House Bill 1883e1

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                                          HB 1883, First Engrossed



  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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                                          HB 1883, First Engrossed



  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         increasing the age at which a Special Risk

11         Class Member must elect whether to participate

12         in the Deferred Retirement Option Program;

13         updating and correcting references; amending s.

14         121.122, F.S.,; correcting a reference;

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

16         Retirement Commission to adopt rules; amending

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

18         to de minimis accounts to federal law; amending

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

20         limitations and reenacting subsection (12),

21         relating to contribution rates for the

22         supplemental retirement program for the

23         Institute of Food and Agricultural Sciences at

24         the University of Florida; reenacting s.

25         413.051(11) and (12), F.S., relating to Florida

26         Retirement System membership eligibility and

27         retirement contribution payments for blind

28         vending facility operators; amending ss.

29         175.071 and 185.06, F.S.; providing, with

30         respect to the board of trustees for municipal

31         firefighters' pension trust funds and municipal


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                                          HB 1883, First Engrossed



  1         police officers' retirement trust funds that

  2         the board may invest in corporations on the

  3         National Market System of the Nasdaq Stock

  4         Market; repealing s. 121.027, F.S., amending s.

  5         112.18, F.S.; providing presumptions that

  6         certain illnesses incurred by law enforcement

  7         officers are done so in the line of duty;

  8         relating to rulemaking authority for that act;

  9         requiring the Board of Trustees of the State

10         Board of Administration to review the actuarial

11         valuation of the Florida Retirement System;

12         requiring the Board to review the process of

13         retirement contribution rates and comment to

14         the legislature; providing an effective date.

15

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

17

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

19  Florida Statutes, are amended to read:

20         112.63  Actuarial reports and statements of actuarial

21  impact; review.--

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

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

24  of a statement of actuarial impact, the division shall

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

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

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

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

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

30  not receive the actuarial report or statement of actuarial

31  impact, the division shall notify the local government and


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                                          HB 1883, First Engrossed



  1  request appropriate adjustment. If, after a reasonable period

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

  3  local government or the division may petition for a hearing

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

  5  administrative law judge recommends in favor of the division,

  6  the division shall perform an actuarial review or prepare the

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

  8  performing such actuarial review or preparing such statement

  9  shall be charged to the governmental entity of which the

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

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

12  60 days after receipt by the governmental entity of the

13  request for payment, the division shall certify to the

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

15  amount to the division from any funds payable to the

16  governmental entity of which the employees are covered by the

17  retirement system or plan.  If the administrative law judge

18  recommends in favor of the local retirement system and the

19  division performs an actuarial review, the cost to the

20  division of performing the actuarial review shall be paid by

21  the division.

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

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

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

25  actuarial valuation, subject to being state-accepted.

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

27  Statutes, is amended to read:

28         112.65  Limitation of benefits.--

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

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

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


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                                          HB 1883, First Engrossed



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

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

  3  future, a retirement benefit or pension from a different

  4  employer's another retirement system or plan.  This

  5  restriction does not apply to social security benefits or

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

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

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

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

10         121.011  Florida Retirement System.--

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

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

13  paragraph (a) are hereby consolidated as separate instruments

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

15  this chapter, and the administration of said chapters or

16  retirement systems shall be consolidated with the

17  administration of the Florida Retirement System established by

18  this chapter, and the Florida Retirement System shall assume

19  all liabilities related to the payment of benefits to members

20  and their beneficiaries under the respective retirement

21  systems of the members and their beneficiaries.

22         (3)  PRESERVATION OF RIGHTS.--

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

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

25  1975, who is not retired and who is, has been, or shall be,

26  suspended and reinstated without compensation shall receive

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

28  of suspension to the date of reinstatement, provided:

29         1.  The creditable service claimed for the period of

30  suspension does not exceed 24 months;

31


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                                          HB 1883, First Engrossed



  1         2.  The member returns to active employment and remains

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

  3  calendar days; and

  4         3.  The member pays into the Retirement System Trust

  5  Fund the total required employer contributions plus the total

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

  7  monthly compensation in effect for the pay period immediately

  8  preceding the period of suspension, prorated for the said

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

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

11  6.5 percent interest thereafter until paid.  If permitted by

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

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

14  coverage for the period of suspension if any social security

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

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

17  payment for social security coverage, the payment for

18  retirement service credit shall be made and retirement service

19  credit granted regardless of such conflict.

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

21  121.021, Florida Statutes, 1998 Supplement, is amended to

22  read:

23         121.021  Definitions.--The following words and phrases

24  as used in this chapter have the respective meanings set forth

25  unless a different meaning is plainly required by the context:

26         (17)(a)  "Creditable service" of any member means the

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

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

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

30  service allowed within the provisions of this chapter if all

31  required contributions have been paid and all other


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                                          HB 1883, First Engrossed



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

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

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

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

  5  employee of a participating employer other than a school board

  6  whose total employment is to provide services to a school

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

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

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

10  of employment.

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

12  Florida Statutes, are amended  to read:

13         121.031  Administration of system; appropriation;

14  oaths; actuarial studies; public records.--

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

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

17  120.536(1) to implement the provisions of law conferring

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

19  for the effective and efficient administration of this system.

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

21  system are hereby appropriated from the interest earned on

22  investments made for the retirement and social security trust

23  funds and the assessments allowed under chapter 650.

24         (3)  The administrator shall cause an actuarial study

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

26  report the results of such study to the Legislature by

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

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

29  with the following exceptions and additions:

30

31


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                                          HB 1883, First Engrossed



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

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

  3  additions:

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

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

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

  7  1.412(c)(2)-1, or a similar accepted approach designed to

  8  attenuate fluctuations in asset values.

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

10  the changes in the covered group over the period between

11  actuarial valuations and the impact of those changes on

12  actuarial results.

13         3.(c)  When substantial changes in actuarial

14  assumptions have been made, the study shall reflect the

15  results of an actuarial assumption as of the current date

16  based on the assumptions utilized in the prior actuarial

17  report.

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

19  changes in actuarial valuation results by the factors

20  generating those changes.  Such analysis shall reconcile the

21  current actuarial valuation results with those results from

22  the prior valuation.

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

24  status and funding progress designed to facilitate the

25  assessment of trends over several actuarial valuations with

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

27  shall be adopted by the division and shall be used

28  consistently in all actuarial valuations performed on the

29  system.

30         (b)  The Florida Retirement System Actuarial Assumption

31  Conference which is hereby created shall by consensus develop


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                                          HB 1883, First Engrossed



  1  official information with respect to the economic and

  2  noneconomic assumptions and funding methods of the Florida

  3  Retirement System necessary to perform the study. Such

  4  information shall include: an analysis of the actuarial

  5  assumptions and actuarial methods and a determination of

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

  7  due to experience changes or revised future forecasts. The

  8  members of the conference shall include the Executive Office

  9  of the Governor, the coordinator of the Office of Economic and

10  Demographic Research, and professional staff of the Senate and

11  House of Representatives who have forecasting expertise, or

12  their designees.  The Executive Office of the Governor shall

13  have the responsibility of presiding over the sessions of the

14  conference.  The State Board of Administration and the

15  Division of Retirement shall be participants, as defined in s.

16  216.134, in the conference.

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

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

19  of Florida, is reenacted to read:

20         121.051  Participation in the system.--

21         (6)  SEASONAL STATE EMPLOYMENT; BLIND VENDING FACILITY

22  OPERATORS.--

23         (a)  Seasonal state employment shall be included under

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

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

26  chapter for those members transferring to this system and for

27  all new members.

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

29  or licensed by the Division of Blind Services as vending

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

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


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                                          HB 1883, First Engrossed



  1  the meaning of this chapter, and all vending facility

  2  operators licensed and employed during that period shall be

  3  compulsory members of the Florida Retirement System in

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

  5  vending facility operator, except as provided in subparagraph

  6  3.

  7         2.  Blindness shall not be deemed a retirement

  8  disability within the provisions of this chapter for such

  9  members as are contemplated by this paragraph.

10         3.  Any vending facility operator as described in

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

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

13  413.051(11).  The election to withdraw shall take effect as of

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

15  vending facility operator who withdraws from the Florida

16  Retirement System as provided in this subparagraph shall

17  retain all creditable service earned in the Florida Retirement

18  System through the month that retirement contributions ceased

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

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

21  person may participate in the Florida Retirement System in the

22  future if employed by a participating employer in a covered

23  position.

24         4.  All blind or partially sighted persons employed or

25  licensed by the Division of Blind Services as vending facility

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

27  contractors within the meaning of this chapter and shall not

28  be eligible for membership in the Florida Retirement System.

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

30  121.052, Florida Statutes, 1998 Supplement, as amended by

31


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                                          HB 1883, First Engrossed



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

  2  amended to read:

  3         121.052  Membership class of elected officers.--

  4         (7)  CONTRIBUTIONS.--

  5         (a)  The following table states the required retirement

  6  contribution rates for members of the Elected Officers' Class

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

  8  gross compensation. A change in a contribution rate is

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

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

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

12  the contributions required for social security and the Retiree

13  Health Insurance Subsidy Trust Fund.

14

15  Dates of Contribution

16    Rate Changes                             Members   Employers

17

18  July 1, 1972, through September 30, 1977

19    Legislators                                 8%           8%

20    All Other Members                           8%           8%

21

22  October 1, 1977, through September 30, 1978

23    Legislators                                 8%           8%

24    All Other Members                           4%          12%

25

26  October 1, 1978, through September 30, 1979

27    Legislators                                 8%       10.57%

28    All Other Members                           4%       16.78%

29

30  October 1, 1979, through September 30, 1981

31    Legislators                                 8%       10.57%


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                                          HB 1883, First Engrossed



  1    Governor, Lt. Governor, Cabinet

  2      Officers                                  4%       16.78%

  3    All Other Members                           0%       20.78%

  4

  5  July 1, 1981, through June 30, 1984

  6    County Elected Officers                     0%       19.30%

  7

  8  July 1, 1984, through September 30, 1984

  9    County Elected Officers                     0%       20.25%

10

11  October 1, 1981, through September 30, 1984

12    Legislators                                 0%       19.30%

13    Governor, Lt. Governor, Cabinet

14      Officers                                  0%       21.03%

15    State Attorneys, Public Defenders           0%       20.95%

16    Justices, Judges                            0%       22.55%

17

18  October 1, 1984, through September 30, 1986

19    Legislators                                 0%       10.98%

20    Governor, Lt. Governor, Cabinet

21      Officers                                  0%       10.98%

22    State Attorneys, Public Defenders           0%       10.98%

23    Justices, Judges                            0%       21.79%

24    County Elected Officers                     0%       16.97%

25

26  October 1, 1986, through December 31, 1988

27    Legislators                                 0%       11.50%

28    Governor, Lt. Governor, Cabinet

29      Officers                                  0%       11.50%

30    State Attorneys, Public Defenders           0%       11.50%

31    Justices, Judges                            0%       20.94%


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                                          HB 1883, First Engrossed



  1    County Elected Officers                     0%       17.19%

  2

  3  January 1, 1989, through December 31, 1989

  4    Legislators                                 0%       13.70%

  5    Governor, Lt. Governor, Cabinet

  6      Officers                                  0%       13.70%

  7    State Attorneys, Public Defenders           0%       13.70%

  8    Justices, Judges                            0%       22.58%

  9    County Elected Officers                     0%       18.44%

10

11  January 1, 1990, through December 31, 1990

12    Legislators                                 0%       15.91%

13    Governor, Lt. Governor, Cabinet

14      Officers                                  0%       15.91%

15    State Attorneys, Public Defenders           0%       15.91%

16    Justices, Judges                            0%       24.22%

17    County Elected Officers                     0%       19.71%

18

19  January 1, 1991, through December 31, 1991

20    Legislators                                 0%       17.73%

21    Governor, Lt. Governor, Cabinet

22      Officers                                  0%       17.73%

23    State Attorneys, Public Defenders           0%       17.73%

24    Justices, Judges                            0%       26.63%

25    County Elected Officers                     0%       23.32%

26

27  January 1, 1992, through December 31, 1992

28    Legislators                                 0%       19.94%

29    Governor, Lt. Governor, Cabinet

30      Officers                                  0%       19.94%

31    State Attorneys, Public Defenders           0%       19.94%


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                                          HB 1883, First Engrossed



  1    Justices, Judges                            0%       28.27%

  2    County Elected Officers                     0%       24.59%

  3

  4  January 1, 1993, through December 31, 1993

  5    Legislators                                 0%       22.14%

  6    Governor, Lt. Governor, Cabinet

  7      Officers                                  0%       22.14%

  8    State Attorneys, Public Defenders           0%       22.14%

  9    Justices, Judges                            0%       29.91%

10    County Elected Officers                     0%       25.84%

11

12  January 1, 1994, through December 31, 1994

13    Legislators                                 0%       22.65%

14    Governor, Lt. Governor, Cabinet

15      Officers                                  0%       22.65%

16    State Attorneys, Public Defenders           0%       22.65%

17    Justices, Judges                            0%       30.52%

18    County Elected Officers                     0%       26.07%

19

20  January 1, 1995, through December 31, 1995

21    Legislators                                 0%       22.80%

22    Governor, Lt. Governor, Cabinet

23      Officers                                  0%       22.80%

24    State Attorneys, Public Defenders           0%       22.80%

25    Justices, Judges                            0%       30.21%

26    County Elected Officers                     0%       27.48%

27

28  January 1, 1996, through June 30, 1996

29    Legislators                                 0%       22.90%

30    Governor, Lt. Governor, Cabinet

31      Officers                                  0%       22.90%


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                                          HB 1883, First Engrossed



  1    State Attorneys, Public Defenders           0%       22.90%

  2    Justices, Judges                            0%       30.15%

  3    County Elected Officers                     0%       27.54%

  4

  5  July 1, 1996, through June 30, 1998

  6    Legislators                                 0%       23.07%

  7    Governor, Lt. Governor, Cabinet

  8      Officers                                  0%       23.07%

  9    State Attorneys, Public Defenders           0%       23.07%

10    Justices, Judges                            0%       29.55%

11    County Elected Officers                     0%       27.33%

12

13  Effective July 1, 1998, through

14    June 30, 1999

15    Legislators                                 0%       22.33%

16    Governor, Lt. Governor, Cabinet

17      Officers                                  0%       22.33%

18    State Attorneys, Public Defenders           0%       22.33%

19    Justices, Judges                            0%       27.21%

20    County Elected Officers                     0%       26.99%

21

22  Effective July 1, 1999

23    Legislators                                 0%       14.31%

24    Governor, Lt. Governor, Cabinet

25    Officers                                    0%       14.31%

26    State Attorneys, Public

27      Defenders                                 0%       14.31%

28    Justices, Judges                            0%       20.48%

29    County Elected

30      Officers                                  0%       17.05%

31


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                                          HB 1883, First Engrossed



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

  2  121.055, Florida Statutes, 1998 Supplement, as amended by

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

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

  5  is amended, to read:

  6         121.055  Senior Management Service Class.--There is

  7  hereby established a separate class of membership within the

  8  Florida Retirement System to be known as the "Senior

  9  Management Service Class," which shall become effective

10  February 1, 1987.

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

12  retirement contribution rates for members of the Senior

13  Management Service Class and their employers in terms of a

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

15  the contribution rate is effective with the first salary paid

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

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

18  contributions required for social security and the Retiree

19  Health Insurance Subsidy Trust Fund.

20

21  Dates of Contribution

22    Rate Changes                          Members   Employers

23

24  February 1, 1987, through

25    December 31, 1988                       0%       13.88%

26  January 1, 1989, through

27    December 31, 1989                       0%       14.95%

28  January 1, 1990, through

29    December 31, 1990                       0%       16.04%

30  January 1, 1991, through

31    December 31, 1991                       0%       18.39%


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                                          HB 1883, First Engrossed



  1  January 1, 1992, through

  2    December 31, 1992                       0%       19.48%

  3  January 1, 1993, through

  4    December 31, 1993                       0%       20.55%

  5  January 1, 1994, through

  6    December 31, 1994                       0%       23.07%

  7  January 1, 1995, through

  8    December 31, 1995                       0%       23.88%

  9  January 1, 1996, through

10    June 30, 1996                           0%       24.14%

11  July 1, 1996, through

12    June 30, 1998                           0%       21.58%

13  Effective July 1, 1998, through

14    June 30, 1999                           0%       23.10%

15  Effective July 1, 1999                    0%       11.19%

16

17         (6)

18         (e)  Benefits.--

19         1.  Benefits shall be payable under the Senior

20  Management Service Optional Annuity Program only to

21  participants in the program, or their beneficiaries as

22  designated by the participant in the contract with a provider

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

24  company in accordance with the terms of the annuity contract

25  or contracts applicable to the participant. A participant must

26  be terminated from all employment with all Florida Retirement

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

28  receiving the employer-funded benefit. Benefits funded by

29  employer contributions shall be payable only as a lifetime

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

31  except for:


                                  17

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                                          HB 1883, First Engrossed



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

  2  death of the participant; or

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

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

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

  6  annuity retirement program participation. A de minimis account

  7  is an account with a provider company containing employer

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

  9  $3,500 made under the provisions of this chapter. Such

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

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

12  Internal Revenue Code.

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

14  Management Service Optional Annuity Program, and any

15  contribution accumulated under such program, shall not be

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

17  legal process whatsoever.

18         3.  A participant who receives optional annuity program

19  benefits funded by employer contributions shall be deemed to

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

21  event of subsequent employment with any employer that

22  participates in the Florida Retirement System.

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

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

25  98-413, Laws of Florida, is reenacted and amended to read:

26         121.071  Contributions.--Contributions to the system

27  shall be made as follows:

28         (1)  The following tables state the required retirement

29  contribution rates for members of the Regular Class, Special

30  Risk Class, or Special Risk Administrative Support Class and

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


                                  18

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                                          HB 1883, First Engrossed



  1  compensation.  A change in a contribution rate is effective

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

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

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

  5  contributions required for social security and the Retiree

  6  Health Insurance Subsidy Trust Fund.

  7         (a)  Retirement contributions for regular members are

  8  as follows:

  9

10  Dates of Contribution

11    Rate Changes                             Members   Employers

12

13  December 1, 1970, through December

14    31, 1974, for state agencies, state

15    universities, community colleges,

16    and district school boards                  4%           4%

17

18  December 1, 1970, through September

19    30, 1975, for all other local

20    government agencies                         4%           4%

21

22  January 1, 1975, through September

23    30, 1978, for state agencies and

24    state universities                          0%           9%

25

26  January 1, 1975, through July 31,

27    1978, for community colleges and

28    district school boards                      0%           9%

29

30

31


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                                          HB 1883, First Engrossed



  1

  2  October 1, 1975, through September

  3    30, 1978, for all other local

  4    government agencies                         0%           9%

  5

  6  August 1, 1978, through September 30,

  7    1981, for community colleges and

  8    district school boards                      0%         9.1%

  9

10  October 1, 1978, through September

11    30, 1981, for all other agencies            0%         9.1%

12

13  October 1, 1981, through

14    September 30, 1984                          0%       10.93%

15  October 1, 1984, through

16    September 30, 1986                          0%       12.24%

17  October 1, 1986, through

18    December 31, 1988                           0%       13.14%

19  January 1, 1989, through

20    December 31, 1989                           0%       13.90%

21  January 1, 1990, through

22    December 31, 1990                           0%       14.66%

23  January 1, 1991, through

24    December 31, 1991                           0%       15.72%

25  January 1, 1992, through

26    December 31, 1992                           0%       16.51%

27  January 1, 1993, through

28    December 31, 1993                           0%       17.27%

29  January 1, 1994, through

30    December 31, 1994                           0%       17.10%

31  January 1, 1995, through


                                  20

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                                          HB 1883, First Engrossed



  1    December 31, 1995                           0%       16.91%

  2  January 1, 1996, through

  3    June 30, 1996                               0%       17.00%

  4  July 1, 1996, through

  5    June 30, 1998                               0%       16.77%

  6  Effective July 1, 1998, through

  7    June 30, 1999                               0%       15.51%

  8  Effective July 1, 1999                        0%        9.21%

  9

10         (b)  Retirement contributions for special risk members

11  are as follows:

12

13  Dates of Contribution

14    Rate Changes                             Members   Employers

15

16  December 1, 1970, through

17    September 30, 1974                          6%           6%

18

19  October 1, 1974, through December 31,

20    1974, for state agencies, state

21    universities, community colleges,

22    and district school boards                  8%           8%

23

24  October 1, 1974, through September

25    30, 1975, for all other local

26    government agencies                         8%           8%

27

28  January 1, 1975, through September

29    30, 1978, for state agencies, state

30    universities, community colleges,

31    and district school boards                  0%          13%


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                                          HB 1883, First Engrossed



  1

  2  October 1, 1975, through September

  3    30, 1978, for other local

  4    government agencies                         0%          13%

  5

  6  October 1, 1978, through

  7    September 30, 1981                          0%       13.95%

  8  October 1, 1981, through

  9    September 30, 1984                          0%       13.91%

10  October 1, 1984, through

11    September 30, 1986                          0%       14.67%

12  October 1, 1986, through

13    December 31, 1988                           0%       15.11%

14  January 1, 1989, through

15    December 31, 1989                           0%       17.50%

16  January 1, 1990, through

17    December 31, 1990                           0%       19.90%

18  January 1, 1991, through

19    December 31, 1991                           0%       25.52%

20  January 1, 1992, through

21    December 31, 1992                           0%       26.35%

22  January 1, 1993, through

23    December 31, 1993                           0%       27.14%

24  January 1, 1994, through

25    December 31, 1994                           0%       27.03%

26  January 1, 1995, through

27    December 31, 1995                           0%       26.83%

28  January 1, 1996, through

29    June 30, 1996                               0%       26.84%

30  July 1, 1996, through

31    June 30, 1998                               0%       26.44%


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                                          HB 1883, First Engrossed



  1  Effective July 1, 1998, through

  2    June 30, 199                                0%       24.38%

  3  Effective July 1, 1999                        0%       20.22%

  4

  5         (c)  Retirement contributions for special risk

  6  administrative support members are as follows:

  7

  8  Dates of Contribution

  9    Rate Changes                             Members   Employers

10

11  July 1, 1982, through

12    September 30, 1984                          0%       11.14%

13  October 1, 1984, through

14    September 30, 1986                          0%       13.09%

15  October 1, 1986, through

16    December 31, 1988                           0%       15.44%

17  January 1, 1989, through

18    December 31, 1989                           0%       14.76%

19  January 1, 1990, through

20    December 31, 1990                           0%       14.09%

21  January 1, 1991, through

22    December 31, 1991                           0%       20.16%

23  January 1, 1992, through

24    December 31, 1992                           0%       19.51%

25  January 1, 1993, through

26    December 31, 1993                           0%       18.83%

27  January 1, 1994, through

28    December 31, 1994                           0%       18.59%

29  January 1, 1995, through

30    December 31, 1995                           0%       17.81%

31  January 1, 1996, through


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                                          HB 1883, First Engrossed



  1    June 30, 1996                               0%       17.80%

  2  July 1, 1996, through

  3    June 30, 1998                               0%       17.20%

  4    Effective July 1, 1998, through

  5    June 30, 1999                               0%       14.64%

  6  Effective July 1, 1999                        0%        11.53

  7

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

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

10  Supplement, are amended to read:

11         121.081  Past service; prior service;

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

13  service may be claimed and credited are:

14         (1)

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

16  a state-administered retirement system and who was granted

17  educational leave with pay pursuant to a written educational

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

19  leave as past service subject to the following conditions:

20         1.  The educational leave must have occurred prior to

21  December 31, 1971;

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

23  creditable service excluding the period of the educational

24  leave;

25         3.  The employee must have returned to employment with

26  a state agency employer who participated in the retirement

27  system, which return was immediately upon termination of the

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

29  payroll for at least 1 calendar month 30 calendar days

30  following the return to employment;

31


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                                          HB 1883, First Engrossed



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

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

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

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

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

  6  state or federal retirement system; and

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

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

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

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

11  claimed, plus 4 percent interest thereon compounded annually

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

13  1, 1975, and 6.5 percent interest thereafter on the unpaid

14  balance compounded annually each June 30 until paid.

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

16  be claimed as creditable service under the Florida Retirement

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

18  of creditable service within a period of 12 consecutive

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

20  Service performed as a participant of the optional retirement

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

22  Senior Management Service Optional Annuity Program under s.

23  121.055 may be used to satisfy the reemployment requirement of

24  1 complete year of creditable service 12-continuous-month

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

26  contributions for prior service until after completion of the

27  1 year of creditable service 12-month period. The required

28  contributions for claiming the various types of prior service

29  are:

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

31  system becomes noncontributory for the member and for which


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                                          HB 1883, First Engrossed



  1  the member had credit under one of the existing retirement

  2  systems and received a refund of contributions upon

  3  termination of employment, the member shall contribute 4

  4  percent of all salary received during the period being

  5  claimed, plus 4 percent interest compounded annually from date

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

  7  compounded annually thereafter, until full payment is made to

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

  9  the Florida Retirement System from an existing system may

10  receive credit for prior service under the existing system if

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

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

13  such prior service shall be determined by the applicable

14  provisions of the system under which the prior service is

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

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

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

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

19  contributions that remained on deposit in the Annuity Savings

20  Trust Fund established under chapter 238, upon retirement

21  under this chapter or chapter 238.

22         (b)  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 the Florida Retirement System and

25  received a refund of contributions upon termination of

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

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

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

29  percent interest compounded annually from date of refund until

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

31


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                                          HB 1883, First Engrossed



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

  2  Trust Fund.

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

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

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

  6  shall contribute 14.38 percent of all salary received during

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

  8  period, whichever is greater, plus 4 percent interest

  9  compounded annually from the first year of service claimed

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

11  annually thereafter, until full payment is made to the

12  Retirement Trust Fund.

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

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

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

16  member shall contribute the total employee and employer

17  contributions which were required to be made to the Highway

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

19  the period claimed, plus 4 percent interest compounded

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

21  and 6.5 percent interest compounded annually thereafter, until

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

23  any governmental entity which employed such member may elect

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

25  required to purchase this prior service credit.

26         (e)  For service performed under the Florida Retirement

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

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

29  member of the Florida Retirement System. The division shall

30  adopt rules establishing criteria for claiming such credit and

31


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                                          HB 1883, First Engrossed



  1  detailing the documentation required to substantiate the

  2  error.

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

  4  contributions for prior service credit for any member, except

  5  that the employer shall pay the employer portion of

  6  contributions for any legislator who elects to withdraw from

  7  the Florida Retirement System and later rejoins the system and

  8  pays any employee contributions required in accordance with s.

  9  121.052(3)(d).

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

11  (f) of subsection (7), and paragraphs (a) and (i) of

12  subsection (13) of section 121.091, Florida Statutes, 1998

13  Supplement, are amended to read:

14         121.091  Benefits payable under the system.--Benefits

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

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

17  begun participation in the Deferred Retirement Option Program

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

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

20  division may cancel an application for retirement benefits

21  when the member or beneficiary fails to timely provide the

22  information and documents required by this chapter and the

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

24  procedures for application for retirement benefits and for the

25  cancellation of such application when the required information

26  or documents are not received.

27         (4)  DISABILITY RETIREMENT BENEFIT.--

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

29  considered totally and permanently disabled if, in the opinion

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

31  medically determinable physical or mental impairment, from


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                                          HB 1883, First Engrossed



  1  rendering useful and efficient service as an officer or

  2  employee.

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

  4  approving payment of any disability retirement benefit, shall

  5  require proof that the member is totally and permanently

  6  disabled as provided herein:

  7         1.  Such, which proof shall include the certification

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

  9  physicians of the state and such other evidence of disability

10  as the administrator may require, including reports from

11  vocational rehabilitation, evaluation, or testing specialists

12  who have evaluated the applicant for employment.

13         2.  It must be documented that:

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

15  symptomatic during the time the member was employed in an

16  employee/employer relationship with his or her employer;

17         b.  The member was totally and permanently disabled at

18  the time he or she terminated covered employment; and

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

20  employer after such termination.

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

22  disability, in addition to the requirements of subparagraph

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

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

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

26  relationship with his or her employer.

27         4.  The unavailability of an employment position that

28  the member is physically and mentally capable of performing

29  will not be considered as proof of total and permanent

30  disability.

31         (7)  DEATH BENEFITS.--


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                                          HB 1883, First Engrossed



  1         (f)  Notwithstanding any other provisions in this

  2  chapter to the contrary and upon application to the

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

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

  5  satisfying the service requirements for vesting and retirement

  6  eligibility, shall be permitted to purchase only the

  7  additional service credit necessary to vest and qualify for

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

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

10         1.  Such eligible joint annuitant may use the deceased

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

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

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

14  leave is sufficient to cover the additional months required.

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

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

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

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

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

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

21  Such eligible joint annuitant shall pay the contribution rate

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

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

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

25  death, plus 6.5 percent interest compounded annually.  The

26  accumulated leave payment used in the average final

27  compensation shall not include that portion of the payment

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

29  creditable service.

30         2.  Such eligible joint annuitant may purchase

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


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                                          HB 1883, First Engrossed



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

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

  3  121.1122, that the deceased member would have been eligible to

  4  purchase prior to his or her death.

  5

  6  Service purchased under this paragraph shall be added to the

  7  creditable service of the member and used to vest for

  8  retirement eligibility, and shall be used in the calculation

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

10  annuitant.  Any benefits paid in accordance with this

11  paragraph shall only be made prospectively.

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

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

14  Retirement Option Program, hereinafter referred to as the

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

16  Florida  Retirement System may elect to participate, deferring

17  receipt of retirement benefits while continuing employment

18  with his or her Florida Retirement System employer.  The

19  deferred monthly benefits shall accrue in the System Trust

20  Fund on behalf of the participant, plus interest compounded

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

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

23  the participant shall receive the total DROP benefits and

24  begin to receive the previously determined normal retirement

25  benefits. Participation in the DROP does not guarantee

26  employment for the specified period of DROP.

27         (a)  Eligibility of member to participate in the

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

29  regularly established position, and all active members of

30  either the Teachers' Retirement System established in chapter

31  238 or the State and County Officers' and Employees'


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                                          HB 1883, First Engrossed



  1  Retirement System established in chapter 122 which systems are

  2  consolidated within the Florida Retirement System under s.

  3  121.011, are eligible to elect participation in the DROP

  4  provided that:

  5         1.  The member is not a renewed member of the Florida

  6  Retirement System under s. 121.122, or a member of the State

  7  Community College System Optional Retirement Program under s.

  8  121.051, the Senior Management Service Optional Annuity

  9  Program under s. 121.055, or the optional retirement program

10  for the State University System under s. 121.35.

11         2.  Election to participate is made within 12 months

12  immediately following the date on which the member first

13  reaches normal retirement date, or, for a member who reaches

14  normal retirement date based on service before he or she

15  reaches age 62, or age 55 for Special Risk Class members,

16  election to participate may be deferred to the 12 months

17  immediately following the date the member attains 57, or age

18  52 50 for Special Risk Class members. For a member who first

19  reached normal retirement date or the deferred eligibility

20  date described above prior to the effective date of this

21  section, election to participate shall be made within 12

22  months after the effective date of this section.  A member who

23  fails to make an election within such 12-month limitation

24  period shall forfeit all rights to participate in the DROP.

25  The member shall advise his or her employer and the division

26  in writing of the date on which the DROP shall begin. Such

27  beginning date may be subsequent to the 12-month election

28  period, but must be within the 60-month limitation period as

29  provided in subparagraph (b)1. When establishing eligibility

30  of the member to participate in the DROP or the 60-month

31  maximum participation period, the member may elect to include


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                                          HB 1883, First Engrossed



  1  or exclude any optional service credit purchased by the member

  2  from the total service used to establish the normal retirement

  3  date. A member with dual normal retirement dates shall be

  4  eligible to elect to participate in DROP within 12 months

  5  after attaining normal retirement date in either class.

  6         3.  The employer of a member electing to participate in

  7  the DROP, or employers if dually employed, shall acknowledge

  8  in writing to the division the date the member's participation

  9  in the DROP begins and the date the member's employment and

10  DROP participation will terminate.

11         4.  Simultaneous employment of a participant by

12  additional Florida Retirement System employers subsequent to

13  the commencement of participation in the DROP shall be

14  permissible provided such employers acknowledge in writing a

15  DROP termination date no later than the participant's existing

16  termination date or the 60-month limitation period as provided

17  in subparagraph (b)1.

18         5.  A DROP participant may change employers while

19  participating in the DROP, subject to the following:

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

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

22  month of continuous DROP participation.  If a member receives

23  no salary during a month, DROP participation shall cease

24  unless the employer verifies a continuation of the employment

25  relationship for such participant pursuant to s.

26  121.021(39)(b).

27         b.  Such participant and new employer shall notify the

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

29  of the new employer.

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

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


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                                          HB 1883, First Engrossed



  1  not beyond the original 60-month period provided in

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

  3  additional retirement contributions and interest required if

  4  the participant fails to timely terminate employment, and

  5  shall be subject to the adjustment required in

  6  sub-subparagraph (c)5.d. (c)4.d.

  7         (i)  Contributions.--

  8         1.  All employers paying the salary of a DROP

  9  participant filling a regularly established position shall

10  contribute 11.56 percent of such participant's gross

11  compensation, which shall constitute the entire employer DROP

12  contribution with respect to such participant.  Such

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

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

15  for each pay period and are in addition to contributions

16  required for social security and the Retiree Health Insurance

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

18  health insurance subsidy contributions are not included in the

19  DROP.

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

21  also withhold one-half of the entire social security

22  contribution required for the participant.  Contributions for

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

24  amount required for social security coverage as now or

25  hereafter provided by the federal Social Security Act, shall

26  be in addition to contributions specified in subparagraph 1.

27         3.  All employers paying the salary of a DROP

28  participant filling a regularly established position shall

29  contribute the 0.66 percent of such participant's gross

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

31  the employer's health insurance subsidy contribution with


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                                          HB 1883, First Engrossed



  1  respect to such participant. Such contributions shall be

  2  deposited by the administrator in the Retiree Health Insurance

  3  Subsidy Trust Fund.

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

  5  Statutes, 1998 Supplement, is amended to read:

  6         121.122  Renewed membership in system.--Except as

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

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

  9  regularly established position with a covered employer shall

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

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

12  retiree of a state-administered retirement system who is

13  employed in a position included in the Senior Management

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

15  Senior Management Service Class of the Florida Retirement

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

17  receive an additional retirement benefit, subject to the

18  following conditions:

19         (3)  Such member shall be entitled to purchase

20  additional retirement credit in the Regular Class or the

21  Senior Management Service Class, as applicable, for any

22  postretirement service performed in a regularly established

23  position as follows:

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

25  by paying the Regular Class applicable employee and employer

26  contributions for the period being claimed, plus 4 percent

27  interest compounded annually from first year of service

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

29  compounded thereafter, until full payment is made to the

30  Florida Retirement System Trust Fund; or

31


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                                          HB 1883, First Engrossed



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

  2  1, 1997, as provided in s. 121.055(1)(i)(h).

  3

  4  The contribution for postretirement service between July 1,

  5  1985, and July 1, 1991, for which the reemployed retiree

  6  contribution was paid, shall be the difference between such

  7  contribution and the total applicable contribution for the

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

  9  member may pay the applicable employer contribution in lieu of

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

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

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

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

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

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

16         121.24  Conduct of commission business; legal and other

17  assistance; compensation.--

18         (5)  The State Retirement Commission has the authority

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

20  implement the provisions of law conferring duties upon the

21  commission.

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

23  121.35, Florida Statutes, 1998 Supplement, is amended to read:

24         121.35  Optional retirement program for the State

25  University System.--

26         (5)  BENEFITS.--

27         (a)  Benefits shall be payable under the optional

28  retirement program only to vested participants in the program,

29  or their beneficiaries as designated by the participant in the

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

31  paid only by the designated company in accordance with the


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                                          HB 1883, First Engrossed



  1  terms of the annuity contract or contracts applicable to the

  2  participant. The participant must be terminated from all

  3  employment with all Florida Retirement System employers, as

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

  5  employer-funded benefit. Benefits funded by employer

  6  contributions shall be payable only as a lifetime annuity to

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

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

  9  death of the participant; or

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

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

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

13  retirement program participation. A de minimis account is an

14  account with a provider company containing employer

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

16  $3,500 made under the provisions of this chapter. Such

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

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

19  Internal Revenue Code.

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

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

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

23  of Florida, is reenacted to read:

24         121.40  Cooperative extension personnel at the

25  Institute of Food and Agricultural Sciences; supplemental

26  retirement benefits.--

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

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

29  must meet all of the following eligibility criteria:

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

31  from a state-supported retirement system or from social


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                                          HB 1883, First Engrossed



  1  security based upon service as a cooperative extension

  2  employee of the institute. Participation in the Institute of

  3  Food and Agricultural Sciences Supplemental Retirement Program

  4  shall not constitute membership in the Florida Retirement

  5  System.

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

  7         (a)  Any person who is receiving a supplemental

  8  retirement benefit under this section may be reemployed by any

  9  private or public employer after retirement and receive

10  supplemental retirement benefits pursuant to this section and

11  compensation from his or her employer, without any

12  limitations.  However, if a retired participant who is

13  receiving a supplemental retirement benefit under this section

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

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

16  all rights to supplemental retirement benefits in accordance

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

18  that no person may receive both a salary from reemployment

19  with any agency participating in the Florida Retirement System

20  and supplemental retirement benefits under this section for a

21  period of 12 months immediately subsequent to the date of

22  retirement.

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

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

25  is reemployed with any agency participating in the Florida

26  Retirement System prior to completion of the 12-month

27  limitation period shall give timely notice of this fact in

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

29  or her supplemental retirement benefits suspended for the

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

31  employed in violation of this subsection and any employing


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                                          HB 1883, First Engrossed



  1  agency which knowingly employs or appoints such person without

  2  notifying the Division of Retirement to suspend retirement

  3  benefits shall be jointly and severally liable for

  4  reimbursement to the retirement trust fund of any benefits

  5  paid during the reemployment limitation period.  To avoid

  6  liability, such employing agency shall have a written

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

  8  a state-administered retirement system. Any supplemental

  9  retirement benefits received while reemployed during this

10  reemployment limitation period shall be repaid to the trust

11  fund, and supplemental retirement benefits shall remain

12  suspended until such repayment has been made.  Supplemental

13  benefits suspended beyond the reemployment limitation shall

14  apply toward repayment of supplemental benefits received in

15  violation of the reemployment limitation.

16         (c)  The reemployment by an employer participating in

17  the Florida Retirement System of any person receiving

18  supplemental retirement benefits under this section shall have

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

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

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

22  is receiving supplemental retirement benefits under this

23  section, the employer shall pay retirement contributions in an

24  amount equal to the unfunded actuarial accrued liability

25  portion of the employer contribution which would be required

26  for regular members of the Florida Retirement System.

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

28  provided in s. 121.122 for renewed membership.

29         (d)  The limitations of this subsection apply to

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

31


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                                          HB 1883, First Engrossed



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

  2  which the person is compensated.

  3         (12)  CONTRIBUTIONS.--

  4         (a)  For the purposes of funding the supplemental

  5  benefits provided by this section, the institute is authorized

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

  7  monthly contributions from its appropriated budget. These

  8  amounts shall be paid into the Institute of Food and

  9  Agricultural Sciences Supplemental Retirement Trust Fund,

10  which is hereby created.

11         (b)  The monthly contributions required to be paid

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

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

14  employees of the institute who hold both state and federal

15  appointments and who participate in the federal Civil Service

16  Retirement System shall be as follows:

17

18  Dates of Contribution                              Percentage

19    Rate Changes                                        Due

20

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

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

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

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

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

26  Effective July 1, 1998                               7.17%

27

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

29  Florida Statutes, 1998 Supplement, as amended by chapter

30  96-423 and subsection (12) of said section, as amended by

31


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                                          HB 1883, First Engrossed



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

  2  read:

  3         413.051  Eligible blind persons; operation of vending

  4  stands.--

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

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

  7  121.051(6)(b)1. shall pay any unappropriated retirement costs

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

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

10  is eligible to maintain membership in the Florida Retirement

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

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

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

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

15  election to withdraw.  Failure to timely notify the divisions

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

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

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

19  licensee to cover the required contribution to the Florida

20  Retirement System, that blind licensee shall become ineligible

21  to participate in the Florida Retirement System on the last

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

23  the amount contributed is insufficient to cover the required

24  contribution.  For any blind licensee who becomes ineligible

25  to participate in the Florida Retirement System as described

26  in this subsection, no creditable service shall be earned

27  under the Florida Retirement System for any period following

28  the month that retirement contributions ceased to be reported.

29  However, any such person may participate in the Florida

30  Retirement System in the future if employed by a participating

31  employer in a covered position.


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                                          HB 1883, First Engrossed



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

  2  permit the division to establish and maintain vending

  3  facilities, issue licenses, establish and maintain a vending

  4  facility training program, provide vendors access to financial

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

  6  vending facility, provide for the transfer and promotion of

  7  vendors, establish a vendors committee, provide for an

  8  operation agreement, provide duties and responsibilities of

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

10  provide procedures for newspaper vending sales.

11         Section 17.  Paragraph (b) of subsection (1) of section

12  175.071, Florida Statutes, 1998 Supplement, is amended to

13  read:

14         175.071  General powers and duties of board of

15  trustees.--For any municipality, special fire control

16  district, chapter plan, local law municipality, local law

17  special fire control district, or local law plan under this

18  chapter:

19         (1)  The board of trustees may:

20         (b)  Invest and reinvest the assets of the

21  firefighters' pension trust fund in:

22         1.  Time or savings accounts of a national bank, a

23  state bank insured by the Bank Insurance Fund, or a savings,

24  building, and loan association insured by the Savings

25  Association Insurance Fund which is administered by the

26  Federal Deposit Insurance Corporation or a state or federal

27  chartered credit union whose share accounts are insured by the

28  National Credit Union Share Insurance Fund.

29         2.  Obligations of the United States or obligations

30  guaranteed as to principal and interest by the government of

31  the United States.


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                                          HB 1883, First Engrossed



  1         3.  Bonds issued by the State of Israel.

  2         4.  Bonds, stocks, or other evidences of indebtedness

  3  issued or guaranteed by a corporation organized under the laws

  4  of the United States, any state or organized territory of the

  5  United States, or the District of Columbia, provided:

  6         a.  The corporation is listed on any one or more of the

  7  recognized national stock exchanges or on the National Market

  8  System of the Nasdaq Stock Market and, in the case of bonds

  9  only, holds a rating in one of the three highest

10  classifications by a major rating service; and

11         b.  The board of trustees shall not invest more than 5

12  percent of its assets in the common stock or capital stock of

13  any one issuing company, nor shall the aggregate investment in

14  any one issuing company exceed 5 percent of the outstanding

15  capital stock of that company or the aggregate of its

16  investments under this subparagraph at cost exceed 50 percent

17  of the assets of the fund.

18

19  This paragraph shall apply to all boards of trustees and

20  participants. However, in the event that a municipality or

21  special fire control district has a duly enacted pension plan

22  pursuant to, and in compliance with, s. 175.351, and the

23  trustees thereof desire to vary the investment procedures

24  herein, the trustees of such plan shall request a variance of

25  the investment procedures as outlined herein only through a

26  municipal ordinance, special act of the Legislature, or

27  resolution by the governing body of the special fire control

28  district; where a special act, or a municipality by ordinance

29  adopted prior to July 1, 1998, permits a greater than

30  50-percent equity investment, such municipality shall not be

31  required to comply with the aggregate equity investment


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                                          HB 1883, First Engrossed



  1  provisions of this paragraph. Notwithstanding any other

  2  provision of law to the contrary, nothing in this section may

  3  be construed to take away any preexisting legal authority to

  4  make equity investments that exceed the requirements of this

  5  paragraph. The board of trustees may invest up to 10 percent

  6  of plan assets in foreign securities.

  7         Section 18.  Paragraph (b) of subsection (1) of section

  8  185.06, Florida Statutes, 1998 Supplement, is amended to read:

  9         185.06  General powers and duties of board of

10  trustees.--For any municipality, chapter plan, local law

11  municipality, or local law plan under this chapter:

12         (1)  The board of trustees may:

13         (b)  Invest and reinvest the assets of the retirement

14  trust fund in:

15         1.  Time or savings accounts of a national bank, a

16  state bank insured by the Bank Insurance Fund, or a savings

17  and loan association insured by the Savings Association

18  Insurance Fund which is administered by the Federal Deposit

19  Insurance Corporation or a state or federal chartered credit

20  union whose share accounts are insured by the National Credit

21  Union Share Insurance Fund.

22         2.  Obligations of the United States or obligations

23  guaranteed as to principal and interest by the United States.

24         3.  Bonds issued by the State of Israel.

25         4.  Bonds, stocks, or other evidences of indebtedness

26  issued or guaranteed by a corporation organized under the laws

27  of the United States, any state or organized territory of the

28  United States, or the District of Columbia, provided:

29         a.  The corporation is listed on any one or more of the

30  recognized national stock exchanges or on the National Market

31  System of the Nasdaq Stock Market and, in the case of bonds


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                                          HB 1883, First Engrossed



  1  only, holds a rating in one of the three highest

  2  classifications by a major rating service; and

  3         b.  The board of trustees shall not invest more than 5

  4  percent of its assets in the common stock or capital stock of

  5  any one issuing company, nor shall the aggregate investment in

  6  any one issuing company exceed 5 percent of the outstanding

  7  capital stock of the company or the aggregate of its

  8  investments under this subparagraph at cost exceed 50 percent

  9  of the fund's assets.

10

11  This paragraph shall apply to all boards of trustees and

12  participants. However, in the event that a municipality has a

13  duly enacted pension plan pursuant to, and in compliance with,

14  s. 185.35 and the trustees thereof desire to vary the

15  investment procedures herein, the trustees of such plan shall

16  request a variance of the investment procedures as outlined

17  herein only through a municipal ordinance or special act of

18  the Legislature; where a special act, or a municipality by

19  ordinance adopted prior to July 1, 1998, permits a greater

20  than 50-percent equity investment, such municipality shall not

21  be required to comply with the aggregate equity investment

22  provisions of this paragraph. Notwithstanding any other

23  provision of law to the contrary, nothing in this section may

24  be construed to take away any preexisting legal authority to

25  make equity investments that exceed the requirements of this

26  paragraph. The board of trustees may invest up to 10 percent

27  of plan assets in foreign securities.

28         Section 19.  Section 121.027, Florida Statutes, is

29  repealed.

30         Section 20.  The Governor, Comptroller, and Treasurer,

31  sitting as the Board of Trustees of the State Board of


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                                          HB 1883, First Engrossed



  1  Administration, shall review the actuarial valuation report

  2  prepared in accordance with the provisions of chapter 121,

  3  Florida Statutes.  The Board shall review the process by which

  4  Florida Retirement System contribution rates are determined

  5  and recommend and submit any comments regarding the process to

  6  the Legislature.

  7         Section 21.  Section 112.18, Florida Statutes, is

  8  amended to read:

  9         112.18  Firefighters and state law enforcement

10  officers; special provisions relative to disability.--

11         (1)  Any condition or impairment of health of any

12  Florida state, municipal, county, port authority, special tax

13  district, or fire control district firefighter or state law

14  enforcement officer caused by tuberculosis, heart disease, or

15  hypertension resulting in total or partial disability or death

16  shall be presumed to have been accidental and to have been

17  suffered in the line of duty unless the contrary be shown by

18  competent evidence. However, any such firefighter or state law

19  enforcement officer shall have successfully passed a physical

20  examination upon entering into any such service as a

21  firefighter or state law enforcement officer, which

22  examination failed to reveal any evidence of any such

23  condition.  Such presumption shall not apply to benefits

24  payable under or granted in a policy of life insurance or

25  disability insurance, unless the insurer and insured have

26  negotiated for such additional benefits to be included in the

27  policy contract.

28         (2)  This section shall be construed to authorize the

29  above governmental entities to negotiate policy contracts for

30  life and disability insurance to include accidental death

31  benefits or double indemnity coverage which shall include the


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                                          HB 1883, First Engrossed



  1  presumption that any condition or impairment of health of any

  2  firefighter caused by tuberculosis, heart disease, or

  3  hypertension resulting in total or partial disability or death

  4  was accidental and suffered in the line of duty, unless the

  5  contrary be shown by competent evidence.

  6         Section 22.  This act shall take effect upon becoming

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

  8  121.051, paragraph (a) of subsection (7) of section 121.052,

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

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

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

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

13

14

15

16

17

18

19

20

21

22

23

24

25

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27

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