House Bill 1883

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    Florida House of Representatives - 1999                HB 1883

        By the Committee on Governmental Operations and
    Representatives Posey, Ball, Fasano, A. Greene and Hafner





  1                      A bill to be entitled

  2         An act relating to state-administered

  3         retirement systems; amending s. 112.63, F.S.;

  4         providing for review and comment on local

  5         government retirement system actuarial

  6         valuation reports and impact statements on a

  7         triennial basis; clarifying the basis of

  8         required payments; amending s. 112.65, F.S.;

  9         modifying the limitation on benefits for

10         service under more than one retirement system

11         or plan; amending s. 121.011, F.S.; clarifying

12         requirements related to consolidation of

13         existing retirement systems and preservation of

14         rights; amending s. 121.021, F.S.; redefining

15         "creditable service" to conform the definition

16         to existing law; clarifying creditable service

17         provisions for certain school board employees;

18         amending s. 121.031, F.S.; authorizing the

19         Division of Retirement to adopt rules; creating

20         the Florida Retirement System Actuarial

21         Assumption Conference; providing for duties and

22         members; reenacting s. 121.051(6), F.S.,

23         relating to Florida Retirement System

24         membership status of blind vending facility

25         operators; reenacting ss. 121.052(7)(a),

26         121.055(3)(a), and 121.071(1), F.S., relating

27         to contribution rates; amending ss. 121.052,

28         121.055, and 121.071, F.S., changing

29         contribution rates for specified classes and

30         subclasses of the system; correcting an error;

31         conforming provisions relating to de minimis

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  1         accounts to federal law; amending s. 121.081,

  2         F.S.; clarifying provisions relating to past

  3         service and prior service; amending s. 121.091,

  4         F.S.; clarifying proof of disability

  5         requirements; modifying provisions relating to

  6         death benefits to permit purchase of certain

  7         retirement credit by joint annuitants;

  8         clarifying the contribution rate and interest

  9         required to be paid for such purchases;

10         updating and correcting references; amending s.

11         121.122, F.S.,; correcting a reference;

12         amending 121.24, F.S.; authorizing the State

13         Retirement Commission to adopt rules; amending

14         s. 121.35, F.S.; conforming provisions relating

15         to de minimis accounts to federal law; amending

16         s. 121.40, F.S., to remove reemployment

17         limitations and reenacting subsection (12),

18         relating to contribution rates for the

19         supplemental retirement program for the

20         Institute of Food and Agricultural Sciences at

21         the University of Florida; reenacting s.

22         413.051(11) and (12), F.S., relating to Florida

23         Retirement System membership eligibility and

24         retirement contribution payments for blind

25         vending facility operators; repealing s.

26         121.027, F.S., relating to rulemaking authority

27         for that act; providing an effective date.

28

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

30

31

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  1         Section 1.  Subsections (4) and (5) of section 112.63,

  2  Florida Statutes, are amended to read:

  3         112.63  Actuarial reports and statements of actuarial

  4  impact; review.--

  5         (4)  Upon receipt, pursuant to subsection (2), of an

  6  actuarial report, or upon receipt, pursuant to subsection (3),

  7  of a statement of actuarial impact, the division shall

  8  acknowledge such receipt, but shall only review and comment on

  9  each retirement system's or plan's the actuarial valuations at

10  least on a triennial basis and statements.  If the division

11  finds that the actuarial valuation is not complete, accurate,

12  or based on reasonable assumptions, or if the division does

13  not receive the actuarial report or statement of actuarial

14  impact, the division shall notify the local government and

15  request appropriate adjustment. If, after a reasonable period

16  of time, a satisfactory adjustment is not made, the affected

17  local government or the division may petition for a hearing

18  under the provisions of ss. 120.569 and 120.57. If the

19  administrative law judge recommends in favor of the division,

20  the division shall perform an actuarial review or prepare the

21  statement of actuarial impact. The cost to the division of

22  performing such actuarial review or preparing such statement

23  shall be charged to the governmental entity of which the

24  employees are covered by the retirement system or plan.  If

25  payment of such costs is not received by the division within

26  60 days after receipt by the governmental entity of the

27  request for payment, the division shall certify to the

28  Comptroller the amount due, and the Comptroller shall pay such

29  amount to the division from any funds payable to the

30  governmental entity of which the employees are covered by the

31  retirement system or plan.  If the administrative law judge

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  1  recommends in favor of the local retirement system and the

  2  division performs an actuarial review, the cost to the

  3  division of performing the actuarial review shall be paid by

  4  the division.

  5         (5)  Payments made to the fund as required by this

  6  chapter shall be based on the normal and past service costs

  7  contained in the state-accepted version of the most recent

  8  actuarial valuation, subject to being state-accepted.

  9         Section 2.  Subsection (2) of section 112.65, Florida

10  Statutes, is amended to read:

11         112.65  Limitation of benefits.--

12         (2)  No member of a retirement system or plan covered

13  by this part who is not now a member of such plan shall be

14  allowed to receive a retirement benefit or pension which is in

15  part or in whole based upon any service with respect to which

16  the member is already receiving, or will receive in the

17  future, a retirement benefit or pension from a different

18  employer's another retirement system or plan.  This

19  restriction does not apply to social security benefits or

20  federal benefits under chapter 67, Title 10, U.S. Code.

21         Section 3.  Paragraph (b) of subsection (2) of section

22  and paragraph (e) of subsection (3) of section 121.011,

23  Florida Statutes, 1998 Supplement, are amended to read:

24         121.011  Florida Retirement System.--

25         (2)  CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--

26         (b)  The chapters or retirement system laws named in

27  paragraph (a) are hereby consolidated as separate instruments

28  appended to the "Florida Retirement System Act" established by

29  this chapter, and the administration of said chapters or

30  retirement systems shall be consolidated with the

31  administration of the Florida Retirement System established by

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  1  this chapter, and the Florida Retirement System shall assume

  2  all liabilities related to the payment of benefits to members

  3  and their beneficiaries under the respective retirement

  4  systems of the members and their beneficiaries.

  5         (3)  PRESERVATION OF RIGHTS.--

  6         (e)  Any member of the Florida Retirement System or any

  7  member of an existing system under this chapter on July 1,

  8  1975, who is not retired and who is, has been, or shall be,

  9  suspended and reinstated without compensation shall receive

10  retirement service credit for the period of time from the date

11  of suspension to the date of reinstatement, provided:

12         1.  The creditable service claimed for the period of

13  suspension does not exceed 24 months;

14         2.  The member returns to active employment and remains

15  on the employer's payroll for at least 1 calendar month 30

16  calendar days; and

17         3.  The member pays into the Retirement System Trust

18  Fund the total required employer contributions plus the total

19  employee contributions, if applicable, based on the member's

20  monthly compensation in effect for the pay period immediately

21  preceding the period of suspension, prorated for the said

22  period of suspension, plus interest thereon at a rate of 4

23  percent per annum compounded annually until July 1, 1975, and

24  6.5 percent interest thereafter until paid.  If permitted by

25  federal law, the member may pay into the Social Security Trust

26  Fund the total cost, if any, of providing social security

27  coverage for the period of suspension if any social security

28  payments have been made by the employer for the benefit of the

29  member during such period. Should there be any conflict as to

30  payment for social security coverage, the payment for

31

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  1  retirement service credit shall be made and retirement service

  2  credit granted regardless of such conflict.

  3         Section 4.  Paragraph (a) of subsection (17) of section

  4  121.021, Florida Statutes, 1998 Supplement, is amended 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         (17)(a)  "Creditable service" of any member means the

10  sum of his or her past service, prior service, military

11  service, out-of-state or non-FRS in-state service, workers'

12  compensation credit, leave-of-absence credit and future

13  service allowed within the provisions of this chapter if all

14  required contributions have been paid and all other

15  requirements of this chapter have been met. However, in no

16  case shall a member receive credit for more than a year's

17  service during any 12-month period. Service by as applied to a

18  teacher, or a nonacademic employee of a school board, or an

19  employee of a participating employer other than a school board

20  whose total employment is to provide services to a school

21  board for the school year only shall be based on contract

22  years of employment or school term years of employment, as

23  provided in chapters 122 and 238, rather than 12-month periods

24  of employment.

25         Section 5.  Subsections (1) and (3) of section 121.031,

26  Florida Statutes, are amended  to read:

27         121.031  Administration of system; appropriation;

28  oaths; actuarial studies; public records.--

29         (1)  The Division of Retirement has the authority to

30  adopt shall make such rules pursuant to ss. 120.54 and

31  120.536(1) to implement the provisions of law conferring

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  1  duties upon the division and to adopt rules as are necessary

  2  for the effective and efficient administration of this system.

  3  The funds to pay the expenses for such administration of the

  4  system are hereby appropriated from the interest earned on

  5  investments made for the retirement and social security trust

  6  funds and the assessments allowed under chapter 650.

  7         (3)  The administrator shall cause an actuarial study

  8  of the system to be made at least once every 2 years and shall

  9  report the results of such study to the Legislature by

10  February 1 prior to the next legislative session.  Such study

11  shall, at a minimum, conform to the requirements of s. 112.63,

12  with the following exceptions and additions:

13         (a)  The study shall, at a minimum, conform to the

14  requirements of s. 112.63, with the following exceptions and

15  additions:

16         1.(a)  The valuation of plan assets shall be based on a

17  5-year averaging methodology such as that specified in the

18  United States Department of Treasury Regulations, 26 C.F.R. s.

19  1.412(c)(2)-1, or a similar accepted approach designed to

20  attenuate fluctuations in asset values.

21         2.(b)  The study shall include a narrative explaining

22  the changes in the covered group over the period between

23  actuarial valuations and the impact of those changes on

24  actuarial results.

25         3.(c)  When substantial changes in actuarial

26  assumptions have been made, the study shall reflect the

27  results of an actuarial assumption as of the current date

28  based on the assumptions utilized in the prior actuarial

29  report.

30         4.(d)  The study shall include an analysis of the

31  changes in actuarial valuation results by the factors

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  1  generating those changes.  Such analysis shall reconcile the

  2  current actuarial valuation results with those results from

  3  the prior valuation.

  4         5.(e)  The study shall include measures of funding

  5  status and funding progress designed to facilitate the

  6  assessment of trends over several actuarial valuations with

  7  respect to the overall solvency of the system. Such measures

  8  shall be adopted by the division and shall be used

  9  consistently in all actuarial valuations performed on the

10  system.

11         (b)  The Florida Retirement System Actuarial Assumption

12  Conference which is hereby created shall by consensus develop

13  official information with respect to the economic and

14  noneconomic assumptions and funding methods of the Florida

15  Retirement System necessary to perform the study. Such

16  information shall include: an analysis of the actuarial

17  assumptions and actuarial methods and a determination of

18  whether changes to the assumptions or methods need to be made

19  due to experience changes or revised future forecasts. The

20  members of the conference shall include the budget director of

21  the Office of Planning and Budgeting, the executive director

22  of the State Board of Administration, the director of the

23  Division of Retirement, the Coordinator of the Office of

24  Economic and Demographic Research, the staff director of the

25  Senate Committee on Budget, the executive director of the

26  House of Representatives Fiscal Responsibility Council, the

27  staff director of the Senate Committee on Governmental

28  Oversight and Productivity, and the staff director of the

29  House of Representatives Committee on Governmental Operations.

30  The executive director of the State Board of Administration

31  shall preside over sessions of the conference.

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  1         Section 6.  Subsection (6) of section 121.051, Florida

  2  Statutes, 1998 Supplement, as amended by chapter 96-423, Laws

  3  of Florida, is reenacted to read:

  4         121.051  Participation in the system.--

  5         (6)  SEASONAL STATE EMPLOYMENT; BLIND VENDING FACILITY

  6  OPERATORS.--

  7         (a)  Seasonal state employment shall be included under

  8  this chapter, and the time limit and procedure for claiming

  9  same as set forth in s. 122.07 shall continue under this

10  chapter for those members transferring to this system and for

11  all new members.

12         (b)1.  All blind or partially sighted persons employed

13  or licensed by the Division of Blind Services as vending

14  facility operators on or after December 1, 1970, and prior to

15  July 1, 1996, are hereby declared to be state employees within

16  the meaning of this chapter, and all vending facility

17  operators licensed and employed during that period shall be

18  compulsory members of the Florida Retirement System in

19  compliance with this chapter for as long as the member is a

20  vending facility operator, except as provided in subparagraph

21  3.

22         2.  Blindness shall not be deemed a retirement

23  disability within the provisions of this chapter for such

24  members as are contemplated by this paragraph.

25         3.  Any vending facility operator as described in

26  subparagraph 1. may elect, on or before July 31, 1996, to

27  withdraw from the Florida Retirement System as provided in s.

28  413.051(11).  The election to withdraw shall take effect as of

29  July 1, 1996, and the decision to withdraw is irrevocable.  A

30  vending facility operator who withdraws from the Florida

31  Retirement System as provided in this subparagraph shall

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  1  retain all creditable service earned in the Florida Retirement

  2  System through the month that retirement contributions ceased

  3  to be reported, and no creditable service shall be earned as a

  4  vending facility operator after such month.  However, any such

  5  person may participate in the Florida Retirement System in the

  6  future if employed by a participating employer in a covered

  7  position.

  8         4.  All blind or partially sighted persons employed or

  9  licensed by the Division of Blind Services as vending facility

10  operators on or after July 1, 1996, shall be independent

11  contractors within the meaning of this chapter and shall not

12  be eligible for membership in the Florida Retirement System.

13         Section 7.  Paragraph (a) of subsection (7) of section

14  121.052, Florida Statutes, 1998 Supplement, as amended by

15  chapters 96-423 nd 98-413, Laws of Florida, is reenacted and

16  amended to read:

17         121.052  Membership class of elected officers.--

18         (7)  CONTRIBUTIONS.--

19         (a)  The following table states the required retirement

20  contribution rates for members of the Elected Officers' Class

21  and their employers in terms of a percentage of the member's

22  gross compensation. A change in a contribution rate is

23  effective with the first salary paid on or after the beginning

24  date of the change. Contributions shall be made or deducted as

25  may be appropriate for each pay period and are in addition to

26  the contributions required for social security and the Retiree

27  Health Insurance Subsidy Trust Fund.

28

29  Dates of Contribution

30    Rate Changes                             Members   Employers

31

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  1  July 1, 1972, through September 30, 1977

  2    Legislators                                 8%           8%

  3    All Other Members                           8%           8%

  4

  5  October 1, 1977, through September 30, 1978

  6    Legislators                                 8%           8%

  7    All Other Members                           4%          12%

  8

  9  October 1, 1978, through September 30, 1979

10    Legislators                                 8%       10.57%

11    All Other Members                           4%       16.78%

12

13  October 1, 1979, through September 30, 1981

14    Legislators                                 8%       10.57%

15    Governor, Lt. Governor, Cabinet

16      Officers                                  4%       16.78%

17    All Other Members                           0%       20.78%

18

19  July 1, 1981, through June 30, 1984

20    County Elected Officers                     0%       19.30%

21

22  July 1, 1984, through September 30, 1984

23    County Elected Officers                     0%       20.25%

24

25  October 1, 1981, through September 30, 1984

26    Legislators                                 0%       19.30%

27    Governor, Lt. Governor, Cabinet

28      Officers                                  0%       21.03%

29    State Attorneys, Public Defenders           0%       20.95%

30    Justices, Judges                            0%       22.55%

31

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  1  October 1, 1984, through September 30, 1986

  2    Legislators                                 0%       10.98%

  3    Governor, Lt. Governor, Cabinet

  4      Officers                                  0%       10.98%

  5    State Attorneys, Public Defenders           0%       10.98%

  6    Justices, Judges                            0%       21.79%

  7    County Elected Officers                     0%       16.97%

  8

  9  October 1, 1986, through December 31, 1988

10    Legislators                                 0%       11.50%

11    Governor, Lt. Governor, Cabinet

12      Officers                                  0%       11.50%

13    State Attorneys, Public Defenders           0%       11.50%

14    Justices, Judges                            0%       20.94%

15    County Elected Officers                     0%       17.19%

16

17  January 1, 1989, through December 31, 1989

18    Legislators                                 0%       13.70%

19    Governor, Lt. Governor, Cabinet

20      Officers                                  0%       13.70%

21    State Attorneys, Public Defenders           0%       13.70%

22    Justices, Judges                            0%       22.58%

23    County Elected Officers                     0%       18.44%

24

25  January 1, 1990, through December 31, 1990

26    Legislators                                 0%       15.91%

27    Governor, Lt. Governor, Cabinet

28      Officers                                  0%       15.91%

29    State Attorneys, Public Defenders           0%       15.91%

30    Justices, Judges                            0%       24.22%

31    County Elected Officers                     0%       19.71%

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  1

  2  January 1, 1991, through December 31, 1991

  3    Legislators                                 0%       17.73%

  4    Governor, Lt. Governor, Cabinet

  5      Officers                                  0%       17.73%

  6    State Attorneys, Public Defenders           0%       17.73%

  7    Justices, Judges                            0%       26.63%

  8    County Elected Officers                     0%       23.32%

  9

10  January 1, 1992, through December 31, 1992

11    Legislators                                 0%       19.94%

12    Governor, Lt. Governor, Cabinet

13      Officers                                  0%       19.94%

14    State Attorneys, Public Defenders           0%       19.94%

15    Justices, Judges                            0%       28.27%

16    County Elected Officers                     0%       24.59%

17

18  January 1, 1993, through December 31, 1993

19    Legislators                                 0%       22.14%

20    Governor, Lt. Governor, Cabinet

21      Officers                                  0%       22.14%

22    State Attorneys, Public Defenders           0%       22.14%

23    Justices, Judges                            0%       29.91%

24    County Elected Officers                     0%       25.84%

25

26  January 1, 1994, through December 31, 1994

27    Legislators                                 0%       22.65%

28    Governor, Lt. Governor, Cabinet

29      Officers                                  0%       22.65%

30    State Attorneys, Public Defenders           0%       22.65%

31    Justices, Judges                            0%       30.52%

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  1    County Elected Officers                     0%       26.07%

  2

  3  January 1, 1995, through December 31, 1995

  4    Legislators                                 0%       22.80%

  5    Governor, Lt. Governor, Cabinet

  6      Officers                                  0%       22.80%

  7    State Attorneys, Public Defenders           0%       22.80%

  8    Justices, Judges                            0%       30.21%

  9    County Elected Officers                     0%       27.48%

10

11  January 1, 1996, through June 30, 1996

12    Legislators                                 0%       22.90%

13    Governor, Lt. Governor, Cabinet

14      Officers                                  0%       22.90%

15    State Attorneys, Public Defenders           0%       22.90%

16    Justices, Judges                            0%       30.15%

17    County Elected Officers                     0%       27.54%

18

19  July 1, 1996, through June 30, 1998

20    Legislators                                 0%       23.07%

21    Governor, Lt. Governor, Cabinet

22      Officers                                  0%       23.07%

23    State Attorneys, Public Defenders           0%       23.07%

24    Justices, Judges                            0%       29.55%

25    County Elected Officers                     0%       27.33%

26

27  Effective July 1, 1998, through

28    June 30, 1999

29    Legislators                                 0%       22.33%

30    Governor, Lt. Governor, Cabinet

31      Officers                                  0%       22.33%

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  1    State Attorneys, Public Defenders           0%       22.33%

  2    Justices, Judges                            0%       27.21%

  3    County Elected Officers                     0%       26.99%

  4

  5  Effective July 1, 1999

  6    Legislators                                 0%       14.31%

  7    Governor, Lt. Governor, Cabinet

  8    Officers                                    0%       14.31%

  9    State Attorneys, Public

10      Defenders                                 0%       14.31%

11    Justices, Judges                            0%       20.48%

12    County Elected

13      Officers                                  0%       17.05%

14

15         Section 8.  Paragraph (a) of subsection (3) of section

16  121.055, Florida Statutes, 1998 Supplement, as amended by

17  chapters 96-423 and 98-413, Laws of Florida, is reenacted and

18  amended, and paragraph (e) of subsection (6) of said section

19  is amended, to read:

20         121.055  Senior Management Service Class.--There is

21  hereby established a separate class of membership within the

22  Florida Retirement System to be known as the "Senior

23  Management Service Class," which shall become effective

24  February 1, 1987.

25         (3)(a)  The following table states the required

26  retirement contribution rates for members of the Senior

27  Management Service Class and their employers in terms of a

28  percentage of the member's gross compensation.  A change in

29  the contribution rate is effective with the first salary paid

30  on or after the beginning date of the change.  Contributions

31  shall be made for each pay period and are in addition to the

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  1  contributions required for social security and the Retiree

  2  Health Insurance Subsidy Trust Fund.

  3

  4  Dates of Contribution

  5    Rate Changes                          Members   Employers

  6

  7  February 1, 1987, through

  8    December 31, 1988                       0%       13.88%

  9  January 1, 1989, through

10    December 31, 1989                       0%       14.95%

11  January 1, 1990, through

12    December 31, 1990                       0%       16.04%

13  January 1, 1991, through

14    December 31, 1991                       0%       18.39%

15  January 1, 1992, through

16    December 31, 1992                       0%       19.48%

17  January 1, 1993, through

18    December 31, 1993                       0%       20.55%

19  January 1, 1994, through

20    December 31, 1994                       0%       23.07%

21  January 1, 1995, through

22    December 31, 1995                       0%       23.88%

23  January 1, 1996, through

24    June 30, 1996                           0%       24.14%

25  July 1, 1996, through

26    June 30, 1998                           0%       21.58%

27  Effective July 1, 1998, through

28    June 30, 1999                           0%       23.10%

29  Effective July 1, 1999                    0%       11.19%

30

31         (6)

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  1         (e)  Benefits.--

  2         1.  Benefits shall be payable under the Senior

  3  Management Service Optional Annuity Program only to

  4  participants in the program, or their beneficiaries as

  5  designated by the participant in the contract with a provider

  6  company, and such benefits shall be paid by the designated

  7  company in accordance with the terms of the annuity contract

  8  or contracts applicable to the participant. A participant must

  9  be terminated from all employment with all Florida Retirement

10  System employers as provided in s. 121.021(39) to begin

11  receiving the employer-funded benefit. Benefits funded by

12  employer contributions shall be payable only as a lifetime

13  annuity to the participant, his beneficiary, or his estate,

14  except for:

15         a.  A lump-sum payment to the beneficiary upon the

16  death of the participant; or

17         b.  A cash-out of a de minimis account upon the request

18  of a former participant who has been terminated for a minimum

19  of 6 months from the employment that entitled him to optional

20  annuity retirement program participation. A de minimis account

21  is an account with a provider company containing employer

22  contributions and accumulated earnings of not more than $5,000

23  $3,500 made under the provisions of this chapter. Such

24  cash-out must be a complete liquidation of the account balance

25  with that company and is subject to the provisions of the

26  Internal Revenue Code.

27         2.  The benefits payable to any person under the Senior

28  Management Service Optional Annuity Program, and any

29  contribution accumulated under such program, shall not be

30  subject to assignment, execution, or attachment or to any

31  legal process whatsoever.

                                  17

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  1         3.  A participant who receives optional annuity program

  2  benefits funded by employer contributions shall be deemed to

  3  be retired from a state-administered retirement system in the

  4  event of subsequent employment with any employer that

  5  participates in the Florida Retirement System.

  6         Section 9.  Subsection (1) of section 121.071, Florida

  7  Statutes, 1998 Supplement, as amended by chapters 96-423 and

  8  98-413, Laws of Florida, is reenacted and amended to read:

  9         121.071  Contributions.--Contributions to the system

10  shall be made as follows:

11         (1)  The following tables state the required retirement

12  contribution rates for members of the Regular Class, Special

13  Risk Class, or Special Risk Administrative Support Class and

14  their employers in terms of a percentage of the member's gross

15  compensation.  A change in a contribution rate is effective

16  with the first salary paid on or after the beginning date of

17  the change. Contributions shall be made or deducted as may be

18  appropriate for each pay period and are in addition to the

19  contributions required for social security and the Retiree

20  Health Insurance Subsidy Trust Fund.

21         (a)  Retirement contributions for regular members are

22  as follows:

23

24  Dates of Contribution

25    Rate Changes                             Members   Employers

26

27  December 1, 1970, through December

28    31, 1974, for state agencies, state

29    universities, community colleges,

30    and district school boards                  4%           4%

31

                                  18

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  1

  2  December 1, 1970, through September

  3    30, 1975, for all other local

  4    government agencies                         4%           4%

  5

  6  January 1, 1975, through September

  7    30, 1978, for state agencies and

  8    state universities                          0%           9%

  9

10  January 1, 1975, through July 31,

11    1978, for community colleges and

12    district school boards                      0%           9%

13

14  October 1, 1975, through September

15    30, 1978, for all other local

16    government agencies                         0%           9%

17

18  August 1, 1978, through September 30,

19    1981, for community colleges and

20    district school boards                      0%         9.1%

21

22  October 1, 1978, through September

23    30, 1981, for all other agencies            0%         9.1%

24

25  October 1, 1981, through

26    September 30, 1984                          0%       10.93%

27  October 1, 1984, through

28    September 30, 1986                          0%       12.24%

29  October 1, 1986, through

30    December 31, 1988                           0%       13.14%

31  January 1, 1989, through

                                  19

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  1    December 31, 1989                           0%       13.90%

  2  January 1, 1990, through

  3    December 31, 1990                           0%       14.66%

  4  January 1, 1991, through

  5    December 31, 1991                           0%       15.72%

  6  January 1, 1992, through

  7    December 31, 1992                           0%       16.51%

  8  January 1, 1993, through

  9    December 31, 1993                           0%       17.27%

10  January 1, 1994, through

11    December 31, 1994                           0%       17.10%

12  January 1, 1995, through

13    December 31, 1995                           0%       16.91%

14  January 1, 1996, through

15    June 30, 1996                               0%       17.00%

16  July 1, 1996, through

17    June 30, 1998                               0%       16.77%

18  Effective July 1, 1998, through

19    June 30, 1999                               0%       15.51%

20  Effective July 1, 1999                        0%        9.21%

21

22         (b)  Retirement contributions for special risk members

23  are as follows:

24

25  Dates of Contribution

26    Rate Changes                             Members   Employers

27

28  December 1, 1970, through

29    September 30, 1974                          6%           6%

30

31

                                  20

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  1

  2  October 1, 1974, through December 31,

  3    1974, for state agencies, state

  4    universities, community colleges,

  5    and district school boards                  8%           8%

  6

  7  October 1, 1974, through September

  8    30, 1975, for all other local

  9    government agencies                         8%           8%

10

11  January 1, 1975, through September

12    30, 1978, for state agencies, state

13    universities, community colleges,

14    and district school boards                  0%          13%

15

16  October 1, 1975, through September

17    30, 1978, for other local

18    government agencies                         0%          13%

19

20  October 1, 1978, through

21    September 30, 1981                          0%       13.95%

22  October 1, 1981, through

23    September 30, 1984                          0%       13.91%

24  October 1, 1984, through

25    September 30, 1986                          0%       14.67%

26  October 1, 1986, through

27    December 31, 1988                           0%       15.11%

28  January 1, 1989, through

29    December 31, 1989                           0%       17.50%

30  January 1, 1990, through

31    December 31, 1990                           0%       19.90%

                                  21

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  1  January 1, 1991, through

  2    December 31, 1991                           0%       25.52%

  3  January 1, 1992, through

  4    December 31, 1992                           0%       26.35%

  5  January 1, 1993, through

  6    December 31, 1993                           0%       27.14%

  7  January 1, 1994, through

  8    December 31, 1994                           0%       27.03%

  9  January 1, 1995, through

10    December 31, 1995                           0%       26.83%

11  January 1, 1996, through

12    June 30, 1996                               0%       26.84%

13  July 1, 1996, through

14    June 30, 1998                               0%       26.44%

15  Effective July 1, 1998, through

16    June 30, 199                                0%       24.38%

17  Effective July 1, 1999                        0%       20.14%

18

19         (c)  Retirement contributions for special risk

20  administrative support members are as follows:

21

22  Dates of Contribution

23    Rate Changes                             Members   Employers

24

25  July 1, 1982, through

26    September 30, 1984                          0%       11.14%

27  October 1, 1984, through

28    September 30, 1986                          0%       13.09%

29  October 1, 1986, through

30    December 31, 1988                           0%       15.44%

31  January 1, 1989, through

                                  22

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  1    December 31, 1989                           0%       14.76%

  2  January 1, 1990, through

  3    December 31, 1990                           0%       14.09%

  4  January 1, 1991, through

  5    December 31, 1991                           0%       20.16%

  6  January 1, 1992, through

  7    December 31, 1992                           0%       19.51%

  8  January 1, 1993, through

  9    December 31, 1993                           0%       18.83%

10  January 1, 1994, through

11    December 31, 1994                           0%       18.59%

12  January 1, 1995, through

13    December 31, 1995                           0%       17.81%

14  January 1, 1996, through

15    June 30, 1996                               0%       17.80%

16  July 1, 1996, through

17    June 30, 1998                               0%       17.20%

18    Effective July 1, 1998, through

19    June 30, 1999                               0%       14.64%

20  Effective July 1, 1999                        0%        11.53

21

22         Section 10.  Paragraph (i) of subsection (1) and

23  subsection (2) of section 121.081, Florida Statutes, 1998

24  Supplement, are amended to read:

25         121.081  Past service; prior service;

26  contributions.--Conditions under which past service or prior

27  service may be claimed and credited are:

28         (1)

29         (i)  An employee of a state agency who was a member of

30  a state-administered retirement system and who was granted

31  educational leave with pay pursuant to a written educational

                                  23

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  1  leave-with-pay policy may claim such period of educational

  2  leave as past service subject to the following conditions:

  3         1.  The educational leave must have occurred prior to

  4  December 31, 1971;

  5         2.  The member must have completed at least 10 years of

  6  creditable service excluding the period of the educational

  7  leave;

  8         3.  The employee must have returned to employment with

  9  a state agency employer who participated in the retirement

10  system, which return was immediately upon termination of the

11  educational leave, and must have remained on the employer's

12  payroll for at least 1 calendar month 30 calendar days

13  following the return to employment;

14         4.  The employee must be a member of the Florida

15  Retirement System at the time he or she claims such service;

16         5.  Not more than 24 months of creditable service may

17  be claimed for such period of educational leave with pay;

18         6.  The service must not be claimed under any other

19  state or federal retirement system; and

20         7.  The member must pay to the retirement trust fund

21  for claiming such past-service credit an amount equal to 8

22  percent of his or her gross annual salary immediately prior to

23  the educational leave with pay for each year of past service

24  claimed, plus 4 percent interest thereon compounded annually

25  each June 30 from the first year of service claimed until July

26  1, 1975, and 6.5 percent interest thereafter on the unpaid

27  balance compounded annually each June 30 until paid.

28         (2)  Prior service, as defined in s. 121.021(19), may

29  be claimed as creditable service under the Florida Retirement

30  System after a member has been reemployed for 1 complete year

31  of creditable service within a period of 12 consecutive

                                  24

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  1  continuous months, except as provided in paragraph (c).

  2  Service performed as a participant of the optional retirement

  3  program for the State University System under s. 121.35 or the

  4  Senior Management Service Optional Annuity Program under s.

  5  121.055 may be used to satisfy the reemployment requirement of

  6  1 complete year of creditable service 12-continuous-month

  7  requirement.  The member shall not be permitted to make any

  8  contributions for prior service until after completion of the

  9  1 year of creditable service 12-month period. The required

10  contributions for claiming the various types of prior service

11  are:

12         (a)  For prior service performed prior to the date the

13  system becomes noncontributory for the member and for which

14  the member had credit under one of the existing retirement

15  systems and received a refund of contributions upon

16  termination of employment, the member shall contribute 4

17  percent of all salary received during the period being

18  claimed, plus 4 percent interest compounded annually from date

19  of refund until July 1, 1975, and 6.5 percent interest

20  compounded annually thereafter, until full payment is made to

21  the Retirement Trust Fund. A member who elected to transfer to

22  the Florida Retirement System from an existing system may

23  receive credit for prior service under the existing system if

24  he or she was eligible under the existing system to claim the

25  prior service at the time of the transfer. Contributions for

26  such prior service shall be determined by the applicable

27  provisions of the system under which the prior service is

28  claimed and shall be paid by the member, with matching

29  contributions paid by the employer at the time the service was

30  performed. Effective July 1, 1978, the account of a person who

31  terminated under s. 238.05(3) may not be charged interest for

                                  25

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  1  contributions that remained on deposit in the Annuity Savings

  2  Trust Fund established under chapter 238, upon retirement

  3  under this chapter or chapter 238.

  4         (b)  For prior service performed prior to the date the

  5  system becomes noncontributory for the member and for which

  6  the member had credit under the Florida Retirement System and

  7  received a refund of contributions upon termination of

  8  employment, the member shall contribute at the rate that was

  9  required of him or her during the period of service being

10  claimed, on all salary received during such period, plus 4

11  percent interest compounded annually from date of refund until

12  July 1, 1975, and 6.5 percent interest compounded annually

13  thereafter, until the full payment is made to the Retirement

14  Trust Fund.

15         (c)  For prior service as defined in s. 121.021(19)(b)

16  and (c) during which no contributions were made because the

17  member did not participate in a retirement system, the member

18  shall contribute 14.38 percent of all salary received during

19  such period or 14.38 percent of $100 per month during such

20  period, whichever is greater, plus 4 percent interest

21  compounded annually from the first year of service claimed

22  until July 1, 1975, and 6.5 percent interest compounded

23  annually thereafter, until full payment is made to the

24  Retirement Trust Fund.

25         (d)  In order to claim credit for prior service as

26  defined in s. 121.021(19)(d) for which no retirement

27  contributions were paid during the period of such service, the

28  member shall contribute the total employee and employer

29  contributions which were required to be made to the Highway

30  Patrol Pension Trust Fund, as provided in chapter 321, during

31  the period claimed, plus 4 percent interest compounded

                                  26

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  1  annually from the first year of service until July 1, 1975,

  2  and 6.5 percent interest compounded annually thereafter, until

  3  full payment is made to the Retirement Trust Fund.  However,

  4  any governmental entity which employed such member may elect

  5  to pay up to 50 percent of the contributions and interest

  6  required to purchase this prior service credit.

  7         (e)  For service performed under the Florida Retirement

  8  System after December 1, 1970, that was never reported to the

  9  division due to error, retirement credit may be claimed by a

10  member of the Florida Retirement System. The division shall

11  adopt rules establishing criteria for claiming such credit and

12  detailing the documentation required to substantiate the

13  error.

14         (f)  The employer may not be required to make

15  contributions for prior service credit for any member, except

16  that the employer shall pay the employer portion of

17  contributions for any legislator who elects to withdraw from

18  the Florida Retirement System and later rejoins the system and

19  pays any employee contributions required in accordance with s.

20  121.052(3)(d).

21         Section 11.  Paragraph (c) of subsection (4), paragraph

22  (f) of subsection (7), and subparagraph 5. of paragraph (a)

23  and paragraph (i) of subsection (13) of section 121.091,

24  Florida Statutes, 1998 Supplement, are amended to read:

25         121.091  Benefits payable under the system.--Benefits

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

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

28  begun participation in the Deferred Retirement Option Program

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

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

31  division may cancel an application for retirement benefits

                                  27

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  1  when the member or beneficiary fails to timely provide the

  2  information and documents required by this chapter and the

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

  4  procedures for application for retirement benefits and for the

  5  cancellation of such application when the required information

  6  or documents are not received.

  7         (4)  DISABILITY RETIREMENT BENEFIT.--

  8         (b)  Total and permanent disability.--A member shall be

  9  considered totally and permanently disabled if, in the opinion

10  of the administrator, he or she is prevented, by reason of a

11  medically determinable physical or mental impairment, from

12  rendering useful and efficient service as an officer or

13  employee.

14         (c)  Proof of disability.--The administrator, before

15  approving payment of any disability retirement benefit, shall

16  require proof that the member is totally and permanently

17  disabled as provided herein:

18         1.  Such, which proof shall include the certification

19  of the member's total and permanent disability by two licensed

20  physicians of the state and such other evidence of disability

21  as the administrator may require, including reports from

22  vocational rehabilitation, evaluation, or testing specialists

23  who have evaluated the applicant for employment.

24         2.  It must be documented that:

25         a.  The member's medical condition occurred or became

26  symptomatic during the time the member was employed in an

27  employee/employer relationship with his or her employer;

28         b.  The member was totally and permanently disabled at

29  the time he or she terminated covered employment; and

30         c.  The member has not been employed with any other

31  employer after such termination.

                                  28

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  1         3.  If the application is for in-line-of-duty

  2  disability, in addition to the requirements of subparagraph

  3  2., it must be documented by competent medical evidence that

  4  the disability was caused by a job-related illness or accident

  5  which occurred while the member was in an employee/employer

  6  relationship with his or her employer.

  7         4.  The unavailability of an employment position that

  8  the member is physically and mentally capable of performing

  9  will not be considered as proof of total and permanent

10  disability.

11         (7)  DEATH BENEFITS.--

12         (f)  Notwithstanding any other provisions in this

13  chapter to the contrary and upon application to the

14  administrator, an eligible joint annuitant, of a member whose

15  employment is terminated by death within 1 year of such member

16  satisfying the service requirements for vesting and retirement

17  eligibility, shall be permitted to purchase only the

18  additional service credit necessary to vest and qualify for

19  retirement benefits, not to exceed a total of 1 year of

20  credit, by one or a combination of the following methods:

21         1.  Such eligible joint annuitant may use the deceased

22  member's accumulated hours of annual, sick, and compensatory

23  leave to purchase additional creditable service, on an hour by

24  hour basis, provided that such deceased member's accumulated

25  leave is sufficient to cover the additional months required.

26  For each month of service credit needed prior to the final

27  month, credit for the total number of work hours in that month

28  must be purchased, using an equal number of the deceased

29  member's accumulated leave hours.  Service credit required for

30  the final month in which the deceased member would have become

31  vested shall be awarded upon the purchase of 1 hour of credit.

                                  29

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  1  Such eligible joint annuitant shall pay the contribution rate

  2  in effect for the period of time being claimed for at the time

  3  of purchase of the deceased member's class of membership,

  4  multiplied by such member's monthly salary at the time of

  5  death, plus 6.5 percent interest compounded annually.  The

  6  accumulated leave payment used in the average final

  7  compensation shall not include that portion of the payment

  8  that represents any leave hours used in the purchase of such

  9  creditable service.

10         2.  Such eligible joint annuitant may purchase

11  additional months of creditable service, up to a maximum of 1

12  year, for any periods of out-of-state service as provided in

13  s. 121.1115, and or in-state service as provided in s.

14  121.1122, that the deceased member would have been eligible to

15  purchase prior to his or her death.

16

17  Service purchased under this paragraph shall be added to the

18  creditable service of the member and used to vest for

19  retirement eligibility, and shall be used in the calculation

20  of any benefits which may be payable to the eligible joint

21  annuitant.  Any benefits paid in accordance with this

22  paragraph shall only be made prospectively.

23         (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general,

24  and subject to the provisions of this section, the Deferred

25  Retirement Option Program, hereinafter referred to as the

26  DROP, is a program under which an eligible member of the

27  Florida  Retirement System may elect to participate, deferring

28  receipt of retirement benefits while continuing employment

29  with his or her Florida Retirement System employer.  The

30  deferred monthly benefits shall accrue in the System Trust

31  Fund on behalf of the participant, plus interest compounded

                                  30

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  1  monthly, for the specified period of the DROP participation,

  2  as provided in paragraph (c).  Upon termination of employment,

  3  the participant shall receive the total DROP benefits and

  4  begin to receive the previously determined normal retirement

  5  benefits. Participation in the DROP does not guarantee

  6  employment for the specified period of DROP.

  7         (a)  Eligibility of member to participate in the

  8  DROP.--All active Florida Retirement System members in a

  9  regularly established position, and all active members of

10  either the Teachers' Retirement System established in chapter

11  238 or the State and County Officers' and Employees'

12  Retirement System established in chapter 122 which systems are

13  consolidated within the Florida Retirement System under s.

14  121.011, are eligible to elect participation in the DROP

15  provided that:

16         5.  A DROP participant may change employers while

17  participating in the DROP, subject to the following:

18         a.  A change of employment must take place without a

19  break in service so that the member receives salary for each

20  month of continuous DROP participation.  If a member receives

21  no salary during a month, DROP participation shall cease

22  unless the employer verifies a continuation of the employment

23  relationship for such participant pursuant to s.

24  121.021(39)(b).

25         b.  Such participant and new employer shall notify the

26  division on forms required by the division as to the identity

27  of the new employer.

28         c.  The new employer shall acknowledge, in writing, the

29  participant's DROP termination date, which may be extended but

30  not beyond the original 60-month period provided in

31  subparagraph (b)1., shall acknowledge liability for any

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  1  additional retirement contributions and interest required if

  2  the participant fails to timely terminate employment, and

  3  shall be subject to the adjustment required in

  4  sub-subparagraph (c)5.4.d.

  5         (i)  Contributions.--

  6         1.  All employers paying the salary of a DROP

  7  participant filling a regularly established position shall

  8  contribute 11.56 percent of such participant's gross

  9  compensation, which shall constitute the entire employer DROP

10  contribution with respect to such participant.  Such

11  contributions, payable to the System Trust Fund in the same

12  manner as required in s. 121.071, shall be made as appropriate

13  for each pay period and are in addition to contributions

14  required for social security and the Retiree Health Insurance

15  Subsidy Trust Fund.  Such employer, social security, and

16  health insurance subsidy contributions are not included in the

17  DROP.

18         2.  The employer shall, in addition to subparagraph 1.,

19  also withhold one-half of the entire social security

20  contribution required for the participant.  Contributions for

21  social security by each participant and each employer, in the

22  amount required for social security coverage as now or

23  hereafter provided by the federal Social Security Act, shall

24  be in addition to contributions specified in subparagraph 1.

25         3.  All employers paying the salary of a DROP

26  participant filling a regularly established position shall

27  contribute the 0.66 percent of such participant's gross

28  compensation required in s. 121.071(4), which shall constitute

29  the employer's health insurance subsidy contribution with

30  respect to such participant. Such contributions shall be

31

                                  32

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  1  deposited by the administrator in the Retiree Health Insurance

  2  Subsidy Trust Fund.

  3         Section 12.  Subsection (3) of section 121.122, Florida

  4  Statutes, 1998 Supplement, is amended to read:

  5         121.122  Renewed membership in system.--Except as

  6  provided in s. 121.053, effective July 1, 1991, any retiree of

  7  a state-administered retirement system who is employed in a

  8  regularly established position with a covered employer shall

  9  be enrolled as a compulsory member of the Regular Class of the

10  Florida Retirement System or, effective July 1, 1997, any

11  retiree of a state-administered retirement system who is

12  employed in a position included in the Senior Management

13  Service Class shall be enrolled as a compulsory member of the

14  Senior Management Service Class of the Florida Retirement

15  System as provided in s. 121.055, and shall be entitled to

16  receive an additional retirement benefit, subject to the

17  following conditions:

18         (3)  Such member shall be entitled to purchase

19  additional retirement credit in the Regular Class or the

20  Senior Management Service Class, as applicable, for any

21  postretirement service performed in a regularly established

22  position as follows:

23         (a)  For regular class service prior to July 1, 1991,

24  by paying the Regular Class applicable employee and employer

25  contributions for the period being claimed, plus 4 percent

26  interest compounded annually from first year of service

27  claimed until July 1, 1975, and 6.5 percent interest

28  compounded thereafter, until full payment is made to the

29  Florida Retirement System Trust Fund; or

30         (b)  For Senior Management Service Class prior to June

31  1, 1997, as provided in s. 121.055(1)(i)(h).

                                  33

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  1

  2  The contribution for postretirement service between July 1,

  3  1985, and July 1, 1991, for which the reemployed retiree

  4  contribution was paid, shall be the difference between such

  5  contribution and the total applicable contribution for the

  6  period being claimed, plus interest.  The employer of such

  7  member may pay the applicable employer contribution in lieu of

  8  the member. If a member does not wish to claim credit for all

  9  of the postretirement service for which he or she is eligible,

10  the service the member claims must be the most recent service.

11         Section 13.  Subsection (5) of section 121.24, Florida

12  Statutes, is renumbered as subsection (6), and a new

13  subsection (5) is added to said section, to read:

14         121.24  Conduct of commission business; legal and other

15  assistance; compensation.--

16         (5)  The State Retirement Commission has the authority

17  to adopt rules pursuant to ss. 120.54 and 120.536(1) to

18  implement the provisions of law conferring duties upon the

19  commission.

20         Section 14.  Paragraph (a) of subsection (5) of section

21  121.35, Florida Statutes, 1998 Supplement, is amended to read:

22         121.35  Optional retirement program for the State

23  University System.--

24         (5)  BENEFITS.--

25         (a)  Benefits shall be payable under the optional

26  retirement program only to vested participants in the program,

27  or their beneficiaries as designated by the participant in the

28  contract with a provider company, and such benefits shall be

29  paid only by the designated company in accordance with the

30  terms of the annuity contract or contracts applicable to the

31  participant. The participant must be terminated from all

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  1  employment with all Florida Retirement System employers, as

  2  provided in s. 121.021(39), to begin receiving the

  3  employer-funded benefit. Benefits funded by employer

  4  contributions shall be payable only as a lifetime annuity to

  5  the participant, his beneficiary, or his estate, except for:

  6         1.  A lump-sum payment to the beneficiary upon the

  7  death of the participant; or

  8         2.  A cash-out of a de minimis account upon the request

  9  of a former participant who has been terminated for a minimum

10  of 6 months from the employment that entitled him to optional

11  retirement program participation. A de minimis account is an

12  account with a provider company containing employer

13  contributions and accumulated earnings of not more than $5,000

14  $3,500 made under the provisions of this chapter. Such

15  cash-out must be a complete liquidation of the account balance

16  with that company and is subject to the provisions of the

17  Internal Revenue Code.

18         Section 15.  Subsection (11) of section 121.40, Florida

19  Statutes, 1998 Supplement, is amended, and subsection (12) of

20  said section, as amended by chapters 96-423 and 98-413, Laws

21  of Florida, is reenacted to read:

22         121.40  Cooperative extension personnel at the

23  Institute of Food and Agricultural Sciences; supplemental

24  retirement benefits.--

25         (4)  ELIGIBILITY FOR SUPPLEMENT.--To be eligible for a

26  benefit pursuant to the provisions of this section, a person

27  must meet all of the following eligibility criteria:

28         (e)  The person must not be entitled to any benefit

29  from a state-supported retirement system or from social

30  security based upon service as a cooperative extension

31  employee of the institute. Participation in the Institute of

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  1  Food and Agricultural Sciences Supplemental Retirement Program

  2  shall not constitute membership in the Florida Retirement

  3  System.

  4         (11)  EMPLOYMENT AFTER RETIREMENT: LIMITATION.--

  5         (a)  Any person who is receiving a supplemental

  6  retirement benefit under this section may be reemployed by any

  7  private or public employer after retirement and receive

  8  supplemental retirement benefits pursuant to this section and

  9  compensation from his or her employer, without any

10  limitations.  However, if a retired participant who is

11  receiving a supplemental retirement benefit under this section

12  is reemployed at the institute in a position as a cooperative

13  extension employee of the institute, he or she shall forfeit

14  all rights to supplemental retirement benefits in accordance

15  with the eligibility provisions of subsection (4)(e)., except

16  that no person may receive both a salary from reemployment

17  with any agency participating in the Florida Retirement System

18  and supplemental retirement benefits under this section for a

19  period of 12 months immediately subsequent to the date of

20  retirement.

21         (b)  Each person to whom the limitation in paragraph

22  (a) applies who violates such reemployment limitation and who

23  is reemployed with any agency participating in the Florida

24  Retirement System prior to completion of the 12-month

25  limitation period shall give timely notice of this fact in

26  writing to the employer and to the division and shall have his

27  or her supplemental retirement benefits suspended for the

28  balance of the 12-month limitation period.  Any person

29  employed in violation of this subsection and any employing

30  agency which knowingly employs or appoints such person without

31  notifying the Division of Retirement to suspend retirement

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  1  benefits shall be jointly and severally liable for

  2  reimbursement to the retirement trust fund of any benefits

  3  paid during the reemployment limitation period.  To avoid

  4  liability, such employing agency shall have a written

  5  statement from the retiree that he or she is not retired from

  6  a state-administered retirement system. Any supplemental

  7  retirement benefits received while reemployed during this

  8  reemployment limitation period shall be repaid to the trust

  9  fund, and supplemental retirement benefits shall remain

10  suspended until such repayment has been made.  Supplemental

11  benefits suspended beyond the reemployment limitation shall

12  apply toward repayment of supplemental benefits received in

13  violation of the reemployment limitation.

14         (c)  The reemployment by an employer participating in

15  the Florida Retirement System of any person receiving

16  supplemental retirement benefits under this section shall have

17  no effect on the amount of the supplemental benefit of that

18  person.  Prior to July 1, 1991, upon employment of any person,

19  other than an elected officer as provided in s. 121.053, who

20  is receiving supplemental retirement benefits under this

21  section, the employer shall pay retirement contributions in an

22  amount equal to the unfunded actuarial accrued liability

23  portion of the employer contribution which would be required

24  for regular members of the Florida Retirement System.

25  Effective July 1, 1991, contributions shall be made as

26  provided in s. 121.122 for renewed membership.

27         (d)  The limitations of this subsection apply to

28  reemployment in any capacity with an "employer" as defined in

29  s. 121.021(10), irrespective of the category of funds from

30  which the person is compensated.

31         (12)  CONTRIBUTIONS.--

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  1         (a)  For the purposes of funding the supplemental

  2  benefits provided by this section, the institute is authorized

  3  and required to pay, commencing July 1, 1985, the necessary

  4  monthly contributions from its appropriated budget. These

  5  amounts shall be paid into the Institute of Food and

  6  Agricultural Sciences Supplemental Retirement Trust Fund,

  7  which is hereby created.

  8         (b)  The monthly contributions required to be paid

  9  pursuant to paragraph (a) on the gross monthly salaries, from

10  all sources with respect to such employment, paid to those

11  employees of the institute who hold both state and federal

12  appointments and who participate in the federal Civil Service

13  Retirement System shall be as follows:

14

15  Dates of Contribution                              Percentage

16    Rate Changes                                        Due

17

18  July 1, 1985, through December 31, 1988              6.68%

19  January 1, 1989, through December 31, 1993           6.35%

20  January 1, 1994, through December 31, 1994           6.69%

21  January 1, 1995, through June 30, 1996               6.82%

22  July 1, 1996, through June 30, 1998                  5.64%

23  Effective July 1, 1998                               7.17%

24

25         Section 16.  Subsection (11) of section 413.051,

26  Florida Statutes, 1998 Supplement, as amended by chapter

27  96-423 and subsection (12) of said section, as amended by

28  chapters 96-423 and 98-149, Laws of Florida, are reenacted to

29  read:

30         413.051  Eligible blind persons; operation of vending

31  stands.--

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  1         (11)  Effective July 1, 1996, blind licensees who

  2  remain members of the Florida Retirement System pursuant to s.

  3  121.051(6)(b)1. shall pay any unappropriated retirement costs

  4  from their net profits or from program income. Within 30 days

  5  after the effective date of this act, each blind licensee who

  6  is eligible to maintain membership in the Florida Retirement

  7  System under s. 121.051(6)(b)1., but who elects to withdraw

  8  from the system as provided in s. 121.051(6)(b)3., must, on or

  9  before July 31, 1996, notify the Division of Blind Services

10  and the Division of Retirement in writing of his or her

11  election to withdraw.  Failure to timely notify the divisions

12  shall be deemed a decision to remain a compulsory member of

13  the Florida Retirement System. However, if, at any time after

14  July 1, 1996, sufficient funds are not paid by a blind

15  licensee to cover the required contribution to the Florida

16  Retirement System, that blind licensee shall become ineligible

17  to participate in the Florida Retirement System on the last

18  day of the first month for which no contribution is made or

19  the amount contributed is insufficient to cover the required

20  contribution.  For any blind licensee who becomes ineligible

21  to participate in the Florida Retirement System as described

22  in this subsection, no creditable service shall be earned

23  under the Florida Retirement System for any period following

24  the month that retirement contributions ceased to be reported.

25  However, any such person may participate in the Florida

26  Retirement System in the future if employed by a participating

27  employer in a covered position.

28         (12)  The Division of Blind Services may adopt rules to

29  permit the division to establish and maintain vending

30  facilities, issue licenses, establish and maintain a vending

31  facility training program, provide vendors access to financial

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  1  data of the program, set aside funds from net proceeds of the

  2  vending facility, provide for the transfer and promotion of

  3  vendors, establish a vendors committee, provide for an

  4  operation agreement, provide duties and responsibilities of

  5  the division with respect to the vending facility program, and

  6  provide procedures for newspaper vending sales.

  7         Section 17.  Section 121.027, Florida Statutes, is

  8  repealed.

  9         Section 18.  This act shall take effect upon becoming

10  law, except that the reenactment of subsection (6) of section

11  121.051, paragraph (a) of subsection (7) of section 121.052,

12  paragraph (a) of subsection (3) of section 121.055, subsection

13  (1) of section 121.071, subsection (12) of section 121.40, and

14  subsections (11) and (12) of section 413.051, Florida

15  Statutes, shall operate retroactively to June 7, 1996.

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Revises provisions of law relating to state-administered
  4    retirement systems to:

  5         1.  Provide for review and comment on local
      government retirement system actuarial valuation reports
  6    and impact statements on a triennial basis and to provide
      clarification on the basis of required payments.
  7         2.  Modify the limitation on benefits for service
      under more than one retirement system or plan.
  8         3.  Clarify requirements relating to consolidation
      of existing systems and preservation of rights.
  9         4.  Redefine the term "creditable service" under the
      Florida Retirement System and clarify creditable service
10    provisions for described school board employees.
           5.  Revise language to authorize the Division of
11    Retirement to make rules and to create the Florida
      Retirement System Actuarial Assumption Conference.
12         6.  Revise contribution rates under the Florida
      Retirement System.
13         7.  Clarify proof of disability requirements, modify
      provisions related to death benefits to permit purchase
14    of described retirement credits by joint annuitants, and
      clarify the contribution rate and interest required to be
15    paid for such purchases.
           8.  Authorize the State Retirement Commission to
16    adopt rules.

17
      See bill for details.
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