House Bill 1013er

CODING: Words stricken are deletions; words underlined are additions.





    ENROLLED

    1999 Legislature                                    CS/HB 1013



  1

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.091, F.S., relating to

  4         benefits payable under the Florida Retirement

  5         System; providing for payment of federally

  6         limited benefits through the Florida Retirement

  7         System Preservation of Benefits Plan; creating

  8         s. 121.1001, F.S.; creating the Florida

  9         Retirement System Preservation of Benefits

10         Plan; providing for eligibility; providing for

11         benefits and contributions; providing for

12         administration; providing a finding of

13         important state interest; providing an

14         effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Paragraph (d) is added to subsection (14)

19  of section 121.091, Florida Statutes, 1998 Supplement, to

20  read:

21         121.091  Benefits payable under the system.--Benefits

22  may not be paid under this section unless the member has

23  terminated employment as provided in s. 121.021(39)(a) or

24  begun participation in the Deferred Retirement Option Program

25  as provided in subsection (13), and a proper application has

26  been filed in the manner prescribed by the division. The

27  division may cancel an application for retirement benefits

28  when the member or beneficiary fails to timely provide the

29  information and documents required by this chapter and the

30  division's rules. The division shall adopt rules establishing

31  procedures for application for retirement benefits and for the


                                  1

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                                    CS/HB 1013



  1  cancellation of such application when the required information

  2  or documents are not received.

  3         (14)  PAYMENT OF BENEFITS.--This subsection applies to

  4  the payment of benefits to a payee (retiree or beneficiary)

  5  under the Florida Retirement System:

  6         (d)  A payee whose retirement benefits are reduced by

  7  the application of maximum benefit limits under s. 415(b) of

  8  the Internal Revenue Code, as specified in s. 121.30(5), shall

  9  have the portion of his or her calculated benefit in the

10  Florida Retirement System defined benefit plan which exceeds

11  such federal limitation paid through the Florida Retirement

12  System Preservation of Benefits Plan, as provided in s.

13  121.1001.

14         Section 2.  Section 121.1001, Florida Statutes, is

15  created to read:

16         121.1001  Florida Retirement System Preservation of

17  Benefits Plan.--Effective July 1, 1999, the Florida Retirement

18  System Preservation of Benefits Plan is established as a

19  qualified governmental excess benefit arrangement pursuant to

20  s. 415(m) of the Internal Revenue Code.  The Preservation of

21  Benefits Plan is created as a separate portion of the Florida

22  Retirement System, for the purpose of providing benefits to a

23  payee (retiree or beneficiary) of the Florida Retirement

24  System whose benefits would otherwise be limited by s. 415(b)

25  of the Internal Revenue Code.

26         (1)  ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF

27  BENEFITS PLAN.--A payee of the Florida Retirement System shall

28  participate in the Preservation of Benefits Plan whenever his

29  or her earned benefit under the Florida Retirement System

30  defined benefit plan exceeds the benefit maximum established

31  under s. 415(b) of the Internal Revenue Code. Participation in


                                  2

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                                    CS/HB 1013



  1  the Preservation of Benefits Plan shall continue for as long

  2  as the payee's earned benefit under the Florida Retirement

  3  System defined benefit plan is reduced by the application of

  4  the maximum benefit limit under s. 415(b) of the Internal

  5  Revenue Code.

  6         (2)  BENEFITS PAYABLE UNDER THE PRESERVATION OF

  7  BENEFITS PLAN.--

  8         (a)  On and after July 1, 1999, the Division of

  9  Retirement shall pay to each eligible payee of the Florida

10  Retirement System who retires before, on, or after such date,

11  a supplemental retirement benefit equal to the difference

12  between the amount of the payee's monthly retirement benefit

13  which would have been payable under the Florida Retirement

14  System defined benefit plan if not for a reduction due to the

15  application of s. 415(b) of the Internal Revenue Code and the

16  reduced monthly retirement benefit as paid to the payee.  The

17  Preservation of Benefits Plan benefit shall be computed and

18  payable under the same terms and conditions and to the same

19  person as would have applied under the Florida Retirement

20  System defined benefit plan were it not for the federal

21  limitation.

22         (b)  The benefits under the Preservation of Benefits

23  Plan shall not be subject to execution, garnishment,

24  attachment, or any other process of any court with respect to

25  a payee under the Preservation of Benefits Plan except for

26  qualified domestic relations orders by a court of competent

27  jurisdiction, income deduction orders as provided in s.

28  61.1301, and federal income tax levies.

29         (3)  CONTRIBUTIONS.--

30         (a)  The Preservation of Benefits Plan shall be

31  unfunded within the meaning of the federal tax laws.  No payee


                                  3

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                                    CS/HB 1013



  1  contributions or deferrals, direct or indirect, by election or

  2  otherwise shall be made or allowed under the Preservation of

  3  Benefits Plan.  Benefits due under the Preservation of

  4  Benefits Plan as determined by the Division of Retirement

  5  shall be paid timely from the Preservation of Benefits Plan

  6  Trust Fund, if created by law.

  7         (b)  Florida Retirement System monthly retirement

  8  contributions paid to the Division of Retirement by the

  9  payee's past covered employer shall be reduced by the employer

10  as directed by the Division of Retirement by an amount

11  necessary to meet the requirements for payment of restored

12  benefits under the Preservation of Benefits Plan.

13         (4)  ADMINISTRATION.--

14         (a)  The Division of Retirement shall compile and

15  maintain all records necessary or appropriate for the

16  administration of the Preservation of Benefits Plan,

17  including, but not limited to, the making of requisite

18  calculations and disbursements under the Preservation of

19  Benefits Plan.

20         (b)  The Division of Retirement is authorized to adopt

21  rules pursuant to ss. 120.54 and 120.536(1) necessary to

22  implement the provisions of this section in accordance with s.

23  415(m) of the Internal Revenue Code, including rules providing

24  the procedures by which the Preservation of Benefits Plan is

25  to be administered.

26         Section 3.  The Legislature finds that a proper and

27  legitimate state purpose is served when employees and retirees

28  of the state and of its political subdivisions and the

29  dependents, survivors, and beneficiaries of such employees and

30  retirees, are extended the basic protections afforded by

31  governmental retirement systems that provide fair and adequate


                                  4

CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                                    CS/HB 1013



  1  benefits and that are managed, administered, and funded in an

  2  actuarially sound manner, as required by s. 14, Article X of

  3  the Florida Constitution and part VII of chapter 112, Florida

  4  Statutes.  Therefore, the Legislature hereby determines and

  5  declares that the provisions of this act fulfill an important

  6  state interest.

  7         Section 4.  This act shall take effect July 1, 1999.

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  5