CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Webster moved the following amendment:
12
13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
15
16 and insert:
17 Section 1. Subsections (4) and (5) of section 112.63,
18 Florida Statutes, are amended to read:
19 112.63 Actuarial reports and statements of actuarial
20 impact; review.--
21 (4) Upon receipt, pursuant to subsection (2), of an
22 actuarial report, or upon receipt, pursuant to subsection (3),
23 of a statement of actuarial impact, the division shall
24 acknowledge such receipt, but shall only review and comment on
25 each retirement system's or plan's the actuarial valuations at
26 least on a triennial basis and statements. If the division
27 finds that the actuarial valuation is not complete, accurate,
28 or based on reasonable assumptions, or if the division does
29 not receive the actuarial report or statement of actuarial
30 impact, the division shall notify the local government and
31 request appropriate adjustment. If, after a reasonable period
1
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 of time, a satisfactory adjustment is not made, the affected
2 local government or the division may petition for a hearing
3 under the provisions of ss. 120.569 and 120.57. If the
4 administrative law judge recommends in favor of the division,
5 the division shall perform an actuarial review or prepare the
6 statement of actuarial impact. The cost to the division of
7 performing such actuarial review or preparing such statement
8 shall be charged to the governmental entity of which the
9 employees are covered by the retirement system or plan. If
10 payment of such costs is not received by the division within
11 60 days after receipt by the governmental entity of the
12 request for payment, the division shall certify to the
13 Comptroller the amount due, and the Comptroller shall pay such
14 amount to the division from any funds payable to the
15 governmental entity of which the employees are covered by the
16 retirement system or plan. If the administrative law judge
17 recommends in favor of the local retirement system and the
18 division performs an actuarial review, the cost to the
19 division of performing the actuarial review shall be paid by
20 the division.
21 (5) Payments made to the fund as required by this
22 chapter shall be based on the normal and past service costs
23 contained in the state-accepted version of the most recent
24 actuarial valuation, subject to being state-accepted.
25 Section 2. Subsection (2) of section 112.65, Florida
26 Statutes, is amended to read:
27 112.65 Limitation of benefits.--
28 (2) No member of a retirement system or plan covered
29 by this part who is not now a member of such plan shall be
30 allowed to receive a retirement benefit or pension which is in
31 part or in whole based upon any service with respect to which
2
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 the member is already receiving, or will receive in the
2 future, a retirement benefit or pension from a different
3 employer's another retirement system or plan. This
4 restriction does not apply to social security benefits or
5 federal benefits under chapter 67, Title 10, U.S. Code.
6 Section 3. Paragraph (b) of subsection (2) of section
7 and paragraph (e) of subsection (3) of section 121.011,
8 Florida Statutes, 1998 Supplement, are amended to read:
9 121.011 Florida Retirement System.--
10 (2) CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--
11 (b) The chapters or retirement system laws named in
12 paragraph (a) are hereby consolidated as separate instruments
13 appended to the "Florida Retirement System Act" established by
14 this chapter, and the administration of said chapters or
15 retirement systems shall be consolidated with the
16 administration of the Florida Retirement System established by
17 this chapter, and the Florida Retirement System shall assume
18 all liabilities related to the payment of benefits to members
19 and their beneficiaries under the respective retirement
20 systems of the members and their beneficiaries.
21 (3) PRESERVATION OF RIGHTS.--
22 (e) Any member of the Florida Retirement System or any
23 member of an existing system under this chapter on July 1,
24 1975, who is not retired and who is, has been, or shall be,
25 suspended and reinstated without compensation shall receive
26 retirement service credit for the period of time from the date
27 of suspension to the date of reinstatement, provided:
28 1. The creditable service claimed for the period of
29 suspension does not exceed 24 months;
30 2. The member returns to active employment and remains
31 on the employer's payroll for at least 1 calendar month 30
3
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 calendar days; and
2 3. The member pays into the Retirement System Trust
3 Fund the total required employer contributions plus the total
4 employee contributions, if applicable, based on the member's
5 monthly compensation in effect for the pay period immediately
6 preceding the period of suspension, prorated for the said
7 period of suspension, plus interest thereon at a rate of 4
8 percent per annum compounded annually until July 1, 1975, and
9 6.5 percent interest thereafter until paid. If permitted by
10 federal law, the member may pay into the Social Security Trust
11 Fund the total cost, if any, of providing social security
12 coverage for the period of suspension if any social security
13 payments have been made by the employer for the benefit of the
14 member during such period. Should there be any conflict as to
15 payment for social security coverage, the payment for
16 retirement service credit shall be made and retirement service
17 credit granted regardless of such conflict.
18 Section 4. Paragraph (a) of subsection (17) of section
19 121.021, Florida Statutes, 1998 Supplement, is amended to
20 read:
21 121.021 Definitions.--The following words and phrases
22 as used in this chapter have the respective meanings set forth
23 unless a different meaning is plainly required by the context:
24 (17)(a) "Creditable service" of any member means the
25 sum of his or her past service, prior service, military
26 service, out-of-state or non-FRS in-state service, workers'
27 compensation credit, leave-of-absence credit and future
28 service allowed within the provisions of this chapter if all
29 required contributions have been paid and all other
30 requirements of this chapter have been met. However, in no
31 case shall a member receive credit for more than a year's
4
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 service during any 12-month period. Service by as applied to a
2 teacher, or a nonacademic employee of a school board, or an
3 employee of a participating employer other than a school board
4 whose total employment is to provide services to a school
5 board for the school year only shall be based on contract
6 years of employment or school term years of employment, as
7 provided in chapters 122 and 238, rather than 12-month periods
8 of employment.
9 Section 5. Subsections (1) and (3) of section 121.031,
10 Florida Statutes, are amended to read:
11 121.031 Administration of system; appropriation;
12 oaths; actuarial studies; public records.--
13 (1) The Division of Retirement has the authority to
14 adopt shall make such rules pursuant to ss. 120.54 and
15 120.536(1) to implement the provisions of law conferring
16 duties upon the division and to adopt rules as are necessary
17 for the effective and efficient administration of this system.
18 The funds to pay the expenses for such administration of the
19 system are hereby appropriated from the interest earned on
20 investments made for the retirement and social security trust
21 funds and the assessments allowed under chapter 650.
22 (3) The administrator shall cause an actuarial study
23 of the system to be made at least once every 2 years and shall
24 report the results of such study to the Legislature by
25 February 1 prior to the next legislative session. Such study
26 shall, at a minimum, conform to the requirements of s. 112.63,
27 with the following exceptions and additions:
28 (a) The study shall, at a minimum, conform to the
29 requirements of s. 112.63, with the following exceptions and
30 additions:
31 1.(a) The valuation of plan assets shall be based on a
5
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 5-year averaging methodology such as that specified in the
2 United States Department of Treasury Regulations, 26 C.F.R. s.
3 1.412(c)(2)-1, or a similar accepted approach designed to
4 attenuate fluctuations in asset values.
5 2.(b) The study shall include a narrative explaining
6 the changes in the covered group over the period between
7 actuarial valuations and the impact of those changes on
8 actuarial results.
9 3.(c) When substantial changes in actuarial
10 assumptions have been made, the study shall reflect the
11 results of an actuarial assumption as of the current date
12 based on the assumptions utilized in the prior actuarial
13 report.
14 4.(d) The study shall include an analysis of the
15 changes in actuarial valuation results by the factors
16 generating those changes. Such analysis shall reconcile the
17 current actuarial valuation results with those results from
18 the prior valuation.
19 5.(e) The study shall include measures of funding
20 status and funding progress designed to facilitate the
21 assessment of trends over several actuarial valuations with
22 respect to the overall solvency of the system. Such measures
23 shall be adopted by the division and shall be used
24 consistently in all actuarial valuations performed on the
25 system.
26 (b) The Florida Retirement System Actuarial Assumption
27 Conference which is hereby created shall by consensus develop
28 official information with respect to the economic and
29 noneconomic assumptions and funding methods of the Florida
30 Retirement System necessary to perform the study. Such
31 information shall include: an analysis of the actuarial
6
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 assumptions and actuarial methods and a determination of
2 whether changes to the assumptions or methods need to be made
3 due to experience changes or revised future forecasts. The
4 members of the conference shall include the Executive Office
5 of the Governor, the coordinator of the Office of Economic and
6 Demographic Research, and professional staff of the Senate and
7 House of Representatives who have forecasting expertise, or
8 their designees. The Executive Office of the Governor shall
9 have the responsibility of presiding over the sessions of the
10 conference. The State Board of Administration and the
11 Division of Retirement shall be participants, as defined in s.
12 216.134, in the conference.
13 Section 6. Subsection (6) of section 121.051, Florida
14 Statutes, 1998 Supplement, as amended by chapter 96-423, Laws
15 of Florida, is reenacted to read:
16 121.051 Participation in the system.--
17 (6) SEASONAL STATE EMPLOYMENT; BLIND VENDING FACILITY
18 OPERATORS.--
19 (a) Seasonal state employment shall be included under
20 this chapter, and the time limit and procedure for claiming
21 same as set forth in s. 122.07 shall continue under this
22 chapter for those members transferring to this system and for
23 all new members.
24 (b)1. All blind or partially sighted persons employed
25 or licensed by the Division of Blind Services as vending
26 facility operators on or after December 1, 1970, and prior to
27 July 1, 1996, are hereby declared to be state employees within
28 the meaning of this chapter, and all vending facility
29 operators licensed and employed during that period shall be
30 compulsory members of the Florida Retirement System in
31 compliance with this chapter for as long as the member is a
7
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 vending facility operator, except as provided in subparagraph
2 3.
3 2. Blindness shall not be deemed a retirement
4 disability within the provisions of this chapter for such
5 members as are contemplated by this paragraph.
6 3. Any vending facility operator as described in
7 subparagraph 1. may elect, on or before July 31, 1996, to
8 withdraw from the Florida Retirement System as provided in s.
9 413.051(11). The election to withdraw shall take effect as of
10 July 1, 1996, and the decision to withdraw is irrevocable. A
11 vending facility operator who withdraws from the Florida
12 Retirement System as provided in this subparagraph shall
13 retain all creditable service earned in the Florida Retirement
14 System through the month that retirement contributions ceased
15 to be reported, and no creditable service shall be earned as a
16 vending facility operator after such month. However, any such
17 person may participate in the Florida Retirement System in the
18 future if employed by a participating employer in a covered
19 position.
20 4. All blind or partially sighted persons employed or
21 licensed by the Division of Blind Services as vending facility
22 operators on or after July 1, 1996, shall be independent
23 contractors within the meaning of this chapter and shall not
24 be eligible for membership in the Florida Retirement System.
25 Section 7. Paragraph (a) of subsection (7) of section
26 121.052, Florida Statutes, 1998 Supplement, as amended by
27 chapters 96-423 and 98-413, Laws of Florida, is reenacted and
28 amended to read:
29 121.052 Membership class of elected officers.--
30 (7) CONTRIBUTIONS.--
31 (a) The following table states the required retirement
8
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 contribution rates for members of the Elected Officers' Class
2 and their employers in terms of a percentage of the member's
3 gross compensation. A change in a contribution rate is
4 effective with the first salary paid on or after the beginning
5 date of the change. Contributions shall be made or deducted as
6 may be appropriate for each pay period and are in addition to
7 the contributions required for social security and the Retiree
8 Health Insurance Subsidy Trust Fund.
9
10 Dates of Contribution
11 Rate Changes Members Employers
12
13 July 1, 1972, through September 30, 1977
14 Legislators 8% 8%
15 All Other Members 8% 8%
16
17 October 1, 1977, through September 30, 1978
18 Legislators 8% 8%
19 All Other Members 4% 12%
20
21 October 1, 1978, through September 30, 1979
22 Legislators 8% 10.57%
23 All Other Members 4% 16.78%
24
25 October 1, 1979, through September 30, 1981
26 Legislators 8% 10.57%
27 Governor, Lt. Governor, Cabinet
28 Officers 4% 16.78%
29 All Other Members 0% 20.78%
30
31 July 1, 1981, through June 30, 1984
9
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 County Elected Officers 0% 19.30%
2
3 July 1, 1984, through September 30, 1984
4 County Elected Officers 0% 20.25%
5
6 October 1, 1981, through September 30, 1984
7 Legislators 0% 19.30%
8 Governor, Lt. Governor, Cabinet
9 Officers 0% 21.03%
10 State Attorneys, Public Defenders 0% 20.95%
11 Justices, Judges 0% 22.55%
12
13 October 1, 1984, through September 30, 1986
14 Legislators 0% 10.98%
15 Governor, Lt. Governor, Cabinet
16 Officers 0% 10.98%
17 State Attorneys, Public Defenders 0% 10.98%
18 Justices, Judges 0% 21.79%
19 County Elected Officers 0% 16.97%
20
21 October 1, 1986, through December 31, 1988
22 Legislators 0% 11.50%
23 Governor, Lt. Governor, Cabinet
24 Officers 0% 11.50%
25 State Attorneys, Public Defenders 0% 11.50%
26 Justices, Judges 0% 20.94%
27 County Elected Officers 0% 17.19%
28
29 January 1, 1989, through December 31, 1989
30 Legislators 0% 13.70%
31 Governor, Lt. Governor, Cabinet
10
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Officers 0% 13.70%
2 State Attorneys, Public Defenders 0% 13.70%
3 Justices, Judges 0% 22.58%
4 County Elected Officers 0% 18.44%
5
6 January 1, 1990, through December 31, 1990
7 Legislators 0% 15.91%
8 Governor, Lt. Governor, Cabinet
9 Officers 0% 15.91%
10 State Attorneys, Public Defenders 0% 15.91%
11 Justices, Judges 0% 24.22%
12 County Elected Officers 0% 19.71%
13
14 January 1, 1991, through December 31, 1991
15 Legislators 0% 17.73%
16 Governor, Lt. Governor, Cabinet
17 Officers 0% 17.73%
18 State Attorneys, Public Defenders 0% 17.73%
19 Justices, Judges 0% 26.63%
20 County Elected Officers 0% 23.32%
21
22 January 1, 1992, through December 31, 1992
23 Legislators 0% 19.94%
24 Governor, Lt. Governor, Cabinet
25 Officers 0% 19.94%
26 State Attorneys, Public Defenders 0% 19.94%
27 Justices, Judges 0% 28.27%
28 County Elected Officers 0% 24.59%
29
30 January 1, 1993, through December 31, 1993
31 Legislators 0% 22.14%
11
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Governor, Lt. Governor, Cabinet
2 Officers 0% 22.14%
3 State Attorneys, Public Defenders 0% 22.14%
4 Justices, Judges 0% 29.91%
5 County Elected Officers 0% 25.84%
6
7 January 1, 1994, through December 31, 1994
8 Legislators 0% 22.65%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 22.65%
11 State Attorneys, Public Defenders 0% 22.65%
12 Justices, Judges 0% 30.52%
13 County Elected Officers 0% 26.07%
14
15 January 1, 1995, through December 31, 1995
16 Legislators 0% 22.80%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 22.80%
19 State Attorneys, Public Defenders 0% 22.80%
20 Justices, Judges 0% 30.21%
21 County Elected Officers 0% 27.48%
22
23 January 1, 1996, through June 30, 1996
24 Legislators 0% 22.90%
25 Governor, Lt. Governor, Cabinet
26 Officers 0% 22.90%
27 State Attorneys, Public Defenders 0% 22.90%
28 Justices, Judges 0% 30.15%
29 County Elected Officers 0% 27.54%
30
31 July 1, 1996, through June 30, 1998
12
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Legislators 0% 23.07%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 23.07%
4 State Attorneys, Public Defenders 0% 23.07%
5 Justices, Judges 0% 29.55%
6 County Elected Officers 0% 27.33%
7
8 Effective July 1, 1998, through
9 June 30, 1999
10 Legislators 0% 22.33%
11 Governor, Lt. Governor, Cabinet
12 Officers 0% 22.33%
13 State Attorneys, Public Defenders 0% 22.33%
14 Justices, Judges 0% 27.21%
15 County Elected Officers 0% 26.99%
16
17 Effective July 1, 1999
18 Legislators 0% 14.31%
19 Governor, Lt. Governor, Cabinet
20 Officers 0% 14.31%
21 State Attorneys, Public
22 Defenders 0% 14.31%
23 Justices, Judges 0% 20.48%
24 County Elected
25 Officers 0% 17.05%
26
27 Section 8. Paragraph (a) of subsection (3) of section
28 121.055, Florida Statutes, 1998 Supplement, as amended by
29 chapters 96-423 and 98-413, Laws of Florida, is reenacted and
30 amended, and paragraph (e) of subsection (6) of said section
31 is amended, to read:
13
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 121.055 Senior Management Service Class.--There is
2 hereby established a separate class of membership within the
3 Florida Retirement System to be known as the "Senior
4 Management Service Class," which shall become effective
5 February 1, 1987.
6 (3)(a) The following table states the required
7 retirement contribution rates for members of the Senior
8 Management Service Class and their employers in terms of a
9 percentage of the member's gross compensation. A change in
10 the contribution rate is effective with the first salary paid
11 on or after the beginning date of the change. Contributions
12 shall be made for each pay period and are in addition to the
13 contributions required for social security and the Retiree
14 Health Insurance Subsidy Trust Fund.
15
16 Dates of Contribution
17 Rate Changes Members Employers
18
19 February 1, 1987, through
20 December 31, 1988 0% 13.88%
21 January 1, 1989, through
22 December 31, 1989 0% 14.95%
23 January 1, 1990, through
24 December 31, 1990 0% 16.04%
25 January 1, 1991, through
26 December 31, 1991 0% 18.39%
27 January 1, 1992, through
28 December 31, 1992 0% 19.48%
29 January 1, 1993, through
30 December 31, 1993 0% 20.55%
31 January 1, 1994, through
14
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 December 31, 1994 0% 23.07%
2 January 1, 1995, through
3 December 31, 1995 0% 23.88%
4 January 1, 1996, through
5 June 30, 1996 0% 24.14%
6 July 1, 1996, through
7 June 30, 1998 0% 21.58%
8 Effective July 1, 1998, through
9 June 30, 1999 0% 23.10%
10 Effective July 1, 1999 0% 11.19%
11
12 (6)
13 (e) Benefits.--
14 1. Benefits shall be payable under the Senior
15 Management Service Optional Annuity Program only to
16 participants in the program, or their beneficiaries as
17 designated by the participant in the contract with a provider
18 company, and such benefits shall be paid by the designated
19 company in accordance with the terms of the annuity contract
20 or contracts applicable to the participant. A participant must
21 be terminated from all employment with all Florida Retirement
22 System employers as provided in s. 121.021(39) to begin
23 receiving the employer-funded benefit. Benefits funded by
24 employer contributions shall be payable only as a lifetime
25 annuity to the participant, his beneficiary, or his estate,
26 except for:
27 a. A lump-sum payment to the beneficiary upon the
28 death of the participant; or
29 b. A cash-out of a de minimis account upon the request
30 of a former participant who has been terminated for a minimum
31 of 6 months from the employment that entitled him to optional
15
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 annuity retirement program participation. A de minimis account
2 is an account with a provider company containing employer
3 contributions and accumulated earnings of not more than $5,000
4 $3,500 made under the provisions of this chapter. Such
5 cash-out must be a complete liquidation of the account balance
6 with that company and is subject to the provisions of the
7 Internal Revenue Code.
8 2. The benefits payable to any person under the Senior
9 Management Service Optional Annuity Program, and any
10 contribution accumulated under such program, shall not be
11 subject to assignment, execution, or attachment or to any
12 legal process whatsoever.
13 3. A participant who receives optional annuity program
14 benefits funded by employer contributions shall be deemed to
15 be retired from a state-administered retirement system in the
16 event of subsequent employment with any employer that
17 participates in the Florida Retirement System.
18 Section 9. Subsection (1) of section 121.071, Florida
19 Statutes, 1998 Supplement, as amended by chapters 96-423 and
20 98-413, Laws of Florida, is reenacted and amended to read:
21 121.071 Contributions.--Contributions to the system
22 shall be made as follows:
23 (1) The following tables state the required retirement
24 contribution rates for members of the Regular Class, Special
25 Risk Class, or Special Risk Administrative Support Class and
26 their employers in terms of a percentage of the member's gross
27 compensation. A change in a contribution rate is effective
28 with the first salary paid on or after the beginning date of
29 the change. Contributions shall be made or deducted as may be
30 appropriate for each pay period and are in addition to the
31 contributions required for social security and the Retiree
16
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Health Insurance Subsidy Trust Fund.
2 (a) Retirement contributions for regular members are
3 as follows:
4
5 Dates of Contribution
6 Rate Changes Members Employers
7
8 December 1, 1970, through December
9 31, 1974, for state agencies, state
10 universities, community colleges,
11 and district school boards 4% 4%
12
13 December 1, 1970, through September
14 30, 1975, for all other local
15 government agencies 4% 4%
16
17 January 1, 1975, through September
18 30, 1978, for state agencies and
19 state universities 0% 9%
20
21 January 1, 1975, through July 31,
22 1978, for community colleges and
23 district school boards 0% 9%
24
25 October 1, 1975, through September
26 30, 1978, for all other local
27 government agencies 0% 9%
28
29 August 1, 1978, through September 30,
30 1981, for community colleges and
31 district school boards 0% 9.1%
17
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1
2 October 1, 1978, through September
3 30, 1981, for all other agencies 0% 9.1%
4
5 October 1, 1981, through
6 September 30, 1984 0% 10.93%
7 October 1, 1984, through
8 September 30, 1986 0% 12.24%
9 October 1, 1986, through
10 December 31, 1988 0% 13.14%
11 January 1, 1989, through
12 December 31, 1989 0% 13.90%
13 January 1, 1990, through
14 December 31, 1990 0% 14.66%
15 January 1, 1991, through
16 December 31, 1991 0% 15.72%
17 January 1, 1992, through
18 December 31, 1992 0% 16.51%
19 January 1, 1993, through
20 December 31, 1993 0% 17.27%
21 January 1, 1994, through
22 December 31, 1994 0% 17.10%
23 January 1, 1995, through
24 December 31, 1995 0% 16.91%
25 January 1, 1996, through
26 June 30, 1996 0% 17.00%
27 July 1, 1996, through
28 June 30, 1998 0% 16.77%
29 Effective July 1, 1998, through
30 June 30, 1999 0% 15.51%
31 Effective July 1, 1999 0% 9.21%
18
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1
2 (b) Retirement contributions for special risk members
3 are as follows:
4
5 Dates of Contribution
6 Rate Changes Members Employers
7
8 December 1, 1970, through
9 September 30, 1974 6% 6%
10
11 October 1, 1974, through December 31,
12 1974, for state agencies, state
13 universities, community colleges,
14 and district school boards 8% 8%
15
16 October 1, 1974, through September
17 30, 1975, for all other local
18 government agencies 8% 8%
19
20 January 1, 1975, through September
21 30, 1978, for state agencies, state
22 universities, community colleges,
23 and district school boards 0% 13%
24
25 October 1, 1975, through September
26 30, 1978, for other local
27 government agencies 0% 13%
28
29 October 1, 1978, through
30 September 30, 1981 0% 13.95%
31 October 1, 1981, through
19
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 September 30, 1984 0% 13.91%
2 October 1, 1984, through
3 September 30, 1986 0% 14.67%
4 October 1, 1986, through
5 December 31, 1988 0% 15.11%
6 January 1, 1989, through
7 December 31, 1989 0% 17.50%
8 January 1, 1990, through
9 December 31, 1990 0% 19.90%
10 January 1, 1991, through
11 December 31, 1991 0% 25.52%
12 January 1, 1992, through
13 December 31, 1992 0% 26.35%
14 January 1, 1993, through
15 December 31, 1993 0% 27.14%
16 January 1, 1994, through
17 December 31, 1994 0% 27.03%
18 January 1, 1995, through
19 December 31, 1995 0% 26.83%
20 January 1, 1996, through
21 June 30, 1996 0% 26.84%
22 July 1, 1996, through
23 June 30, 1998 0% 26.44%
24 Effective July 1, 1998, through
25 June 30, 1999 0% 24.38%
26 Effective July 1, 1999 0% 20.22%
27
28 (c) Retirement contributions for special risk
29 administrative support members are as follows:
30
31
20
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Dates of Contribution
2 Rate Changes Members Employers
3
4 July 1, 1982, through
5 September 30, 1984 0% 11.14%
6 October 1, 1984, through
7 September 30, 1986 0% 13.09%
8 October 1, 1986, through
9 December 31, 1988 0% 15.44%
10 January 1, 1989, through
11 December 31, 1989 0% 14.76%
12 January 1, 1990, through
13 December 31, 1990 0% 14.09%
14 January 1, 1991, through
15 December 31, 1991 0% 20.16%
16 January 1, 1992, through
17 December 31, 1992 0% 19.51%
18 January 1, 1993, through
19 December 31, 1993 0% 18.83%
20 January 1, 1994, through
21 December 31, 1994 0% 18.59%
22 January 1, 1995, through
23 December 31, 1995 0% 17.81%
24 January 1, 1996, through
25 June 30, 1996 0% 17.80%
26 July 1, 1996, through
27 June 30, 1998 0% 17.20%
28 Effective July 1, 1998, through
29 June 30, 1999 0% 14.64%
30 Effective July 1, 1999 0% 11.53
31
21
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Section 10. Paragraph (i) of subsection (1) and
2 subsection (2) of section 121.081, Florida Statutes, 1998
3 Supplement, are amended to read:
4 121.081 Past service; prior service;
5 contributions.--Conditions under which past service or prior
6 service may be claimed and credited are:
7 (1)
8 (i) An employee of a state agency who was a member of
9 a state-administered retirement system and who was granted
10 educational leave with pay pursuant to a written educational
11 leave-with-pay policy may claim such period of educational
12 leave as past service subject to the following conditions:
13 1. The educational leave must have occurred prior to
14 December 31, 1971;
15 2. The member must have completed at least 10 years of
16 creditable service excluding the period of the educational
17 leave;
18 3. The employee must have returned to employment with
19 a state agency employer who participated in the retirement
20 system, which return was immediately upon termination of the
21 educational leave, and must have remained on the employer's
22 payroll for at least 1 calendar month 30 calendar days
23 following the return to employment;
24 4. The employee must be a member of the Florida
25 Retirement System at the time he or she claims such service;
26 5. Not more than 24 months of creditable service may
27 be claimed for such period of educational leave with pay;
28 6. The service must not be claimed under any other
29 state or federal retirement system; and
30 7. The member must pay to the retirement trust fund
31 for claiming such past-service credit an amount equal to 8
22
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 percent of his or her gross annual salary immediately prior to
2 the educational leave with pay for each year of past service
3 claimed, plus 4 percent interest thereon compounded annually
4 each June 30 from the first year of service claimed until July
5 1, 1975, and 6.5 percent interest thereafter on the unpaid
6 balance compounded annually each June 30 until paid.
7 (2) Prior service, as defined in s. 121.021(19), may
8 be claimed as creditable service under the Florida Retirement
9 System after a member has been reemployed for 1 complete year
10 of creditable service within a period of 12 consecutive
11 continuous months, except as provided in paragraph (c).
12 Service performed as a participant of the optional retirement
13 program for the State University System under s. 121.35 or the
14 Senior Management Service Optional Annuity Program under s.
15 121.055 may be used to satisfy the reemployment requirement of
16 1 complete year of creditable service 12-continuous-month
17 requirement. The member shall not be permitted to make any
18 contributions for prior service until after completion of the
19 1 year of creditable service 12-month period. The required
20 contributions for claiming the various types of prior service
21 are:
22 (a) For prior service performed prior to the date the
23 system becomes noncontributory for the member and for which
24 the member had credit under one of the existing retirement
25 systems and received a refund of contributions upon
26 termination of employment, the member shall contribute 4
27 percent of all salary received during the period being
28 claimed, plus 4 percent interest compounded annually from date
29 of refund until July 1, 1975, and 6.5 percent interest
30 compounded annually thereafter, until full payment is made to
31 the Retirement Trust Fund. A member who elected to transfer to
23
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 the Florida Retirement System from an existing system may
2 receive credit for prior service under the existing system if
3 he or she was eligible under the existing system to claim the
4 prior service at the time of the transfer. Contributions for
5 such prior service shall be determined by the applicable
6 provisions of the system under which the prior service is
7 claimed and shall be paid by the member, with matching
8 contributions paid by the employer at the time the service was
9 performed. Effective July 1, 1978, the account of a person who
10 terminated under s. 238.05(3) may not be charged interest for
11 contributions that remained on deposit in the Annuity Savings
12 Trust Fund established under chapter 238, upon retirement
13 under this chapter or chapter 238.
14 (b) For prior service performed prior to the date the
15 system becomes noncontributory for the member and for which
16 the member had credit under the Florida Retirement System and
17 received a refund of contributions upon termination of
18 employment, the member shall contribute at the rate that was
19 required of him or her during the period of service being
20 claimed, on all salary received during such period, plus 4
21 percent interest compounded annually from date of refund until
22 July 1, 1975, and 6.5 percent interest compounded annually
23 thereafter, until the full payment is made to the Retirement
24 Trust Fund.
25 (c) For prior service as defined in s. 121.021(19)(b)
26 and (c) during which no contributions were made because the
27 member did not participate in a retirement system, the member
28 shall contribute 14.38 percent of all salary received during
29 such period or 14.38 percent of $100 per month during such
30 period, whichever is greater, plus 4 percent interest
31 compounded annually from the first year of service claimed
24
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 until July 1, 1975, and 6.5 percent interest compounded
2 annually thereafter, until full payment is made to the
3 Retirement Trust Fund.
4 (d) In order to claim credit for prior service as
5 defined in s. 121.021(19)(d) for which no retirement
6 contributions were paid during the period of such service, the
7 member shall contribute the total employee and employer
8 contributions which were required to be made to the Highway
9 Patrol Pension Trust Fund, as provided in chapter 321, during
10 the period claimed, plus 4 percent interest compounded
11 annually from the first year of service until July 1, 1975,
12 and 6.5 percent interest compounded annually thereafter, until
13 full payment is made to the Retirement Trust Fund. However,
14 any governmental entity which employed such member may elect
15 to pay up to 50 percent of the contributions and interest
16 required to purchase this prior service credit.
17 (e) For service performed under the Florida Retirement
18 System after December 1, 1970, that was never reported to the
19 division due to error, retirement credit may be claimed by a
20 member of the Florida Retirement System. The division shall
21 adopt rules establishing criteria for claiming such credit and
22 detailing the documentation required to substantiate the
23 error.
24 (f) The employer may not be required to make
25 contributions for prior service credit for any member, except
26 that the employer shall pay the employer portion of
27 contributions for any legislator who elects to withdraw from
28 the Florida Retirement System and later rejoins the system and
29 pays any employee contributions required in accordance with s.
30 121.052(3)(d).
31 Section 11. Paragraph (c) of subsection (4), paragraph
25
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 (f) of subsection (7), and paragraphs (a) and (i) of
2 subsection (13) of section 121.091, Florida Statutes, 1998
3 Supplement, are amended to read:
4 121.091 Benefits payable under the system.--Benefits
5 may not be paid under this section unless the member has
6 terminated employment as provided in s. 121.021(39)(a) or
7 begun participation in the Deferred Retirement Option Program
8 as provided in subsection (13), and a proper application has
9 been filed in the manner prescribed by the division. The
10 division may cancel an application for retirement benefits
11 when the member or beneficiary fails to timely provide the
12 information and documents required by this chapter and the
13 division's rules. The division shall adopt rules establishing
14 procedures for application for retirement benefits and for the
15 cancellation of such application when the required information
16 or documents are not received.
17 (4) DISABILITY RETIREMENT BENEFIT.--
18 (b) Total and permanent disability.--A member shall be
19 considered totally and permanently disabled if, in the opinion
20 of the administrator, he or she is prevented, by reason of a
21 medically determinable physical or mental impairment, from
22 rendering useful and efficient service as an officer or
23 employee.
24 (c) Proof of disability.--The administrator, before
25 approving payment of any disability retirement benefit, shall
26 require proof that the member is totally and permanently
27 disabled as provided herein:
28 1. Such, which proof shall include the certification
29 of the member's total and permanent disability by two licensed
30 physicians of the state and such other evidence of disability
31 as the administrator may require, including reports from
26
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 vocational rehabilitation, evaluation, or testing specialists
2 who have evaluated the applicant for employment.
3 2. It must be documented that:
4 a. The member's medical condition occurred or became
5 symptomatic during the time the member was employed in an
6 employee/employer relationship with his or her employer;
7 b. The member was totally and permanently disabled at
8 the time he or she terminated covered employment; and
9 c. The member has not been employed with any other
10 employer after such termination.
11 3. If the application is for in-line-of-duty
12 disability, in addition to the requirements of subparagraph
13 2., it must be documented by competent medical evidence that
14 the disability was caused by a job-related illness or accident
15 which occurred while the member was in an employee/employer
16 relationship with his or her employer.
17 4. The unavailability of an employment position that
18 the member is physically and mentally capable of performing
19 will not be considered as proof of total and permanent
20 disability.
21 (7) DEATH BENEFITS.--
22 (f) Notwithstanding any other provisions in this
23 chapter to the contrary and upon application to the
24 administrator, an eligible joint annuitant, of a member whose
25 employment is terminated by death within 1 year of such member
26 satisfying the service requirements for vesting and retirement
27 eligibility, shall be permitted to purchase only the
28 additional service credit necessary to vest and qualify for
29 retirement benefits, not to exceed a total of 1 year of
30 credit, by one or a combination of the following methods:
31 1. Such eligible joint annuitant may use the deceased
27
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 member's accumulated hours of annual, sick, and compensatory
2 leave to purchase additional creditable service, on an hour by
3 hour basis, provided that such deceased member's accumulated
4 leave is sufficient to cover the additional months required.
5 For each month of service credit needed prior to the final
6 month, credit for the total number of work hours in that month
7 must be purchased, using an equal number of the deceased
8 member's accumulated leave hours. Service credit required for
9 the final month in which the deceased member would have become
10 vested shall be awarded upon the purchase of 1 hour of credit.
11 Such eligible joint annuitant shall pay the contribution rate
12 in effect for the period of time being claimed for at the time
13 of purchase of the deceased member's class of membership,
14 multiplied by such member's monthly salary at the time of
15 death, plus 6.5 percent interest compounded annually. The
16 accumulated leave payment used in the average final
17 compensation shall not include that portion of the payment
18 that represents any leave hours used in the purchase of such
19 creditable service.
20 2. Such eligible joint annuitant may purchase
21 additional months of creditable service, up to a maximum of 1
22 year, for any periods of out-of-state service as provided in
23 s. 121.1115, and or in-state service as provided in s.
24 121.1122, that the deceased member would have been eligible to
25 purchase prior to his or her death.
26
27 Service purchased under this paragraph shall be added to the
28 creditable service of the member and used to vest for
29 retirement eligibility, and shall be used in the calculation
30 of any benefits which may be payable to the eligible joint
31 annuitant. Any benefits paid in accordance with this
28
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 paragraph shall only be made prospectively.
2 (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general,
3 and subject to the provisions of this section, the Deferred
4 Retirement Option Program, hereinafter referred to as the
5 DROP, is a program under which an eligible member of the
6 Florida Retirement System may elect to participate, deferring
7 receipt of retirement benefits while continuing employment
8 with his or her Florida Retirement System employer. The
9 deferred monthly benefits shall accrue in the System Trust
10 Fund on behalf of the participant, plus interest compounded
11 monthly, for the specified period of the DROP participation,
12 as provided in paragraph (c). Upon termination of employment,
13 the participant shall receive the total DROP benefits and
14 begin to receive the previously determined normal retirement
15 benefits. Participation in the DROP does not guarantee
16 employment for the specified period of DROP.
17 (a) Eligibility of member to participate in the
18 DROP.--All active Florida Retirement System members in a
19 regularly established position, and all active members of
20 either the Teachers' Retirement System established in chapter
21 238 or the State and County Officers' and Employees'
22 Retirement System established in chapter 122 which systems are
23 consolidated within the Florida Retirement System under s.
24 121.011, are eligible to elect participation in the DROP
25 provided that:
26 1. The member is not a renewed member of the Florida
27 Retirement System under s. 121.122, or a member of the State
28 Community College System Optional Retirement Program under s.
29 121.051, the Senior Management Service Optional Annuity
30 Program under s. 121.055, or the optional retirement program
31 for the State University System under s. 121.35.
29
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 2. Election to participate is made within 12 months
2 immediately following the date on which the member first
3 reaches normal retirement date, or, for a member who reaches
4 normal retirement date based on service before he or she
5 reaches age 62, or age 55 for Special Risk Class members,
6 election to participate may be deferred to the 12 months
7 immediately following the date the member attains 57, or age
8 52 50 for Special Risk Class members. For a member who first
9 reached normal retirement date or the deferred eligibility
10 date described above prior to the effective date of this
11 section, election to participate shall be made within 12
12 months after the effective date of this section. A member who
13 fails to make an election within such 12-month limitation
14 period shall forfeit all rights to participate in the DROP.
15 The member shall advise his or her employer and the division
16 in writing of the date on which the DROP shall begin. Such
17 beginning date may be subsequent to the 12-month election
18 period, but must be within the 60-month limitation period as
19 provided in subparagraph (b)1. When establishing eligibility
20 of the member to participate in the DROP or the 60-month
21 maximum participation period, the member may elect to include
22 or exclude any optional service credit purchased by the member
23 from the total service used to establish the normal retirement
24 date. A member with dual normal retirement dates shall be
25 eligible to elect to participate in DROP within 12 months
26 after attaining normal retirement date in either class.
27 3. The employer of a member electing to participate in
28 the DROP, or employers if dually employed, shall acknowledge
29 in writing to the division the date the member's participation
30 in the DROP begins and the date the member's employment and
31 DROP participation will terminate.
30
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 4. Simultaneous employment of a participant by
2 additional Florida Retirement System employers subsequent to
3 the commencement of participation in the DROP shall be
4 permissible provided such employers acknowledge in writing a
5 DROP termination date no later than the participant's existing
6 termination date or the 60-month limitation period as provided
7 in subparagraph (b)1.
8 5. A DROP participant may change employers while
9 participating in the DROP, subject to the following:
10 a. A change of employment must take place without a
11 break in service so that the member receives salary for each
12 month of continuous DROP participation. If a member receives
13 no salary during a month, DROP participation shall cease
14 unless the employer verifies a continuation of the employment
15 relationship for such participant pursuant to s.
16 121.021(39)(b).
17 b. Such participant and new employer shall notify the
18 division on forms required by the division as to the identity
19 of the new employer.
20 c. The new employer shall acknowledge, in writing, the
21 participant's DROP termination date, which may be extended but
22 not beyond the original 60-month period provided in
23 subparagraph (b)1., shall acknowledge liability for any
24 additional retirement contributions and interest required if
25 the participant fails to timely terminate employment, and
26 shall be subject to the adjustment required in
27 sub-subparagraph (c)5.d. (c)4.d.
28 (i) Contributions.--
29 1. All employers paying the salary of a DROP
30 participant filling a regularly established position shall
31 contribute 11.56 percent of such participant's gross
31
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 compensation, which shall constitute the entire employer DROP
2 contribution with respect to such participant. Such
3 contributions, payable to the System Trust Fund in the same
4 manner as required in s. 121.071, shall be made as appropriate
5 for each pay period and are in addition to contributions
6 required for social security and the Retiree Health Insurance
7 Subsidy Trust Fund. Such employer, social security, and
8 health insurance subsidy contributions are not included in the
9 DROP.
10 2. The employer shall, in addition to subparagraph 1.,
11 also withhold one-half of the entire social security
12 contribution required for the participant. Contributions for
13 social security by each participant and each employer, in the
14 amount required for social security coverage as now or
15 hereafter provided by the federal Social Security Act, shall
16 be in addition to contributions specified in subparagraph 1.
17 3. All employers paying the salary of a DROP
18 participant filling a regularly established position shall
19 contribute the 0.66 percent of such participant's gross
20 compensation required in s. 121.071(4), which shall constitute
21 the employer's health insurance subsidy contribution with
22 respect to such participant. Such contributions shall be
23 deposited by the administrator in the Retiree Health Insurance
24 Subsidy Trust Fund.
25 Section 12. Subsection (3) of section 121.122, Florida
26 Statutes, 1998 Supplement, is amended to read:
27 121.122 Renewed membership in system.--Except as
28 provided in s. 121.053, effective July 1, 1991, any retiree of
29 a state-administered retirement system who is employed in a
30 regularly established position with a covered employer shall
31 be enrolled as a compulsory member of the Regular Class of the
32
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Florida Retirement System or, effective July 1, 1997, any
2 retiree of a state-administered retirement system who is
3 employed in a position included in the Senior Management
4 Service Class shall be enrolled as a compulsory member of the
5 Senior Management Service Class of the Florida Retirement
6 System as provided in s. 121.055, and shall be entitled to
7 receive an additional retirement benefit, subject to the
8 following conditions:
9 (3) Such member shall be entitled to purchase
10 additional retirement credit in the Regular Class or the
11 Senior Management Service Class, as applicable, for any
12 postretirement service performed in a regularly established
13 position as follows:
14 (a) For regular class service prior to July 1, 1991,
15 by paying the Regular Class applicable employee and employer
16 contributions for the period being claimed, plus 4 percent
17 interest compounded annually from first year of service
18 claimed until July 1, 1975, and 6.5 percent interest
19 compounded thereafter, until full payment is made to the
20 Florida Retirement System Trust Fund; or
21 (b) For Senior Management Service Class prior to June
22 1, 1997, as provided in s. 121.055(1)(i)(h).
23
24 The contribution for postretirement service between July 1,
25 1985, and July 1, 1991, for which the reemployed retiree
26 contribution was paid, shall be the difference between such
27 contribution and the total applicable contribution for the
28 period being claimed, plus interest. The employer of such
29 member may pay the applicable employer contribution in lieu of
30 the member. If a member does not wish to claim credit for all
31 of the postretirement service for which he or she is eligible,
33
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 the service the member claims must be the most recent service.
2 Section 13. Subsection (5) of section 121.24, Florida
3 Statutes, is renumbered as subsection (6), and a new
4 subsection (5) is added to said section, to read:
5 121.24 Conduct of commission business; legal and other
6 assistance; compensation.--
7 (5) The State Retirement Commission has the authority
8 to adopt rules pursuant to ss. 120.54 and 120.536(1) to
9 implement the provisions of law conferring duties upon the
10 commission.
11 Section 14. Paragraph (a) of subsection (5) of section
12 121.35, Florida Statutes, 1998 Supplement, is amended to read:
13 121.35 Optional retirement program for the State
14 University System.--
15 (5) BENEFITS.--
16 (a) Benefits shall be payable under the optional
17 retirement program only to vested participants in the program,
18 or their beneficiaries as designated by the participant in the
19 contract with a provider company, and such benefits shall be
20 paid only by the designated company in accordance with the
21 terms of the annuity contract or contracts applicable to the
22 participant. The participant must be terminated from all
23 employment with all Florida Retirement System employers, as
24 provided in s. 121.021(39), to begin receiving the
25 employer-funded benefit. Benefits funded by employer
26 contributions shall be payable only as a lifetime annuity to
27 the participant, his beneficiary, or his estate, except for:
28 1. A lump-sum payment to the beneficiary upon the
29 death of the participant; or
30 2. A cash-out of a de minimis account upon the request
31 of a former participant who has been terminated for a minimum
34
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 of 6 months from the employment that entitled him to optional
2 retirement program participation. A de minimis account is an
3 account with a provider company containing employer
4 contributions and accumulated earnings of not more than $5,000
5 $3,500 made under the provisions of this chapter. Such
6 cash-out must be a complete liquidation of the account balance
7 with that company and is subject to the provisions of the
8 Internal Revenue Code.
9 Section 15. Subsection (11) of section 121.40, Florida
10 Statutes, 1998 Supplement, is amended, and subsection (12) of
11 said section, as amended by chapters 96-423 and 98-413, Laws
12 of Florida, is reenacted to read:
13 121.40 Cooperative extension personnel at the
14 Institute of Food and Agricultural Sciences; supplemental
15 retirement benefits.--
16 (4) ELIGIBILITY FOR SUPPLEMENT.--To be eligible for a
17 benefit pursuant to the provisions of this section, a person
18 must meet all of the following eligibility criteria:
19 (e) The person must not be entitled to any benefit
20 from a state-supported retirement system or from social
21 security based upon service as a cooperative extension
22 employee of the institute. Participation in the Institute of
23 Food and Agricultural Sciences Supplemental Retirement Program
24 shall not constitute membership in the Florida Retirement
25 System.
26 (11) EMPLOYMENT AFTER RETIREMENT: LIMITATION.--
27 (a) Any person who is receiving a supplemental
28 retirement benefit under this section may be reemployed by any
29 private or public employer after retirement and receive
30 supplemental retirement benefits pursuant to this section and
31 compensation from his or her employer, without any
35
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 limitations. However, if a retired participant who is
2 receiving a supplemental retirement benefit under this section
3 is reemployed at the institute in a position as a cooperative
4 extension employee of the institute, he or she shall forfeit
5 all rights to supplemental retirement benefits in accordance
6 with the eligibility provisions of subsection (4)(e)., except
7 that no person may receive both a salary from reemployment
8 with any agency participating in the Florida Retirement System
9 and supplemental retirement benefits under this section for a
10 period of 12 months immediately subsequent to the date of
11 retirement.
12 (b) Each person to whom the limitation in paragraph
13 (a) applies who violates such reemployment limitation and who
14 is reemployed with any agency participating in the Florida
15 Retirement System prior to completion of the 12-month
16 limitation period shall give timely notice of this fact in
17 writing to the employer and to the division and shall have his
18 or her supplemental retirement benefits suspended for the
19 balance of the 12-month limitation period. Any person
20 employed in violation of this subsection and any employing
21 agency which knowingly employs or appoints such person without
22 notifying the Division of Retirement to suspend retirement
23 benefits shall be jointly and severally liable for
24 reimbursement to the retirement trust fund of any benefits
25 paid during the reemployment limitation period. To avoid
26 liability, such employing agency shall have a written
27 statement from the retiree that he or she is not retired from
28 a state-administered retirement system. Any supplemental
29 retirement benefits received while reemployed during this
30 reemployment limitation period shall be repaid to the trust
31 fund, and supplemental retirement benefits shall remain
36
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 suspended until such repayment has been made. Supplemental
2 benefits suspended beyond the reemployment limitation shall
3 apply toward repayment of supplemental benefits received in
4 violation of the reemployment limitation.
5 (c) The reemployment by an employer participating in
6 the Florida Retirement System of any person receiving
7 supplemental retirement benefits under this section shall have
8 no effect on the amount of the supplemental benefit of that
9 person. Prior to July 1, 1991, upon employment of any person,
10 other than an elected officer as provided in s. 121.053, who
11 is receiving supplemental retirement benefits under this
12 section, the employer shall pay retirement contributions in an
13 amount equal to the unfunded actuarial accrued liability
14 portion of the employer contribution which would be required
15 for regular members of the Florida Retirement System.
16 Effective July 1, 1991, contributions shall be made as
17 provided in s. 121.122 for renewed membership.
18 (d) The limitations of this subsection apply to
19 reemployment in any capacity with an "employer" as defined in
20 s. 121.021(10), irrespective of the category of funds from
21 which the person is compensated.
22 (12) CONTRIBUTIONS.--
23 (a) For the purposes of funding the supplemental
24 benefits provided by this section, the institute is authorized
25 and required to pay, commencing July 1, 1985, the necessary
26 monthly contributions from its appropriated budget. These
27 amounts shall be paid into the Institute of Food and
28 Agricultural Sciences Supplemental Retirement Trust Fund,
29 which is hereby created.
30 (b) The monthly contributions required to be paid
31 pursuant to paragraph (a) on the gross monthly salaries, from
37
6:22 PM 04/26/99 h1883c-12c8h.seg1
SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 all sources with respect to such employment, paid to those
2 employees of the institute who hold both state and federal
3 appointments and who participate in the federal Civil Service
4 Retirement System shall be as follows:
5
6 Dates of Contribution Percentage
7 Rate Changes Due
8
9 July 1, 1985, through December 31, 1988 6.68%
10 January 1, 1989, through December 31, 1993 6.35%
11 January 1, 1994, through December 31, 1994 6.69%
12 January 1, 1995, through June 30, 1996 6.82%
13 July 1, 1996, through June 30, 1998 5.64%
14 Effective July 1, 1998 7.17%
15
16 Section 16. Subsection (11) of section 413.051,
17 Florida Statutes, 1998 Supplement, as amended by chapter
18 96-423 and subsection (12) of said section, as amended by
19 chapters 96-423 and 98-149, Laws of Florida, are reenacted to
20 read:
21 413.051 Eligible blind persons; operation of vending
22 stands.--
23 (11) Effective July 1, 1996, blind licensees who
24 remain members of the Florida Retirement System pursuant to s.
25 121.051(6)(b)1. shall pay any unappropriated retirement costs
26 from their net profits or from program income. Within 30 days
27 after the effective date of this act, each blind licensee who
28 is eligible to maintain membership in the Florida Retirement
29 System under s. 121.051(6)(b)1., but who elects to withdraw
30 from the system as provided in s. 121.051(6)(b)3., must, on or
31 before July 31, 1996, notify the Division of Blind Services
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Bill No. HB 1883, 1st Eng.
Amendment No.
1 and the Division of Retirement in writing of his or her
2 election to withdraw. Failure to timely notify the divisions
3 shall be deemed a decision to remain a compulsory member of
4 the Florida Retirement System. However, if, at any time after
5 July 1, 1996, sufficient funds are not paid by a blind
6 licensee to cover the required contribution to the Florida
7 Retirement System, that blind licensee shall become ineligible
8 to participate in the Florida Retirement System on the last
9 day of the first month for which no contribution is made or
10 the amount contributed is insufficient to cover the required
11 contribution. For any blind licensee who becomes ineligible
12 to participate in the Florida Retirement System as described
13 in this subsection, no creditable service shall be earned
14 under the Florida Retirement System for any period following
15 the month that retirement contributions ceased to be reported.
16 However, any such person may participate in the Florida
17 Retirement System in the future if employed by a participating
18 employer in a covered position.
19 (12) The Division of Blind Services may adopt rules to
20 permit the division to establish and maintain vending
21 facilities, issue licenses, establish and maintain a vending
22 facility training program, provide vendors access to financial
23 data of the program, set aside funds from net proceeds of the
24 vending facility, provide for the transfer and promotion of
25 vendors, establish a vendors committee, provide for an
26 operation agreement, provide duties and responsibilities of
27 the division with respect to the vending facility program, and
28 provide procedures for newspaper vending sales.
29 Section 17. Paragraph (b) of subsection (1) of section
30 175.071, Florida Statutes, 1998 Supplement, is amended to
31 read:
39
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 175.071 General powers and duties of board of
2 trustees.--For any municipality, special fire control
3 district, chapter plan, local law municipality, local law
4 special fire control district, or local law plan under this
5 chapter:
6 (1) The board of trustees may:
7 (b) Invest and reinvest the assets of the
8 firefighters' pension trust fund in:
9 1. Time or savings accounts of a national bank, a
10 state bank insured by the Bank Insurance Fund, or a savings,
11 building, and loan association insured by the Savings
12 Association Insurance Fund which is administered by the
13 Federal Deposit Insurance Corporation or a state or federal
14 chartered credit union whose share accounts are insured by the
15 National Credit Union Share Insurance Fund.
16 2. Obligations of the United States or obligations
17 guaranteed as to principal and interest by the government of
18 the United States.
19 3. Bonds issued by the State of Israel.
20 4. Bonds, stocks, or other evidences of indebtedness
21 issued or guaranteed by a corporation organized under the laws
22 of the United States, any state or organized territory of the
23 United States, or the District of Columbia, provided:
24 a. The corporation is listed on any one or more of the
25 recognized national stock exchanges or on the National Market
26 System of the Nasdaq Stock Market and, in the case of bonds
27 only, holds a rating in one of the three highest
28 classifications by a major rating service; and
29 b. The board of trustees shall not invest more than 5
30 percent of its assets in the common stock or capital stock of
31 any one issuing company, nor shall the aggregate investment in
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 any one issuing company exceed 5 percent of the outstanding
2 capital stock of that company or the aggregate of its
3 investments under this subparagraph at cost exceed 50 percent
4 of the assets of the fund.
5
6 This paragraph shall apply to all boards of trustees and
7 participants. However, in the event that a municipality or
8 special fire control district has a duly enacted pension plan
9 pursuant to, and in compliance with, s. 175.351, and the
10 trustees thereof desire to vary the investment procedures
11 herein, the trustees of such plan shall request a variance of
12 the investment procedures as outlined herein only through a
13 municipal ordinance, special act of the Legislature, or
14 resolution by the governing body of the special fire control
15 district; where a special act, or a municipality by ordinance
16 adopted prior to July 1, 1998, permits a greater than
17 50-percent equity investment, such municipality shall not be
18 required to comply with the aggregate equity investment
19 provisions of this paragraph. Notwithstanding any other
20 provision of law to the contrary, nothing in this section may
21 be construed to take away any preexisting legal authority to
22 make equity investments that exceed the requirements of this
23 paragraph. The board of trustees may invest up to 10 percent
24 of plan assets in foreign securities.
25 Section 18. Paragraph (b) of subsection (1) of section
26 185.06, Florida Statutes, 1998 Supplement, is amended to read:
27 185.06 General powers and duties of board of
28 trustees.--For any municipality, chapter plan, local law
29 municipality, or local law plan under this chapter:
30 (1) The board of trustees may:
31 (b) Invest and reinvest the assets of the retirement
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 trust fund in:
2 1. Time or savings accounts of a national bank, a
3 state bank insured by the Bank Insurance Fund, or a savings
4 and loan association insured by the Savings Association
5 Insurance Fund which is administered by the Federal Deposit
6 Insurance Corporation or a state or federal chartered credit
7 union whose share accounts are insured by the National Credit
8 Union Share Insurance Fund.
9 2. Obligations of the United States or obligations
10 guaranteed as to principal and interest by the United States.
11 3. Bonds issued by the State of Israel.
12 4. Bonds, stocks, or other evidences of indebtedness
13 issued or guaranteed by a corporation organized under the laws
14 of the United States, any state or organized territory of the
15 United States, or the District of Columbia, provided:
16 a. The corporation is listed on any one or more of the
17 recognized national stock exchanges or on the National Market
18 System of the Nasdaq Stock Market and, in the case of bonds
19 only, holds a rating in one of the three highest
20 classifications by a major rating service; and
21 b. The board of trustees shall not invest more than 5
22 percent of its assets in the common stock or capital stock of
23 any one issuing company, nor shall the aggregate investment in
24 any one issuing company exceed 5 percent of the outstanding
25 capital stock of the company or the aggregate of its
26 investments under this subparagraph at cost exceed 50 percent
27 of the fund's assets.
28
29 This paragraph shall apply to all boards of trustees and
30 participants. However, in the event that a municipality has a
31 duly enacted pension plan pursuant to, and in compliance with,
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 s. 185.35 and the trustees thereof desire to vary the
2 investment procedures herein, the trustees of such plan shall
3 request a variance of the investment procedures as outlined
4 herein only through a municipal ordinance or special act of
5 the Legislature; where a special act, or a municipality by
6 ordinance adopted prior to July 1, 1998, permits a greater
7 than 50-percent equity investment, such municipality shall not
8 be required to comply with the aggregate equity investment
9 provisions of this paragraph. Notwithstanding any other
10 provision of law to the contrary, nothing in this section may
11 be construed to take away any preexisting legal authority to
12 make equity investments that exceed the requirements of this
13 paragraph. The board of trustees may invest up to 10 percent
14 of plan assets in foreign securities.
15 Section 19. Section 121.027, Florida Statutes, is
16 repealed.
17 Section 20. The Governor, Comptroller, and Treasurer,
18 sitting as the Board of Trustees of the State Board of
19 Administration, shall review the actuarial valuation report
20 prepared in accordance with the provisions of chapter 121,
21 Florida Statutes. The Board shall review the process by which
22 Florida Retirement System contribution rates are determined
23 and recommend and submit any comments regarding the process to
24 the Legislature.
25 Section 21. Section 112.18, Florida Statutes, is
26 amended to read:
27 112.18 Firefighters and state law enforcement
28 officers; special provisions relative to disability.--
29 (1) Any condition or impairment of health of any
30 Florida state, municipal, county, port authority, special tax
31 district, or fire control district firefighter or state law
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 enforcement officer caused by tuberculosis, heart disease, or
2 hypertension resulting in total or partial disability or death
3 shall be presumed to have been accidental and to have been
4 suffered in the line of duty unless the contrary be shown by
5 competent evidence. However, any such firefighter or state law
6 enforcement officer shall have successfully passed a physical
7 examination upon entering into any such service as a
8 firefighter or state law enforcement officer, which
9 examination failed to reveal any evidence of any such
10 condition. Such presumption shall not apply to benefits
11 payable under or granted in a policy of life insurance or
12 disability insurance, unless the insurer and insured have
13 negotiated for such additional benefits to be included in the
14 policy contract.
15 (2) This section shall be construed to authorize the
16 above governmental entities to negotiate policy contracts for
17 life and disability insurance to include accidental death
18 benefits or double indemnity coverage which shall include the
19 presumption that any condition or impairment of health of any
20 firefighter caused by tuberculosis, heart disease, or
21 hypertension resulting in total or partial disability or death
22 was accidental and suffered in the line of duty, unless the
23 contrary be shown by competent evidence.
24 Section 22. Section 121.36, Florida Statutes, is
25 created to read:
26 121.36 Optional retirement program for members of the
27 regular class.--
28 (1) OPTIONAL RETIREMENT PROGRAM
29 ESTABLISHED.--Effective July 1, 2001, the Division of
30 Retirement shall establish an optional retirement program for
31 members of the Regular Class of the Florida Retirement System
44
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 under which contracts providing retirement benefits may be
2 purchased for eligible employees who elect to participate in
3 the program. The benefits to be provided for or on behalf of
4 participants in such optional retirement program shall be
5 provided through individual contracts, which may be fixed,
6 variable, or a combination thereof, in accordance with s.
7 401(a) of the Internal Revenue Code. Any individual contract
8 must contain a statement of the plan on its face page, and
9 must include, but need not be limited to, a statement of
10 ownership, the contract benefits, income options, limitations,
11 expense charges, and surrender charges, if any. The state
12 shall contribute, as provided in this section, toward the
13 purchase of such optional benefits.
14 (2) DEFINITIONS.--As used in this section, the term:
15 (a) "Approved provider" or "provider" means the State
16 Board of Administration or a private-sector company that is
17 selected and approved by the division to offer contracts to
18 participants of the Regular Class Optional Retirement Program.
19 Private-sector companies include nonprofit investment
20 management companies, insurance companies, depositories, and
21 mutual fund companies.
22 (b) "Contract" means an individual contract or an
23 individual certificate issued for a group contract. The term
24 "execute a contract" includes execution of an individual
25 contract and execution of a group contract by the Division of
26 Retirement with issuance of an individual certificate.
27 (c) "De minimis account" refers to total vested
28 account contributions and accumulated earnings under the
29 Regular Class Optional Retirement Program of not more than
30 $5,000.
31 (d) "Eligible employee" means an employee, as defined
45
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 in s. 121.021(11), who is a member of, or is eligible for
2 membership in, the Regular Class of the Florida Retirement
3 System. However, the term does not include any employee who is
4 a participant of, or is eligible to participate in, any other
5 optional retirement program authorized under this chapter, nor
6 does the term include any renewed member of the Florida
7 Retirement System under s. 121.122 or any member participating
8 in the Deferred Retirement Option Program under s.
9 121.091(13).
10 (e) "Employer" means an employer, as defined in s.
11 121.021(10), of an eligible employee.
12 (f) "Participant" means an eligible employee who
13 elects to participate in the Regular Class Optional Retirement
14 Program and enrolls in such optional program as provided in
15 subsection (4).
16 (g) "Regular Class Optional Retirement Program" or
17 "optional program" means the alternative defined-contribution
18 retirement program established under this section.
19 (h) "Vested" or "vesting" means the guarantee that a
20 participant is eligible to receive a full or partial
21 retirement benefit upon completion of the required years of
22 service under the Regular Class Optional Retirement Program.
23 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT.--
24 (a) Participation in the Regular Class Optional
25 Retirement Program is limited to eligible employees.
26 (b) An eligible employee who is a member of the
27 Florida Retirement System at the time of his or her election
28 to participate in the Regular Class Optional Retirement
29 Program shall retain all retirement service credit earned
30 under the Florida Retirement System, at the rate earned.
31 However, election to participate in the Regular Class Optional
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Retirement Program terminates the active membership of the
2 employee in the Florida Retirement System, and the service of
3 a participant in the Regular Class Optional Retirement Program
4 will not be creditable under the Florida Retirement System,
5 nor will the participant be eligible for disability retirement
6 under the Florida Retirement System.
7 (c) Notwithstanding paragraph (b), each existing
8 employee who elects to participate in the Regular Class
9 Optional Retirement Program and establishes one or more
10 individual participant accounts under the program may elect to
11 transfer to the optional program a sum representing the
12 actuarial equivalent present value of the employee's accrued
13 service benefit under the Florida Retirement System. Upon such
14 election, the actuarial present value for the participant
15 shall be determined using the discount rate and other
16 actuarial assumptions used to value the Florida Retirement
17 System Trust Fund at the time the amount to be transferred is
18 determined and disregarding any vesting requirement that would
19 otherwise apply under the Florida Retirement System. As
20 directed by the participant, the division shall transfer the
21 appropriate amounts to the designated accounts. The division
22 shall establish transfer procedures by rule. Upon such
23 transfer, all service credit previously earned under the
24 Florida Retirement System shall be nullified for purposes of
25 entitlement to a future benefit under the Florida Retirement
26 System. Transfers are noncommissionable, must be made
27 expeditiously, and may be in the form of securities or cash.
28 (4) PARTICIPATION.--
29 (a) With respect to eligible employees who are
30 employed in a regularly established position on July 1, 2001:
31 1. Any such employee may elect to participate in the
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Regular Class Optional Retirement Program in lieu of retaining
2 his or her membership in the Regular Class of the Florida
3 Retirement System. The election must be made in writing and
4 must be filed with the division and the personnel officer of
5 the employer within 90 days after July 1, 2001, or, in the
6 case of an active employee who is on a leave of absence on
7 July 1, 2001, within 90 days after the conclusion of the leave
8 of absence. Upon making such election, the employee shall
9 become a participant of the Regular Class Optional Retirement
10 Program, and the employee's membership in the Florida
11 Retirement System will terminate. The employee's enrollment in
12 the Regular Class Optional Retirement Program will be
13 effective the first day of the month for which a full month's
14 employer contribution is made to the optional program.
15 2. Any such employee who fails to elect to participate
16 in the Regular Class Optional Retirement Program within the
17 prescribed 90 days is deemed to have elected to retain
18 membership in the Florida Retirement System.
19 (b) With respect to employees who become eligible to
20 participate in the Regular Class Optional Retirement Program
21 by reason of employment in a regularly established position
22 commencing after July 1, 2001:
23 1. Any such employee shall, by default, be enrolled in
24 the Florida Retirement System at the commencement of
25 employment, and may, within 90 days after employment
26 commences, elect to participate in the Regular Class Optional
27 Retirement Program. The employee's election must be made in
28 writing and must be filed with the personnel officer of the
29 employer.
30 a. If the employee files such election before the
31 initial payroll is submitted for the employee, enrollment in
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 the Regular Class Optional Retirement Program will be
2 effective on the first day of employment.
3 b. If the employee files such election within 90 days
4 after employment commences, but after the initial payroll is
5 submitted for the employee, enrollment in the optional program
6 will be effective on the first day of the month for which a
7 full month's employer contribution is made to the optional
8 program.
9 2. Any such employee who fails to elect to participate
10 in the Regular Class Optional Retirement Program within the
11 prescribed 90 days is deemed to have elected to retain
12 membership in the Florida Retirement System.
13 (c) With respect to eligible employees who become
14 eligible to participate in the Regular Class Optional
15 Retirement Program by reason of a change in eligibility status
16 occurring on or after July 1, 2001:
17 1. Upon a change in eligibility status, the employer
18 must provide written notice to the employee stating that, due
19 to the change in eligibility status, the employee has the
20 option to participate in the Regular Class Optional Retirement
21 Program in lieu of retaining membership in the Florida
22 Retirement System Regular Class, if he or she exercises the
23 option within 90 days after the notification date.
24 2. Any such employee may, within 90 days after the
25 notification date, elect to participate in the Regular Class
26 Optional Retirement Program. The employee's election must be
27 made in writing and must be filed with the personnel officer
28 of the employer. If the employee files an election to
29 participate in the Regular Class Optional Retirement Program
30 within the prescribed 90 days, enrollment in the optional
31 program will be effective on the first day of the month for
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 which a full month's employer contribution is made to the
2 optional program.
3 3. Any such employee who fails to elect to participate
4 in the Regular Class Optional Retirement Program within the
5 prescribed 90 days is deemed to have elected to retain
6 membership in the Florida Retirement System.
7 (d) The provisions of paragraph (a), paragraph (b), or
8 paragraph (c) to the contrary notwithstanding:
9 1. Any eligible employee who elects to participate in
10 the Regular Class Optional Retirement Program but fails to
11 execute a contract with one of the approved providers within
12 90 days after enrollment in the optional program, or who fails
13 to properly notify, within the prescribed 90 days, the
14 division that such contract has been executed, shall be deemed
15 to have executed an annuity contract with the State Board of
16 Administration, and all appropriate contributions shall be
17 transferred to the State Board of Administration for
18 allocation to the participant's account.
19 2. Any participant of the Regular Class Optional
20 Retirement Program who, before executing the required contract
21 and notifying the division, terminates employment or otherwise
22 experiences a change in eligibility status such that he or she
23 is no longer eligible to participate in the optional program
24 is deemed to have elected membership in the Florida Retirement
25 System. Such membership is retroactive to the date of
26 enrollment, and all appropriate contributions will be made to
27 the Florida Retirement System Trust Fund and the Health
28 Insurance Subsidy Trust Fund.
29 (e) The election to participate in the Regular Class
30 Optional Retirement Program is irrevocable for as long as the
31 employee holds a position eligible for participation in the
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 optional program and otherwise continues to meet the
2 requirements of this section.
3 (5) CONTRIBUTIONS.--
4 (a)1. Each employer shall contribute on behalf of each
5 participant in the Regular Class Optional Retirement Program
6 an amount equal to 8.21 percent of the employee's gross
7 salary. The employer shall forward to the division the
8 required contributions for each participant of the optional
9 program, and the division shall forward the contributions to
10 the designated providers contracting for payment of benefits
11 for the participant, less an amount approved by the
12 Legislature, which shall be deducted by the division to
13 provide for the administration of the program. However, such
14 contributions may not be forwarded to a provider and do not
15 begin to accrue interest until the employee has executed a
16 contract and notified the division.
17 2. Contributions by each employer and each participant
18 which are required for social security coverage under the
19 federal Social Security Act must be maintained for each
20 participant in the Regular Class Optional Retirement Program,
21 in addition to the retirement contributions specified in this
22 subsection.
23 (b) Each participant in the Regular Class Optional
24 Retirement Program who has executed a contract may contribute,
25 on a posttax basis, to his or her account under the Regular
26 Class Optional Retirement Program, subject to federal
27 requirements applicable to defined-contribution plans under s.
28 401(a) of the Internal Revenue Code. Interest and investment
29 earnings on such contributions will accrue on a tax-deferred
30 basis until the proceeds are distributed. Participant
31 contributions shall be made by way of salary deduction,
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 undertaken by written agreement between the participant and
2 his or her employer, and may not exceed the amount contributed
3 by the employer on behalf of the participant. The employer
4 shall forward to the division the designated contributions for
5 each participant of the optional program, and the division
6 shall forward the contributions to the designated approved
7 provider or providers contracting for payment of benefits for
8 the participant under the program.
9
10 Contributions made under the optional program shall be
11 deposited in the Regular Class Optional Retirement Program
12 Trust Fund established in the State Treasury and administered
13 by the Division of Retirement, and payments shall be made
14 therefrom to the approved providers on behalf of the Regular
15 Class Optional Retirement Program participants.
16 (c) If a participant in the Regular Class Optional
17 Retirement Program has the opportunity, through his or her
18 employer, to participate in a tax sheltered annuity plan
19 authorized under s. 403(b) of the United States Internal
20 Revenue Code, a deferred compensation plan authorized under s.
21 457 of the United States Internal Revenue Code, or a cash or
22 deferred arrangement available pursuant to s. 401(k) of the
23 United States Internal Revenue Code, the participant may,
24 through salary reduction or deduction, contribute on a pre-tax
25 basis to such other plan, subject to federal limitations.
26 (d) Employers are responsible for notifying
27 participants regarding maximum contribution levels permitted
28 under the Internal Revenue Code. Individual participants are
29 responsible for monitoring their own employee contributions to
30 the Regular Class Optional Retirement Program, and employer
31 contributions made on their behalf, to ensure that
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 contribution totals do not exceed federally permitted
2 maximums. If a participant contributes to any other
3 tax-deferred plan as provided under paragraph (c), he or she
4 is responsible for ensuring that total contributions made to
5 the optional program and to any other such plan do not exceed
6 federally permitted maximums.
7 (6) VESTING REQUIREMENTS.--A participant will be fully
8 or partially vested in the Regular Class Optional Retirement
9 Program only upon execution of a contract with an approved
10 provider. Subject thereto:
11 (a) With respect to participant contributions, plus
12 interest and earnings thereon, participants are fully and
13 immediately vested.
14 (b) With respect to employer contributions made on
15 behalf of the participant, plus interest and earnings thereon,
16 credit toward vesting under the optional program shall be
17 gradually earned, as follows:
18 1. A participant who completes 2 years of service
19 under the optional program shall be considered to be
20 20-percent vested and is entitled to receive an
21 employer-funded benefit based on 20 percent of the employer
22 contributions made to the participant's account, plus interest
23 and earnings thereon.
24 2. A member who completes 3 years of service under the
25 optional program shall be considered to be 40-percent vested
26 and is entitled to receive an employer-funded benefit based on
27 40 percent of the employer contributions made to the
28 participant's account, plus interest and earnings thereon.
29 3. A member who completes 4 years of service under the
30 optional program shall be considered to be 60-percent vested
31 and is entitled to receive an employer-funded benefit based on
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 60 percent of the employer contributions made to the
2 participant's account, plus interest and earnings thereon.
3 4. A member who completes 5 years of service under the
4 optional program shall be considered to be 80-percent vested
5 and is entitled to receive an employer-funded benefit based on
6 80 percent of the employer contributions made to the
7 participant's account, plus interest and earnings thereon.
8 5. Any member who completes 6 years of service under
9 the optional program shall be considered to be 100-percent
10 vested, or fully vested, and is entitled to receive an
11 employer-funded benefit based on 100 percent of the employer
12 contributions made to the participant's account, plus interest
13 and earnings thereon.
14 (7) BENEFITS.--Under the Regular Class Optional
15 Retirement Program:
16 (a) Benefits shall be provided through individual
17 contracts, or individual certificates issued for group
18 contracts, in accordance with s. 401(a) of the Internal
19 Revenue Code.
20 (b) Benefits shall accrue in individual accounts that
21 are participant-directed, portable, and funded by employer and
22 employee contributions and earnings thereon.
23 (c) Benefits shall be payable in accordance with the
24 following terms and conditions:
25 1. Benefits shall be payable only to a fully or
26 partially vested participant as provided in subsection (6), or
27 to his or her beneficiaries as designated by the participant
28 in the contract with an approved provider.
29 2. Benefits shall be paid only by the designated
30 approved provider in accordance with the terms of the
31 contracts applicable to the participant.
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 3. To begin receiving the employer-funded benefits,
2 the participant must be terminated from all employment with
3 all Florida Retirement System employers, as provided in s.
4 121.021(39). If a participant elects to receive his or her
5 employer-funded benefits upon termination of employment, in
6 accordance with the terms and conditions of the applicable
7 provider contract, the participant must submit a written
8 application to the division indicating his or her preferred
9 distribution date and selecting an authorized method of
10 distribution as provided in paragraph (d). The division shall
11 forward a copy of such application to each approved provider
12 with which the participant has a contractual relationship
13 under the optional program. The participant may defer receipt
14 of employer-funded benefits until he or she chooses to make
15 such application.
16 4. Benefits funded by the participant's personal
17 contributions may be paid out by an approved provider, within
18 the limits provided in the contract between the participant
19 and the provider, subject to federal requirements. The
20 participant shall notify the provider regarding the preferred
21 payment date, the amount to be paid out, and the provisions
22 under which he or she wants to receive such benefits. Payment
23 of participant-funded benefits may be deferred until the
24 participant chooses to provide such notice.
25 5. In the event of a participant's death, moneys
26 accumulated by or on behalf of the participant, less
27 withholding taxes remitted to the Internal Revenue Service,
28 will be distributed to the participant's designated
29 beneficiary or beneficiaries, or to the participant's estate,
30 as if the participant retired on the date of death, as
31 provided in paragraph (e). No other death benefits will be
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 available for survivors of participants under the Regular
2 Class Optional Retirement Program, except for such benefits,
3 or coverage for such benefits, as are separately afforded by
4 the employer, in the employer's discretion.
5 (d) Upon receipt by the division of a properly
6 executed application for distribution of benefits, the total
7 accumulated employer-funded benefit shall be payable to the
8 participant, as:
9 1. A lifetime annuity payable to the participant. This
10 payment option is not available in the case of a de minimis
11 account;
12 2. A cash-out of a de minimis account of $5,000 or
13 less, in accordance with rules adopted by the division; or
14 3. A direct rollover distribution whereby all accrued
15 benefits, plus interest and investment earnings, are paid from
16 the participant's account directly to the custodian of an
17 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
18 Internal Revenue Code, on behalf of the participant.
19 (e) Survivor benefits shall be payable as:
20 1. A lifetime annuity payable to the deceased
21 participant's designated beneficiaries. This payment option is
22 not available in the case of a de minimis account;
23 2. A lump-sum distribution payable to the
24 beneficiaries, or to the deceased participant's estate;
25 3. An eligible rollover distribution on behalf of the
26 surviving spouse of a deceased participant, whereby all
27 accrued benefits, plus interest and investment earnings, are
28 paid from the deceased participant's account directly to the
29 custodian of an individual retirement account or an individual
30 retirement annuity, as described in s. 402(c)(9) of the
31 Internal Revenue Code, on behalf of the surviving spouse; or
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 4. A partial lump-sum payment whereby a portion of the
2 accrued benefit is paid to the deceased participant's
3 surviving spouse or other designated beneficiaries, less
4 withholding taxes remitted to the Internal Revenue Service,
5 and the remaining amount is transferred directly to the
6 custodian of an individual retirement account or an individual
7 retirement annuity, as described in s. 402(c)(9) of the
8 Internal Revenue Code, on behalf of the surviving spouse. The
9 proportions must be specified by the participant or the
10 surviving spouse.
11
12 This paragraph does not abrogate other applicable provisions
13 of state or federal law providing for payment of death
14 benefits.
15 (f) The benefits payable to any person under the
16 Regular Class Optional Retirement Program, and any
17 contributions accumulated under such program, are not subject
18 to assignment, execution, attachment, or any legal process,
19 except for qualified domestic-relations orders by a court of
20 competent jurisdiction, income-deduction orders as provided in
21 s. 61.1301, and federal income tax levies.
22 (8) ADMINISTRATION OF PROGRAM.--
23 (a) The Regular Class Optional Retirement Program
24 authorized by this section shall be administered by the
25 division and affected employer agencies. The division shall
26 adopt rules establishing the role and responsibilities of
27 affected state and local government agencies in administering
28 the Regular Class Optional Retirement Program.
29 (b)1. The division may select and contract with a
30 third-party administrator to provide administrative services,
31 including, but not limited to, services relating to:
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 consolidated billing; individual and collective recordkeeping
2 and accounting; asset purchase, control, and safekeeping; and
3 direct disbursement of funds to and from approved providers,
4 employers, participants, and beneficiaries.
5 2. The division shall also select and contract with a
6 third-party organization to develop and disseminate
7 educational materials and provide educational services to
8 employers, eligible employees, participants, and beneficiaries
9 in order to maintain compliance with United States Department
10 of Labor regulations under section 404(c) of the Employee
11 Retirement Income Security Act of 1974 and to assist employees
12 in their choice of defined-benefit or defined-contribution
13 retirement alternatives. Such materials and services may
14 include, but are not limited to, providing retirement-planning
15 education; explaining the differences between the
16 defined-benefit retirement plan and the defined-contribution
17 retirement plan; and offering financial-planning guidance on
18 matters such as investment diversification, investment risks,
19 investment costs, and asset allocation. An approved provider
20 may not perform this function, but may provide information
21 concerning its products and services.
22
23 As a cost of administration, the division may compensate any
24 such contractor for its services, in accordance with the terms
25 of the contract, as is deemed necessary or proper by the
26 division and the contractor.
27 (c) The division may authorize an approved provider to
28 make direct disbursement of funds under the optional program
29 to a participant or other beneficiary.
30 (9) INVESTMENT PROVIDERS; INVESTMENT OPTIONS OR
31 PRODUCTS; PERFORMANCE REVIEW.--
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 (a) The division shall develop policy and procedures
2 for selecting investment providers and products from which
3 contracts may be purchased under the program. The State Board
4 of Administration may advise the division and make
5 recommendations with regard to selecting investment providers
6 and products under subsection (11). In accordance with such
7 policy and procedures, the division shall, through a
8 competitive-bidding process, designate up to nine providers,
9 one of which may be the State Board of Administration, and
10 shall approve the form and content of all investment
11 contracts. Potential provider companies may elect to submit
12 competitive bids or proposals to serve only a specific segment
13 of optional program participants, such as K-12 public school
14 district employees, and nothing in this section shall prohibit
15 the division from selecting one or more such providers as part
16 of the nine providers.
17 (b) In evaluating and selecting private-sector
18 provider companies and products for the Regular Class Optional
19 Retirement Program, the division shall establish criteria
20 under which it will consider the relative capabilities and
21 qualifications of each proposed provider company. In
22 developing such criteria, the division shall consider:
23 1. Experience in Florida and other states providing
24 retirement annuities or trusteed mutual fund arrangements or
25 other retirement products and related financial services under
26 defined-contribution pension plans.
27 2. Financial strength and stability which shall be
28 evidenced by the highest ratings assigned by nationally
29 recognized rating services, when comparing proposed providers
30 that are so rated.
31 3. Intrastate and interstate portability of the
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 product offered, including early withdrawal options.
2 4. Compliance with the Internal Revenue Code.
3 5. The cost-effectiveness of the products provided,
4 and the levels of service supporting them, relative to their
5 benefits and their characteristics, including, without
6 limitation, the level of risk borne by the provider.
7 6. The provider company's ability and willingness to
8 coordinate its activities with Florida Retirement System
9 employers and the division, and to supply to such employers
10 and the division the information and data they require.
11 7. The methods available to participants to interact
12 with the provider company, including the means by which
13 participants may access account information, direct investment
14 of contributions, make changes to their accounts, transfer
15 moneys between available investment vehicles, and transfer
16 moneys between provider companies, and shall consider any fees
17 that apply to such activities.
18 8. The provider company's policies with respect to the
19 transfer of individual account balances, contributions, and
20 earnings thereon, both internally among investment products
21 offered by the provider company and externally between
22 provider companies, as well as any fees, charges, reductions,
23 or penalties that may be applied.
24 (d) The division shall consider investment options or
25 products it considers appropriate to give participants the
26 opportunity to accumulate retirement benefits, subject to the
27 following:
28 1. The Regular Class Optional Retirement Program must
29 offer a diversified mix of investment products.
30 2. Investment options or products offered by the group
31 of approved providers may include mutual funds, group annuity
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 contracts, individual retirement annuities, interests in
2 trusts, and other such financial instruments.
3 (e) The division shall periodically review the
4 performance of each approved provider and each approved
5 product to ensure continued compliance with established
6 selection criteria and with division policy and procedures.
7 Providers or products may be terminated, subject to contract
8 provisions.
9 (f) Contracts must be renegotiated every 8 years in
10 order to provide new or different services or products.
11 (10) CONTRACT REQUIREMENTS.--The division shall ensure
12 that each participant is provided a quarterly statement that
13 accounts for the contributions made by and on behalf of such
14 participants; the interest and investment earnings thereon;
15 and any fees, penalties, or other deductions that apply
16 thereto. At a minimum, such statements must:
17 1. Indicate the participant's self-directed investment
18 options.
19 2. State the market value of the account at the close
20 of the current quarter and previous quarter.
21 3. Show account gains and losses for the period.
22 4. Itemize account contributions for the quarter.
23 5. Indicate any account changes due to adjustment of
24 contribution levels, reallocation of contributions, balance
25 transfers, or withdrawals.
26 6. Set forth any fees, charges, penalties, and other
27 deductions that apply to the account.
28
29 Investment providers shall provide annual summary reports to
30 the division.
31 (11) STATE BOARD OF ADMINISTRATION TO PROVIDE ADVICE
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 AND ASSISTANCE.--The State Board of Administration shall
2 assist the division in implementing and administering the
3 Regular Class Optional Retirement Program.
4 (a) At the request of the division, the board shall
5 review proposals submitted by vendors seeking to become
6 approved providers for the Regular Class Optional Retirement
7 Program and shall submit to the division its recommendations
8 regarding such vendors, based on:
9 1. An evaluation of specific investment products
10 proposed to be offered, taking into account each product's
11 track record in meeting its investment return objectives net
12 of all related fees, expenses, and charges, including, but not
13 limited to, investment management fees, loads, distribution
14 and marketing fees, custody fees, recordkeeping fees,
15 education fees, annuity expenses, and consulting fees; and
16 2. Organizational factors, including, but not limited
17 to, financial solvency, organizational depth, and experience
18 in providing institutional investment services.
19 (b) Once providers have been selected and approved,
20 the board shall periodically review investment product
21 performance and related organizational factors of the approved
22 providers. The board shall advise the division on the
23 acceptability of all investment products proposed to be
24 offered through contracts to the participants and may advise
25 the division of any changes necessary to ensure that the
26 Regular Class Optional Retirement Program offers a diversified
27 mix of investment products.
28 (c) The State Board of Administration shall develop
29 and submit to the division its recommendations regarding the
30 form and content of contracts to be offered under the Regular
31 Class Optional Retirement Program. In developing its
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 recommendations, the board must consider:
2 1. The nature and extent of the rights and benefits to
3 be afforded participants in relation to the required
4 contributions under the program; and
5 2. The suitability of the rights and benefits to be
6 afforded participants to the needs of the participants and the
7 interests of employers in the recruitment and retention of
8 eligible employees.
9 (d) The State Board of Administration shall review
10 proposals submitted by vendors seeking to contract with the
11 division to provide financial advice on retirement planning.
12 The board shall evaluate such proposals based on an assessment
13 of cost, product quality, independence from money-management
14 organizations, and organizational factors, including, but not
15 limited to, customer-service orientation, financial solvency,
16 organizational depth, and experience in providing investment
17 advisory and consulting services. Once a vendor is selected
18 and approved for this purpose, the board shall periodically
19 review the performance and organizational aspects of the
20 approved contractor and shall submit to the division
21 recommended changes necessary to ensure that program
22 participants receive appropriate and cost-effective investment
23 advice.
24
25 The Investment Advisory Council shall review any
26 recommendations of the board prior to submittal to the
27 division. The division shall make the final determination as
28 to whether any investment provider or product, any contractor,
29 or any and all contract provisions will be approved for the
30 program. Upon the recommendation of the Board of Trustees of
31 the State Board of Administration that it offer an optional
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 retirement program that it administers, the Division of
2 Retirement shall commission an independent third-party firm to
3 conduct a review of the product to be offered so as to effect
4 substantial compliance with the provisions of this subsection.
5 (12) FEDERAL REQUIREMENTS.--
6 (a) Provisions of this section shall be construed, and
7 the Regular Class Optional Retirement Program shall be
8 administered, so as to comply with the Internal Revenue Code,
9 Title 26 U.S.C., and specifically with plan qualification
10 requirements imposed on governmental plans under s. 401(a) of
11 the Internal Revenue Code.
12 (b) Any section or provision of this chapter which is
13 susceptible to more than one construction must be interpreted
14 in favor of the construction most likely to satisfy
15 requirements imposed by s. 401(a) of the Internal Revenue
16 Code.
17 (c) Contributions payable under this section for any
18 limitation year may not exceed the maximum amount allowable
19 for qualified defined-contribution pension plans under
20 applicable provisions of the Internal Revenue Code. If an
21 employee who has elected to participate in the Regular Class
22 Optional Retirement Program participates in any other plan
23 that is maintained by the participating employer, benefits
24 that accrue under the Regular Class Optional Retirement
25 Program shall be considered primary for any aggregate
26 limitation applicable under s. 415 of the Internal Revenue
27 Code.
28 (13) INVESTMENT POLICY STATEMENT.--
29 (a) Investment products and providers selected for the
30 regular class optional retirement system shall be in
31 conformance with the Regular Class Optional Retirement System
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Investment Policy Statement, herein referred to as the
2 "Statement," as developed by the executive director of the
3 State Board of Administration, approved by the board, and
4 submitted to the Division of Retirement. The Statement must
5 include, among other items, the investment objectives of the
6 Regular Class Optional Retirement System; manager selection
7 and monitoring guidelines; and performance measurement
8 criteria. As required from time to time, the executive
9 director of the State Board of Administration may present
10 recommended changes in the Statement to the board for
11 approval.
12 (b) Prior to any recommended changes in the Statement
13 being presented to the State Board of Administration, the
14 executive director of the board shall present such changes to
15 the Investment Advisory Council for review. The council shall
16 present the results of its review to the board prior to the
17 board's final approval of the Statement or changes in the
18 Statement.
19 (14) STATEMENT OF FIDUCIARY STANDARDS AND
20 RESPONSIBILITIES.--
21 (a) Investment of regular class optional retirement
22 program assets shall be made for the sole interest and
23 exclusive purpose of providing benefits to program
24 participants and beneficiaries and defraying reasonable
25 expenses of administering the program. The program's assets
26 are to be invested with the care, skill, and diligence that a
27 prudent person acting in a like manner would undertake. The
28 performance of the above investment duties shall comply with
29 the fiduciary standards set forth in the Employee Retirement
30 Income Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)
31 through (C). In case of conflict with other provisions of law
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 authorizing investments, the investment and fiduciary
2 standards set forth in this subsection shall prevail.
3 (b) The program's investment fiduciaries shall not be
4 liable for losses to a participant's or beneficiary's account
5 that result from the participant's or beneficiary's exercise
6 of control. The assets of the regular class optional
7 retirement program shall be maintained in compliance with the
8 United States Department of Labor regulation under section
9 404(c) of the Employee Retirement Income Security Act of 1974
10 and all applicable laws governing the operation of the
11 program.
12 Section 23. Subsection (2) of section 112.363, Florida
13 Statutes, 1998 Supplement, is amended to read:
14 112.363 Retiree health insurance subsidy.--
15 (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE
16 SUBSIDY.--A person who is retired under a state-administered
17 retirement system, or a beneficiary who is a spouse or
18 financial dependent entitled to receive benefits under a
19 state-administered retirement system, is eligible for health
20 insurance subsidy payments provided under this section; except
21 that pension recipients under ss. 121.055(1)(b)2., 121.36,
22 121.40, 238.07(16)(a), and 250.22, recipients of health
23 insurance coverage under s. 110.1232, or any other special
24 pension or relief act shall not be eligible for such payments.
25 Payment of the retiree health insurance subsidy shall be made
26 only after coverage for health insurance for the retiree or
27 beneficiary has been certified in writing to the Division of
28 Retirement. Participation in a former employer's group health
29 insurance program is not a requirement for eligibility under
30 this section. However, participants in the State Community
31 College System Optional Retirement Program as provided in s.
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 121.051(2)(c), the Senior Management Service Optional Annuity
2 Program as provided in s. 121.055(6), and the State University
3 System Optional Retirement Program as provided in s. 121.35
4 shall not receive the retiree health insurance subsidy
5 provided in this section. The employer of such participant
6 shall pay the contributions required in subsection (8) to the
7 annuity program provided in s. 121.051(2)(c), s.
8 121.055(6)(d), or s. 121.35(4)(a), as applicable.
9 Section 24. In any solicitation or offer of coverage
10 under an optional retirement program, a provider company shall
11 be governed by the contract readability provisions of section
12 627.4145, Florida Statutes, notwithstanding section
13 627.4145(6)(c), Florida Statutes. In addition, all descriptive
14 materials must be prepared under the assumption that the
15 participant is an unsophisticated investor. Provider companies
16 must maintain an internal system of quality assurance, have
17 proven functional systems that are date-calculation compliant,
18 and be subject to a due-diligence inquiry that proves their
19 capacity and fitness to undertake service responsibilities.
20 Section 25. Paragraph (e) is added to subsection (3)
21 of section 112.363, Florida Statutes, 1998 Supplement, to
22 read:
23 112.363 Retiree health insurance subsidy.--
24 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
25 (e) Beginning July 1, 2001, each eligible retiree or,
26 if the retiree is deceased, his or her beneficiary who is
27 receiving a monthly benefit from such retiree's account and
28 who is a spouse, or a person who meets the definition of joint
29 annuitant in s. 121.021(28), shall receive a monthly retiree
30 health insurance subsidy payment equal to the number of years
31 of creditable service, as defined in s. 121.021(17), completed
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 at the time of retirement multiplied by $5. No eligible
2 retiree or beneficiary may receive a subsidy payment of more
3 than $150 or less than $30. If there are multiple
4 beneficiaries, the total payment may not be greater than the
5 payment to which the retiree was entitled.
6 Section 26. Subsections (29) and (45) of section
7 121.021, Florida Statutes, 1998 Supplement, are amended to
8 read:
9 121.021 Definitions.--The following words and phrases
10 as used in this chapter have the respective meanings set forth
11 unless a different meaning is plainly required by the context:
12 (29) "Normal retirement date" means the first day of
13 any month following the date a member attains one of the
14 following statuses:
15 (a) If a Regular Class member, the member:
16 1. Completes 6 10 or more years of creditable service
17 and attains age 62; or
18 2. Completes 30 years of creditable service,
19 regardless of age, which may include a maximum of 4 years of
20 military service credit as long as such credit is not claimed
21 under any other system.
22 (b) If a Special Risk Class member, the member:
23 1. Completes 6 10 or more years of creditable service
24 in the Special Risk Class and attains age 55;
25 2. Completes 25 years of creditable service in the
26 Special Risk Class, regardless of age; or
27 3. Completes 25 years of creditable service and
28 attains age 52, which service may include a maximum of 4 years
29 of military service credit as long as such credit is not
30 claimed under any other system and the remaining years are in
31 the Special Risk Class.
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 (c) If a Senior Management Service Class member, the
2 member:
3 1. Completes 6 7 years of creditable service in the
4 Senior Management Service Class and attains age 62; or
5 2. Completes 30 years of any creditable service,
6 regardless of age, which may include a maximum of 4 years of
7 military service credit as long as such credit is not claimed
8 under any other system.
9 (d) If an Elected State County Officers' Class member,
10 the member:
11 1. Completes 6 8 years of creditable service in the
12 Elected State and County Officers' Class and attains age 62;
13 or
14 2. Completes 30 years of any creditable service,
15 regardless of age, which may include a maximum of 4 years of
16 military service credit as long as such credit is not claimed
17 under any other system.
18
19 "Normal retirement age" is attained on the "normal retirement
20 date."
21 (45)(a) "Vested" or "vesting" means the guarantee that
22 a member is eligible to receive a future retirement benefit
23 upon completion of the required years of creditable service
24 for the employee's class of membership, even though the member
25 may have terminated covered employment before reaching normal
26 or early retirement date. Being vested does not entitle a
27 member to a disability benefit; provisions governing
28 entitlement to disability benefits are set forth under s.
29 121.091(4) based on a disability caused by an injury or
30 disease that occurs after termination of covered employment.
31 (b) Effective July 1, 2001, a graded vesting system
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 shall be implemented for the Florida Retirement System whereby
2 any member who is employed in a regularly established position
3 on or after July 1, 2001, will earn credit toward vesting as
4 described in paragraph (a), as follows:
5 1. Any such member completing 2 years of creditable
6 service shall be considered to be 20 percent vested and shall
7 be entitled to a future benefit based on 20 percent of the
8 retirement credit earned for his or her service.
9 2. Any such member completing 3 years of creditable
10 service shall be considered to be 40 percent vested and shall
11 be entitled to a future benefit based on 40 percent of the
12 retirement credit earned for his or her service.
13 3. Any such member completing 4 years of creditable
14 service shall be considered to be 60 percent vested and shall
15 be entitled to a future benefit based on 60 percent of the
16 retirement credit earned for his or her service.
17 4. Any such member completing 5 years of creditable
18 service shall be considered to be 80 percent vested and shall
19 be entitled to a future benefit based on 80 percent of the
20 retirement credit earned for his or her service.
21 5. Any such member completing 6 years of creditable
22 service shall be considered to be 100 percent vested, or fully
23 vested as described in paragraph (a).
24
25 Inactive members will not be considered fully or partially
26 vested solely by operation of the provisions of this
27 paragraph. Any member who is not employed in a regularly
28 established position on July 1, 2001, will be deemed partially
29 or fully vested as provided in this paragraph only upon
30 subsequent employment in a covered position for 1 work year,
31 except that no member may be required to complete more years
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 of creditable service than would have been required for that
2 member to vest under retirement laws in effect before July 1,
3 2001.
4 Section 27. Paragraph (a) of subsection (7) of section
5 121.0515, Florida Statutes, 1998 Supplement, is amended to
6 read:
7 121.0515 Special risk membership; criteria;
8 designation and removal of classification; credits for past
9 service and prior service; retention of special risk normal
10 retirement date.--
11 (7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT
12 DATE.--
13 (a) A special risk member who is moved or reassigned
14 to a nonspecial risk law enforcement, firefighting, or
15 correctional administrative support position with the same
16 agency, or who is subsequently employed in such a position
17 with any law enforcement, firefighting, or correctional agency
18 under the Florida Retirement System, shall participate in the
19 Special Risk Administrative Support Class and shall earn
20 credit for such service at the same percentage rate as that
21 earned by a regular member. Notwithstanding the provisions of
22 subsection (4), service in such an administrative support
23 position shall, for purposes of s. 121.091, apply toward
24 satisfaction of the special risk normal retirement date, as
25 defined in s. 121.021(29)(b), provided that, while in such
26 position, the member remains certified as a law enforcement
27 officer, firefighter, or correctional officer; remains subject
28 to reassignment at any time to a position qualifying for
29 special risk membership; and completes an aggregate of 6 10 or
30 more years of service as a designated special risk member
31 prior to retirement.
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Section 28. Paragraph (d) is added to subsection (5)
2 of section 121.052, Florida Statutes, 1998 Supplement, and
3 subsection (8) and paragraphs (b) and (c) of subsection (12)
4 of that section are amended, to read:
5 121.052 Membership class of elected officers.--
6 (5) UPGRADED SERVICE; PURCHASE OF ADDITIONAL CREDIT.--
7 (d) Any member of the Florida Retirement System who
8 serves as the elected mayor of a consolidated local
9 government, which government by its charter has chosen status
10 as a municipality rather than a county government for purposes
11 of the state retirement system administered under this
12 chapter, may elect membership in the Elected State and County
13 Officers' Class established by this section for the duration
14 of the term of office. Any such mayor or former mayor shall be
15 eligible for membership in this class for the term of office,
16 provided the member or the local government employer pays the
17 retirement contributions that would have been paid had actual
18 participation commenced at that time, plus interest at 6.5
19 percent compounded each June 30 from date of participation
20 until date of payment. No retirement credit will be allowed
21 under this subsection for any such service which is used to
22 obtain a benefit under any local retirement system.
23 (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.--A
24 member of the Elected State and County Officers' Class shall
25 have the same normal retirement date and vesting requirement
26 as provided defined in s. 121.021(29) and (45) for a member of
27 the regular class of the Florida Retirement System, except
28 that only 8 years of creditable service in this class are
29 needed to attain the normal retirement date specified in s.
30 121.021(29)(a). Any public service commissioner who was
31 removed from the Elected State Officers' Class on July 1,
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 1979, after attaining at least 8 years of creditable service
2 in that class shall be considered to have reached the normal
3 retirement date upon attaining age 62 as required in s.
4 121.021(29)(a).
5 (12) BENEFITS.--
6 (b) The benefit provisions of s. 121.091(2)-(6), (8),
7 (9), and (11), relating to benefits payable for dual normal
8 retirement ages, early retirement, disability retirement,
9 termination benefits, optional forms of retirement,
10 designation of beneficiaries, employment after retirement, and
11 method of computing actuarial equivalent, respectively, shall
12 also apply to members of the Elected State and County
13 Officers' Class, except that only 8 years of creditable
14 service in this class are needed to attain the benefits
15 specified in s. 121.091(3) and (5). These provisions shall be
16 construed in such manner as to make them compatible with the
17 provisions of this section.
18 (c) The benefit provisions of s. 121.091(7), relating
19 to death benefits, shall apply to members of the Elected State
20 and County Officers' Class and shall be construed in such
21 manner as to make them compatible with the provisions of this
22 section; however, only 8 years of creditable service in this
23 class are needed to obtain such benefits, except that:
24 1. If any elected official dies in office who would
25 have been vested under the Elected State and County Officers'
26 Class, any other class of the Florida Retirement System, or
27 any other state-administered retirement system, if the
28 official had lived to complete his or her term of office, the
29 official's spouse may elect to leave the official's retirement
30 contributions in the retirement trust fund and pay into said
31 fund any required contributions which would have been paid by
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 the officer or the employer had the officer lived to complete
2 the term of office.
3 2. If a deceased member's surviving spouse as
4 described in subparagraph 1. previously received a refund of
5 the member's contributions made to the retirement trust fund,
6 the surviving spouse may pay into the retirement trust fund an
7 amount equal to the deceased member's contributions previously
8 refunded, together with interest at 4 percent compounded
9 annually on the amount of such refunded contributions from the
10 date of refund until July 1, 1975, and at 6.5 percent
11 compounded annually thereafter to the date of payment, plus
12 such additional contributions as may be required under
13 subparagraph 1., in order to become vested, as applicable.
14
15 Upon conclusion of the term of office to which the deceased
16 officer was elected, a spouse who pays into the retirement
17 trust fund such additional or refunded contributions, plus
18 interest, shall be eligible to receive a monthly benefit in
19 the same manner as the surviving spouse of a member who dies
20 after accumulating the required number of years of creditable
21 service as described herein.
22 Section 29. Paragraph (a) of subsection (1) of section
23 121.053, Florida Statutes, 1998 Supplement, is amended to
24 read:
25 121.053 Participation in the Elected State and County
26 Officers' Class for retired members.--
27 (1)(a) Any member who retired under any existing
28 system as defined in s. 121.021(2), and receives a benefit
29 thereof, and who serves in an office covered by the Elected
30 State and County Officers' Class for a period of at least 6 8
31 years, shall be entitled to receive an additional retirement
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 benefit for such elected officer service prior to July 1,
2 1990, under the Elected State and County Officers' Class of
3 the Florida Retirement System, as follows:
4 1. Upon completion of 6 8 or more years of creditable
5 service in an office covered by the Elected State and County
6 Officers' Class, s. 121.052, such member shall notify the
7 administrator of his or her intent to purchase elected officer
8 service prior to July 1, 1990, and shall pay the member
9 contribution applicable for the period being claimed, plus 4
10 percent interest compounded annually from the first year of
11 service claimed until July 1, 1975, and 6.5 percent interest
12 compounded annually thereafter, until full payment is made to
13 the Florida Retirement System Trust Fund; however, such member
14 may purchase retirement credit under the Elected State and
15 County Officers' Class only for such service as an elected
16 officer.
17 2. Upon payment of the amount specified in
18 subparagraph 1., the employer shall pay into the Florida
19 Retirement System Trust Fund the applicable employer
20 contribution for the period of elected officer service prior
21 to July 1, 1990, being claimed by the member, plus 4 percent
22 interest compounded annually from the first year of service
23 claimed until July 1, 1975, and 6.5 percent interest
24 compounded annually thereafter, until full payment is made to
25 the Florida Retirement System Trust Fund.
26 Section 30. Paragraph (b) of subsection (4) of section
27 121.055, Florida Statutes, 1998 Supplement, is amended to
28 read:
29 121.055 Senior Management Service Class.--There is
30 hereby established a separate class of membership within the
31 Florida Retirement System to be known as the "Senior
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Management Service Class," which shall become effective
2 February 1, 1987.
3 (4)
4 (b) Service in an eligible position prior to February
5 1, 1987, or after January 31, 1987, shall satisfy the
6 requirement of attaining the normal retirement date as defined
7 in s. 121.021(29) for a Senior Management Service Class
8 member, provided the employee is a member of the Senior
9 Management Service Class after January 31, 1987. A member of
10 this class who fails to complete 6 7 years of creditable
11 service in an eligible position shall be required to satisfy
12 the requirements for the normal retirement date for a regular
13 member as provided in s. 121.021(29).
14 Section 31. Paragraph (i) of subsection (1) of section
15 121.081, Florida Statutes, 1998 Supplement, is amended to
16 read:
17 121.081 Past service; prior service;
18 contributions.--Conditions under which past service or prior
19 service may be claimed and credited are:
20 (1)
21 (i) An employee of a state agency who was a member of
22 a state-administered retirement system and who was granted
23 educational leave with pay pursuant to a written educational
24 leave-with-pay policy may claim such period of educational
25 leave as past service subject to the following conditions:
26 1. The educational leave must have occurred prior to
27 December 31, 1971;
28 2. The member must have completed at least 6 10 years
29 of creditable service excluding the period of the educational
30 leave;
31 3. The employee must have returned to employment with
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 a state agency employer who participated in the retirement
2 system, which return was immediately upon termination of the
3 educational leave, and must have remained on the employer's
4 payroll for at least 30 calendar days following the return to
5 employment;
6 4. The employee must be a member of the Florida
7 Retirement System at the time he or she claims such service;
8 5. Not more than 24 months of creditable service may
9 be claimed for such period of educational leave with pay;
10 6. The service must not be claimed under any other
11 state or federal retirement system; and
12 7. The member must pay to the retirement trust fund
13 for claiming such past-service credit an amount equal to 8
14 percent of his or her gross annual salary immediately prior to
15 the educational leave with pay for each year of past service
16 claimed, plus 4 percent interest thereon compounded annually
17 each June 30 from the first year of service claimed until July
18 1, 1975, and 6.5 percent interest thereafter on the unpaid
19 balance compounded annually each June 30 until paid.
20 Section 32. Paragraphs (a) and (j) of subsection (4)
21 of section 121.091, Florida Statutes, 1998 Supplement, are
22 amended to read:
23 121.091 Benefits payable under the system.--Benefits
24 may not be paid under this section unless the member has
25 terminated employment as provided in s. 121.021(39)(a) or
26 begun participation in the Deferred Retirement Option Program
27 as provided in subsection (13), and a proper application has
28 been filed in the manner prescribed by the division. The
29 division may cancel an application for retirement benefits
30 when the member or beneficiary fails to timely provide the
31 information and documents required by this chapter and the
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 division's rules. The division shall adopt rules establishing
2 procedures for application for retirement benefits and for the
3 cancellation of such application when the required information
4 or documents are not received.
5 (4) DISABILITY RETIREMENT BENEFIT.--
6 (a) Disability retirement; entitlement and effective
7 date.--
8 1. A member who becomes totally and permanently
9 disabled, as defined in paragraph (b), after completing 5
10 years of creditable service, or a member who becomes totally
11 and permanently disabled in the line of duty regardless of
12 service, shall be entitled to a monthly disability benefit;
13 except that any member with less than 5 years of creditable
14 service on July 1, 1980, or any person who becomes a member of
15 the Florida Retirement System on or after such date must have
16 completed 10 years of creditable service prior to becoming
17 totally and permanently disabled in order to receive
18 disability retirement benefits for any disability which occurs
19 other than in the line of duty. However, if a member employed
20 on July 1, 1980, with less than 5 years of creditable service
21 as of that date, becomes totally and permanently disabled
22 after completing 5 years of creditable service and is found
23 not to have attained fully insured status for benefits under
24 the federal Social Security Act, such member shall be entitled
25 to a monthly disability benefit.
26 2. If the division has received from the employer the
27 required documentation of the member's termination of
28 employment, the effective retirement date for a member who
29 applies and is approved for disability retirement shall be
30 established by rule of the division.
31 3. For a member who is receiving Workers' Compensation
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 payments, the effective disability retirement date may not
2 precede the date the member reaches Maximum Medical
3 Improvement (MMI), unless the member terminates employment
4 prior to reaching MMI.
5 (j) Disability retirement of justice or judge by order
6 of Supreme Court.--
7 1. If a member is a justice of the Supreme Court,
8 judge of a district court of appeal, circuit judge, or judge
9 of a county court who has served for 6 10 years or more as an
10 elected constitutional judicial officer, including service as
11 a judicial officer in any court abolished pursuant to Art. V
12 of the State Constitution, and who is retired for disability
13 by order of the Supreme Court upon recommendation of the
14 Judicial Qualifications Commission pursuant to the provisions
15 of Art. V of the State Constitution, the member's Option 1
16 monthly benefit as provided in subparagraph (6)(a)1. shall not
17 be less than two-thirds of his or her monthly compensation as
18 of the member's disability retirement date. Such a member may
19 alternatively elect to receive a disability retirement benefit
20 under any other option as provided in paragraph (6)(a).
21 2. Should any justice or judge who is a member of the
22 Florida Retirement System be retired for disability by order
23 of the Supreme Court upon recommendation of the Judicial
24 Qualifications Commission pursuant to the provisions of Art. V
25 of the State Constitution, then all contributions to his or
26 her account and all contributions made on his or her behalf by
27 the employer shall be transferred to and deposited in the
28 General Revenue Fund of the state, and there is hereby
29 appropriated annually out of the General Revenue Fund, to be
30 paid into the Florida Retirement System Fund, an amount
31 necessary to pay the benefits of all justices and judges
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Bill No. HB 1883, 1st Eng.
Amendment No.
1 retired from the Florida Retirement System pursuant to Art. V
2 of the State Constitution.
3 Section 33. Paragraph (b) of subsection (1) of section
4 121.1115, Florida Statutes, is amended to read:
5 121.1115 Purchase of retirement credit for
6 out-of-state and federal service.--Effective January 1, 1995,
7 a member of the Florida Retirement System may purchase
8 creditable service for periods of public employment in another
9 state and receive creditable service for such periods of
10 employment. Service with the Federal Government, including any
11 military service, may be claimed. Upon completion of each year
12 of service earned under the Florida Retirement System, a
13 member may purchase up to 1 year of retirement credit for his
14 or her out-of-state service, subject to the following
15 provisions:
16 (1) LIMITATIONS AND CONDITIONS.--To receive credit for
17 the out-of-state service:
18 (b) The member must have completed a minimum of 6 10
19 years of creditable service under the Florida Retirement
20 System, excluding out-of-state service and in-state service
21 claimed and purchased under s. 121.1122.
22 Section 34. Paragraph (a) of subsection (2) of section
23 121.1122, Florida Statutes, 1998 Supplement, is amended to
24 read:
25 121.1122 Purchase of retirement credit for in-state
26 public service and in-state service in accredited nonpublic
27 schools and colleges, including charter schools and charter
28 technical career centers.--Effective January 1, 1998, a member
29 of the Florida Retirement System may purchase creditable
30 service for periods of certain public or nonpublic employment
31 performed in this state, as provided in this section.
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 (2) LIMITATIONS AND CONDITIONS.--
2 (a) A member is not eligible to receive credit for
3 in-state service under this section until he or she has
4 completed 6 10 years of creditable service under the Florida
5 Retirement System, excluding service purchased under this
6 section and out-of-state service claimed and purchased under
7 s. 121.1115.
8 Section 35. Paragraph (a) of subsection (1) of section
9 121.121, Florida Statutes, 1998 Supplement, is amended to
10 read:
11 121.121 Authorized leaves of absence.--
12 (1) A member may purchase creditable service for up to
13 2 work years of authorized leaves of absence if:
14 (a) The member has completed a minimum of 6 10 years
15 of creditable service, excluding periods for which a leave of
16 absence was authorized;
17 (b) The leave of absence is authorized in writing by
18 the employer of the member and approved by the administrator;
19 (c) The member returns to active employment performing
20 service with a Florida Retirement System employer in a
21 regularly established position immediately upon termination of
22 the leave of absence and remains on the employer's payroll for
23 1 calendar month, except that a member who retires on
24 disability while on a medical leave of absence shall not be
25 required to return to employment. A member whose work year is
26 less than 12 months and whose leave of absence terminates
27 between school years is eligible to receive credit for the
28 leave of absence as long as he or she returns to the
29 employment of his or her employer at the beginning of the next
30 school year and remains on the employer's payroll for 1
31 calendar month; and
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Bill No. HB 1883, 1st Eng.
Amendment No.
1 (d) The member makes the required contributions for
2 service credit during the leave of absence, which shall be 8
3 percent until January 1, 1975, and 9 percent thereafter of his
4 or her rate of monthly compensation in effect immediately
5 prior to the commencement of such leave for each month of such
6 period, plus 4 percent interest until July 1, 1975, and 6.5
7 percent interest thereafter on such contributions, compounded
8 annually each June 30 from the due date of the contribution to
9 date of payment. Effective July 1, 1980, any leave of absence
10 purchased pursuant to this section shall be at the
11 contribution rates specified in s. 121.071 in effect at the
12 time the leave is granted for the class of membership from
13 which the leave of absence was granted; however, any member
14 who purchased leave-of-absence credit prior to July 1, 1980,
15 for a leave of absence from a position in a class other than
16 the regular membership class, may pay the appropriate
17 additional contributions plus compound interest thereon and
18 receive creditable service for such leave of absence in the
19 membership class from which the member was granted the leave
20 of absence.
21 Section 36. The Legislature finds that a proper and
22 legitimate state purpose is served when employees and retirees
23 of the state and of its political subdivisions, and the
24 dependents, survivors, and beneficiaries of such employees and
25 retirees, are extended the basic protections afforded by
26 governmental retirement systems that provide fair and adequate
27 benefits that are managed, administered, and funded in an
28 actuarially sound manner, as required by Section 14 of Article
29 X of the State Constitution and part VII of chapter 112,
30 Florida Statutes. Therefore, the Legislature determines and
31 declares that this act fulfills an important state interest.
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Bill No. HB 1883, 1st Eng.
Amendment No.
1 Section 37. The Regular Class Optional Retirement
2 Program created by this act shall be implemented beginning
3 July 1, 2001, contingent upon the Division of Retirement
4 receiving a favorable determination letter and a favorable
5 private-letter ruling from the Internal Revenue Service before
6 the end of the regular session of the Legislature held in
7 2001.
8 Section 38. Paragraph (b) of subsection (5) of section
9 121.091, Florida Statutes, is amended to read:
10 121.091 Benefits payable under the system.--Benefits
11 may not be paid under this section unless the member has
12 terminated employment as provided in s. 121.021(39)(a) or
13 begun participation in the Deferred Retirement Option Program
14 as provided in subsection (13), and a proper application has
15 been filed in the manner prescribed by the division. The
16 division may cancel an application for retirement benefits
17 when the member or beneficiary fails to timely provide the
18 information and documents required by this chapter and the
19 division's rules. The division shall adopt rules establishing
20 procedures for application for retirement benefits and for the
21 cancellation of such application when the required information
22 or documents are not received.
23 (5) TERMINATION BENEFITS.--
24 (b) A member whose employment is terminated for any
25 reason other than death or retirement after becoming vested
26 may elect to receive a deferred monthly benefit which shall
27 begin to accrue on the first day of the month of normal or
28 early retirement and shall be payable on the last day of that
29 month and each month thereafter during his or her lifetime.
30 The amount of monthly benefit shall be computed in the same
31 manner as for a normal retirement benefit in accordance with
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 subsection (1) or early retirement benefit in accordance with
2 s. 121.021(30), but based on average monthly compensation and
3 creditable service as of the date of termination, which
4 compensation shall be indexed from the date of termination to
5 the date of retirement by 3 percent per annum.
6 Section 39. Subsection (11) is added to section
7 216.136, Florida Statutes, 1998 Supplement, to read:
8 216.136 Consensus estimating conferences; duties and
9 principals.--
10 (11) FLORIDA RETIREMENT SYSTEM ACTUARIAL ASSUMPTION
11 CONFERENCE.--
12 (a) Duties.--The Florida Retirement System Actuarial
13 Assumption Conference shall by consensus develop official
14 information with respect to the economic and noneconomic
15 assumptions and funding methods of the Florida Retirement
16 System necessary to perform the study. Such information shall
17 include an analysis of the actuarial assumptions and actuarial
18 methods and a determination of whether changes to the
19 assumptions or methods need to be made due to experience
20 changes or revised future forecasts.
21 (b) PRINCIPALS.--The principals of the conference
22 shall include the budget director of the Office of Planning
23 and Budgeting, the executive director of the State Board of
24 Administration, the director of the Division of Retirement,
25 the Coordinator of the Office of Economic and Demographic
26 Research, the staff director of the Senate Committee on
27 Budget, the executive director of the House of Representatives
28 Fiscal Responsibility Council, the staff director of the
29 Senate Committee on Governmental Oversight and Productivity,
30 and the staff director of the House of Representatives
31 Committee on Governmental Operations. The executive director
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 of the State Board of Administration shall preside over
2 sessions of the conference.
3 Section 40. Paragraph (c) is added to subsection (15)
4 of section 121.021, Florida Statutes, 1998 Supplement, to
5 read:
6 121.021 Definitions.--The following words and phrases
7 as used in this chapter have the respective meanings set forth
8 unless a different meaning is plainly required by the context:
9 (15)
10 (c) Effective October 1, 1999, "special risk member"
11 means a member of the Florida Retirement System who is
12 designated as a special risk member by the division in
13 accordance with s. 121.0515. Such member must be employed as
14 a law enforcement officer, a firefighter, a correctional
15 officer, an emergency medical technician, or a paramedic and
16 must meet certain other special criteria as set forth in s.
17 121.0515.
18 Section 41. Subsections (1) and (2) and paragraph (a)
19 of subsection (7) of section 121.0515, Florida Statutes, 1998
20 Supplement, are amended to read:
21 121.0515 Special risk membership; criteria;
22 designation and removal of classification; credits for past
23 service and prior service; retention of special risk normal
24 retirement date.--
25 (1) LEGISLATIVE INTENT.--In creating the Special Risk
26 Class of membership within the Florida Retirement System, it
27 is the intent and purpose of the Legislature to recognize that
28 persons employed in certain categories of law enforcement,
29 firefighting, and criminal detention, and emergency medical
30 care positions are required as one of the essential functions
31 of their positions to perform work that is physically
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 demanding or arduous, or work that requires extraordinary
2 agility and mental acuity, and that such persons, because of
3 diminishing physical and mental faculties, may find that they
4 are not able, without risk to the health and safety of
5 themselves, the public, or their coworkers, to continue
6 performing such duties and thus enjoy the full career and
7 retirement benefits enjoyed by persons employed in other
8 positions and that, if they find it necessary, due to the
9 physical and mental limitations of their age, to retire at an
10 earlier age and usually with less service, they will suffer an
11 economic deprivation therefrom. Therefore, as a means of
12 recognizing the peculiar and special problems of this class of
13 employees, it is the intent and purpose of the Legislature to
14 establish a class of retirement membership that awards more
15 retirement credit per year of service than that awarded to
16 other employees; however, nothing contained herein shall
17 require ineligibility for special risk membership upon
18 reaching age 55.
19 (2) CRITERIA.--A member, to be designated as a special
20 risk member, must meet the following criteria:
21 (a) The member must be employed as a law enforcement
22 officer and be certified, or required to be certified, in
23 compliance with s. 943.1395; however, sheriffs and elected
24 police chiefs shall be excluded from meeting the certification
25 requirements of this paragraph. In addition, the member's
26 duties and responsibilities must include the pursuit,
27 apprehension, and arrest of law violators or suspected law
28 violators; or the member must be an active member of a bomb
29 disposal unit whose primary responsibility is the location,
30 handling, and disposal of explosive devices; or the member
31 must be the supervisor or command officer of a member or
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 members who have such responsibilities; provided, however,
2 administrative support personnel, including, but not limited
3 to, those whose primary duties and responsibilities are in
4 accounting, purchasing, legal, and personnel, shall not be
5 included;
6 (b) The member must be employed as a firefighter and
7 be certified, or required to be certified, in compliance with
8 s. 633.35 and be employed solely within the fire department of
9 the employer or agency of state government. In addition, the
10 member's duties and responsibilities must include on-the-scene
11 fighting of fires or direct supervision of firefighting units,
12 or the member must be the supervisor or command officer of a
13 member or members who have such responsibilities; provided,
14 however, administrative support personnel, including, but not
15 limited to, those whose primary duties and responsibilities
16 are in accounting, purchasing, legal, and personnel, shall not
17 be included; or
18 (c) The member must be employed as a correctional
19 officer and be certified, or required to be certified, in
20 compliance with s. 943.1395. In addition, the member's
21 primary duties and responsibilities must be the custody, and
22 physical restraint when necessary, of prisoners or inmates
23 within a prison, jail, or other criminal detention facility,
24 or while on work detail outside the facility, or while being
25 transported; or the member must be the supervisor or command
26 officer of a member or members who have such responsibilities;
27 provided, however, administrative support personnel,
28 including, but not limited to, those whose primary duties and
29 responsibilities are in accounting, purchasing, legal, and
30 personnel, shall not be included; however, superintendents and
31 assistant superintendents shall participate in the Special
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Risk Class; or.
2 (d) The member must be employed by a licensed Advance
3 Life Support (ALS) or Basic Life Support (BLS) employer as an
4 emergency medical technician or a paramedic and be certified
5 in compliance with s. 401.27. In addition, the member's
6 primary duties and responsibilities must include on-the-scene
7 emergency medical care. However, administrative support
8 personnel, including, but not limited to, those whose primary
9 responsibilities are in accounting, purchasing, legal, and
10 personnel, shall not be included.
11 (7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT
12 DATE.--
13 (a) A special risk member who is moved or reassigned
14 to a nonspecial risk law enforcement, firefighting, or
15 correctional, or emergency medical care administrative support
16 position with the same agency, or who is subsequently employed
17 in such a position with any law enforcement, firefighting, or
18 correctional, or emergency medical care agency under the
19 Florida Retirement System, shall participate in the Special
20 Risk Administrative Support Class and shall earn credit for
21 such service at the same percentage rate as that earned by a
22 regular member. Notwithstanding the provisions of subsection
23 (4), service in such an administrative support position shall,
24 for purposes of s. 121.091, apply toward satisfaction of the
25 special risk normal retirement date, as defined in s.
26 121.021(29)(b), provided that, while in such position, the
27 member remains certified as a law enforcement officer,
28 firefighter, or correctional officer, emergency medical
29 technician, or paramedic; remains subject to reassignment at
30 any time to a position qualifying for special risk membership;
31 and completes an aggregate of 10 or more years of service as a
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 designated special risk member prior to retirement.
2 Section 42. The Legislature finds that a proper and
3 legitimate state purpose is served when employees and retirees
4 of the state and of its political subdivisions, and the
5 dependents, survivors, and beneficiaries of such employees and
6 retirees, are extended the basic protections afforded by
7 governmental retirement systems that provide fair and adequate
8 benefits and that are managed, administered, and funded in an
9 actuarially sound manner, as required by s. 14 of Art. X of
10 the State Constitution and part VII of chapter 112 of the
11 Florida Statutes. Therefore, the Legislature hereby
12 determines and declares that the provisions of this act
13 fulfill an important state interest.
14 Section 43. This act shall take effect July 1, 2001,
15 except that this section and sections 22 and 37 shall take
16 effect July 1, 1999; however, the Regular Class Optional
17 Retirement Program created by this act shall not be
18 implemented, nor shall the provisions of this act which
19 provide for improved vesting and indexing of deferred benefits
20 under the Florida Retirement System take effect, until
21 legislation is enacted to properly fund such benefit
22 improvements through adjustments to the contribution rates for
23 the various membership classes of the Florida Retirement
24 System, as required by Article X, Section 14, of the State
25 Constitution. Also, the reenactment of subsection (6) of
26 section 121.051, paragraph (a) of subsection (7) of section
27 121.052, paragraph (a) of subsection (3) of section 121.055,
28 subsection (1) of section 121.071, subsection (12) of section
29 121.40, and subsections (11) and (12) of section 413.051,
30 Florida Statutes, shall operate retroactively to June 7, 1996.
31
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 Delete everything before the enacting clause
4
5 and insert:
6 A bill to be entitled
7 An act relating to state-administered
8 retirement systems; amending s. 112.63, F.S.;
9 providing for review and comment on local
10 government retirement system actuarial
11 valuation reports and impact statements on a
12 triennial basis; clarifying the basis of
13 required payments; amending s. 112.65, F.S.;
14 modifying the limitation on benefits for
15 service under more than one retirement system
16 or plan; amending s. 121.011, F.S.; clarifying
17 requirements related to consolidation of
18 existing retirement systems and preservation of
19 rights; amending s. 121.021, F.S.; redefining
20 "creditable service" to conform the definition
21 to existing law; clarifying creditable service
22 provisions for certain school board employees;
23 amending s. 121.031, F.S.; authorizing the
24 Division of Retirement to adopt rules; creating
25 the Florida Retirement System Actuarial
26 Assumption Conference; providing for duties and
27 members; reenacting s. 121.051(6), F.S.,
28 relating to Florida Retirement System
29 membership status of blind vending facility
30 operators; reenacting ss. 121.052(7)(a),
31 121.055(3)(a), and 121.071(1), F.S., relating
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 to contribution rates; amending ss. 121.052,
2 121.055, and 121.071, F.S., changing
3 contribution rates for specified classes and
4 subclasses of the system; correcting an error;
5 conforming provisions relating to de minimis
6 accounts to federal law; amending s. 121.081,
7 F.S.; clarifying provisions relating to past
8 service and prior service; amending s. 121.091,
9 F.S.; clarifying proof of disability
10 requirements; modifying provisions relating to
11 death benefits to permit purchase of certain
12 retirement credit by joint annuitants;
13 clarifying the contribution rate and interest
14 required to be paid for such purchases;
15 increasing the age at which a Special Risk
16 Class Member must elect whether to participate
17 in the Deferred Retirement Option Program;
18 updating and correcting references; amending s.
19 121.122, F.S.,; correcting a reference;
20 amending 121.24, F.S.; authorizing the State
21 Retirement Commission to adopt rules; amending
22 s. 121.35, F.S.; conforming provisions relating
23 to de minimis accounts to federal law; amending
24 s. 121.40, F.S., to remove reemployment
25 limitations and reenacting subsection (12),
26 relating to contribution rates for the
27 supplemental retirement program for the
28 Institute of Food and Agricultural Sciences at
29 the University of Florida; reenacting s.
30 413.051(11) and (12), F.S., relating to Florida
31 Retirement System membership eligibility and
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 retirement contribution payments for blind
2 vending facility operators; amending ss.
3 175.071 and 185.06, F.S.; providing, with
4 respect to the board of trustees for municipal
5 firefighters' pension trust funds and municipal
6 police officers' retirement trust funds that
7 the board may invest in corporations on the
8 National Market System of the Nasdaq Stock
9 Market; repealing s. 121.027, F.S., amending s.
10 112.18, F.S.; providing presumptions that
11 certain illnesses incurred by law enforcement
12 officers are done so in the line of duty;
13 relating to rulemaking authority for that act;
14 requiring the Board of Trustees of the State
15 Board of Administration to review the actuarial
16 valuation of the Florida Retirement System;
17 requiring the Board to review the process of
18 retirement contribution rates and comment to
19 the legislature; creating s. 121.36, F.S.;
20 creating an optional retirement program for
21 employees who are regular members of the
22 Florida Retirement System; providing
23 eligibility criteria; defining terms; providing
24 that employees may participate in the optional
25 retirement program in lieu of participating in
26 the Florida Retirement System; providing for
27 retention of retirement service credits;
28 providing for transfer of the present value of
29 accrued benefits under the Florida Retirement
30 System; providing requirements for electing the
31 optional program; providing for contributions
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 to the optional program; prescribing vesting
2 requirements; providing for payment of
3 benefits; providing for the Division of
4 Retirement of the Department of Management
5 Services to administer the program; prescribing
6 criteria for selecting investment providers and
7 products and for investment options and
8 products; providing for performance reviews;
9 prescribing contract requirements; requiring
10 that the State Board of Administration provide
11 advice and assistance to the division and
12 review proposals; providing for compliance with
13 federal revenue laws; providing an investment
14 policy statement; amending s. 112.363, F.S.;
15 excluding participants from eligibility for
16 certain health insurance subsidies; prescribing
17 standards for contracts and descriptive
18 materials; providing that the act fulfills an
19 important state interest; amending s. 121.021,
20 F.S.; modifying definitions to provide for
21 6-year graded vesting for all members; amending
22 ss. 112.363, 121.0515, 121.052, 121.053,
23 121.055, 121.081, 121.091, 121.1115, 121.1122,
24 121.121, F.S., to conform; providing a
25 contingency for implementation of the program;
26 providing for indexing benefits for early
27 terminators; increasing the employer
28 contribution rate for members of the Regular
29 Class of the Florida Retirement System;
30 amending s. 216.136, F.S.; creating a Florida
31 Retirement System Actuarial Assumption
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SENATE AMENDMENT
Bill No. HB 1883, 1st Eng.
Amendment No.
1 Conference; providing duties and principals;
2 amending s. 121.021, F.S.; redefining the term
3 "special risk member"; amending s. 121.0515,
4 F.S.; adding to the Special Risk Class of
5 membership certain emergency medical
6 technicians and paramedics; providing
7 legislative intent; providing effective dates.
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9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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