House Bill 2393er

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    2000 Legislature                     HB 2393, Second Engrossed



  1

  2         An act relating to retirement; amending s.

  3         112.65, F.S.; providing that certain benefits

  4         under chapter 121, F.S., shall be considered

  5         supplemental benefits; amending s. 121.021,

  6         F.S.; redefining the term "system" with respect

  7         to the Florida Retirement System; designating

  8         ss. 121.011-121.45, F.S., as part I of chapter

  9         121, F.S.; designating ss. 121.4501-121.571,

10         F.S., as part II of chapter 121, F.S.; creating

11         s. 121.4501, F.S.; directing the State Board of

12         Administration to establish an optional defined

13         contribution retirement program for members of

14         the Florida Retirement System; providing

15         definitions; providing for eligibility and

16         retirement service credit; providing for

17         participation and enrollment; providing for

18         contributions; providing vesting requirements;

19         providing benefits; providing for

20         administration; providing for investment

21         options or products; providing for performance

22         review; providing for an education component;

23         providing participant information requirements;

24         providing that advisory committees shall

25         provide advice and assistance; providing for

26         federal requirements; providing an investment

27         policy statement; providing a statement of

28         fiduciary standards and responsibilities;

29         providing for disability benefits; providing

30         for social security and health insurance

31         subsidy coverage; creating s. 121.571, F.S.;


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  1         providing for contributions; amending ss.

  2         121.021, 121.051, 121.0515, 121.052, 121.053,

  3         121.081, 121.1115, 121.1122, 121.121, and

  4         215.32, F.S.; providing that members employed

  5         in a regularly established position shall be

  6         vested after 6 years of creditable service;

  7         conforming to the act; amending s. 112.665,

  8         F.S.; correcting cross references to conform to

  9         the act; amending s. 121.091, F.S.; upgrading

10         service credit for certain years for special

11         risk members; providing funding for the benefit

12         increase; providing a contingent contribution

13         rate increase; amending s. 121.091, F.S.;

14         reducing the service time required to qualify

15         for disability benefits to 8 years; amending s.

16         112.363, F.S.; revising provisions relating to

17         the retiree health insurance subsidy to include

18         applicability to retirees under the optional

19         retirement program; amending s. 121.055, F.S.;

20         increasing the number of personnel that may be

21         designated as Senior Management Service Class

22         by local governments; requiring participation

23         in the Senior Management Service Class by

24         certain legal staff; allowing senior management

25         optional annuity program benefits to be

26         distributed through a direct rollover;

27         providing for funding of the revision of the

28         Florida Retirement System by this act; revising

29         contribution rates as part of the funding

30         process; providing implementation requirements

31         for the State Board of Administration, the


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    2000 Legislature                     HB 2393, Second Engrossed



  1         Department of Management Services, and

  2         participating employers; amending s. 121.031,

  3         F.S.; requiring an actuarial study of the

  4         retirement system at least annually; requiring

  5         the actuarial model to include a rate

  6         stabilization mechanism; defining the

  7         mechanism; requiring a report on the effects of

  8         6-year vesting on the disability benefit and

  9         the health insurance subsidy; amending s.

10         121.021, F.S.; including certain

11         community-based correctional probation officers

12         within the Special Risk Class of the Florida

13         Retirement System; amending s. 121.0515, F.S.;

14         specifying criteria for inclusion of

15         community-based correctional probation officers

16         in the Special Risk Class; providing for

17         inclusion of probation and parole circuit and

18         deputy circuit administrators in the Special

19         Risk Class; including certain members of the

20         system who are employed by the Department of

21         Corrections or the Department of Children and

22         Family Services for membership in the special

23         risk class; providing exceptions; providing a

24         finding of important state interest; directing

25         the State Board of Administration to request an

26         opinion from the Internal Revenue Service;

27         providing future effect for certain provisions;

28         providing a contingent effective date.

29

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

31


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  1         Section 1.  Subsection (1) of section 112.65, Florida

  2  Statutes, is amended to read:

  3         112.65  Limitation of benefits.--

  4         (1)  ESTABLISHMENT OF PROGRAM.--The normal retirement

  5  benefit or pension payable to a retiree who becomes a member

  6  of any retirement system or plan and who has not previously

  7  participated in such plan, on or after January 1, 1980, shall

  8  not exceed 100 percent of his or her average final

  9  compensation.  However, nothing contained in this section

10  shall apply to supplemental retirement benefits or to pension

11  increases attributable to cost-of-living increases or

12  adjustments. For the purposes of this section, benefits

13  accruing in individual participant accounts established under

14  the Public Employee Optional Retirement Program established in

15  part II of chapter 121 are considered supplemental benefits.

16  As used in this section, the term "average final compensation"

17  means the average of the member's earnings over a period of

18  time which the governmental entity has established by statute,

19  charter, or ordinance.

20         Section 2.  Subsection (3) of section 121.021, Florida

21  Statutes, is amended to read:

22         121.021  Definitions.--The following words and phrases

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

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

25         (3)  "System" means the general retirement system

26  established by this chapter to be known and cited as the

27  "Florida Retirement System," including, but not limited to,

28  the defined benefit retirement program administered under the

29  provisions of part I of this chapter and the defined

30  contribution retirement program known as the Public Employee

31


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  1  Optional Retirement Program and administered under the

  2  provisions of part II of this chapter."

  3         Section 3.  Chapter 121, Florida Statutes, is

  4  designated as part I of said chapter, and part II, consisting

  5  of sections 121.4501 through 121.571, is created to read:

  6         121.4501  Public Employee Optional Retirement

  7  Program.--

  8         (1)  The Trustees of the State Board of Administration

  9  shall establish an optional defined contribution retirement

10  program for members of the Florida Retirement System under

11  which retirement benefits will be provided for eligible

12  employees who elect to participate in the program. The

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

14  such optional retirement program shall be provided through

15  employee-directed investments, in accordance with s. 401(a) of

16  the Internal Revenue Code and its related regulations. The

17  employers shall contribute, as provided in this section and s.

18  121.571, toward the funding of such optional benefits.

19         (2)  DEFINITIONS.--As used in this section, the term:

20         (a)  "Approved provider" or "provider" means a private

21  sector company that is selected and approved by the state

22  board to offer one or more investment products or services to

23  the Public Employee Optional Retirement Program. Private

24  sector companies include investment management companies,

25  insurance companies, depositories, and mutual fund companies.

26         (b)  "Department" means the Department of Management

27  Services.

28         (c)  "Division" means the Division of Retirement within

29  the Department of Management Services.

30         (d)  "Eligible employee" means an officer or employee,

31  as defined in s. 121.021(11), who:


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  1         1.  Is a member of, or is eligible for membership in,

  2  the Florida Retirement System;

  3         2.  Participates in, or is eligible to participate in,

  4  the Senior Management Service Optional Annuity Program as

  5  established under s. 121.055(6); or

  6         3.  Is eligible to participate in, but does not

  7  participate in, the State University System Optional

  8  Retirement Program established under s. 121.35 or the State

  9  Community College System Optional Retirement Program

10  established under s. 121.051(2)(c).

11

12  The term does not include any renewed member of the Florida

13  Retirement System, any member participating in the Deferred

14  Retirement Option Program established under s. 121.091(13), or

15  any employee participating in an optional retirement program

16  established under s. 121.35 or s. 121.051(2)(c).

17         (e)  "Employer" means an employer, as defined in s.

18  121.021(10), of an eligible employee.

19         (f)  "Participant" means an eligible employee who

20  elects to participate in the Public Employee Optional

21  Retirement Program and enrolls in such optional program as

22  provided in subsection (4).

23         (g)  "Public Employee Optional Retirement Program,"

24  "optional program" or "optional retirement program" means the

25  alternative defined contribution retirement program

26  established under this section.

27         (h)  "State board" or "board" means the State Board of

28  Administration.

29         (i)  "Trustees" means Trustees of the State Board of

30  Administration.

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  1         (j)  "Vested" or "vesting" means the guarantee that a

  2  participant is eligible to receive a retirement benefit upon

  3  completion of the required years of service under the Public

  4  Employee Optional Retirement Program.

  5         (3)  ELIGIBILITY; RETIREMENT SERVICE CREDIT.--

  6         (a)  Participation in the Public Employee Optional

  7  Retirement Program is limited to eligible employees.

  8  Participation in the optional retirement program is in lieu of

  9  participation in the defined benefit program of the Florida

10  Retirement System.

11         (b)  An eligible employee who is a member of the

12  defined benefit retirement program of the Florida Retirement

13  System at the time of his or her election to participate in

14  the Public Employee Optional Retirement Program shall retain

15  all retirement service credit earned under the defined benefit

16  retirement program of the Florida Retirement System as

17  credited under the system and shall be entitled to a deferred

18  benefit upon termination, if eligible under the system.

19  However, election to participate in the Public Employee

20  Optional Retirement Program terminates the active membership

21  of the employee in the defined benefit program of the Florida

22  Retirement System, and the service of a participant in the

23  Public Employee Optional Retirement Program shall not be

24  creditable under the defined benefit retirement program of the

25  Florida Retirement System for purposes of benefit accrual but

26  shall be credited for purposes of vesting.

27         (c)1.  Notwithstanding paragraph (b), each eligible

28  employee who elects to participate in the Public Employee

29  Optional Retirement Program and establishes one or more

30  individual participant accounts under the optional program may

31  elect to transfer to the optional program a sum representing


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  1  the present value of the employee's accumulated benefit

  2  obligation under the defined benefit retirement program of the

  3  Florida Retirement System. Upon such transfer, all service

  4  credit previously earned under the defined benefit program of

  5  the Florida Retirement System shall be nullified for purposes

  6  of entitlement to a future benefit under the defined benefit

  7  program of the Florida Retirement System. A participant is

  8  precluded from transferring the accumulated benefit obligation

  9  balance from the defined benefit program upon the expiration

10  of the period afforded to enroll in the optional program.

11         2.  For purposes of this subsection, the present value

12  of the member's accumulated benefit obligation is based upon

13  the member's estimated creditable service and estimated

14  average final compensation as of midnight of the day prior to

15  the opening of the election window for the employee. The

16  actuarial present value of the employee's accumulated benefit

17  obligation shall be based on the following:

18         a.  The discount rate and other relevant actuarial

19  assumptions used to value the Florida Retirement System Trust

20  Fund at the time the amount to be transferred is determined,

21  consistent with the factors provided in sub-subparagraphs b.

22  and c.

23         b.  A benefit commencement age, based on the member's

24  estimated creditable service as of midnight on May 31, 2002.

25  The benefit commencement age shall be the younger of the

26  following, but shall not be younger than the member's age as

27  of midnight on May 31, 2002:

28         (I)  Age 62; or

29         (II)  The age the member would attain if the member

30  completed 30 years of service with an employer, assuming the

31  member worked continuously from May 31, 2002, and disregarding


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  1  any vesting requirement that would otherwise apply under the

  2  defined benefit program of the Florida Retirement System.

  3         c.  For members of the Special Risk Class and for

  4  members of the Special Risk Administrative Support Class

  5  entitled to retain special risk normal retirement date, the

  6  benefit commencement age shall be the younger of the

  7  following, but shall not be younger than the member's age as

  8  of midnight on May 31, 2002:

  9         (I)  Age 55; or

10         (II)  The age the member would attain if the member

11  completed 25 years of service with an employer, assuming the

12  member worked continuously from May 31, 2002, and disregarding

13  any vesting requirement that would otherwise apply under the

14  defined benefit program of the Florida Retirement System.

15         d.  The calculation shall disregard vesting

16  requirements and early retirement reduction factors that would

17  otherwise apply under the defined benefit retirement program.

18         3.  For each participant who elects to transfer moneys

19  from the defined benefit program to his or her account in the

20  optional program, the division shall recompute the amount

21  transferred under subparagraph 2. not later than 60 days after

22  the actual transfer of funds based upon the participant's

23  actual creditable service and actual final average

24  compensation as of the initial date of participation in the

25  optional program. If the recomputed amount differs from the

26  amount transferred under subparagraph 2. by $10 or more, the

27  division shall:

28         a.  Transfer, or cause to be transferred, from the

29  Florida Retirement System Trust Fund to the participant's

30  account in the optional program the excess, if any, of the

31  recomputed amount over the previously transferred amount


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  1  together with interest from the initial date of transfer to

  2  the date of transfer under this subparagraph, based upon 8

  3  percent effective annual interest, compounded annually.

  4         b.  Transfer, or cause to be transferred, from the

  5  participant's account to the Florida Retirement System Trust

  6  Fund the excess, if any, of the previously transferred amount

  7  over the recomputed amount, together with interest from the

  8  initial date of transfer to the date of transfer under this

  9  subparagraph, based upon 6 percent effective annual interest,

10  compounded annually, pro rata based on the participant's

11  allocation plan.

12         4.  As directed by the participant, the board shall

13  transfer or cause to be transferred the appropriate amounts to

14  the designated accounts. The board shall establish transfer

15  procedures by rule, but the actual transfer shall not be later

16  than 30 days after the effective date of the member's

17  participation in the optional program. Transfers are not

18  commissionable or subject to other fees and may be in the form

19  of securities or cash as determined by the state board. Such

20  securities shall be valued as of the date of receipt in the

21  participant's account.

22         5.  If the board or the division receives notification

23  from the United States Internal Revenue Service that this

24  paragraph or any portion of this paragraph will cause the

25  retirement system, or a portion thereof, to be disqualified

26  for tax purposes under the Internal Revenue Code, then the

27  portion that will cause the disqualification does not apply.

28  Upon such notice, the state board and the division shall

29  notify the presiding officers of the Legislature.

30         (4)  PARTICIPATION; ENROLLMENT.--

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  1         (a)1.  With respect to an eligible employee who is

  2  employed in a regularly established position on June 1, 2002,

  3  by a state employer:

  4         a.  Any such employee may elect to participate in the

  5  Public Employee Optional Retirement Program in lieu of

  6  retaining his or her membership in the defined benefit program

  7  of the Florida Retirement System. The election must be made in

  8  writing or by electronic means and must be filed with the

  9  department and the personnel officer of the employer within 90

10  days after June 1, 2002, or, in the case of an active employee

11  who is on a leave of absence on June 1, 2002, within 90 days

12  after the conclusion of the leave of absence. This election is

13  irrevocable, except as provided in paragraph (e). Upon making

14  such election, the employee shall be enrolled as a participant

15  of the Public Employee Optional Retirement Program, the

16  employee's membership in the Florida Retirement System shall

17  be governed by the provisions of this part, and the employee's

18  membership in the defined benefit program of the Florida

19  Retirement System shall terminate. The employee's enrollment

20  in the Public Employee Optional Retirement Program shall be

21  effective the first day of the month for which a full month's

22  employer contribution is made to the optional program.

23         b.  Any such employee who fails to elect to participate

24  in the Public Employee Optional Retirement Program within the

25  prescribed 90 days is deemed to have elected to retain

26  membership in the defined benefit program of the Florida

27  Retirement System and the employee's option to elect to

28  participate in the optional program is forfeited.

29         2.  With respect to employees who become eligible to

30  participate in the Public Employee Optional Retirement Program

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  1  by reason of employment in a regularly established position

  2  with a state employer commencing after June 1, 2002:

  3         a.  Any such employee shall, by default, be enrolled in

  4  the defined benefit retirement program of the Florida

  5  Retirement System at the commencement of employment, and may,

  6  within 180 days after employment commences, elect to

  7  participate in the Public Employee Optional Retirement

  8  Program. The employee's election must be made in writing or by

  9  electronic means and must be filed with the personnel officer

10  of the employer. The election to participate in the optional

11  program is irrevocable, except as provided in paragraph (e).

12         b.  If the employee files such election before the

13  initial payroll is submitted for the employee, enrollment in

14  the Public Employee Optional Retirement Program shall be

15  effective on the first day of employment.

16         c.  If the employee files such election within 180 days

17  after employment commences, but after the initial payroll is

18  submitted for the employee, enrollment in the optional program

19  shall be effective on the first day of the month for which a

20  full month's employer contribution is made to the optional

21  program.

22         d.  Any such employee who fails to elect to participate

23  in the Public Employee Optional Retirement Program within the

24  prescribed 180 days is deemed to have elected to retain

25  membership in the defined benefit program of the Florida

26  Retirement System and the employee's option to elect to

27  participate in the optional program is forfeited.

28         3.  For purposes of this paragraph, "state employer"

29  means any agency, board, branch, commission, community

30  college, department, institution, institution of higher

31  education, or water management district of the state, which


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  1  participates in the Florida Retirement System for the benefit

  2  of certain employees.

  3         (b)1.  With respect to an eligible employee who is

  4  employed in a regularly established position on September 1,

  5  2002, by a district school board employer:

  6         a.  Any such employee may elect to participate in the

  7  Public Employee Optional Retirement Program in lieu of

  8  retaining his or her membership in the defined benefit program

  9  of the Florida Retirement System. The election must be made in

10  writing or by electronic means and must be filed with the

11  department and the personnel officer of the employer within 90

12  days after September 1, 2002, or, in the case of an active

13  employee who is on a leave of absence on September 1, 2002,

14  within 90 days after the conclusion of the leave of absence.

15  This election is irrevocable, except as provided in paragraph

16  (e). Upon making such election, the employee shall be enrolled

17  as a participant of the Public Employee Optional Retirement

18  Program, the employee's membership in the Florida Retirement

19  System shall be governed by the provisions of this part, and

20  the employee's membership in the defined benefit program of

21  the Florida Retirement System shall terminate. The employee's

22  enrollment in the Public Employee Optional Retirement Program

23  shall be effective the first day of the month for which a full

24  month's employer contribution is made to the optional program.

25         b.  Any such employee who fails to elect to participate

26  in the Public Employee Optional Retirement Program within the

27  prescribed 90 days is deemed to have elected to retain

28  membership in the defined benefit program of the Florida

29  Retirement System and the employee's option to elect to

30  participate in the optional program is forfeited.

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  1         2.  With respect to employees who become eligible to

  2  participate in the Public Employee Optional Retirement Program

  3  by reason of employment in a regularly established position

  4  with a district school board employer commencing after

  5  September 1, 2002:

  6         a.  Any such employee shall, by default, be enrolled in

  7  the defined benefit retirement program of the Florida

  8  Retirement System at the commencement of employment, and may,

  9  within 180 days after employment commences, elect to

10  participate in the Public Employee Optional Retirement

11  Program. The employee's election must be made in writing or by

12  electronic means and must be filed with the personnel officer

13  of the employer. The election to participate in the optional

14  program is irrevocable, except as provided in paragraph (e).

15         b.  If the employee files such election before the

16  initial payroll is submitted for the employee, enrollment in

17  the Public Employee Optional Retirement Program shall be

18  effective on the first day of employment.

19         c.  If the employee files such election within 180 days

20  after employment commences, but after the initial payroll is

21  submitted for the employee, enrollment in the optional program

22  shall be effective on the first day of the month for which a

23  full month's employer contribution is made to the optional

24  program.

25         d.  Any such employee who fails to elect to participate

26  in the Public Employee Optional Retirement Program within the

27  prescribed 180 days is deemed to have elected to retain

28  membership in the defined benefit program of the Florida

29  Retirement System and the employee's option to elect to

30  participate in the optional program is forfeited.

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  1         3.  For purposes of this paragraph, "district school

  2  board employer" means any district school board that

  3  participates in the Florida Retirement System for the benefit

  4  of certain employees, or a charter school or charter technical

  5  career center that participates in the Florida Retirement

  6  System as provided in s. 121.051(2)(d).

  7         (c)1.  With respect to an eligible employee who is

  8  employed in a regularly established position on December 1,

  9  2002, by a local employer:

10         a.  Any such employee may elect to participate in the

11  Public Employee Optional Retirement Program in lieu of

12  retaining his or her membership in the defined benefit program

13  of the Florida Retirement System. The election must be made in

14  writing or by electronic means and must be filed with the

15  department and the personnel officer of the employer within 90

16  days after December 1, 2002, or, in the case of an active

17  employee who is on a leave of absence on December 1, 2002,

18  within 90 days after the conclusion of the leave of absence.

19  This election is irrevocable. Upon making such election, the

20  employee shall be enrolled as a participant of the Public

21  Employee Optional Retirement Program, the employee's

22  membership in the Florida Retirement System shall be governed

23  by the provisions of this part, and the employee's membership

24  in the defined benefit program of the Florida Retirement

25  System shall terminate. The employee's enrollment in the

26  Public Employee Optional Retirement Program shall be effective

27  the first day of the month for which a full month's employer

28  contribution is made to the optional program.

29         b.  Any such employee who fails to elect to participate

30  in the Public Employee Optional Retirement Program within the

31  prescribed 90 days is deemed to have elected to retain


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  1  membership in the defined benefit program of the Florida

  2  Retirement System and the employee's option to elect to

  3  participate in the optional program is forfeited.

  4         2.  With respect to employees who become eligible to

  5  participate in the Public Employee Optional Retirement Program

  6  by reason of employment in a regularly established position

  7  with a local employer commencing after December 1, 2002:

  8         a.  Any such employee shall, by default, be enrolled in

  9  the defined benefit retirement program of the Florida

10  Retirement System at the commencement of employment, and may,

11  within 180 days after employment commences, elect to

12  participate in the Public Employee Optional Retirement

13  Program. The employee's election must be made in writing or by

14  electronic means and must be filed with the personnel officer

15  of the employer. The election to participate in the optional

16  program is irrevocable, except as provided in paragraph (e).

17         b.  If the employee files such election before the

18  initial payroll is submitted for the employee, enrollment in

19  the Public Employee Optional Retirement Program shall be

20  effective on the first day of employment.

21         c.  If the employee files such election within 180 days

22  after employment commences, but after the initial payroll is

23  submitted for the employee, enrollment in the optional program

24  shall be effective on the first day of the month for which a

25  full month's employer contribution is made to the optional

26  program.

27         d.  Any such employee who fails to elect to participate

28  in the Public Employee Optional Retirement Program within the

29  prescribed 180 days is deemed to have elected to retain

30  membership in the defined benefit program of the Florida

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  1  Retirement System and the employee's option to elect to

  2  participate in the optional program is forfeited.

  3         3.  For purposes of this paragraph, "local employer"

  4  means any employer not included in paragraph (a) or paragraph

  5  (b).

  6         (d)  Contributions available for self-direction by a

  7  participant who has not selected one or more specific

  8  investment products shall be allocated as prescribed by the

  9  board. The third-party administrator shall notify any such

10  participant at least quarterly that the participant should

11  take an affirmative action to make an asset allocation among

12  the optional program products.

13         (e)  After the period during which an eligible employee

14  had the choice to elect the defined benefit program or the

15  Public Employee Optional Retirement Program, the employee

16  shall have one opportunity, at the employee's discretion, to

17  choose to move from the defined benefit program to the Public

18  Employee Optional Retirement Program or from the Public

19  Employee Optional Retirement Program to the defined benefit

20  program. This paragraph shall be contingent upon approval from

21  the Internal Revenue Service for including the choice

22  described herein within the programs offered by the Florida

23  Retirement System.

24         1.  If the employee chooses to move to the Public

25  Employee Optional Retirement Program, the applicable

26  provisions of this section shall govern the transfer.

27         2.  If the employee chooses to move to the defined

28  benefit program, the employee must transfer from his or her

29  Public Employee Optional Retirement Program account and from

30  other employee moneys as necessary, a sum representing all

31  contributions that would have been made to the defined benefit


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  1  plan for that employee and the actual return that would have

  2  been earned on those contributions had they been invested in

  3  the defined benefit program.

  4         (5)  CONTRIBUTIONS.--

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

  6  participant in the Public Employee Optional Retirement Program

  7  an amount based on a percentage of the employee's monthly

  8  compensation as set forth in s. 121.571. The state board,

  9  acting as plan fiduciary, shall ensure that all plan assets

10  are held in a trust, pursuant to s. 401 of the Internal

11  Revenue Code. The employer shall forward all contributions

12  under this program to the third-party administrator. The

13  fiduciary shall ensure that said contributions are allocated

14  as follows:

15         1.  The portion earmarked for participant accounts

16  shall be used to purchase interests in the appropriate

17  investment vehicles for the accounts of each participant as

18  specified by the participant, or in accordance with paragraph

19  (4)(d).

20         2.  The portion earmarked for administrative and

21  educational expenses shall be transferred to the board.

22         3.  The portion earmarked for disability benefits shall

23  be transferred to the department.

24         (b)  Employers are responsible for notifying

25  participants regarding maximum contribution levels permitted

26  under the Internal Revenue Code. If a participant contributes

27  to any other tax-deferred plan, he or she is responsible for

28  ensuring that total contributions made to the optional program

29  and to any other such plan do not exceed federally permitted

30  maximums.

31         (6)  VESTING REQUIREMENTS.--


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  1         (a)1.  With respect to employer contributions paid on

  2  behalf of the participant to the Public Employee Optional

  3  Retirement Program, plus interest and earnings thereon and

  4  less investment fees and administrative charges, a participant

  5  shall be vested after completing 1 work year, as defined in s.

  6  121.021(54) with an employer, including any service while the

  7  participant was a member of the defined benefit retirement

  8  program or an optional retirement program authorized under s.

  9  121.051(2)(c) or s. 121.055(6).

10         2.  If the participant terminates employment prior to

11  satisfying the vesting requirements, the nonvested

12  accumulation shall be transferred from the participant's

13  accounts to the state board for deposit in the suspense

14  account of the Public Employee Optional Retirement Program

15  Trust Fund of the board. If the terminated participant is

16  reemployed as an eligible employee within 5 years, the state

17  board shall transfer to the participant's account any amount

18  of the moneys previously transferred from the participant's

19  accounts to the Public Employee Optional Retirement Program

20  Trust Fund, plus interest calculated at 3.0 percent per annum,

21  calculated from the date of transfer to the date of

22  reemployment.

23         (b)1.  A participant shall be vested in the amount

24  transferred from the defined benefit program, plus interest

25  and earnings thereon and less administrative charges and

26  investment fees, upon meeting the service requirements for the

27  participant's membership class as set forth in s. 121.021(29).

28  The third-party administrator shall account for such amounts

29  for each participant. The division shall notify the

30  participant and the third-party administrator when the

31


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  1  participant has satisfied the vesting period for Florida

  2  Retirement System purposes.

  3         2.  If the participant terminates employment prior to

  4  satisfying the vesting requirements, the nonvested

  5  accumulation shall be transferred from the participant's

  6  accounts to the state board for deposit in the suspense

  7  account of the Public Employee Optional Retirement Program

  8  Trust Fund of the board. If the terminated participant is

  9  reemployed as an eligible employee within 5 years, the state

10  board shall transfer to the participant's account any amount

11  of the moneys previously transferred from the participant's

12  accounts to the Public Employee Optional Retirement Program

13  Trust Fund, plus interest calculated at 6.0 percent per annum,

14  calculated from the date of transfer to the date of

15  reemployment.

16         (c)  Any nonvested accumulations transferred from a

17  participant's account to the suspense account shall be

18  forfeited by the participant if the participant is not

19  reemployed as an eligible employee within 5 years after

20  termination.

21         (7)  BENEFITS.--Under the Public Employee Optional

22  Retirement Program:

23         (a)  Benefits shall be provided in accordance with s.

24  401(a) of the Internal Revenue Code.

25         (b)  Benefits shall accrue in individual accounts that

26  are participant-directed, portable, and funded by employer

27  contributions and earnings thereon.

28         (c)  Benefits shall be payable in accordance with the

29  following terms and conditions:

30

31


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  1         1.  To the extent vested, benefits shall be payable

  2  only to a participant, or to his or her beneficiaries as

  3  designated by the participant.

  4         2.  Benefits shall be paid by the third-party

  5  administrator or designated approved providers in accordance

  6  with the law, the contracts, and any applicable board rule or

  7  policy.

  8         3.  To begin receiving the benefits, the participant

  9  must be terminated from all employment with all Florida

10  Retirement System employers, as provided in s. 121.021(39), or

11  the participant must be deceased. If a participant elects to

12  receive his or her benefits upon termination of employment,

13  the participant must submit a written application to the

14  third-party administrator indicating his or her preferred

15  distribution date and selecting an authorized method of

16  distribution as provided in paragraph (d). The participant may

17  defer receipt of benefits until he or she chooses to make such

18  application, subject to federal requirements.

19         4.  In the event of a participant's death, moneys

20  accumulated by, or on behalf of, the participant, less

21  withholding taxes remitted to the Internal Revenue Service,

22  shall be distributed to the participant's designated

23  beneficiary or beneficiaries, or to the participant's estate,

24  as if the participant retired on the date of death, as

25  provided in paragraph (e). No other death benefits shall be

26  available for survivors of participants under the Public

27  Employee Optional Retirement Program, except for such

28  benefits, or coverage for such benefits, as are separately

29  afforded by the employer, at the employer's discretion.

30         (d)  Upon receipt by the third-party administrator of a

31  properly executed application for distribution of benefits,


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  1  the total accumulated benefit shall be payable to the

  2  participant, as:

  3         1.  A lump-sum distribution to the participant;

  4         2.  A lump-sum direct rollover distribution whereby all

  5  accrued benefits, plus interest and investment earnings, are

  6  paid from the participant's account directly to the custodian

  7  of an eligible retirement plan, as defined in s. 402(c)(8)(B)

  8  of the Internal Revenue Code, on behalf of the participant; or

  9         3.  Periodic distributions, as authorized by the state

10  board.

11         (e)  Survivor benefits shall be payable as:

12         1.  A lump-sum distribution payable to the

13  beneficiaries, or to the deceased participant's estate;

14         2.  An eligible rollover distribution on behalf of the

15  surviving spouse of a deceased participant, whereby all

16  accrued benefits, plus interest and investment earnings, are

17  paid from the deceased participant's account directly to the

18  custodian of an individual retirement account or an individual

19  retirement annuity, as described in s. 402(c)(9) of the

20  Internal Revenue Code, on behalf of the surviving spouse; or

21         3.  A partial lump-sum payment whereby a portion of the

22  accrued benefit is paid to the deceased participant's

23  surviving spouse or other designated beneficiaries, less

24  withholding taxes remitted to the Internal Revenue Service,

25  and the remaining amount is transferred directly to the

26  custodian of an individual retirement account or an individual

27  retirement annuity, as described in s. 402(c)(9) of the

28  Internal Revenue Code, on behalf of the surviving spouse. The

29  proportions must be specified by the participant or the

30  surviving beneficiary.

31


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  1  This paragraph does not abrogate other applicable provisions

  2  of state or federal law providing for payment of death

  3  benefits.

  4         (f)  The benefits payable to any person under the

  5  Public Employee Optional Retirement Program, and any

  6  contributions accumulated under such program, are not subject

  7  to assignment, execution, attachment, or any legal process,

  8  except for qualified domestic relations orders by a court of

  9  competent jurisdiction, income deduction orders as provided in

10  s. 61.1301, and federal income tax levies.

11         (8)  ADMINISTRATION OF PROGRAM.--

12         (a)  The Public Employee Optional Retirement Program

13  shall be administered by the state board and affected

14  employers. The board shall adopt rules establishing the role

15  and responsibilities of affected state, local government, and

16  education-related employers, the state board, the department,

17  and third-party contractors in administering the Public

18  Employee Optional Retirement Program. The department shall

19  adopt rules necessary to implement the optional program in

20  coordination with the defined benefit retirement program and

21  the disability benefits available under the optional program.

22         (b)1.  The state board shall select and contract with

23  one third-party administrator to provide administrative

24  services. With the approval of the state board, the

25  third-party administrator may subcontract with other

26  organizations or individuals to provide components of the

27  administrative services. As a cost of administration, the

28  board may compensate any such contractor for its services, in

29  accordance with the terms of the contract, as is deemed

30  necessary or proper by the board. The third-party

31


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  1  administrator may not be an approved provider or be affiliated

  2  with an approved provider.

  3         2.  Administrative services include, but are not

  4  limited to, services relating to consolidated billing;

  5  individual and collective recordkeeping and accounting; asset

  6  purchase, control, and safekeeping; and direct disbursement of

  7  funds to and from the third-party administrator, the division,

  8  the board, employers, participants, approved providers, and

  9  beneficiaries.

10         3.  The state board shall select and contract with one

11  or more organizations to provide educational services. With

12  approval of the board, the organizations may subcontract with

13  other organizations or individuals to provide components of

14  the educational services. As a cost of administration, the

15  board may compensate any such contractor for its services in

16  accordance with the terms of the contract, as is deemed

17  necessary or proper by the board. The education organization

18  may not be an approved provider or be affiliated with an

19  approved provider.

20         4.  Educational services shall be designed by the board

21  and department to assist employers, eligible employees,

22  participants, and beneficiaries in order to maintain

23  compliance with United States Department of Labor regulations

24  under section 404(c) of the Employee Retirement Income

25  Security Act of 1974 and to assist employees in their choice

26  of defined benefit or defined contribution retirement

27  alternatives. Educational services include, but are not

28  limited to, disseminating educational materials; providing

29  retirement planning education; explaining the differences

30  between the defined benefit retirement plan and the defined

31  contribution retirement plan; and offering financial planning


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  1  guidance on matters such as investment diversification,

  2  investment risks, investment costs, and asset allocation. An

  3  approved provider may also provide educational information,

  4  including retirement planning and investment allocation

  5  information concerning its products and services.

  6         (c)1.  In evaluating and selecting a third-party

  7  administrator, the board shall establish criteria under which

  8  it shall consider the relative capabilities and qualifications

  9  of each proposed administrator. In developing such criteria,

10  the board shall consider:

11         a.  The administrator's demonstrated experience in

12  providing administrative services to public or private sector

13  retirement systems.

14         b.  The administrator's demonstrated experience in

15  providing daily valued recordkeeping to defined contribution

16  plans.

17         c.  The administrator's ability and willingness to

18  coordinate its activities with the Florida Retirement System

19  employers, the board, and the division, and to supply to such

20  employers, the board, and the division the information and

21  data they require, including, but not limited to, monthly

22  management reports, quarterly participant reports, and ad hoc

23  reports requested by the department or board.

24         d.  The cost-effectiveness and levels of the

25  administrative services provided.

26         e.  The administrator's ability to interact with the

27  participants, the employers, the board, the division, and the

28  providers; the means by which participants may access account

29  information, direct investment of contributions, make changes

30  to their accounts, transfer moneys between available

31


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  1  investment vehicles, and transfer moneys between investment

  2  products; and any fees that apply to such activities.

  3         f.  Any other factor deemed necessary by the Trustees

  4  of the State Board of Administration.

  5         g.  The recommendations of the Public Employee Optional

  6  Retirement Program Advisory Committee established in

  7  subsection (12).

  8         2.  In evaluating and selecting an educational

  9  provider, the board shall establish criteria under which it

10  shall consider the relative capabilities and qualifications of

11  each proposed educational provider. In developing such

12  criteria, the board shall consider:

13         a.  Demonstrated experience in providing educational

14  services to public or private sector retirement systems.

15         b.  Ability and willingness to coordinate its

16  activities with the Florida Retirement System employers, the

17  board, and the division, and to supply to such employers, the

18  board, and the division the information and data they require,

19  including, but not limited to, reports on educational

20  contacts.

21         c.  The cost-effectiveness and levels of the

22  educational services provided.

23         d.  Ability to provide educational services via

24  different media, including, but not limited to, the Internet,

25  personal contact, seminars, brochures, and newsletters.

26         e.  Any other factor deemed necessary by the Trustees

27  of the State Board of Administration.

28         f.  The recommendations of the Public Employee Optional

29  Retirement Program Advisory Committee established in

30  subsection (12).

31


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  1         3.  The establishment of the criteria shall be solely

  2  within the discretion of the board.

  3         (d)  The board shall develop the form and content of

  4  any contracts to be offered under the Public Employee Optional

  5  Retirement Program. In developing its contracts, the board

  6  must consider:

  7         1.  The nature and extent of the rights and benefits to

  8  be afforded in relation to the required contributions under

  9  the program.

10         2.  The suitability of the rights and benefits to be

11  afforded and the interests of employers in the recruitment and

12  retention of eligible employees.

13         (e)1.  The board may contract with any consultant for

14  professional services, including legal, consulting,

15  accounting, and actuarial services, deemed necessary to

16  implement and administer the optional program by the Trustees

17  of the State Board of Administration. The board may enter into

18  a contract with one or more vendors to provide low-cost

19  investment advice to participants, supplemental to education

20  provided by the third-party administrator. All fees under any

21  such contract shall be paid by those participants who choose

22  to use the services of the vendor.

23         2.  The department may contract with consultants for

24  professional services, including legal, consulting,

25  accounting, and actuarial services, deemed necessary to

26  implement and administer the optional program in coordination

27  with the defined benefit program of the Florida Retirement

28  System. The department, in coordination with the board, may

29  enter into a contract with the third-party administrator in

30  order to coordinate services common to the various programs

31  within the Florida Retirement System.


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  1         (f)  The third-party administrator shall not receive

  2  direct or indirect compensation from an approved provider,

  3  except as specifically provided for in the contract with the

  4  board.

  5         (g)  The board shall resolve any conflict between the

  6  third-party administrator and an approved provider when such

  7  conflict threatens the implementation or administration of the

  8  program or the quality of services to employees and may

  9  resolve any other conflicts.

10         (9)  INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE

11  REVIEW.--

12         (a)  The board shall develop policy and procedures for

13  selecting, evaluating, and monitoring the performance of

14  approved providers and investment products to which employees

15  may direct retirement contributions under the program. In

16  accordance with such policy and procedures, the board shall

17  designate and contract for a number of investment products as

18  determined by the board. The board shall select one or more

19  providers who offer multiple investment products when such an

20  approach is determined by the board to afford value to the

21  participants otherwise not available through individual

22  investment products. The board shall review and manage all

23  educational materials, contract terms, fee schedules, and

24  other aspects of the approved provider relationships to ensure

25  that no provider is unduly favored or penalized by virtue of

26  its status within the plan.

27         (b)  The board shall consider investment options or

28  products it considers appropriate to give participants the

29  opportunity to accumulate retirement benefits, subject to the

30  following:

31


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  1         1.  The Public Employee Optional Retirement Program

  2  must offer a diversified mix of low-cost investment products

  3  that span the risk-return spectrum.

  4         2.  Investment options or products offered by the group

  5  of approved providers may include mutual funds, group annuity

  6  contracts, individual retirement annuities, interests in

  7  trusts, collective trusts, separate accounts, and other such

  8  financial instruments.

  9         3.  The board shall not contract with any provider that

10  imposes a front-end, back-end, contingent, or deferred sales

11  charge, or any other fee that limits or restricts the ability

12  of participants to select any investment product available in

13  the optional program.

14         (c)  In evaluating and selecting approved providers and

15  products, the board shall establish criteria under which it

16  shall consider the relative capabilities and qualifications of

17  each proposed provider company and product. In developing such

18  criteria, the board shall consider the following to the extent

19  such factors may be applied in connection with investment

20  products, services, or providers:

21         1.  Experience in the United States providing

22  retirement products and related financial services under

23  defined contribution retirement plans.

24         2.  Financial strength and stability which shall be

25  evidenced by the highest ratings assigned by nationally

26  recognized rating services when comparing proposed providers

27  that are so rated.

28         3.  Intrastate and interstate portability of the

29  product offered, including early withdrawal options.

30         4.  Compliance with the Internal Revenue Code.

31


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  1         5.  The cost-effectiveness of the product provided and

  2  the levels of service supporting the product relative to its

  3  benefits and its characteristics, including, without

  4  limitation, the level of risk borne by the provider.

  5         6.  The provider company's ability and willingness to

  6  coordinate its activities with Florida Retirement System

  7  employers, the department, and the board, and to supply to

  8  such employers, the department, and the board the information

  9  and data they require.

10         7.  The methods available to participants to interact

11  with the provider company; the means by which participants may

12  access account information, direct investment of

13  contributions, make changes to their accounts, transfer moneys

14  between available investment vehicles, and transfer moneys

15  between provider companies; and any fees that apply to such

16  activities.

17         8.  The provider company's policies with respect to the

18  transfer of individual account balances, contributions, and

19  earnings thereon, both internally among investment products

20  offered by the provider company and externally between

21  approved providers, as well as any fees, charges, reductions,

22  or penalties that may be applied.

23         9.  An evaluation of specific investment products,

24  taking into account each product's experience in meeting its

25  investment return objectives net of all related fees,

26  expenses, and charges, including, but not limited to,

27  investment management fees, loads, distribution and marketing

28  fees, custody fees, recordkeeping fees, education fees,

29  annuity expenses, and consulting fees.

30

31


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  1         10.  Organizational factors, including, but not limited

  2  to, financial solvency, organizational depth, and experience

  3  in providing institutional and retail investment services.

  4         (d)  As a condition of offering any investment option

  5  or product in the optional retirement program, the approved

  6  provider must agree to make the investment product or service

  7  available under the most beneficial terms offered to any other

  8  customer, subject to approval by the Trustees of the State

  9  Board of Administration.

10         (e)  The board shall regularly review the performance

11  of each approved provider and product and related

12  organizational factors to ensure continued compliance with

13  established selection criteria and with board policy and

14  procedures. Providers and products may be terminated subject

15  to contract provisions. The board shall adopt procedures to

16  transfer account balances from terminated products or

17  providers to other products or providers in the optional

18  program.

19         (10)  EDUCATION COMPONENT.--

20         (a)  The board, in coordination with the department,

21  shall provide for an education component for system members in

22  a manner consistent with the provisions of this section. The

23  education component must be available to eligible employees at

24  least 90 days prior to the beginning date of the election

25  period for the employees of the respective types of employers.

26         (b)  The education component must provide system

27  members with impartial and balanced information about plan

28  choices. The education component must involve multimedia

29  formats. Program comparisons must, to the greatest extent

30  possible, be based upon the retirement income that different

31  retirement programs may provide to the participant. The board


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  1  shall monitor the performance of the contract to ensure that

  2  the program is conducted in accordance with the contract,

  3  applicable law, and the rules of the board.

  4         (c)  The board, in coordination with the department,

  5  shall provide for an initial and ongoing transfer education

  6  component to provide system members with information necessary

  7  to make informed plan choice decisions. The transfer education

  8  component must include, but is not limited to, information on:

  9         1.  The amount of money available to a member to

10  transfer to the defined contribution program.

11         2.  The features of and differences between the defined

12  benefit program and the defined contribution program, both

13  generally and specifically, as those differences may affect

14  the member.

15         3.  The expected benefit available if the member were

16  to retire under each of the retirement programs, based on

17  appropriate alternative sets of assumptions.

18         4.  The rate of return from investments in the defined

19  contribution program and the period of time over which such

20  rate of return must be achieved to equal or exceed the

21  expected monthly benefit payable to the member under the

22  defined benefit program.

23         5.  The historical rates of return for the investment

24  alternatives available in the defined contribution programs.

25         6.  The benefits and historical rates of return on

26  investments available in a typical deferred compensation plan

27  or a typical plan under s. 403(b) of the Internal Revenue Code

28  for which the employee may be eligible.

29         7.  The program choices available to employees of the

30  State University System and the comparative benefits of each

31  available program, if applicable.


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  1         8.  Payout options available in each of the retirement

  2  programs.

  3         (d)  An ongoing education and communication component

  4  must provide system members with information necessary to make

  5  informed decisions about choices within their program of

  6  membership and in preparation for retirement. The component

  7  must include, but is not limited to, information concerning:

  8         1.  Rights and conditions of membership.

  9         2.  Benefit features within the program, options, and

10  effects of certain decisions.

11         3.  Coordination of contributions and benefits with a

12  deferred compensation plan under s. 457 or a plan under s.

13  403(b) of the Internal Revenue Code.

14         4.  Significant program changes.

15         5.  Contribution rates and program funding status.

16         6.  Planning for retirement.

17         (e)  Descriptive materials must be prepared under the

18  assumption that the employee is an unsophisticated investor,

19  and all materials used in the education component must be

20  approved by the state board prior to dissemination.

21         (f)  The board and the department shall also establish

22  a communication component to provide program information to

23  participating employers and the employers' personnel and

24  payroll officers and to explain their respective

25  responsibilities in conjunction with the retirement programs.

26         (g)  Funding for education of new employees may reflect

27  administrative costs to the optional program and the defined

28  benefit program.

29         (11)  PARTICIPANT INFORMATION REQUIREMENTS.--The board

30  shall ensure that each participant is provided a quarterly

31  statement that accounts for the contributions made on behalf


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  1  of such participant; the interest and investment earnings

  2  thereon; and any fees, penalties, or other deductions that

  3  apply thereto. At a minimum, such statements must:

  4         (a)  Indicate the participant's investment options.

  5         (b)  State the market value of the account at the close

  6  of the current quarter and previous quarter.

  7         (c)  Show account gains and losses for the period and

  8  changes in account accumulation unit values for the period.

  9         (d)  Itemize account contributions for the quarter.

10         (e)  Indicate any account changes due to adjustment of

11  contribution levels, reallocation of contributions, balance

12  transfers, or withdrawals.

13         (f)  Set forth any fees, charges, penalties, and

14  deductions that apply to the account.

15         (g)  Indicate the amount of the account in which the

16  participant is fully vested and the amount of the account in

17  which the participant is not vested.

18         (h)  Indicate each investment product's performance

19  relative to an appropriate market benchmark.

20

21  The third-party administrator shall provide quarterly and

22  annual summary reports to the board and any other reports

23  requested by the department or the board. In any solicitation

24  or offer of coverage under an optional retirement program, a

25  provider company shall be governed by the contract readability

26  provisions of s. 627.4145, notwithstanding s. 627.4145(6)(c).

27  In addition, all descriptive materials must be prepared under

28  the assumption that the participant is an unsophisticated

29  investor. Provider companies must maintain an internal system

30  of quality assurance, have proven functional systems that are

31  date-calculation compliant, and be subject to a due-diligence


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  1  inquiry that proves their capacity and fitness to undertake

  2  service responsibilities.

  3         (12)  ADVISORY COMMITTEES TO PROVIDE ADVICE AND

  4  ASSISTANCE.--The Investment Advisory Council and the Public

  5  Employee Optional Retirement Program Advisory Committee shall

  6  assist the board in implementing and administering the Public

  7  Employee Optional Retirement Program.

  8         (a)  The Investment Advisory Council, created pursuant

  9  to s. 215.444, shall review the board's initial

10  recommendations regarding the criteria to be used in selecting

11  and evaluating approved providers and investment products. The

12  council may provide comments on the recommendations to the

13  board within 45 days after receiving the initial

14  recommendations. The board shall make the final determination

15  as to whether any investment provider or product, any

16  contractor, or any and all contract provisions shall be

17  approved for the program.

18         (b)1.  The Public Employee Optional Retirement Program

19  Advisory Committee shall be composed of seven members. The

20  President of the Senate shall appoint two members, the Speaker

21  of the House of Representatives shall appoint two members, the

22  Governor shall appoint one member, the Treasurer shall appoint

23  one member, and the Comptroller shall appoint one member. The

24  members of the advisory committee shall elect a member as

25  chair. The appointments shall be made by September 1, 2000,

26  and the committee shall meet to organize by October 1, 2000.

27  The initial appointments shall be for a term of 24 months.

28  Each appointing authority shall fill any vacancy occurring

29  among its appointees for the remainder of the original term.

30         2.  The advisory committee shall make recommendations

31  on the selection of the third-party administrator, the


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  1  education providers, and the investment products and

  2  providers. The committee's recommendations on the third-party

  3  administrator must be forwarded to the Trustees of the State

  4  Board of Administration by January 1, 2001. The

  5  recommendations on the education providers must be forwarded

  6  to the trustees by April 1, 2001.

  7         3.  The advisory committee's recommendations and

  8  activities shall be guided by the best interests of the

  9  employees, considering the interests of employers, and the

10  intent of the Legislature in establishing the Public Employee

11  Optional Retirement Program.

12         4.  The staff of the state board and the department

13  shall assist the advisory committee.

14         (13)  FEDERAL REQUIREMENTS.--

15         (a)  Provisions of this section shall be construed, and

16  the Public Employee Optional Retirement Program shall be

17  administered, so as to comply with the Internal Revenue Code,

18  26 U.S.C., and specifically with plan qualification

19  requirements imposed on governmental plans under s. 401(a) of

20  the Internal Revenue Code.

21         (b)  Any section or provision of this chapter which is

22  susceptible to more than one construction must be interpreted

23  in favor of the construction most likely to satisfy

24  requirements imposed by s. 401(a) of the Internal Revenue

25  Code.

26         (c)  Contributions payable under this section for any

27  limitation year may not exceed the maximum amount allowable

28  for qualified defined contribution pension plans under

29  applicable provisions of the Internal Revenue Code. If an

30  employee who has elected to participate in the Public Employee

31  Optional Retirement Program participates in any other plan


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  1  that is maintained by the participating employer, benefits

  2  that accrue under the Public Employee Optional Retirement

  3  Program shall be considered primary for any aggregate

  4  limitation applicable under s. 415 of the Internal Revenue

  5  Code.

  6         (14)  INVESTMENT POLICY STATEMENT.--

  7         (a)  Investment products and approved providers

  8  selected for the Public Employee Optional Retirement Program

  9  shall conform with the Public Employee Optional Retirement

10  Program Investment Policy Statement, herein referred to as the

11  "statement," as developed and approved by the Trustees of the

12  State Board of Administration. The statement must include,

13  among other items, the investment objectives of the Public

14  Employee Optional Retirement Program, manager selection and

15  monitoring guidelines, and performance measurement criteria.

16  As required from time to time, the executive director of the

17  state board may present recommended changes in the statement

18  to the board for approval.

19         (b)  Prior to presenting the statement, or any

20  recommended changes thereto, to the state board, the executive

21  director of the board shall present such statement or changes

22  to the Investment Advisory Council for review. The council

23  shall present the results of its review to the board prior to

24  the board's final approval of the statement or changes in the

25  statement.

26         (15)  STATEMENT OF FIDUCIARY STANDARDS AND

27  RESPONSIBILITIES.--

28         (a)  Investment of optional defined contribution

29  retirement plan assets shall be made for the sole interest and

30  exclusive purpose of providing benefits to plan participants

31  and beneficiaries and defraying reasonable expenses of


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  1  administering the plan. The program's assets are to be

  2  invested, on behalf of the program participants, with the

  3  care, skill, and diligence that a prudent person acting in a

  4  like manner would undertake. The performance of the investment

  5  duties set forth in this paragraph shall comply with the

  6  fiduciary standards set forth in the Employee Retirement

  7  Income Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C).

  8  In case of conflict with other provisions of law authorizing

  9  investments, the investment and fiduciary standards set forth

10  in this subsection shall prevail.

11         (b)  If a participant or beneficiary of the Public

12  Employee Optional Retirement Program exercises control over

13  the assets in his or her account, as determined by reference

14  to regulations of the United States Department of Labor under

15  section 404(c) of the Employee Retirement Income Security Act

16  of 1974 and all applicable laws governing the operation of the

17  program, no program fiduciary shall be liable for any loss to

18  a participant's or beneficiary's account which results from

19  such participant's or beneficiary's exercise of control.

20         (16)  DISABILITY BENEFITS.--For any participant of the

21  optional retirement program who becomes totally and

22  permanently disabled, as defined in s. 121.091(4)(b), the

23  participant shall be entitled to receive those moneys that

24  have accrued in his or her participant account.  It is the

25  intent of the Legislature to design a disability benefit for

26  participants of the optional program similar to those

27  disability benefits afforded defined benefit program members.

28  The department is directed to study the potential options of

29  such coverage, including self-insurance and commercial

30  coverage, the alternative methods of administering such

31  benefits, and the fiscal impacts on the employees and


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  1  employers, and to make recommendations to the Legislature by

  2  January 15, 2001.

  3         (17)  SOCIAL SECURITY COVERAGE.--Social security

  4  coverage shall be provided for all officers and employees who

  5  become participants of the optional program.  Any modification

  6  of the present agreement with the Social Security

  7  Administration, or referendum required under the Social

  8  Security Act, for the purpose of providing social security

  9  coverage for any member shall be requested by the state agency

10  in compliance with the applicable provisions of the Social

11  Security Act governing such coverage.  However, retroactive

12  social security coverage for service prior to December 1,

13  1970, with the employer shall not be provided for any member

14  who was not covered under the agreement as of November 30,

15  1970.

16         (18)  RETIREE HEALTH INSURANCE SUBSIDY.--All officers

17  and employees who are participants of the optional program

18  shall be eligible to receive the retiree health insurance

19  subsidy, subject to the provisions of s. 112.363.

20         121.571  Contributions.--Contributions to the Public

21  Employee Optional Retirement Program shall be made as follows:

22         (1)  CONTRIBUTION RATES GENERALLY.--The contributions

23  established in this section shall fund the Public Employee

24  Optional Retirement Program and shall be paid by each

25  participant's employer to the third-party administrator based

26  on the class membership of the participant. The contributions

27  are stated as a percentage of each participant's gross

28  compensation for the calendar month. A change in a

29  contribution rate is effective the first day of the month for

30  which a full month's employer contribution is made on or after

31


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  1  the beginning date of the change. Contribution rates may be

  2  modified by general law.

  3         (2)  CONTRIBUTIONS TO PARTICIPANT ACCOUNTS.--Employer

  4  and participant contributions to participant accounts shall be

  5  accounted for separately. Interest and investment earnings on

  6  employer contributions shall accrue on a tax-deferred basis

  7  until proceeds are distributed. Pursuant thereto:

  8         (a)  All contributions made on behalf of a participant

  9  pursuant to this subsection shall be transferred by the

10  employer to the third-party administrator for deposit in the

11  participant's account.

12         (b)  Retirement contributions for Regular Class members

13  of the optional retirement plan are as follows:

14         Dates of Contribution    Employers

15         Rate Changes

16         Effective July 1, 2002:      9.0%

17         (c)  Retirement contributions for Special Risk Class

18  members of the optional retirement plan are as follows:

19         Dates of Contribution    Employers

20         Rate Changes

21         Effective July 1, 2002:     20.0%

22         (d)  Retirement contributions for Special Risk

23  Administrative Support Class members of the optional

24  retirement plan are as follows:

25         Dates of Contribution    Employers

26         Rate Changes

27         Effective July 1, 2002:     11.35%

28         (e)  Retirement contributions for Elected Officers'

29  Class members of the optional retirement plan are as follows:

30         Dates of Contribution    Employers

31         Rate Changes


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  1         Effective July 1, 2002:

  2           Legislators               13.40%

  3           Governor, Lt. Governor,

  4              Cabinet Officers       13.40%

  5           State Attorneys, Public

  6              Defenders              13.40%

  7           Justices, Judges          18.90%

  8           County Elected Officers   16.20%

  9         (f)  Retirement contributions for Senior Management

10  Service Class members of the optional retirement plan are as

11  follows:

12         Dates of Contribution    Employers

13         Rate Changes

14         Effective July 1, 2002:     10.95%

15         (3)  CONTRIBUTIONS TO DISABILITY ACCOUNT.--

16         (a)  All contributions made on behalf of a participant

17  pursuant to this subsection shall be transferred by the

18  employer to the third-party administrator for deposit in the

19  Public Employee Disability Trust Fund administered by the

20  Division of Retirement. Such contributions, less any fees or

21  charges authorized by the Legislature to offset the costs of

22  administering the disability component of the optional

23  retirement program, shall be used to provide disability

24  coverage for participants in the optional retirement program.

25         (b)  Disability contributions for Regular Class members

26  of the optional retirement plan are as follows:

27         Dates of Contribution    Employers

28         Rate Changes

29         Effective July 1, 2002:      0.39%

30         (c)  Disability contributions for Special Risk Class

31  members of the optional retirement plan are as follows:


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  1         Dates of Contribution    Employers

  2         Rate Changes

  3         Effective July 1, 2002:      1.25%

  4         (d)  Disability contributions for Special Risk

  5  Administrative Support Class members of the optional

  6  retirement plan are as follows:

  7         Dates of Contribution    Employers

  8         Rate Changes

  9         Effective July 1, 2002:      0.73%

10         (e)  Disability contributions for Elected Officers'

11  Class members of the optional retirement plan are as follows:

12         Dates of Contribution    Employers

13         Rate Changes

14         Effective July 1, 2002:

15           Legislators                0.61%

16           Governor, Lt. Governor,

17              Cabinet Officers        0.61%

18           State Attorneys, Public

19              Defenders               0.61%

20           Justices, Judges           1.45%

21           County Elected Officers    0.86%

22         (f)  Disability contributions for Senior Management

23  Service Class members of the optional retirement plan are as

24  follows:

25         Dates of Contribution    Employers

26         Rate Changes

27         Effective July 1, 2002:      0.50%

28         (4)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR

29  RETIREE HEALTH INSURANCE SUBSIDY.--Contributions required

30  under this section shall be in addition to employer and member

31


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  1  contributions required for social security and the Retiree

  2  Health Insurance Subsidy Trust Fund as provided in s. 121.071.

  3         (5)  ADMINISTRATIVE AND EDUCATIONAL

  4  CONTRIBUTIONS.--Effective June 1, 2002, the contribution rate

  5  for each employer shall be 0.1 percent on behalf of each

  6  participant to fund the administrative and educational

  7  expenses of the optional program. All contributions made on

  8  behalf of a participant pursuant to this subsection shall be

  9  transferred to the third-party administrator for deposit in

10  the board's administrative fund.

11         (6)  DEDUCTIONS.--The board or the third-party

12  administrator may deduct reasonable fees and apply appropriate

13  charges to participant accounts. Payments for third-party

14  administrative or educational expenses shall be made only

15  pursuant to the terms of the approved contracts for such

16  services. In no event shall administrative and educational

17  expenses exceed the portion of employer contributions

18  earmarked for such expenses pursuant to this section, except

19  for reasonable administrative charges assessed against

20  participant accounts of persons for whom no employer

21  contributions are made during the year. Investment management

22  fees shall be deducted from the gross returns earned by each

23  authorized investment product or approved provider, pursuant

24  to the terms of the contract between the provider and the

25  board.

26         (7)  PAYMENT AND DISTRIBUTION OF

27  CONTRIBUTIONS.--Contributions made pursuant to this section

28  shall be paid by the employer to the third-party administrator

29  by electronic funds transfer no later than the 5th day of the

30  month immediately following the month during which the payroll

31  period ended. The board and the third-party administrator


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  1  shall ensure that the contributions are distributed to the

  2  appropriate trust funds or participant accounts in a timely

  3  manner.

  4         Section 4.  Effective July 1, 2001, subsections (29)

  5  and (45) of section 121.021, Florida Statutes, are amended to

  6  read:

  7         121.021  Definitions.--The following words and phrases

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

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

10         (29)  "Normal retirement date" means the first day of

11  any month following the date a member attains one of the

12  following statuses:

13         (a)  If a Regular Class member, the member:

14         1.  Completes 6 10 or more years of creditable service

15  and attains age 62; or

16         2.  Completes 30 years of creditable service,

17  regardless of age, which may include a maximum of 4 years of

18  military service credit as long as such credit is not claimed

19  under any other system.

20         (b)  If a Special Risk Class member, the member:

21         1.  Completes 6 10 or more years of creditable service

22  in the Special Risk Class and attains age 55;

23         2.  Completes 25 years of creditable service in the

24  Special Risk Class, regardless of age; or

25         3.  Completes 25 years of creditable service and

26  attains age 52, which service may include a maximum of 4 years

27  of military service credit as long as such credit is not

28  claimed under any other system and the remaining years are in

29  the Special Risk Class.

30         (c)  If a Senior Management Service Class member, the

31  member:


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  1         1.  Completes 6 7 years of creditable service in the

  2  Senior Management Service Class and attains age 62; or

  3         2.  Completes 30 years of any creditable service,

  4  regardless of age, which may include a maximum of 4 years of

  5  military service credit as long as such credit is not claimed

  6  under any other system.

  7         (d)  If an Elected Officers' Class member, the member:

  8         1.  Completes 6 8 years of creditable service in the

  9  Elected Officers' Class and attains age 62; or

10         2.  Completes 30 years of any creditable service,

11  regardless of age, which may include a maximum of 4 years of

12  military service credit as long as such credit is not claimed

13  under any other system.

14

15  "Normal retirement age" is attained on the "normal retirement

16  date."

17         (45)(a)  "Vested" or "vesting" means the guarantee that

18  a member is eligible to receive a future retirement benefit

19  upon completion of the required years of creditable service

20  for the employee's class of membership, even though the member

21  may have terminated covered employment before reaching normal

22  or early retirement date. Being vested does not entitle a

23  member to a disability benefit. Provisions governing

24  entitlement to disability benefits are set forth under s.

25  121.091(4) based on a disability caused by an injury or

26  disease that occurs after termination of covered employment.

27         (b)  Effective July 1, 2001, a 6-year vesting

28  requirement shall be implemented for the defined benefit

29  program of the Florida Retirement System.  Pursuant thereto:

30         1.  Any member employed in a regularly established

31  position on July 1, 2001, who completes or has completed a


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  1  total of 6 years of creditable service shall be considered

  2  vested as described in paragraph (a).

  3         2.  Any member not employed in a regularly established

  4  position on July 1, 2001, shall be deemed vested upon

  5  completion of 6 years of creditable service, provided that

  6  such member is employed in a covered position for at least 1

  7  work year after July 1, 2001.  However, no member shall be

  8  required to complete more years of creditable service than

  9  would have been required for that member to vest under

10  retirement laws in effect before July 1, 2001.

11         Section 5.  Paragraph (a) of subsection (2) of section

12  121.051, Florida Statutes, is amended to read:

13         121.051  Participation in the system.--

14         (2)  OPTIONAL PARTICIPATION.--

15         (a)1.  Any officer or employee who is a member of an

16  existing system, except any officer or employee of any

17  nonprofit professional association or corporation, may elect,

18  if eligible, to become a member of this system at any time

19  between April 15, 1971, and June 1, 1971, inclusive, by

20  notifying his or her employer in writing of the desire to

21  transfer membership from the existing system to this system.

22  Any officer or employee who was a member of an existing system

23  on December 1, 1970, and who did not elect to become a member

24  of this system shall continue to be covered under the existing

25  system subject to the provisions of s. 121.045.  A person who

26  has retired under any state retirement system shall not be

27  eligible to transfer to the Florida Retirement System created

28  by this chapter subsequent to such retirement.  Any officer or

29  employee who, prior to July 1, 1947, filed a written rejection

30  of membership in a state retirement system and who continues

31  employment without participating in the Florida Retirement


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  1  System may withdraw the rejection in writing and, if otherwise

  2  eligible, participate in the Florida Retirement System and

  3  purchase prior service in accordance with this chapter.  Any

  4  former member of an existing system who was permitted to

  5  transfer to the Florida Retirement System while employed by

  6  the University Athletic Association, Inc., a nonprofit

  7  association connected with the University of Florida, during

  8  this or subsequent transfer periods, contrary to the

  9  provisions of this paragraph, is hereby confirmed as a member

10  of the Florida Retirement System, the provisions of this

11  paragraph to the contrary notwithstanding.  Any officer or

12  employee of the University Athletic Association, Inc.,

13  employed prior to July 1, 1979, who was a member of the

14  Florida Retirement System and who chose in writing on a

15  University Athletic Association Plan Participation Election

16  form, between July 1, 1979, and March 31, 1980, inclusively,

17  to terminate his or her participation in the Florida

18  Retirement System shall hereby have such termination of

19  participation confirmed and declared irrevocable retroactive

20  to the date Florida Retirement System retirement contributions

21  ceased to be reported for such officer or employee.  The

22  following specific conditions shall apply to any such officer

23  or employee whose participation was so terminated: The officer

24  or employee shall retain all creditable service earned in the

25  Florida Retirement System through the month that retirement

26  contributions ceased to be reported and no creditable service

27  shall be earned after such month; the officer or employee

28  shall not be eligible for disability retirement or death in

29  line of duty benefits if such occurred after the date that

30  participation terminated; and, the officer or employee may

31  participate in the Florida Retirement System in the future


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  1  only if employed by a participating employer in a regularly

  2  established position.

  3         2.  Any member transferring from the existing system

  4  under chapter 238 shall retain rights to survivor benefits

  5  under that chapter through November 30, 1975, or until fully

  6  insured for disability benefits under social security,

  7  whichever is the earliest date, and thereafter no such rights

  8  shall exist.

  9         3.  Any officer or employee who is a member of an

10  existing system on April 15, 1972, and who was eligible to

11  transfer to this system under the provisions of subparagraph

12  1., but who elected to remain in the existing system, may

13  elect, if eligible under the Social Security Act, 42 U.S.C. s.

14  418(d)(6)(F), to become a member of this system at any time

15  between April 15, 1972, and June 30, 1972, inclusive, by

16  notifying his or her employer in writing of the desire to

17  transfer membership from an existing system to this system.

18  Such transfer shall be subject to the following conditions:

19         a.  All persons electing to transfer to the Florida

20  Retirement System under this subparagraph shall be transferred

21  on July 1, 1972, and shall thereafter be subject to the

22  provisions of the Florida Retirement System retroactively to

23  November 30, 1970, and at retirement have their benefits

24  calculated in accordance with the provisions of s. 121.091.

25         b.  Social security coverage incidental to such

26  elective membership in the Florida Retirement System shall be

27  effective November 30, 1970, and all amounts required from a

28  member for retroactive social security coverage shall, at the

29  time such election is made, be deducted from the individual

30  account of the member, and the difference between the amount

31  remaining in the individual account of such member and the


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  1  total amount which such member would have contributed had he

  2  or she become a member of the Florida Retirement System on

  3  November 30, 1970, shall be paid into the system trust fund

  4  and added to the member's individual account prior to July 1,

  5  1975, or by his or her date of retirement, if earlier.

  6  Interest at the rate of 8 percent per annum, compounded

  7  annually until paid, shall be charged on any balance remaining

  8  unpaid on said date.

  9         c.  There is appropriated out of the system trust fund

10  into the Social Security Contribution Trust Fund the amount

11  required by federal laws and regulations to be contributed

12  with respect to social security coverage for the years after

13  November 30, 1970, of the members of an existing system who

14  transfer to the Florida Retirement System in accordance with

15  this subparagraph and who qualify for retroactive social

16  security coverage.  The amount paid from this appropriation

17  with respect to the employees of any employer shall be charged

18  to the employing agency.  There shall be credited against this

19  charge the difference between the matching contributions

20  actually made for the affected employees from November 30,

21  1970, to June 30, 1972, and the amount of matching

22  contributions that would have been required under the Florida

23  Retirement System.

24         d.  The net amounts charged the employing agencies for

25  employees transferring to the Florida Retirement System under

26  this subparagraph shall be paid to the system trust fund prior

27  to July 1, 1975.  Interest at the rate of 8 percent per annum,

28  compounded annually until paid, shall be charged on any

29  balance remaining unpaid on said date.

30         e.  The administrator shall request such modification

31  of the state's agreement with the Social Security


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  1  Administration, or any referendum required under the Social

  2  Security Act governing social security coverage, as may be

  3  required to implement the provisions of this law.  Retroactive

  4  social security coverage for service with an employer prior to

  5  November 30, 1970, shall not be provided for any member who

  6  was not covered under the agreement as of November 30, 1970.

  7         4.  Any officer or employee who was a member of an

  8  existing system on December 1, 1970, and who is still a member

  9  of an existing system, except any officer or employee of any

10  nonprofit professional association or corporation, may elect,

11  if eligible, to become a member of this system at any time

12  between September 1, 1974, and November 30, 1974, inclusive,

13  by notifying his or her employer in writing of the desire to

14  transfer membership from the existing system to this system.

15  This decision to transfer or not to transfer shall become

16  irrevocable on November 30, 1974.  All members electing to

17  transfer during the transfer period shall become members of

18  the Florida Retirement System on January 1, 1975, and shall be

19  subject to the provisions of the Florida Retirement System on

20  and after that date.  Any officer or employee who was a member

21  of an existing system on December 1, 1970, and who does not

22  elect to become a member of this system shall continue to be

23  covered under the existing system, subject to the provisions

24  of s. 121.045.  Any member transferring from the Teachers'

25  Retirement System of Florida under chapter 238 to the Florida

26  Retirement System on January 1, 1975, shall retain rights to

27  survivor benefits under chapter 238 from January 1, 1975,

28  through December 31, 1979, or until fully insured for

29  disability benefits under the Social Security Act, whichever

30  is the earliest date, and thereafter no such rights shall

31  exist.


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  1         5.a.  Any officer or employee who was a member of an

  2  existing system on December 1, 1970, and who is still a member

  3  of an existing system, except any officer or employee of any

  4  nonprofit professional association or corporation, may elect,

  5  if eligible, to become a member of this system at any time

  6  between January 2, 1982, and May 31, 1982, inclusive, by

  7  notifying his or her employer in writing of the desire to

  8  transfer membership from the existing system to this system.

  9  This decision to transfer or not to transfer shall become

10  irrevocable on May 31, 1982.  All members electing to transfer

11  during the transfer period shall become members of the Florida

12  Retirement System on July 1, 1982, and shall be subject to the

13  provisions of the Florida Retirement System on and after that

14  date.  Any officer or employee who was a member of an existing

15  system on December 1, 1970, and who does not elect to become a

16  member of this system shall continue to be covered under the

17  existing system, subject to the provisions of s. 121.045.  Any

18  member transferring from the Teachers' Retirement System under

19  chapter 238 to the Florida Retirement System on January 1,

20  1979, shall retain rights to survivor benefits under chapter

21  238 from January 1, 1979, through December 31, 1983, or until

22  fully insured for disability benefits under the federal Social

23  Security Act, whichever is the earliest date, and thereafter

24  no such rights shall exist.  Any such member transferring to

25  the Florida Retirement System on July 1, 1982, shall retain

26  rights to survivor benefits under chapter 238 from July 1,

27  1982, through June 30, 1987, or until fully insured for

28  disability benefits under the federal Social Security Act,

29  whichever is the earliest date, and thereafter no such rights

30  shall exist.

31


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  1         b.  Any deficit, as determined by the state actuary,

  2  accruing to the Survivors' Benefit Trust Fund of the Teachers'

  3  Retirement System and resulting from the passage of chapter

  4  78-308, Laws of Florida, and chapter 80-242, Laws of Florida,

  5  shall become an obligation of the Florida Retirement System

  6  Trust Fund.

  7         6.  Any active member of an existing system who was not

  8  employed in a covered position during a time when transfer to

  9  the Florida Retirement System was allowed as described in rule

10  22B-1.004(2)(a), Florida Administrative Code, or as provided

11  in paragraph (1)(c) of this section, may elect, if eligible,

12  to become a member of this system at any time between January

13  1, 1991, and May 29, 1991, inclusive, by notifying his or her

14  employer in writing of the desire to transfer membership from

15  the existing system to this system.  The decision to transfer

16  or not to transfer shall become irrevocable on May 29, 1991.

17  Failure to notify the employer shall result in compulsory

18  membership in the existing system.  All members electing to

19  transfer during the transfer period shall become members of

20  the Florida Retirement System on July 1, 1991, and shall be

21  subject to the provisions of the Florida Retirement System on

22  and after that date.  Any member so transferring from the

23  existing system under chapter 238 to the Florida Retirement

24  System on July 1, 1991, shall retain rights to survivor

25  benefits under that chapter from July 1, 1991, through June

26  30, 1996, or until fully insured for benefits under the

27  federal Social Security Act, whichever is the earliest date,

28  and thereafter no such rights shall exist.

29         Section 6.  Effective July 1, 2001, paragraph (a) of

30  subsection (7) of section 121.0515, Florida Statutes, is

31  amended to read:


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  1         121.0515  Special risk membership; criteria;

  2  designation and removal of classification; credits for past

  3  service and prior service; retention of special risk normal

  4  retirement date.--

  5         (7)  RETENTION OF SPECIAL RISK NORMAL RETIREMENT

  6  DATE.--

  7         (a)  A special risk member who is moved or reassigned

  8  to a nonspecial risk law enforcement, firefighting,

  9  correctional, or emergency medical care administrative support

10  position with the same agency, or who is subsequently employed

11  in such a position with any law enforcement, firefighting,

12  correctional, or emergency medical care agency under the

13  Florida Retirement System, shall participate in the Special

14  Risk Administrative Support Class and shall earn credit for

15  such service at the same percentage rate as that earned by a

16  regular member.  Notwithstanding the provisions of subsection

17  (4), service in such an administrative support position shall,

18  for purposes of s. 121.091, apply toward satisfaction of the

19  special risk normal retirement date, as defined in s.

20  121.021(29)(b), provided that, while in such position, the

21  member remains certified as a law enforcement officer,

22  firefighter, correctional officer, emergency medical

23  technician, or paramedic; remains subject to reassignment at

24  any time to a position qualifying for special risk membership;

25  and completes an aggregate of 6 10 or more years of service as

26  a designated special risk member prior to retirement.

27         Section 7.  Effective July 1, 2001, subsection (8) and

28  paragraphs (b) and (c) of subsection (12) of section 121.052,

29  Florida Statutes, are amended to read:

30         121.052  Membership class of elected officers.--

31


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  1         (8)  NORMAL RETIREMENT DATE; VESTING REQUIREMENT.--A

  2  member of the Elected Officers' Class shall have the same

  3  normal retirement date as defined in s. 121.021(29) for a

  4  member of the regular class of the Florida Retirement System,

  5  except that only 8 years of creditable service in this class

  6  are needed to attain the normal retirement date specified in

  7  s. 121.021(29)(a).  Any public service commissioner who was

  8  removed from the Elected State Officers' Class on July 1,

  9  1979, after attaining at least 8 years of creditable service

10  in that class shall be considered to have reached the normal

11  retirement date upon attaining age 62 as required in s.

12  121.021(29)(a).

13         (12)  BENEFITS.--

14         (b)  The benefit provisions of s. 121.091(2)-(6), (8),

15  (9), and (11), relating to benefits payable for dual normal

16  retirement ages, early retirement, disability retirement,

17  termination benefits, optional forms of retirement,

18  designation of beneficiaries, employment after retirement, and

19  method of computing actuarial equivalent, respectively, shall

20  also apply to members of the Elected Officers' Class, except

21  that only  8 years of creditable service in this class are

22  needed to attain the benefits specified in s. 121.091(3) and

23  (5). These provisions shall be construed in such manner as to

24  make them compatible with the provisions of this section.

25         (c)  The benefit provisions of s. 121.091(7), relating

26  to death benefits, shall apply to members of the Elected

27  Officers' Class and shall be construed in such manner as to

28  make them compatible with the provisions of this section;

29  however, only 8 years of creditable service in this class are

30  needed to obtain such benefits, except that:

31


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  1         1.  If any elected official dies in office who would

  2  have been vested under the Elected Officers' Class, any other

  3  class of the Florida Retirement System, or any other

  4  state-administered retirement system, if the official had

  5  lived to complete his or her term of office, the official's

  6  spouse may elect to leave the official's retirement

  7  contributions in the retirement trust fund and pay into said

  8  fund any required contributions which would have been paid by

  9  the officer or the employer had the officer lived to complete

10  the term of office.

11         2.  If a deceased member's surviving spouse as

12  described in subparagraph 1. previously received a refund of

13  the member's contributions made to the retirement trust fund,

14  the surviving spouse may pay into the retirement trust fund an

15  amount equal to the deceased member's contributions previously

16  refunded, together with interest at 4 percent compounded

17  annually on the amount of such refunded contributions from the

18  date of refund until July 1, 1975, and at 6.5 percent

19  compounded annually thereafter to the date of payment, plus

20  such additional contributions as may be required under

21  subparagraph 1., in order to become vested, as applicable.

22

23  Upon conclusion of the term of office to which the deceased

24  officer was elected, a spouse who pays into the retirement

25  trust fund such additional or refunded contributions, plus

26  interest, shall be eligible to receive a monthly benefit in

27  the same manner as the surviving spouse of a member who dies

28  after accumulating the required number of years of creditable

29  service as described herein.

30

31


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  1         Section 8.  Effective July 1, 2001, paragraph (a) of

  2  subsection (1) of section 121.053, Florida Statutes, is

  3  amended to read:

  4         121.053  Participation in the Elected Officers' Class

  5  for retired members.--

  6         (1)(a)  Any member who retired under any existing

  7  system as defined in s. 121.021(2), and receives a benefit

  8  thereof, and who serves in an office covered by the Elected

  9  Officers' Class for a period of at least 6 8 years, shall be

10  entitled to receive an additional retirement benefit for such

11  elected officer service prior to July 1, 1990, under the

12  Elected Officers' Class of the Florida Retirement System, as

13  follows:

14         1.  Upon completion of 6 8 or more years of creditable

15  service in an office covered by the Elected Officers' Class,

16  s. 121.052, such member shall notify the administrator of his

17  or her intent to purchase elected officer service prior to

18  July 1, 1990, and shall pay the member contribution applicable

19  for the period being claimed, plus 4 percent interest

20  compounded annually from the first year of service claimed

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

22  annually thereafter, until full payment is made to the Florida

23  Retirement System Trust Fund; however, such member may

24  purchase retirement credit under the Elected Officers' Class

25  only for such service as an elected officer.

26         2.  Upon payment of the amount specified in

27  subparagraph 1., the employer shall pay into the Florida

28  Retirement System Trust Fund the applicable employer

29  contribution for the period of elected officer service prior

30  to July 1, 1990, being claimed by the member, plus 4 percent

31  interest compounded annually from the first year of service


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

  2  compounded annually thereafter, until full payment is made to

  3  the Florida Retirement System Trust Fund.

  4         Section 9.  Effective July 1, 2001, paragraph (i) of

  5  subsection (1) of section 121.081, Florida Statutes, is

  6  amended to read:

  7         121.081  Past service; prior service;

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

  9  service may be claimed and credited are:

10         (1)

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

12  a state-administered retirement system and who was granted

13  educational leave with pay pursuant to a written educational

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

15  leave as past service subject to the following conditions:

16         1.  The educational leave must have occurred prior to

17  December 31, 1971;

18         2.  The member must have completed at least 6 10 years

19  of creditable service excluding the period of the educational

20  leave;

21         3.  The employee must have returned to employment with

22  a state agency employer who participated in the retirement

23  system, which return was immediately upon termination of the

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

25  payroll for at least 1 calendar month following the return to

26  employment;

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

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

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

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

31


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

  2  state or federal retirement system; and

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

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

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

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

  7  claimed, plus 4 percent interest thereon compounded annually

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

  9  1, 1975, and 6.5 percent interest thereafter on the unpaid

10  balance compounded annually each June 30 until paid.

11         Section 10.  Effective July 1, 2001, paragraph (b) of

12  subsection (1) of section 121.1115, Florida Statutes, is

13  amended to read:

14         121.1115  Purchase of retirement credit for

15  out-of-state and federal service.--Effective January 1, 1995,

16  a member of the Florida Retirement System may purchase

17  creditable service for periods of public employment in another

18  state and receive creditable service for such periods of

19  employment. Service with the Federal Government, including any

20  military service, may be claimed. Upon completion of each year

21  of service earned under the Florida Retirement System, a

22  member may purchase up to 1 year of retirement credit for his

23  or her out-of-state service, subject to the following

24  provisions:

25         (1)  LIMITATIONS AND CONDITIONS.--To receive credit for

26  the out-of-state service:

27         (b)  The member must have completed a minimum of 6 10

28  years of creditable service under the Florida Retirement

29  System, excluding out-of-state service and in-state service

30  claimed and purchased under s. 121.1122.

31


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  1         Section 11.  Effective July 1, 2001, paragraph (a) of

  2  subsection (2) of section 121.1122, Florida Statutes, is

  3  amended to read:

  4         121.1122  Purchase of retirement credit for in-state

  5  public service and in-state service in accredited nonpublic

  6  schools and colleges, including charter schools and charter

  7  technical career centers.--Effective January 1, 1998, a member

  8  of the Florida Retirement System may purchase creditable

  9  service for periods of certain public or nonpublic employment

10  performed in this state, as provided in this section.

11         (2)  LIMITATIONS AND CONDITIONS.--

12         (a)  A member is not eligible to receive credit for

13  in-state service under this section until he or she has

14  completed 6 10 years of creditable service under the Florida

15  Retirement System, excluding service purchased under this

16  section and out-of-state service claimed and purchased under

17  s. 121.1115.

18         Section 12.  Effective July 1, 2001, paragraph (a) of

19  subsection (1) of section 121.121, Florida Statutes, is

20  amended to read:

21         121.121  Authorized leaves of absence.--

22         (1)  A member may purchase creditable service for up to

23  2 work years of authorized leaves of absence if:

24         (a)  The member has completed a minimum of 6 10 years

25  of creditable service, excluding periods for which a leave of

26  absence was authorized;

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

28  215.32, Florida Statutes, is amended to read:

29         215.32  State funds; segregation.--

30         (2)  The source and use of each of these funds shall be

31  as follows:


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  1         (b)1.  The trust funds shall consist of moneys received

  2  by the state which under law or under trust agreement are

  3  segregated for a purpose authorized by law.  The state agency

  4  or branch of state government receiving or collecting such

  5  moneys shall be responsible for their proper expenditure as

  6  provided by law.  Upon the request of the state agency or

  7  branch of state government responsible for the administration

  8  of the trust fund, the Comptroller may establish accounts

  9  within the trust fund at a level considered necessary for

10  proper accountability. Once an account is established within a

11  trust fund, the Comptroller may authorize payment from that

12  account only upon determining that there is sufficient cash

13  and releases at the level of the account.

14         2.  In order to maintain a minimum number of trust

15  funds in the State Treasury, each state agency or the judicial

16  branch may consolidate, if permitted under the terms and

17  conditions of their receipt, the trust funds administered by

18  it; provided, however, the agency or judicial branch employs

19  effectively a uniform system of accounts sufficient to

20  preserve the integrity of such trust funds; and provided,

21  further, that consolidation of trust funds is approved by the

22  Administration Commission or the Chief Justice.

23         3.  All such moneys are hereby appropriated to be

24  expended in accordance with the law or trust agreement under

25  which they were received, subject always to the provisions of

26  chapter 216 relating to the appropriation of funds and to the

27  applicable laws relating to the deposit or expenditure of

28  moneys in the State Treasury.

29         4.a.  Notwithstanding any provision of law restricting

30  the use of trust funds to specific purposes, unappropriated

31  cash balances from selected trust funds may be authorized by


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  1  the Legislature for transfer to the Budget Stabilization Fund

  2  and Working Capital Fund in the General Appropriations Act.

  3         b.  This subparagraph does not apply to trust funds

  4  required by federal programs or mandates; trust funds

  5  established for bond covenants, indentures, or resolutions

  6  whose revenues are legally pledged by the state or public body

  7  to meet debt service or other financial requirements of any

  8  debt obligations of the state or any public body; the State

  9  Transportation Trust Fund; the trust fund containing the net

10  annual proceeds from the Florida Education Lotteries; the

11  Florida Retirement System Trust Fund; trust funds under the

12  management of the Board of Regents, where such trust funds are

13  for auxiliary enterprises, self-insurance, and contracts,

14  grants, and donations, as those terms are defined by general

15  law; trust funds that serve as clearing funds or accounts for

16  the Comptroller or state agencies; trust funds that account

17  for assets held by the state in a trustee capacity as an agent

18  or fiduciary for individuals, private organizations, or other

19  governmental units; and other trust funds authorized by the

20  State Constitution.

21         Section 14.  Paragraph (e) of subsection (1) of section

22  112.665, Florida Statutes, is amended to read:

23         112.665  Duties of Department of Management Services.--

24         (1)  The Department of Management Services shall:

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

26  Special District Information Program of the Department of

27  Community Affairs that includes the participation in and

28  compliance of special districts with the local government

29  retirement system provisions in s. 112.63 and the

30  state-administered retirement system provisions as specified

31  in part I of chapter 121; and


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  1         Section 15.  Paragraph (a) of subsection (1) of section

  2  121.091, Florida Statutes, is amended to read:

  3         121.091  Benefits payable under the system.--Benefits

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

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

  6  begun participation in the Deferred Retirement Option Program

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

  8  been filed in the manner prescribed by the department. The

  9  department may cancel an application for retirement benefits

10  when the member or beneficiary fails to timely provide the

11  information and documents required by this chapter and the

12  department's rules. The department shall adopt rules

13  establishing procedures for application for retirement

14  benefits and for the cancellation of such application when the

15  required information or documents are not received.

16         (1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or

17  her normal retirement date, the member, upon application to

18  the administrator, shall receive a monthly benefit which shall

19  begin to accrue on the first day of the month of retirement

20  and be payable on the last day of that month and each month

21  thereafter during his or her lifetime. The normal retirement

22  benefit, including any past or additional retirement credit,

23  may not exceed 100 percent of the average final compensation.

24  The amount of monthly benefit shall be calculated as the

25  product of A and B, subject to the adjustment of C, if

26  applicable, as set forth below:

27         (a)1.  For creditable years of Regular Class service, A

28  is 1.60 percent of the member's average final compensation, up

29  to the member's normal retirement date. Upon completion of the

30  first year after the normal retirement date, A is 1.63 percent

31  of the member's average final compensation.  Following the


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  1  second year after the normal retirement date, A is 1.65

  2  percent of the member's average final compensation. Following

  3  the third year after the normal retirement date, and for

  4  subsequent years, A is 1.68 percent of the member's average

  5  final compensation.

  6         2.  For creditable years of special risk service, A is:

  7         a.  Two percent of the member's average final

  8  compensation for all creditable years prior to October 1,

  9  1974;

10         b.  Three percent of the member's average final

11  compensation for all creditable years after September 30,

12  1974, and before October 1, 1978;

13         c.  Two percent of the member's average final

14  compensation for all creditable years after September 30,

15  1978, and before January 1, 1989;

16         d.  Two and two-tenths percent of the member's final

17  monthly compensation for all creditable years after December

18  31, 1988, and before January 1, 1990;

19         e.  Two and four-tenths percent of the member's average

20  final compensation for all creditable years after December 31,

21  1989, and before January 1, 1991;

22         f.  Two and six-tenths percent of the member's average

23  final compensation for all creditable years after December 31,

24  1990, and before January 1, 1992;

25         g.  Two and eight-tenths percent of the member's

26  average final compensation for all creditable years after

27  December 31, 1991, and before January 1, 1993; and

28         h.  Three percent of the member's average final

29  compensation for all creditable years after December 31, 1992;

30  and

31


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  1         i.  Three percent of the member's average final

  2  compensation for all creditable years of service after

  3  September 30, 1978, and before January 1, 1993, for any

  4  special risk member who retires after July 1, 2000, or any

  5  member of the Special Risk Administrative Support Class

  6  entitled to retain the special risk normal retirement date who

  7  was a member of the Special Risk Class during the time period

  8  and who retires after July 1, 2000.

  9         3.  For creditable years of Senior Management Service

10  Class service after January 31, 1987, A is 2 percent;

11         4.  For creditable years of Elected Officers' Class

12  service as a Supreme Court Justice, district court of appeal

13  judge, circuit judge, or county court judge, A is 3 1/3

14  percent of the member's average final compensation, and for

15  all other creditable service in such class, A is 3 percent of

16  average final compensation;

17         Section 16.  It is the intent of the Legislature that

18  costs attributable to increases in the retirement accrual

19  rates for October 1978 through December 1992 for members of

20  the Special Risk Class shall be funded by recognition of a

21  lump sum from the excess actuarial assets of the Florida

22  Retirement System Trust Fund as follows:

23         (1)  For fiscal year 2000-2001, the lump sum to be

24  recognized shall be the greater of:

25         (a)  $345 million; or

26         (b)  The amount available under the rate stabilization

27  mechanism described in s. 121.031, Florida Statutes, after any

28  other recognition of excess actuarial assets pursuant to this

29  act.

30         (2)(a)  For fiscal years 2001-2002 and 2002-2003, the

31  lump sums to be recognized shall be the lesser of:


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  1         1.  The amount available under the rate stabilization

  2  mechanism described in s. 121.031, Florida Statutes, after any

  3  other recognition of excess actuarial assets pursuant to this

  4  act; or

  5         2.  The remaining amount needed to fully fund the

  6  benefit accrual rate.

  7         (b)  If, after the recognition of excess actuarial

  8  assets pursuant to this subsection, there remains an unfunded

  9  actuarial liability attributable to the increase in the

10  retirement accrual rates for the Special Risk Class, the

11  contribution rate applicable to the Special Risk Class of the

12  Florida Retirement System shall be increased by 1.85

13  percentage points, effective July 1, 2002, unless the

14  Legislature provides an alternative funding mechanism.

15         Section 17.  Effective July 1, 2001, paragraphs (a) and

16  (j) of subsection (4) of section 121.091, Florida Statutes,

17  are 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 department. The

24  department may cancel an application for retirement benefits

25  when the member or beneficiary fails to timely provide the

26  information and documents required by this chapter and the

27  department's rules. The department shall adopt rules

28  establishing procedures for application for retirement

29  benefits and for the cancellation of such application when the

30  required information or documents are not received.

31         (4)  DISABILITY RETIREMENT BENEFIT.--


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  1         (a)  Disability retirement; entitlement and effective

  2  date.--

  3         1.a.  A member who becomes totally and permanently

  4  disabled, as defined in paragraph (b), after completing 5

  5  years of creditable service, or a member who becomes totally

  6  and permanently disabled in the line of duty regardless of

  7  service, shall be entitled to a monthly disability benefit;

  8  except that any member with less than 5 years of creditable

  9  service on July 1, 1980, or any person who becomes a member of

10  the Florida Retirement System on or after such date must have

11  completed 10 years of creditable service prior to becoming

12  totally and permanently disabled in order to receive

13  disability retirement benefits for any disability which occurs

14  other than in the line of duty. However, if a member employed

15  on July 1, 1980, with less than 5 years of creditable service

16  as of that date, becomes totally and permanently disabled

17  after completing 5 years of creditable service and is found

18  not to have attained fully insured status for benefits under

19  the federal Social Security Act, such member shall be entitled

20  to a monthly disability benefit.

21         b.  Effective July 1, 2001, a member of the defined

22  benefit retirement program who becomes totally and permanently

23  disabled, as defined in paragraph (b), after completing 8

24  years of creditable service, or a member who becomes totally

25  and permanently disabled in the line of duty regardless of

26  service, shall be entitled to a monthly disability benefit.

27         2.  If the division has received from the employer the

28  required documentation of the member's termination of

29  employment, the effective retirement date for a member who

30  applies and is approved for disability retirement shall be

31  established by rule of the division.


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  1         3.  For a member who is receiving Workers' Compensation

  2  payments, the effective disability retirement date may not

  3  precede the date the member reaches Maximum Medical

  4  Improvement (MMI), unless the member terminates employment

  5  prior to reaching MMI.

  6         (j)  Disability retirement of justice or judge by order

  7  of Supreme Court.--

  8         1.  If a member is a justice of the Supreme Court,

  9  judge of a district court of appeal, circuit judge, or judge

10  of a county court who has served for 6 10 years or more as an

11  elected constitutional judicial officer, including service as

12  a judicial officer in any court abolished pursuant to Art. V

13  of the State Constitution, and who is retired for disability

14  by order of the Supreme Court upon recommendation of the

15  Judicial Qualifications Commission pursuant to the provisions

16  of Art. V of the State Constitution, the member's Option 1

17  monthly benefit as provided in subparagraph (6)(a)1. shall not

18  be less than two-thirds of his or her monthly compensation as

19  of the member's disability retirement date.  Such a member may

20  alternatively elect to receive a disability retirement benefit

21  under any other option as provided in paragraph (6)(a).

22         2.  Should any justice or judge who is a member of the

23  Florida Retirement System be retired for disability by order

24  of the Supreme Court upon recommendation of the Judicial

25  Qualifications Commission pursuant to the provisions of Art. V

26  of the State Constitution, then all contributions to his or

27  her account and all contributions made on his or her behalf by

28  the employer shall be transferred to and deposited in the

29  General Revenue Fund of the state, and there is hereby

30  appropriated annually out of the General Revenue Fund, to be

31  paid into the Florida Retirement System Fund, an amount


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  1  necessary to pay the benefits of all justices and judges

  2  retired from the Florida Retirement System pursuant to Art. V

  3  of the State Constitution.

  4         Section 18.  Effective July 1, 2001, subsections (2)

  5  and (3) of section 112.363, Florida Statutes, are amended to

  6  read:

  7         112.363  Retiree health insurance subsidy.--

  8         (2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

  9  SUBSIDY.--

10         (a)  A person who is retired under a state-administered

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

12  financial dependent entitled to receive benefits under a

13  state-administered retirement system, is eligible for health

14  insurance subsidy payments provided under this section; except

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

16  250.22, recipients of health insurance coverage under s.

17  110.1232, or any other special pension or relief act shall not

18  be eligible for such payments.

19         (b)  For purposes of this section, a person is deemed

20  retired from a state-administered retirement system when he or

21  she terminates employment with all employers participating in

22  the Florida Retirement System as described in s. 121.021(39)

23  and:

24         1.  For a participant of the Public Employee Optional

25  Retirement Program established under part II of chapter 121,

26  the participant meets the age or service requirements to

27  qualify for normal retirement as set forth in s. 121.021(29).

28         2.  For a member of the Florida Retirement System

29  defined benefit program, or any employee who maintains

30  creditable service under both the defined benefit program and

31  the Public Employee Optional Retirement Program, the member


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  1  begins drawing retirement benefits from the defined benefit

  2  program of the Florida Retirement System.

  3         (c)1.  Effective July 1, 2001, any person retiring on

  4  or after such date as a member of the Florida Retirement

  5  System, including any participant of the defined contribution

  6  program administered pursuant to part II of chapter 121, must

  7  have satisfied the vesting requirements for his or her

  8  membership class under the Florida Retirement System defined

  9  benefit program as administered under part I of chapter 121.

10         2.  Notwithstanding the provisions of subparagraph 1.,

11  a person retiring due to disability must either qualify for a

12  regular or in-line-of-duty disability benefit as provided in

13  s. 121.091(4) or qualify for a disability benefit under a

14  disability plan established under part II of chapter 121, as

15  appropriate.

16         (d)  Payment of the retiree health insurance subsidy

17  shall be made only after coverage for health insurance for the

18  retiree or beneficiary has been certified in writing to the

19  Department of Management Services. Participation in a former

20  employer's group health insurance program is not a requirement

21  for eligibility under this section.

22         (e)  However, Participants in the Senior Management

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

24  and the State University System Optional Retirement Program as

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

26  insurance subsidy provided in this section.  The employer of

27  such participant shall pay the contributions required in

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

29  121.055(6)(d) or s. 121.35(4)(a), as applicable.

30         (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--

31


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  1         (a)  Beginning January 1, 1988, each eligible retiree

  2  or a beneficiary who is a spouse or financial dependent

  3  thereof shall receive a monthly retiree health insurance

  4  subsidy payment equal to the number of years of creditable

  5  service, as defined in s. 121.021(17), completed at the time

  6  of retirement multiplied by $1; however, no retiree may

  7  receive a subsidy payment of more than $30 or less than $10.

  8         (b)  Beginning January 1, 1989, each eligible retiree

  9  or a beneficiary who is a spouse or financial dependent shall

10  receive a monthly retiree health insurance subsidy payment

11  equal to the number of years of creditable service, as defined

12  in s. 121.021(17), completed at the time of retirement

13  multiplied by $2; however, no retiree may receive a subsidy

14  payment of more than $60 or less than $20.

15         (c)  Beginning January 1, 1991, each eligible retiree

16  or a beneficiary who is a spouse or financial dependent shall

17  receive a monthly retiree health insurance subsidy payment

18  equal to the number of years of creditable service, as defined

19  in s. 121.021(17), completed at the time of retirement

20  multiplied by $3; however, no retiree may receive a subsidy

21  payment of more than $90 or less than $30.

22         (d)  Beginning January 1, 1999, each eligible retiree

23  or, if the retiree is deceased, his or her beneficiary who is

24  receiving a monthly benefit from such retiree's account and

25  who is a spouse, or a person who meets the definition of joint

26  annuitant in s. 121.021(28), shall receive a monthly retiree

27  health insurance subsidy payment equal to the number of years

28  of creditable service, as defined in s. 121.021(17), completed

29  at the time of retirement multiplied by $5; however, no

30  eligible retiree or such beneficiary may receive a subsidy

31  payment of more than $150 or less than $50.  If there are


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  1  multiple beneficiaries, the total payment must not be greater

  2  than the payment to which the retiree was entitled.

  3         (e)1.  Beginning July 1, 2001, each eligible retiree of

  4  the defined benefit program of the Florida Retirement System,

  5  or, if the retiree is deceased, his or her beneficiary who is

  6  receiving a monthly benefit from such retiree's account and

  7  who is a spouse, or a person who meets the definition of joint

  8  annuitant in s. 121.021(28), shall receive a monthly retiree

  9  health insurance subsidy payment equal to the number of years

10  of creditable service, as defined in s. 121.021(17), completed

11  at the time of retirement multiplied by $5; however, no

12  eligible retiree or beneficiary may receive a subsidy payment

13  of more than $150 or less than $30.  If there are multiple

14  beneficiaries, the total payment must not be greater than the

15  payment to which the retiree was entitled.  The health

16  insurance subsidy amount payable to any person receiving the

17  retiree health insurance subsidy payment on July 1, 2001,

18  shall not be reduced solely by operation of this subparagraph.

19         2.  Beginning July 1, 2002, each eligible participant

20  of the Public Employee Optional Retirement Program of the

21  Florida Retirement System who has met the requirements of this

22  section, or, if the participant is deceased, his or her spouse

23  who is the participant's designated beneficiary, shall receive

24  a monthly retiree health insurance subsidy payment equal to

25  the number of years of creditable service, as provided in this

26  subparagraph, completed at the time of retirement, multiplied

27  by $5; however, no eligible retiree or beneficiary may receive

28  a subsidy payment of more than $150 or less than $30.  For

29  purposes of determining a participant's creditable service

30  used to calculate the health insurance subsidy, a

31  participant's years of service credit or fraction thereof


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  1  shall be based on the participant's work year as defined in s.

  2  121.021(54).  Credit shall be awarded for a full work year

  3  whenever health insurance subsidy contributions have been made

  4  as required by law for each month in the participant's work

  5  year.  In addition, all years of creditable service retained

  6  under the Florida Retirement System defined benefit program

  7  shall be included as creditable service for purposes of this

  8  section.

  9         Section 19.  Paragraphs (b) and (h) of subsection (1),

10  paragraph (b) of subsection (4), and paragraph (e) of

11  subsection (6) of section 121.055, Florida Statutes, are

12  amended to read:

13         121.055  Senior Management Service Class.--There is

14  hereby established a separate class of membership within the

15  Florida Retirement System to be known as the "Senior

16  Management Service Class," which shall become effective

17  February 1, 1987.

18         (1)

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

20  January 1, 1990, participation in the Senior Management

21  Service Class shall be compulsory for the president of each

22  community college, the manager of each participating city or

23  county, and all appointed district school superintendents.

24  Effective January 1, 1994, additional positions may be

25  designated for inclusion in the Senior Management Service

26  Class of the Florida Retirement System, provided that:

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

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

29  designate positions for inclusion in the class shall be

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

31


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  1  of general circulation published in the county or counties

  2  affected, as provided in chapter 50.

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

  4  position may be designated for each local agency employer

  5  reporting to the Department of Management Services; for local

  6  agencies with 100 or more regularly established positions,

  7  additional nonelective full-time positions may be designated,

  8  not to exceed 1 percent of the regularly established positions

  9  within the agency.

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

11  managerial or policymaking position filled by an employee who

12  is not subject to continuing contract and serves at the

13  pleasure of the local agency employer without civil service

14  protection, and who:

15         (I)  Heads an organizational unit; or

16         (II)  Has responsibility to effect or recommend

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

18  her areas of responsibility.

19         2.  In lieu of participation in the Senior Management

20  Service Class, members of the Senior Management Service Class

21  pursuant to the provisions of subparagraph 1. may withdraw

22  from the Florida Retirement System altogether. The decision to

23  withdraw from the Florida Retirement System shall be

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

25  Any service creditable under the Senior Management Service

26  Class shall be retained after the member withdraws from the

27  Florida Retirement System; however, additional service credit

28  in the Senior Management Service Class shall not be earned

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

30  participate in the Senior Management Service Optional Annuity

31  Program.


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

  2  January 1, 1994, participation in the Senior Management

  3  Service Class shall be compulsory for the State Courts

  4  Administrator and the Deputy State Courts Administrators, the

  5  Clerk of the Supreme Court, the Marshal of the Supreme Court,

  6  the Executive Director of the Justice Administrative

  7  Commission, the Capital Collateral Regional Counsels

  8  Representative, the clerks of the district courts of appeals,

  9  the marshals of the district courts of appeals, and the trial

10  court administrator in each judicial circuit. Effective

11  January 1, 1994, additional positions in the offices of the

12  state attorney and public defender in each judicial circuit

13  may be designated for inclusion in the Senior Management

14  Service Class of the Florida Retirement System, provided that:

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

16  designated by the state attorney or public defender, as

17  appropriate.  Notice of intent to designate positions for

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

19  consecutive weeks in a newspaper of general circulation

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

21  chapter 50.

22         b.  One nonelective full-time position may be

23  designated for each state attorney and public defender

24  reporting to the Department of Management Services; for

25  agencies with 200 or more regularly established positions

26  under the state attorney or public defender, additional

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

28  exceed 0.5 percent of the regularly established positions

29  within the agency.

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

31  managerial or policymaking position filled by an employee who


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  1  serves at the pleasure of the state attorney or public

  2  defender without civil service protection, and who:

  3         (I)  Heads an organizational unit; or

  4         (II)  Has responsibility to effect or recommend

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

  6  her areas of responsibility.

  7         2.  Participation in this class shall be compulsory,

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

  9  employee who holds a position designated for coverage in the

10  Senior Management Service Class, and such participation shall

11  continue until the employee terminates employment in a covered

12  position.  Effective January 1, 2001, participation in this

13  class is compulsory for assistant state attorneys, assistant

14  statewide prosecutors, assistant public defenders, and

15  assistant capital collateral regional counsels.

16         3.  In lieu of participation in the Senior Management

17  Service Class, such members, excluding assistant state

18  attorneys, assistant public defenders, assistant statewide

19  prosecutors, and assistant capital collateral regional

20  counsels, may participate in the Senior Management Service

21  Optional Annuity Program as established in subsection (6).

22         (4)

23         (b)  Service in an eligible position prior to February

24  1, 1987, or after January 31, 1987, shall satisfy the

25  requirement of attaining the normal retirement date as defined

26  in s. 121.021(29) for a Senior Management Service Class

27  member, provided the employee is a member of the Senior

28  Management Service Class after January 31, 1987.  A member of

29  this class who fails to complete 6 7 years of creditable

30  service in an eligible position shall be required to satisfy

31


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  1  the requirements for the normal retirement date for a regular

  2  member as provided in s. 121.021(29).

  3         (6)

  4         (e)  Benefits.--

  5         1.  Benefits shall be payable under the Senior

  6  Management Service Optional Annuity Program only to

  7  participants in the program, or their beneficiaries as

  8  designated by the participant in the contract with a provider

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

10  company in accordance with the terms of the annuity contract

11  or contracts applicable to the participant. A participant must

12  be terminated from all employment with all Florida Retirement

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

14  receiving the employer-funded benefit. Benefits funded by

15  employer contributions shall be payable only as a lifetime

16  annuity to the participant, his or her beneficiary, or his or

17  her estate, except for:

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

19  death of the participant; or

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

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

22  of 6 months from the employment that entitled him or her to

23  optional annuity program participation. A de minimis account

24  is an account with a provider company containing employer

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

26  made under the provisions of this chapter. Such cash-out must

27  be a complete liquidation of the account balance with that

28  company and is subject to the provisions of the Internal

29  Revenue Code; or

30         c.  A lump-sum direct rollover distribution whereby all

31  accrued benefits, plus interest and investment earnings, are


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  1  paid from the participant's account directly to the custodian

  2  of an eligible retirement plan, as defined in s. 402(c)(8)(B)

  3  of the Internal Revenue Code, on behalf of the participant.

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

  5  Management Service Optional Annuity Program, and any

  6  contribution accumulated under such program, shall not be

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

  8  legal process whatsoever.

  9         3.  A participant who receives optional annuity program

10  benefits funded by employer contributions shall be deemed to

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

12  event of subsequent employment with any employer that

13  participates in the Florida Retirement System.

14         Section 20.  It is the intent of the Legislature that

15  the normal costs attributable to the reduction in vesting

16  requirements for members of the defined benefit retirement

17  program shall be funded by recognition of a lump sum from the

18  excess actuarial assets of the Florida Retirement System Trust

19  Fund as follows:

20         (1)  For fiscal year 2001-2002, the lump sum to be

21  recognized shall be the annual cost attributable to 6-year

22  vesting.

23         (2)  For fiscal year 2002-2003, the Legislature intends

24  to recognize a lump sum equal to the annual cost attributable

25  to 6-year vesting and shall review the contribution rates

26  necessary to fund this change in vesting requirements.  Absent

27  legislative action to recognize an additional lump sum for

28  fiscal year 2002-2003 and thereafter, the contribution rates

29  shall be increased as follows:

30

31


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  1         (a)  The contribution rate that applies to the Regular

  2  Class of the Florida Retirement System shall be increased by

  3  0.42 percentage points.

  4         (b)  The contribution rate that applies to the Special

  5  Risk Class of the Florida Retirement System shall be increased

  6  by 0.64 percentage points.

  7         (c)  The contribution rate that applies to the Special

  8  Risk Administrative Support Class of the Florida Retirement

  9  System shall be increased by 0.30 percentage points.

10         (d)  The contribution rate that applies to the Judicial

11  subclass of the Elected Officers' Class of the Florida

12  Retirement System shall be increased by 0.34 percentage

13  points.

14         (e)  The contribution rate that applies to the

15  legislative-attorney-Cabinet subclass of the Elected Officers'

16  Class of the Florida Retirement System shall be increased by

17  0.66 percentage points.

18         (f)  The contribution rate that applies to the County

19  Officers' subclass of the Elected Officers' Class of the

20  Florida Retirement System shall be increased by 0.17

21  percentage points.

22         (g)  The contribution rate that applies to the Senior

23  Management Service Class of the Florida Retirement System

24  shall be increased by 0.19 percentage points.

25

26  These increases shall be in addition to all other changes to

27  such contribution rates which may be enacted into law to take

28  effect on that date.  The Division of Statutory Revision is

29  directed to adjust the contribution rates set forth in ss.

30  121.052, 121.055, and 121.071, Florida Statutes. 

31


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  1         Section 21.  (1)  It is the intent of the Legislature

  2  that the normal costs attributable to the 1999 actuarial

  3  experience study of the defined benefit retirement program

  4  shall be funded by recognition of a lump sum from the excess

  5  actuarial assets of the Florida Retirement System Trust Fund

  6  as follows:

  7         (2)  For fiscal year 2000-2001, the lump sum to be

  8  recognized shall be the annual cost attributable to the 1999

  9  actuarial experience study.  For fiscal year 2001-2002, the

10  Legislature intends to recognize a lump sum of $76.7 million

11  and shall review the contribution rate necessary to fund these

12  costs.  Absent legislative action to the contrary, the

13  contribution rates shall be increased on July 1, 2001, as

14  follows:

15         (a)  The contribution rate that applies to the Regular

16  Class of the Florida Retirement System shall be increased by

17  0.28 percentage points.

18         (b)  The contribution rate that applies to the Special

19  Risk Class of the Florida Retirement System shall be increased

20  by 1.13 percentage points.

21         (c)  The contribution rate that applies to the Special

22  Risk Administrative Support Class of the Florida Retirement

23  System shall be increased by 0.65 percentage points.

24         (d)  The contribution rate that applies to the Judicial

25  subclass of the Elected Officers' Class of the Florida

26  Retirement System shall be increased by 0.00 percentage

27  points.

28         (e)  The contribution rate that applies to the

29  legislative-attorney-Cabinet subclass of the Elected Officers'

30  Class of the Florida Retirement System shall be increased by

31  0.00 percentage points.


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  1         (f)  The contribution rate that applies to the County

  2  Officers' subclass of the Elected Officers' Class of the

  3  Florida Retirement System shall be increased by 0.11

  4  percentage points.

  5         (g)  The contribution rate that applies to the Senior

  6  Management Service Class of the Florida Retirement System

  7  shall be increased by 0.36 percentage points.

  8

  9  These increases shall be in addition to all other changes to

10  such contribution rates which may be enacted into law to take

11  effect on that date.  The Division of Statutory Revision is

12  directed to adjust the contribution rates set forth in ss.

13  121.052, 121.055, and 121.071, Florida Statutes.

14         Section 22.  (1)  Effective July 1, 2000, for fiscal

15  year 2000-2001, the contribution rates for the Regular Class,

16  Special Risk Class, Special Risk Administrative Support Class,

17  each subclass of the Elected Officers' Class, and the Senior

18  Management Service Class each shall be reduced by 1.0

19  percentage points.  These reductions shall be in addition to

20  all other changes to such contribution rates which may be

21  enacted into law after July 1, 2000.

22         (2)  It is the intent of the Legislature that the costs

23  attributable to the reduction of contribution rates pursuant

24  to subsection (1) shall be funded by recognition of a lump sum

25  equal to the annual cost attributable to this reduction of the

26  contribution rates from the excess actuarial assets of the

27  Florida Retirement System Trust Fund.

28         Section 23.  Effective July 1, 2002, in order to fund

29  the changes in normal cost for the defined benefit retirement

30  program resulting from the implementation of the Public

31  Employee Optional Retirement Program, as created by this act:


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  1         (1)  The contribution rate that applies to the Regular

  2  Class of the Florida Retirement System shall be increased by

  3  0.21 percentage points.

  4         (2)  The contribution rate that applies to the Special

  5  Risk Class of the Florida Retirement System shall be increased

  6  by 0.01 percentage points.

  7         (3)  The contribution rate that applies to the Special

  8  Risk Administrative Support Class of the Florida Retirement

  9  System shall be decreased by 0.02 percentage points.

10         (4)  The contribution rate that applies to the Judicial

11  subclass of the Elected Officers' Class of the Florida

12  Retirement System shall be increased by 0.00 percentage

13  points.

14         (5)  The contribution rate that applies to the

15  legislative-attorney-Cabinet subclass of the Elected Officers'

16  Class of the Florida Retirement System shall be increased by

17  0.07 percentage points.

18         (6)  The contribution rate that applies to the County

19  Officers' subclass of the Elected Officers' Class of the

20  Florida Retirement System shall be increased by 0.00

21  percentage points.

22         (7)  The contribution rate that applies to the Senior

23  Management Service Class of the Florida Retirement System

24  shall be increased by 0.00 percentage points.

25

26  These increases shall be in addition to all other changes to

27  such contribution rates which may be enacted into law to take

28  effect on that date.  The Division of Statutory Revision is

29  directed to adjust the contribution rates set forth in ss.

30  121.052, 121.055, and 121.071, Florida Statutes.

31


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  1         Section 24.  (1)  Effective July 1, 2000, for fiscal

  2  years 2000-2001 and 2001-2002, the contribution rates for the

  3  Regular Class, Special Risk Class, Special Risk Administrative

  4  Support Class, each subclass of the Elected Officers' Class,

  5  and the Senior Management Service Class each shall be reduced

  6  by 0.1 percentage points. These reductions shall be in

  7  addition to all other changes to such contribution rates which

  8  may be enacted into law to take effect on that date.

  9         (2)  It is the intent of the Legislature that the costs

10  attributable to the reduction of contribution rates pursuant

11  to subsection (1) shall be funded by a recognition of a lump

12  sum from the excess actuarial assets of the Florida Retirement

13  System Trust Fund for fiscal years 2000-2001 and 2001-2002.

14         Section 25.  (1)  In order to implement the provisions

15  of this act, the State Board of Administration, the Department

16  of Management Services, and the employers participating in the

17  Florida Retirement System shall coordinate efforts to the

18  greatest extent practicable.

19         (2)(a)  For fiscal years 2000-2001 and 2001-2002, each

20  employer participating in the Florida Retirement System

21  administered pursuant to chapter 121, Florida Statutes, shall

22  pay an additional contribution to the Division of Retirement

23  equal to 0.1 percent of each member's gross compensation for

24  deposit in the division's Operating Trust Fund.  The

25  contributions shall be made for each pay period and are in

26  addition to all contributions required for the Florida

27  Retirement System, social security, and the Retiree Health

28  Insurance Subsidy Trust Fund.

29         (b)  Such contributions shall be transferred

30  immediately from the division's Operating Trust Fund to the

31  State Board of Administration's Administrative Expense Trust


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  1  Fund to offset the costs of implementing the Public Employee

  2  Optional Retirement Program as created by this act.  Such

  3  funds may be expended by the State Board of Administration to

  4  offset reasonable expenses incurred by the board and the

  5  Public Employee Optional Retirement Program Advisory

  6  Committee.  The board shall transfer such funds as are

  7  necessary to the Division of Retirement in order to carry out

  8  the provisions of this act.

  9         (3)  The Trustees of the State Board of Administration

10  shall take all steps necessary and appropriate to ensure that

11  the Public Employee Optional Retirement Program created by

12  this act is implemented in an expeditious and professional

13  manner. Acting through the executive director of the State

14  Board of Administration, defined contribution program costs

15  shall be separately budgeted and accounted for, staff shall

16  report to a separate unit director, and other steps shall be

17  taken to ensure that a focused implementation working group is

18  organized and on task. The executive director shall report

19  separately to the trustees on defined contribution and defined

20  benefit program activities and the trustees shall prepare

21  separate reports to the Legislature on each program's

22  accomplishments and activities. These reports shall be

23  prepared at the discretion of the trustees, but no less

24  frequently than annually.

25         Section 26.  Subsection (3) of section 121.031, Florida

26  Statutes, is amended to read:

27         121.031  Administration of system; appropriation;

28  oaths; actuarial studies; public records.--

29         (3)  The administrator shall cause an actuarial study

30  of the system to be made at least annually once every 2 years

31  and shall report the results of such study to the Legislature


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  1  by December 31 February 1 prior to the next legislative

  2  session.

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

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

  5  additions:

  6         1.  The valuation of plan assets shall be based on a

  7  5-year averaging methodology such as that specified in the

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

  9  1.412(c)(2)-1, or a similar accepted approach designed to

10  attenuate fluctuations in asset values.

11         2.  The study shall include a narrative explaining the

12  changes in the covered group over the period between actuarial

13  valuations and the impact of those changes on actuarial

14  results.

15         3.  When substantial changes in actuarial assumptions

16  have been made, the study shall reflect the results of an

17  actuarial assumption as of the current date based on the

18  assumptions utilized in the prior actuarial report.

19         4.  The study shall include an analysis of the changes

20  in actuarial valuation results by the factors generating those

21  changes.  Such analysis shall reconcile the current actuarial

22  valuation results with those results from the prior valuation.

23         5.  The study shall include measures of funding status

24  and funding progress designed to facilitate the assessment of

25  trends over several actuarial valuations with respect to the

26  overall solvency of the system. Such measures shall be adopted

27  by the division and shall be used consistently in all

28  actuarial valuations performed on the system.

29         6.  The actuarial model used to determine the adequate

30  level of funding for the Florida Retirement System shall

31  include a specific rate stabilization mechanism, as prescribed


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  1  herein. It is the intent of the Legislature to maintain as a

  2  reserve a specific portion of any actuarial surplus, and to

  3  use such reserve for the purpose of offsetting future unfunded

  4  liabilities caused by experience losses, thereby minimizing

  5  the risk of future increases in contribution rates.  It is

  6  further the intent of the Legislature that the use of any

  7  excess above the reserve to offset retirement system normal

  8  cost shall be in a manner that will allow system employers to

  9  plan appropriately for resulting cost reductions and

10  subsequent cost increases.  The rate stabilization mechanism

11  shall operate as follows:

12         a.  The actuarial surplus shall be the value of

13  actuarial assets over actuarial liabilities, as is determined

14  on the preceding June 30 or as may be estimated on the

15  preceding December 31.

16         b.  The full amount of any experience loss shall be

17  offset, to the extent possible, by any actuarial surplus.

18         c.  If the actuarial surplus exceeds 5 percent of

19  actuarial liabilities, one-half of the excess may be used to

20  offset total retirement system costs.  In addition, if the

21  actuarial surplus exceeds 10 percent of actuarial liabilities,

22  an additional one-fourth of the excess above 10 percent may be

23  used to offset total retirement system costs.  In addition, if

24  the actuarial surplus exceeds 15 percent of actuarial

25  liabilities, an additional one-fourth of the excess above 15

26  percent may be used to offset total retirement system costs.

27         d.  Any surplus amounts available to offset total

28  retirement system costs pursuant to sub-subparagraph c. should

29  be amortized each year over a 10-year rolling period on a

30  level-dollar basis.

31


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  1         (b)  The Florida Retirement System Actuarial Assumption

  2  Conference which is hereby created shall by consensus develop

  3  official information with respect to the economic and

  4  noneconomic assumptions and funding methods of the Florida

  5  Retirement System necessary to perform the study. Such

  6  information shall include: an analysis of the actuarial

  7  assumptions and actuarial methods and a determination of

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

  9  due to experience changes or revised future forecasts. The

10  members of the conference shall include the Executive Office

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

12  Demographic Research, and professional staff of the Senate and

13  House of Representatives who have forecasting expertise, or

14  their designees.  The Executive Office of the Governor shall

15  have the responsibility of presiding over the sessions of the

16  conference.  The State Board of Administration and the

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

18  216.134, in the conference.

19         Section 27.  The Department of Management Services

20  shall report to the Legislature no later than February 1,

21  2001, on the effects of 6-year vesting on the incidental

22  disability benefit and the health insurance subsidy.  The

23  Legislature intends to consider legislation regarding

24  disability for both the defined benefit and defined

25  contribution programs during the 2001 regular legislative

26  session.

27         Section 28.  Paragraph (d) is added to subsection (15)

28  of section 121.021, Florida Statutes, to read:

29         121.021  Definitions.--The following words and phrases

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

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


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  1         (15)

  2         (d)1.  Effective January 1, 2001, "special risk member"

  3  includes any member who is employed as a community-based

  4  correctional probation officer and meets the special criteria

  5  set forth in s. 121.0515(2)(e).

  6         2.  Effective January 1, 2001, "special risk member"

  7  includes any professional health care bargaining unit or

  8  non-unit member who is employed by the Department of

  9  Corrections or the Department of Children and Family Services

10  and meets the special criteria set forth in s. 121.0515(2)(f).

11         Section 29.  Subsection (2) of section 121.0515,

12  Florida Statutes, is amended to read:

13         121.0515  Special risk membership; criteria;

14  designation and removal of classification; credits for past

15  service and prior service; retention of special risk normal

16  retirement date.--

17         (2)  CRITERIA.--A member, to be designated as a special

18  risk member, must meet the following criteria:

19         (a)  The member must be employed as a law enforcement

20  officer and be certified, or required to be certified, in

21  compliance with s. 943.1395; however, sheriffs and elected

22  police chiefs shall be excluded from meeting the certification

23  requirements of this paragraph.  In addition, the member's

24  duties and responsibilities must include the pursuit,

25  apprehension, and arrest of law violators or suspected law

26  violators; or the member must be an active member of a bomb

27  disposal unit whose primary responsibility is the location,

28  handling, and disposal of explosive devices; or the member

29  must be the supervisor or command officer of a member or

30  members who have such responsibilities; provided, however,

31  administrative support personnel, including, but not limited


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  1  to, those whose primary duties and responsibilities are in

  2  accounting, purchasing, legal, and personnel, shall not be

  3  included;

  4         (b)  The member must be employed as a firefighter and

  5  be certified, or required to be certified, in compliance with

  6  s. 633.35 and be employed solely within the fire department of

  7  the employer or agency of state government.  In addition, the

  8  member's duties and responsibilities must include on-the-scene

  9  fighting of fires or direct supervision of firefighting units,

10  or the member must be the supervisor or command officer of a

11  member or members who have such responsibilities; provided,

12  however, administrative support personnel, including, but not

13  limited to, those whose primary duties and responsibilities

14  are in accounting, purchasing, legal, and personnel, shall not

15  be included;

16         (c)  The member must be employed as a correctional

17  officer and be certified, or required to be certified, in

18  compliance with s. 943.1395.  In addition, the member's

19  primary duties and responsibilities must be the custody, and

20  physical restraint when necessary, of prisoners or inmates

21  within a prison, jail, or other criminal detention facility,

22  or while on work detail outside the facility, or while being

23  transported; or the member must be the supervisor or command

24  officer of a member or members who have such responsibilities;

25  provided, however, administrative support personnel,

26  including, but not limited to, those whose primary duties and

27  responsibilities are in accounting, purchasing, legal, and

28  personnel, shall not be included; however, superintendents and

29  assistant superintendents shall participate in the Special

30  Risk Class; or

31


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  1         (d)  The member must be employed by a licensed Advance

  2  Life Support (ALS) or Basic Life Support (BLS) employer as an

  3  emergency medical technician or a paramedic and be certified

  4  in compliance with s. 401.27.  In addition, the member's

  5  primary duties and responsibilities must include on-the-scene

  6  emergency medical care.  However, administrative support

  7  personnel, including, but not limited to, those whose primary

  8  responsibilities are in accounting, purchasing, legal, and

  9  personnel, shall not be included;.

10         (e)  The member must be employed as a community-based

11  correctional probation officer and be certified, or required

12  to be certified, in compliance with s. 943.1395.  In addition,

13  the member's primary duties and responsibilities must be the

14  supervised custody, surveillance, control, investigation, and

15  counseling of assigned inmates, probationers, parolees, or

16  community controllees within the community; or the member must

17  be the supervisor of a member or members who have such

18  responsibilities. Administrative support personnel, including,

19  but not limited to, those whose primary duties and

20  responsibilities are in accounting, purchasing, legal

21  services, and personnel management, shall not be included;

22  however, probation and parole circuit and deputy circuit

23  administrators shall participate in the Special Risk Class; or

24         (f)  The member must be employed in one of the

25  following classes and must spend at least 75 percent of his or

26  her time performing duties which involve contact with patients

27  or inmates in a correctional or forensic facility or

28  institution:

29         1.  Dietitian (class codes 5203 and 5204).

30         2.  Public health nutrition consultant (class code

31  5224).


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  1         3.  Psychological specialist (class codes 5230 and

  2  5231).

  3         4.  Psychologist (class code 5234).

  4         5.  Senior psychologist (class codes 5237 and 5238).

  5         6.  Regional mental health consultant (class code

  6  5240).

  7         7.  Psychological Services Director - DCF (class code

  8  5242).

  9         8.  Pharmacist (class codes 5245 and 5246).

10         9.  Senior pharmacist (class codes 5248 and 5249).

11         10.  Dentist (class code 5266).

12         11.  Senior dentist (class code 5269).

13         12.  Registered nurse (class codes 5290 and 5291).

14         13.  Senior registered nurse (class codes 5292 and

15  5293).

16         14.  Registered nurse specialist (class codes 5294 and

17  5295).

18         15.  Clinical associate (class codes 5298 and 5299).

19         16.  Advanced registered nurse practitioner (class

20  codes 5297 and 5300).

21         17.  Advanced registered nurse practitioner specialist

22  (class codes 5304 and 5305).

23         18.  Registered nurse supervisor (class codes 5306 and

24  5307).

25         19.  Senior registered nurse supervisor (class codes

26  5308 and 5309).

27         20.  Registered nursing consultant (class codes 5312

28  and 5313).

29         21.  Quality management program supervisor (class code

30  5314).

31


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  1         22.  Executive nursing director (class codes 5320 and

  2  5321).

  3         23.  Speech and hearing therapist (class code 5406); or

  4         24.  Pharmacy manager (class code 5251).

  5         Section 30.  The Legislature finds that a proper and

  6  legitimate state purpose is served when employees and retirees

  7  of the state and of its political subdivisions, and the

  8  dependents, survivors, and beneficiaries of such employees and

  9  retirees, are extended the basic protections afforded by

10  governmental retirement systems that provide fair and adequate

11  benefits that are managed, administered, and funded in an

12  actuarially sound manner, as required by section 14, Article X

13  of the State Constitution and part VII of chapter 112, Florida

14  Statutes. Therefore, the Legislature determines and declares

15  that this act fulfills an important state interest.

16         Section 31.  The State Board of Administration shall,

17  as soon as practicable after the effective date of this act,

18  request an expedited opinion from the United States Internal

19  Revenue Service as to the qualified status of the defined

20  contribution program.

21         Section 32.  Except as otherwise provided herein, this

22  act shall take effect July 1, 2000, and the Public Employee

23  Optional Retirement Program created by this act shall be

24  contingent upon:

25         1.  The State Board of Administration receiving a

26  favorable determination letter and a favorable private letter

27  ruling from the Internal Revenue Service by May 1, 2002.  If

28  the Internal Revenue Service refuses to act upon a request for

29  a private letter ruling, then a favorable legal opinion from a

30  qualified tax attorney or firm may be substituted for such

31  private letter ruling.


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  1         2.  The State Board of Administration having selected

  2  and contracted with the third-party administrator.

  3         3.  The third-party administrator having successfully

  4  established data links with the employers participating in the

  5  Florida Retirement System.

  6         4.  The education component of the Public Employee

  7  Optional Retirement Program having been available for at least

  8  90 days.

  9         5.  A diversified portfolio of financial instruments

10  having become available to participants of the Public Employee

11  Optional Retirement Program.

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

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