines 1244 - 1245
   80  and insert:
   81         Section 7. Paragraph (b) of subsection (2) and subsection
   82  (3) of section 121.591, Florida Statutes, are amended to read:
   83  
   84  ================= T I T L E  A M E N D M E N T ================
   85         And the title is amended as follows:
   86         Delete line 45
   87  and insert:
   88         relating to disability retirement benefits; providing
   89         an additional death benefit to specified members of
   90         the Special Risk Class; requiring each employer
   91         participating in the Florida Retirement System to
   92         purchase a life insurance policy for each member of
   93         the Special Risk Class of the investment plan
   94         initially enrolled on or after a specified date;
   95         requiring the Department of Management Services to
   96         procure a life insurance product with certain
   97         attributes on a state term contract; amending