House Bill 2265

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    Florida House of Representatives - 2000                HB 2265

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





  1                      A bill to be entitled

  2         An act relating to agency reorganization;

  3         amending ss. 20.22, 20.28, 121.1905, and

  4         121.22, F.S., transferring the Division of

  5         Retirement and the State Retirement Commission

  6         from the Department of Management Services to

  7         the State Board of Administration; amending s.

  8         110.205, F.S., providing for status under the

  9         Career Service System; amending ss. 112.05,

10         112.3173, 112.352, 112.354, 112.356, 112.358,

11         112.361, 112.362, 112.363, 112.625, 112.63,

12         112.64, 112.658, 112.665, 121.021, 121.025,

13         121.031, 121.051, 121.0511, 121.0515, 121.052,

14         121.055, 121.071, 121.081, 121.091, 121.101,

15         121.111, 121.133, 121.135, 121.136, 121.1815,

16         121.192, 121.193, 121.23, 121.24, 121.30,

17         121.35, 121.40, 121.45, 122.02, 122.03, 122.05,

18         122.06, 122.07, 122.08, 122.09, 122.10, 122.12,

19         122.13, 122.15, 122.16, 122.23, 122.30, 122.34,

20         122.351, 175.032, 175.1215, 185.02, 185.105,

21         215.20, 215.28, 215.50, 238.01, 238.02, 238.03,

22         238.05, 238.07, 238.08, 238.09, 238.10, 238.11,

23         238.12, 238.14, 238.15, 238.171, 238.181,

24         238.32, and 650.02, F.S., correcting statutory

25         references, to conform; providing an effective

26         date.

27

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

29

30         Section 1.  Transfer of Division of Retirement and

31  State Retirement Commission.--The Division of Retirement and

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  1  the State Retirement Commission of the Department of

  2  Management Services, and all statutory powers, duties,

  3  functions, rules, records, personnel, property, and unexpended

  4  balances of appropriations, allocations, or other funds

  5  thereof, are transferred by a type one transfer, as defined in

  6  s. 20.06, Florida Statutes, to the State Board of

  7  Administration.

  8         Section 2.  Paragraphs (g) and (h) of subsection (2) of

  9  section 20.22, Florida Statutes, are amended to read:

10         20.22  Department of Management Services.--There is

11  created a Department of Management Services.

12         (2)  The following divisions and programs within the

13  Department of Management Services are established:

14         (g)  Division of Retirement.

15         (g)(h)  Division of State Group Insurance.

16         Section 3.  Section 20.28, Florida Statutes, is amended

17  to read:

18         20.28  State Board of Administration.--The State Board

19  of Administration, continued by s. 9, Art. XII of the State

20  Constitution, retains all of its powers, duties, and functions

21  as prescribed by law. Within the State Board of

22  Administration, there is established a Division of Retirement,

23  which shall be headed by a director appointed by the board.

24  The director shall be its agency head for all purposes in

25  reporting to the board.

26         Section 4.  Effective July 1, 2000, the administrative

27  rules of the Division of Retirement of the Department of

28  Management Services that were in effect immediately prior to

29  July 1, 2000, shall become rules of the Division of Retirement

30  of the State Board of Administration and shall remain in

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  1  effect until specifically changed in the manner provided by

  2  law.

  3         Section 5.  This act shall not affect the validity of

  4  any judicial or administrative action involving the Division

  5  of Retirement of the Department of Management Services pending

  6  on July 1, 2000, and the Division of Retirement of the State

  7  Board of Administration shall be substituted as a party in

  8  interest in any such action.

  9         Section 6.  Paragraph (t) of subsection (2) of section

10  110.205, Florida Statutes, is amended to read:

11         110.205  Career service; exemptions.--

12         (2)  EXEMPT POSITIONS.--The exempt positions which are

13  not covered by this part include the following, provided that

14  no position, except for positions established for a limited

15  period of time pursuant to paragraph (h), shall be exempted if

16  the position reports to a position in the career service:

17         (t)  All officers and employees of the State Board of

18  Administration and the Division of Retirement. The State Board

19  of Administration shall set the salaries and benefits of these

20  positions.

21         Section 7.  Paragraph (b) of subsection (4) of section

22  112.05, Florida Statutes, is amended to read:

23         112.05  Retirement; cost-of-living adjustment;

24  employment after retirement.--

25         (4)

26         (b)  Any person to whom the limitation in paragraph (a)

27  applies who violates such reemployment limitation and is

28  reemployed with any agency participating in the Florida

29  Retirement System prior to completion of the 12-month

30  limitation period shall give timely notice of this fact in

31  writing to the employer and to the Division of Retirement of

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  1  the State Board of Administration; and the person's retirement

  2  benefits shall be suspended for the balance of the 12-month

  3  limitation period.  Any person employed in violation of this

  4  subsection and any employing agency which knowingly employs or

  5  appoints such person without notifying the Division of

  6  Retirement Department of Management Services to suspend

  7  retirement benefits shall be jointly and severally liable for

  8  reimbursement to the retirement trust fund of any benefits

  9  paid during the reemployment limitation period.  To avoid

10  liability, such employing agency shall have a written

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

12  a state-administered retirement system.  Any retirement

13  benefits received by such person while reemployed during this

14  limitation period shall be repaid to the retirement trust

15  fund, and the retirement benefits shall remain suspended until

16  such repayment has been made. Any benefits suspended beyond

17  the reemployment limitation period shall apply toward the

18  repayment of benefits received in violation of the

19  reemployment limitation.

20         Section 8.  Paragraph (d) of subsection (4) of section

21  112.3173, Florida Statutes, is amended to read:

22         112.3173  Felonies involving breach of public trust and

23  other specified offenses by public officers and employees;

24  forfeiture of retirement benefits.--

25         (4)  NOTICE.--

26         (d)  The Commission on Ethics shall forward any notice

27  and any other document received by it pursuant to this

28  subsection to the governing body of the public retirement

29  system of which the public officer or employee is a member or

30  from which the public officer or employee may be entitled to

31  receive a benefit. When called on by the Commission on Ethics,

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  1  the Division of Retirement of the State Board of

  2  Administration Department of Management Services shall assist

  3  the commission in identifying the appropriate public

  4  retirement system.

  5         Section 9.  Subsection (7) of section 112.352, Florida

  6  Statutes, is amended to read:

  7         112.352  Definitions.--The following words and phrases

  8  as used in this act shall have the following meaning unless a

  9  different meaning is required by the context:

10         (7)  "Division Department" means the Division of

11  Retirement of the State Board of Administration Department of

12  Management Services.

13         Section 10.  Section 112.354, Florida Statutes, is

14  amended to read:

15         112.354  Eligibility for supplement.--Each retired

16  member or, if applicable, a joint annuitant, except any person

17  receiving survivor benefits under the teachers' retirement

18  system of the state in accordance with s. 238.07(16), shall be

19  entitled to receive a supplement computed in accordance with

20  s. 112.355 upon:

21         (1)  Furnishing to the division Department of

22  Management Services evidence from the Social Security

23  Administration setting forth the retired member's social

24  security benefit or certifying the noninsured status of the

25  retired member under the Social Security Act, and

26         (2)  Filing written application with the division

27  Department of Management Services for such supplement.

28         Section 11.  Section 112.356, Florida Statutes, is

29  amended to read:

30         112.356  Payment of supplement.--Any supplement due and

31  payable under this act shall be paid by the division

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  1  department or under the direction and control of the division

  2  department, based on information furnished by the retired

  3  member, or a joint annuitant, and the administrator of the

  4  system under which retirement benefits are being paid,

  5  beginning on the first day of the month coincident with or

  6  next following the later of the effective date of this act and

  7  the date of approval of the application for supplement by the

  8  division department, and payable thereafter on the first day

  9  of each month in the normal or optional form in which

10  retirement benefits under the applicable system are being

11  paid; provided, however, that if application for supplement is

12  made subsequent to December 31, 1967, not more than 6

13  retroactive monthly supplements shall be paid.

14         Section 12.  Section 112.358, Florida Statutes, is

15  amended to read:

16         112.358  Administration of system.--The division

17  Department of Management Services shall make such rules and

18  regulations as are necessary for the effective and efficient

19  administration of this act and the cost to pay the expenses of

20  such administration is hereby appropriated out of the

21  appropriate retirement fund.

22         Section 13.  Paragraph (g) of subsection (2) and

23  subsections (4), (6), and (8) of section 112.361, Florida

24  Statutes, are amended to read:

25         112.361  Additional and updated supplemental retirement

26  benefits.--

27         (2)  DEFINITIONS.--As used in this section, unless a

28  different meaning is required by the context:

29         (g)  "Division Department" means the Division of

30  Retirement of the State Board of Administration Department of

31  Management Services.

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  1         (4)  ELIGIBILITY FOR SUPPLEMENT.--Each retired member

  2  or, if applicable, a joint annuitant, except any person

  3  receiving survivor's benefits under the Teachers' Retirement

  4  System of the state in accordance with  s. 238.07(16), shall

  5  be entitled to receive a supplement computed in accordance

  6  with subsection (5), upon:

  7         (a)  Furnishing to the division department evidence

  8  from the Social Security Administration setting forth the

  9  retired member's social security benefit or certifying the

10  noninsured status of the retired member under the Social

11  Security Act, and

12         (b)  Filing written application with the division

13  department for such supplement.

14         (6)  PAYMENT OF SUPPLEMENT.--Any supplement due and

15  payable under this section shall be paid by the division

16  department or under the direction and control of the division

17  department, based on information furnished by the retired

18  member, or a joint annuitant, and the administrator of the

19  system under which retirement benefits are being paid,

20  beginning on the first day of the month coincident with or

21  next following the later of:

22         (a)  July 1, 1969, or

23         (b)  The date of approval of the application for

24  supplement by the division department,

25

26  and payable thereafter on the first day of each month in the

27  normal or optional form in which retirement benefits under the

28  applicable system are being paid. However, no retroactive

29  monthly supplements shall be paid for any period prior to the

30  date specified in this paragraph.

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  1         (8)  ADMINISTRATION OF SYSTEM.--The division department

  2  shall make such rules as are necessary for the effective and

  3  efficient administration of this section, and the cost to pay

  4  the expenses of such administration is hereby appropriated out

  5  of the appropriate fund pursuant to subsection (7).

  6         Section 14.  Paragraphs (a) and (b) of subsection (4)

  7  of section 112.362, Florida Statutes, are amended to read:

  8         112.362  Recomputation of retirement benefits.--

  9         (4)(a)  Effective July 1, 1980, any person who retired

10  prior to July 1, 1987, under a state-supported retirement

11  system with not less than 10 years of creditable service and

12  who is not receiving or entitled to receive federal social

13  security benefits shall, upon reaching 65 years of age and

14  upon application to the division Department of Management

15  Services, be entitled to receive a minimum monthly benefit

16  equal to $16.50 multiplied by the member's total number of

17  years of creditable service and adjusted by the actuarial

18  factor applied to the original benefit for optional forms of

19  retirement.  Thereafter, the minimum monthly benefit shall be

20  recomputed as provided in paragraph (5)(a). Application for

21  this minimum monthly benefit shall include certification by

22  the retired member that he or she is not receiving and is not

23  entitled to receive social security benefits and shall include

24  written authorization for the division Department of

25  Management Services to have access to information from the

26  Federal Social Security Administration concerning the member's

27  entitlement to or eligibility for social security benefits.

28  The minimum benefit provided by this paragraph shall not be

29  paid unless and until the application requirements of this

30  paragraph are satisfied.

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  1         (b)  Effective July 1, 1978, the surviving spouse or

  2  beneficiary who is receiving or entitled to receive a monthly

  3  benefit commencing prior to July 1, 1987, from the account of

  4  any deceased retired member who had completed at least 10

  5  years of creditable service shall, at the time such deceased

  6  retiree would have reached age 65, if living, and, upon

  7  application to the division Department of Management Services,

  8  be entitled to receive the minimum monthly benefit described

  9  in paragraph (a), adjusted by the actuarial factor applied to

10  the optional form of benefit payable to said surviving spouse

11  or beneficiary, provided said person is not receiving or

12  entitled to receive federal social security benefits.

13  Application for this minimum monthly benefit shall include

14  certification by the surviving spouse or beneficiary that he

15  or she is not receiving and is not entitled to receive social

16  security benefits and shall include written authorization for

17  the division Department of Management Services to have access

18  to information from the Federal Social Security Administration

19  concerning such person's entitlement to or eligibility for

20  social security benefits.  The minimum benefit provided by

21  this paragraph shall not be paid unless and until the

22  application requirements of this paragraph are satisfied.

23         Section 15.  Subsections (2), (4), (7), and (8) of

24  section 112.363, Florida Statutes, are amended to read:

25         112.363  Retiree health insurance subsidy.--

26         (2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

27  SUBSIDY.--A person who is retired under a state-administered

28  retirement system, or a beneficiary who is a spouse or

29  financial dependent entitled to receive benefits under a

30  state-administered retirement system, is eligible for health

31  insurance subsidy payments provided under this section; except

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  1  that pension recipients under ss. 121.40, 238.07(16)(a), and

  2  250.22, recipients of health insurance coverage under s.

  3  110.1232, or any other special pension or relief act shall not

  4  be eligible for such payments.  Payment of the retiree health

  5  insurance subsidy shall be made only after coverage for health

  6  insurance for the retiree or beneficiary has been certified in

  7  writing to the division Department of Management Services.

  8  Participation in a former employer's group health insurance

  9  program is not a requirement for eligibility under this

10  section. However, participants in the Senior Management

11  Service Optional Annuity Program as provided in s. 121.055(6)

12  and the State University System Optional Retirement Program as

13  provided in s. 121.35 shall not receive the retiree health

14  insurance subsidy provided in this section.  The employer of

15  such participant shall pay the contributions required in

16  subsection (8) to the annuity program provided in s.

17  121.055(6)(d) or s. 121.35(4)(a), as applicable.

18         (4)  PAYMENT OF RETIREE HEALTH INSURANCE

19  SUBSIDY.--Beginning January 1, 1988, any monthly retiree

20  health insurance subsidy amount due and payable under this

21  section shall be paid to retired members by the division

22  Department of Management Services or under the direction and

23  control of the division department.

24         (7)  ADMINISTRATION OF SYSTEM.--The division Department

25  of Management Services may adopt such rules and regulations as

26  are necessary for the effective and efficient administration

27  of this section. The cost of administration shall be

28  appropriated from the trust fund.

29         (8)  CONTRIBUTIONS.--For purposes of funding the

30  insurance subsidy provided by this section:

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  1         (a)  Beginning October 1, 1987, the employer of each

  2  member of a state-administered retirement plan shall

  3  contribute 0.24 percent of gross compensation each pay period.

  4         (b)  Beginning January 1, 1989, the employer of each

  5  member of a state-administered retirement plan shall

  6  contribute 0.48 percent of gross compensation each pay period.

  7         (c)  Beginning January 1, 1994, the employer of each

  8  member of a state-administered retirement plan shall

  9  contribute 0.56 percent of gross compensation each pay period.

10         (d)  Beginning January 1, 1995, the employer of each

11  member of a state-administered retirement plan shall

12  contribute 0.66 percent of gross compensation each pay period.

13         (e)  Beginning July 1, 1998, the employer of each

14  member of a state-administered retirement plan shall

15  contribute 0.94 percent of gross compensation each pay period.

16

17  Such contributions shall be submitted to the division

18  Department of Management Services and deposited in the Retiree

19  Health Insurance Subsidy Trust Fund.

20         Section 16.  Subsection (9) is added to section

21  112.625, Florida Statutes, to read:

22         112.625  Definitions.--As used in this act:

23         (9)  "Division" means the Division of Retirement of the

24  State Board of Administration.

25         Section 17.  Subsections (2) and (4) of section 112.63,

26  Florida Statutes, are amended to read:

27         112.63  Actuarial reports and statements of actuarial

28  impact; review.--

29         (2)  The frequency of actuarial reports must be at

30  least every 3 years commencing from the last actuarial report

31  of the plan or system or October 1, 1980, if no actuarial

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  1  report has been issued within the 3-year period prior to

  2  October 1, 1979. The results of each actuarial report shall be

  3  filed with the plan administrator within 60 days of

  4  certification. Thereafter, the results of each actuarial

  5  report shall be made available for inspection upon request.

  6  Additionally, each retirement system or plan covered by this

  7  act which is not administered directly by the division

  8  Department of Management Services shall furnish a copy of each

  9  actuarial report to the division Department of Management

10  Services within 60 days after receipt from the actuary. The

11  requirements of this section are supplemental to actuarial

12  valuations necessary to comply with the requirements of ss.

13  11.45 and 218.32.

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

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

16  of a statement of actuarial impact, the division Department of

17  Management Services shall acknowledge such receipt, but shall

18  only review and comment on each retirement system's or plan's

19  actuarial valuations at least on a triennial basis.  If the

20  division department finds that the actuarial valuation is not

21  complete, accurate, or based on reasonable assumptions, or if

22  the division department does not receive the actuarial report

23  or statement of actuarial impact, the division department

24  shall notify the local government and request appropriate

25  adjustment. If, after a reasonable period of time, a

26  satisfactory adjustment is not made, the affected local

27  government or the division department may petition for a

28  hearing under the provisions of ss. 120.569 and 120.57. If the

29  administrative law judge recommends in favor of the division

30  department, the division department shall perform an actuarial

31  review or prepare the statement of actuarial impact. The cost

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  1  to the division department of performing such actuarial review

  2  or preparing such statement shall be charged to the

  3  governmental entity of which the employees are covered by the

  4  retirement system or plan.  If payment of such costs is not

  5  received by the division department within 60 days after

  6  receipt by the governmental entity of the request for payment,

  7  the division department shall certify to the Comptroller the

  8  amount due, and the Comptroller shall pay such amount to the

  9  division department from any funds payable to the governmental

10  entity of which the employees are covered by the retirement

11  system or plan.  If the administrative law judge recommends in

12  favor of the local retirement system and the division

13  department performs an actuarial review, the cost to the

14  division department of performing the actuarial review shall

15  be paid by the division department.

16         Section 18.  Subsection (1) of section 112.64, Florida

17  Statutes, is amended to read:

18         112.64  Administration of funds; amortization of

19  unfunded liability.--

20         (1)  Employee contributions shall be deposited in the

21  retirement system or plan at least monthly. Employer

22  contributions shall be deposited at least quarterly; however,

23  any revenues received from any source by an employer which are

24  specifically collected for the purpose of allocation for

25  deposit into a retirement system or plan shall be so deposited

26  within 30 days of receipt by the employer.  All employers and

27  employees participating in the Florida Retirement System and

28  other existing retirement systems which are administered by

29  the division Department of Management Services shall continue

30  to make contributions at least monthly.

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  1         Section 19.  Subsections (1) and (3) of section

  2  112.658, Florida Statutes, are amended to read:

  3         112.658  Office of Program Policy Analysis and

  4  Government Accountability to determine compliance of the

  5  Florida Retirement System.--

  6         (1)  The Office of Program Policy Analysis and

  7  Government Accountability shall determine, through the

  8  examination of actuarial reviews, financial statements, and

  9  the practices and procedures of the division Department of

10  Management Services, the compliance of the Florida Retirement

11  System with the provisions of this act.

12         (3)  The Office of Program Policy Analysis and

13  Government Accountability shall employ the same actuarial

14  standards to monitor the division Department of Management

15  Services as the division Department of Management Services

16  uses to monitor local governments.

17         Section 20.  Section 112.665, Florida Statutes, is

18  amended to read:

19         112.665  Duties of Division of Retirement Department of

20  Management Services.--

21         (1)  The division Department of Management Services

22  shall:

23         (a)  Gather, catalog, and maintain complete,

24  computerized data information on all public employee

25  retirement systems or plans in the state, based upon a review

26  of audits, reports, and other data pertaining to the systems

27  or plans;

28         (b)  Receive and comment upon all actuarial reviews of

29  retirement systems or plans maintained by units of local

30  government;

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  1         (c)  Cooperate with local retirement systems or plans

  2  on matters of mutual concern and provide technical assistance

  3  to units of local government in the assessment and revision of

  4  retirement systems or plans;

  5         (d)  Issue, by January 1 annually, a report to the

  6  President of the Senate and the Speaker of the House of

  7  Representatives, which report details division activities,

  8  findings, and recommendations concerning all governmental

  9  retirement systems. The report may include legislation

10  proposed to carry out such recommendations;

11         (e)  Issue, by January 1 annually, a report to the

12  Special District Information Program of the Department of

13  Community Affairs that includes the participation in and

14  compliance of special districts with the local government

15  retirement system provisions in s. 112.63 and the

16  state-administered retirement system provisions as specified

17  in chapter 121; and

18         (f)  Adopt reasonable rules to administer the

19  provisions of this part.

20         (2)  The division department may subpoena actuarial

21  witnesses, review books and records, hold hearings, and take

22  testimony.  A witness shall have the right to be accompanied

23  by counsel.

24         Section 21.  Subsections (4), (5), and (32) of section

25  121.021, Florida Statutes, are amended to read:

26         121.021  Definitions.--The following words and phrases

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

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

29         (4)  "Division Department" means the Division of

30  Retirement of the State Board of Administration Department of

31  Management Services.

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  1         (5)  "Administrator" means the director secretary of

  2  the Division of Retirement Department of Management Services.

  3         (32)  "State agency" means the Division of Retirement

  4  Department of Management Services within the provisions and

  5  contemplation of chapter 650.

  6         Section 22.  Section 121.025, Florida Statutes, is

  7  amended to read:

  8         121.025  Administrator; powers and duties.--The

  9  director secretary of the Division of Retirement Department of

10  Management Services shall be the administrator of the

11  retirement and pension systems assigned or transferred to the

12  division Department of Management Services by law and shall

13  have the authority to sign the contracts necessary to carry

14  out the duties and responsibilities assigned by law to the

15  division Department of Management Services.

16         Section 23.  Subsections (1), (2), and (5) of section

17  121.031, Florida Statutes, are amended to read:

18         121.031  Administration of system; appropriation;

19  oaths; actuarial studies; public records.--

20         (1)  The division Department of Management Services has

21  the authority to adopt rules pursuant to ss. 120.536(1) and

22  120.54 to implement the provisions of law conferring duties

23  upon the division and to adopt rules as are necessary for the

24  effective and efficient administration of this system. The

25  funds to pay the expenses for administration of the system are

26  hereby appropriated from the interest earned on investments

27  made for the retirement and social security trust funds and

28  the assessments allowed under chapter 650.

29         (2)  The division Department of Management Services is

30  authorized to require oaths, by affidavit or otherwise, and

31  acknowledgments from persons in connection with the

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  1  administration of its duties and responsibilities under this

  2  chapter.

  3         (5)  The names and addresses of retirees are

  4  confidential and exempt from the provisions of s. 119.07(1) to

  5  the extent that no state or local governmental agency may

  6  provide the names or addresses of such persons in aggregate,

  7  compiled, or list form to any person except to a public agency

  8  engaged in official business.  However, a state or local

  9  government agency may provide the names and addresses of

10  retirees from that agency to a bargaining agent as defined in

11  s. 447.203(12) or to a retiree organization for official

12  business use.  Lists of names or addresses of retirees may be

13  exchanged by public agencies, but such lists shall not be

14  provided to, or open for inspection by, the public.  Any

15  person may view or copy any individual's retirement records at

16  the division Department of Management Services, one record at

17  a time, or may obtain information by a separate written

18  request for a named individual for which information is

19  desired.

20         Section 24.  Paragraph (c) of subsection (1) and

21  paragraphs (b) and (f) of subsection (2) of section 121.051,

22  Florida Statutes, are amended to read:

23         121.051  Participation in the system.--

24         (1)  COMPULSORY PARTICIPATION.--

25         (c)1.  After June 30, 1983, a member of an existing

26  system who is reemployed after terminating employment shall

27  have at the time of reemployment the option of selecting to

28  remain in the existing retirement system or to transfer to the

29  Florida Retirement System.  Failure to submit such selection

30  in writing to the division Department of Management Services

31

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  1  within 6 months of reemployment shall result in compulsory

  2  membership in the Florida Retirement System.

  3         2.  After June 30, 1988, the provisions of subparagraph

  4  1. shall not apply to a member of an existing system who is

  5  reemployed within 12 months after terminating employment. Such

  6  member shall continue to have membership in the existing

  7  system upon reemployment and shall not be permitted to become

  8  a member of the Florida Retirement System, except by

  9  transferring to that system as provided in ss. 121.052 and

10  121.055.

11         (2)  OPTIONAL PARTICIPATION.--

12         (b)1.  The governing body of any municipality or

13  special district in the state may elect to participate in the

14  system upon proper application to the administrator and may

15  cover all or any of its units as approved by the Secretary of

16  Health and Human Services and the administrator. Prior to

17  being approved for participation in the Florida Retirement

18  System, the governing body of any such municipality or special

19  district that has a local retirement system shall submit to

20  the administrator a certified financial statement showing the

21  condition of the local retirement system as of a date within 3

22  months prior to the proposed effective date of membership in

23  the Florida Retirement System. The statement must be certified

24  by a recognized accounting firm that is independent of the

25  local retirement system. All required documents necessary for

26  extending Florida Retirement System coverage must be received

27  by the division department for consideration at least 15 days

28  prior to the proposed effective date of coverage. If the

29  municipality or special district does not comply with this

30  requirement, the division department may require that the

31  effective date of coverage be changed.

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  1         2.  Any city or special district that has an existing

  2  retirement system covering the employees in the units that are

  3  to be brought under the Florida Retirement System may

  4  participate only after holding a referendum in which all

  5  employees in the affected units have the right to participate.

  6  Only those employees electing coverage under the Florida

  7  Retirement System by affirmative vote in said referendum shall

  8  be eligible for coverage under this chapter, and those not

  9  participating or electing not to be covered by the Florida

10  Retirement System shall remain in their present systems and

11  shall not be eligible for coverage under this chapter. After

12  the referendum is held, all future employees shall be

13  compulsory members of the Florida Retirement System.

14         3.  The governing body of any city or special district

15  complying with subparagraph 1. may elect to provide, or not

16  provide, benefits based on past service of officers and

17  employees as described in s. 121.081(1). However, if such

18  employer elects to provide past service benefits, such

19  benefits must be provided for all officers and employees of

20  its covered group.

21         4.  Once this election is made and approved it may not

22  be revoked, except pursuant to subparagraphs 5. and 6., and

23  all present officers and employees electing coverage under

24  this chapter and all future officers and employees shall be

25  compulsory members of the Florida Retirement System.

26         5.  Subject to the conditions set forth in subparagraph

27  6., the governing body of any hospital licensed under chapter

28  395 which is governed by the board of a special district as

29  defined in s. 189.403(1) or by the board of trustees of a

30  public health trust created under s. 154.07, hereinafter

31  referred to as "hospital district," and which participates in

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  1  the system, may elect to cease participation in the system

  2  with regard to future employees in accordance with the

  3  following procedure:

  4         a.  No more than 30 days and at least 7 days before

  5  adopting a resolution to partially withdraw from the Florida

  6  Retirement System and establish an alternative retirement plan

  7  for future employees, a public hearing must be held on the

  8  proposed withdrawal and proposed alternative plan.

  9         b.  From 7 to 15 days before such hearing, notice of

10  intent to withdraw, specifying the time and place of the

11  hearing, must be provided in writing to employees of the

12  hospital district proposing partial withdrawal and must be

13  published in a newspaper of general circulation in the area

14  affected, as provided by ss. 50.011-50.031.  Proof of

15  publication of such notice shall be submitted to the division

16  Department of Management Services.

17         c.  The governing body of any hospital district seeking

18  to partially withdraw from the system must, before such

19  hearing, have an actuarial report prepared and certified by an

20  enrolled actuary, as defined in s. 112.625(3), illustrating

21  the cost to the hospital district of providing, through the

22  retirement plan that the hospital district is to adopt,

23  benefits for new employees comparable to those provided under

24  the Florida Retirement System.

25         d.  Upon meeting all applicable requirements of this

26  subparagraph, and subject to the conditions set forth in

27  subparagraph 6., partial withdrawal from the system and

28  adoption of the alternative retirement plan may be

29  accomplished by resolution duly adopted by the hospital

30  district board.  The hospital district board must provide

31  written notice of such withdrawal to the division by mailing a

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  1  copy of the resolution to the division, postmarked no later

  2  than December 15, 1995.  The withdrawal shall take effect

  3  January 1, 1996.

  4         6.  Following the adoption of a resolution under

  5  sub-subparagraph 5.d., all employees of the withdrawing

  6  hospital district who were participants in the Florida

  7  Retirement System prior to January 1, 1996, shall remain as

  8  participants in the system for as long as they are employees

  9  of the hospital district, and all rights, duties, and

10  obligations between the hospital district, the system, and the

11  employees shall remain in full force and effect. Any employee

12  who is hired or appointed on or after January 1, 1996, may not

13  participate in the Florida Retirement System, and the

14  withdrawing hospital district shall have no obligation to the

15  system with respect to such employees.

16         (f)  Whenever an employer that participates in the

17  Florida Retirement System undertakes the transfer, merger, or

18  consolidation of governmental services or functions, the

19  employer must notify the division department at least 60 days

20  prior to such action and shall provide documentation as

21  required by the division department.

22         Section 25.  Subsection (2) of section 121.0511,

23  Florida Statutes, is amended to read:

24         121.0511  Revocation of election and alternative

25  plan.--The governing body of any municipality or independent

26  special district that has elected to participate in the

27  Florida Retirement System may revoke its election in

28  accordance with the following procedure:

29         (2)  At least 7 days, but not more than 15 days, before

30  the hearing, notice of intent to revoke, specifying the time

31  and place of the hearing, must be published in a newspaper of

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  1  general circulation in the area affected, as provided by ss.

  2  50.011-50.031. Proof of publication of the notice must be

  3  submitted to the division Department of Management Services.

  4         Section 26.  Subsections (3) and (4) and paragraph (c)

  5  of subsection (7) of section 121.0515, Florida Statutes, are

  6  amended to read:

  7         121.0515  Special risk membership; criteria;

  8  designation and removal of classification; credits for past

  9  service and prior service; retention of special risk normal

10  retirement date.--

11         (3)  PROCEDURE FOR DESIGNATING.--

12         (a)  Any member of the Florida Retirement System

13  employed by a county, city, or special district who feels that

14  he or she meets the criteria set forth in this section for

15  membership in the Special Risk Class may request that his or

16  her employer submit an application to the division department

17  requesting that the division department designate him or her

18  as a special risk member.  If the employer agrees that the

19  member meets the requirements for special risk membership, the

20  employer shall submit an application to the division

21  department in behalf of the employee containing a

22  certification that the member meets the criteria for special

23  risk membership set forth in this section and such other

24  supporting documentation as may be required by administrative

25  rule.  The division department shall, within 90 days, either

26  designate or refuse to designate the member as a special risk

27  member.  If the employer declines to submit the member's

28  application to the division department or if the division

29  department does not designate the member as a special risk

30  member, the member or the employer may appeal to the State

31  Retirement Commission, as provided in s. 121.23, for

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  1  designation as a special risk member. A member who receives a

  2  final affirmative ruling pursuant to such appeal for special

  3  risk membership shall have special risk membership retroactive

  4  to the date such member would have had special risk membership

  5  had such membership been approved by the employer and the

  6  division department, as determined by the division department,

  7  and the employer contributions shall be paid in full within 1

  8  year after such final ruling.

  9         (b)1.  Applying the criteria set forth in this section,

10  the division Department of Management Services shall specify

11  which current and newly created classes of positions under the

12  uniform classification plan established pursuant to chapter

13  110 entitle the incumbents of positions in those classes to

14  membership in the Special Risk Class.  Only employees employed

15  in the classes so specified shall be special risk members.

16         2.  When a class is not specified by the division

17  department as provided in subparagraph 1., the employing

18  agency may petition the State Retirement Commission for

19  approval in accordance with s. 121.23.

20         (4)  REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member

21  who is a special risk member on October 1, 1978, and who fails

22  to meet the criteria for special risk membership established

23  by this section shall have his or her special risk designation

24  removed and thereafter shall be a regular member and shall

25  earn only regular membership credit.  The division department

26  shall have the authority to review the special risk

27  designation of members to determine whether or not those

28  members continue to meet the criteria for special risk

29  membership.

30         (7)  RETENTION OF SPECIAL RISK NORMAL RETIREMENT

31  DATE.--

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  1         (c)  The division department shall adopt such rules as

  2  are required to administer this subsection.

  3         Section 27.  Paragraph (e) of subsection (3) of section

  4  121.052, Florida Statutes, is amended to read:

  5         121.052  Membership class of elected officers.--

  6         (3)  PARTICIPATION AND WITHDRAWAL,

  7  GENERALLY.--Effective July 1, 1990, participation in the

  8  Elected Officers' Class shall be compulsory for elected

  9  officers listed in paragraphs (2)(a)-(d) and (f) assuming

10  office on or after said date, unless the elected officer

11  elects membership in another class or withdraws from the

12  Florida Retirement System as provided in paragraphs

13  (3)(a)-(d):

14         (e)  Effective July 1, 1997, the governing body of a

15  municipality or special district may, by majority vote, elect

16  to designate all its elected positions for inclusion in the

17  Elected Officers' Class. Such election shall be made between

18  July 1, 1997, and December 31, 1997, and shall be irrevocable.

19  The designation of such positions shall be effective the first

20  day of the month following receipt by the division department

21  of the ordinance or resolution passed by the governing body.

22         Section 28.  Paragraphs (b) and (h) of subsection (1)

23  and paragraphs (a), (c), (d), and (f) of subsection (6) of

24  section 121.055, Florida Statutes, are amended to read:

25         121.055  Senior Management Service Class.--There is

26  hereby established a separate class of membership within the

27  Florida Retirement System to be known as the "Senior

28  Management Service Class," which shall become effective

29  February 1, 1987.

30         (1)

31

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  1         (b)1.  Except as provided in subparagraph 2., effective

  2  January 1, 1990, participation in the Senior Management

  3  Service Class shall be compulsory for the president of each

  4  community college, the manager of each participating city or

  5  county, and all appointed district school superintendents.

  6  Effective January 1, 1994, additional positions may be

  7  designated for inclusion in the Senior Management Service

  8  Class of the Florida Retirement System, provided that:

  9         a.  Positions to be included in the class shall be

10  designated by the local agency employer.  Notice of intent to

11  designate positions for inclusion in the class shall be

12  published once a week for 2 consecutive weeks in a newspaper

13  of general circulation published in the county or counties

14  affected, as provided in chapter 50.

15         b.  Up to 10 One nonelective full-time positions

16  position may be designated for each local agency employer

17  reporting to the Department of Management Services; for local

18  agencies with 100 or more regularly established positions,

19  additional nonelective full-time positions may be designated,

20  not to exceed 1 percent of the regularly established positions

21  within the agency.

22         c.  Each position added to the class must be a

23  managerial or policymaking position filled by an employee who

24  is not subject to continuing contract and serves at the

25  pleasure of the local agency employer without civil service

26  protection, and who:

27         (I)  Heads an organizational unit; or

28         (II)  Has responsibility to effect or recommend

29  personnel, budget, expenditure, or policy decisions in his or

30  her areas of responsibility.

31

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  1         2.  In lieu of participation in the Senior Management

  2  Service Class, members of the Senior Management Service Class

  3  pursuant to the provisions of subparagraph 1. may withdraw

  4  from the Florida Retirement System altogether. The decision to

  5  withdraw from the Florida Retirement System shall be

  6  irrevocable for as long as the employee holds such a position.

  7  Any service creditable under the Senior Management Service

  8  Class shall be retained after the member withdraws from the

  9  Florida Retirement System; however, additional service credit

10  in the Senior Management Service Class shall not be earned

11  after such withdrawal.  Such members shall not be eligible to

12  participate in the Senior Management Service Optional Annuity

13  Program.

14         (h)1.  Except as provided in subparagraph 3., effective

15  January 1, 1994, participation in the Senior Management

16  Service Class shall be compulsory for the State Courts

17  Administrator and the Deputy State Courts Administrators, the

18  Clerk of the Supreme Court, the Marshal of the Supreme Court,

19  the Executive Director of the Justice Administrative

20  Commission, the Capital Collateral Representative, the clerks

21  of the district courts of appeals, the marshals of the

22  district courts of appeals, and the trial court administrator

23  in each judicial circuit. Effective January 1, 1994,

24  additional positions in the offices of the state attorney and

25  public defender in each judicial circuit may be designated for

26  inclusion in the Senior Management Service Class of the

27  Florida Retirement System, provided that:

28         a.  Positions to be included in the class shall be

29  designated by the state attorney or public defender, as

30  appropriate.  Notice of intent to designate positions for

31  inclusion in the class shall be published once a week for 2

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  1  consecutive weeks in a newspaper of general circulation

  2  published in the county or counties affected, as provided in

  3  chapter 50.

  4         b.  One nonelective full-time position may be

  5  designated for each state attorney and public defender

  6  reporting to the division Department of Management Services;

  7  for agencies with 200 or more regularly established positions

  8  under the state attorney or public defender, additional

  9  nonelective full-time positions may be designated, not to

10  exceed 0.5 percent of the regularly established positions

11  within the agency.

12         c.  Each position added to the class must be a

13  managerial or policymaking position filled by an employee who

14  serves at the pleasure of the state attorney or public

15  defender without civil service protection, and who:

16         (I)  Heads an organizational unit; or

17         (II)  Has responsibility to effect or recommend

18  personnel, budget, expenditure, or policy decisions in his or

19  her areas of responsibility.

20         2.  Participation in this class shall be compulsory,

21  except as provided in subparagraph 3., for any judicial

22  employee who holds a position designated for coverage in the

23  Senior Management Service Class, and such participation shall

24  continue until the employee terminates employment in a covered

25  position.

26         3.  In lieu of participation in the Senior Management

27  Service Class, such members may participate in the Senior

28  Management Service Optional Annuity Program as established in

29  subsection (6).

30         (6)(a)  Senior Management Service Optional Annuity

31  Program.--The division Department of Management Services shall

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  1  establish a Senior Management Service Optional Annuity Program

  2  under which contracts providing retirement, death, and

  3  disability benefits may be purchased for those employees who

  4  elect to participate in the optional annuity program.  The

  5  benefits to be provided for or on behalf of participants in

  6  such optional annuity program shall be provided through

  7  individual contracts or individual certificates issued for

  8  group annuity contracts, which may be fixed, variable, or a

  9  combination thereof, in accordance with s. 401(a) of the

10  Internal Revenue Code.  Any such individual contract or

11  certificate shall state the annuity plan on its face page, and

12  shall include, but not be limited to, a statement of

13  ownership, the contract benefits, annuity income options,

14  limitations, expense charges, and surrender charges, if any.

15  The employing agency shall contribute, as provided in this

16  section, toward the purchase of such optional benefits which

17  shall be fully and immediately vested in the participants.

18         (c)  Participation.--

19         1.  Any eligible employee who is employed on or before

20  February 1, 1987, may elect to participate in the optional

21  annuity program in lieu of participation in the Senior

22  Management Service Class.  Such election shall be made in

23  writing and filed with the division department and the

24  personnel officer of the employer on or before May 1, 1987.

25  Any eligible employee who is employed on or before February 1,

26  1987, and who fails to make an election to participate in the

27  optional annuity program by May 1, 1987, shall be deemed to

28  have elected membership in the Senior Management Service

29  Class.

30         2.  Any employee who becomes eligible to participate in

31  the optional annuity program by reason of initial employment

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  1  commencing after February 1, 1987, may, within 90 days after

  2  the date of commencement of employment, elect to participate

  3  in the optional annuity program.  Such election shall be made

  4  in writing and filed with the personnel officer of the

  5  employer.  Any eligible employee who does not within 90 days

  6  after commencement of such employment elect to participate in

  7  the optional annuity program shall be deemed to have elected

  8  membership in the Senior Management Service Class.

  9         3.  A person who is appointed to a position in the

10  Senior Management Service Class and who is a member of an

11  existing retirement system or the Special Risk or Special Risk

12  Administrative Support Classes of the Florida Retirement

13  System may elect to remain in such system or class in lieu of

14  participation in the Senior Management Service Class or

15  optional annuity program. Such election shall be made in

16  writing and filed with the division department and the

17  personnel officer of the employer within 90 days of such

18  appointment. Any eligible employee who fails to make an

19  election to participate in the existing system, the Special

20  Risk Class of the Florida Retirement System, the Special Risk

21  Administrative Support Class of the Florida Retirement System,

22  or the optional annuity program shall be deemed to have

23  elected membership in the Senior Management Service Class.

24         4.  An employee's election to participate in the

25  optional annuity program is irrevocable as long as such

26  employee continues to be employed in an eligible position and

27  continues to meet the eligibility requirements set forth in

28  this paragraph.

29         (d)  Contributions.--

30         1.  Each employer shall contribute on behalf of each

31  participant in the Senior Management Service Optional Annuity

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  1  Program an amount equal to the normal cost portion of the

  2  employer retirement contribution which would be required if

  3  the participant were a Senior Management Service Class member

  4  of the Florida Retirement System, plus the portion of the

  5  contribution rate required in s. 112.363(8) that would

  6  otherwise be assigned to the Retiree Health Insurance Subsidy

  7  Trust Fund, less an amount approved by the Legislature which

  8  shall be deducted by the division department to provide for

  9  the administration of this program. The payment of the

10  contributions to the optional program which is required by

11  this subparagraph for each participant shall be made by the

12  employer to the division department, which shall forward the

13  contributions to the designated company or companies

14  contracting for payment of benefits for the participant under

15  the program.

16         2.  Each employer shall contribute on behalf of each

17  participant in the Senior Management Service Optional Annuity

18  Program an amount equal to the unfunded actuarial accrued

19  liability portion of the employer contribution which would be

20  required for members of the Senior Management Service Class in

21  the Florida Retirement System.  This contribution shall be

22  paid to the division department for transfer to the Florida

23  Retirement System Trust Fund.

24         3.  An Optional Annuity Program Trust Fund shall be

25  established in the State Treasury and administered by the

26  division department to make payments to provider companies on

27  behalf of the optional annuity program participants, and to

28  transfer the unfunded liability portion of the state optional

29  annuity program contributions to the Florida Retirement System

30  Trust Fund.

31

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  1         4.  Contributions required for social security by each

  2  employer and each participant, in the amount required for

  3  social security coverage as now or hereafter may be provided

  4  by the federal Social Security Act shall be maintained for

  5  each participant in the Senior Management Service retirement

  6  program and shall be in addition to the retirement

  7  contributions specified in this paragraph.

  8         5.  Each participant in the Senior Management Service

  9  Optional Annuity Program may contribute by way of salary

10  reduction or deduction a percentage amount of the

11  participant's gross compensation not to exceed the percentage

12  amount contributed by the employer to the optional annuity

13  program. Payment of the participant's contributions shall be

14  made by the employer to the division department, which shall

15  forward the contributions to the designated company or

16  companies contracting for payment of benefits for the

17  participant under the program.

18         (f)  Administration.--

19         1.  The Senior Management Service Optional Annuity

20  Program authorized by this section shall be administered by

21  the division department.  The division department shall

22  designate one or more provider companies from which annuity

23  contracts may be purchased under the program and shall approve

24  the form and content of the contracts. The division department

25  shall sign a contract with each of the provider companies and

26  shall evaluate the performance of the provider companies on a

27  continuing basis. The division department may terminate the

28  services of a provider company for reasons stated in the

29  contract. The division department shall adopt rules

30  establishing its responsibilities and the responsibilities of

31  employers in administering the optional annuity program.

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  1         2.  Effective July 1, 1997, the State Board of

  2  Administration shall review and make recommendations to the

  3  division department on the acceptability of all investment

  4  products proposed by provider companies of the optional

  5  annuity program before such products are offered through

  6  annuity contracts to the participants and may advise the

  7  division department of any changes deemed necessary to ensure

  8  that the optional annuity program offers an acceptable mix of

  9  investment products. The division department shall make the

10  final determination as to whether an investment product will

11  be approved for the program.

12         3.  The provisions of each contract applicable to a

13  participant in the Senior Management Service Optional Annuity

14  Program shall be contained in a written program description

15  which shall include a report of pertinent financial and

16  actuarial information on the solvency and actuarial soundness

17  of the program and the benefits applicable to the participant.

18  Such description shall be furnished by the company or

19  companies to each participant in the program and to the

20  division department upon commencement of participation in the

21  program and annually thereafter.

22         4.  The division department shall ensure that each

23  participant in the Senior Management Service Optional Annuity

24  Program is provided an accounting of the total contribution

25  and the annual contribution made by and on behalf of such

26  participants.

27         Section 29.  Subsection (5) of section 121.071, Florida

28  Statutes, is amended to read:

29         121.071  Contributions.--Contributions to the system

30  shall be made as follows:

31

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  1         (5)  Contributions made in accordance with subsections

  2  (1), (2), (3), and (4) shall be paid by the employer into the

  3  system trust funds in accordance with rules adopted by the

  4  administrator pursuant to chapter 120. Such contributions are

  5  due and payable no later than the 25th day of the month

  6  immediately following the month during which the payroll

  7  period ended. The division department may, by rule, establish

  8  a different due date, which shall supersede the date specified

  9  herein; however, such due date may not be established earlier

10  than the 20th day of the month immediately following the month

11  during which the payroll period ended. Effective January 1,

12  1984, contributions made in accordance with subsection (3)

13  shall be paid by the employer into the system trust fund in

14  accordance with rules adopted by the administrator pursuant to

15  chapter 120.  For any payroll period ending any day of the

16  month before the 16th day of the month, such contributions are

17  due and payable no later than the 20th day of the month; and,

18  for any payroll periods ending any day of the month after the

19  15th day of the month, such contributions are due and payable

20  no later than the 5th day of the next month. Contributions

21  received in the offices of the division department after the

22  prescribed date shall be considered delinquent unless, in the

23  opinion of the division department, exceptional circumstances

24  beyond an employer's control prevented remittance by the

25  prescribed due date notwithstanding such employer's good faith

26  efforts to effect delivery; and, with respect to retirement

27  contributions due under subsections (1) and (4), each employer

28  shall be assessed a delinquent fee of 1 percent of the

29  contributions due for each calendar month or part thereof that

30  the contributions are delinquent. Such a waiver of the

31  delinquency fee by the division department may be granted an

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  1  employer only one time each fiscal year. Delinquent social

  2  security contributions shall be assessed a delinquent fee as

  3  authorized by s. 650.05(4).  The delinquent fee assessable for

  4  an employer's first delinquency after July 1, 1984, shall be

  5  as specified in s. 650.05(4), and, beginning with the second

  6  delinquency in any fiscal year by the employer subsequent to

  7  July 1, 1984, all subsequent delinquency fees shall be

  8  assessed against the employer at twice the applicable

  9  percentage rate specified in s. 650.05(4).

10         Section 30.  Paragraph (h) of subsection (1) and

11  paragraph (e) of subsection (2) of section 121.081, Florida

12  Statutes, are amended to read:

13         121.081  Past service; prior service;

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

15  service may be claimed and credited are:

16         (1)

17         (h)  The following provisions apply to the purchase of

18  past service:

19         1.  Notwithstanding any of the provisions of this

20  subsection, past-service credit may not be purchased under

21  this chapter for any service that is used to obtain a benefit

22  from any local retirement system.

23         2.  A member may not receive past service credit under

24  paragraphs (a), (b), (e), or (f) for any leaves of absence

25  without pay, except that credit for active military service

26  leaves of absence may be claimed under paragraphs (a), (b),

27  and (f), in accordance with s. 121.111(1).

28         3.  If a member does not desire to receive credit for

29  all of his or her past service, the period the member claims

30  must be the most recent past service prior to his or her

31  participation in the Florida Retirement System.

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  1         4.  The cost of past service purchased by an employing

  2  agency for its employees may be amortized over such period of

  3  time as is provided in the agreement, but not to exceed 15

  4  years, calculated in accordance with rule 60S-1.007(5)(f),

  5  Florida Administrative Code.

  6         5.  The retirement account of each member for whom past

  7  service is being provided by his or her employer shall be

  8  credited with all past service the employer agrees to purchase

  9  as soon as the agreement between the employer and the division

10  department is executed. Pursuant thereto:

11         a.  Each such member's account shall also be posted

12  with the total contribution his or her employer agrees to make

13  in the member's behalf for past service earned prior to

14  October 1, 1975, excluding those contributions representing

15  the employer's matching share and the compound interest

16  calculation on the total contribution. However, a portion of

17  any contributions paid by an employer for past service credit

18  earned on and after October 1, 1975, may not be posted to a

19  member's account.

20         b.  A refund of contributions payable after an employer

21  has made a written agreement to purchase past service for

22  employees of the covered group shall include contributions for

23  past service which are posted to a member's account. However,

24  contributions for past service earned on and after October 1,

25  1975, are not refundable.

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

27  be claimed as creditable service under the Florida Retirement

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

29  of creditable service within a period of 12 consecutive

30  months, except as provided in paragraph (c). Service performed

31  as a participant of the optional retirement program for the

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  1  State University System under s. 121.35 or the Senior

  2  Management Service Optional Annuity Program under s. 121.055

  3  may be used to satisfy the reemployment requirement of 1

  4  complete year of creditable service.  The member shall not be

  5  permitted to make any contributions for prior service until

  6  after completion of the 1 year of creditable service. The

  7  required contributions for claiming the various types of prior

  8  service are:

  9         (e)  For service performed under the Florida Retirement

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

11  division or the department due to error, retirement credit may

12  be claimed by a member of the Florida Retirement System. The

13  division department shall adopt rules establishing criteria

14  for claiming such credit and detailing the documentation

15  required to substantiate the error.

16         Section 31.  Paragraph (b) of subsection (14) of

17  section 121.091, Florida Statutes, is amended to read:

18         121.091  Benefits payable under the system.--Benefits

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

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

21  begun participation in the Deferred Retirement Option Program

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

23  been filed in the manner prescribed by the division

24  department. The division department may cancel an application

25  for retirement benefits when the member or beneficiary fails

26  to timely provide the information and documents required by

27  this chapter and the division's department's rules. The

28  division department shall adopt rules establishing procedures

29  for application for retirement benefits and for the

30  cancellation of such application when the required information

31  or documents are not received.

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

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

  3  under the Florida Retirement System:

  4         (b)  Subject to approval by the division in accordance

  5  with rule 60S-4.015, Florida Administrative Code, a payee

  6  receiving retirement benefits under the Florida Retirement

  7  System may also have the following payments deducted from his

  8  or her monthly benefit:

  9         1.  Premiums for life and health-related insurance

10  policies from approved companies.

11         2.  Life insurance premiums for the State Group Life

12  Insurance Plan, if authorized in writing by the payee and by

13  the Division of Retirement Department of Management Services.

14         3.  Repayment of overpayments from the Florida

15  Retirement System Trust Fund, the State Employees' Health

16  Insurance Trust Fund, or the State Employees' Life Insurance

17  Trust Fund, upon notification of the payee.

18         4.  Payments to an alternate payee for alimony, child

19  support, or division of marital assets pursuant to a qualified

20  domestic relations order under s. 222.21 or an income

21  deduction order under s. 61.1301.

22         5.  Payments to the Internal Revenue Service for

23  federal income tax levies, upon notification of the division

24  by the Internal Revenue Service.

25         Section 32.  Paragraph (b) of subsection (7) of section

26  121.101, Florida Statutes, is amended to read:

27         121.101  Cost-of-living adjustment of benefits.--

28         (7)  The purpose of this subsection is to establish a

29  supplemental cost-of-living adjustment for certain retirees

30  and beneficiaries who receive monthly retirement benefits

31  under the provisions of this chapter and the existing systems

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  1  consolidated therein, s. 112.05 for certain state officers and

  2  employees, and s. 238.171 for certain elderly incapacitated

  3  teachers.

  4         (b)  Application for the supplemental cost-of-living

  5  adjustment provided by this subsection shall include

  6  certification by the retiree or annuitant that he or she is

  7  not receiving, and is not eligible to receive, social security

  8  benefits and shall include written authorization for the

  9  division department to have access to information from the

10  Social Security Administration concerning his or her

11  entitlement to, or eligibility for, social security benefits.

12  Such supplemental cost-of-living adjustment shall not be paid

13  unless and until the application requirements of this

14  paragraph are met.

15         Section 33.  Paragraph (e) of subsection (2) of section

16  121.111, Florida Statutes, is amended to read:

17         121.111  Credit for military service.--

18         (2)  Any member whose initial date of employment is

19  before January 1, 1987, who has military service as defined in

20  s. 121.021(20)(b), and who does not claim such service under

21  subsection (1) may receive creditable service for such

22  military service if:

23         (e)  Any member claiming credit under this subsection

24  must certify on the form prescribed by the division department

25  that credit for such service has not and will not be claimed

26  for retirement purposes under any other federal, state, or

27  local retirement or pension system where "length of service"

28  is a factor in determining the amount of compensation

29  received, except where credit for such service has been

30  granted in a pension system providing retired pay for

31  nonregular service as provided in paragraph (d). If the member

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  1  dies prior to retirement, the member's beneficiary must make

  2  the required certification before credit may be claimed. If

  3  such certification is not made by the member or the member's

  4  beneficiary, credit for wartime military service shall not be

  5  allowed.

  6         Section 34.  Section 121.133, Florida Statutes, is

  7  amended to read:

  8         121.133  Cancellation of uncashed

  9  warrants.--Notwithstanding the provisions of s. 17.26 or s.

10  717.123 to the contrary, effective July 1, 1998, if any state

11  warrant issued by the Comptroller for the payment of

12  retirement benefits from the Florida Retirement System Trust

13  Fund, or any other pension trust fund administered by the

14  division department, is not presented for payment within 1

15  year after the last day of the month in which it was

16  originally issued, the Comptroller shall cancel the benefit

17  warrant and credit the amount of the warrant to the Florida

18  Retirement System Trust Fund or other pension trust fund

19  administered by the division department, as appropriate.  The

20  division department may provide for issuance of a replacement

21  warrant when deemed appropriate.

22         Section 35.  Section 121.135, Florida Statutes, is

23  amended to read:

24         121.135  Annual report to Legislature concerning

25  state-administered retirement systems.--The division

26  department shall make to each regular session of the

27  Legislature a written report on the operation and condition of

28  the state-administered retirement systems.

29         Section 36.  Section 121.136, Florida Statutes, is

30  amended to read:

31

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  1         121.136  Annual benefit statement to

  2  members.--Beginning January 1, 1993, and each January

  3  thereafter, the division department shall provide each active

  4  member of the Florida Retirement System with 5 or more years

  5  of creditable service an annual statement of benefits. Such

  6  statement should provide the member with basic data about the

  7  member's retirement account. Minimally, it shall include the

  8  member's retirement plan, the amount of funds on deposit in

  9  the retirement account, and an estimate of retirement

10  benefits.

11         Section 37.  Section 121.1815, Florida Statutes, is

12  amended to read:

13         121.1815  Special pensions to individuals;

14  administration of laws by Division of Retirement Department of

15  Management Services.--All powers, duties, and functions

16  related to the administration of laws providing special

17  pensions to individuals, including chapter 18054, Laws of

18  Florida, 1937; chapter 26788, Laws of Florida, 1951, as

19  amended by chapter 57-871, Laws of Florida; chapter 26836,

20  Laws of Florida, 1951; and chapter 63-953, Laws of Florida,

21  are vested in the division department. All laws hereinafter

22  enacted by the Legislature pertaining to special pensions for

23  individuals shall be administered by the division department,

24  unless contrary provisions are contained in such law. Upon the

25  death of any person receiving a monthly pension under this

26  section, the monthly pension shall be paid through the last

27  day of the month of death and shall terminate on that date,

28  unless contrary provisions are contained in the special

29  pension law.

30         Section 38.  Subsection (1) of section 121.1905,

31  Florida Statutes, is amended to read:

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  1         121.1905  Division of Retirement; creation.--

  2         (1)  There is created the Division of Retirement, which

  3  shall be assigned to and administratively housed within the

  4  State Board of Administration, and shall exercise the powers

  5  and duties specified in this chapter and in other chapters as

  6  determined by law within the Department of Management

  7  Services. The division shall be headed by a director who shall

  8  be appointed by, and serve at the pleasure of, the State Board

  9  of Administration.

10         Section 39.  Section 121.192, Florida Statutes, is

11  amended to read:

12         121.192  State retirement actuary.--The division

13  department may employ an actuary. Such actuary shall, together

14  with such other duties as the director secretary may assign,

15  be responsible for:

16         (1)  Advising the director secretary on actuarial

17  matters of the state retirement systems.

18         (2)  Making periodic valuations of the retirement

19  systems.

20         (3)  Providing actuarial analyses to the Legislature

21  concerning proposed changes in the retirement systems.

22         (4)  Assisting the director secretary in developing a

23  sound and modern retirement system.

24         Section 40.  Section 121.193, Florida Statutes, is

25  amended to read:

26         121.193  External compliance audits.--

27         (1)  The division department shall conduct audits of

28  the payroll and personnel records of participating agencies.

29  These audits shall be made to determine the accuracy of

30  reports submitted to the division department and to assess the

31  degree of compliance with applicable statutes, rules, and

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  1  coverage agreements. Audits shall be scheduled on a regular

  2  basis, as the result of concerns known to exist at an agency,

  3  or as a followup to ensure agency action was taken to correct

  4  deficiencies found in an earlier audit.

  5         (2)  Upon request, participating agencies shall furnish

  6  the division department with information and documents that

  7  the division department requires to conduct the audit. The

  8  division department may prescribe by rule the documents that

  9  may be requested.

10         (3)  The division department shall review the agency's

11  operations concerning retirement and social security coverage.

12  Preliminary findings shall be discussed with agency personnel

13  at the close of the audit. An audit report of findings and

14  recommendations shall be submitted to division department

15  management and an audit summary letter shall be submitted to

16  the agency noting any concerns and necessary corrective

17  action.

18         Section 41.  Subsection (1) of section 121.22, Florida

19  Statutes, is amended to read:

20         121.22  State Retirement Commission; creation;

21  membership; compensation.--

22         (1)(a)  There is created within the Division of

23  Retirement Department of Management Services a State

24  Retirement Commission composed of seven members: Two members

25  One member who are is retired under a state-supported

26  retirement system administered by the division department; two

27  members from different occupational backgrounds who are active

28  members in a state-supported retirement system that is

29  administered by the division department; and three four

30  members who are not retirees, beneficiaries, or members of a

31

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  1  state-supported retirement system that is administered by the

  2  division department.

  3         (b)  The State Retirement Commission shall be assigned

  4  to and administratively housed within the Division of

  5  Retirement, but the commission shall function independently

  6  and shall not be under the supervision of the division or the

  7  board, and the exercise by the commission of its powers,

  8  duties, and functions as prescribed by law shall not be

  9  subject to the review or approval of the division or the

10  board.

11         Section 42.  Subsection (1) of section 121.23, Florida

12  Statutes, is amended to read:

13         121.23  Disability retirement and special risk

14  membership applications; Retirement Commission; powers and

15  duties; judicial review.--The provisions of this section apply

16  to all proceedings in which the administrator has made a

17  written final decision on the merits respecting applications

18  for disability retirement, reexamination of retired members

19  receiving disability benefits, applications for special risk

20  membership, and reexamination of special risk members in the

21  Florida Retirement System.  The jurisdiction of the State

22  Retirement Commission under this section shall be limited to

23  written final decisions of the administrator on the merits.

24         (1)  In accordance with the rules of procedure adopted

25  by the division Department of Management Services, the

26  administrator shall:

27         (a)  Give reasonable notice of his or her proposed

28  action, or decision to refuse action, together with a summary

29  of the factual, legal, and policy grounds therefor.

30         (b)  Give affected members, or their counsel, an

31  opportunity to present to the division written evidence in

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  1  opposition to the proposed action or refusal to act or a

  2  written statement challenging the grounds upon which the

  3  administrator has chosen to justify his or her action or

  4  inaction.

  5         (c)  If the objections of the member are overruled,

  6  provide a written explanation within 21 days.

  7         Section 43.  Subsections (2), (3), and (4) of section

  8  121.24, Florida Statutes, are amended to read:

  9         121.24  Conduct of commission business; legal and other

10  assistance; compensation.--

11         (2)  Legal counsel for the commission may be provided

12  by the Department of Legal Affairs or by the division

13  Department of Management Services, with the concurrence of the

14  commission, and shall be paid by the division Department of

15  Management Services from the appropriate funds.

16         (3)  The division Department of Management Services

17  shall provide timely and appropriate training for newly

18  appointed members of the commission. Such training shall be

19  designed to acquaint new members of the commission with the

20  duties and responsibilities of the commission.

21         (4)  The division Department of Management Services

22  shall furnish administrative and secretarial assistance to the

23  commission and shall provide a place where the commission may

24  hold its meetings.

25         Section 44.  Subsection (9) of section 121.30, Florida

26  Statutes, is amended to read:

27         121.30  Statements of purpose and intent and other

28  provisions required for qualification under the Internal

29  Revenue Code of the United States.--Any other provisions in

30  this chapter to the contrary notwithstanding, it is

31  specifically provided that:

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  1         (9)  The division department may adopt any rule

  2  necessary to accomplish the purpose of the section which is

  3  not inconsistent with this chapter.

  4         Section 45.  Paragraph (c) of subsection (2),

  5  paragraphs (c) and (e) of subsection (3), paragraphs (a), (b),

  6  and (c) of subsection (4), and subsection (6) of section

  7  121.35, Florida Statutes, are amended to read:

  8         121.35  Optional retirement program for the State

  9  University System.--

10         (2)  ELIGIBILITY FOR PARTICIPATION IN OPTIONAL

11  PROGRAM.--

12         (c)  For purposes of this section, the Division of

13  Retirement Department of Management Services is referred to as

14  the "division department."

15         (3)  ELECTION OF OPTIONAL PROGRAM.--

16         (c)  Any employee who becomes eligible to participate

17  in the optional retirement program on or after January 1,

18  1993, shall be a compulsory participant of the program unless

19  such employee elects membership in the Florida Retirement

20  System.  Such election shall be made in writing and filed with

21  the personnel officer of the employer.  Any eligible employee

22  who fails to make such election within the prescribed time

23  period shall be deemed to have elected to participate in the

24  optional retirement program.

25         1.  Any employee whose optional retirement program

26  eligibility results from initial employment shall be enrolled

27  in the program at the commencement of employment.  If, within

28  90 days after commencement of employment, the employee elects

29  membership in the Florida Retirement System, such membership

30  shall be effective retroactive to the date of commencement of

31  employment.

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  1         2.  Any employee whose optional retirement program

  2  eligibility results from a change in status due to the

  3  subsequent designation of the employee's position as one of

  4  those specified in paragraph (2)(a) or due to the employee's

  5  appointment, promotion, transfer, or reclassification to a

  6  position specified in paragraph (2)(a) shall be enrolled in

  7  the optional retirement program upon such change in status and

  8  shall be notified by the employer of such action.  If, within

  9  90 days after the date of such notification, the employee

10  elects to retain membership in the Florida Retirement System,

11  such continuation of membership shall be retroactive to the

12  date of the change in status.

13         3.  Notwithstanding the provisions of this paragraph,

14  effective July 1, 1997, any employee who is eligible to

15  participate in the Optional Retirement Program and who fails

16  to execute an annuity contract with one of the approved

17  companies and to notify the division department in writing as

18  provided in subsection (4) within 90 days of the date of

19  eligibility shall be deemed to have elected membership in the

20  Florida Retirement System, except as provided in s.

21  121.051(1)(a). This provision shall also apply to any employee

22  who terminates employment in an eligible position before

23  executing the required annuity contract and notifying the

24  division department. Such membership shall be retroactive to

25  the date of eligibility, and all appropriate contributions

26  shall be transferred to the Florida Retirement System Trust

27  Fund and the Health Insurance Subsidy Trust Fund.

28         (e)  The election by an eligible employee to

29  participate in the optional retirement program shall be

30  irrevocable for so long as the employee continues to meet the

31  eligibility requirements specified in subsection (2), except

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  1  as provided in paragraph (h). In the event that an employee

  2  participates in the optional retirement program for 90 days or

  3  more and is subsequently employed in an administrative or

  4  professional position which has been determined by the

  5  division department, under subparagraph (2)(a)2., to be not

  6  otherwise eligible for participation in the optional

  7  retirement program, the employee shall continue participation

  8  in the optional program so long as the employee meets the

  9  other eligibility requirements for the program, except as

10  provided in paragraph (h).

11         (4)  CONTRIBUTIONS.--

12         (a)  Each employer shall contribute on behalf of each

13  participant in the optional retirement program an amount equal

14  to the normal cost portion of the employer retirement

15  contribution which would be required if the participant were a

16  regular member of the Florida Retirement System, plus the

17  portion of the contribution rate required in s. 112.363(8)

18  that would otherwise be assigned to the Retiree Health

19  Insurance Subsidy Trust Fund, less an amount approved by the

20  Legislature which shall be deducted by the division department

21  to provide for the administration of this program. The payment

22  of the contributions to the optional program which is required

23  by this paragraph for each participant shall be made by the

24  employer to the division department, which shall forward the

25  contributions to the designated company or companies

26  contracting for payment of benefits for the participant under

27  the program. However, such contributions paid on behalf of an

28  employee described in paragraph (3)(c) shall not be forwarded

29  to a company and shall not begin to accrue interest until the

30  employee has executed an annuity contract and notified the

31  division department.

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  1         (b)  Each employer shall contribute on behalf of each

  2  participant in the optional retirement program an amount equal

  3  to the unfunded actuarial accrued liability portion of the

  4  employer contribution which would be required for members of

  5  the Florida Retirement System.  This contribution shall be

  6  paid to the division department for transfer to the Florida

  7  Retirement System Trust Fund.

  8         (c)  An Optional Retirement Program Trust Fund shall be

  9  established in the State Treasury and administered by the

10  division department to make payments to the provider companies

11  on behalf of the optional retirement program participants, and

12  to transfer the unfunded liability portion of the state

13  optional retirement program contributions to the Florida

14  Retirement System Trust Fund.

15         (6)  ADMINISTRATION OF PROGRAM.--

16         (a)  The optional retirement program authorized by this

17  section shall be administered by the division department.  The

18  division department shall adopt rules establishing the

19  responsibilities of the Board of Regents and institutions in

20  the State University System in administering the optional

21  retirement program. The Board of Regents shall, no more than

22  90 days after July 1, 1983, submit to the division department

23  its recommendations for the annuity contracts to be offered by

24  the companies chosen by the division department.  The

25  recommendations of the board shall include the following:

26         1.  The nature and extent of the rights and benefits in

27  relation to the required contributions; and

28         2.  The suitability of the rights and benefits to the

29  needs of the participants and the interests of the

30  institutions in the recruitment and retention of eligible

31  employees.

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  1         (b)  After receiving and considering the

  2  recommendations of the Board of Regents, the division

  3  department shall designate no more than four companies from

  4  which annuity contracts may be purchased under the program and

  5  shall approve the form and content of the optional retirement

  6  program contracts.  Upon application by a qualified Florida

  7  domestic company, the division department shall give

  8  reasonable notice to all other such companies that it intends

  9  to designate one of such companies as a fifth company from

10  which annuity contracts may be purchased pursuant to this

11  section and that they may apply for such designation prior to

12  the deadline established by said notice. At least 60 days

13  after giving such notice and upon receipt of the

14  recommendation of the Board of Regents, the division

15  department shall so designate one of such companies as the

16  fifth company from which such contracts may be purchased.

17         (c)  Effective July 1, 1997, the State Board of

18  Administration shall review and make recommendations to the

19  division department on the acceptability of all investment

20  products proposed by provider companies of the optional

21  retirement program before they are offered through annuity

22  contracts to the participants and may advise the division

23  department of any changes necessary to ensure that the

24  optional retirement program offers an acceptable mix of

25  investment products. The division department shall make the

26  final determination as to whether an investment product will

27  be approved for the program.

28         (d)  The provisions of each contract applicable to a

29  participant in the optional retirement program shall be

30  contained in a written program description which shall include

31  a report of pertinent financial and actuarial information on

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  1  the solvency and actuarial soundness of the program and the

  2  benefits applicable to the participant.  Such description

  3  shall be furnished by the companies to each participant in the

  4  program and to the division department upon commencement of

  5  participation in the program and annually thereafter.

  6         (e)  The division department shall ensure that each

  7  participant in the optional retirement program is provided an

  8  accounting of the total contribution and the annual

  9  contribution made by and on behalf of such participant.

10         Section 46.  Paragraph (b) of subsection (3) and

11  paragraphs (a) and (b) of subsection (14) of section 121.40,

12  Florida Statutes, are amended to read:

13         121.40  Cooperative extension personnel at the

14  Institute of Food and Agricultural Sciences; supplemental

15  retirement benefits.--

16         (3)  DEFINITIONS.--The definitions provided in s.

17  121.021 shall not apply to this section except when

18  specifically cited.  For the purposes of this section, the

19  following words or phrases have the respective meanings set

20  forth:

21         (b)  "Division Department" means the Division of

22  Retirement of the State Board of Administration Department of

23  Management Services.

24         (14)  ADMINISTRATION OF SYSTEM.--

25         (a)  The division department shall make such rules as

26  are necessary for the effective and efficient administration

27  of this system.  The director secretary of the division

28  department shall be the administrator of the system. The funds

29  to pay the expenses for such administration shall be

30  appropriated from the interest earned on investments made for

31  the trust fund.

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  1         (b)  The division department is authorized to require

  2  oaths, by affidavit or otherwise, and acknowledgments from

  3  persons in connection with the administration of its duties

  4  and responsibilities under this section.

  5         Section 47.  Subsection (3) of section 121.45, Florida

  6  Statutes, is amended to read:

  7         121.45  Interstate compacts relating to pension

  8  portability.--

  9         (3)  ESTABLISHMENT OF COMPACTS.--

10         (a)  The division Department of Management Services is

11  authorized and directed to survey other state retirement

12  systems to determine if such retirement systems are interested

13  in developing an interstate compact with Florida.

14         (b)  If any such state is interested in pursuing the

15  matter, the division department shall confer with the other

16  state and the consulting actuaries of both states, and shall

17  present its findings to the committees having jurisdiction

18  over retirement matters in the Legislature, and to

19  representatives of affected certified bargaining units, in

20  order to determine the feasibility of developing a portability

21  compact, what groups should be covered, and the goals and

22  priorities which should guide such development.

23         (c)  Upon a determination that such a compact is

24  feasible and upon request of the Legislature, the division

25  department, together with its consulting actuaries, shall, in

26  accordance with said goals and priorities, develop a proposal

27  under which retirement credit may be transferred to or from

28  Florida in an actuarially sound manner.

29         (d)  Once a proposal has been developed, the division

30  department shall contract with its consulting actuaries to

31  conduct an actuarial study of the proposal to determine the

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  1  cost to the Florida Retirement System Trust Fund and the State

  2  of Florida.

  3         (e)  After the actuarial study has been completed, the

  4  division department shall present its findings and the

  5  actuarial study to the Legislature for consideration.  If

  6  either house of the Legislature elects to enter into such a

  7  compact, it shall be introduced in the form of a proposed

  8  committee bill to the full Legislature during the same or next

  9  regular session.

10         Section 48.  Subsections (1) and (6) of section 122.02,

11  Florida Statutes, are amended to read:

12         122.02  Definitions.--The following words and phrases

13  as used in this chapter shall have the following meaning

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

15         (1)  "State and county officers and employees" shall

16  include all full-time officers or employees who receive

17  compensation for services rendered from state or county funds,

18  or from funds of drainage districts or mosquito control

19  districts of a county or counties, or from funds of the State

20  Board of Administration or from funds of closed bank

21  receivership accounts or from funds of any state institution

22  or who receive compensation for employment or service from any

23  agency, branch, department, institution or board of the state,

24  or any county of the state, for service rendered the state or

25  county from funds from any source provided for their

26  employment or service regardless of whether the same is paid

27  by state or county warrant or not; provided that such

28  compensation in whatever form paid shall be specified in terms

29  of fixed monthly salaries by the employing state or county

30  agency or state or county official and shall not include

31  amounts allowed for professional employees for special or

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  1  particular service or for subsistence or travel expenses;

  2  provided further the division department shall prescribe

  3  appropriate procedure for contribution deduction out of such

  4  compensation in accordance with the provisions of this

  5  chapter, provided further that such officers and employees

  6  defined herein shall not include those officers and employees

  7  excepted from the provisions by s. 122.18 of this law.

  8         (6)  "Division Department" means the Division of

  9  Retirement of the State Board of Administration Department of

10  Management Services.

11         Section 49.  Paragraph (d) of subsection (6) and

12  subsection (9) of section 122.03, Florida Statutes, are

13  amended to read:

14         122.03  Contributions; participants; prior service

15  credit.--

16         (6)  Any officer or employee who held office or was

17  employed by the state or a county of the state continuously

18  from May 1, 1959, and who has not previously received credit

19  for, or is not eligible to claim credit for, prior years of

20  service under subsection (2); or any officer or employee who

21  holds office or is employed by the state or a county of the

22  state on June 1, 1961, and is continuously employed; or any

23  officer or employee who holds office or is employed by the

24  state or county of the state after June 1, 1961, and who is

25  continuously employed for 3 years, during which period of time

26  no back payments may be made:

27         (d)  Prior service allowance may be made only for those

28  periods in which state or county records of service and salary

29  are available, or at least three affidavits and such other

30  information as might be required by the division department to

31  meet the provisions of this law.

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  1         (9)  The surviving spouse or other dependent of any

  2  member whose employment is terminated by death shall, upon

  3  application to the division department, be permitted to pay

  4  the required contributions for any service performed by the

  5  member which could have been claimed by the member at the time

  6  of death. Such service shall be added to the creditable

  7  service of the member and shall be used in the calculation of

  8  any benefits which may be payable to the surviving spouse or

  9  other surviving dependent.

10         Section 50.  Subsection (2) of section 122.05, Florida

11  Statutes, is amended to read:

12         122.05  Legislator services included.--

13         (2)  The division department and state officials

14  administering said retirement system shall make the

15  contribution deductions required by law from the compensation

16  hereafter received by any of the said participating members of

17  the Legislature for service rendered the State Legislature in

18  the same manner as in the case of other state employment.

19         Section 51.  Subsection (2) of section 122.06, Florida

20  Statutes, is amended to read:

21         122.06  Legislative employee services included.--

22         (2)  The division department and other state officials

23  administering said retirement system shall make the

24  contribution deductions required by law from the compensation

25  hereafter received by any of the said participating attaches

26  for service rendered the State Legislature in the same manner

27  as in the case of other state employment.

28         Section 52.  Subsection (2) of section 122.07, Florida

29  Statutes, is amended to read:

30         122.07  Seasonal state employment included; time limit

31  and procedure for claiming.--

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  1         (2)  Any state employee as described in subsection (1)

  2  in the classification set forth in s. 122.01 may elect to

  3  receive credit as a state employee under the State and County

  4  Officers and Employees' Retirement System by providing to the

  5  division department a statement from the state in which he or

  6  she was employed, listing days employed and monthly earnings

  7  and such other information as may, in the opinion of the

  8  division department, be necessary or appropriate in the

  9  carrying out of this section. Credit shall be granted upon

10  payment to the division department by such employee of an

11  amount equal to the total retirement contribution that would

12  have been required had the member worked in this state during

13  the period based on the salary drawn by such employee during

14  his or her last full month of employment by the state or any

15  department thereof for each month during said fiscal year for

16  which such employee was not employed by the state or any

17  department thereof, but was employed by some other state, plus

18  interest compounded annually each June 30 from the date of the

19  service in another state to the date of payment at the rate of

20  4 percent until July 1, 1975, and 6.5 percent thereafter.  The

21  member shall have until his or her date of retirement to claim

22  and purchase credit for such employment in another state.

23         Section 53.  Paragraph (a) of subsection (1), paragraph

24  (b) of subsection (4), and subsections (5) and (9) of section

25  122.08, Florida Statutes, are amended to read:

26         122.08  Requirements for retirement;

27  classifications.--There shall be two retirement

28  classifications for all state and county officers and

29  employees participating herein as hereafter provided in this

30  section:

31

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  1         (1)(a)  Any state or county officer or employee who has

  2  attained normal retirement age, which shall be age 60 for a

  3  person who had become a member prior to July 1, 1963, and age

  4  62 for a person who had or shall become a member on or after

  5  July 1, 1963, and has accumulated at least 10 years' service

  6  in the aggregate within the contemplation of this law, and who

  7  has made or makes contributions to the State and County

  8  Officers and Employees' Retirement Trust Fund for 5 or more

  9  years as prescribed in this law, may voluntarily retire from

10  office or employment and be entitled to receive retirement

11  compensation, the amount of which shall be 2 percent for each

12  year of service rendered, based upon the average final

13  compensation, payable in equal monthly installments, upon his

14  or her own requisition.  Requisition requirements shall be set

15  by the division department.

16         (4)

17         (b)  A member who elects an option in paragraph (a)

18  shall on a form provided for that purpose designate his or her

19  spouse as beneficiary to receive the benefits which continue

20  to be payable upon the death of the member.  After such

21  benefits have commenced under an option in paragraph (a), the

22  retired member may change the designation of his or her spouse

23  as beneficiary only twice.  If such a retired member remarries

24  and wishes to make such a change, he or she may do so by

25  filing with the division department a notarized change of

26  spouse designation form and shall notify the former spouse in

27  writing of such change. Upon receipt of a completed change of

28  spouse designation form, the division department shall adjust

29  the member's monthly benefit by the application of actuarial

30  tables and calculations developed to ensure that the benefit

31  paid is the actuarial equivalent of the present value of the

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  1  member's current benefit. The consent of a retired member's

  2  formerly designated spouse as beneficiary to any such change

  3  shall not be required.

  4         (5)  Tables for computing the actuarial equivalent

  5  shall be approved by the division department.

  6         (9)  Notwithstanding any other provision in this

  7  chapter to the contrary, the following provisions shall apply

  8  to any officer or employee who has accumulated at least 10

  9  years of service and dies:

10         (a)  If the deceased member's surviving spouse has

11  previously received a refund of the member's contributions

12  made to the retirement trust fund, such spouse may pay to the

13  division department an amount equal to the sum of the amount

14  of the deceased member's contributions previously refunded and

15  interest at 3 percent compounded annually on the amount of

16  such refunded contributions from the date of refund until July

17  1, 1975, and thereafter at the rate of 6.5 percent interest

18  compounded annually to the date of payment to the division

19  department, and by so doing be entitled to receive the monthly

20  retirement benefit provided in paragraph (c).

21         (b)  If the deceased member's surviving spouse has not

22  received a refund of the deceased member's contributions, such

23  spouse shall, upon application to the division department,

24  receive the monthly retirement benefit provided in paragraph

25  (c).

26         (c)  The monthly benefit payable to the spouse

27  described in paragraph (a) or paragraph (b) shall be the

28  amount which would have been payable to the deceased member's

29  spouse, assuming that the member retired on the date of death

30  and had selected the option in subsection (4) which would

31  afford the surviving spouse the greatest amount of benefits,

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  1  such benefit to be based on the ages of the spouse and member

  2  as of the date of death of the member.  Such benefit shall

  3  commence on the first day of the month following the payment

  4  of the aforesaid amount to the division department, if

  5  paragraph (a) is applicable, or on the first day of the month

  6  following the receipt of the spouse's application by the

  7  division department, if paragraph (b) is applicable.

  8         Section 54.  Section 122.09, Florida Statutes, is

  9  amended to read:

10         122.09  Disability retirement; medical

11  examinations.--Whenever any officer or employee of the state

12  or county of the state has service credit as such officer or

13  employee for 10 years within the contemplation of this law,

14  the last 5 years of which, except for a single break not to

15  exceed 1 year, must be continuous, unbroken service and who is

16  regularly contributing to the State and County Officers and

17  Employees' Retirement Trust Fund and shall while holding such

18  office or employment become permanently and totally disabled,

19  physically or mentally, or both, from rendering useful and

20  efficient service as such officer or employee, such officer or

21  employee may retire from his or her office or employment, and

22  upon such retirement the officer or employee shall be paid, so

23  long as the permanent and total disability continues, on his

24  or her own monthly requisition, from the State and County

25  Officers and Employees' Retirement Trust Fund hereinafter

26  established, retirement compensation as provided in s. 122.08;

27  provided that no officer or employee retiring under this

28  section shall receive less than 50 percent of his or her

29  average final compensation not to exceed $75.  No officer or

30  employee of the state and county of the state shall be

31  permitted to retire under the provisions of this section until

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  1  examined by a duly qualified physician or surgeon or board of

  2  physicians and surgeons, to be selected by the Governor for

  3  that purpose, and found to be disabled in the degree and in

  4  the manner specified in this section.  Any officer or employee

  5  retiring under this section shall be examined periodically by

  6  a duly qualified physician or surgeon or board of physicians

  7  and surgeons to be selected by the Governor for that purpose

  8  and paid from the retirement trust fund herein provided for,

  9  at such time as the division Department of Management Services

10  shall direct to determine if such total disability has

11  continued and in the event it be disclosed by said examination

12  that said total disability has ceased to exist, then such

13  officer or employee shall forthwith cease to be paid benefits

14  under this section.  Reference to s. 122.08 is for the purpose

15  of computing benefits only.  Any person heretofore retired

16  under this section shall be eligible to qualify for the

17  minimum benefits provided herein; however, minimum benefits

18  shall not be paid retroactively.

19         Section 55.  Subsection (4) of section 122.10, Florida

20  Statutes, is amended to read:

21         122.10  Separation from service; refund of

22  contributions.--

23         (4)  Should any officer or employee elect to receive a

24  refund as provided in this section, his or her application for

25  refund shall be submitted in the manner prescribed by the

26  regulations adopted by the division department and shall

27  accompany the payroll certification, submitted to the division

28  department, on which he or she was last paid prior to

29  termination.  The division department shall pay the entire

30  refund due within 45 days after the first day of the month

31

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  1  subsequent to receipt of such application for refund and said

  2  payroll certification.

  3         Section 56.  Subsection (1) of section 122.12, Florida

  4  Statutes, is amended to read:

  5         122.12  Designation of beneficiary; death of

  6  participant; forfeiture of contributions after benefits paid;

  7  survivor benefits.--

  8         (1)  Any officer or employee may file, in writing, a

  9  designation of beneficiary and it shall be the duty of the

10  division department to refund 100 percent, without interest,

11  of the contributions made to the retirement trust fund by such

12  deceased officer or employee to such designated beneficiary.

13  The officer or employee shall have the privilege of changing,

14  in writing, the designated beneficiary at any time. Upon

15  failure to designate a beneficiary, the refund shall be made

16  to the persons in the same order as designated in  s. 222.15,

17  for wages due deceased employees.  If the deceased officer or

18  employee has received any benefits under this law, no refund

19  shall be made unless such officer or employee has elected to

20  accept benefits under s. 122.08(3) or (4).

21         Section 57.  Section 122.13, Florida Statutes, is

22  amended to read:

23         122.13  Administration of law; appropriation.--The

24  division department shall make such rules as are necessary for

25  the effective administration of this chapter, and the cost is

26  hereby annually appropriated and shall be paid into the State

27  and County Officers and Employees' Retirement Trust Fund out

28  of the Intangible Tax Fund in the State Treasury in the amount

29  necessary to administer efficiently the state and county

30  retirement law.  At the end of each fiscal year, beginning

31  with fiscal year 1959-1960, the administrative cost of the

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  1  state and county retirement system for the fiscal year just

  2  ended shall be refunded to the General Revenue Fund from

  3  interest earned on investments made subsequent to June 30,

  4  1959.

  5         Section 58.  Subsection (2) of section 122.15, Florida

  6  Statutes, is amended to read:

  7         122.15  Benefits exempt from taxes and execution.--

  8         (2)  This subsection shall have no effect upon this

  9  section except that the division department may, upon written

10  request from the retired member, deduct premiums for group

11  hospitalization insurance from the retirement benefit paid

12  such retired member.

13         Section 59.  Paragraph (b) of subsection (2) of section

14  122.16, Florida Statutes, is amended to read:

15         122.16  Employment after retirement.--

16         (2)

17         (b)  Any person to whom the limitation in paragraph (a)

18  applies who violates such reemployment limitation and is

19  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 his or her employer and to the division department;

23  and his or her retirement benefits shall be 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 department 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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  1  statement from the retiree that he or she is not retired from

  2  a state-administered retirement system.  Any retirement

  3  benefits received by such person while he or she is reemployed

  4  during this reemployment limitation period shall be repaid to

  5  the retirement trust fund, and his or her retirement benefits

  6  shall remain suspended until such repayment has been made. Any

  7  benefits suspended beyond the reemployment limitation period

  8  shall apply toward the repayment of benefits received in

  9  violation of the reemployment limitation.

10         Section 60.  Subsections (3) and (5) of section 122.23,

11  Florida Statutes, are amended to read:

12         122.23  Definitions.--In addition to those definitions

13  set forth in s. 122.02 the following words and phrases used in

14  ss. 122.21-122.24, 122.26 to 122.321, inclusive, have the

15  respective meanings set forth:

16         (3)  "Division Department" means the Division of

17  Retirement of the State Board of Administration Department of

18  Management Services.

19         (5)  "State agency" means the Division of Retirement of

20  the State Board of Administration Department of Management

21  Services within the provisions and contemplation of chapter

22  650.

23         Section 61.  Subsections (1) and (5) of section 122.30,

24  Florida Statutes, are amended to read:

25         122.30  Appropriations.--

26         (1)  There is hereby annually appropriated from the

27  intangible tax fund of the state to the division department as

28  the state agency designated in chapter 650, a sum not to

29  exceed $10,000 to defray the expenses of such agency in

30  connection with its continuing duties in relation to the

31  social security coverage provided by this law.

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  1         (5)  In addition to amounts appropriated by other

  2  provisions of this chapter or other laws to defray cost of

  3  administration of this system, there is hereby appropriated

  4  out of the Intangible Tax Fund of the state for use of the

  5  division department in its administration of the two divisions

  6  of this system, the sum of $100,000, or so much thereof as may

  7  be required for that purpose.

  8         Section 62.  Paragraphs (b) and (c) of subsection (1)

  9  and subsection (11) of section 122.34, Florida Statutes, are

10  amended to read:

11         122.34  Special provisions for certain sheriffs and

12  full-time deputy sheriffs.--

13         (1)

14         (b)  Only those members who are full-time criminal law

15  enforcement officers or agents, as certified by the employing

16  authority, who perform duties according to rule, order, or

17  established custom as full-time criminal law enforcement

18  officers or agents shall be certified to the division

19  department as high hazard members, and only such members will

20  be approved by the division department.

21         (c)  The division department shall make such rules as

22  are necessary for the effective administration of the intent

23  of this section.

24         (11)  No high hazard member shall be permitted to

25  receive benefits under this section until examined by a duly

26  qualified physician or surgeon, or board of physicians and

27  surgeons, to be selected by the Governor for that purpose, and

28  found to be disabled in the degree and in the manner specified

29  in this section.  At such time as the division Department of

30  Management Services directs, any high hazard member receiving

31  disability benefits under this section shall submit to a

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  1  medical examination to determine if such disability has

  2  continued, and the cost of such examination shall be paid from

  3  the retirement trust fund herein provided for; and in the

  4  event it is declared by said examination that said disability

  5  has cleared, such member shall be ordered to return to active

  6  duty with the same rank and salary that he or she had at the

  7  time of disability.  Any such member who shall fail to return

  8  to duty following such order shall forfeit all rights and

  9  claims under this law.  Every high hazard member retiring

10  under this provision shall be paid so long as the member's

11  permanent total or partial disability continues, on his or her

12  own requisition.

13         Section 63.  Section 122.351, Florida Statutes, is

14  amended to read:

15         122.351  Funding by local agencies.--Commencing on July

16  1, 1969, all county and local agencies covered under the

17  provisions of s. 122.35 shall accumulate and be responsible

18  for the payment of social security and retirement matching

19  costs as required under s. 122.35, from the intangible tax

20  allocation of that county and any other source available to

21  the local governmental units, except that all agencies, other

22  than the school boards, shall be given credit for 50 percent

23  of their 1967-1969 actual employer matching cost, actual cost

24  being that cost in cash actually paid by the employer for

25  matching retirement and social security into the fund by the

26  agency for said biennium. The above credit of 50 percent shall

27  be calculated by the division department.

28         Section 64.  Subsection (6) of section 175.032, Florida

29  Statutes, is amended to read:

30         175.032  Definitions.--For any municipality, special

31  fire control district, chapter plan, local law municipality,

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  1  local law special fire control district, or local law plan

  2  under this chapter, the following words and phrases have the

  3  following meanings:

  4         (6)  "Division" means the Division of Retirement of the

  5  State Board of Administration Department of Management

  6  Services.

  7         Section 65.  Section 175.1215, Florida Statutes, is

  8  amended to read:

  9         175.1215  Police and Firefighters' Premium Tax Trust

10  Fund.--The Police and Firefighters' Premium Tax Trust Fund is

11  created, to be administered by the Division of Retirement of

12  the Department of Management Services.  Funds credited to the

13  trust fund, as provided in chapter 95-250, Laws of Florida, or

14  similar legislation, shall be expended for the purposes set

15  forth in that legislation.

16         Section 66.  Subsection (7) of section 185.02, Florida

17  Statutes, is amended to read:

18         185.02  Definitions.--For any municipality, chapter

19  plan, local law municipality, or local law plan under this

20  chapter, the following words and phrases as used in this

21  chapter shall have the following meanings, unless a different

22  meaning is plainly required by the context:

23         (7)  "Division" means the Division of Retirement of the

24  State Board of Administration Department of Management

25  Services.

26         Section 67.  Section 185.105, Florida Statutes, is

27  amended to read:

28         185.105  Police and Firefighters' Premium Tax Trust

29  Fund.--The Police and Firefighters' Premium Tax Trust Fund is

30  created, to be administered by the Division of Retirement of

31  the State Board of Administration Department of Management

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  1  Services.  Funds credited to the trust fund, as provided in

  2  chapter 95-250, Laws of Florida, or similar legislation, shall

  3  be expended for the purposes set forth in that legislation.

  4         Section 68.  Paragraph (ii) of subsection (4) of

  5  section 215.20, Florida Statutes, is amended to read:

  6         215.20  Certain income and certain trust funds to

  7  contribute to the General Revenue Fund.--

  8         (4)  The income of a revenue nature deposited in the

  9  following described trust funds, by whatever name designated,

10  is that from which the deductions authorized by subsection (3)

11  shall be made:

12         (ii)  The Police and Firefighters' Premium Tax Trust

13  Fund established within the Division of Retirement of the

14  State Board of Administration Department of Management

15  Services.

16

17  The enumeration of the foregoing moneys or trust funds shall

18  not prohibit the applicability thereto of s. 215.24 should the

19  Governor determine that for the reasons mentioned in s. 215.24

20  the money or trust funds should be exempt herefrom, as it is

21  the purpose of this law to exempt income from its force and

22  effect when, by the operation of this law, federal matching

23  funds or contributions or private grants to any trust fund

24  would be lost to the state.

25         Section 69.  Subsection (3) of section  215.28, Florida

26  Statutes, is amended to read:

27         215.28  United States securities, purchase by state and

28  county officers and employees; deductions from salary.--

29         (3)  All deductions so made by any such disbursing

30  authority shall be deposited in a trust account separate and

31  apart from the funds of the state, county, or subordinate

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  1  agency.  Such account will be subject to withdrawal only for

  2  the purchase of United States securities on behalf of officers

  3  and employees, or for refunds to such persons in accordance

  4  with the provisions of this law.  Whenever the sum of $18.75

  5  or the purchase price of the security requested to be

  6  purchased is accumulated from deductions so made from the

  7  salaries or wages of an officer or employee, such disbursing

  8  agent shall arrange the purchase of the bond or security

  9  applied for and have it registered in the name or names

10  requested in the deduction authorization. Securities so

11  purchased will be delivered in such manner as may be

12  convenient for the issuing agent and the purchaser.  Any

13  interest earned on moneys in such account while awaiting the

14  accumulation of the purchase price of the security shall be

15  transferred to the Florida Retirement System Trust Fund as

16  reimbursement for administrative costs incurred by the

17  Division of Retirement of the State Board of Administration

18  Department of Management Services under this section.

19         Section 70.  Subsection (3) of section 215.50, Florida

20  Statutes, is amended to read:

21         215.50  Custody of securities purchased; income.--

22         (3)  The Treasurer, as custodian of securities owned by

23  the Florida Retirement System Trust Fund and the Florida

24  Survivor Benefit Trust Fund, shall collect the interest,

25  dividends, prepayments, maturities, proceeds from sales, and

26  other income accruing from such assets.  As such income is

27  collected by the Treasurer, it shall be deposited directly

28  into a commercial bank to the credit of the State Board of

29  Administration.  Such bank accounts as may be required for

30  this purpose shall offer satisfactory collateral security as

31  provided by chapter 280.  In the event funds so deposited

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  1  according to the provisions of this section are required for

  2  the purpose of paying benefits or other operational needs, the

  3  State Board of Administration shall remit to the Florida

  4  Retirement System Trust Fund in the State Treasury such

  5  amounts as may be requested by the director of the Division of

  6  Retirement of the State Board of Administration Department of

  7  Management Services.

  8         Section 71.  Subsections (2), (3), (11), and (13) of

  9  section 238.01, Florida Statutes, are amended to read:

10         238.01  Definitions.--The following words and phrases

11  as used in this chapter shall have the following meanings

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

13         (2)  "Division Department" means the Division of

14  Retirement of the State Board of Administration Department of

15  Management Services.

16         (3)  "Teacher" means any member of the teaching or

17  professional staff and any certificated employee of any public

18  free school, of any district school system and vocational

19  school, any member of the teaching or professional staff of

20  the Florida School for the Deaf and Blind, child training

21  schools of the Department of Juvenile Justice, the Department

22  of Corrections, and any tax-supported institution of higher

23  learning of the state, and any member and any certified

24  employee of the Department of Education, any certified

25  employee of the retirement system, any full-time employee of

26  any nonprofit professional association or corporation of

27  teachers functioning in Florida on a statewide basis, which

28  seeks to protect and improve public school opportunities for

29  children and advance the professional and welfare status of

30  its members, any person now serving as superintendent, or who

31  was serving as county superintendent of public instruction on

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  1  July 1, 1939, and any hereafter duly elected or appointed

  2  superintendent, who holds a valid Florida teachers'

  3  certificate. In all cases of doubt the division Department of

  4  Management Services shall determine whether any person is a

  5  teacher as defined herein.

  6         (11)  "Regular interest" means interest at such rate as

  7  may be set from time to time by the division Department of

  8  Management Services.

  9         (13)  "Earnable compensation" means the full

10  compensation payable to a teacher working the full working

11  time for his or her position. In respect to plans A, B, C, and

12  D only, in cases where compensation includes maintenance, the

13  division Department of Management Services shall fix the value

14  of that part of the compensation not paid in money; provided

15  that all members shall from July 1, 1955, make contributions

16  to the retirement system on the basis of "earnable

17  compensation" as defined herein and all persons who are

18  members on July 1, 1955, may, upon application, have their

19  "earnable compensation" for the time during which they have

20  been members prior to that date determined on the basis of

21  "earnable compensation" as defined in this law, upon paying to

22  the retirement system, on or before the date of retirement, a

23  sum equal to the additional contribution with accumulated

24  regular interest thereon they would have made if "earnable

25  compensation" had been defined, at the time they became

26  members, as it is now defined. However, earnable compensation

27  for all plan years beginning on or after July 1, 1990, shall

28  not include any amounts in excess of the compensation

29  limitation (originally $200,000) established by s. 401(a)(17)

30  of the Internal Revenue Code prior to the Omnibus Budget

31  Reconciliation Act of 1993, which limitation shall be adjusted

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  1  for changes in the cost of living since 1989, in the manner

  2  provided by s. 401(a)(17) of the Internal Revenue Code of

  3  1991.  This limitation, which has been part of the Teachers'

  4  Retirement System since plan years beginning on or after July

  5  1, 1990, shall be adjusted as required by federal law for

  6  qualified government plans.

  7         Section 72.  Section 238.02, Florida Statutes, is

  8  amended to read:

  9         238.02  Name and date of establishment.--A retirement

10  system is established and placed under the management of the

11  Division of Retirement of the State Board of Administration

12  Department of Management Services for the purpose of providing

13  retirement allowances and other benefits for teachers of the

14  state.  The retirement system shall begin operations on July

15  1, 1939.  It has such powers and privileges of a corporation

16  as may be necessary to carry out effectively the provisions of

17  this chapter and shall be known as the "Teachers' Retirement

18  System of the State," and by such name all of its business

19  shall be transacted, all of its funds invested, and all of its

20  cash and securities and other property held in trust for the

21  purpose for which received.

22         Section 73.  Section 238.03, Florida Statutes, is

23  amended to read:

24         238.03  Administration.--

25         (1)  The general administration and the responsibility

26  for the proper operation of the retirement system and for

27  making effective the provisions of this chapter are vested in

28  the Division of Retirement of the State Board of

29  Administration Department of Management Services.  Subject to

30  the limitation of this chapter, the division department shall,

31  from time to time, establish rules and regulations for the

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  1  administration and transaction of the business of the

  2  retirement system and shall perform such other functions as

  3  are required for the execution of this chapter.

  4         (2)  The division department shall keep in convenient

  5  form such data as shall be necessary for actuarial valuation

  6  of the various funds created by this chapter and for checking

  7  the experience of the retirement system.

  8         (3)  The Department of Legal Affairs shall be the legal

  9  adviser of the division department.

10         (4)  The division department shall employ such agents,

11  servants and employees as in its judgment may be necessary to

12  carry out the terms and provisions of this chapter and shall

13  provide for their compensation.  Among the employees of the

14  division department shall be an actuary who shall be the

15  technical adviser of the division department on matters

16  regarding the operation of the funds created by the provisions

17  of this chapter and who shall perform such other duties as are

18  required in connection therewith.

19         (5)  In the year 1943 and at least once in each 5-year

20  period thereafter, the actuary shall make an actuarial

21  investigation of the mortality, service and salary experience

22  of the members and beneficiaries as defined in this chapter,

23  and shall make a valuation of the various funds created by the

24  chapter, and having regard to such investigation and

25  valuation, the division department shall adopt such mortality

26  and service tables as shall be deemed necessary, and shall

27  certify the rates of contribution payable under the provisions

28  of this chapter.

29         (6)  The actuary shall make an annual valuation of the

30  assets and liabilities of the funds of the retirement system

31  on the basis of the tables adopted by the division department

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  1  in accordance with the requirements of this section, and shall

  2  prepare an annual statement of the amounts to be contributed

  3  by the state in accordance with s. 238.09.

  4         (7)  The division department shall publish annually the

  5  valuation, as certified by the actuary, of the assets and

  6  liabilities of the various funds created by this chapter, a

  7  statement as to the receipts and disbursements of the funds,

  8  and a statement as to the accumulated cash and securities of

  9  the funds.

10         (8)  The division department shall keep a record of all

11  of its proceedings and such record shall be open to inspection

12  by the public.

13         (9)  The division department is authorized to

14  photograph and reduce to microfilm as a permanent record, its

15  ledger sheets showing the salary and contributions of members

16  of the retirement system, also the records of deceased members

17  of the system and thereupon to destroy the documents from

18  which such films are photographed.

19         Section 74.  Paragraph (b) of subsection (1),

20  paragraphs (a) and (b) of subsection (3), and subsection (4)

21  of section 238.05, Florida Statutes, are amended to read:

22         238.05  Membership.--

23         (1)  The membership of the retirement system shall

24  consist of the following:

25         (b)  All persons who became or who become teachers on

26  or after July 1, 1939, except as provided in paragraph (a) and

27  subsection (5) hereof, shall become members of the retirement

28  system by virtue of their appointment as teachers.  However,

29  employees who are not members of the teaching or professional

30  staff shall only become members of the retirement system by

31

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  1  filing a notice with the division department of their election

  2  to become members.

  3         (3)  Except as otherwise provided in s. 238.07(9),

  4  membership of any person in the retirement system will cease

  5  if he or she is continuously unemployed as a teacher for a

  6  period of more than 5 consecutive years, or upon the

  7  withdrawal by the member of his or her accumulated

  8  contributions as provided in s. 238.07(13), or upon

  9  retirement, or upon death; provided that the adjustments

10  prescribed below are to be made for persons who enter the

11  Armed Forces of the United States during a period of war or

12  national emergency and for persons who are granted leaves of

13  absence.  Any member of the retirement system who within 1

14  year before the time of entering the Armed Forces of the

15  United States was a teacher, as defined in s. 238.01, or was

16  engaged in other public educational work within the state, and

17  member of the Teachers' Retirement System at the time of

18  induction, or who has been or is granted leave of absence,

19  shall be permitted to elect to continue his or her membership

20  in the Teachers' Retirement System; and membership service

21  shall be allowed for the period covered by service in the

22  Armed Forces of the United States or by leave of absence under

23  the following conditions:

24         (a)  A person who has been granted leave of absence

25  shall file with the division department before his or her next

26  contribution is due an application to continue his or her

27  membership during the period covered by the person's leave of

28  absence and, if such application is filed, shall make his or

29  her contribution to the retirement system on the basis of his

30  or her last previous annual salary as a teacher, and shall,

31  prior to retirement, pay in full to the system such

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  1  contributions with accumulated regular interest.  Such

  2  contributions with interest may be paid at one time or in

  3  monthly, quarterly, semiannual, or annual payments in the

  4  person's discretion.

  5         (b)  A person who enters or who has entered the Armed

  6  Forces of the United States may either continue his or her

  7  membership according to the plan outlined under paragraph (a)

  8  or, in lieu thereof, may file with the division department at

  9  any time following the close of his or her military service an

10  application that his or her membership be continued and that

11  membership service be allowed for not more than 5 years of his

12  or her period of service in the Armed Forces of the United

13  States during any period of war or national emergency;

14  provided that any such person shall, prior to retirement, pay

15  in full his or her contributions with accumulated regular

16  interest to the retirement system for the period for which he

17  or she is entitled to membership service on the basis of his

18  or her last previous annual salary as a teacher.  Such

19  contributions with interest may be paid to the division

20  department at one time or in monthly, quarterly, semiannual,

21  or annual payments in the person's discretion.

22         (4)  The division department may in its discretion deny

23  the right to become members to any class of teachers who are

24  serving on a temporary or any other than a per annum basis,

25  and it may also in its discretion make optional with members

26  in any such class their individual entrance into membership.

27         Section 75.  Subsections (3) and (10), paragraphs (a)

28  and (b) of subsection (12), subsection (13), paragraphs (a),

29  (b), and (d) of subsection (15A), and paragraphs (a) and (d)

30  of subsection (16) of section 238.07, Florida Statutes, are

31  amended to read:

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  1         238.07  Regular benefits; survivor benefits.--

  2         (3)  Any member who, prior to July 1, 1955, elected to

  3  retire under one of plans A, B, C, or D may elect, prior to

  4  retirement, to retire under plan E in accordance with the

  5  terms hereof.  Any person who became a member on or after July

  6  1, 1955, shall retire under plan E, except as provided for

  7  under s. 238.31. With respect to plans A, B, C, or D, any

  8  member shall have the right at any time to change to a plan of

  9  retirement requiring a lower rate of contribution.  The

10  division Department of Management Services shall also notify

11  the member of the rate of contribution such member must make

12  from and after selecting such plan of retirement.  Any member

13  in service may retire upon reaching the age of retirement

14  formerly selected by him or her, upon the member's written

15  application to the division department setting forth at which

16  time, not more than 90 days subsequent to the execution and

17  filing of such application, it is his or her desire to retire

18  notwithstanding that during such period of notification he or

19  she may have separated from service.  Upon receipt of such

20  application for retirement, the division department shall

21  retire such member not more than 90 days thereafter.  Before

22  such member may retire he or she must file with the division

23  department his or her written selection of one of the optional

24  benefits provided in s. 238.08.

25         (10)  Any member in service, who has 10 or more years

26  of creditable service, may upon the application of his or her

27  employer or upon his or her own application, be retired by the

28  division department not less than 30 nor more than 90 days

29  next following the date of filing such application, on a

30  disability retirement allowance; provided that a physician

31  licensed by this state examines and certifies that such member

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  1  is mentally or physically incapacitated for the further

  2  performance of duty, that such incapacity is likely to be

  3  permanent, and that such member should be retired, and the

  4  division department concurs.  In making the determination, the

  5  division department may require other evidence of disability

  6  as deemed appropriate.

  7         (12)(a)  Once each year during the first 5 years

  8  following the retirement of a member on a disability

  9  retirement allowance, and once in every 3-year period

10  thereafter, the division department may require any disability

11  beneficiary who has not yet attained his or her minimum

12  service retirement age to undergo a medical examination by a

13  physician licensed by this state and to submit any other

14  evidence of disability as required by the division department.

15  Should a disability beneficiary who has not yet attained his

16  or her minimum service retirement age refuse to submit to any

17  such medical examination, his or her retirement allowance

18  shall be discontinued until his or her withdrawal of such

19  refusal, and should such refusal continue for 1 year, all of

20  the disability beneficiary's rights in and to his or her

21  pension shall be forfeited.

22         (b)  If the division department finds that a disability

23  beneficiary is engaged in or is able to engage in a gainful

24  occupation paying more than the difference between his or her

25  disability retirement allowance and his or her average final

26  compensation, the amount of the beneficiary's pension shall be

27  reduced to an amount which, together with his or her annuity

28  and the amount earnable by him or her, shall equal the amount

29  of his or her average final compensation. Should the

30  beneficiary's earning capacity later be changed, the amount of

31  his or her pension may be further modified; provided that the

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  1  pension so modified shall not exceed the amount of the pension

  2  allowable under subsection (11), at the time of retirement,

  3  nor an amount which, when added to the amount earnable by the

  4  beneficiary, together with his or her annuity, equals the

  5  amount of his or her average final compensation.  A

  6  beneficiary restored to active service at a salary less than

  7  the average final compensation upon the basis of which he or

  8  she was retired shall not become a member of the retirement

  9  system at that time.

10         (13)  Should a member cease to be a teacher except by

11  death or by retirement under the provisions of this chapter,

12  the member shall be paid the amount of his or her accumulated

13  contributions.  Should a member die before retirement, the

14  amount of his or her accumulated contributions shall be paid

15  to such person, if any, as he or she shall have nominated by

16  written designation duly executed and filed with the division

17  department; otherwise, to his or her executors or

18  administrators.

19         (15A)(a)  Any member of the Teachers' Retirement System

20  who has heretofore, or who hereafter, retires with no less

21  than 10 years of creditable service and who has passed his or

22  her 65th birthday, may, upon application to the division

23  department, have his or her retirement allowance redetermined

24  and thereupon shall be entitled to a monthly service

25  retirement allowance which shall be equal to $4 multiplied by

26  the number of years of the member's creditable service which

27  shall be payable monthly during his or her retirement;

28  provided, that the amount of retirement allowance as

29  determined hereunder, shall be reduced by an amount equal to:

30         1.  Any social security benefits received by the

31  member, and

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  1         2.  Any social security benefits that the member is

  2  eligible to receive by reason of his or her own right or

  3  through his or her spouse.

  4         (b)  No payment shall be made to a member of the

  5  Teachers' Retirement System under this act, until the division

  6  department has determined the social security status of such

  7  member.

  8         (d)  The division department shall review, at least

  9  annually, the social security status of all members of the

10  Teachers' Retirement System receiving payment under this act

11  and shall increase or decrease payments to such members as

12  shall be necessary to carry out the intent of this act.

13         (16)(a)  Definitions under survivor benefits are:

14         1.  A dependent is a child, widow, widower, or parent

15  of the deceased member who was receiving not less than

16  one-half of his or her support from the deceased member at the

17  time of the death of such member.

18         2.  A child is a natural or legally adopted child of a

19  member, who:

20         a.  Is under 18 years of age, or

21         b.  Is over 18 years of age but not over 22 years of

22  age and is enrolled as a student in an accredited educational

23  institution, or

24         c.  Is 18 years of age or older and is physically or

25  mentally incapable of self-support, when such mental and

26  physical incapacity occurred prior to such child obtaining the

27  age of 18 years.  Such person shall cease to be regarded as a

28  child upon the termination of such physical or mental

29  disability.  The determination as to such physical or mental

30  incapability shall be vested in the division department.

31

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  1  No person shall be considered a child who has married or,

  2  except as provided in sub-subparagraph 2.b. or as to a child

  3  who is physically or mentally incapable of self-support as

  4  hereinbefore set forth, has become 18 years of age.

  5         3.  A parent is a natural parent of a member and

  6  includes a lawful spouse of a natural parent.

  7         4.  A beneficiary is a person who is entitled to

  8  benefits under this subsection by reason of his or her

  9  relation to a deceased member during the lifetime of such

10  member.

11         (d)  Limitations on rights of beneficiary are:

12         1.  The person named as beneficiary in paragraph (b)

13  shall, in no event, be entitled to receive the benefits set

14  out in such paragraph unless the death of the member under

15  whom such beneficiary claims occurs within the period of time

16  after the member has served in Florida as follows:

17

18  Minimum number of years                Period after serving in

19         of service in Florida                  Florida in which

20                                                 death of member

21                                                          occurs

22

23         3 to 5........................................2 years

24         6 to 9........................................5 years

25         10 or more...................................10 years

26

27         2.  Upon the death of a member, the division department

28  shall make a determination of the beneficiary or beneficiaries

29  of the deceased member and shall pay survivor benefits to such

30  beneficiary or beneficiaries beginning 1 month immediately

31  following the death of the member except where the beneficiary

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  1  has not reached the age required to receive benefits under

  2  paragraph (b), in which event the payment of survivor benefits

  3  shall begin as of the month immediately following the month in

  4  which the beneficiary reaches the required age.  When required

  5  by the division department, the beneficiary or beneficiaries

  6  shall file an application for survivor benefits upon forms

  7  prescribed by the division department.

  8         3.  The beneficiaries of a member to receive survivor

  9  benefits are fixed by this subsection, and a member may not

10  buy or otherwise change such benefits.  He or she may,

11  however, designate the beneficiary to receive the $500 death

12  benefits.  If a member fails to make this designation, the

13  $500 death benefits shall be paid to his or her executor or

14  administrator.

15         4.  The beneficiary or beneficiaries of a member whose

16  death occurs while he or she is in service or while he or she

17  is receiving a disability allowance under subsection (11),

18  shall receive survivor benefits under this subsection

19  determined by the years of service in Florida of the deceased

20  member as set out in paragraph (b).  The requirement that the

21  death of a member must occur within a certain period of time

22  after service in Florida as set out in subparagraph (d)1.

23  shall not apply to a member receiving a disability benefit at

24  the time of his or her death.

25         Section 76.  Paragraph (b) of subsection (5) and

26  subsections (2), (6), and (7) of section 238.08, Florida

27  Statutes, are amended to read:

28         238.08  Optional benefits.--A member may elect to

29  receive his or her benefits under the terms of this chapter

30  according to the provisions of any one of the following

31  options:

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  1         (2)  Option two. A member may elect to receive on

  2  retirement the actuarial equivalent (at that time) of his or

  3  her retirement allowance in a reduced retirement allowance

  4  payable throughout life, with the provisions that if the

  5  member dies before he or she has received in payment of his or

  6  her annuity the amount of his or her accumulated

  7  contributions, as they were at the time of his or her

  8  retirement, the balance shall be paid to such person, if any,

  9  as he or she shall nominate by written designation duly

10  acknowledged and filed with the division department;

11  otherwise, to his or her executors or administrators.

12         (5)

13         (b)  A member who elects Option three or Option four

14  shall, on a form provided for that purpose, designate his or

15  her spouse as beneficiary to receive the benefits which

16  continue to be payable upon the death of the member.  After

17  such benefits have commenced under Option three or Option

18  four, the retired member may change the designation of his or

19  her spouse as beneficiary only twice.  If such a retired

20  member remarries and wishes to make such a change, he or she

21  may do so by filing with the division department a notarized

22  change of spouse designation form and shall notify the former

23  spouse in writing of such change.  Upon receipt of a completed

24  change of spouse designation form, the division department

25  shall adjust the member's monthly benefit by the application

26  of actuarial tables and calculations developed to ensure that

27  the benefit paid is the actuarial equivalent of the present

28  value of the member's current benefit. The consent of a

29  retired member's formerly designated spouse as beneficiary to

30  any such change shall not be required.

31

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  1         (6)  Notwithstanding any provision in this chapter to

  2  the contrary, the following provisions shall apply to any

  3  member of the retirement system who has accumulated at least

  4  10 years of service and dies prior to retirement:

  5         (a)  If the deceased member's surviving spouse has

  6  previously received a refund of the member's accumulated

  7  contributions made to the retirement system, such spouse may

  8  pay to the division department an amount equal to the sum of

  9  the amount of the deceased member's contributions previously

10  refunded and regular interest compounded annually on the

11  amount of such refunded contributions from the date of refund

12  to the date of payment to the division department, and by so

13  doing be entitled to receive the monthly retirement benefit

14  provided in paragraph (c).

15         (b)  If the deceased member's surviving spouse has not

16  received a refund of the deceased member's accumulated

17  contributions, such spouse shall, upon application to the

18  division department within 30 days of the death of the member,

19  receive the monthly retirement benefit provided in paragraph

20  (c).

21         (c)  The monthly benefit payable to the spouse

22  described in paragraph (a) or paragraph (b) shall be the

23  amount which would have been payable to the deceased member's

24  spouse, assuming that the member retired on the date of his or

25  her death and had selected the option in subsection (3), such

26  benefit to be based on the ages of the spouse and member as of

27  the date of death of the member. The benefit shall commence on

28  the first day of the month following the payment of the

29  aforesaid amount to the division department, if paragraph (a)

30  is applicable, or on the first day of the month following the

31

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  1  receipt of the spouse's application by the division

  2  department, if paragraph (b) is applicable.

  3         (7)  The surviving spouse or other dependent of any

  4  member whose employment is terminated by death shall, upon

  5  application to the division department, be permitted to pay

  6  the required contributions for any service performed by the

  7  member which could have been claimed by the member at the time

  8  of his or her death.  Such service shall be added to the

  9  creditable service of the member and shall be used in the

10  calculation of any benefits which may be payable to the

11  surviving spouse or other surviving dependent.

12         Section 77.  Paragraphs (a), (c), and (d) of subsection

13  (1), paragraphs (b), (c), and (e) of subsection (3), and

14  paragraph (b) of subsection (5) of section 238.09, Florida

15  Statutes, are amended to read:

16         238.09  Method of financing.--All of the assets of the

17  retirement system shall be credited, according to the purposes

18  for which they are held, to one of four funds; namely, the

19  Annuity Savings Trust Fund, the Pension Accumulation Trust

20  Fund, the Expense Trust Fund, and the Survivors' Benefit Trust

21  Fund.

22         (1)  The Annuity Savings Trust Fund shall be a fund in

23  which shall be accumulated contributions made from the

24  salaries of members under the provisions of paragraph (c) or

25  paragraph (f). Contribution to, payments from, the Annuity

26  Savings Trust Fund shall be made as follows:

27         (a)  With respect to plan A, B, C, or D, upon the basis

28  of such tables as the division Department of Management

29  Services shall adopt, and regular interest, the actuary of the

30  retirement system shall determine for each member the

31  proportion of earnable compensation which, when deducted from

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  1  each payment of his or her prospective earnable annual

  2  compensation prior to his or her minimum service retirement

  3  age, and accumulated at regular interest until such age, shall

  4  be computed to provide at such age:

  5         1.  An annuity equal to one one-hundred-fortieth of his

  6  or her average final compensation multiplied by the number of

  7  his or her years of membership in the case of each member

  8  electing to retire under the provisions of plan A or B.

  9         2.  An annuity equal to one one-hundred-twentieth of

10  his or her average final compensation multiplied by the number

11  of his or her years of membership service in the case of each

12  member electing to retire under the provisions of plan C.

13         3.  An annuity equal to one one-hundredth of his or her

14  average final compensation multiplied by the number of his or

15  her years of membership service in the case of each member

16  electing to retire under the provisions of plan D.

17

18  In the case of any member who has attained his or her minimum

19  service retirement age prior to becoming a member, the

20  proportion of salary applicable to such member, with respect

21  to plan A, B, C, or D, shall be the proportion computed for

22  the age 1 year younger than his or her minimum service

23  retirement age.

24         (c)  The division department shall certify to each

25  employer the proportion of the earnable compensation of each

26  member who is compensated by the employer, and the employer

27  shall cause to be deducted from the salary of each member on

28  each and every payroll for each and every payroll period an

29  amount equal to the proportion of the member's earnable

30  compensation so computed.  With respect to plan A, B, C, or D,

31  the employer shall not make any deduction for annuity purposes

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  1  from the compensation of a member who has attained the age of

  2  60 years, if such member elects not to contribute.

  3         (d)  In determining the amount earnable by a member in

  4  a payroll period, the division department may consider the

  5  rate of compensation payable to such member on the first day

  6  of the payroll period as continuing throughout such payroll

  7  period, and it may omit deductions from compensation for any

  8  period less than a full payroll period if a teacher was not a

  9  member on the first day of the payroll period, and to

10  facilitate the making of deductions, it may modify any

11  deduction required of any member by such an amount as shall

12  not exceed one-tenth of 1 percent of the annual salary from

13  which said deduction is to be made.

14         (3)  The Pension Accumulation Trust Fund shall be the

15  fund in which shall be accumulated all reserves for the

16  payment of all annuities or benefits in lieu of annuities on

17  retired members and all pensions and other benefits payable

18  from contributions made by the members and by the employers,

19  from which annuities, pensions and benefits in lieu thereof

20  shall be paid. Contributions to, and payments from, the

21  Pension Accumulation Trust Fund, other than as set forth in

22  subsections (2) and (3) herein, shall be made as follows:

23         (b)  On the basis of regular interest and of such

24  mortality and other tables as shall be adopted by the division

25  department, the actuary engaged by the division department to

26  make each valuation required by this chapter shall, during the

27  period over which the accrued liability contribution is

28  payable, determine, immediately after making such valuation,

29  the uniform and constant percentage of the earnable

30  compensation of the average new entrant, which, if contributed

31  on the basis of his or her compensation throughout his or her

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  1  entire period of service, would be sufficient to provide for

  2  the payment of any pension payable by the state on his or her

  3  account.  The rate percent so determined shall be known as the

  4  normal contribution rate.  After the accrued liability

  5  contribution has ceased to be payable, the normal contribution

  6  rate shall be the rate percent of the earnable compensation of

  7  all members, obtained by deducting from the total liabilities

  8  of the Pension Accumulation Trust Fund the amount of the funds

  9  in hand to the credit of that fund and dividing the remainder

10  by 1 percent of the present value of the prospective future

11  salaries of all members as computed on the basis of the

12  mortality and service tables adopted by the division

13  department and on the basis of regular interest.  The normal

14  rate of contribution shall be determined and certified to the

15  division department by the actuary after each valuation and

16  shall continue in force until a new valuation and

17  certification are made.

18         (c)  Immediately succeeding the first valuation, the

19  actuary engaged by the division department shall compute the

20  rate percent of the total earnable compensation of all members

21  which is equivalent to 4 percent of the amount of the total

22  liability for pensions on account of all members and

23  beneficiaries and not dischargeable by the present assets of

24  the Pension Accumulation Trust Fund and by the aforesaid

25  normal contribution if made on account of such members during

26  the remainder of their active service.  The rate percent,

27  originally so determined, shall be known as the accrued

28  liability contribution rate.

29         (e)  The accrued liability contribution shall be

30  discontinued as soon as the accumulated reserve in the Pension

31  Accumulation Trust Fund shall equal the present value, as

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  1  actuarially computed and approved by the division department,

  2  of the total liability of such fund less the present value,

  3  computed on the basis of the normal contribution rate, then in

  4  force of the prospective normal contributions to be received

  5  on account of persons who are at that time members.

  6         (5)

  7         (b)  The division department shall annually certify to

  8  each employer, at the time it makes the certification to the

  9  employer under paragraph (1)(c), the rate of

10  twenty-five-hundredths percent to be applied by the employer

11  to the salary of each member who is compensated by the

12  employer, and the employer shall cause to be deducted from the

13  salary of each member on each and every payroll for each and

14  every payroll period an amount equal to twenty-five-hundredths

15  percent of the member's salary paid by the employer and the

16  employer shall remit monthly such deducted amounts to the

17  division department which shall place the same in the

18  Survivors' Benefit Trust Fund of the Teachers' Retirement

19  System of the state. The amount of contributions by a member

20  to the Survivors' Benefit Trust Fund shall, in no event, be

21  refundable to the member or his or her beneficiaries.

22         Section 78.  Section 238.10, Florida Statutes, is

23  amended to read:

24         238.10  Management of funds.--The division Department

25  of Management Services, annually, shall allow regular interest

26  on the amount for the preceding year to the credit of each of

27  the funds of the retirement system, and to the credit of the

28  individual account therein, if any, with the exception of the

29  expense fund, from the interest and dividends earned from

30  investments.

31

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  1         Section 79.  Paragraph (b) of subsection (1) and

  2  subsections (2) and (3) of section 238.11, Florida Statutes,

  3  are amended to read:

  4         238.11  Collection of contributions.--

  5         (1)  The collection of contributions shall be as

  6  follows:

  7         (b)  Each employer shall transmit monthly to the

  8  division Department of Management Services a warrant for the

  9  total amount of such deductions. Each employer shall also

10  transmit monthly to the division department a warrant for such

11  employer contribution set aside as provided for in paragraph

12  (a) of this subsection. The division department, after making

13  records of all such warrants, shall transmit them to the

14  Department of Banking and Finance for delivery to the

15  Treasurer of the state who shall collect them.

16         (2)  The collection of the state contribution shall be

17  made as follows:

18         (a)  The amounts required to be paid by the state into

19  the Teachers' Retirement System in this chapter shall be

20  provided therefor in the General Appropriations Act.  However,

21  in the event a sufficient amount is not included in the

22  General Appropriations Act to meet the full amount needed to

23  pay the retirement compensation provided for in this chapter,

24  the additional amount needed for such retirement compensation

25  is hereby appropriated from the General Revenue Fund as

26  approved by the division Department of Management Services.

27         (b)  The division Department of Management Services

28  shall certify one-fourth of the amount so ascertained for each

29  year to the Comptroller on or before the last day of July,

30  October, January, and April of each year.  The Comptroller

31  shall, on or before the first day of August, November,

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  1  February, and May of each year, draw his or her warrant or

  2  warrants on the Treasurer for the respective amounts due the

  3  several funds of the retirement system.  On the receipt of the

  4  warrant or warrants of the Comptroller, the Treasurer shall

  5  immediately transfer to the several funds of the retirement

  6  system the amounts due.

  7         (3)  All collection of contributions of a nonprofit

  8  professional association or corporation of teachers as

  9  referred to in s. 238.01(3) and (5) shall be made by such

10  association or corporation in the following manner:

11         (a)  On April 1 of each year, the division Department

12  of Management Services shall certify to any such nonprofit

13  professional association or corporation of teachers the

14  amounts which will become due and payable during the ensuing

15  fiscal year to each of the funds of the retirement system to

16  which such contributions are payable as set forth in this law.

17         (b)  The division Department of Management Services

18  shall certify one-fourth of the amount so ascertained for each

19  year to the nonprofit professional association or corporation

20  of teachers on or before the last day of July, October,

21  January, and April of each year.  The nonprofit professional

22  association or corporation of teachers shall, on or before the

23  first day of August, November, February, and May of each year,

24  draw its check payable to the division department for the

25  respective amounts due the several funds of the retirement

26  system. Upon receipt of the check, the division department

27  shall immediately transfer to the several funds of the

28  retirement system the amounts due, provided, however, that the

29  amounts due the several funds of the retirement system from

30  any such association or corporation for creditable service

31

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  1  accruing to any such member before July 1, 1947, shall be paid

  2  prior to the retirement of any such member.

  3         Section 80.  Section 238.12, Florida Statutes, is

  4  amended to read:

  5         238.12  Duties of employers.--

  6         (1)  Each employer shall keep such records and, from

  7  time to time, shall furnish such information as the division

  8  Department of Management Services may require in the discharge

  9  of its duties.  Upon the employment of any teacher to whom

10  this chapter may apply, the teacher shall be informed by his

11  or her employer of his or her duties and obligations in

12  connection with the retirement system as a condition of his or

13  her employment.  Every teacher accepting employment shall be

14  deemed to consent and agree to any deductions from his or her

15  compensation required in this chapter and to all other

16  provisions of this chapter.

17         (2)  During September of each year, or at such other

18  time as the division department shall approve, each employer

19  shall certify to the division department the names of all

20  teachers to whom this chapter applies.

21         (3)  Each employer shall, on the first day of each

22  calendar month, or at such less frequent intervals as the

23  division department may approve, notify the division

24  department of the employment of new teachers, removals,

25  withdrawals and changes in salary of members that have

26  occurred during the preceding month, or the period covered

27  since the last notification.

28         Section 81.  Section 238.14, Florida Statutes, is

29  amended to read:

30         238.14  Protection against fraud.--Any person who shall

31  knowingly make any false statement, or shall falsify or permit

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  1  to be falsified any record or records of this retirement

  2  system in any attempt to defraud such system as a result of

  3  such act, shall be guilty of a misdemeanor of the second

  4  degree, punishable as provided in s. 775.082 or s. 775.083.

  5  Should any change or error in records result in any member or

  6  beneficiary receiving from the retirement system more or less

  7  than he or she would have been entitled to receive had the

  8  records been correct, then on discovery of any such error the

  9  division department shall correct such error, and, as far as

10  practicable, shall adjust the payments in such a manner that

11  the actuarial equivalent of the benefit, to which such member

12  or beneficiary was correctly entitled, shall be paid.

13         Section 82.  Section 238.15, Florida Statutes, is

14  amended to read:

15         238.15  Exemption of funds from taxation, execution,

16  and assignment.--The pensions, annuities or any other benefits

17  accrued or accruing to any person under the provisions of this

18  chapter and the accumulated contributions and cash securities

19  in the funds created under this chapter are exempted from any

20  state, county or municipal tax of the state, and shall not be

21  subject to execution or attachment or to any legal process

22  whatsoever, and shall be unassignable, except:

23         (1)  That any teacher who has retired shall have the

24  right and power to authorize in writing the division

25  Department of Management Services to deduct from his or her

26  monthly retirement allowance money for the payment of the

27  premiums on group insurance for hospital, medical and surgical

28  benefits, under a plan or plans for such benefits approved in

29  writing by the Insurance Commissioner and Treasurer of the

30  state, and upon receipt of such request the division

31  department shall make the monthly payments as directed; and

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  1         (2)  As may be otherwise specifically provided for in

  2  this chapter.

  3         Section 83.  Paragraph (b) of subsection (3) of section

  4  238.171, Florida Statutes, is amended to read:

  5         238.171  Monthly allowance; when made.--

  6         (3)

  7         (b)  On July 1, 1975, and each July 1 thereafter, the

  8  division Department of Management Services shall adjust the

  9  monthly allowance being paid on said date.  The percentage of

10  such adjustment shall be equal to the percentage change in the

11  average cost-of-living index during the preceding 12-month

12  period, April 1 through March 31, ignoring changes in the

13  cost-of-living index which are greater than 3 percent during

14  the preceding fiscal year.

15

16  For purposes of the July 1, 1981, implementation of the

17  adjustment provided in paragraph (b), the monthly allowance

18  being paid on that date shall be equal to the allowance as

19  adjusted by this paragraph, and the adjustment provided in

20  paragraph (b) shall be in addition to the adjustment provided

21  by this paragraph.

22         Section 84.  Paragraphs (b), (c), (d), (e), and (f) of

23  subsection (2) of section 238.181, Florida Statutes, are

24  amended to read:

25         238.181  Reemployment after retirement; conditions and

26  limitations.--

27         (2)

28         (b)  Any person to whom the limitation in paragraph (a)

29  applies who violates such reemployment limitation and who is

30  reemployed with any agency participating in the Florida

31  Retirement System before completion of the 12-month limitation

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  1  period shall give timely notice of this fact in writing to his

  2  or her employer and to the division Department of Management

  3  Services and shall have his or her retirement benefits

  4  suspended for the balance of the 12-month limitation period.

  5  Any person employed in violation of this paragraph and any

  6  employing agency which knowingly employs or appoints such

  7  person without notifying the division department to suspend

  8  retirement benefits shall be jointly and severally liable for

  9  reimbursement to the retirement trust fund of any benefits

10  paid during the reemployment limitation period.  To avoid

11  liability, such employing agency shall have a written

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

13  a state-administered retirement system.  Any retirement

14  benefits received while reemployed during this reemployment

15  limitation period shall be repaid to the retirement trust

16  fund, and retirement benefits shall remain suspended until

17  such repayment has been made.  Benefits suspended beyond the

18  reemployment limitation shall apply toward repayment of

19  benefits received in violation of the reemployment limitation.

20         (c)  A district school board may reemploy a retired

21  member as a substitute or hourly teacher on a noncontractual

22  basis after he or she has been retired for 1 calendar month,

23  in accordance with s. 121.021(39).  Any retired member who is

24  reemployed within 1 calendar month after retirement shall void

25  his or her application for retirement benefits.  District

26  school boards reemploying such teachers are subject to the

27  retirement contribution required by paragraph (g).

28  Reemployment of a retired member as a substitute or hourly

29  teacher is limited to 780 hours during the first 12 months of

30  his or her retirement.  Any retired member reemployed for more

31  than 780 hours during his or her first 12 months of retirement

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  1  shall give timely notice in writing to his or her employer and

  2  to the division department of the date he or she will exceed

  3  the limitation.  The division department shall suspend his or

  4  her retirement benefits for the remainder of his or her first

  5  12 months of retirement.  Any person employed in violation of

  6  this paragraph and any employing agency which knowingly

  7  employs or appoints such person without notifying the division

  8  department to suspend retirement benefits shall be jointly and

  9  severally liable for reimbursement to the retirement trust

10  fund of any benefits paid during the reemployment limitation

11  period.  To avoid liability, such employing agency shall have

12  a written statement from the retiree that he or she is not

13  retired from a state-administered retirement system.  Any

14  retirement benefits received by a retired member while

15  reemployed in excess of 780 hours during his or her first 12

16  months of retirement shall be repaid to the Retirement System

17  Trust Fund, and his or her retirement benefits shall remain

18  suspended until repayment is made.  Benefits suspended beyond

19  the end of the retired member's first 12 months of retirement

20  shall apply toward repayment of benefits received in violation

21  of the 780-hour reemployment limitation.

22         (d)  A community college board of trustees may reemploy

23  a retired member as an adjunct instructor, that is, an

24  instructor who is noncontractual and part time, or as a

25  participant in a phased retirement program within a community

26  college, after he or she has been retired for 1 calendar

27  month, in accordance with s. 121.021(39).  Any retired member

28  who is reemployed within 1 calendar month after retirement

29  shall void his or her application for retirement benefits.

30  Boards of trustees reemploying such instructors are subject to

31  the retirement contribution required in paragraph (g).  A

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  1  retired member may be reemployed as an adjunct instructor for

  2  no more than 780 hours during the first 12 months of his or

  3  her retirement.  Any retired member reemployed for more than

  4  780 hours during his or her first 12 months of retirement

  5  shall give timely notice in writing to his or her employer and

  6  to the division department of the date he or she will exceed

  7  the limitation. The division department shall suspend his or

  8  her retirement benefits for the remainder of his or her first

  9  12 months of retirement.  Any person employed in violation of

10  this paragraph and any employing agency which knowingly

11  employs or appoints such person without notifying the division

12  department to suspend retirement benefits shall be jointly and

13  severally liable for reimbursement to the retirement trust

14  fund of any benefits paid during the reemployment limitation

15  period.  To avoid liability, such employing agency shall have

16  a written statement from the retiree that he or she is not

17  retired from a state-administered retirement system.  Any

18  retirement benefits received by a retired member while

19  reemployed in excess of 780 hours during his or her first 12

20  months of retirement shall be repaid to the Retirement System

21  Trust Fund, and retirement benefits shall remain suspended

22  until repayment is made. Benefits suspended beyond the end of

23  the retired member's first 12 months of retirement shall apply

24  toward repayment of benefits received in violation of the

25  780-hour reemployment limitation.

26         (e)  The Board of Trustees of the Florida School for

27  the Deaf and the Blind may reemploy a retired member as a

28  substitute teacher, substitute residential instructor, or

29  substitute nurse on a noncontractual basis after he or she has

30  been retired for 1 calendar month, in accordance with s.

31  121.021(39). Any retired member who is reemployed within 1

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  1  calendar month after retirement shall void his or her

  2  application for retirement benefits. The Board of Trustees of

  3  the Florida School for the Deaf and the Blind reemploying such

  4  teachers, residential instructors, or nurses is subject to the

  5  retirement contribution required by paragraph (g).

  6  Reemployment of a retired member as a substitute teacher,

  7  substitute residential instructor, or substitute nurse is

  8  limited to 780 hours during the first 12 months of his or her

  9  retirement. Any retired member reemployed for more than 780

10  hours during his or her first 12 months of retirement shall

11  give timely notice in writing to his or her employer and to

12  the division department of the date he or she will exceed the

13  limitation.  The division department shall suspend his or her

14  retirement benefits for the remainder of his or her first 12

15  months of retirement.  Any person employed in violation of

16  this paragraph and any employing agency which knowingly

17  employs or appoints such person without notifying the division

18  department to suspend retirement benefits shall be jointly and

19  severally liable for reimbursement to the retirement trust

20  fund of any benefits paid during the reemployment limitation

21  period.  To avoid liability, such employing agency shall have

22  a written statement from the retiree that he or she is not

23  retired from a state-administered retirement system.  Any

24  retirement benefits received by a retired member while

25  reemployed in excess of 780 hours during his or her first 12

26  months of retirement shall be repaid to the Retirement System

27  Trust Fund, and his or her retirement benefits shall remain

28  suspended until payment is made.  Benefits suspended beyond

29  the end of the retired member's first 12 months of retirement

30  shall apply toward repayment of benefits received in violation

31  of the 780-hour reemployment limitation.

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  1         (f)  The State University System may reemploy a retired

  2  member as an adjunct faculty member or as a participant in a

  3  phased retirement program within the State University System

  4  after the retired member has been retired for 1 calendar

  5  month, in accordance with s. 121.021(39).  Any retired member

  6  who is reemployed within 1 calendar month after retirement

  7  shall void his or her application for retirement benefits. The

  8  State University System is subject to the retired contribution

  9  required in paragraph (g), as appropriate. A retired member

10  may be reemployed as an adjunct faculty member or a

11  participant in a phased retirement program for no more than

12  780 hours during the first 12 months of his or her retirement.

13  Any retired member reemployed for more than 780 hours during

14  his or her first 12 months of retirement shall give timely

15  notice in writing to his or her employer and to the division

16  department of the date he or she will exceed the limitation.

17  The division department shall suspend his or her retirement

18  benefits for the remainder of his or her first 12 months of

19  retirement.  Any person employed in violation of this

20  paragraph and any employing agency which knowingly employs or

21  appoints such person without notifying the division department

22  to suspend retirement benefits shall be jointly and severally

23  liable for reimbursement to the retirement trust fund of any

24  benefits paid during the reemployment limitation period.  To

25  avoid liability, such employing agency shall have a written

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

27  a state-administered retirement system.  Any retirement

28  benefits received by a retired member while reemployed in

29  excess of 780 hours during his or her first 12 months of

30  retirement shall be repaid to the Retirement System Trust

31  Fund, and retirement benefits shall remain suspended until

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  1  repayment is made.  Benefits suspended beyond the end of the

  2  retired member's first 12 months of retirement shall apply

  3  toward repayment of benefits received in violation of the

  4  780-hour reemployment limitation.

  5         Section 85.  Section 238.32, Florida Statutes, is

  6  amended to read:

  7         238.32  Service credit in disputed cases.--The division

  8  Department of Management Services may in its discretion allow

  9  or deny a member service credit in disputed or doubtful cases

10  for employment in Florida and out-of-state schools in order to

11  serve the best interests of the state and the member, subject

12  to the membership dates set forth in s. 238.06(4).

13         Section 86.  Subsection (4) of section 650.02, Florida

14  Statutes, is amended to read:

15         650.02  Definitions.--For the purpose of this chapter:

16         (4)  The term "state agency" means the Division of

17  Retirement of the State Board of Administration Department of

18  Management Services.

19         Section 87.  This act shall take effect July 1, 2000.

20

21            *****************************************

22                          HOUSE SUMMARY

23
      Transfers the Division of Retirement and the State
24    Retirement Commission from the Department of Management
      Services to the State Board of Administration. See bill
25    for details.

26

27

28

29

30

31

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