Senate Bill 2530e1
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SB 2530 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;
20 reenacting s. 121.051(6), F.S., relating to
21 Florida Retirement System membership status of
22 blind vending facility operators; reenacting
23 ss. 121.052(7)(a), 121.055(3)(a), 121.071(1),
24 F.S., relating to contribution rates; amending
25 ss. 121.052, 121.055, 121.071, F.S.; changing
26 contribution rates for specified classes and
27 subclasses of the system; correcting an error;
28 conforming provisions relating to de minimis
29 accounts to federal law; providing for
30 withdrawal from the Senior Management Service
31 Class; amending s. 121.081, F.S.; clarifying
1
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SB 2530 First Engrossed
1 provisions relating to past service and prior
2 service; amending s. 121.091, F.S.; clarifying
3 proof of disability requirements; modifying
4 provisions relating to death benefits to permit
5 purchase of certain retirement credit by joint
6 annuitants; clarifying the contribution rate
7 and interest required to be paid for such
8 purchases; updating references; amending s.
9 121.122, F.S.; correcting a reference; amending
10 121.24, F.S.; authorizing the State Retirement
11 Commission to adopt rules; amending s. 121.35,
12 F.S.; conforming provisions relating to de
13 minimis accounts to federal law; amending s.
14 121.40, F.S., to remove reemployment
15 limitations and reenacting subsection (12),
16 relating to contribution rates for the
17 supplemental retirement program for the
18 Institute of Food and Agricultural Sciences at
19 the University of Florida; reenacting s.
20 413.051(11), (12), F.S., relating to Florida
21 Retirement System membership eligibility and
22 retirement contribution payments for blind
23 vending facility operators; amending s. 112.18,
24 F.S.; providing presumptions that certain
25 illnesses incurred by law enforcement officers
26 are done so in the line of duty; amending ss.
27 175.071 and 185.06, F.S.; providing, with
28 respect to the board of trustees for municipal
29 firefighters' pension trust funds and municipal
30 police officers' retirement trust funds that
31 the board may invest in corporations on the
2
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SB 2530 First Engrossed
1 National Market System of the Nasdaq Stock
2 Market; repealing s. 121.027, F.S., relating to
3 the division's rulemaking authority for ch.
4 97-180, Laws of Florida; amending s. 112.64,
5 F.S.; providing a pension experience dividend;
6 providing for review of actuarial reports by
7 the Trustees of the Florida Retirement System;
8 amending s. 216.136, F.S.; creating a Florida
9 Retirement System Actuarial Assumption
10 Conference; providing duties and principals;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Subsections (4) and (5) of section 112.63,
16 Florida Statutes, are amended to read:
17 112.63 Actuarial reports and statements of actuarial
18 impact; review.--
19 (4) Effective July 1, 1999, upon receipt, pursuant to
20 subsection (2), of an actuarial report, or upon receipt,
21 pursuant to subsection (3), of a statement of actuarial
22 impact, the division shall acknowledge such receipt, but shall
23 only review and comment on each retirement system's or plan's
24 the actuarial valuations at least on a triennial basis and
25 statements. If the division finds that the actuarial
26 valuation is not complete, accurate, or based on reasonable
27 assumptions, or if the division does not receive the actuarial
28 report or statement of actuarial impact, the division shall
29 notify the local government and request appropriate
30 adjustment. If, after a reasonable period of time, a
31 satisfactory adjustment is not made, the affected local
3
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SB 2530 First Engrossed
1 government or the division may petition for a hearing under
2 the provisions of ss. 120.569 and 120.57. If the
3 administrative law judge recommends in favor of the division,
4 the division shall perform an actuarial review or prepare the
5 statement of actuarial impact. The cost to the division of
6 performing such actuarial review or preparing such statement
7 shall be charged to the governmental entity of which the
8 employees are covered by the retirement system or plan. If
9 payment of such costs is not received by the division within
10 60 days after receipt by the governmental entity of the
11 request for payment, the division shall certify to the
12 Comptroller the amount due, and the Comptroller shall pay such
13 amount to the division from any funds payable to the
14 governmental entity of which the employees are covered by the
15 retirement system or plan. If the administrative law judge
16 recommends in favor of the local retirement system and the
17 division performs an actuarial review, the cost to the
18 division of performing the actuarial review shall be paid by
19 the division.
20 (5) Payments made to the fund as required by this
21 chapter shall be based on the normal and past service costs
22 contained in the state-accepted version of the most recent
23 actuarial valuation, subject to being state-accepted.
24 Section 2. Subsection (2) of section 112.65, Florida
25 Statutes, is amended to read:
26 112.65 Limitation of benefits.--
27 (2) No member of a retirement system or plan covered
28 by this part who is not now a member of such plan shall be
29 allowed to receive a retirement benefit or pension which is in
30 part or in whole based upon any service with respect to which
31 the member is already receiving, or will receive in the
4
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SB 2530 First Engrossed
1 future, a retirement benefit or pension from a different
2 employer's another retirement system or plan. This
3 restriction does not apply to social security benefits or
4 federal benefits under chapter 67, Title 10, U.S. Code.
5 Section 3. Paragraph (b) of subsection (2) of section
6 and paragraph (e) of subsection (3) of section 121.011,
7 Florida Statutes, 1998 Supplement, are amended to read:
8 121.011 Florida Retirement System.--
9 (2) CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--
10 (b) The chapters or retirement system laws named in
11 paragraph (a) are hereby consolidated as separate instruments
12 appended to the "Florida Retirement System Act" established by
13 this chapter, and the administration of said chapters or
14 retirement systems shall be consolidated with the
15 administration of the Florida Retirement System established by
16 this chapter, and the Florida Retirement System shall assume
17 all liabilities related to the payment of benefits to members
18 and their beneficiaries under the respective retirement
19 systems of the members and their beneficiaries.
20 (3) PRESERVATION OF RIGHTS.--
21 (e) Any member of the Florida Retirement System or any
22 member of an existing system under this chapter on July 1,
23 1975, who is not retired and who is, has been, or shall be,
24 suspended and reinstated without compensation shall receive
25 retirement service credit for the period of time from the date
26 of suspension to the date of reinstatement, provided:
27 1. The creditable service claimed for the period of
28 suspension does not exceed 24 months;
29 2. The member returns to active employment and remains
30 on the employer's payroll for at least 1 calendar month 30
31 calendar days; and
5
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SB 2530 First Engrossed
1 3. The member pays into the Retirement System Trust
2 Fund the total required employer contributions plus the total
3 employee contributions, if applicable, based on the member's
4 monthly compensation in effect for the pay period immediately
5 preceding the period of suspension, prorated for the said
6 period of suspension, plus interest thereon at a rate of 4
7 percent per annum compounded annually until July 1, 1975, and
8 6.5 percent interest thereafter until paid. If permitted by
9 federal law, the member may pay into the Social Security Trust
10 Fund the total cost, if any, of providing social security
11 coverage for the period of suspension if any social security
12 payments have been made by the employer for the benefit of the
13 member during such period. Should there be any conflict as to
14 payment for social security coverage, the payment for
15 retirement service credit shall be made and retirement service
16 credit granted regardless of such conflict.
17 Section 4. Paragraph (a) of subsection (17) of section
18 121.021, Florida Statutes, 1998 Supplement, is amended to
19 read:
20 121.021 Definitions.--The following words and phrases
21 as used in this chapter have the respective meanings set forth
22 unless a different meaning is plainly required by the context:
23 (17)(a) "Creditable service" of any member means the
24 sum of his or her past service, prior service, military
25 service, out-of-state or non-FRS in-state service, workers'
26 compensation credit, leave-of-absence credit and future
27 service allowed within the provisions of this chapter if all
28 required contributions have been paid and all other
29 requirements of this chapter have been met. However, in no
30 case shall a member receive credit for more than a year's
31 service during any 12-month period. Service by as applied to a
6
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SB 2530 First Engrossed
1 teacher, or a nonacademic employee of a school board, or an
2 employee of a participating employer other than a school board
3 whose total employment is to provide services to a school
4 board for the school year only shall be based on contract
5 years of employment or school term years of employment, as
6 provided in chapters 122 and 238, rather than 12-month periods
7 of employment.
8 Section 5. Subsection (1) of section 121.031, Florida
9 Statutes, is amended to read:
10 121.031 Administration of system; appropriation;
11 oaths; actuarial studies; public records.--
12 (1) The Division of Retirement has the authority to
13 adopt shall make such rules pursuant to ss. 120.54 and
14 120.536(1) to implement the provisions of law conferring
15 duties upon the division and to adopt rules as are necessary
16 for the effective and efficient administration of this system.
17 The funds to pay the expenses for such administration of the
18 system are hereby appropriated from the interest earned on
19 investments made for the retirement and social security trust
20 funds and the assessments allowed under chapter 650.
21 Section 6. Subsection (6) of section 121.051, Florida
22 Statutes, 1998 Supplement, as amended by chapter 96-423, Laws
23 of Florida, is reenacted to read:
24 121.051 Participation in the system.--
25 (6) SEASONAL STATE EMPLOYMENT; BLIND VENDING FACILITY
26 OPERATORS.--
27 (a) Seasonal state employment shall be included under
28 this chapter, and the time limit and procedure for claiming
29 same as set forth in s. 122.07 shall continue under this
30 chapter for those members transferring to this system and for
31 all new members.
7
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SB 2530 First Engrossed
1 (b)1. All blind or partially sighted persons employed
2 or licensed by the Division of Blind Services as vending
3 facility operators on or after December 1, 1970, and prior to
4 July 1, 1996, are hereby declared to be state employees within
5 the meaning of this chapter, and all vending facility
6 operators licensed and employed during that period shall be
7 compulsory members of the Florida Retirement System in
8 compliance with this chapter for as long as the member is a
9 vending facility operator, except as provided in subparagraph
10 3.
11 2. Blindness shall not be deemed a retirement
12 disability within the provisions of this chapter for such
13 members as are contemplated by this paragraph.
14 3. Any vending facility operator as described in
15 subparagraph 1. may elect, on or before July 31, 1996, to
16 withdraw from the Florida Retirement System as provided in s.
17 413.051(11). The election to withdraw shall take effect as of
18 July 1, 1996, and the decision to withdraw is irrevocable. A
19 vending facility operator who withdraws from the Florida
20 Retirement System as provided in this subparagraph shall
21 retain all creditable service earned in the Florida Retirement
22 System through the month that retirement contributions ceased
23 to be reported, and no creditable service shall be earned as a
24 vending facility operator after such month. However, any such
25 person may participate in the Florida Retirement System in the
26 future if employed by a participating employer in a covered
27 position.
28 4. All blind or partially sighted persons employed or
29 licensed by the Division of Blind Services as vending facility
30 operators on or after July 1, 1996, shall be independent
31
8
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SB 2530 First Engrossed
1 contractors within the meaning of this chapter and shall not
2 be eligible for membership in the Florida Retirement System.
3 Section 7. Paragraph (a) of subsection (7) of section
4 121.052, Florida Statutes, 1998 Supplement, as amended by
5 chapters 96-423 and 98-413, Laws of Florida, is reenacted and
6 amended to read:
7 121.052 Membership class of elected officers.--
8 (7) CONTRIBUTIONS.--
9 (a) The following table states the required retirement
10 contribution rates for members of the Elected Officers' Class
11 and their employers in terms of a percentage of the member's
12 gross compensation. A change in a contribution rate is
13 effective with the first salary paid on or after the beginning
14 date of the change. Contributions shall be made or deducted as
15 may be appropriate for each pay period and are in addition to
16 the contributions required for social security and the Retiree
17 Health Insurance Subsidy Trust Fund.
18
19 Dates of Contribution
20 Rate Changes Members Employers
21
22 July 1, 1972, through September 30, 1977
23 Legislators 8% 8%
24 All Other Members 8% 8%
25
26 October 1, 1977, through September 30, 1978
27 Legislators 8% 8%
28 All Other Members 4% 12%
29
30 October 1, 1978, through September 30, 1979
31 Legislators 8% 10.57%
9
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SB 2530 First Engrossed
1 All Other Members 4% 16.78%
2
3 October 1, 1979, through September 30, 1981
4 Legislators 8% 10.57%
5 Governor, Lt. Governor, Cabinet
6 Officers 4% 16.78%
7 All Other Members 0% 20.78%
8
9 July 1, 1981, through June 30, 1984
10 County Elected Officers 0% 19.30%
11
12 July 1, 1984, through September 30, 1984
13 County Elected Officers 0% 20.25%
14
15 October 1, 1981, through September 30, 1984
16 Legislators 0% 19.30%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 21.03%
19 State Attorneys, Public Defenders 0% 20.95%
20 Justices, Judges 0% 22.55%
21
22 October 1, 1984, through September 30, 1986
23 Legislators 0% 10.98%
24 Governor, Lt. Governor, Cabinet
25 Officers 0% 10.98%
26 State Attorneys, Public Defenders 0% 10.98%
27 Justices, Judges 0% 21.79%
28 County Elected Officers 0% 16.97%
29
30 October 1, 1986, through December 31, 1988
31 Legislators 0% 11.50%
10
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SB 2530 First Engrossed
1 Governor, Lt. Governor, Cabinet
2 Officers 0% 11.50%
3 State Attorneys, Public Defenders 0% 11.50%
4 Justices, Judges 0% 20.94%
5 County Elected Officers 0% 17.19%
6
7 January 1, 1989, through December 31, 1989
8 Legislators 0% 13.70%
9 Governor, Lt. Governor, Cabinet
10 Officers 0% 13.70%
11 State Attorneys, Public Defenders 0% 13.70%
12 Justices, Judges 0% 22.58%
13 County Elected Officers 0% 18.44%
14
15 January 1, 1990, through December 31, 1990
16 Legislators 0% 15.91%
17 Governor, Lt. Governor, Cabinet
18 Officers 0% 15.91%
19 State Attorneys, Public Defenders 0% 15.91%
20 Justices, Judges 0% 24.22%
21 County Elected Officers 0% 19.71%
22
23 January 1, 1991, through December 31, 1991
24 Legislators 0% 17.73%
25 Governor, Lt. Governor, Cabinet
26 Officers 0% 17.73%
27 State Attorneys, Public Defenders 0% 17.73%
28 Justices, Judges 0% 26.63%
29 County Elected Officers 0% 23.32%
30
31 January 1, 1992, through December 31, 1992
11
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SB 2530 First Engrossed
1 Legislators 0% 19.94%
2 Governor, Lt. Governor, Cabinet
3 Officers 0% 19.94%
4 State Attorneys, Public Defenders 0% 19.94%
5 Justices, Judges 0% 28.27%
6 County Elected Officers 0% 24.59%
7
8 January 1, 1993, through December 31, 1993
9 Legislators 0% 22.14%
10 Governor, Lt. Governor, Cabinet
11 Officers 0% 22.14%
12 State Attorneys, Public Defenders 0% 22.14%
13 Justices, Judges 0% 29.91%
14 County Elected Officers 0% 25.84%
15
16 January 1, 1994, through December 31, 1994
17 Legislators 0% 22.65%
18 Governor, Lt. Governor, Cabinet
19 Officers 0% 22.65%
20 State Attorneys, Public Defenders 0% 22.65%
21 Justices, Judges 0% 30.52%
22 County Elected Officers 0% 26.07%
23
24 January 1, 1995, through December 31, 1995
25 Legislators 0% 22.80%
26 Governor, Lt. Governor, Cabinet
27 Officers 0% 22.80%
28 State Attorneys, Public Defenders 0% 22.80%
29 Justices, Judges 0% 30.21%
30 County Elected Officers 0% 27.48%
31
12
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SB 2530 First Engrossed
1 January 1, 1996, through June 30, 1996
2 Legislators 0% 22.90%
3 Governor, Lt. Governor, Cabinet
4 Officers 0% 22.90%
5 State Attorneys, Public Defenders 0% 22.90%
6 Justices, Judges 0% 30.15%
7 County Elected Officers 0% 27.54%
8
9 July 1, 1996, through June 30, 1998
10 Legislators 0% 23.07%
11 Governor, Lt. Governor, Cabinet
12 Officers 0% 23.07%
13 State Attorneys, Public Defenders 0% 23.07%
14 Justices, Judges 0% 29.55%
15 County Elected Officers 0% 27.33%
16
17 Effective July 1, 1998, through
18 June 30, 1999
19 Legislators 0% 22.33%
20 Governor, Lt. Governor, Cabinet
21 Officers 0% 22.33%
22 State Attorneys, Public Defenders 0% 22.33%
23 Justices, Judges 0% 27.21%
24 County Elected Officers 0% 26.99%
25
26 Effective July 1, 1999
27 Legislators 0% 14.31%
28 Governor, Lt. Governor, Cabinet
29 Officers 0% 14.31%
30 State Attorneys, Public
31 Defenders 0% 14.31%
13
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SB 2530 First Engrossed
1 Justices, Judges 0% 20.48%
2 County Elected
3 Officers 0% 17.05%
4
5 Section 8. Paragraph (a) of subsection (3) of section
6 121.055, Florida Statutes, 1998 Supplement, as amended by
7 chapters 96-423 and 98-413, Laws of Florida, is reenacted and
8 amended, and paragraph (b) of subsection (1) and paragraph (e)
9 of subsection (6) of that section are amended, to read:
10 121.055 Senior Management Service Class.--There is
11 hereby established a separate class of membership within the
12 Florida Retirement System to be known as the "Senior
13 Management Service Class," which shall become effective
14 February 1, 1987.
15 (1)
16 (b)1. Except as provided in subparagraph 2., effective
17 January 1, 1990, participation in the Senior Management
18 Service Class shall be compulsory for the president of each
19 community college, the manager of each participating city or
20 county, and all appointed district school superintendents.
21 Effective January 1, 1994, additional positions may be
22 designated for inclusion in the Senior Management Service
23 Class of the Florida Retirement System, provided that:
24 a. Positions to be included in the class shall be
25 designated by the local agency employer. Notice of intent to
26 designate positions for inclusion in the class shall be
27 published once a week for 2 consecutive weeks in a newspaper
28 of general circulation published in the county or counties
29 affected, as provided in chapter 50.
30 b. One nonelective full-time position may be
31 designated for each local agency employer reporting to the
14
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SB 2530 First Engrossed
1 Division of Retirement; for local agencies with 100 or more
2 regularly established positions, additional nonelective
3 full-time positions may be designated, not to exceed 1 percent
4 of the regularly established positions within the agency.
5 c. Each position added to the class must be a
6 managerial or policymaking position filled by an employee who
7 is not subject to continuing contract and serves at the
8 pleasure of the local agency employer without civil service
9 protection, and who:
10 (I) Heads an organizational unit; or
11 (II) Has responsibility to effect or recommend
12 personnel, budget, expenditure, or policy decisions in his or
13 her areas of responsibility.
14 2. In lieu of participation in the Senior Management
15 Service Class, members of the Senior Management Service Class
16 pursuant to the provisions of subparagraph 1. may withdraw
17 from the Florida Retirement System altogether. and participate
18 in a lifetime monthly annuity program which may be provided by
19 the employing agency. The cost to the employer for such
20 annuity shall equal the normal cost portion of the
21 contributions required in the Senior Management Service Class.
22 The employer providing such annuity shall contribute an
23 additional amount to the Florida Retirement System Trust Fund
24 equal to the unfunded actuarial accrued liability portion of
25 the Senior Management Service Class contribution rate. The
26 decision to withdraw from the Florida Retirement System
27 participate in such local government annuity shall be
28 irrevocable for as long as the employee holds such a position
29 eligible for the annuity. Any service creditable under the
30 Senior Management Service Class shall be retained after the
31 member withdraws from the Florida Retirement System; however,
15
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SB 2530 First Engrossed
1 additional service credit in the Senior Management Service
2 Class shall not be earned after such withdrawal. Such members
3 shall not be eligible to participate in the Senior Management
4 Service Optional Annuity Program.
5 (3)(a) The following table states the required
6 retirement contribution rates for members of the Senior
7 Management Service Class and their employers in terms of a
8 percentage of the member's gross compensation. A change in
9 the contribution rate is effective with the first salary paid
10 on or after the beginning date of the change. Contributions
11 shall be made for each pay period and are in addition to the
12 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 February 1, 1987, through
19 December 31, 1988 0% 13.88%
20 January 1, 1989, through
21 December 31, 1989 0% 14.95%
22 January 1, 1990, through
23 December 31, 1990 0% 16.04%
24 January 1, 1991, through
25 December 31, 1991 0% 18.39%
26 January 1, 1992, through
27 December 31, 1992 0% 19.48%
28 January 1, 1993, through
29 December 31, 1993 0% 20.55%
30 January 1, 1994, through
31 December 31, 1994 0% 23.07%
16
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SB 2530 First Engrossed
1 January 1, 1995, through
2 December 31, 1995 0% 23.88%
3 January 1, 1996, through
4 June 30, 1996 0% 24.14%
5 July 1, 1996, through
6 June 30, 1998 0% 21.58%
7 Effective July 1, 1998, through
8 June 30, 1999 0% 23.10%
9 Effective July 1, 1999 0% 11.19%
10
11 (6)
12 (e) Benefits.--
13 1. Benefits shall be payable under the Senior
14 Management Service Optional Annuity Program only to
15 participants in the program, or their beneficiaries as
16 designated by the participant in the contract with a provider
17 company, and such benefits shall be paid by the designated
18 company in accordance with the terms of the annuity contract
19 or contracts applicable to the participant. A participant must
20 be terminated from all employment with all Florida Retirement
21 System employers as provided in s. 121.021(39) to begin
22 receiving the employer-funded benefit. Benefits funded by
23 employer contributions shall be payable only as a lifetime
24 annuity to the participant, his beneficiary, or his estate,
25 except for:
26 a. A lump-sum payment to the beneficiary upon the
27 death of the participant; or
28 b. A cash-out of a de minimis account upon the request
29 of a former participant who has been terminated for a minimum
30 of 6 months from the employment that entitled him to optional
31 annuity retirement program participation. A de minimis account
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SB 2530 First Engrossed
1 is an account with a provider company containing employer
2 contributions and accumulated earnings of not more than $5,000
3 $3,500 made under the provisions of this chapter. Such
4 cash-out must be a complete liquidation of the account balance
5 with that company and is subject to the provisions of the
6 Internal Revenue Code.
7 2. The benefits payable to any person under the Senior
8 Management Service Optional Annuity Program, and any
9 contribution accumulated under such program, shall not be
10 subject to assignment, execution, or attachment or to any
11 legal process whatsoever.
12 3. A participant who receives optional annuity program
13 benefits funded by employer contributions shall be deemed to
14 be retired from a state-administered retirement system in the
15 event of subsequent employment with any employer that
16 participates in the Florida Retirement System.
17 Section 9. Subsection (1) of section 121.071, Florida
18 Statutes, 1998 Supplement, as amended by chapters 96-423 and
19 98-413, Laws of Florida, is reenacted and amended to read:
20 121.071 Contributions.--Contributions to the system
21 shall be made as follows:
22 (1) The following tables state the required retirement
23 contribution rates for members of the Regular Class, Special
24 Risk Class, or Special Risk Administrative Support Class and
25 their employers in terms of a percentage of the member's gross
26 compensation. A change in a contribution rate is effective
27 with the first salary paid on or after the beginning date of
28 the change. Contributions shall be made or deducted as may be
29 appropriate for each pay period and are in addition to the
30 contributions required for social security and the Retiree
31 Health Insurance Subsidy Trust Fund.
18
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SB 2530 First Engrossed
1 (a) Retirement contributions for regular members are
2 as follows:
3
4 Dates of Contribution
5 Rate Changes Members Employers
6
7 December 1, 1970, through December
8 31, 1974, for state agencies, state
9 universities, community colleges,
10 and district school boards 4% 4%
11
12 December 1, 1970, through September
13 30, 1975, for all other local
14 government agencies 4% 4%
15
16 January 1, 1975, through September
17 30, 1978, for state agencies and
18 state universities 0% 9%
19
20 January 1, 1975, through July 31,
21 1978, for community colleges and
22 district school boards 0% 9%
23
24 October 1, 1975, through September
25 30, 1978, for all other local
26 government agencies 0% 9%
27
28 August 1, 1978, through September 30,
29 1981, for community colleges and
30 district school boards 0% 9.1%
31
19
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SB 2530 First Engrossed
1
2 October 1, 1978, through September
3 30, 1981, for all other agencies 0% 9.1%
4
5 October 1, 1981, through
6 September 30, 1984 0% 10.93%
7 October 1, 1984, through
8 September 30, 1986 0% 12.24%
9 October 1, 1986, through
10 December 31, 1988 0% 13.14%
11 January 1, 1989, through
12 December 31, 1989 0% 13.90%
13 January 1, 1990, through
14 December 31, 1990 0% 14.66%
15 January 1, 1991, through
16 December 31, 1991 0% 15.72%
17 January 1, 1992, through
18 December 31, 1992 0% 16.51%
19 January 1, 1993, through
20 December 31, 1993 0% 17.27%
21 January 1, 1994, through
22 December 31, 1994 0% 17.10%
23 January 1, 1995, through
24 December 31, 1995 0% 16.91%
25 January 1, 1996, through
26 June 30, 1996 0% 17.00%
27 July 1, 1996, through
28 June 30, 1998 0% 16.77%
29 Effective July 1, 1998, through
30 June 30, 1999 0% 15.51%
31 Effective July 1, 1999 0% 9.21%
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SB 2530 First Engrossed
1
2 (b) Retirement contributions for special risk members
3 are as follows:
4
5 Dates of Contribution
6 Rate Changes Members Employers
7
8 December 1, 1970, through
9 September 30, 1974 6% 6%
10
11 October 1, 1974, through December 31,
12 1974, for state agencies, state
13 universities, community colleges,
14 and district school boards 8% 8%
15
16 October 1, 1974, through September
17 30, 1975, for all other local
18 government agencies 8% 8%
19
20 January 1, 1975, through September
21 30, 1978, for state agencies, state
22 universities, community colleges,
23 and district school boards 0% 13%
24
25 October 1, 1975, through September
26 30, 1978, for other local
27 government agencies 0% 13%
28
29 October 1, 1978, through
30 September 30, 1981 0% 13.95%
31 October 1, 1981, through
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SB 2530 First Engrossed
1 September 30, 1984 0% 13.91%
2 October 1, 1984, through
3 September 30, 1986 0% 14.67%
4 October 1, 1986, through
5 December 31, 1988 0% 15.11%
6 January 1, 1989, through
7 December 31, 1989 0% 17.50%
8 January 1, 1990, through
9 December 31, 1990 0% 19.90%
10 January 1, 1991, through
11 December 31, 1991 0% 25.52%
12 January 1, 1992, through
13 December 31, 1992 0% 26.35%
14 January 1, 1993, through
15 December 31, 1993 0% 27.14%
16 January 1, 1994, through
17 December 31, 1994 0% 27.03%
18 January 1, 1995, through
19 December 31, 1995 0% 26.83%
20 January 1, 1996, through
21 June 30, 1996 0% 26.84%
22 July 1, 1996, through
23 June 30, 1998 0% 26.44%
24 Effective July 1, 1998, through
25 June 30, 1999 0% 24.38%
26 Effective July 1, 1999 0% 20.22%
27
28 (c) Retirement contributions for special risk
29 administrative support members are as follows:
30
31
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SB 2530 First Engrossed
1 Dates of Contribution
2 Rate Changes Members Employers
3
4 July 1, 1982, through
5 September 30, 1984 0% 11.14%
6 October 1, 1984, through
7 September 30, 1986 0% 13.09%
8 October 1, 1986, through
9 December 31, 1988 0% 15.44%
10 January 1, 1989, through
11 December 31, 1989 0% 14.76%
12 January 1, 1990, through
13 December 31, 1990 0% 14.09%
14 January 1, 1991, through
15 December 31, 1991 0% 20.16%
16 January 1, 1992, through
17 December 31, 1992 0% 19.51%
18 January 1, 1993, through
19 December 31, 1993 0% 18.83%
20 January 1, 1994, through
21 December 31, 1994 0% 18.59%
22 January 1, 1995, through
23 December 31, 1995 0% 17.81%
24 January 1, 1996, through
25 June 30, 1996 0% 17.80%
26 July 1, 1996, through
27 June 30, 1998 0% 17.20%
28 Effective July 1, 1998, through
29 June 30, 1999 0% 14.64%
30 Effective July 1, 1999 0% 11.53%
31
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SB 2530 First Engrossed
1 Section 10. Paragraph (i) of subsection (1) and
2 subsection (2) of section 121.081, Florida Statutes, 1998
3 Supplement, are amended to read:
4 121.081 Past service; prior service;
5 contributions.--Conditions under which past service or prior
6 service may be claimed and credited are:
7 (1)
8 (i) An employee of a state agency who was a member of
9 a state-administered retirement system and who was granted
10 educational leave with pay pursuant to a written educational
11 leave-with-pay policy may claim such period of educational
12 leave as past service subject to the following conditions:
13 1. The educational leave must have occurred prior to
14 December 31, 1971;
15 2. The member must have completed at least 10 years of
16 creditable service excluding the period of the educational
17 leave;
18 3. The employee must have returned to employment with
19 a state agency employer who participated in the retirement
20 system, which return was immediately upon termination of the
21 educational leave, and must have remained on the employer's
22 payroll for at least 1 calendar month 30 calendar days
23 following the return to employment;
24 4. The employee must be a member of the Florida
25 Retirement System at the time he or she claims such service;
26 5. Not more than 24 months of creditable service may
27 be claimed for such period of educational leave with pay;
28 6. The service must not be claimed under any other
29 state or federal retirement system; and
30 7. The member must pay to the retirement trust fund
31 for claiming such past-service credit an amount equal to 8
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SB 2530 First Engrossed
1 percent of his or her gross annual salary immediately prior to
2 the educational leave with pay for each year of past service
3 claimed, plus 4 percent interest thereon compounded annually
4 each June 30 from the first year of service claimed until July
5 1, 1975, and 6.5 percent interest thereafter on the unpaid
6 balance compounded annually each June 30 until paid.
7 (2) Prior service, as defined in s. 121.021(19), may
8 be claimed as creditable service under the Florida Retirement
9 System after a member has been reemployed for 1 complete year
10 of creditable service within a period of 12 consecutive
11 continuous months, except as provided in paragraph (c).
12 Service performed as a participant of the optional retirement
13 program for the State University System under s. 121.35 or the
14 Senior Management Service Optional Annuity Program under s.
15 121.055 may be used to satisfy the reemployment requirement of
16 1 complete year of creditable service 12-continuous-month
17 requirement. The member shall not be permitted to make any
18 contributions for prior service until after completion of the
19 1 year of creditable service 12-month period. The required
20 contributions for claiming the various types of prior service
21 are:
22 (a) For prior service performed prior to the date the
23 system becomes noncontributory for the member and for which
24 the member had credit under one of the existing retirement
25 systems and received a refund of contributions upon
26 termination of employment, the member shall contribute 4
27 percent of all salary received during the period being
28 claimed, plus 4 percent interest compounded annually from date
29 of refund until July 1, 1975, and 6.5 percent interest
30 compounded annually thereafter, until full payment is made to
31 the Retirement Trust Fund. A member who elected to transfer to
25
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SB 2530 First Engrossed
1 the Florida Retirement System from an existing system may
2 receive credit for prior service under the existing system if
3 he or she was eligible under the existing system to claim the
4 prior service at the time of the transfer. Contributions for
5 such prior service shall be determined by the applicable
6 provisions of the system under which the prior service is
7 claimed and shall be paid by the member, with matching
8 contributions paid by the employer at the time the service was
9 performed. Effective July 1, 1978, the account of a person who
10 terminated under s. 238.05(3) may not be charged interest for
11 contributions that remained on deposit in the Annuity Savings
12 Trust Fund established under chapter 238, upon retirement
13 under this chapter or chapter 238.
14 (b) For prior service performed prior to the date the
15 system becomes noncontributory for the member and for which
16 the member had credit under the Florida Retirement System and
17 received a refund of contributions upon termination of
18 employment, the member shall contribute at the rate that was
19 required of him or her during the period of service being
20 claimed, on all salary received during such period, plus 4
21 percent interest compounded annually from date of refund until
22 July 1, 1975, and 6.5 percent interest compounded annually
23 thereafter, until the full payment is made to the Retirement
24 Trust Fund.
25 (c) For prior service as defined in s. 121.021(19)(b)
26 and (c) during which no contributions were made because the
27 member did not participate in a retirement system, the member
28 shall contribute 14.38 percent of all salary received during
29 such period or 14.38 percent of $100 per month during such
30 period, whichever is greater, plus 4 percent interest
31 compounded annually from the first year of service claimed
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SB 2530 First Engrossed
1 until July 1, 1975, and 6.5 percent interest compounded
2 annually thereafter, until full payment is made to the
3 Retirement Trust Fund.
4 (d) In order to claim credit for prior service as
5 defined in s. 121.021(19)(d) for which no retirement
6 contributions were paid during the period of such service, the
7 member shall contribute the total employee and employer
8 contributions which were required to be made to the Highway
9 Patrol Pension Trust Fund, as provided in chapter 321, during
10 the period claimed, plus 4 percent interest compounded
11 annually from the first year of service until July 1, 1975,
12 and 6.5 percent interest compounded annually thereafter, until
13 full payment is made to the Retirement Trust Fund. However,
14 any governmental entity which employed such member may elect
15 to pay up to 50 percent of the contributions and interest
16 required to purchase this prior service credit.
17 (e) For service performed under the Florida Retirement
18 System after December 1, 1970, that was never reported to the
19 division due to error, retirement credit may be claimed by a
20 member of the Florida Retirement System. The division shall
21 adopt rules establishing criteria for claiming such credit and
22 detailing the documentation required to substantiate the
23 error.
24 (f) The employer may not be required to make
25 contributions for prior service credit for any member, except
26 that the employer shall pay the employer portion of
27 contributions for any legislator who elects to withdraw from
28 the Florida Retirement System and later rejoins the system and
29 pays any employee contributions required in accordance with s.
30 121.052(3)(d).
31
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SB 2530 First Engrossed
1 Section 11. Paragraph (c) of subsection (4), paragraph
2 (f) of subsection (7), and paragraphs (a) and (i) of
3 subsection (13) of section 121.091, Florida Statutes, 1998
4 Supplement, are amended to read:
5 121.091 Benefits payable under the system.--Benefits
6 may not be paid under this section unless the member has
7 terminated employment as provided in s. 121.021(39)(a) or
8 begun participation in the Deferred Retirement Option Program
9 as provided in subsection (13), and a proper application has
10 been filed in the manner prescribed by the division. The
11 division may cancel an application for retirement benefits
12 when the member or beneficiary fails to timely provide the
13 information and documents required by this chapter and the
14 division's rules. The division shall adopt rules establishing
15 procedures for application for retirement benefits and for the
16 cancellation of such application when the required information
17 or documents are not received.
18 (4) DISABILITY RETIREMENT BENEFIT.--
19 (b) Total and permanent disability.--A member shall be
20 considered totally and permanently disabled if, in the opinion
21 of the administrator, he or she is prevented, by reason of a
22 medically determinable physical or mental impairment, from
23 rendering useful and efficient service as an officer or
24 employee.
25 (c) Proof of disability.--The administrator, before
26 approving payment of any disability retirement benefit, shall
27 require proof that the member is totally and permanently
28 disabled as provided herein:
29 1. Such, which proof shall include the certification
30 of the member's total and permanent disability by two licensed
31 physicians of the state and such other evidence of disability
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SB 2530 First Engrossed
1 as the administrator may require, including reports from
2 vocational rehabilitation, evaluation, or testing specialists
3 who have evaluated the applicant for employment.
4 2. It must be documented that:
5 a. The member's medical condition occurred or became
6 symptomatic during the time the member was employed in an
7 employee/employer relationship with his or her employer;
8 b. The member was totally and permanently disabled at
9 the time he or she terminated covered employment; and
10 c. The member has not been employed with any other
11 employer after such termination.
12 3. If the application is for in-line-of-duty
13 disability, in addition to the requirements of subparagraph
14 2., it must be documented by competent medical evidence that
15 the disability was caused by a job-related illness or accident
16 which occurred while the member was in an employee/employer
17 relationship with his or her employer.
18 4. The unavailability of an employment position that
19 the member is physically and mentally capable of performing
20 will not be considered as proof of total and permanent
21 disability.
22 (7) DEATH BENEFITS.--
23 (f) Notwithstanding any other provisions in this
24 chapter to the contrary and upon application to the
25 administrator, an eligible joint annuitant, of a member whose
26 employment is terminated by death within 1 year of such member
27 satisfying the service requirements for vesting and retirement
28 eligibility, shall be permitted to purchase only the
29 additional service credit necessary to vest and qualify for
30 retirement benefits, not to exceed a total of 1 year of
31 credit, by one or a combination of the following methods:
29
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SB 2530 First Engrossed
1 1. Such eligible joint annuitant may use the deceased
2 member's accumulated hours of annual, sick, and compensatory
3 leave to purchase additional creditable service, on an hour by
4 hour basis, provided that such deceased member's accumulated
5 leave is sufficient to cover the additional months required.
6 For each month of service credit needed prior to the final
7 month, credit for the total number of work hours in that month
8 must be purchased, using an equal number of the deceased
9 member's accumulated leave hours. Service credit required for
10 the final month in which the deceased member would have become
11 vested shall be awarded upon the purchase of 1 hour of credit.
12 Such eligible joint annuitant shall pay the contribution rate
13 in effect for the period of time being claimed for at the time
14 of purchase of the deceased member's class of membership,
15 multiplied by such member's monthly salary at the time of
16 death, plus 6.5 percent interest compounded annually. The
17 accumulated leave payment used in the average final
18 compensation shall not include that portion of the payment
19 that represents any leave hours used in the purchase of such
20 creditable service.
21 2. Such eligible joint annuitant may purchase
22 additional months of creditable service, up to a maximum of 1
23 year, for any periods of out-of-state service as provided in
24 s. 121.1115, and or in-state service as provided in s.
25 121.1122, that the deceased member would have been eligible to
26 purchase prior to his or her death.
27
28 Service purchased under this paragraph shall be added to the
29 creditable service of the member and used to vest for
30 retirement eligibility, and shall be used in the calculation
31 of any benefits which may be payable to the eligible joint
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SB 2530 First Engrossed
1 annuitant. Any benefits paid in accordance with this
2 paragraph shall only be made prospectively.
3 (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general,
4 and subject to the provisions of this section, the Deferred
5 Retirement Option Program, hereinafter referred to as the
6 DROP, is a program under which an eligible member of the
7 Florida Retirement System may elect to participate, deferring
8 receipt of retirement benefits while continuing employment
9 with his or her Florida Retirement System employer. The
10 deferred monthly benefits shall accrue in the System Trust
11 Fund on behalf of the participant, plus interest compounded
12 monthly, for the specified period of the DROP participation,
13 as provided in paragraph (c). Upon termination of employment,
14 the participant shall receive the total DROP benefits and
15 begin to receive the previously determined normal retirement
16 benefits. Participation in the DROP does not guarantee
17 employment for the specified period of DROP.
18 (a) Eligibility of member to participate in the
19 DROP.--All active Florida Retirement System members in a
20 regularly established position, and all active members of
21 either the Teachers' Retirement System established in chapter
22 238 or the State and County Officers' and Employees'
23 Retirement System established in chapter 122 which systems are
24 consolidated within the Florida Retirement System under s.
25 121.011, are eligible to elect participation in the DROP
26 provided that:
27 1. The member is not a renewed member of the Florida
28 Retirement System under s. 121.122, or a member of the State
29 Community College System Optional Retirement Program under s.
30 121.051, the Senior Management Service Optional Annuity
31
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SB 2530 First Engrossed
1 Program under s. 121.055, or the optional retirement program
2 for the State University System under s. 121.35.
3 2. Election to participate is made within 12 months
4 immediately following the date on which the member first
5 reaches normal retirement date, or, for a member who reaches
6 normal retirement date based on service before he or she
7 reaches age 62, or age 55 for Special Risk Class members,
8 election to participate may be deferred to the 12 months
9 immediately following the date the member attains 57, or age
10 52 50 for Special Risk Class members. For a member who first
11 reached normal retirement date or the deferred eligibility
12 date described above prior to the effective date of this
13 section, election to participate shall be made within 12
14 months after the effective date of this section. A member who
15 fails to make an election within such 12-month limitation
16 period shall forfeit all rights to participate in the DROP.
17 The member shall advise his or her employer and the division
18 in writing of the date on which the DROP shall begin. Such
19 beginning date may be subsequent to the 12-month election
20 period, but must be within the 60-month limitation period as
21 provided in subparagraph (b)1. When establishing eligibility
22 of the member to participate in the DROP or the 60-month
23 maximum participation period, the member may elect to include
24 or exclude any optional service credit purchased by the member
25 from the total service used to establish the normal retirement
26 date. A member with dual normal retirement dates shall be
27 eligible to elect to participate in DROP within 12 months
28 after attaining normal retirement date in either class.
29 3. The employer of a member electing to participate in
30 the DROP, or employers if dually employed, shall acknowledge
31 in writing to the division the date the member's participation
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SB 2530 First Engrossed
1 in the DROP begins and the date the member's employment and
2 DROP participation will terminate.
3 4. Simultaneous employment of a participant by
4 additional Florida Retirement System employers subsequent to
5 the commencement of participation in the DROP shall be
6 permissible provided such employers acknowledge in writing a
7 DROP termination date no later than the participant's existing
8 termination date or the 60-month limitation period as provided
9 in subparagraph (b)1.
10 5. A DROP participant may change employers while
11 participating in the DROP, subject to the following:
12 a. A change of employment must take place without a
13 break in service so that the member receives salary for each
14 month of continuous DROP participation. If a member receives
15 no salary during a month, DROP participation shall cease
16 unless the employer verifies a continuation of the employment
17 relationship for such participant pursuant to s.
18 121.021(39)(b).
19 b. Such participant and new employer shall notify the
20 division on forms required by the division as to the identity
21 of the new employer.
22 c. The new employer shall acknowledge, in writing, the
23 participant's DROP termination date, which may be extended but
24 not beyond the original 60-month period provided in
25 subparagraph (b)1., shall acknowledge liability for any
26 additional retirement contributions and interest required if
27 the participant fails to timely terminate employment, and
28 shall be subject to the adjustment required in
29 sub-subparagraph (c)5.d (c)4.d.
30 (i) Contributions.--
31
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SB 2530 First Engrossed
1 1. All employers paying the salary of a DROP
2 participant filling a regularly established position shall
3 contribute 11.56 percent of such participant's gross
4 compensation, which shall constitute the entire employer DROP
5 contribution with respect to such participant. Such
6 contributions, payable to the System Trust Fund in the same
7 manner as required in s. 121.071, shall be made as appropriate
8 for each pay period and are in addition to contributions
9 required for social security and the Retiree Health Insurance
10 Subsidy Trust Fund. Such employer, social security, and
11 health insurance subsidy contributions are not included in the
12 DROP.
13 2. The employer shall, in addition to subparagraph 1.,
14 also withhold one-half of the entire social security
15 contribution required for the participant. Contributions for
16 social security by each participant and each employer, in the
17 amount required for social security coverage as now or
18 hereafter provided by the federal Social Security Act, shall
19 be in addition to contributions specified in subparagraph 1.
20 3. All employers paying the salary of a DROP
21 participant filling a regularly established position shall
22 contribute the 0.66 percent of such participant's gross
23 compensation required in s. 121.071(4), which shall constitute
24 the employer's health insurance subsidy contribution with
25 respect to such participant. Such contributions shall be
26 deposited by the administrator in the Retiree Health Insurance
27 Subsidy Trust Fund.
28 Section 12. Subsection (3) of section 121.122, Florida
29 Statutes, 1998 Supplement, is amended to read:
30 121.122 Renewed membership in system.--Except as
31 provided in s. 121.053, effective July 1, 1991, any retiree of
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SB 2530 First Engrossed
1 a state-administered retirement system who is employed in a
2 regularly established position with a covered employer shall
3 be enrolled as a compulsory member of the Regular Class of the
4 Florida Retirement System or, effective July 1, 1997, any
5 retiree of a state-administered retirement system who is
6 employed in a position included in the Senior Management
7 Service Class shall be enrolled as a compulsory member of the
8 Senior Management Service Class of the Florida Retirement
9 System as provided in s. 121.055, and shall be entitled to
10 receive an additional retirement benefit, subject to the
11 following conditions:
12 (3) Such member shall be entitled to purchase
13 additional retirement credit in the Regular Class or the
14 Senior Management Service Class, as applicable, for any
15 postretirement service performed in a regularly established
16 position as follows:
17 (a) For regular class service prior to July 1, 1991,
18 by paying the Regular Class applicable employee and employer
19 contributions for the period being claimed, plus 4 percent
20 interest compounded annually from first year of service
21 claimed until July 1, 1975, and 6.5 percent interest
22 compounded thereafter, until full payment is made to the
23 Florida Retirement System Trust Fund; or
24 (b) For Senior Management Service Class prior to June
25 1, 1997, as provided in s. 121.055(1)(i)(h).
26
27 The contribution for postretirement service between July 1,
28 1985, and July 1, 1991, for which the reemployed retiree
29 contribution was paid, shall be the difference between such
30 contribution and the total applicable contribution for the
31 period being claimed, plus interest. The employer of such
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SB 2530 First Engrossed
1 member may pay the applicable employer contribution in lieu of
2 the member. If a member does not wish to claim credit for all
3 of the postretirement service for which he or she is eligible,
4 the service the member claims must be the most recent service.
5 Section 13. Present subsection (5) of section 121.24,
6 Florida Statutes, is renumbered as subsection (6), and a new
7 subsection (5) is added to that section, to read:
8 121.24 Conduct of commission business; legal and other
9 assistance; compensation.--
10 (5) The State Retirement Commission has the authority
11 to adopt rules pursuant to ss. 120.54 and 120.536(1) to
12 implement the provisions of law conferring duties upon the
13 commission.
14 Section 14. Paragraph (a) of subsection (5) of section
15 121.35, Florida Statutes, 1998 Supplement, is amended to read:
16 121.35 Optional retirement program for the State
17 University System.--
18 (5) BENEFITS.--
19 (a) Benefits shall be payable under the optional
20 retirement program only to vested participants in the program,
21 or their beneficiaries as designated by the participant in the
22 contract with a provider company, and such benefits shall be
23 paid only by the designated company in accordance with the
24 terms of the annuity contract or contracts applicable to the
25 participant. The participant must be terminated from all
26 employment with all Florida Retirement System employers, as
27 provided in s. 121.021(39), to begin receiving the
28 employer-funded benefit. Benefits funded by employer
29 contributions shall be payable only as a lifetime annuity to
30 the participant, his beneficiary, or his estate, except for:
31
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SB 2530 First Engrossed
1 1. A lump-sum payment to the beneficiary upon the
2 death of the participant; or
3 2. 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 retirement program participation. A de minimis account is an
7 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 Section 15. Paragraph (e) of subsection (4) and
14 subsection (11) of section 121.40, Florida Statutes, 1998
15 Supplement, are amended, and subsection (12) of that section,
16 as amended by chapters 96-423 and 98-413, Laws of Florida, is
17 reenacted to read:
18 121.40 Cooperative extension personnel at the
19 Institute of Food and Agricultural Sciences; supplemental
20 retirement benefits.--
21 (4) ELIGIBILITY FOR SUPPLEMENT.--To be eligible for a
22 benefit pursuant to the provisions of this section, a person
23 must meet all of the following eligibility criteria:
24 (e) The person must not be entitled to any benefit
25 from a state-supported retirement system or from social
26 security based upon service as a cooperative extension
27 employee of the institute. Participation in the Institute of
28 Food and Agricultural Sciences Supplemental Retirement Program
29 shall not constitute membership in the Florida Retirement
30 System.
31 (11) EMPLOYMENT AFTER RETIREMENT: LIMITATION.--
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SB 2530 First Engrossed
1 (a) Any person who is receiving a supplemental
2 retirement benefit under this section may be reemployed by any
3 private or public employer after retirement and receive
4 supplemental retirement benefits pursuant to this section and
5 compensation from his or her employer, without any
6 limitations. However, if a retired participant who is
7 receiving a supplemental retirement benefit under this section
8 is reemployed at the institute in a position as a cooperative
9 extension employee of the institute, he or she shall forfeit
10 all rights to supplemental retirement benefits in accordance
11 with the eligibility provisions of paragraph (4)(e)., except
12 that no person may receive both a salary from reemployment
13 with any agency participating in the Florida Retirement System
14 and supplemental retirement benefits under this section for a
15 period of 12 months immediately subsequent to the date of
16 retirement.
17 (b) Each person to whom the limitation in paragraph
18 (a) applies who violates such reemployment limitation and who
19 is reemployed with any agency participating in the Florida
20 Retirement System prior to completion of the 12-month
21 limitation period shall give timely notice of this fact in
22 writing to the employer and to the division and shall have his
23 or her supplemental retirement benefits suspended for the
24 balance of the 12-month limitation period. Any person
25 employed in violation of this subsection and any employing
26 agency which knowingly employs or appoints such person without
27 notifying the Division of Retirement to suspend retirement
28 benefits shall be jointly and severally liable for
29 reimbursement to the retirement trust fund of any benefits
30 paid during the reemployment limitation period. To avoid
31 liability, such employing agency shall have a written
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SB 2530 First Engrossed
1 statement from the retiree that he or she is not retired from
2 a state-administered retirement system. Any supplemental
3 retirement benefits received while reemployed during this
4 reemployment limitation period shall be repaid to the trust
5 fund, and supplemental retirement benefits shall remain
6 suspended until such repayment has been made. Supplemental
7 benefits suspended beyond the reemployment limitation shall
8 apply toward repayment of supplemental benefits received in
9 violation of the reemployment limitation.
10 (c) The reemployment by an employer participating in
11 the Florida Retirement System of any person receiving
12 supplemental retirement benefits under this section shall have
13 no effect on the amount of the supplemental benefit of that
14 person. Prior to July 1, 1991, upon employment of any person,
15 other than an elected officer as provided in s. 121.053, who
16 is receiving supplemental retirement benefits under this
17 section, the employer shall pay retirement contributions in an
18 amount equal to the unfunded actuarial accrued liability
19 portion of the employer contribution which would be required
20 for regular members of the Florida Retirement System.
21 Effective July 1, 1991, contributions shall be made as
22 provided in s. 121.122 for renewed membership.
23 (d) The limitations of this subsection apply to
24 reemployment in any capacity with an "employer" as defined in
25 s. 121.021(10), irrespective of the category of funds from
26 which the person is compensated.
27 (12) CONTRIBUTIONS.--
28 (a) For the purposes of funding the supplemental
29 benefits provided by this section, the institute is authorized
30 and required to pay, commencing July 1, 1985, the necessary
31 monthly contributions from its appropriated budget. These
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SB 2530 First Engrossed
1 amounts shall be paid into the Institute of Food and
2 Agricultural Sciences Supplemental Retirement Trust Fund,
3 which is hereby created.
4 (b) The monthly contributions required to be paid
5 pursuant to paragraph (a) on the gross monthly salaries, from
6 all sources with respect to such employment, paid to those
7 employees of the institute who hold both state and federal
8 appointments and who participate in the federal Civil Service
9 Retirement System shall be as follows:
10
11 Dates of Contribution Percentage
12 Rate Changes Due
13
14 July 1, 1985, through December 31, 1988 6.68%
15 January 1, 1989, through December 31, 1993 6.35%
16 January 1, 1994, through December 31, 1994 6.69%
17 January 1, 1995, through June 30, 1996 6.82%
18 July 1, 1996, through June 30, 1998 5.64%
19 Effective July 1, 1998 7.17%
20
21 Section 16. Subsection (11) of section 413.051,
22 Florida Statutes, 1998 Supplement, as amended by chapter
23 96-423, Laws of Florida, and subsection (12) of that section,
24 as amended by chapters 96-423 and 98-149, Laws of Florida, are
25 reenacted to read:
26 413.051 Eligible blind persons; operation of vending
27 stands.--
28 (11) Effective July 1, 1996, blind licensees who
29 remain members of the Florida Retirement System pursuant to s.
30 121.051(6)(b)1. shall pay any unappropriated retirement costs
31 from their net profits or from program income. Within 30 days
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SB 2530 First Engrossed
1 after the effective date of this act, each blind licensee who
2 is eligible to maintain membership in the Florida Retirement
3 System under s. 121.051(6)(b)1., but who elects to withdraw
4 from the system as provided in s. 121.051(6)(b)3., must, on or
5 before July 31, 1996, notify the Division of Blind Services
6 and the Division of Retirement in writing of his or her
7 election to withdraw. Failure to timely notify the divisions
8 shall be deemed a decision to remain a compulsory member of
9 the Florida Retirement System. However, if, at any time after
10 July 1, 1996, sufficient funds are not paid by a blind
11 licensee to cover the required contribution to the Florida
12 Retirement System, that blind licensee shall become ineligible
13 to participate in the Florida Retirement System on the last
14 day of the first month for which no contribution is made or
15 the amount contributed is insufficient to cover the required
16 contribution. For any blind licensee who becomes ineligible
17 to participate in the Florida Retirement System as described
18 in this subsection, no creditable service shall be earned
19 under the Florida Retirement System for any period following
20 the month that retirement contributions ceased to be reported.
21 However, any such person may participate in the Florida
22 Retirement System in the future if employed by a participating
23 employer in a covered position.
24 (12) The Division of Blind Services may adopt rules to
25 permit the division to establish and maintain vending
26 facilities, issue licenses, establish and maintain a vending
27 facility training program, provide vendors access to financial
28 data of the program, set aside funds from net proceeds of the
29 vending facility, provide for the transfer and promotion of
30 vendors, establish a vendors committee, provide for an
31 operation agreement, provide duties and responsibilities of
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SB 2530 First Engrossed
1 the division with respect to the vending facility program, and
2 provide procedures for newspaper vending sales.
3 Section 17. Section 112.18, Florida Statutes, is
4 amended to read:
5 112.18 Firefighters and law enforcement officers;
6 special provisions relative to disability.--
7 (1) Any condition or impairment of health of any
8 Florida state, municipal, county, port authority, special tax
9 district, or fire control district firefighter or law
10 enforcement officer caused by tuberculosis, heart disease, or
11 hypertension resulting in total or partial disability or death
12 shall be presumed to have been accidental and to have been
13 suffered in the line of duty unless the contrary be shown by
14 competent evidence. However, any such firefighter or law
15 enforcement officer shall have successfully passed a physical
16 examination upon entering into any such service as a
17 firefighter or law enforcement officer, which examination
18 failed to reveal any evidence of any such condition. Such
19 presumption shall not apply to benefits payable under or
20 granted in a policy of life insurance or disability insurance,
21 unless the insurer and insured have negotiated for such
22 additional benefits to be included in the policy contract.
23 (2) This section shall be construed to authorize the
24 above governmental entities to negotiate policy contracts for
25 life and disability insurance to include accidental death
26 benefits or double indemnity coverage which shall include the
27 presumption that any condition or impairment of health of any
28 firefighter caused by tuberculosis, heart disease, or
29 hypertension resulting in total or partial disability or death
30 was accidental and suffered in the line of duty, unless the
31 contrary be shown by competent evidence.
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1 Section 18. Paragraph (b) of subsection (1) of section
2 175.071, Florida Statutes, 1998 Supplement, is amended to
3 read:
4 175.071 General powers and duties of board of
5 trustees.--For any municipality, special fire control
6 district, chapter plan, local law municipality, local law
7 special fire control district, or local law plan under this
8 chapter:
9 (1) The board of trustees may:
10 (b) Invest and reinvest the assets of the
11 firefighters' pension trust fund in:
12 1. Time or savings accounts of a national bank, a
13 state bank insured by the Bank Insurance Fund, or a savings,
14 building, and loan association insured by the Savings
15 Association Insurance Fund which is administered by the
16 Federal Deposit Insurance Corporation or a state or federal
17 chartered credit union whose share accounts are insured by the
18 National Credit Union Share Insurance Fund.
19 2. Obligations of the United States or obligations
20 guaranteed as to principal and interest by the government of
21 the United States.
22 3. Bonds issued by the State of Israel.
23 4. Bonds, stocks, or other evidences of indebtedness
24 issued or guaranteed by a corporation organized under the laws
25 of the United States, any state or organized territory of the
26 United States, or the District of Columbia, provided:
27 a. The corporation is listed on any one or more of the
28 recognized national stock exchanges or on the National Market
29 System of the Nasdaq Stock Market and, in the case of bonds
30 only, holds a rating in one of the three highest
31 classifications by a major rating service; and
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SB 2530 First Engrossed
1 b. The board of trustees shall not invest more than 5
2 percent of its assets in the common stock or capital stock of
3 any one issuing company, nor shall the aggregate investment in
4 any one issuing company exceed 5 percent of the outstanding
5 capital stock of that company or the aggregate of its
6 investments under this subparagraph at cost exceed 50 percent
7 of the assets of the fund.
8
9 This paragraph shall apply to all boards of trustees and
10 participants. However, in the event that a municipality or
11 special fire control district has a duly enacted pension plan
12 pursuant to, and in compliance with, s. 175.351, and the
13 trustees thereof desire to vary the investment procedures
14 herein, the trustees of such plan shall request a variance of
15 the investment procedures as outlined herein only through a
16 municipal ordinance, special act of the Legislature, or
17 resolution by the governing body of the special fire control
18 district; where a special act, or a municipality by ordinance
19 adopted prior to July 1, 1998, permits a greater than
20 50-percent equity investment, such municipality shall not be
21 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. Paragraph (b) of subsection (1) of section
29 185.06, Florida Statutes, 1998 Supplement, is amended to read:
30
31
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1 185.06 General powers and duties of board of
2 trustees.--For any municipality, chapter plan, local law
3 municipality, or local law plan under this chapter:
4 (1) The board of trustees may:
5 (b) Invest and reinvest the assets of the retirement
6 trust fund in:
7 1. Time or savings accounts of a national bank, a
8 state bank insured by the Bank Insurance Fund, or a savings
9 and loan association insured by the Savings Association
10 Insurance Fund which is administered by the Federal Deposit
11 Insurance Corporation or a state or federal chartered credit
12 union whose share accounts are insured by the National Credit
13 Union Share Insurance Fund.
14 2. Obligations of the United States or obligations
15 guaranteed as to principal and interest by the United States.
16 3. Bonds issued by the State of Israel.
17 4. Bonds, stocks, or other evidences of indebtedness
18 issued or guaranteed by a corporation organized under the laws
19 of the United States, any state or organized territory of the
20 United States, or the District of Columbia, provided:
21 a. The corporation is listed on any one or more of the
22 recognized national stock exchanges or on the National Market
23 System of the Nasdaq Stock Market and, in the case of bonds
24 only, holds a rating in one of the three highest
25 classifications by a major rating service; and
26 b. The board of trustees shall not invest more than 5
27 percent of its assets in the common stock or capital stock of
28 any one issuing company, nor shall the aggregate investment in
29 any one issuing company exceed 5 percent of the outstanding
30 capital stock of the company or the aggregate of its
31
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SB 2530 First Engrossed
1 investments under this subparagraph at cost exceed 50 percent
2 of the fund's assets.
3
4 This paragraph shall apply to all boards of trustees and
5 participants. However, in the event that a municipality has a
6 duly enacted pension plan pursuant to, and in compliance with,
7 s. 185.35 and the trustees thereof desire to vary the
8 investment procedures herein, the trustees of such plan shall
9 request a variance of the investment procedures as outlined
10 herein only through a municipal ordinance or special act of
11 the Legislature; where a special act, or a municipality by
12 ordinance adopted prior to July 1, 1998, permits a greater
13 than 50-percent equity investment, such municipality shall not
14 be required to comply with the aggregate equity investment
15 provisions of this paragraph. Notwithstanding any other
16 provision of law to the contrary, nothing in this section may
17 be construed to take away any preexisting legal authority to
18 make equity investments that exceed the requirements of this
19 paragraph. The board of trustees may invest up to 10 percent
20 of plan assets in foreign securities.
21 Section 20. Section 121.027, Florida Statutes, is
22 repealed.
23 Section 21. Subsection (4) of section 112.64, Florida
24 Statutes, is amended to read:
25 112.64 Administration of funds; amortization of
26 unfunded liability.--
27 (4) The net increase, if any, in unfunded liability
28 under the plan arising from significant plan amendments
29 adopted, changes in actuarial assumptions, changes in funding
30 methods, or actuarial gains or losses shall be amortized
31 within 30 plan years. In the event that there is no unfunded
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SB 2530 First Engrossed
1 liability under the plan, then the Division of Retirement and
2 the plan actuary will determine plan contributions in a manner
3 designed to maintain the fully funded status of the plan, and
4 to minimize volatility in retirement system contribution
5 rates. If, as a result of favorable experience, the plan's
6 funded ratio of assets divided by actuarial liability exceeds
7 120%, then a portion of the plan's surplus assets shall be
8 applied as a "pension experience dividend" to directly offset
9 not more than 20% of the next year's otherwise determined
10 contribution. It is the legislative intent that any pension
11 experience dividend afforded pursuant to this section be
12 recognized as a nonrecurring payroll cost reduction.
13 Section 22. The trustees of the Florida Retirement
14 System may review the actuarial report prepared in accordance
15 with Florida law. Furthermore, in the discharge of their
16 fiduciary duties, the Trustees should review the process by
17 which FRS contribution rates are reviewed or adopted and
18 submit any comments regarding the process to the Governor and
19 legislative leadership.
20 Section 23. Subsection (11) is added to section
21 216.136, Florida Statutes, to read:
22 216.136 Consensus estimating conferences; duties and
23 principals.--
24 (11) FLORIDA RETIREMENT SYSTEM ACTUARIAL ASSUMPTION
25 CONFERENCE.--
26 (a) Duties.--The Florida Retirement System Actuarial
27 Assumption Conference shall by consensus develop official
28 information with respect to the economic and noneconomic
29 assumptions and funding methods of the Florida Retirement
30 System necessary to perform the study. Such information shall
31 include: an analysis of the actuarial assumptions and
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SB 2530 First Engrossed
1 actuarial methods and a determination of whether changes to
2 the assumptions or methods need to be made due to experience
3 changes or revised future forecasts.
4 (b) Principals.--The members of the conference shall
5 include the Executive Office of the Governor, the coordinator
6 of the Office of Economic and Demographic Research, and
7 professional staff of the Senate and House of Representatives
8 who have forecasting expertise, or their designees. The
9 Executive Office of the Governor shall have the responsibility
10 of presiding over the sessions of the conference. The State
11 Board of Administration and the Division of Retirement shall
12 be participants, as defined in s. 216.134, in the conference.
13 Section 24. This act shall take effect upon becoming a
14 law, except that the reenactment of subsection (6) of section
15 121.051, paragraph (a) of subsection (7) of section 121.052,
16 paragraph (a) of subsection (3) of section 121.055, subsection
17 (1) of section 121.071, subsection (12) of section 121.40, and
18 subsections (11) and (12) of section 413.051, Florida
19 Statutes, shall operate retroactively to June 7, 1996.
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