House Bill hb1947e1
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1                      A bill to be entitled
  2         An act relating to the Florida Retirement
  3         System; amending s. 121.0515, F.S.; including
  4         fire prevention training or firefighting duties
  5         among eligibility requirements for special risk
  6         classification; revising criteria for
  7         membership in the special risk class to include
  8         emergency medical technicians and paramedics
  9         having supervisory or command authority over
10         other emergency medical technicians and
11         paramedics or having supervisory or command
12         authority over such supervisory or command
13         personnel; amending s. 121.053, F.S.;
14         authorizing elected officers participating in
15         DROP to terminate participation in DROP and
16         enroll in a subclass of the Elected Officers'
17         Class; amending s. 121.4501, F.S.; redefining
18         the term "approved provider"; providing
19         requirements for the State Board of
20         Administration in carrying out its duties under
21         the program; providing requirements for
22         approved providers regarding federal and state
23         laws and regulations, and for communications
24         with participants; providing requirements for
25         the appointment of the executive director of
26         the State Board of Administration; amending s.
27         121.4501, F.S.; providing additional
28         definitions; providing for payment of benefits
29         pursuant to s. 121.591, F.S.; amending s.
30         121.571, F.S.; revising employer contribution
31         rates to disability accounts; creating s.
                                  1
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         121.591, F.S.; providing for payment of normal
  2         benefits, disability retirement benefits, and
  3         death benefits under the Public Employee
  4         Optional Retirement Program; providing
  5         requirements, criteria, procedures, and
  6         limitations; providing for disability benefits
  7         for certain justices and judges; limiting
  8         application of legal process to such benefits;
  9         providing a declaration of important state
10         interest; providing an effective date.
11
12  Be It Enacted by the Legislature of the State of Florida:
13
14         Section 1.  Subsection (2) of section 121.0515, Florida
15  Statutes, is amended to read:
16         121.0515  Special risk membership.--
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
                                  2
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  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, fire prevention or firefighter training, or
10  direct supervision of firefighting units, fire prevention or
11  firefighter training, or the member must be the supervisor or
12  command officer of a member or members who have such
13  responsibilities; provided, however, administrative support
14  personnel, including, but not limited to, those whose primary
15  duties and responsibilities are in accounting, purchasing,
16  legal, and personnel, shall not be included;
17         (c)  The member must be employed as a correctional
18  officer and be certified, or required to be certified, in
19  compliance with s. 943.1395.  In addition, the member's
20  primary duties and responsibilities must be the custody, and
21  physical restraint when necessary, of prisoners or inmates
22  within a prison, jail, or other criminal detention facility,
23  or while on work detail outside the facility, or while being
24  transported; or the member must be the supervisor or command
25  officer of a member or members who have such responsibilities;
26  provided, however, administrative support personnel,
27  including, but not limited to, those whose primary duties and
28  responsibilities are in accounting, purchasing, legal, and
29  personnel, shall not be included; however, wardens and
30  assistant wardens, as defined by rule, shall participate in
31  the Special Risk Class;
                                  3
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  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 or direct supervision of emergency
  7  medical technicians or paramedics, or the member must be the
  8  supervisor or command officer of one or more members who have
  9  such responsibility. However, administrative support
10  personnel, including, but not limited to, those whose primary
11  responsibilities are in accounting, purchasing, legal, and
12  personnel, shall not be included;
13         (e)  The member must be employed as a community-based
14  correctional probation officer and be certified, or required
15  to be certified, in compliance with s. 943.1395.  In addition,
16  the member's primary duties and responsibilities must be the
17  supervised custody, surveillance, control, investigation, and
18  counseling of assigned inmates, probationers, parolees, or
19  community controllees within the community; or the member must
20  be the supervisor of a member or members who have such
21  responsibilities. Administrative support personnel, including,
22  but not limited to, those whose primary duties and
23  responsibilities are in accounting, purchasing, legal
24  services, and personnel management, shall not be included;
25  however, probation and parole circuit and deputy circuit
26  administrators shall participate in the Special Risk Class; or
27         (f)  The member must be employed in one of the
28  following classes and must spend at least 75 percent of his or
29  her time performing duties which involve contact with patients
30  or inmates in a correctional or forensic facility or
31  institution:
                                  4
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         1.  Dietitian (class codes 5203 and 5204).
  2         2.  Public health nutrition consultant (class code
  3  5224).
  4         3.  Psychological specialist (class codes 5230 and
  5  5231).
  6         4.  Psychologist (class code 5234).
  7         5.  Senior psychologist (class codes 5237 and 5238).
  8         6.  Regional mental health consultant (class code
  9  5240).
10         7.  Psychological Services Director--DCF (class code
11  5242).
12         8.  Pharmacist (class codes 5245 and 5246).
13         9.  Senior pharmacist (class codes 5248 and 5249).
14         10.  Dentist (class code 5266).
15         11.  Senior dentist (class code 5269).
16         12.  Registered nurse (class codes 5290 and 5291).
17         13.  Senior registered nurse (class codes 5292 and
18  5293).
19         14.  Registered nurse specialist (class codes 5294 and
20  5295).
21         15.  Clinical associate (class codes 5298 and 5299).
22         16.  Advanced registered nurse practitioner (class
23  codes 5297 and 5300).
24         17.  Advanced registered nurse practitioner specialist
25  (class codes 5304 and 5305).
26         18.  Registered nurse supervisor (class codes 5306 and
27  5307).
28         19.  Senior registered nurse supervisor (class codes
29  5308 and 5309).
30         20.  Registered nursing consultant (class codes 5312
31  and 5313).
                                  5
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         21.  Quality management program supervisor (class code
  2  5314).
  3         22.  Executive nursing director (class codes 5320 and
  4  5321).
  5         23.  Speech and hearing therapist (class code 5406); or
  6         24.  Pharmacy manager (class code 5251).
  7         Section 2.  Paragraph (b) of subsection (1) of section
  8  121.053, Florida Statutes, is amended to read:
  9         121.053  Participation in the Elected Officers' Class
10  for retired members.--
11         (1)
12         (b)  Any retired member of the Florida Retirement
13  System, or any existing system as defined in s. 121.021(2),
14  who, on or after July 1, 1990, is serving in, or is elected or
15  appointed to, an elective office covered by the Elected
16  Officers' Class shall be enrolled in the appropriate subclass
17  of the Elected Officers' Class of the Florida Retirement
18  System, and applicable contributions shall be paid into the
19  Florida Retirement System Trust Fund as provided in s.
20  121.052(7).  Pursuant thereto:
21         1.  Any such retired member shall be eligible to
22  continue to receive retirement benefits as well as
23  compensation for the elected officer service for as long as he
24  or she remains in an elective office covered by the Elected
25  Officers' Class.
26         2.  If any such member serves in an elective office
27  covered by the Elected Officers' Class and becomes vested
28  under that class, he or she shall be entitled to receive an
29  additional retirement benefit for such elected officer
30  service.
31
                                  6
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         3.  Such member shall be entitled to purchase
  2  additional retirement credit in the Elected Officers' Class
  3  for any postretirement service performed in an elected
  4  position eligible for the Elected Officers' Class prior to
  5  July 1, 1990, or in the Regular Class for any postretirement
  6  service performed in any other regularly established position
  7  prior to July 1, 1991, by paying the applicable Elected
  8  Officers' Class or Regular Class employee and employer
  9  contributions for the period being claimed, plus 4 percent
10  interest compounded annually from the first year of service
11  claimed until July 1, 1975, and 6.5 percent interest
12  compounded thereafter, until full payment is made to the
13  Florida Retirement System Trust Fund. The contribution for
14  postretirement Regular Class service between July 1, 1985, and
15  July 1, 1991, for which the reemployed retiree contribution
16  was paid, shall be the difference between such contribution
17  and the total applicable contribution for the period being
18  claimed, plus interest. The employer of such member may pay
19  the applicable employer contribution in lieu of the member. If
20  a member does not wish to claim credit for all of the
21  postretirement service for which he or she is eligible, the
22  service the member claims must be the most recent service.
23         4.  Creditable service for which credit was received,
24  or which remained unclaimed, at retirement may not be claimed
25  or applied toward service credit earned following renewed
26  membership. However, service earned in accordance with the
27  renewed membership provisions in s. 121.122 may be used in
28  conjunction with creditable service earned under this
29  paragraph, provided applicable vesting requirements and other
30  existing statutory conditions required by this chapter are
31  met.
                                  7
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         5.  Any elected officer who is a participating member
  2  of DROP may terminate participation at any time during the
  3  60-month DROP participation period and elect to enroll in the
  4  appropriate subclass of the Elected Officers' Class, including
  5  participating in the Senior Management Service Class,
  6  effective the first day of the following month.
  7         Section 3.  Subsection (1), paragraph (a) of subsection
  8  (2), paragraph (e) of subsection (4), paragraph (b) of
  9  subsection (8), and paragraphs (a) and (b) of subsection (9)
10  of section 121.4501, Florida Statutes, are amended, and
11  paragraph (f) is added to subsection (9) of said section, to
12  read:
13         121.4501  Public Employee Optional Retirement
14  Program.--
15         (1)  The Trustees of the State Board of Administration
16  shall establish an optional defined contribution retirement
17  program for members of the Florida Retirement System under
18  which retirement benefits will be provided for eligible
19  employees who elect to participate in the program. The
20  benefits to be provided for or on behalf of participants in
21  such optional retirement program shall be provided through
22  employee-directed investments, in accordance with s. 401(a) of
23  the Internal Revenue Code and its related regulations. The
24  employers shall contribute, as provided in this section and s.
25  121.571, to the Public Employee Optional Retirement Program
26  Trust Fund toward the funding of such optional benefits.
27         (2)  DEFINITIONS.--As used in this section, the term:
28         (a)  "Approved provider" or "provider" means a private
29  sector company that is selected and approved by the state
30  board to offer one or more investment products or services to
31  the Public Employee Optional Retirement Program, including a
                                  8
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  "bundled provider" that offers participants a range of
  2  individually allocated or unallocated investment products and
  3  may offer a range of administrative and customer services,
  4  which may include accounting and administration of individual
  5  participant benefits and contributions; individual participant
  6  recordkeeping; asset purchase, control, and safekeeping;
  7  direct execution of the participant's instructions as to asset
  8  and contribution allocation; calculation of daily net asset
  9  values; direct access to participant account information;
10  periodic reporting to participants, at least quarterly, on
11  account balances and transactions; direct advice and guidance
12  on its investments options; a broad array of distribution
13  options; and asset allocation and retirement counseling and
14  education. Private sector companies include investment
15  management companies, insurance companies, depositories, and
16  mutual fund companies.
17         (4)  PARTICIPATION; ENROLLMENT.--
18         (e)  After the period during which an eligible employee
19  had the choice to elect the defined benefit program or the
20  Public Employee Optional Retirement Program, the employee
21  shall have one opportunity, that is, a second election, at the
22  employee's discretion, to choose to move from the defined
23  benefit program to the Public Employee Optional Retirement
24  Program or from the Public Employee Optional Retirement
25  Program to the defined benefit program. This paragraph shall
26  be contingent upon approval from the Internal Revenue Service
27  for including the choice described herein within the programs
28  offered by the Florida Retirement System.
29         1.  If the employee chooses to move to the Public
30  Employee Optional Retirement Program, the applicable
31  provisions of this section shall govern the transfer.
                                  9
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         2.  If the employee chooses to move from the Public
  2  Employee Optional Retirement Program to the defined benefit
  3  program, the employee must transfer from his or her optional
  4  program Public Employee Optional Retirement Program account
  5  and from other employee moneys as necessary, a sum
  6  representing all contributions that would have been made to
  7  the defined benefit plan for that employee and the actual
  8  return that would have been earned on those contributions had
  9  they been invested in the defined benefit program.
10
11  If, at the time of a member's election to transfer to the
12  defined benefit program, the member's optional program account
13  does not contain the total amount required to be transferred
14  to the defined benefit program, the member must pay the
15  remaining balance. If the member's optional program account
16  contains more than the amount required to be transferred to
17  the defined benefit program, such additional amount shall
18  remain in the member's optional program account.
19         (8)  ADMINISTRATION OF PROGRAM.--
20         (b)1.  The state board shall select and contract with
21  one third-party administrator to provide administrative
22  services, where those services do not duplicate services
23  provided by the Division of Retirement within the Department
24  of Management Services. With the approval of the state board,
25  the 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
                                  10
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  administrator may not be an approved provider or be affiliated
  2  with an approved provider.
  3         2.  These administrative services may include, but are
  4  not limited to, enrollment of eligible employees, collection
  5  of employer contributions, disbursement of such contributions
  6  to approved providers in accordance with the allocation
  7  directions of participants; services relating to consolidated
  8  billing; individual and collective recordkeeping and
  9  accounting; asset purchase, control, and safekeeping; and
10  direct disbursement of funds to and from the third-party
11  administrator, the division, the board, employers,
12  participants, approved providers, and beneficiaries. Nothing
13  in this section shall prevent or prohibit a bundled provider
14  from providing any administrative or customer service,
15  including accounting and administration of individual
16  participant benefits and contributions; individual participant
17  recordkeeping; asset purchase, control, and safekeeping;
18  direct execution of the participant's instructions as to asset
19  and contribution allocation; calculation of daily net asset
20  values; direct access to participant account information;
21  periodic reporting to participants, at least quarterly, on
22  account balances and transactions.
23         3.  The state board shall select and contract with one
24  or more organizations to provide educational services. With
25  approval of the board, the organizations may subcontract with
26  other organizations or individuals to provide components of
27  the educational 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 education organization
31
                                  11
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  may not be an approved provider or be affiliated with an
  2  approved provider.
  3         4.  Educational services shall be designed by the board
  4  and department to assist employers, eligible employees,
  5  participants, and beneficiaries in order to maintain
  6  compliance with United States Department of Labor regulations
  7  under s. 404(c) of the Employee Retirement Income Security Act
  8  of 1974 and to assist employees in their choice of defined
  9  benefit or defined contribution retirement alternatives.
10  Educational services include, but are not limited to,
11  disseminating educational materials; providing retirement
12  planning education; explaining the differences between the
13  defined benefit retirement plan and the defined contribution
14  retirement plan; and offering financial planning guidance on
15  matters such as investment diversification, investment risks,
16  investment costs, and asset allocation. An approved provider
17  may also provide educational information, including retirement
18  planning and investment allocation information concerning its
19  products and services.
20         (9)  INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE
21  REVIEW.--
22         (a)  The board shall develop policy and procedures for
23  selecting, evaluating, and monitoring the performance of
24  approved providers and investment products to which employees
25  may direct retirement contributions under the program. In
26  accordance with such policy and procedures, the board shall
27  designate and contract for a number of investment products as
28  determined by the board. The board shall also select one or
29  more bundled providers, each of whom who offer nine multiple
30  investment options and related services products when such an
31  approach is determined by the board to afford value to the
                                  12
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  participants otherwise not available through individual
  2  investment products. Each approved bundled provider may offer
  3  investment options that provide participants with the
  4  opportunity to invest in each of the following asset classes,
  5  to be composed of individual options that represent either a
  6  single asset class or a combination thereof: money markets,
  7  U.S. fixed income, U.S. equities, and foreign stock. The board
  8  shall review and manage all educational materials, contract
  9  terms, fee schedules, and other aspects of the approved
10  provider relationships to ensure that no provider is unduly
11  favored or penalized by virtue of its status within the plan.
12         (b)  The board shall consider investment options or
13  products it considers appropriate to give participants the
14  opportunity to accumulate retirement benefits, subject to the
15  following:
16         1.  The Public Employee Optional Retirement Program
17  must offer a diversified mix of low-cost investment products
18  that span the risk-return spectrum, and may include a
19  guaranteed account as well as investment products such as
20  individually allocated guaranteed and variable annuities, that
21  meet the requirements of this subsection and that combine the
22  ability to accumulate investment returns with the option of
23  receiving lifetime income consistent with the long-term
24  retirement security of a pension plan and similar to the
25  lifetime income benefit provided by the Florida Retirement
26  System.
27         2.  Investment options or products offered by the group
28  of approved providers may include mutual funds, group annuity
29  contracts, individual retirement annuities, interests in
30  trusts, collective trusts, separate accounts, and other such
31  financial instruments, and shall include products that give
                                  13
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  participants the option of committing their contributions for
  2  an extended time period in an effort to obtain higher returns
  3  than could be obtained from investment products offering full
  4  liquidity.
  5         3.  The board shall not contract with any provider that
  6  imposes a front-end, back-end, contingent, or deferred sales
  7  charge, or any other fee that limits or restricts the ability
  8  of participants to select any investment product available in
  9  the optional program. This prohibition shall not apply to fees
10  or charges that are imposed on withdrawals from products that
11  give participants the option of committing their contributions
12  for an extended time period in an effort to obtain higher
13  returns than could be obtained from investment products
14  offering full liquidity, provided that the product in
15  question, net of all fees and charges, produces material
16  benefits relative to other comparable products in the program
17  offering full liquidity.
18         4.  Fees or charges for insurance features, such as
19  mortality and expense risk charges, shall be reasonable
20  relative to the benefits provided.
21         (f)1.  An approved provider shall comply with all
22  applicable federal and state securities and insurance laws and
23  regulations, as well as the applicable rules and guidelines of
24  the National Association of Securities Dealers (NASD)
25  governing the ethical marketing of investment products. In
26  furtherance of this mandate, an approved provider must agree
27  in its contract with the board to establish and maintain a
28  compliance education and monitoring system to supervise the
29  activities of all personnel who directly communicate with
30  individual participants and recommend investment products,
31
                                  14
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  which system is consistent with National Association of
  2  Security Dealers rules.
  3         2.  Approved provider personnel who directly
  4  communicate with individual participants and who recommend
  5  investment products shall make an independent and unbiased
  6  determination as to whether an investment product is suitable
  7  for a particular participant.
  8         3.  The board shall develop procedures to receive and
  9  resolve participant complaints against a provider or approved
10  provider personnel, and, when appropriate, refer such
11  complaints to the appropriate regulatory agency.
12         4.  Approved providers are prohibited from selling or
13  in any way distributing any customer list or participant
14  identification information generated through their offering of
15  products or services through the optional retirement program.
16         Section 4.  The appointment of the executive director
17  of the State Board of Administration shall be subject to the
18  approval by a majority vote of the Board of Trustees of the
19  State Board of Administration and the Governor must vote on
20  the prevailing side. Such appointment must be reaffirmed in
21  the same manner by the Board of Trustees on an annual basis.
22         Section 5.  Paragraphs (b) through (j) of subsection
23  (2) of section 121.4501, Florida Statutes, are redesignated as
24  paragraphs (d) through (l), respectively, new paragraphs (b)
25  and (c) are added to said subsection, and subsections (7) and
26  (16) of said section are amended, to read:
27         121.4501  Public Employee Optional Retirement
28  Program.--
29         (2)  DEFINITIONS.--As used in this section, the term:
30         (b)  "Average monthly compensation" means one-twelfth
31  of average final compensation as defined in s. 121.021(24).
                                  15
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         (c)  "Covered employment" means employment in a
  2  regularly established position as defined in s. 121.021(52).
  3         (7)  BENEFITS.--Under the Public Employee Optional
  4  Retirement Program:
  5         (a)  Benefits shall be provided in accordance with s.
  6  401(a) of the Internal Revenue Code.
  7         (b)  Benefits shall accrue in individual accounts that
  8  are participant-directed, portable, and funded by employer
  9  contributions and earnings thereon.
10         (c)  Benefits shall be payable in accordance with s.
11  121.591. the following terms and conditions:
12         1.  To the extent vested, benefits shall be payable
13  only to a participant, or to his or her beneficiaries as
14  designated by the participant.
15         2.  Benefits shall be paid by the third-party
16  administrator or designated approved providers in accordance
17  with the law, the contracts, and any applicable board rule or
18  policy.
19         3.  To begin receiving the benefits, the participant
20  must be terminated from all employment with all Florida
21  Retirement System employers, as provided in s. 121.021(39), or
22  the participant must be deceased. If a participant elects to
23  receive his or her benefits upon termination of employment,
24  the participant must submit a written application to the
25  third-party administrator indicating his or her preferred
26  distribution date and selecting an authorized method of
27  distribution as provided in paragraph (d). The participant may
28  defer receipt of benefits until he or she chooses to make such
29  application, subject to federal requirements.
30         4.  In the event of a participant's death, moneys
31  accumulated by, or on behalf of, the participant, less
                                  16
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  withholding taxes remitted to the Internal Revenue Service,
  2  shall be distributed to the participant's designated
  3  beneficiary or beneficiaries, or to the participant's estate,
  4  as if the participant retired on the date of death, as
  5  provided in paragraph (e). No other death benefits shall be
  6  available for survivors of participants under the Public
  7  Employee Optional Retirement Program, except for such
  8  benefits, or coverage for such benefits, as are separately
  9  afforded by the employer, at the employer's discretion.
10         (d)  Upon receipt by the third-party administrator of a
11  properly executed application for distribution of benefits,
12  the total accumulated benefit shall be payable to the
13  participant, as:
14         1.  A lump-sum distribution to the participant;
15         2.  A lump-sum direct rollover distribution whereby all
16  accrued benefits, plus interest and investment earnings, are
17  paid from the participant's account directly to the custodian
18  of an eligible retirement plan, as defined in s. 402(c)(8)(B)
19  of the Internal Revenue Code, on behalf of the participant; or
20         3.  Periodic distributions, as authorized by the state
21  board.
22         (e)  Survivor benefits shall be payable as:
23         1.  A lump-sum distribution payable to the
24  beneficiaries, or to the deceased participant's estate;
25         2.  An eligible rollover distribution on behalf of the
26  surviving spouse of a deceased participant, whereby all
27  accrued benefits, plus interest and investment earnings, are
28  paid from the deceased participant's account directly to the
29  custodian of an individual retirement account or an individual
30  retirement annuity, as described in s. 402(c)(9) of the
31  Internal Revenue Code, on behalf of the surviving spouse; or
                                  17
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         3.  A partial lump-sum payment whereby a portion of the
  2  accrued benefit is paid to the deceased participant's
  3  surviving spouse or other designated beneficiaries, less
  4  withholding taxes remitted to the Internal Revenue Service,
  5  and the remaining amount is transferred directly to the
  6  custodian of an individual retirement account or an individual
  7  retirement annuity, as described in s. 402(c)(9) of the
  8  Internal Revenue Code, on behalf of the surviving spouse. The
  9  proportions must be specified by the participant or the
10  surviving beneficiary.
11
12  This paragraph does not abrogate other applicable provisions
13  of state or federal law providing for payment of death
14  benefits.
15         (f)  The benefits payable to any person under the
16  Public Employee Optional Retirement Program, and any
17  contributions accumulated under such program, are not subject
18  to assignment, execution, attachment, or any legal process,
19  except for qualified domestic relations orders by a court of
20  competent jurisdiction, income deduction orders as provided in
21  s. 61.1301, and federal income tax levies.
22         (16)  DISABILITY BENEFITS.--For any participant of the
23  optional retirement program who becomes totally and
24  permanently disabled, benefits shall be paid in accordance
25  with s. 121.591 as defined in s. 121.091(4)(b), the
26  participant shall be entitled to receive those moneys that
27  have accrued in his or her participant account.  It is the
28  intent of the Legislature to design a disability benefit for
29  participants of the optional program similar to those
30  disability benefits afforded defined benefit program members.
31  The department is directed to study the potential options of
                                  18
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  such coverage, including self-insurance and commercial
  2  coverage, the alternative methods of administering such
  3  benefits, and the fiscal impacts on the employees and
  4  employers, and to make recommendations to the Legislature by
  5  January 15, 2001.
  6         Section 6.  Subsection (3) of section 121.571, Florida
  7  Statutes, is amended to read:
  8         121.571  Contributions.--Contributions to the Public
  9  Employee Optional Retirement Program shall be made as follows:
10         (3)  CONTRIBUTIONS TO DISABILITY ACCOUNT.--
11         (a)  All contributions made on behalf of a participant
12  pursuant to this subsection shall be transferred by the
13  employer to the third-party administrator for deposit in the
14  Public Employee Disability Trust Fund administered by the
15  Division of Retirement. Such contributions, less any fees or
16  charges authorized by the Legislature to offset the costs of
17  administering the disability component of the optional
18  retirement program, shall be used to provide disability
19  coverage for participants in the optional retirement program.
20         (b)  Disability contributions for Regular Class members
21  of the optional retirement plan are as follows:
22
23  Dates of Contribution                      Employers
24  Rate Changes
25  Effective July 1, 2002:                    0.25% 0.39%
26
27         (c)  Disability contributions for Special Risk Class
28  members of the optional retirement plan are as follows:
29
30  Dates of Contribution                      Employers
31  Rate Changes
                                  19
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  Effective July 1, 2002:                    1.33% 1.25%
  2
  3         (d)  Disability contributions for Special Risk
  4  Administrative Support Class members of the optional
  5  retirement plan are as follows:
  6
  7  Dates of Contribution                      Employers
  8  Rate Changes
  9  Effective July 1, 2002:                    0.45% 0.73%
10
11         (e)  Disability contributions for Elected Officers'
12  Class members of the optional retirement plan are as follows:
13
14  Dates of Contribution                      Employers
15  Rate Changes
16  Effective July 1, 2002:
17    Legislators                              0.41% 0.61%
18    Governor, Lt. Governor,                  0.41% 0.61%
19      Cabinet Officers
20    State Attorneys, Public                  0.41% 0.61%
21      Defenders
22    Justices, Judges                         0.73% 1.45%
23    County Elected Officers                  0.41% 0.86%
24
25         (f)  Disability contributions for Senior Management
26  Service Class members of the optional retirement plan are as
27  follows:
28
29  Dates of Contribution                      Employers
30  Rate Changes
31
                                  20
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  Effective July 1, 2002:                    0.26% 0.50%
  2
  3         Section 7.  Section 121.591, Florida Statutes, is
  4  created to read:
  5         121.591  Benefits payable under the Public Employee
  6  Optional Retirement Program of the Florida Retirement
  7  System.--Benefits may not be paid under this section unless
  8  the member has terminated employment as provided in s.
  9  121.021(39)(a) or is deceased and a proper application has
10  been filed in the manner prescribed by the state board or the
11  department. The state board or the department, as appropriate,
12  may cancel an application for retirement benefits when the
13  member or beneficiary fails to timely provide the information
14  and documents required by this chapter and the rules of the
15  state board and the department. In accordance with their
16  respective responsibilities as provided in this section, the
17  state board and the department shall adopt rules establishing
18  procedures for application for retirement benefits and for the
19  cancellation of such application when the required information
20  or documents are not received.
21         (1)  NORMAL BENEFIT.--Under the optional program:
22         (a)  Benefits, in the form of vested accumulations as
23  described in s. 121.4501(6), shall be payable under this
24  subsection as follows:
25         1.  To the extent vested, benefits shall be payable
26  only to a participant.
27         2.  Benefits shall be paid by the third-party
28  administrator or designated approved providers in accordance
29  with the law, the contracts, and any applicable board rule or
30  policy.
31
                                  21
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         3.  To receive benefits under this subsection, the
  2  participant must be terminated from all employment with all
  3  Florida Retirement System employers, as provided in s.
  4  121.021(39).
  5         (b)  If a participant elects to receive his or her
  6  benefits upon termination of employment, the participant must
  7  submit a written application to the third-party administrator
  8  indicating his or her preferred distribution date and
  9  selecting an authorized method of distribution as provided in
10  paragraph (c). The participant may defer receipt of benefits
11  until he or she chooses to make such application, subject to
12  federal requirements.
13         (c)  Upon receipt by the third-party administrator of a
14  properly executed application for distribution of benefits,
15  the total accumulated benefit shall be payable to the
16  participant as:
17         1.  A lump-sum distribution to the participant;
18         2.  A lump-sum direct rollover distribution whereby all
19  accrued benefits, plus interest and investment earnings, are
20  paid from the participant's account directly to the custodian
21  of an eligible retirement plan, as defined in s. 402(c)(8)(B)
22  of the Internal Revenue Code, as amended, on behalf of the
23  participant; or
24         3.  Periodic distributions, as authorized by the state
25  board.
26         (2)  DISABILITY RETIREMENT BENEFIT.--Benefits provided
27  under this subsection are payable in lieu of the benefits
28  which would otherwise be payable under the provisions of
29  subsection (1).
30         (a)1.  If the participant has no credit under the
31  defined benefit program of the Florida Retirement System or
                                  22
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  such credit has been nullified as provided under s.
  2  121.4501(3)(c), all moneys accumulated in the participant's
  3  optional program account, including vested and nonvested
  4  accumulations as described in s. 121.4501(6), shall be
  5  transferred from such individual account to the Division of
  6  Retirement for deposit into the Public Employee Disability
  7  Trust Fund; or
  8         2.  If the participant is a former member of the
  9  defined benefit program of the Florida Retirement System who
10  elected to retain the retirement credit he or she had earned
11  under that program as provided in s. 121.4501(3)(b), a sum
12  representing the actuarial present value of such credit shall
13  be transferred by the Division of Retirement from the Florida
14  Retirement System Trust Fund to the Public Employee Disability
15  Trust Fund. In addition, all moneys accumulated in the
16  participant's optional program account, including vested and
17  nonvested accumulations as described in s. 121.4501(6), shall
18  be transferred from such individual account to the Division of
19  Retirement for deposit into the Public Employee Disability
20  Trust Fund.
21         (b)1.  A participant of the optional program who
22  becomes totally and permanently disabled, as defined in
23  paragraph (d), after completing 8 years of creditable service,
24  or a participant who becomes totally and permanently disabled
25  in the line of duty regardless of his or her length of
26  service, shall be entitled to a monthly disability benefit as
27  provided in this subsection.
28         2.  For purposes of this subsection, the 8 years of
29  creditable service required to vest for regular disability
30  benefits must be creditable service under the defined benefit
31
                                  23
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  program of the Florida Retirement System or service under the
  2  optional program, subject to the following conditions:
  3         a.  In the case of present value transfers to a
  4  participant's account under s. 121.4501(3)(c), the period of
  5  service under the defined benefit program represented in the
  6  present value amounts transferred shall only be considered
  7  creditable service for purposes of vesting for disability
  8  benefits as long as such funds remain in the participant's
  9  accounts under the optional program.
10         b.  In the case of contributions made to a
11  participant's accounts under s. 121.4501(5), the period of
12  service under the optional program shall only be considered
13  creditable service for purposes of vesting for disability
14  benefits as long as such funds remain in the participant's
15  accounts under the optional program.
16
17  If a participant terminates employment and takes distribution
18  of such funds as provided in subsection (1), all credit for
19  the service represented by such distributed funds is forfeited
20  for purposes of qualifying for disability benefits under this
21  subsection.
22         (c)1.  If the division has received from the employer
23  the required documentation of the participant's termination of
24  employment, the effective retirement date for a participant
25  who applies and is approved for disability retirement shall be
26  established by rule of the division.
27         2.  For a participant who is receiving workers'
28  compensation payments, the effective disability retirement
29  date may not precede the date the participant reaches maximum
30  medical improvement, unless the participant terminates
31  employment prior to reaching maximum medical improvement.
                                  24
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         (d)  A participant shall be considered totally and
  2  permanently disabled if, in the opinion of the division, he or
  3  she is prevented by reason of a medically determinable
  4  physical or mental impairment from rendering useful and
  5  efficient service as an officer or employee.
  6         (e)  The division, before approving payment of any
  7  disability retirement benefit, shall require proof that the
  8  participant is totally and permanently disabled as follows:
  9         1.  Such proof shall include the certification of the
10  participant's total and permanent disability by two licensed
11  physicians in this state and such other evidence of disability
12  as the division may require, including reports from vocational
13  rehabilitation, evaluation, or testing specialists who have
14  evaluated the applicant for employment.
15         2.  It shall be documented that:
16         a.  The participant's medical condition occurred or
17  became symptomatic during the time the participant was
18  employed in an employee/employer relationship with his or her
19  employer.
20         b.  The participant was totally and permanently
21  disabled at the time he or she terminated covered employment.
22         c.  The participant has not been employed with any
23  other employer after such termination.
24         3.  If the application is for in-line-of-duty
25  disability, in addition to the requirements of subparagraph
26  2., it must be documented by competent medical evidence that
27  the disability was caused by a job-related illness or accident
28  which occurred while the participant was in an
29  employee/employer relationship with his or her employer.
30         4.  The unavailability of an employment position that
31  the participant is physically and mentally capable of
                                  25
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  performing shall not be considered as proof of total and
  2  permanent disability.
  3         (f)  A participant whose application for regular
  4  disability has been denied and who has filed an appeal to the
  5  State Retirement Commission under s. 121.23 may elect, if
  6  eligible, to receive disability benefits as provided under
  7  paragraphs (g) and (h) while her or she is awaiting the
  8  decision on appeal, to the extent such benefit payments are
  9  covered by funds deposited in the Public Employee Disability
10  Trust Fund pursuant to subparagraph 1. or 2. of paragraph
11  (2)(a).  In that event:
12         1.  If the regular disability benefits are subsequently
13  approved, disability benefits will continue to be paid to the
14  terminated participant as provided under this subsection.
15         2.  If disability benefits are later denied as a result
16  of the appeal:
17         a.  The remainder of any vested accumulations on
18  deposit in the Public Employee Disability Trust Fund, less the
19  sum of the total amount paid in monthly disability benefits
20  while the appeal was pending and any withholding taxes
21  remitted to the Internal Revenue Service, shall be transferred
22  to the third party administrator for distribution to the
23  terminated participant as provided under subsection (1).
24         b.  The remainder of any nonvested accumulations on
25  deposit in the Public Employee Disability Trust Fund, less the
26  sum of the total amount paid in monthly disability benefits
27  while the appeal was pending and any withholding taxes
28  remitted to the Internal Revenue Service, shall be transferred
29  to the State Board Of Administration and shall be held in the
30  suspense account of the Public Employee Optional Retirement
31
                                  26
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  Program Trust Fund, in accordance with s. 121.4501(6)(a)2. or
  2  (b)2., as appropriate.
  3         (g)  Upon the disability retirement of a participant
  4  under this subsection, the participant shall receive a monthly
  5  benefit that shall begin to accrue on the first day of the
  6  month of disability retirement, as approved by the division,
  7  and shall be payable on the last day of that month and each
  8  month thereafter during his or her lifetime and continued
  9  disability.
10         (h)  The amount of each monthly payment shall be
11  computed in the same manner as that computed for a normal
12  retirement benefit but shall be based on disability option
13  actuarial equivalency tables and the average monthly
14  compensation and creditable service of the participant as of
15  his or her disability retirement date, subject to the
16  following:
17         1.  If the participant's disability occurred in the
18  line of duty, the monthly Option 1 benefit shall be a minimum
19  of:
20         a.  Forty-two percent of the participant's average
21  monthly compensation as of the disability retirement date; or
22         b.  Sixty-five percent of the participant's average
23  monthly compensation as of the disability retirement date for
24  a participant of the special risk class who retires on or
25  after July 1, 2002.
26         2.  If the participant's disability occurred other than
27  in the line of duty, the monthly Option 1 benefit shall be a
28  minimum of 25 percent of the participant's average monthly
29  compensation as of the disability retirement date.
30         (i)  A participant whose initial application for
31  disability retirement has been denied may reapply for
                                  27
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  disability benefits. However, such participant's reapplication
  2  may be considered only if the participant presents new medical
  3  evidence of a medical condition that existed prior to the
  4  participant's termination of employment. The division may
  5  prescribe by rule procedures for reapplication and for review
  6  and approval or disapproval of reapplication.
  7         (j)  Nothing in this subsection shall be construed to
  8  prevent a participant who has been approved for a disability
  9  retirement benefit payable under this subsection from electing
10  to receive, in lieu of the benefit payable under this
11  subsection, the benefit payable to him or her under the
12  provisions of subsection (1), provided such election is made
13  prior to the deposit or cashing of a disability retirement
14  warrant or receipt of such warrant by electronic funds
15  transfer in accordance with the participant's authorization of
16  direct deposit of such funds.
17         (k)  The division may require periodic reexaminations
18  at the expense of the Public Employee Disability Trust Fund.
19  The division may adopt rules establishing procedures for
20  conducting and review of such reexaminations. If the division
21  finds that a participant who is receiving disability benefits
22  is no longer disabled, the division shall direct that the
23  disability benefits be discontinued and no further benefits
24  shall be payable under this subsection. The decision of the
25  division on this question shall be final and binding. Upon
26  termination of the monthly disability benefit:
27         1.  If such participant does not reenter covered
28  employment following recovery from disability and had not
29  satisfied the vesting requirement as of the disability
30  retirement date for any or all of the moneys which had
31  accumulated in his or her participant accounts, the remainder
                                  28
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  of the nonvested accumulation as described under subparagraph
  2  5., if any, shall be held in a suspense account in the Public
  3  Employee Disability Trust Fund.
  4         a.  If the participant returns to covered employment as
  5  an eligible employee as defined in s. 121.4501(2) within 5
  6  years after the date of recovery, the division shall transfer
  7  any such moneys held in the suspense account, plus interest
  8  calculated at an effective annual rate of 6 percent, to the
  9  State Board of Administration for deposit in the participant's
10  individual account under the optional program, as directed by
11  the participant.
12         b.  If the participant fails to return to covered
13  employment within 5 years after recovery, any such moneys held
14  in the suspense account in the Public Employee Disability
15  Trust Fund shall be forfeited.
16         2.  If such participant does not reenter covered
17  employment following recovery from disability but had
18  satisfied vesting requirements as of the disability retirement
19  date for any or all of the moneys which had accumulated in his
20  or her accounts under the optional program, the amount
21  representing the remainder of his or her vested accumulation
22  as described under subparagraph 5., if any, shall be
23  transferred from the Public Employee Disability Trust Fund to
24  the Public Employee Optional Retirement Program Trust Fund and
25  shall be payable as provided in subsection (1).
26         3.  If such participant returns to covered employment
27  following recovery from disability as a participant in the
28  optional program, the amount representing the remainder of his
29  or her nonvested accumulation or the remainder of his or her
30  vested accumulation as described under subparagraph 5., if
31  any, shall be transferred from the Public Employee Disability
                                  29
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  Trust Fund to the third-party administrator for deposit in the
  2  participant's individual investment accounts as directed by
  3  the participant. Vested accumulations shall be accounted for
  4  separately from nonvested accumulations.
  5         4.  If such participant reenters covered employment as
  6  a member of the defined benefit program of the Florida
  7  Retirement System, and is continuously employed for a minimum
  8  of 1 year of creditable service, he or she may claim as
  9  creditable service the months during which he or she was
10  receiving a disability benefit, upon payment of the required
11  contributions as provided in s. 121.091(4)(h)1.d.
12         5.  As used in reference to funds deposited in the
13  Public Employee Disability Trust Fund under paragraph (a):
14         a.  The term "remainder of the nonvested accumulation"
15  means all employer contributions deposited on behalf of a
16  participant who had not met the vesting requirement set forth
17  in s. 121.4501(6)(a)1. as of his or her disability retirement
18  date and any transferred present value amount deposited on
19  behalf of a participant who had not met the vesting
20  requirement set forth in s. 121.4501(6)(b)1. as of his or her
21  disability retirement date, plus interest and earnings
22  thereon, less the total amount of disability benefits received
23  by that participant.
24         b.  The term "remainder of the vested accumulation"
25  means all employer contributions deposited on behalf of any
26  participant who had met the vesting requirement set forth in
27  s. 121.4501(6)(a)1. as of his or her disability retirement
28  date and any transferred present value amount deposited on
29  behalf of any participant who had met the vesting requirement
30  set forth in s. 121.4501(6)(b)1. as of his or her disability
31  retirement date, plus interest and earnings thereon, less the
                                  30
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  total amount of disability benefits received by that
  2  participant.
  3         (l)  Both the participant receiving disability benefits
  4  who reenters employment and the employer employing such
  5  disability retiree shall notify the division immediately upon
  6  reemployment and the division shall terminate such
  7  participant's disability benefits, effective upon the first
  8  day of the month following the month in which notification of
  9  recovery is received. If the participant is reemployed with a
10  Florida Retirement System employer at the time of benefit
11  termination and he or she has received disability retirement
12  benefit and salary payments concurrently prior to notifying
13  the division, he or she may elect within 30 days to:
14         1.  Retain the retirement benefits received prior to
15  termination of disability benefits and begin receiving
16  retirement service credit effective upon the date of
17  termination of benefits; or
18         2.  Repay, within 12 months after his or her decision
19  to receive service credit, the retirement benefits received
20  for each month of reemployment prior to termination of
21  disability benefits and begin receiving retirement service
22  credit effective upon the date of reemployment. Any such
23  unpaid benefits shall have compound interest of 6.5 percent
24  added each June 30.
25
26  A participant may not receive both retirement service credit
27  for employment and retirement benefits for the same month.
28         (m)  If, after recovery from disability and reentry
29  into covered employment, the participant again becomes
30  disabled and is again approved for disability retirement, the
31  Option 1 monthly retirement benefit shall not be less than the
                                  31
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  Option 1 monthly benefit calculated at the time of the
  2  previous disability, plus any cost-of-living increases payable
  3  up to the time the disability benefit was terminated upon his
  4  or her reentry into covered employment.
  5         (n)  A participant shall not be entitled to receive any
  6  disability retirement benefit if the disability is a result
  7  of:
  8         1.  Injury or disease sustained by the participant
  9  while willfully participating in a riot, civil insurrection,
10  or other act of violence or while committing a felony;
11         2.  Injury or disease sustained by the participant
12  after his or her employment has terminated; or
13         3.  Intentional, self-inflicted injury.
14         (o)1.  If a participant is a justice of the Supreme
15  Court, judge of a district court of appeal, circuit judge, or
16  judge of a county court who has served for 6 years or more as
17  an elected constitutional judicial officer, including service
18  as a judicial officer in any court abolished pursuant to Art.
19  V of the State Constitution, and who is retired for disability
20  by order of the Supreme Court upon recommendation of the
21  Judicial Qualifications Commission pursuant to the provisions
22  of Art. V of the State Constitution, the participant's Option
23  1 monthly disability benefit amount as provided in s.
24  121.091(6)(a)1. shall be two-thirds of his or her monthly
25  compensation as of the participant's disability retirement
26  date. Such a participant may alternatively elect to receive an
27  actuarially adjusted disability retirement benefit under any
28  other option as provided in s. 121.091(6)(a), or to receive
29  the normal benefit payable under the optional program as set
30  forth under subsection (1).
31
                                  32
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1         2.  If any justice or judge who is a participant of the
  2  optional program is retired for disability by order of the
  3  Supreme Court upon recommendation of the Judicial
  4  Qualifications Commission pursuant to the provisions of Art. V
  5  of the State Constitution and elects to receive a monthly
  6  disability benefit under the provisions of this paragraph:
  7         a.  Any present value amount which was transferred to
  8  his or her program account and all employer contributions made
  9  to such account on his or her behalf, plus interest and
10  earnings thereon, shall be transferred to and deposited in the
11  Public Employee Disability Trust Fund.
12         b.  The monthly benefits payable under this paragraph
13  for any affected justice or judge retired from the Florida
14  Retirement System pursuant to Art. V of the State Constitution
15  shall be paid from the Public Employee Disability Trust Fund.
16         (3)  DEATH BENEFITS.--Under the optional program:
17         (a)  Survivor benefits shall be payable in accordance
18  with the following terms and conditions:
19         1.  To the extent vested, benefits shall be payable
20  only to a participant's beneficiary or beneficiaries as
21  designated by the participant.
22         2.  Benefits shall be paid by the third-party
23  administrator or designated approved providers in accordance
24  with the law, the contracts, and any applicable board rule or
25  policy.
26         3.  To receive benefits under this subsection, the
27  participant must be deceased.
28         (b)  In the event of a participant's death, all vested
29  accumulations as described in s. 121.4501(6), less withholding
30  taxes remitted to the Internal Revenue Service, shall be
31  distributed, as provided in paragraph (c), to the
                                  33
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1  participant's designated beneficiary or beneficiaries, or to
  2  the participant's estate, as if the participant retired on the
  3  date of death. No other death benefits shall be available for
  4  survivors of participants under the optional program, except
  5  for such benefits, or coverage for such benefits, as are
  6  otherwise provided by law or are separately afforded by the
  7  employer, at the employer's discretion.
  8         (c)  Upon receipt by the third-party administrator of a
  9  properly executed application for distribution of benefits,
10  the total accumulated benefit shall be payable by the
11  third-party administrator to the participant's surviving
12  beneficiary or beneficiaries as:
13         1.  A lump-sum distribution payable to the beneficiary
14  or beneficiaries or to the deceased participant's estate;
15         2.  An eligible rollover distribution on behalf of the
16  surviving spouse of a deceased participant, whereby all
17  accrued benefits, plus interest and investment earnings, are
18  paid from the deceased participant's account directly to the
19  custodian of an individual retirement account or an individual
20  retirement annuity, as described in s. 402(c)(9) of the
21  Internal Revenue Code, on behalf of the surviving spouse; or
22         3.  A partial lump-sum payment whereby a portion of the
23  accrued benefit is paid to the deceased participant's
24  surviving spouse or other designated beneficiaries, less
25  withholding taxes remitted to the Internal Revenue Service,
26  and the remaining amount is transferred directly to the
27  custodian of an individual retirement account or an individual
28  retirement annuity, as described in s. 402(c)(9) of the
29  Internal Revenue Code, on behalf of the surviving spouse. The
30  proportions must be specified by the participant or the
31  surviving beneficiary.
                                  34
CODING: Words stricken are deletions; words underlined are additions.
                                          HB 1947, First Engrossed
  1
  2  This paragraph does not abrogate other applicable provisions
  3  of state or federal law providing for payment of death
  4  benefits.
  5         (4)  LIMITATION ON LEGAL PROCESS.--The benefits payable
  6  to any person under the optional program and any contributions
  7  accumulated under such program are not subject to assignment,
  8  execution, attachment, or any legal process, except for
  9  qualified domestic relations orders by a court of competent
10  jurisdiction, income deduction orders as provided in s.
11  61.1301, and federal income tax levies.
12         Section 8.  The Legislature finds that a proper and
13  legitimate state purpose is served when employees and retirees
14  of the state and of its political subdivisions, and the
15  dependents, survivors, and beneficiaries of such employees and
16  retirees, are extended the basic protections afforded by
17  governmental retirement systems that provide fair and adequate
18  benefits that are managed, administered, and funded in an
19  actuarially sound manner, as required by section 14, Article X
20  of the State Constitution and part VII of chapter 112, Florida
21  Statutes. Therefore, the Legislature determines and declares
22  that this act fulfills an important state interest.
23         Section 9.  This act shall take effect July 1, 2001.
24
25
26
27
28
29
30
31
                                  35
CODING: Words stricken are deletions; words underlined are additions.