Senate Bill sb1460

    Florida Senate - 2003                                  SB 1460

    By Senator Lawson





    6-1002-03

  1                      A bill to be entitled

  2         An act relating to retirement; amending s.

  3         121.091, F.S.; providing for indexing

  4         compensation, as used for calculating benefits

  5         for terminated vested members of the Florida

  6         Retirement System, by 3 percent a year;

  7         providing an effective date.

  8

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

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11         Section 1.  Paragraph (b) of subsection (5) of section

12  121.091, Florida Statutes, is amended to read:

13         121.091  Benefits payable under the system.--Benefits

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

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

16  begun participation in the Deferred Retirement Option Program

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

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

19  department may cancel an application for retirement benefits

20  when the member or beneficiary fails to timely provide the

21  information and documents required by this chapter and the

22  department's rules. The department shall adopt rules

23  establishing procedures for application for retirement

24  benefits and for the cancellation of such application when the

25  required information or documents are not received.

26         (5)  TERMINATION BENEFITS.--A member whose employment

27  is terminated prior to retirement retains membership rights to

28  previously earned member-noncontributory service credit, and

29  to member-contributory service credit, if the member leaves

30  the member contributions on deposit in his or her retirement

31  account. If a terminated member receives a refund of member

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    Florida Senate - 2003                                  SB 1460
    6-1002-03




  1  contributions, such member may reinstate membership rights to

  2  the previously earned service credit represented by the refund

  3  by completing 1 year of creditable service and repaying the

  4  refunded member contributions, plus interest.

  5         (b)  A member whose employment is terminated for any

  6  reason other than death or retirement after becoming vested

  7  may elect to receive a deferred monthly benefit which shall

  8  begin to accrue on the first day of the month of normal or

  9  early retirement and shall be payable on the last day of that

10  month and each month thereafter during his or her lifetime.

11  The amount of monthly benefit shall be computed in the same

12  manner as for a normal retirement benefit in accordance with

13  subsection (1) or early retirement benefit in accordance with

14  s. 121.021(30), but based on average monthly compensation and

15  creditable service as of the date of termination, which

16  compensation shall be indexed from the date of termination to

17  the date of retirement by 3 percent a year.

18         Section 2.  This act shall take effect July 1, 2003.

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21                          SENATE SUMMARY

22    Provides for indexing "compensation," as used for
      calculating benefits for terminated, vested members of
23    the Florida Retirement System, at the rate of 3 percent a
      year.
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CODING: Words stricken are deletions; words underlined are additions.