House Bill hb0807c1
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Florida House of Representatives - 2002 CS/HB 807
By the Fiscal Responsibility Council and Representative
Fasano
1 A bill to be entitled
2 An act relating to the Florida Retirement
3 System; amending ss. 121.052, 121.055, and
4 121.071, F.S.; making the date for payment of
5 retirement contributions consistent under the
6 Florida Retirement System defined benefit and
7 defined contribution programs; amending s.
8 121.4501, F.S., relating to the Public Employee
9 Optional Retirement Program; updating
10 definitions; establishing dates on which
11 present value calculations are based;
12 conforming election provisions for local
13 government employees to provisions applicable
14 to other employees; providing for the effective
15 date of enrollment for certain employers;
16 providing for the transfer of contributions in
17 certain circumstances; transferring certain
18 provisions relating to payment of benefits to
19 s. 121.591, F.S., as created in the act;
20 amending s. 121.571, F.S., relating to employer
21 contributions to the Public Employee Optional
22 Retirement Program; adjusting rates; making the
23 date for payment of retirement contributions
24 consistent under the Florida Retirement System
25 defined benefit and defined contribution
26 programs; creating s. 121.591, F.S., relating
27 to benefits payable under the Public Employee
28 Optional Retirement Program; providing for
29 payment of the normal benefit upon termination;
30 providing for disability retirement benefits;
31 providing for transfer of certain funds;
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1 specifying eligibility requirements; providing
2 procedure and required documentation; providing
3 for computation of the disability benefit;
4 providing for reapplication; providing for
5 membership; providing an option to cancel;
6 providing for reexamination and other matters
7 relating to recovery from disability; providing
8 nonadmissible causes of disability; providing
9 for disability retirement of justices or
10 judges; providing for payment of death
11 benefits; providing for spousal notification in
12 certain cases; updating death benefit
13 distribution provisions to conform to recent
14 changes in federal law; providing protection of
15 benefits from assignment, execution, etc.;
16 amending s. 110.123, F.S.; revising language
17 with respect to the state group insurance
18 program; revising a definition; deleting
19 language with respect to participation in the
20 plan by retirees; amending s. 110.205, F.S.;
21 granting Senior Management Service benefits to
22 county health department directors and
23 administrators; amending s. 121.35, F.S.;
24 allowing rollovers into the optional retirement
25 programs; expanding the methods of disbursement
26 of benefits; providing a declaration of
27 important state interest; providing an
28 effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
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1 Section 1. Subsection (7) of section 121.052, Florida
2 Statutes, as amended by chapter 2001-262, Laws of Florida, is
3 amended to read:
4 121.052 Membership class of elected officers.--
5 (7) CONTRIBUTIONS.--
6 (a) The following table states the required retirement
7 contribution rates for members of the Elected Officers' Class
8 and their employers in terms of a percentage of the member's
9 gross compensation. A change in a contribution rate is
10 effective with the first salary paid on or after the beginning
11 date of the change. Contributions shall be made or deducted as
12 may be appropriate for each pay period and are in addition to
13 the contributions required for social security and the Retiree
14 Health Insurance Subsidy Trust Fund.
15
16 Dates of Contribution
17 Rate Changes Members Employers
18 Effective July 1, 2001
19 Legislators 0% 15.14%
20 Governor, Lt. Governor, Cabinet
21 Officers 0% 15.14%
22 State Attorneys, Public Defenders 0% 15.14%
23 Justices, Judges 0% 20.61%
24 County Elected Officers 0% 17.61%
25
26 (b) The employer paying the salary of a member of the
27 Elected Officers' Class shall contribute an amount as
28 specified in this subsection which shall constitute the entire
29 employer retirement contribution with respect to such member.
30 The employer shall also withhold one-half of the entire
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1 contribution of the member required for social security
2 coverage.
3 (c) The following table states the required employer
4 contribution on behalf of each member of the Elected Officers'
5 Class in terms of a percentage of the member's gross
6 compensation. Such contribution constitutes the entire health
7 insurance subsidy contribution with respect to the member. A
8 change in the contribution rate is effective with the first
9 salary paid on or after the beginning date of the change. The
10 retiree health insurance subsidy contribution rate is as
11 follows:
12
13 Dates of Contribution Contribution
14 Rate Changes Rate
15
16 October 1, 1987, through December 31, 1988 0.24%
17 January 1, 1989, through December 31, 1993 0.48%
18 January 1, 1994, through December 31, 1994 0.56%
19 January 1, 1995, through June 30, 1998 0.66%
20 July 1, 1998, through June 30, 2001 0.94%
21 Effective July 1, 2001 1.11%
22
23 Such contributions and accompanying payroll data are due and
24 payable no later than the 5th working day of the month
25 immediately following the month during which the payroll
26 period ended and shall be deposited by the administrator in
27 the Retiree Health Insurance Subsidy Trust Fund.
28 Section 2. Subsection (3) of section 121.055, Florida
29 Statutes, as amended by chapter 2001-262, Laws of Florida, is
30 amended to read:
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1 121.055 Senior Management Service Class.--There is
2 hereby established a separate class of membership within the
3 Florida Retirement System to be known as the "Senior
4 Management Service Class," which shall become effective
5 February 1, 1987.
6 (3)(a) The following table states the required
7 retirement contribution rates for members of the Senior
8 Management Service Class and their employers in terms of a
9 percentage of the member's gross compensation. A change in the
10 contribution rate is effective with the first salary paid on
11 or after the beginning date of the change. Contributions
12 shall be made for each pay period and are in addition to the
13 contributions required for social security and the Retiree
14 Health Insurance Subsidy Trust Fund.
15
16 Dates of Contribution
17 Rate Changes Members Employers
18 Effective July 1, 2001 0% 11.73%
19
20 (b) The employer paying the salary of a member of the
21 Senior Management Service Class shall contribute an amount as
22 specified in this section which shall constitute the entire
23 employer retirement contribution with respect to such member.
24 The employer shall also withhold one-half of the entire
25 contribution of the member required for social security
26 coverage.
27 (c) The following table states the required employer
28 contribution on behalf of each member of the Senior Management
29 Service Class in terms of a percentage of the member's gross
30 compensation. Such contribution constitutes the entire health
31 insurance subsidy contribution with respect to the member. A
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1 change in the contribution rate is effective with the first
2 salary paid on or after the beginning date of the change. The
3 retiree health insurance subsidy contribution rate is as
4 follows:
5
6 Dates of Contribution Contribution
7 Rate Changes Rate
8 October 1, 1987, through December 31, 1988 0.24%
9 January 1, 1989, through December 31, 1993 0.48%
10 January 1, 1994, through December 31, 1994 0.56%
11 January 1, 1995, through June 30, 1998 0.66%
12 July 1, 1998, through June 30, 2001 0.94%
13 Effective July 1, 2001 1.11%
14
15 Such contributions and accompanying payroll data are due and
16 payable no later than the 5th working day of the month
17 immediately following the month during which the payroll
18 period ended and shall be deposited by the administrator in
19 the Retiree Health Insurance Subsidy Trust Fund.
20 Section 3. Subsection (5) of section 121.071, Florida
21 Statutes, as amended by chapter 2001-262, Laws of Florida, is
22 amended to read:
23 121.071 Contributions.--Contributions to the system
24 shall be made as follows:
25 (5) Contributions made in accordance with subsections
26 (1), (2), (3), and (4) shall be paid by the employer into the
27 system trust funds in accordance with rules adopted by the
28 administrator pursuant to chapter 120, except as may be
29 otherwise specified herein.
30 (a)1. Effective October 1, 1978, such contributions
31 are due and payable no later than the 25th day of the month
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1 immediately following the month during which the payroll
2 period ended. The department may, by rule, establish a
3 different due date, which shall supersede the date specified
4 herein; however, such due date may not be established earlier
5 than the 20th day of the month immediately following the month
6 during which the payroll period ended.
7 2. Effective July 1, 2002, contributions paid under
8 subsections (1) and (4) and accompanying payroll data are due
9 and payable no later than the 5th working day of the month
10 immediately following the month during which the payroll
11 period ended. Effective January 1, 1984, contributions made in
12 accordance with subsection (3) shall be paid by the employer
13 into the system trust fund in accordance with rules adopted by
14 the administrator pursuant to chapter 120. For any payroll
15 period ending any day of the month before the 16th day of the
16 month, such contributions are due and payable no later than
17 the 20th day of the month; and, for any payroll periods ending
18 any day of the month after the 15th day of the month, such
19 contributions are due and payable no later than the 5th day of
20 the next month.
21 (b) Contributions received in the offices of the
22 department after the prescribed date shall be considered
23 delinquent unless, in the opinion of the department,
24 exceptional circumstances beyond an employer's control
25 prevented remittance by the prescribed due date
26 notwithstanding such employer's good faith efforts to effect
27 delivery; and, with respect to retirement contributions due
28 under subsections (1) and (4), each employer shall be assessed
29 a delinquent fee of 1 percent of the contributions due for
30 each calendar month or part thereof that the contributions are
31 delinquent. Such a waiver of the delinquency fee by the
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1 department may be granted an employer only one time each
2 fiscal year. Delinquent social security contributions shall be
3 assessed a delinquent fee as authorized by s. 650.05(4). The
4 delinquent fee assessable for an employer's first delinquency
5 after July 1, 1984, shall be as specified in s. 650.05(4),
6 and, beginning with the second delinquency in any fiscal year
7 by the employer subsequent to July 1, 1984, all subsequent
8 delinquency fees shall be assessed against the employer at
9 twice the applicable percentage rate specified in s.
10 650.05(4).
11 Section 4. Subsection (2), paragraph (c) of subsection
12 (3), paragraphs (a), (b), and (c) of subsection (4), and
13 subsections (7) and (16) of section 121.4501, Florida
14 Statutes, as amended by chapter 2001-235, Laws of Florida, are
15 amended to read:
16 121.4501 Public Employee Optional Retirement
17 Program.--
18 (2) DEFINITIONS.--As used in this part section, the
19 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. The term
24 includes a bundled provider that offers participants a range
25 of individually allocated or unallocated investment products
26 and may offer a range of administrative and customer services,
27 which may include accounting and administration of individual
28 participant benefits and contributions; individual participant
29 recordkeeping; asset purchase, control, and safekeeping;
30 direct execution of the participant's instructions as to asset
31 and contribution allocation; calculation of daily net asset
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1 values; direct access to participant account information;
2 periodic reporting to participants, at least quarterly, on
3 account balances and transactions; guidance, advice, and
4 allocation services directly relating to its own investment
5 options or products, but only if the bundled provider complies
6 with the standard of care of s. 404(a)(1)(A-B) of the Employee
7 Retirement Income Security Act of 1974 (ERISA) and if
8 providing such guidance, advice, or allocation services does
9 not constitute a prohibited transaction under s. 4975(c)(1) of
10 the Internal Revenue Code or s. 406 of ERISA, notwithstanding
11 that such prohibited transaction provisions do not apply to
12 the optional retirement program; a broad array of distribution
13 options; 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 (b) "Average monthly compensation" means one-twelfth
18 of average final compensation as defined in s. 121.021(24).
19 (c) "Covered employment" means employment in a
20 regularly established position as defined in s. 121.021(52).
21 (d)(b) "Department" means the Department of Management
22 Services.
23 (e)(c) "Division" means the Division of Retirement
24 within the Department of Management Services.
25 (f)(d) "Eligible employee" means an officer or
26 employee, as defined in s. 121.021(11), who:
27 1. Is a member of, or is eligible for membership in,
28 the Florida Retirement System;
29 2. Participates in, or is eligible to participate in,
30 the Senior Management Service Optional Annuity Program as
31 established under s. 121.055(6); or
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1 3. Is eligible to participate in, but does not
2 participate in, the State University System Optional
3 Retirement Program established under s. 121.35 or the State
4 Community College System Optional Retirement Program
5 established under s. 121.051(2)(c).
6
7 The term does not include any renewed member of the Florida
8 Retirement System, any member participating in the Deferred
9 Retirement Option Program established under s. 121.091(13), or
10 any employee participating in an optional retirement program
11 established under s. 121.051(2)(c) or s. 121.35.
12 (g)(e) "Employer" means an employer, as defined in s.
13 121.021(10), of an eligible employee.
14 (h)(f) "Participant" means an eligible employee who
15 elects to participate in the Public Employee Optional
16 Retirement Program and enrolls in such optional program as
17 provided in subsection (4).
18 (i)(g) "Public Employee Optional Retirement Program,"
19 "optional program," or "optional retirement program" means the
20 alternative defined contribution retirement program
21 established under this section.
22 (j)(h) "State board" or "board" means the State Board
23 of Administration.
24 (k)(i) "Trustees" means Trustees of the State Board of
25 Administration.
26 (l)(j) "Vested" or "vesting" means the guarantee that
27 a participant is eligible to receive a retirement benefit upon
28 completion of the required years of service under the Public
29 Employee Optional Retirement Program.
30 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT.--
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1 (c)1. Notwithstanding paragraph (b), each eligible
2 employee who elects to participate in the Public Employee
3 Optional Retirement Program and establishes one or more
4 individual participant accounts under the optional program may
5 elect to transfer to the optional program a sum representing
6 the present value of the employee's accumulated benefit
7 obligation under the defined benefit retirement program of the
8 Florida Retirement System. Upon such transfer, all service
9 credit previously earned under the defined benefit program of
10 the Florida Retirement System shall be nullified for purposes
11 of entitlement to a future benefit under the defined benefit
12 program of the Florida Retirement System. A participant is
13 precluded from transferring the accumulated benefit obligation
14 balance from the defined benefit program upon the expiration
15 of the period afforded to enroll in the optional program.
16 2. For purposes of this subsection, the present value
17 of the member's accumulated benefit obligation is based upon
18 the member's estimated creditable service and estimated
19 average final compensation under the defined benefit program,
20 subject to recomputation under subparagraph 3. For state
21 employees enrolling under subparagraph (4)(a)1., initial
22 estimates will be based upon creditable service and average
23 final compensation as of midnight on June 30, 2002; for
24 district school board employees enrolling under subparagraph
25 (4)(b)1., initial estimates will be based upon creditable
26 service and average final compensation as of midnight on
27 September 30, 2002; and for local government employees
28 enrolling under subparagraph (4)(c)1., initial estimates will
29 be based upon creditable service and average final
30 compensation as of midnight on December 31, 2002. The dates
31 respectively specified above shall be construed as the
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1 "estimate date" for these employees of the day prior to the
2 opening of the election window for the employee. The actuarial
3 present value of the employee's accumulated benefit obligation
4 shall be based on the following:
5 a. The discount rate and other relevant actuarial
6 assumptions used to value the Florida Retirement System Trust
7 Fund at the time the amount to be transferred is determined,
8 consistent with the factors provided in sub-subparagraphs b.
9 and c.
10 b. A benefit commencement age, based on the member's
11 estimated creditable service as of the estimate date midnight
12 on May 31, 2002. The benefit commencement age shall be the
13 younger of the following, but shall not be younger than the
14 member's age as of the estimate date midnight on May 31, 2002:
15 (I) Age 62; or
16 (II) The age the member would attain if the member
17 completed 30 years of service with an employer, assuming the
18 member worked continuously from the estimate date May 31,
19 2002, and disregarding any vesting requirement that would
20 otherwise apply under the defined benefit program of the
21 Florida Retirement System.
22 c. For members of the Special Risk Class and for
23 members of the Special Risk Administrative Support Class
24 entitled to retain special risk normal retirement date, the
25 benefit commencement age shall be the younger of the
26 following, but shall not be younger than the member's age as
27 of the estimate date midnight on May 31, 2002:
28 (I) Age 55; or
29 (II) The age the member would attain if the member
30 completed 25 years of service with an employer, assuming the
31 member worked continuously from the estimate date May 31,
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1 2002, and disregarding any vesting requirement that would
2 otherwise apply under the defined benefit program of the
3 Florida Retirement System.
4 d. The calculation shall disregard vesting
5 requirements and early retirement reduction factors that would
6 otherwise apply under the defined benefit retirement program.
7 3. For each participant who elects to transfer moneys
8 from the defined benefit program to his or her account in the
9 optional program, the division shall recompute the amount
10 transferred under subparagraph 2. not later than 60 days after
11 the actual transfer of funds based upon the participant's
12 actual creditable service and actual final average
13 compensation as of the initial date of participation in the
14 optional program. If the recomputed amount differs from the
15 amount transferred under subparagraph 2. by $10 or more, the
16 division shall:
17 a. Transfer, or cause to be transferred, from the
18 Florida Retirement System Trust Fund to the participant's
19 account in the optional program the excess, if any, of the
20 recomputed amount over the previously transferred amount
21 together with interest from the initial date of transfer to
22 the date of transfer under this subparagraph, based upon 8
23 percent effective annual interest, compounded annually.
24 b. Transfer, or cause to be transferred, from the
25 participant's account to the Florida Retirement System Trust
26 Fund the excess, if any, of the previously transferred amount
27 over the recomputed amount, together with interest from the
28 initial date of transfer to the date of transfer under this
29 subparagraph, based upon 6 percent effective annual interest,
30 compounded annually, pro rata based on the participant's
31 allocation plan.
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1 4. As directed by the participant, the board shall
2 transfer or cause to be transferred the appropriate amounts to
3 the designated accounts. The board shall establish transfer
4 procedures by rule, but the actual transfer shall not be later
5 than 30 days after the effective date of the member's
6 participation in the optional program. Transfers are not
7 commissionable or subject to other fees and may be in the form
8 of securities or cash as determined by the state board. Such
9 securities shall be valued as of the date of receipt in the
10 participant's account.
11 5. If the board or the division receives notification
12 from the United States Internal Revenue Service that this
13 paragraph or any portion of this paragraph will cause the
14 retirement system, or a portion thereof, to be disqualified
15 for tax purposes under the Internal Revenue Code, then the
16 portion that will cause the disqualification does not apply.
17 Upon such notice, the state board and the division shall
18 notify the presiding officers of the Legislature.
19 (4) PARTICIPATION; ENROLLMENT.--
20 (a)1. With respect to an eligible employee who is
21 employed in a regularly established position on June 1, 2002,
22 by a state employer:
23 a. Any such employee may elect to participate in the
24 Public Employee Optional Retirement Program in lieu of
25 retaining his or her membership in the defined benefit program
26 of the Florida Retirement System. The election must be made in
27 writing or by electronic means and must be filed with the
28 department and the personnel officer of the employer within 90
29 days after June 1, 2002, or, in the case of an active employee
30 who is on a leave of absence on June 1, 2002, within 90 days
31 after the conclusion of the leave of absence. This election is
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1 irrevocable, except as provided in paragraph (e). Upon making
2 such election, the employee shall be enrolled as a participant
3 of the Public Employee Optional Retirement Program, the
4 employee's membership in the Florida Retirement System shall
5 be governed by the provisions of this part, and the employee's
6 membership in the defined benefit program of the Florida
7 Retirement System shall terminate. The employee's enrollment
8 in the Public Employee Optional Retirement Program shall be
9 effective the first day of the month for which a full month's
10 employer contribution is made to the optional program.
11 b. Any such employee who fails to elect to participate
12 in the Public Employee Optional Retirement Program within the
13 prescribed 90 days is deemed to have elected to retain
14 membership in the defined benefit program of the Florida
15 Retirement System, and the employee's option to elect to
16 participate in the optional program is forfeited.
17 2. With respect to employees who become eligible to
18 participate in the Public Employee Optional Retirement Program
19 by reason of employment in a regularly established position
20 with a state employer commencing after June 1, 2002:
21 a. Any such employee shall, by default, be enrolled in
22 the defined benefit retirement program of the Florida
23 Retirement System at the commencement of employment, and may,
24 within 180 days after employment commences, elect to
25 participate in the Public Employee Optional Retirement
26 Program. The employee's election must be made in writing or by
27 electronic means and must be filed with the personnel officer
28 of the employer. The election to participate in the optional
29 program is irrevocable, except as provided in paragraph (e).
30 b. If the employee files such election before the
31 initial payroll is submitted for the employee, enrollment in
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1 the Public Employee Optional Retirement Program shall be
2 effective on the first day of employment.
3 b.c. If the employee files such election within 180
4 days after employment commences, but after the initial payroll
5 is submitted for the employee, enrollment in the optional
6 program shall be effective on the first day of employment the
7 month for which a full month's employer contribution is made
8 to the optional program. The employer retirement contributions
9 paid through the month of the employee plan change shall be
10 transferred to the optional program and effective the first
11 day of the next month the employer shall pay the applicable
12 contributions based on the employee membership class in the
13 optional program.
14 c.d. Any such employee who fails to elect to
15 participate in the Public Employee Optional Retirement Program
16 within the prescribed 180 days is deemed to have elected to
17 retain membership in the defined benefit program of the
18 Florida Retirement System, and the employee's option to elect
19 to participate in the optional program is forfeited.
20 3. For purposes of this paragraph, "state employer"
21 means any agency, board, branch, commission, community
22 college, department, institution, institution of higher
23 education, or water management district of the state, which
24 participates in the Florida Retirement System for the benefit
25 of certain employees.
26 (b)1. With respect to an eligible employee who is
27 employed in a regularly established position on September 1,
28 2002, by a district school board employer:
29 a. Any such employee may elect to participate in the
30 Public Employee Optional Retirement Program in lieu of
31 retaining his or her membership in the defined benefit program
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1 of the Florida Retirement System. The election must be made in
2 writing or by electronic means and must be filed with the
3 department and the personnel officer of the employer within 90
4 days after September 1, 2002, or, in the case of an active
5 employee who is on a leave of absence on September 1, 2002,
6 within 90 days after the conclusion of the leave of absence.
7 This election is irrevocable, except as provided in paragraph
8 (e). Upon making such election, the employee shall be enrolled
9 as a participant of the Public Employee Optional Retirement
10 Program, the employee's membership in the Florida Retirement
11 System shall be governed by the provisions of this part, and
12 the employee's membership in the defined benefit program of
13 the Florida Retirement System shall terminate. The employee's
14 enrollment in the Public Employee Optional Retirement Program
15 shall be effective the first day of the month for which a full
16 month's employer contribution is made to the optional program.
17 b. Any such employee who fails to elect to participate
18 in the Public Employee Optional Retirement Program within the
19 prescribed 90 days is deemed to have elected to retain
20 membership in the defined benefit program of the Florida
21 Retirement System, and the employee's option to elect to
22 participate in the optional program is forfeited.
23 2. With respect to employees who become eligible to
24 participate in the Public Employee Optional Retirement Program
25 by reason of employment in a regularly established position
26 with a district school board employer commencing after
27 September 1, 2002:
28 a. Any such employee shall, by default, be enrolled in
29 the defined benefit retirement program of the Florida
30 Retirement System at the commencement of employment, and may,
31 within 180 days after employment commences, elect to
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1 participate in the Public Employee Optional Retirement
2 Program. The employee's election must be made in writing or by
3 electronic means and must be filed with the personnel officer
4 of the employer. The election to participate in the optional
5 program is irrevocable, except as provided in paragraph (e).
6 b. If the employee files such election before the
7 initial payroll is submitted for the employee, enrollment in
8 the Public Employee Optional Retirement Program shall be
9 effective on the first day of employment.
10 b.c. If the employee files such election within 180
11 days after employment commences, but after the initial payroll
12 is submitted for the employee, enrollment in the optional
13 program shall be effective on the first day of employment the
14 month for which a full month's employer contribution is made
15 to the optional program. The employer retirement contributions
16 paid through the month of the employee plan change shall be
17 transferred to the optional program and effective the first
18 day of the next month the employer shall pay the applicable
19 contributions based on the employee membership class in the
20 optional program.
21 c.d. Any such employee who fails to elect to
22 participate in the Public Employee Optional Retirement Program
23 within the prescribed 180 days is deemed to have elected to
24 retain membership in the defined benefit program of the
25 Florida Retirement System, and the employee's option to elect
26 to participate in the optional program is forfeited.
27 3. For purposes of this paragraph, "district school
28 board employer" means any district school board that
29 participates in the Florida Retirement System for the benefit
30 of certain employees, or a charter school or charter technical
31
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1 career center that participates in the Florida Retirement
2 System as provided in s. 121.051(2)(d).
3 (c)1. With respect to an eligible employee who is
4 employed in a regularly established position on December 1,
5 2002, by a local 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 December 1, 2002, or, in the case of an active
13 employee who is on a leave of absence on December 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.
31
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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 local employer commencing after December 1, 2002:
5 a. Any such employee shall, by default, be enrolled in
6 the defined benefit retirement program of the Florida
7 Retirement System at the commencement of employment, and may,
8 within 180 days after employment commences, elect to
9 participate in the Public Employee Optional Retirement
10 Program. The employee's election must be made in writing or by
11 electronic means and must be filed with the personnel officer
12 of the employer. The election to participate in the optional
13 program is irrevocable, except as provided in paragraph (e).
14 b. If the employee files such election before the
15 initial payroll is submitted for the employee, enrollment in
16 the Public Employee Optional Retirement Program shall be
17 effective on the first day of employment.
18 b.c. If the employee files such election within 180
19 days after employment commences, but after the initial payroll
20 is submitted for the employee, enrollment in the optional
21 program shall be effective on the first day of employment the
22 month for which a full month's employer contribution is made
23 to the optional program. The employer retirement contributions
24 paid through the month of the employee plan change shall be
25 transferred to the optional program and effective the first
26 day of the next month the employer shall pay the applicable
27 contributions based on the employee membership class in the
28 optional program.
29 c.d. Any such employee who fails to elect to
30 participate in the Public Employee Optional Retirement Program
31 within the prescribed 180 days is deemed to have elected to
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1 retain membership in the defined benefit program of the
2 Florida Retirement System, and the employee's option to elect
3 to participate in the optional program is forfeited.
4 3. For purposes of this paragraph, "local employer"
5 means any employer not included in paragraph (a) or paragraph
6 (b).
7 (7) BENEFITS.--Under the Public Employee Optional
8 Retirement Program:
9 (a) Benefits shall be provided in accordance with s.
10 401(a) of the Internal Revenue Code.
11 (b) Benefits shall accrue in individual accounts that
12 are participant-directed, portable, and funded by employer
13 contributions and earnings thereon.
14 (c) Benefits shall be payable in accordance with the
15 provisions of s. 121.591. following terms and conditions:
16 1. To the extent vested, benefits shall be payable
17 only to a participant, or to his or her beneficiaries as
18 designated by the participant.
19 2. Benefits shall be paid by the third-party
20 administrator or designated approved providers in accordance
21 with the law, the contracts, and any applicable board rule or
22 policy.
23 3. To begin receiving the benefits, the participant
24 must be terminated from all employment with all Florida
25 Retirement System employers, as provided in s. 121.021(39), or
26 the participant must be deceased. If a participant elects to
27 receive his or her benefits upon termination of employment,
28 the participant must submit a written application to the
29 third-party administrator indicating his or her preferred
30 distribution date and selecting an authorized method of
31 distribution as provided in paragraph (d). The participant may
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1 defer receipt of benefits until he or she chooses to make such
2 application, subject to federal requirements.
3 4. In the event of a participant's death, moneys
4 accumulated by, or on behalf of, the participant, less
5 withholding taxes remitted to the Internal Revenue Service,
6 shall be distributed to the participant's designated
7 beneficiary or beneficiaries, or to the participant's estate,
8 as if the participant retired on the date of death, as
9 provided in paragraph (e). No other death benefits shall be
10 available for survivors of participants under the Public
11 Employee Optional Retirement Program, except for such
12 benefits, or coverage for such benefits, as are separately
13 afforded by the employer, at the employer's discretion.
14 (d) Upon receipt by the third-party administrator of a
15 properly executed application for distribution of benefits,
16 the total accumulated benefit shall be payable to the
17 participant, as:
18 1. A lump-sum distribution to the participant;
19 2. A lump-sum direct rollover distribution whereby all
20 accrued benefits, plus interest and investment earnings, are
21 paid from the participant's account directly to the custodian
22 of an eligible retirement plan, as defined in s. 402(c)(8)(B)
23 of the Internal Revenue Code, on behalf of the participant; or
24 3. Periodic distributions, as authorized by the state
25 board.
26 (e) Survivor benefits shall be payable as:
27 1. A lump-sum distribution payable to the
28 beneficiaries, or to the deceased participant's estate;
29 2. An eligible rollover distribution on behalf of the
30 surviving spouse of a deceased participant, whereby all
31 accrued benefits, plus interest and investment earnings, are
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1 paid from the deceased participant's account directly to the
2 custodian of an individual retirement account or an individual
3 retirement annuity, as described in s. 402(c)(9) of the
4 Internal Revenue Code, on behalf of the surviving spouse; or
5 3. A partial lump-sum payment whereby a portion of the
6 accrued benefit is paid to the deceased participant's
7 surviving spouse or other designated beneficiaries, less
8 withholding taxes remitted to the Internal Revenue Service,
9 and the remaining amount is transferred directly to the
10 custodian of an individual retirement account or an individual
11 retirement annuity, as described in s. 402(c)(9) of the
12 Internal Revenue Code, on behalf of the surviving spouse. The
13 proportions must be specified by the participant or the
14 surviving beneficiary.
15
16 This paragraph does not abrogate other applicable provisions
17 of state or federal law providing for payment of death
18 benefits.
19 (f) The benefits payable to any person under the
20 Public Employee Optional Retirement Program, and any
21 contributions accumulated under such program, are not subject
22 to assignment, execution, attachment, or any legal process,
23 except for qualified domestic relations orders by a court of
24 competent jurisdiction, income deduction orders as provided in
25 s. 61.1301, and federal income tax levies.
26 (16) DISABILITY BENEFITS.--For any participant of the
27 optional retirement program who becomes totally and
28 permanently disabled, benefits shall be paid in accordance
29 with the provisions of s. 121.591 as defined in s.
30 121.091(4)(b), the participant shall be entitled to receive
31 those moneys that have accrued in his or her participant
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1 account. It is the intent of the Legislature to design a
2 disability benefit for participants of the optional program
3 similar to those disability benefits afforded defined benefit
4 program members. The department is directed to study the
5 potential options of such coverage, including self-insurance
6 and commercial coverage, the alternative methods of
7 administering such benefits, and the fiscal impacts on the
8 employees and employers, and to make recommendations to the
9 Legislature by January 15, 2001.
10 Section 5. Subsections (3) and (7) of section 121.571,
11 Florida Statutes, are amended to read:
12 121.571 Contributions.--Contributions to the Public
13 Employee Optional Retirement Program shall be made as follows:
14 (3) CONTRIBUTIONS TO DISABILITY ACCOUNT.--
15 (a) All contributions made on behalf of a participant
16 pursuant to this subsection shall be transferred by the
17 employer to the third-party administrator for deposit in the
18 disability account of the Florida Retirement System Public
19 Employee Disability Trust Fund administered by the Division of
20 Retirement. Such contributions, less any fees or charges
21 authorized by the Legislature to offset the costs of
22 administering the disability component of the optional
23 retirement program, shall be separately accounted for and
24 shall be used to provide disability coverage for participants
25 in the optional retirement program.
26 (b) Disability contributions for Regular Class members
27 of the optional retirement plan are as follows:
28
29 Dates of Contribution Employers
30 Rate Changes
31 Effective July 1, 2002: 0.25% 0.39%
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1
2 (c) Disability contributions for Special Risk Class
3 members of the optional retirement plan are as follows:
4
5 Dates of Contribution Employers
6 Rate Changes
7 Effective July 1, 2002: 1.33% 1.25%
8
9 (d) Disability contributions for Special Risk
10 Administrative Support Class members of the optional
11 retirement plan are as follows:
12
13 Dates of Contribution Employers
14 Rate Changes
15 Effective July 1, 2002: 0.45% 0.73%
16
17 (e) Disability contributions for Elected Officers'
18 Class members of the optional retirement plan are as follows:
19
20 Dates of Contribution Employers
21 Rate Changes
22 Effective July 1, 2002:
23 Legislators 0.41% 0.61%
24 Governor, Lt. Governor, 0.41% 0.61%
25 Cabinet Officers
26 State Attorneys, Public 0.41% 0.61%
27 Defenders
28 Justices, Judges 0.73% 1.45%
29 County Elected Officers 0.41% 0.86%
30
31
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1 (f) Disability contributions for Senior Management
2 Service Class members of the optional retirement plan are as
3 follows:
4
5 Dates of Contribution Employers
6 Rate Changes
7 Effective July 1, 2002: 0.26% 0.50%
8
9 (7) PAYMENT AND DISTRIBUTION OF
10 CONTRIBUTIONS.--Contributions made pursuant to this section
11 and accompanying payroll data are due and payable shall be
12 paid by the employer to the third-party administrator by
13 electronic funds transfer or electronic data transfer no later
14 than the 5th working day of the month immediately following
15 the month during which the payroll period ended. The board and
16 the third-party administrator shall ensure that the
17 contributions are distributed to the appropriate trust funds
18 or participant accounts in a timely manner.
19 Section 6. Section 121.591, Florida Statutes, is
20 created to read:
21 121.591 Benefits payable under the Public Employee
22 Optional Retirement Program of the Florida Retirement
23 System.--Benefits may not be paid under this section unless
24 the member has terminated employment as provided in s.
25 121.021(39)(a) or is deceased, and a proper application has
26 been filed in the manner prescribed by the state board or the
27 department. The state board or department, as appropriate, may
28 cancel an application for retirement benefits when the member
29 or beneficiary fails to timely provide the information and
30 documents required by this chapter and the rules of the state
31 board and department. In accordance with their respective
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1 responsibilities as provided herein, the State Board of
2 Administration and the Department of Management Services shall
3 adopt rules establishing procedures for application for
4 retirement benefits and for the cancellation of such
5 application when the required information or documents are not
6 received.
7 (1) NORMAL BENEFITS.--Under the Public Employee
8 Optional Retirement Program:
9 (a) Benefits in the form of vested accumulations as
10 described in s. 121.4501(6) shall be payable under this
11 subsection in accordance with the following terms and
12 conditions:
13 1. To the extent vested, benefits shall be payable
14 only to a 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 receive benefits under this subsection, the
20 participant must be terminated from all employment with all
21 Florida Retirement System employers, as provided in s.
22 121.021(39).
23 (b) If a participant elects to receive his or her
24 benefits upon termination of employment, the participant must
25 submit a written application to the third-party administrator
26 indicating his or her preferred distribution date and
27 selecting an authorized method of distribution as provided in
28 paragraph (c). The participant may defer receipt of benefits
29 until he or she chooses to make such application, subject to
30 federal requirements.
31
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1 (c) Upon receipt by the third-party administrator of a
2 properly executed application for distribution of benefits,
3 the total accumulated benefit shall be payable to the
4 participant, as:
5 1. A lump-sum distribution to the participant;
6 2. A lump-sum direct rollover distribution whereby all
7 accrued benefits, plus interest and investment earnings, are
8 paid from the participant's account directly to the custodian
9 of an eligible retirement plan, as defined in s. 402(c)(8)(B)
10 of the Internal Revenue Code, on behalf of the participant; or
11 3. Periodic distributions, as authorized by the state
12 board.
13 (2) DISABILITY RETIREMENT BENEFITS.--Benefits provided
14 under this subsection are payable in lieu of the benefits
15 which would otherwise be payable under the provisions of
16 subsection (1). Such benefits shall be funded entirely from
17 employer contributions made under s. 121.571, transferred
18 participant funds accumulated pursuant to paragraph (a), and
19 interest and earnings thereon. Pursuant thereto:
20 (a) Transfer of funds.--To qualify to receive monthly
21 disability benefits under this subsection:
22 1. All moneys accumulated in the participant's Public
23 Employee Optional Retirement Program accounts, including
24 vested and nonvested accumulations as described in s.
25 121.4501(6), shall be transferred from such individual
26 accounts to the Division of Retirement for deposit in the
27 disability account of the Florida Retirement System Trust
28 Fund. Such moneys shall be separately accounted for. Earnings
29 shall be credited on an annual basis for amounts held in the
30 disability accounts of the Florida Retirement System Trust
31
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1 Fund based on actual earnings of the Florida Retirement System
2 Trust Fund.
3 2. If the participant has retained retirement credit
4 he or she had earned under the defined benefit program of the
5 Florida Retirement System as provided in s. 121.4501(3)(b), a
6 sum representing the actuarial present value of such credit
7 within the Florida Retirement System Trust Fund shall be
8 reassigned by the Division of Retirement from the defined
9 benefit program to the disability program as implemented under
10 this subsection and shall be deposited in the disability
11 account of the Florida Retirement System Trust Fund. Such
12 moneys shall be separately accounted for.
13 (b) Disability retirement; entitlement.--
14 1. A participant of the Public Employee Optional
15 Retirement Program who becomes totally and permanently
16 disabled, as defined in s. 121.091(4)(b), after completing 8
17 years of creditable service, or a participant who becomes
18 totally and permanently disabled in the line of duty
19 regardless of his or her length of service, shall be entitled
20 to a monthly disability benefit as provided herein.
21 2. In order for service to apply toward the 8 years of
22 service required to vest for regular disability benefits, or
23 toward the creditable service used in calculating a
24 service-based benefit as provided for under paragraph (g), the
25 service must be creditable service as described below:
26 a. The participant's period of service under the
27 Public Employee Optional Retirement Program will be considered
28 creditable service, except as provided in subparagraph d.
29 b. If the participant has elected to retain credit for
30 his or her service under the defined benefit program of the
31
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1 Florida Retirement System as provided under s. 121.4501(3)(b),
2 all such service will be considered creditable service.
3 c. If the participant has elected to transfer to his
4 or her participant accounts a sum representing the present
5 value of his or her retirement credit under the defined
6 benefit program as provided under s. 121.4501(3)(c), the
7 period of service under the defined benefit program
8 represented in the present value amounts transferred will be
9 considered creditable service for purposes of vesting for
10 disability benefits, except as provided in subparagraph d.
11 d. Whenever a participant has terminated employment
12 and has taken distribution of his or her funds as provided in
13 subsection (1), all creditable service represented by such
14 distributed funds is forfeited for purposes of this
15 subsection.
16 (c) Disability retirement effective date.--The
17 effective retirement date for a participant who applies and is
18 approved for disability retirement shall be established as
19 provided under s. 121.091(4)(a)2. and 3.
20 (d) Total and permanent disability.--A participant
21 shall be considered totally and permanently disabled if, in
22 the opinion of the division, he or she is prevented, by reason
23 of a medically determinable physical or mental impairment,
24 from rendering useful and efficient service as an officer or
25 employee.
26 (e) Proof of disability.--The division, before
27 approving payment of any disability retirement benefit, shall
28 require proof that the participant is totally and permanently
29 disabled in the same manner as provided for members of the
30 defined benefit program of the Florida Retirement System under
31 s. 121.091(4)(c).
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1 (f) Disability retirement benefit.--Upon the
2 disability retirement of a participant under this subsection,
3 the participant shall receive a monthly benefit that shall
4 begin to accrue on the first day of the month of disability
5 retirement, as approved by the division, and shall be payable
6 on the last day of that month and each month thereafter during
7 his or her lifetime and continued disability. All disability
8 benefits payable to such member shall be paid out of the
9 disability account of the Florida Retirement System Trust Fund
10 established under this subsection.
11 (g) Computation of disability retirement benefit.--The
12 amount of each monthly payment shall be calculated in the same
13 manner as provided for members of the defined benefit program
14 of the Florida Retirement System under s. 121.091(4)(f). For
15 such purpose, creditable service under both the defined
16 benefit program and the Public Employee Optional Retirement
17 Program of the Florida Retirement System shall be applicable
18 as provided under paragraph (b).
19 (h) Reapplication.--A participant whose initial
20 application for disability retirement has been denied may
21 reapply for disability benefits in the same manner, and under
22 the same conditions, as provided for members of the defined
23 benefit program of the Florida Retirement System under s.
24 121.091(4)(g).
25 (i) Membership.--Upon approval of an application for
26 disability benefits under this subsection, the applicant shall
27 be transferred to the defined benefit program of the Florida
28 Retirement System, effective upon his or her disability
29 retirement effective date.
30 (j) Option to cancel.--Any participant whose
31 application for disability benefits is approved may cancel his
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1 or her application for disability benefits, provided that the
2 cancellation request is received by the division before a
3 disability retirement warrant has been deposited, cashed, or
4 received by direct deposit. Upon such cancellation:
5 1. The participant's transfer to the defined benefit
6 program under paragraph (i) shall be nullified;
7 2. The participant shall be retroactively reinstated
8 in the Public Employee Optional Retirement Program without
9 hiatus;
10 3. All funds transferred to the Florida Retirement
11 System Trust Fund under paragraph (a) shall be returned to the
12 participant accounts from which such funds were drawn; and
13 4. The participant may elect to receive the benefit
14 payable under the provisions of subsection (1) in lieu of
15 disability benefits as provided under this subsection.
16 (k) Recovery from disability.--
17 1. The division may require periodic reexaminations at
18 the expense of the disability program account of the Florida
19 Retirement System Trust Fund. Except as otherwise provided in
20 subparagraph 2., the requirements, procedures, and
21 restrictions relating to the conduct and review of such
22 reexaminations, discontinuation or termination of benefits,
23 reentry into employment, disability retirement after reentry
24 into covered employment, and all other matters relating to
25 recovery from disability shall be the same as are set forth
26 under s. 121.091(4)(h).
27 2. Upon recovery from disability, any recipient of
28 disability retirement benefits under this subsection shall be
29 a compulsory member of the Public Employee Optional Retirement
30 Program of the Florida Retirement System. The net difference
31 between the recipient's original account balance transferred
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1 to the Florida Retirement System Trust Fund, including
2 earnings, under paragraph (a) and total disability benefits
3 paid to such recipient, if any, shall be determined as
4 provided in sub-subparagraph a.
5 a. An amount equal to the total benefits paid shall be
6 subtracted from that portion of the transferred account
7 balance consisting of vested accumulations as described under
8 s. 121.4501(6), if any, and an amount equal to the remainder
9 of benefit amounts paid, if any, shall then be subtracted from
10 any remaining portion consisting of nonvested accumulations as
11 described under s. 121.4501(6).
12 b. Amounts subtracted under sub-subparagraph a. shall
13 be retained within the disability account of the Florida
14 Retirement System Trust Fund. Any remaining account balance
15 shall be transferred to the third-party administrator for
16 disposition as provided under sub-subparagraph c. or
17 sub-subparagraph d., as appropriate.
18 c. If the recipient returns to covered employment,
19 transferred amounts shall be deposited in individual accounts
20 under the Public Employee Optional Retirement Program, as
21 directed by the participant. Vested and nonvested amounts
22 shall be separately accounted for as provided in s.
23 121.4501(6).
24 d. If the recipient fails to return to covered
25 employment upon recovery from disability:
26 (I) Any remaining vested amount shall be deposited in
27 individual accounts under the Public Employee Optional
28 Retirement Program, as directed by the participant, and shall
29 be payable as provided in subsection (1).
30
31
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1 (II) Any remaining nonvested amount shall be held in a
2 suspense account and shall be forfeitable after 5 years as
3 provided in s. 121.4501(6).
4 3. If present value was reassigned from the defined
5 benefit program to the disability program of the Florida
6 Retirement System as provided under subparagraph (a)2., the
7 full present value amount shall be returned to the defined
8 benefit account within the Florida Retirement System Trust
9 Fund and the affected individual's associated retirement
10 credit under the defined benefit program shall be reinstated
11 in full. Any benefit based upon such credit shall be
12 calculated as provided in s. 121.091(4)(h)1.
13 (l) Nonadmissible causes of disability.--A participant
14 shall not be entitled to receive a disability retirement
15 benefit if the disability results from any injury or disease
16 sustained or inflicted as described in s. 121.091(4)(i).
17 (m) Disability retirement of justice or judge by order
18 of Supreme Court.--
19 1. If a participant is a justice of the Supreme Court,
20 judge of a district court of appeal, circuit judge, or judge
21 of a county court who has served for 6 years or more as an
22 elected constitutional judicial officer, including service as
23 a judicial officer in any court abolished pursuant to Art. V
24 of the State Constitution, and who is retired for disability
25 by order of the Supreme Court upon recommendation of the
26 Judicial Qualifications Commission pursuant to the provisions
27 of Art. V of the State Constitution, the participant's Option
28 1 monthly disability benefit amount as provided in s.
29 121.091(6)(a)1. shall be two-thirds of his or her monthly
30 compensation as of the participant's disability retirement
31 date. Such a participant may alternatively elect to receive
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1 an actuarially adjusted disability retirement benefit under
2 any other option as provided in s. 121.091(6)(a), or to
3 receive the normal benefit payable under the Public Employee
4 Optional Retirement Program as set forth in subsection (1).
5 2. If any justice or judge who is a participant of the
6 Public Employee Optional Retirement Program of the Florida
7 Retirement System is retired for disability by order of the
8 Supreme Court upon recommendation of the Judicial
9 Qualifications Commission pursuant to the provisions of Art. V
10 of the State Constitution and elects to receive a monthly
11 disability benefit under the provisions of this paragraph,
12 then:
13 a. Any present value amount which was transferred to
14 his or her program account and all employer contributions made
15 to such account on his or her behalf, plus interest and
16 earnings thereon, shall be transferred to and deposited in the
17 disability account of the Florida Retirement System Trust
18 Fund; and
19 b. The monthly benefits payable under this paragraph
20 for any affected justice or judge retired from the Florida
21 Retirement System pursuant to Art. V of the State Constitution
22 shall be paid from the disability account of the Florida
23 Retirement System Trust Fund.
24 (n) Upon the death of a disabled retiree or
25 beneficiary thereof who is receiving monthly benefits under
26 this subsection, the monthly benefits shall be paid through
27 the last day of the month of death and shall terminate, or be
28 adjusted, if applicable, as of that date in accordance with
29 the optional form of benefit selected at the time of
30 retirement. The deceased disabled retiree's beneficiary shall
31 also receive the amount of the participant's remaining account
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1 balance, if any, in the Florida Retirement System Trust Fund.
2 The Department of Management Services is hereby authorized to
3 promulgate such rules as may be needed to implement the
4 provisions of this paragraph.
5 (3) DEATH BENEFITS.--Under the Public Employee
6 Optional Retirement Program:
7 (a) Survivor benefits shall be payable in accordance
8 with the following terms and conditions:
9 1. To the extent vested, benefits shall be payable
10 only to a participant's beneficiary or beneficiaries as
11 designated by the participant. If a participant designates a
12 primary beneficiary other than the participant's spouse, the
13 participant's spouse shall be notified of the designation.
14 This requirement shall not apply to the designation of one or
15 more contingent beneficiaries to receive any benefits
16 remaining upon the death of the primary beneficiary or
17 beneficiaries.
18 2. Benefits shall be paid by the third-party
19 administrator or designated approved providers in accordance
20 with the law, the contracts, and any applicable board rule or
21 policy.
22 3. To receive benefits under this subsection, the
23 participant must be deceased.
24 (b) In the event of a participant's death, all vested
25 accumulations as described in s. 121.4501(6), less withholding
26 taxes remitted to the Internal Revenue Service, shall be
27 distributed, as provided in paragraph (c), to the
28 participant's designated beneficiary or beneficiaries, or to
29 the participant's estate, as if the participant retired on the
30 date of death. No other death benefits shall be available for
31 survivors of participants under the Public Employee Optional
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1 Retirement Program, except for such benefits, or coverage for
2 such benefits, as are otherwise provided by law or are
3 separately afforded by the employer, at the employer's
4 discretion.
5 (c) Upon receipt by the third-party administrator of a
6 properly executed application for distribution of benefits,
7 the total accumulated benefit shall be payable by the
8 third-party administrator to the participant's surviving
9 beneficiary or beneficiaries, as:
10 1. A lump-sum distribution payable to the beneficiary
11 or beneficiaries, or to the deceased participant's estate;
12 2. An eligible rollover distribution on behalf of the
13 surviving spouse of a deceased participant, whereby all
14 accrued benefits, plus interest and investment earnings, are
15 paid from the deceased participant's account directly to the
16 custodian of an eligible retirement plan, as described in s.
17 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
18 surviving spouse; or
19 3. A partial lump-sum payment whereby a portion of the
20 accrued benefit is paid to the deceased participant's
21 surviving spouse or other designated beneficiaries, less
22 withholding taxes remitted to the Internal Revenue Service,
23 and the remaining amount is transferred directly to the
24 custodian of an eligible retirement plan, as described in s.
25 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
26 surviving spouse. The proportions must be specified by the
27 participant or the surviving beneficiary.
28
29 This paragraph does not abrogate other applicable provisions
30 of state or federal law providing for payment of death
31 benefits.
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1 (4) LIMITATION ON LEGAL PROCESS.--The benefits payable
2 to any person under the Public Employee Optional Retirement
3 Program, and any contributions accumulated under such program,
4 are not subject to assignment, execution, attachment, or any
5 legal process, except for qualified domestic relations orders
6 by a court of competent jurisdiction, income deduction orders
7 as provided in s. 61.1301, and federal income tax levies.
8 Section 7. Paragraph (g) of subsection (2), paragraph
9 (g) of subsection (3), and paragraph (h) of subsection (4) of
10 section 110.123, Florida Statutes, are amended to read:
11 110.123 State group insurance program.--
12 (2) DEFINITIONS.--As used in this section, the term:
13 (g) "Retired state officer or employee" or "retiree"
14 means any state officer or state employee who retires under a
15 state retirement system or a state optional annuity or
16 retirement program or is placed on disability retirement, and
17 who was insured under the state group insurance program at the
18 time of retirement, and who begins receiving retirement
19 benefits immediately after retirement from state office or
20 employment. In addition to these requirements, any state
21 officer or state employee who retires under the Public
22 Employee Optional Retirement Program established under part II
23 of chapter 121, will be considered a "retired state officer or
24 employee" or "retiree" as used in this section if:
25 1. He or she meets the age and service requirements to
26 qualify for normal retirement as set forth in s. 121.021(29);
27 or
28 2. He or she has attained the age specified by the
29 Internal Revenue Code section 72(t)(2)(A)(i) and has 6 years
30 of creditable service.
31 (3) STATE GROUP INSURANCE PROGRAM.--
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1 (g) Participation by individuals in the program shall
2 be available to all state officers, full-time state employees,
3 and part-time state employees; and such participation in the
4 program or any plan thereof shall be voluntary. Participation
5 in the program shall also be available to retired state
6 officers and employees, as defined in subsection (2)(g), who
7 elect at the time of retirement to continue coverage under the
8 program, but they may elect to continue all or only part of
9 the coverage they had at the time of retirement. A surviving
10 spouse may elect to continue coverage only under the state
11 group health insurance plan or a health maintenance
12 organization plan.
13 (4) PAYMENT OF PREMIUMS; CONTRIBUTION BY STATE;
14 LIMITATION ON ACTIONS TO PAY AND COLLECT PREMIUMS.--
15 (h) State employees may participate in the state group
16 health insurance plan at the time of receiving their state
17 retirement benefits.
18 Section 8. The Legislature finds that a proper and
19 legitimate state purpose is served when employees and retirees
20 of the state and of its political subdivisions, and the
21 dependents, survivors, and beneficiaries of such employees and
22 retirees, are extended the basic protections afforded by
23 governmental retirement systems that provide fair and adequate
24 benefits that are managed, administered, and funded in an
25 actuarially sound manner, as required by s. 14, Art. X of the
26 State Constitution and part VII of chapter 112, Florida
27 Statutes. Therefore, the Legislature hereby determines and
28 declares that this act fulfills an important state interest.
29 Section 9. Notwithstanding any provision to the
30 contrary and the authority of the department, the Department
31 of Management Services may contract with a private sector
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1 company selected and approved by the department for services
2 to administer the disability benefit program. Not later than
3 March 1, 2003, the department may provide to the Legislature
4 for its approval an alternative method to administer and fund
5 disability benefits for participants in the Public Employee
6 Optional Retirement Program and the Florida Retirement System,
7 including through commercial insurance coverage.
8 Section 10. It is the intent of the Legislature that
9 the disability retirement program for participants of the
10 Public Employee Optional Retirement Program as created herein
11 must meet all applicable requirements of federal law for a
12 qualified plan. The Department of Management Services shall
13 seek a private letter ruling from the Internal Revenue Service
14 on the disability retirement program for participants of the
15 Public Employee Optional Retirement Program. Consistent with
16 the private letter ruling, the Department of Management
17 Services shall adopt any necessary rules required to maintain
18 the qualified status of the disability retirement program and
19 the Florida Retirement System defined benefit plan.
20 Section 11. Paragraphs (j) and (q) of subsection (2)
21 of section 110.205, Florida Statutes, are amended to read:
22 110.205 Career service; exemptions.--
23 (2) EXEMPT POSITIONS.--The exempt positions that are
24 not covered by this part include the following:
25 (j) The appointed secretaries, assistant secretaries,
26 deputy secretaries, and deputy assistant secretaries of all
27 departments; the executive directors, assistant executive
28 directors, deputy executive directors, and deputy assistant
29 executive directors of all departments; and the directors of
30 all divisions and those positions determined by the department
31 to have managerial responsibilities comparable to such
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1 positions, which positions include, but are not limited to,
2 program directors, assistant program directors, district
3 administrators, deputy district administrators, the Director
4 of Central Operations Services of the Department of Children
5 and Family Services, and the State Transportation Planner,
6 State Highway Engineer, State Public Transportation
7 Administrator, district secretaries, district directors of
8 planning and programming, production, and operations, and the
9 managers of the offices specified in s. 20.23(3)(d)2., of the
10 Department of Transportation, and the county health department
11 directors and county health department administrators of the
12 Department of Health. Unless otherwise fixed by law, the
13 department shall set the salary and benefits of these
14 positions in accordance with the rules of the Senior
15 Management Service.
16 (q) The staff directors, assistant staff directors,
17 district program managers, district program coordinators,
18 district subdistrict administrators, district administrative
19 services directors, district attorneys, and the Deputy
20 Director of Central Operations Services of the Department of
21 Children and Family Services and the county health department
22 directors and county health department administrators of the
23 Department of Health. Unless otherwise fixed by law, the
24 department shall establish the salary range and benefits for
25 these positions in accordance with the rules of the Selected
26 Exempt Service.
27 Section 12. Section 121.35, Florida Statutes, is
28 amended to read:
29 121.35 Optional retirement program for the State
30 University System.--
31
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1 (1) OPTIONAL RETIREMENT PROGRAM ESTABLISHED.--The
2 Department of Management Services shall establish an optional
3 retirement program under which contracts providing retirement
4 and death benefits may be purchased for eligible members of
5 the State University System who elect to participate in the
6 program. The benefits to be provided for or on behalf of
7 participants in such optional retirement program shall be
8 provided through individual contracts or individual
9 certificates issued for group annuity or other contracts,
10 which may be fixed, variable, or a combination thereof, in
11 accordance with s. 403(b) of the Internal Revenue Code. Any
12 individual contract or certificate shall state the annuity
13 plan on its face page, and shall include, but not be limited
14 to, a statement of ownership, the contract benefits, annuity
15 income options, limitations, expense charges, and surrender
16 charges, if any. The state shall contribute, as provided in
17 this section, toward the purchase of such optional benefits.
18 (2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL
19 PROGRAM.--
20 (a) Participation in the optional retirement program
21 provided by this section shall be limited to persons who are
22 otherwise eligible for membership in the Florida Retirement
23 System; who are employed or appointed for no less than one
24 academic year; and who are employed in one of the following
25 State University System positions:
26 1. Positions classified as instructional and research
27 faculty which are exempt from the career service under the
28 provisions of s. 110.205(2)(d).
29 2. Positions classified as administrative and
30 professional which are exempt from the career service under
31 the provisions of s. 110.205(2)(d).
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1 3. The Chancellor and the university presidents.
2 (b) For purposes of this section, both the appointees
3 and employees are referred to as "employees," and the
4 "employer" of an appointee or employee is the individual
5 institution within the State University System or the Board of
6 Education Regents, whichever is appropriate with respect to
7 the particular employee or appointee.
8 (c) For purposes of this section, the Department of
9 Management Services is referred to as the "department."
10 (d) For purposes of this section, the authority
11 granted to the Board of Education Regents may be exercised by
12 the board or by the Chancellor of the Division of Colleges and
13 Universities State University System.
14 (3) ELECTION OF OPTIONAL PROGRAM.--
15 (a) Any eligible employee who is employed on or before
16 March 1, 1984, may elect to participate in the optional
17 retirement program in lieu of participation in the Florida
18 Retirement System. Such election shall be made in writing and
19 filed with the division and the personnel officer of the
20 employer on or before June 1, 1984. Upon such election,
21 participation in the optional program will take effect July 1,
22 1984, and election to so participate will terminate the
23 membership of the employee in the Florida Retirement System.
24 Any eligible employee who is employed on or before March 1,
25 1984, and who fails to make an election to participate in the
26 optional program by June 1, 1984, shall be deemed to have
27 elected to retain membership in the Florida Retirement System.
28 (b)1. Any employee who becomes eligible to participate
29 in the optional retirement program by reason of initial
30 employment commencing after March 1, 1984, but before January
31 1, 1993, may, within 90 days after the date of commencement of
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1 employment, elect to participate in the optional program. Such
2 election shall be made in writing and filed with the personnel
3 officer of the employer. The eligible employees described in
4 this subparagraph shall be enrolled in the Florida Retirement
5 System at the commencement of employment, with the exception
6 of those employees who file an election with the personnel
7 officer of the employer prior to the submission of the initial
8 payroll for the employee. For such employees, participation
9 will be effective on the first day of employment or on July 1,
10 1984, whichever is later. If an eligible employee, as
11 described in this subparagraph, files an election to
12 participate in the optional program within 90 days after the
13 commencement of employment, but after the submission by the
14 employer of the initial payroll for the employee, the
15 employee's participation in the optional program will not be
16 effective until the first day of the month for which a full
17 month's employer contribution may be made, or until July 1,
18 1984, whichever is later. Any eligible employee who does not
19 within 90 days after commencement of such employment elect to
20 participate in the optional program shall be deemed to have
21 elected to retain membership in the Florida Retirement System.
22 2. Any employee who after March 1, 1984, but before
23 January 1, 1993, becomes eligible to participate in the
24 optional program by reason of a change in status due to the
25 subsequent designation of the employee's position as one of
26 those specified in paragraph (2)(a) or due to the employee's
27 appointment, promotion, transfer, or reclassification to a
28 position specified in paragraph (2)(a) may elect to
29 participate in the optional program. Such employee shall be
30 notified by the employer of the change in his or her
31 eligibility status. Such employee may, within 90 days after
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1 the date of such notification, file with the personnel officer
2 of the employer an election in writing to participate in the
3 optional program in lieu of participation in the Florida
4 Retirement System. Upon such election, participation in the
5 optional program will be effective on the first day of the
6 month for which a full month's employer contribution may be
7 made or on July 1, 1984, whichever is later. Election to so
8 participate shall terminate the membership of the employee in
9 the Florida Retirement System. Any eligible employee who does
10 not within 90 days after notification of his or her
11 eligibility to participate in the optional program elect to
12 participate in the program shall be deemed to have elected to
13 retain membership in the Florida Retirement System.
14 (c) Any employee who becomes eligible to participate
15 in the optional retirement program on or after January 1,
16 1993, shall be a compulsory participant of the program unless
17 such employee elects membership in the Florida Retirement
18 System. Such election shall be made in writing and filed with
19 the personnel officer of the employer. Any eligible employee
20 who fails to make such election within the prescribed time
21 period shall be deemed to have elected to participate in the
22 optional retirement program.
23 1. Any employee whose optional retirement program
24 eligibility results from initial employment shall be enrolled
25 in the program at the commencement of employment. If, within
26 90 days after commencement of employment, the employee elects
27 membership in the Florida Retirement System, such membership
28 shall be effective retroactive to the date of commencement of
29 employment.
30 2. Any employee whose optional retirement program
31 eligibility results from a change in status due to the
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1 subsequent designation of the employee's position as one of
2 those specified in paragraph (2)(a) or due to the employee's
3 appointment, promotion, transfer, or reclassification to a
4 position specified in paragraph (2)(a) shall be enrolled in
5 the optional retirement program upon such change in status and
6 shall be notified by the employer of such action. If, within
7 90 days after the date of such notification, the employee
8 elects to retain membership in the Florida Retirement System,
9 such continuation of membership shall be retroactive to the
10 date of the change in status.
11 3. Notwithstanding the provisions of this paragraph,
12 effective July 1, 1997, any employee who is eligible to
13 participate in the Optional Retirement Program and who fails
14 to execute a an annuity contract with one of the approved
15 companies and to notify the department in writing as provided
16 in subsection (4) within 90 days of the date of eligibility
17 shall be deemed to have elected membership in the Florida
18 Retirement System, except as provided in s. 121.051(1)(a).
19 This provision shall also apply to any employee who terminates
20 employment in an eligible position before executing the
21 required annuity contract and notifying the department. Such
22 membership shall be retroactive to the date of eligibility,
23 and all appropriate contributions shall be transferred to the
24 Florida Retirement System Trust Fund and the Health Insurance
25 Subsidy Trust Fund.
26 (d) Participants shall be fully and immediately vested
27 in the optional retirement program only upon execution of a an
28 annuity contract.
29 (e) The election by an eligible employee to
30 participate in the optional retirement program shall be
31 irrevocable for so long as the employee continues to meet the
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1 eligibility requirements specified in subsection (2), except
2 as provided in paragraph (h). In the event that an employee
3 participates in the optional retirement program for 90 days or
4 more and is subsequently employed in an administrative or
5 professional position which has been determined by the
6 department, under subparagraph (2)(a)2., to be not otherwise
7 eligible for participation in the optional retirement program,
8 the employee shall continue participation in the optional
9 program so long as the employee meets the other eligibility
10 requirements for the program, except as provided in paragraph
11 (h).
12 (f) If an employee becomes ineligible to continue
13 participation in the optional retirement program under
14 subsection (2), the employee shall thereafter participate in
15 the Florida Retirement System if he or she is otherwise
16 eligible.
17 (g) An eligible employee who is a member of the
18 Florida Retirement System at the time of election to
19 participate in the optional retirement program shall retain
20 all retirement service credit earned under the Florida
21 Retirement System, at the rate earned. No additional service
22 credit in the Florida Retirement System shall be earned while
23 the employee participates in the optional program, nor shall
24 the employee be eligible for disability retirement under the
25 Florida Retirement System.
26 (h) A participant in the optional retirement program
27 may not participate in more than one state-administered
28 retirement system, plan, or class simultaneously. Except as
29 provided in s. 121.052(6)(d), a participant who is or becomes
30 dually employed in two or more positions covered by the
31 Florida Retirement System, one of which is eligible for the
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1 optional program and one of which is not, may remain a member
2 of the optional program and contributions shall be paid as
3 required only on the salary earned in the position eligible
4 for the optional program during such period of dual
5 employment; or, within 90 days after becoming dually employed,
6 he or she may elect membership in the Regular Class of the
7 Florida Retirement System in lieu of the optional program and
8 contributions shall be paid as required on the total salary
9 received for all employment. At retirement, the average final
10 compensation used to calculate any benefits for which the
11 member becomes eligible under the Florida Retirement System
12 shall be based on all salary reported for both positions
13 during such period of dual employment. When such member
14 ceases to be dually employed, he or she may, within 90 days,
15 elect to remain in the Florida Retirement System class for
16 which he or she is eligible or to again become a participant
17 in the optional retirement program. Failure to elect
18 membership in the optional program within 90 days shall result
19 in compulsory membership in the Florida Retirement System,
20 except that a member filling a faculty position under a
21 faculty practice plan at the University of Florida or the
22 Medical Center at the University of South Florida shall again
23 participate in the optional retirement program as required in
24 s. 121.051(1)(a).
25 (4) CONTRIBUTIONS.--
26 (a) Through June 30, 2001, each employer shall
27 contribute on behalf of each participant in the optional
28 retirement program an amount equal to the normal cost portion
29 of the employer retirement contribution which would be
30 required if the participant were a regular member of the
31 Florida Retirement System defined benefit program, plus the
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1 portion of the contribution rate required in s. 112.363(8)
2 that would otherwise be assigned to the Retiree Health
3 Insurance Subsidy Trust Fund. Effective July 1, 2001, each
4 employer shall contribute on behalf of each participant in the
5 optional program an amount equal to 10.43 percent of the
6 participant's gross monthly compensation. The department shall
7 deduct an amount approved by the Legislature to provide for
8 the administration of this program. The payment of the
9 contributions to the optional program which is required by
10 this paragraph for each participant shall be made by the
11 employer to the department, which shall forward the
12 contributions to the designated company or companies
13 contracting for payment of benefits for the participant under
14 the program. However, such contributions paid on behalf of an
15 employee described in paragraph (3)(c) shall not be forwarded
16 to a company and shall not begin to accrue interest until the
17 employee has executed a an annuity contract and notified the
18 department.
19 (b) Each employer shall contribute on behalf of each
20 participant in the optional retirement program an amount equal
21 to the unfunded actuarial accrued liability portion of the
22 employer contribution which would be required for members of
23 the Florida Retirement System. This contribution shall be
24 paid to the department for transfer to the Florida Retirement
25 System Trust Fund.
26 (c) An Optional Retirement Program Trust Fund shall be
27 established in the State Treasury and administered by the
28 department to make payments to the provider companies on
29 behalf of the optional retirement program participants, and to
30 transfer the unfunded liability portion of the state optional
31
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1 retirement program contributions to the Florida Retirement
2 System Trust Fund.
3 (d) Contributions required for social security by each
4 employer and each participant, in the amount required for
5 social security coverage as now or hereafter may be provided
6 by the federal Social Security Act, shall be maintained for
7 each participant in the optional retirement program and shall
8 be in addition to the retirement contributions specified in
9 this subsection.
10 (e) Each participant in the optional retirement
11 program who has executed a an annuity contract may contribute
12 by way of salary reduction or deduction a percentage amount of
13 the participant's gross compensation not to exceed the
14 percentage amount contributed by the employer to the optional
15 program, but in no case may such contribution exceed federal
16 limitations. Payment of the participant's contributions shall
17 be made by the financial officer of the employer to the
18 division which shall forward the contributions to the
19 designated company or companies contracting for payment of
20 benefits for the participant under the program. A participant
21 may not make, through salary reduction, any voluntary employee
22 contributions to any other plan under s. 403(b) of the
23 Internal Revenue Code, with the exception of a custodial
24 account under s. 403(b)(7) of the Internal Revenue Code, until
25 he or she has made an employee contribution to his or her
26 optional program equal to the employer contribution. A
27 participant is responsible for monitoring his or her
28 individual tax-deferred income to ensure he or she does not
29 exceed the maximum deferral amounts permitted under the
30 Internal Revenue Code.
31
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1 (f) The Optional Retirement Program Trust Fund may
2 accept for deposit into participant contracts contributions in
3 the form of rollovers or direct trustee-to-trustee transfers
4 by or on behalf of participants, reasonably determined by the
5 department to be eligible for rollover or transfer to the
6 optional retirement program pursuant to the Internal Revenue
7 Code, if such contributions are made in accordance with rules
8 as may be adopted by the department. Such contributions shall
9 be accounted for in accordance with any applicable Internal
10 Revenue Code requirements and rules of the department.
11 (5) BENEFITS.--
12 (a) Benefits shall be payable under the optional
13 retirement program only to vested participants in the program,
14 or their beneficiaries as designated by the participant in the
15 contract with a provider company, and such benefits shall be
16 paid only by the designated company in accordance with s.
17 403(b) of the Internal Revenue Code and in accordance with the
18 terms of the annuity contract or contracts applicable to the
19 participant. Benefits shall accrue in individual accounts that
20 are participant-directed, portable, and funded by employer
21 contributions and earnings thereon. The participant must be
22 terminated from all employment with all Florida Retirement
23 System employers, as provided in s. 121.021(39), to begin
24 receiving the employer-funded benefit. Benefits funded by
25 employer contributions shall be payable in accordance with the
26 following terms and conditions only as a lifetime annuity to
27 the participant, his or her beneficiary, or his or her estate,
28 except for:
29 1. Benefits shall be payable only to a participant, or
30 to his or her beneficiaries, or his or her estate, as
31
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1 designated by the participant; A lump-sum payment to the
2 beneficiary upon the death of the participant; or
3 2. Benefits shall be paid by the provider company or
4 companies in accordance with the law, the provisions of the
5 contract, and any applicable board rule or policy; or A
6 cash-out of a de minimis account upon the request of a former
7 participant who has been terminated for a minimum of 6 months
8 from the employment that entitled him or her to optional
9 retirement program participation. A de minimis account is an
10 account with a provider company containing employer
11 contributions and accumulated earnings of not more than $5,000
12 made under the provisions of this chapter. Such cash-out must
13 be a complete liquidation of the account balance with that
14 company and is subject to the provisions of the Internal
15 Revenue Code.
16 3. In the event of a participant's death, moneys
17 accumulated by, or on behalf of, the participant, less
18 withholding taxes remitted to the Internal Revenue Service, if
19 any, shall be distributed to the participant's designated
20 beneficiary or beneficiaries, or to the participant's estate,
21 as if the participant retired on the date of death, as
22 provided in paragraph (c). No other death benefits shall be
23 available for survivors of participants under the optional
24 retirement program, except for such benefits, or coverage for
25 such benefits, as are separately afforded by the employer, at
26 the employer's discretion.
27 (b) Upon receipt by the provider company of a properly
28 executed application for distribution of benefits, the total
29 accumulated benefit shall be payable to the participant, as:
30 1. A lump-sum distribution to the participant;
31
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1 2. A lump-sum direct rollover distribution whereby all
2 accrued benefits, plus interest and investment earnings, are
3 paid from the participant's account directly to an eligible
4 retirement plan, as defined in s. 402(c)(8)(B) of the Internal
5 Revenue Code, on behalf of the participant;
6 3. Periodic distributions;
7 4. A partial lump-sum payment whereby a portion of the
8 accrued benefit is paid to the participant and the remaining
9 amount is transferred to an eligible retirement plan, as
10 defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
11 behalf of the participant; or
12 5. Such other distribution options provided for in the
13 participant's optional retirement program contract.
14 (c) Survivor benefits shall be payable as:
15 1. A lump-sum distribution payable to the
16 beneficiaries, or to the deceased participant's estate;
17 2. An eligible rollover distribution on behalf of the
18 surviving spouse of a deceased participant, whereby all
19 accrued benefits, plus interest and investment earnings, are
20 paid from the deceased participant's account directly to an
21 eligible retirement plan, as described in s. 402(c)(8)(B) of
22 the Internal Revenue Code, on behalf of the surviving spouse;
23 3. Such other distribution options provided for in the
24 participant's optional retirement program contract; or
25 4. A partial lump-sum payment whereby a portion of the
26 accrued benefit is paid to the deceased participant's
27 surviving spouse or other designated beneficiaries, less
28 withholding taxes remitted to the Internal Revenue Service, if
29 any, and the remaining amount is transferred directly to an
30 eligible retirement plan, as described in s. 402(c)(8)(B) of
31 the Internal Revenue Code, on behalf of the surviving spouse.
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1 The proportions must be specified by the participant or the
2 surviving beneficiary.
3
4 This paragraph does not abrogate other applicable provisions
5 of state or federal law providing payment of death benefits.
6 (d)(b) The benefits payable to any person under the
7 optional retirement program, and any contribution accumulated
8 under such program, shall not be subject to assignment,
9 execution, or attachment or to any legal process whatsoever.
10 (e)(c) A participant who chooses to receive his or her
11 benefits upon termination of employment shall have
12 responsibility to notify the provider company of the date on
13 which he or she wishes benefits the annuity funded by employer
14 contributions to begin. Benefits may be deferred until such
15 time as the participant chooses to make such application.
16 (f)(d) Benefits funded by the participant's personal
17 contributions may be paid out at any time and in any form
18 within the limits provided in the contract between the
19 participant and his or her provider company. The participant
20 shall notify the provider company regarding the date and
21 provisions under which he or she wants to receive the
22 employee-funded portion of the plan.
23 (6) ADMINISTRATION OF PROGRAM.--
24 (a) The optional retirement program authorized by this
25 section shall be administered by the department. The
26 department shall adopt rules establishing the responsibilities
27 of the Board of Education Regents and institutions in the
28 State University System in administering the optional
29 retirement program. The Board of Education Regents shall, no
30 more than 90 days after July 1, 1983, submit to the department
31 its recommendations for the annuity contracts to be offered by
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1 the companies chosen by the department. The recommendations
2 of the board shall include the following:
3 1. The nature and extent of the rights and benefits in
4 relation to the required contributions; and
5 2. The suitability of the rights and benefits to the
6 needs of the participants and the interests of the
7 institutions in the recruitment and retention of eligible
8 employees.
9 (b) After receiving and considering the
10 recommendations of the Board of Education Regents, the
11 department shall designate no more than four companies from
12 which annuity contracts may be purchased under the program and
13 shall approve the form and content of the optional retirement
14 program contracts. Upon application by a qualified Florida
15 domestic company, the department shall give reasonable notice
16 to all other such companies that it intends to designate one
17 of such companies as a fifth company from which annuity
18 contracts may be purchased pursuant to this section and that
19 they may apply for such designation prior to the deadline
20 established by said notice. At least 60 days after giving such
21 notice and upon receipt of the recommendation of the Board of
22 Education Regents, the department shall so designate one of
23 such companies as the fifth company from which such contracts
24 may be purchased.
25 (c) Effective July 1, 1997, the State Board of
26 Administration shall review and make recommendations to the
27 department on the acceptability of all investment products
28 proposed by provider companies of the optional retirement
29 program before they are offered through annuity contracts to
30 the participants and may advise the department of any changes
31 necessary to ensure that the optional retirement program
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1 offers an acceptable mix of investment products. The
2 department shall make the final determination as to whether an
3 investment product will be approved for the program.
4 (d) The provisions of each contract applicable to a
5 participant in the optional retirement program shall be
6 contained in a written program description which shall include
7 a report of pertinent financial and actuarial information on
8 the solvency and actuarial soundness of the program and the
9 benefits applicable to the participant. Such description
10 shall be furnished by the companies to each participant in the
11 program and to the department upon commencement of
12 participation in the program and annually thereafter.
13 (e) The department shall ensure that each participant
14 in the optional retirement program is provided an accounting
15 of the total contribution and the annual contribution made by
16 and on behalf of such participant.
17 Section 13. This act shall take effect July 1, 2002.
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CODING: Words stricken are deletions; words underlined are additions.