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A bill to be entitled |
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An act relating to agency reorganization; transferring the |
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Division of Retirement and its powers, duties, functions, |
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components, and assets from the Department of Management |
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Services to the State Board of Administration; amending s. |
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110.205, F.S.; providing status of division personnel |
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under the Career Service System; amending ss. 20.22, |
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20.28, 112.05, 112.3173, 112.352, 112.354, 112.356, |
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112.358, 112.361, 112.362, 112.363, 112.625, 112.63, |
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112.64, 112.658, 112.661, 112.665, 121.021, 121.025, |
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121.031, 121.051, 121.0511, 121.0515, 121.052, 121.055, |
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121.081, 121.085, 121.091, 121.101, 121.111, 121.133, |
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121.135, 121.136, 121.1815, 121.1905, 121.192, 121.193, |
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121.22, 121.23, 121.24, 121.30, 121.35, 121.40, 121.45, |
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121.4501, 122.02, 122.03, 122.05, 122.06, 122.07, 122.08, |
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122.09, 122.10, 122.12, 122.13, 122.15, 122.16, 122.23, |
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122.30, 122.34, 122.351, 175.032, 175.1215, 185.02, |
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185.105, 215.20, 215.28, 215.50, 238.01, 238.02, 238.03, |
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238.05, 238.07, 238.08, 238.09, 238.10, 238.11, 238.12, |
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238.14, 238.15, 238.171, 238.181, 238.32, and 650.02, |
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F.S., to conform to such transfer; providing an effective |
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date. |
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Be It Enacted by the Legislature of the State of Florida: |
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Section 1. The Division of Retirement of the Department of |
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Management Services is transferred to the State Board of |
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Administration. All powers, duties, functions, records, |
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personnel, property, and unexpended balances of appropriations, |
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allocations, and other funds relating to the Division of |
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Retirement are transferred by a type one transfer, as defined in |
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s. 20.06, Florida Statutes, to the State Board of |
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Administration. |
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Section 2. Paragraphs (g) and (h) of subsection (2) of |
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section 20.22, Florida Statutes, are amended to read: |
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20.22 Department of Management Services.--There is created |
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a Department of Management Services. |
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(2) The following divisions and programs within the |
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Department of Management Services are established: |
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(g) Division of Retirement.
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(g)(h)Division of State Group Insurance. |
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Section 3. Section 20.28, Florida Statutes, is amended to |
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read: |
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20.28 State Board of Administration.--The State Board of |
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Administration, continued by s. 9, Art. XII of the State |
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Constitution, retains all of its powers, duties, and functions |
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as prescribed by law. There is established under the State Board |
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of Administration a Division of Retirement, which shall be |
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subject to the direction of the executive director of the board. |
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Nothing in this act shall be construed to alter or amend the |
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powers, operations, or functioning of the State Board of |
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Administration with respect to its duties, responsibilities, and |
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authority existing prior to the enactment of this legislation.
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Section 4. Paragraph (u) of subsection (2) of section |
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110.205, Florida Statutes, is amended to read: |
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110.205 Career service; exemptions.-- |
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(2) EXEMPT POSITIONS.--The exempt positions that are not |
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covered by this part include the following: |
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(u) All officers and employees of the State Board of |
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Administration, including its Division of Retirement. The State |
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Board of Administration shall set the salaries and benefits of |
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these positions. |
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Section 5. Paragraph (b) of subsection (4) of section |
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112.05, Florida Statutes, is amended to read: |
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112.05 Retirement; cost-of-living adjustment; employment |
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after retirement.-- |
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(4) |
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(b) Any person to whom the limitation in paragraph (a) |
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applies who violates such reemployment limitation and is |
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reemployed with any agency participating in the Florida |
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Retirement System prior to completion of the 12-month limitation |
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period shall give timely notice of this fact in writing to the |
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employer and to the Division of Retirement of the State Board of |
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Administration; and the person's retirement benefits shall be |
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suspended for the balance of the 12-month limitation period. Any |
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person employed in violation of this subsection and any |
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employing agency which knowingly employs or appoints such person |
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without notifying the Division of RetirementDepartment of |
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Management Servicesto suspend retirement benefits shall be |
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jointly and severally liable for reimbursement to the retirement |
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trust fund of any benefits paid during the reemployment |
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limitation period. To avoid liability, such employing agency |
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shall have a written statement from the retiree that he or she |
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is not retired from a state-administered retirement system. Any |
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retirement benefits received by such person while reemployed |
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during this limitation period shall be repaid to the retirement |
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trust fund, and the retirement benefits shall remain suspended |
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until such repayment has been made. Any benefits suspended |
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beyond the reemployment limitation period shall apply toward the |
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repayment of benefits received in violation of the reemployment |
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limitation. |
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Section 6. Paragraph (d) of subsection (4) of section |
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112.3173, Florida Statutes, is amended to read: |
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112.3173 Felonies involving breach of public trust and |
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other specified offenses by public officers and employees; |
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forfeiture of retirement benefits.-- |
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(4) NOTICE.-- |
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(d) The Commission on Ethics shall forward any notice and |
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any other document received by it pursuant to this subsection to |
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the governing body of the public retirement system of which the |
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public officer or employee is a member or from which the public |
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officer or employee may be entitled to receive a benefit. When |
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called on by the Commission on Ethics, the Division of |
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Retirement of the State Board of AdministrationDepartment of |
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Management Servicesshall assist the commission in identifying |
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the appropriate public retirement system. |
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Section 7. Subsection (7) of section 112.352, Florida |
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Statutes, is amended to read: |
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112.352 Definitions.--The following words and phrases as |
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used in this act shall have the following meaning unless a |
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different meaning is required by the context: |
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(7) "DivisionDepartment" means the Division of Retirement |
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of the State Board of AdministrationDepartment of Management |
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Services. |
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Section 8. Section 112.354, Florida Statutes, is amended |
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to read: |
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112.354 Eligibility for supplement.--Each retired member |
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or, if applicable, a joint annuitant, except any person |
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receiving survivor benefits under the teachers' retirement |
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system of the state in accordance with s. 238.07(16), shall be |
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entitled to receive a supplement computed in accordance with s. |
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112.355 upon: |
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(1) Furnishing to the divisionDepartment of Management |
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Servicesevidence from the Social Security Administration |
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setting forth the retired member's social security benefit or |
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certifying the noninsured status of the retired member under the |
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Social Security Act, and |
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(2) Filing written application with the division |
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Department of Management Servicesfor such supplement. |
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Section 9. Section 112.356, Florida Statutes, is amended |
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to read: |
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112.356 Payment of supplement.--Any supplement due and |
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payable under this act shall be paid by the divisiondepartment |
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or under the direction and control of the divisiondepartment, |
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based on information furnished by the retired member, or a joint |
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annuitant, and the administrator of the system under which |
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retirement benefits are being paid, beginning on the first day |
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of the month coincident with or next following the later of the |
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effective date of this act and the date of approval of the |
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application for supplement by the divisiondepartment, and |
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payable thereafter on the first day of each month in the normal |
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or optional form in which retirement benefits under the |
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applicable system are being paid; provided, however, that if |
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application for supplement is made subsequent to December 31, |
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1967, not more than 6 retroactive monthly supplements shall be |
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paid. |
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Section 10. Section 112.358, Florida Statutes, is amended |
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to read: |
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112.358 Administration of system.--The divisionDepartment |
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of Management Servicesshall make such rules and regulations as |
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are necessary for the effective and efficient administration of |
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this act and the cost to pay the expenses of such administration |
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is herebyappropriated out of the appropriate retirement fund. |
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Section 11. Paragraph (g) of subsection (2), and |
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subsections (4), (6), and (8) of section 112.361, Florida |
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Statutes, are amended to read: |
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112.361 Additional and updated supplemental retirement |
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benefits.-- |
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(2) DEFINITIONS.--As used in this section, unless a |
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different meaning is required by the context: |
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(g) "DivisionDepartment" means the Division of Retirement |
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of the State Board of AdministrationDepartment of Management |
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Services. |
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(4) ELIGIBILITY FOR SUPPLEMENT.--Each retired member or, |
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if applicable, a joint annuitant, except any person receiving |
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survivor's benefits under the Teachers' Retirement System of the |
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state in accordance with s. 238.07(16), shall be entitled to |
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receive a supplement computed in accordance with subsection (5), |
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upon: |
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(a) Furnishing to the divisiondepartmentevidence from |
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the Social Security Administration setting forth the retired |
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member's social security benefit or certifying the noninsured |
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status of the retired member under the Social Security Act, and |
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(b) Filing written application with the division |
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departmentfor such supplement. |
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(6) PAYMENT OF SUPPLEMENT.--Any supplement due and payable |
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under this section shall be paid by the divisiondepartmentor |
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under the direction and control of the divisiondepartment, |
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based on information furnished by the retired member, or a joint |
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annuitant, and the administrator of the system under which |
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retirement benefits are being paid, beginning on the first day |
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of the month coincident with or next following the later of: |
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(a) July 1, 1969, or |
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(b) The date of approval of the application for supplement |
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by the divisiondepartment, |
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and payable thereafter on the first day of each month in the |
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normal or optional form in which retirement benefits under the |
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applicable system are being paid. However, no retroactive |
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monthly supplements shall be paid for any period prior to the |
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date specified in this paragraph. |
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(8) ADMINISTRATION OF SYSTEM.--The divisiondepartment |
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shall make such rules as are necessary for the effective and |
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efficient administration of this section, and the cost to pay |
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the expenses of such administration is hereby appropriated out |
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of the appropriate fund pursuant to subsection (7). |
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Section 12. Paragraphs (a) and (b) of subsection (4) of |
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section 112.362, Florida Statutes, are amended to read: |
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112.362 Recomputation of retirement benefits.-- |
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(4)(a) Effective July 1, 1980, any person who retired |
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prior to July 1, 1987, under a state-supported retirement system |
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with not less than 10 years of creditable service and who is not |
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receiving or entitled to receive federal social security |
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benefits shall, upon reaching 65 years of age and upon |
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application to the divisionDepartment of Management Services, |
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be entitled to receive a minimum monthly benefit equal to $16.50 |
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multiplied by the member's total number of years of creditable |
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service and adjusted by the actuarial factor applied to the |
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original benefit for optional forms of retirement. Thereafter, |
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the minimum monthly benefit shall be recomputed as provided in |
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paragraph (5)(a). Application for this minimum monthly benefit |
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shall include certification by the retired member that he or she |
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is not receiving and is not entitled to receive social security |
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benefits and shall include written authorization for the |
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divisionDepartment of Management Servicesto have access to |
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information from the Federal Social Security Administration |
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concerning the member's entitlement to or eligibility for social |
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security benefits. The minimum benefit provided by this |
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paragraph shall not be paid unless and until the application |
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requirements of this paragraph are satisfied. |
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(b) Effective July 1, 1978, the surviving spouse or |
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beneficiary who is receiving or entitled to receive a monthly |
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benefit commencing prior to July 1, 1987, from the account of |
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any deceased retired member who had completed at least 10 years |
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of creditable service shall, at the time such deceased retiree |
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would have reached age 65, if living, and, upon application to |
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the divisionDepartment of Management Services, be entitled to |
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receive the minimum monthly benefit described in paragraph (a), |
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adjusted by the actuarial factor applied to the optional form of |
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benefit payable to said surviving spouse or beneficiary, |
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provided said person is not receiving or entitled to receive |
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federal social security benefits. Application for this minimum |
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monthly benefit shall include certification by the surviving |
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spouse or beneficiary that he or she is not receiving and is not |
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entitled to receive social security benefits and shall include |
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written authorization for the divisionDepartment of Management |
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Servicesto have access to information from the Federal Social |
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Security Administration concerning such person's entitlement to |
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or eligibility for social security benefits. The minimum benefit |
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provided by this paragraph shall not be paid unless and until |
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the application requirements of this paragraph are satisfied. |
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Section 13. Subsections (2), (4), (7), and (8) of section |
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112.363, Florida Statutes, are amended to read: |
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112.363 Retiree health insurance subsidy.-- |
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(2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.-- |
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(a) A person who is retired under a state-administered |
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retirement system, or a beneficiary who is a spouse or financial |
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dependent entitled to receive benefits under a state- |
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administered retirement system, is eligible for health insurance |
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subsidy payments provided under this section; except that |
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pension recipients under ss. 121.40, 238.07(16)(a), and 250.22, |
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recipients of health insurance coverage under s. 110.1232, or |
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any other special pension or relief act shall not be eligible |
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for such payments. |
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(b) For purposes of this section, a person is deemed |
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retired from a state-administered retirement system when he or |
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she terminates employment with all employers participating in |
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the Florida Retirement System as described in s. 121.021(39) |
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and: |
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1. For a participant of the Public Employee Optional |
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Retirement Program established under part II of chapter 121, the |
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participant meets the age or service requirements to qualify for |
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normal retirement as set forth in s. 121.021(29). |
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2. For a member of the Florida Retirement System defined |
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benefit program, or any employee who maintains creditable |
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service under both the defined benefit program and the Public |
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Employee Optional Retirement Program, the member begins drawing |
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retirement benefits from the defined benefit program of the |
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Florida Retirement System. |
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(c)1. Effective July 1, 2001, any person retiring on or |
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after such date as a member of the Florida Retirement System, |
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including any participant of the defined contribution program |
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administered pursuant to part II of chapter 121, must have |
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satisfied the vesting requirements for his or her membership |
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class under the Florida Retirement System defined benefit |
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program as administered under part I of chapter 121. |
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2. Notwithstanding the provisions of subparagraph 1., a |
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person retiring due to disability must either qualify for a |
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regular or in-line-of-duty disability benefit as provided in s. |
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121.091(4) or qualify for a disability benefit under a |
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disability plan established under part II of chapter 121, as |
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appropriate. |
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(d) Payment of the retiree health insurance subsidy shall |
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be made only after coverage for health insurance for the retiree |
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or beneficiary has been certified in writing to the division |
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Department of Management Services. Participation in a former |
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employer's group health insurance program is not a requirement |
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for eligibility under this section. |
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(e) Participants in the Senior Management Service Optional |
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Annuity Program as provided in s. 121.055(6) and the State |
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University System Optional Retirement Program as provided in s. |
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121.35 shall not receive the retiree health insurance subsidy |
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provided in this section. The employer of such participant shall |
294
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pay the contributions required in subsection (8) to the annuity |
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program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as |
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applicable. |
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(4) PAYMENT OF RETIREE HEALTH INSURANCE |
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SUBSIDY.--Beginning January 1, 1988, any monthly retiree health |
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insurance subsidy amount due and payable under this section |
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shall be paid to retired members by the divisionDepartment of |
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Management Services or under the direction and control of the |
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divisiondepartment. |
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(7) ADMINISTRATION OF SYSTEM.--The divisionDepartment of |
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Management Servicesmay adopt such rules and regulations as are |
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necessary for the effective and efficient administration of this |
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section. The cost of administration shall be appropriated from |
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the trust fund. |
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(8) CONTRIBUTIONS.--For purposes of funding the insurance |
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subsidy provided by this section: |
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(a) Beginning October 1, 1987, the employer of each member |
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of a state-administered retirement plan shall contribute 0.24 |
312
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percent of gross compensation each pay period. |
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(b) Beginning January 1, 1989, the employer of each member |
314
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of a state-administered retirement plan shall contribute 0.48 |
315
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percent of gross compensation each pay period. |
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(c) Beginning January 1, 1994, the employer of each member |
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of a state-administered retirement plan shall contribute 0.56 |
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percent of gross compensation each pay period. |
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(d) Beginning January 1, 1995, the employer of each member |
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of a state-administered retirement plan shall contribute 0.66 |
321
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percent of gross compensation each pay period. |
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(e) Beginning July 1, 1998, the employer of each member of |
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a state-administered retirement plan shall contribute 0.94 |
324
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percent of gross compensation each pay period. |
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(f) Beginning July 1, 2001, the employer of each member of |
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a state-administered plan shall contribute 1.11 percent of gross |
327
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compensation each pay period. |
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|
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Such contributions shall be submitted to the divisionDepartment |
330
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of Management Servicesand deposited in the Retiree Health |
331
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Insurance Subsidy Trust Fund. |
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Section 14. Subsection (10) is added to section 112.625, |
333
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Florida Statutes, to read: |
334
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112.625 Definitions.--As used in this act: |
335
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(10) "Division" means the Division of Retirement of the |
336
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State Board of Administration. |
337
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Section 15. Subsections (2) and (4) of section 112.63, |
338
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Florida Statutes, are amended to read: |
339
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112.63 Actuarial reports and statements of actuarial |
340
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impact; review.-- |
341
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(2) The frequency of actuarial reports must be at least |
342
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every 3 years commencing from the last actuarial report of the |
343
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plan or system or October 1, 1980, if no actuarial report has |
344
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been issued within the 3-year period prior to October 1, 1979. |
345
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The results of each actuarial report shall be filed with the |
346
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plan administrator within 60 days of certification. Thereafter, |
347
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the results of each actuarial report shall be made available for |
348
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inspection upon request. Additionally, each retirement system or |
349
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plan covered by this act which is not administered directly by |
350
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the divisionDepartment of Management Servicesshall furnish a |
351
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copy of each actuarial report to the divisionDepartment of |
352
|
Management Serviceswithin 60 days after receipt from the |
353
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actuary. The requirements of this section are supplemental to |
354
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actuarial valuations necessary to comply with the requirements |
355
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of ss. 218.321 and 218.39. |
356
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(4) Upon receipt, pursuant to subsection (2), of an |
357
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actuarial report, or upon receipt, pursuant to subsection (3), |
358
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of a statement of actuarial impact, the divisionDepartment of |
359
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Management Servicesshall acknowledge such receipt, but shall |
360
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only review and comment on each retirement system's or plan's |
361
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actuarial valuations at least on a triennial basis. If the |
362
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divisiondepartmentfinds that the actuarial valuation is not |
363
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complete, accurate, or based on reasonable assumptions, or if |
364
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the divisiondepartmentdoes not receive the actuarial report or |
365
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statement of actuarial impact, the divisiondepartmentshall |
366
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notify the local government and request appropriate adjustment. |
367
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If, after a reasonable period of time, a satisfactory adjustment |
368
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is not made, the affected local government or the division |
369
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departmentmay petition for a hearing under the provisions of |
370
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ss. 120.569 and 120.57. If the administrative law judge |
371
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recommends in favor of the divisiondepartment, the division |
372
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departmentshall perform an actuarial review or prepare the |
373
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statement of actuarial impact. The cost to the division |
374
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departmentof performing such actuarial review or preparing such |
375
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statement shall be charged to the governmental entity of which |
376
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the employees are covered by the retirement system or plan. If |
377
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payment of such costs is not received by the divisiondepartment |
378
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within 60 days after receipt by the governmental entity of the |
379
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request for payment, the divisiondepartmentshall certify to |
380
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the Comptroller the amount due, and the Comptroller shall pay |
381
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such amount to the divisiondepartmentfrom any funds payable to |
382
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the governmental entity of which the employees are covered by |
383
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the retirement system or plan. If the administrative law judge |
384
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recommends in favor of the local retirement system and the |
385
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divisiondepartmentperforms an actuarial review, the cost to |
386
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the divisiondepartmentof performing the actuarial review shall |
387
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be paid by the divisiondepartment. |
388
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Section 16. Subsection (1) of section 112.64, Florida |
389
|
Statutes, is amended to read: |
390
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112.64 Administration of funds; amortization of unfunded |
391
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liability.-- |
392
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(1) Employee contributions shall be deposited in the |
393
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retirement system or plan at least monthly. Employer |
394
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contributions shall be deposited at least quarterly; however, |
395
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any revenues received from any source by an employer which are |
396
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specifically collected for the purpose of allocation for deposit |
397
|
into a retirement system or plan shall be so deposited within 30 |
398
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days of receipt by the employer. All employers and employees |
399
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participating in the Florida Retirement System and other |
400
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existing retirement systems which are administered by the |
401
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divisionDepartment of Management Servicesshall continue to |
402
|
make contributions at least monthly. |
403
|
Section 17. Subsections (1) and (3) of section 112.658, |
404
|
Florida Statutes, are amended to read: |
405
|
112.658 Office of Program Policy Analysis and Government |
406
|
Accountability to determine compliance of the Florida Retirement |
407
|
System.-- |
408
|
(1) The Office of Program Policy Analysis and Government |
409
|
Accountability shall determine, through the examination of |
410
|
actuarial reviews, financial statements, and the practices and |
411
|
procedures of the Division of RetirementDepartment of |
412
|
Management Services, the compliance of the Florida Retirement |
413
|
System with the provisions of this act. |
414
|
(3) The Office of Program Policy Analysis and Government |
415
|
Accountability shall employ the same actuarial standards to |
416
|
monitor the divisionDepartment of Management Services as the |
417
|
divisionDepartment of Management Servicesuses to monitor local |
418
|
governments. |
419
|
Section 18. Subsections (9), (16), and (17) of section |
420
|
112.661, Florida Statutes, are amended to read: |
421
|
112.661 Investment policies.--Investment of the assets of |
422
|
any local retirement system or plan must be consistent with a |
423
|
written investment policy adopted by the board. Such policies |
424
|
shall be structured to maximize the financial return to the |
425
|
retirement system or plan consistent with the risks incumbent in |
426
|
each investment and shall be structured to establish and |
427
|
maintain an appropriate diversification of the retirement system |
428
|
or plan's assets. |
429
|
(9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy |
430
|
shall require that, for each actuarial valuation, the board |
431
|
determine the total expected annual rate of return for the |
432
|
current year, for each of the next several years, and for the |
433
|
long term thereafter. This determination must be filed promptly |
434
|
with the divisionDepartment of Management Servicesand with the |
435
|
plan's sponsor and the consulting actuary. The department shall |
436
|
use this determination only to notify the board, the plan's |
437
|
sponsor, and consulting actuary of material differences between |
438
|
the total expected annual rate of return and the actuarial |
439
|
assumed rate of return. |
440
|
(16) FILING OF INVESTMENT POLICY.--Upon adoption by the |
441
|
board, the investment policy shall be promptly filed with the |
442
|
divisionDepartment of Management Servicesand the plan's |
443
|
sponsor and consulting actuary. The effective date of the |
444
|
investment policy, and any amendment thereto, shall be the 31st |
445
|
calendar day following the filing date with the plan sponsor. |
446
|
(17) VALUATION OF ILLIQUID INVESTMENTS.--The investment |
447
|
policy shall provide for the valuation of illiquid investments |
448
|
for which a generally recognized market is not available or for |
449
|
which there is no consistent or generally accepted pricing |
450
|
mechanism. If those investments are utilized, the investment |
451
|
policy must include the criteria set forth in s. 215.47(6), |
452
|
except that submission to the Investment Advisory Council is not |
453
|
required. The investment policy shall require that, for each |
454
|
actuarial valuation, the board must verify the determination of |
455
|
the fair market value for those investments and ascertain that |
456
|
the determination complies with all applicable state and federal |
457
|
requirements. The investment policy shall require that the board |
458
|
disclose to the divisionDepartment of Management Servicesand |
459
|
the plan's sponsor each such investment for which the fair |
460
|
market value is not provided. |
461
|
Section 19. Section 112.665, Florida Statutes, is amended |
462
|
to read: |
463
|
112.665 Duties of Division of RetirementDepartment of |
464
|
Management Services.-- |
465
|
(1) The Division of RetirementDepartment of Management |
466
|
Servicesshall: |
467
|
(a) Gather, catalog, and maintain complete, computerized |
468
|
data information on all public employee retirement systems or |
469
|
plans in the state, based upon a review of audits, reports, and |
470
|
other data pertaining to the systems or plans; |
471
|
(b) Receive and comment upon all actuarial reviews of |
472
|
retirement systems or plans maintained by units of local |
473
|
government; |
474
|
(c) Cooperate with local retirement systems or plans on |
475
|
matters of mutual concern and provide technical assistance to |
476
|
units of local government in the assessment and revision of |
477
|
retirement systems or plans; |
478
|
(d) Issue, by January 1 annually, a report to the |
479
|
President of the Senate and the Speaker of the House of |
480
|
Representatives, which report details division activities, |
481
|
findings, and recommendations concerning all governmental |
482
|
retirement systems. The report may include legislation proposed |
483
|
to carry out such recommendations; |
484
|
(e) Issue, by January 1 annually, a report to the Special |
485
|
District Information Program of the Department of Community |
486
|
Affairs that includes the participation in and compliance of |
487
|
special districts with the local government retirement system |
488
|
provisions in s. 112.63 and the state-administered retirement |
489
|
system provisions as specified in part I of chapter 121; and |
490
|
(f) Adopt reasonable rules to administer the provisions of |
491
|
this part. |
492
|
(2) The divisiondepartmentmay subpoena actuarial |
493
|
witnesses, review books and records, hold hearings, and take |
494
|
testimony. A witness shall have the right to be accompanied by |
495
|
counsel. |
496
|
Section 20. Subsections (4), (5), and (32), and paragraph |
497
|
(a) of subsection (39) of section 121.021, Florida Statutes, are |
498
|
amended to read: |
499
|
121.021 Definitions.--The following words and phrases as |
500
|
used in this chapter have the respective meanings set forth |
501
|
unless a different meaning is plainly required by the context: |
502
|
(4) "DivisionDepartment" means the Division of Retirement |
503
|
of the State Board of AdministrationDepartment of Management |
504
|
Services. |
505
|
(5) "Administrator" means the executive director of the |
506
|
State Board of Administrationsecretary of the Department of |
507
|
Management Services. |
508
|
(32) "State agency" means the Division of Retirement |
509
|
Department of Management Serviceswithin the provisions and |
510
|
contemplation of chapter 650. |
511
|
(39)(a) "Termination" occurs, except as provided in |
512
|
paragraph (b), when a member ceases all employment relationships |
513
|
with employers under this system, as defined in subsection (10), |
514
|
but in the event a member should be employed by any such |
515
|
employer within the next calendar month, termination shall be |
516
|
deemed not to have occurred. A leave of absence shall constitute |
517
|
a continuation of the employment relationship, except that a |
518
|
leave of absence without pay due to disability may constitute |
519
|
termination for a member, if such member makes application for |
520
|
and is approved for disability retirement in accordance with s. |
521
|
121.091(4). The divisiondepartmentmay require other evidence |
522
|
of termination as it deems necessary. |
523
|
Section 21. Section 121.025, Florida Statutes, is amended |
524
|
to read: |
525
|
121.025 Administrator; powers and duties.--The Division of |
526
|
Retirementsecretary of the Department of Management Services |
527
|
shall be the administrator of the retirement and pension systems |
528
|
assigned or transferred to itthe Department of Management |
529
|
Services by law. The executive director of the State Board of |
530
|
Administrationandshall have the authority to sign the |
531
|
contracts necessary to carry out the duties and responsibilities |
532
|
assigned by law to the divisionDepartment of Management |
533
|
Services. |
534
|
Section 22. Subsections (1), (2), and (5) and paragraph |
535
|
(e) of subsection (3) of section 121.031, Florida Statutes, are |
536
|
amended to read: |
537
|
121.031 Administration of system; appropriation; oaths; |
538
|
actuarial studies; public records.-- |
539
|
(1) The divisionDepartment of Management Serviceshas the |
540
|
authority to adopt rules pursuant to ss. 120.536(1) and 120.54 |
541
|
to implement the provisions of law conferring duties upon the |
542
|
divisiondepartmentand to adopt rules as are necessary for the |
543
|
effective and efficient administration of this system. The funds |
544
|
to pay the expenses for administration of the system are hereby |
545
|
appropriated from the interest earned on investments made for |
546
|
the retirement and social security trust funds and the |
547
|
assessments allowed under chapter 650. |
548
|
(2) The divisionDepartment of Management Servicesis |
549
|
authorized to require oaths, by affidavit or otherwise, and |
550
|
acknowledgments from persons in connection with the |
551
|
administration of its duties and responsibilities under this |
552
|
chapter. |
553
|
(3) The administrator shall cause an actuarial study of |
554
|
the system to be made at least annually and shall report the |
555
|
results of such study to the Legislature by December 31 prior to |
556
|
the next legislative session. The study shall, at a minimum, |
557
|
conform to the requirements of s. 112.63, with the following |
558
|
exceptions and additions: |
559
|
(e) The study shall include measures of funding status and |
560
|
funding progress designed to facilitate the assessment of trends |
561
|
over several actuarial valuations with respect to the overall |
562
|
solvency of the system. Such measures shall be adopted by the |
563
|
divisiondepartmentand shall be used consistently in all |
564
|
actuarial valuations performed on the system. |
565
|
(5) The names and addresses of retirees are confidential |
566
|
and exempt from the provisions of s. 119.07(1) to the extent |
567
|
that no state or local governmental agency may provide the names |
568
|
or addresses of such persons in aggregate, compiled, or list |
569
|
form to any person except to a public agency engaged in official |
570
|
business. However, a state or local government agency may |
571
|
provide the names and addresses of retirees from that agency to |
572
|
a bargaining agent as defined in s. 447.203(12) or to a retiree |
573
|
organization for official business use. Lists of names or |
574
|
addresses of retirees may be exchanged by public agencies, but |
575
|
such lists shall not be provided to, or open for inspection by, |
576
|
the public. Any person may view or copy any individual's |
577
|
retirement records at the divisionDepartment of Management |
578
|
Services, one record at a time, or may obtain information by a |
579
|
separate written request for a named individual for which |
580
|
information is desired. |
581
|
Section 23. Paragraph (c) of subsection (1) and paragraphs |
582
|
(b) and (f) of subsection (2) of section 121.051, Florida |
583
|
Statutes, are amended to read: |
584
|
121.051 Participation in the system.-- |
585
|
(1) COMPULSORY PARTICIPATION.-- |
586
|
(c)1. After June 30, 1983, a member of an existing system |
587
|
who is reemployed after terminating employment shall have at the |
588
|
time of reemployment the option of selecting to remain in the |
589
|
existing retirement system or to transfer to the Florida |
590
|
Retirement System. Failure to submit such selection in writing |
591
|
to the divisionDepartment of Management Serviceswithin 6 |
592
|
months of reemployment shall result in compulsory membership in |
593
|
the Florida Retirement System. |
594
|
2. After June 30, 1988, the provisions of subparagraph 1. |
595
|
shall not apply to a member of an existing system who is |
596
|
reemployed within 12 months after terminating employment. Such |
597
|
member shall continue to have membership in the existing system |
598
|
upon reemployment and shall not be permitted to become a member |
599
|
of the Florida Retirement System, except by transferring to that |
600
|
system as provided in ss. 121.052 and 121.055. |
601
|
(2) OPTIONAL PARTICIPATION.-- |
602
|
(b)1. The governing body of any municipality or special |
603
|
district in the state may elect to participate in the system |
604
|
upon proper application to the administrator and may cover all |
605
|
or any of its units as approved by the Secretary of Health and |
606
|
Human Services and the administrator. The divisiondepartment |
607
|
shall adopt rules establishing provisions for the submission of |
608
|
documents necessary for such application. Prior to being |
609
|
approved for participation in the Florida Retirement System, the |
610
|
governing body of any such municipality or special district that |
611
|
has a local retirement system shall submit to the administrator |
612
|
a certified financial statement showing the condition of the |
613
|
local retirement system as of a date within 3 months prior to |
614
|
the proposed effective date of membership in the Florida |
615
|
Retirement System. The statement must be certified by a |
616
|
recognized accounting firm that is independent of the local |
617
|
retirement system. All required documents necessary for |
618
|
extending Florida Retirement System coverage must be received by |
619
|
the divisiondepartmentfor consideration at least 15 days prior |
620
|
to the proposed effective date of coverage. If the municipality |
621
|
or special district does not comply with this requirement, the |
622
|
divisiondepartmentmay require that the effective date of |
623
|
coverage be changed. |
624
|
2. Any city or special district that has an existing |
625
|
retirement system covering the employees in the units that are |
626
|
to be brought under the Florida Retirement System may |
627
|
participate only after holding a referendum in which all |
628
|
employees in the affected units have the right to participate. |
629
|
Only those employees electing coverage under the Florida |
630
|
Retirement System by affirmative vote in said referendum shall |
631
|
be eligible for coverage under this chapter, and those not |
632
|
participating or electing not to be covered by the Florida |
633
|
Retirement System shall remain in their present systems and |
634
|
shall not be eligible for coverage under this chapter. After the |
635
|
referendum is held, all future employees shall be compulsory |
636
|
members of the Florida Retirement System. |
637
|
3. The governing body of any city or special district |
638
|
complying with subparagraph 1. may elect to provide, or not |
639
|
provide, benefits based on past service of officers and |
640
|
employees as described in s. 121.081(1). However, if such |
641
|
employer elects to provide past service benefits, such benefits |
642
|
must be provided for all officers and employees of its covered |
643
|
group. |
644
|
4. Once this election is made and approved it may not be |
645
|
revoked, except pursuant to subparagraphs 5. and 6., and all |
646
|
present officers and employees electing coverage under this |
647
|
chapter and all future officers and employees shall be |
648
|
compulsory members of the Florida Retirement System. |
649
|
5. Subject to the conditions set forth in subparagraph 6., |
650
|
the governing body of any hospital licensed under chapter 395 |
651
|
which is governed by the board of a special district as defined |
652
|
in s. 189.403(1) or by the board of trustees of a public health |
653
|
trust created under s. 154.07, hereinafter referred to as |
654
|
"hospital district," and which participates in the system, may |
655
|
elect to cease participation in the system with regard to future |
656
|
employees in accordance with the following procedure: |
657
|
a. No more than 30 days and at least 7 days before |
658
|
adopting a resolution to partially withdraw from the Florida |
659
|
Retirement System and establish an alternative retirement plan |
660
|
for future employees, a public hearing must be held on the |
661
|
proposed withdrawal and proposed alternative plan. |
662
|
b. From 7 to 15 days before such hearing, notice of intent |
663
|
to withdraw, specifying the time and place of the hearing, must |
664
|
be provided in writing to employees of the hospital district |
665
|
proposing partial withdrawal and must be published in a |
666
|
newspaper of general circulation in the area affected, as |
667
|
provided by ss. 50.011-50.031. Proof of publication of such |
668
|
notice shall be submitted to the divisionDepartment of |
669
|
Management Services. |
670
|
c. The governing body of any hospital district seeking to |
671
|
partially withdraw from the system must, before such hearing, |
672
|
have an actuarial report prepared and certified by an enrolled |
673
|
actuary, as defined in s. 112.625(3), illustrating the cost to |
674
|
the hospital district of providing, through the retirement plan |
675
|
that the hospital district is to adopt, benefits for new |
676
|
employees comparable to those provided under the Florida |
677
|
Retirement System. |
678
|
d. Upon meeting all applicable requirements of this |
679
|
subparagraph, and subject to the conditions set forth in |
680
|
subparagraph 6., partial withdrawal from the system and adoption |
681
|
of the alternative retirement plan may be accomplished by |
682
|
resolution duly adopted by the hospital district board. The |
683
|
hospital district board must provide written notice of such |
684
|
withdrawal to the division by mailing a copy of the resolution |
685
|
to the division, postmarked no later than December 15, 1995. The |
686
|
withdrawal shall take effect January 1, 1996. |
687
|
6. Following the adoption of a resolution under sub- |
688
|
subparagraph 5.d., all employees of the withdrawing hospital |
689
|
district who were participants in the Florida Retirement System |
690
|
prior to January 1, 1996, shall remain as participants in the |
691
|
system for as long as they are employees of the hospital |
692
|
district, and all rights, duties, and obligations between the |
693
|
hospital district, the system, and the employees shall remain in |
694
|
full force and effect. Any employee who is hired or appointed on |
695
|
or after January 1, 1996, may not participate in the Florida |
696
|
Retirement System, and the withdrawing hospital district shall |
697
|
have no obligation to the system with respect to such employees. |
698
|
(f)1. Whenever an employer that participates in the |
699
|
Florida Retirement System undertakes the transfer, merger, or |
700
|
consolidation of governmental services or functions, the |
701
|
employer must notify the divisiondepartmentat least 60 days |
702
|
prior to such action and shall provide documentation as required |
703
|
by the divisiondepartment. |
704
|
2. When the agency to which a member's employing unit is |
705
|
transferred, merged, or consolidated does not participate in the |
706
|
Florida Retirement System, a member shall elect in writing to |
707
|
remain in the Florida Retirement System or to transfer to the |
708
|
local retirement system operated by such agency. If such agency |
709
|
does not participate in a local retirement system, the member |
710
|
shall continue membership in the Florida Retirement System. In |
711
|
either case, the membership shall continue for as long as the |
712
|
member is employed by the agency to which his or her unit was |
713
|
transferred, merged, or consolidated. |
714
|
Section 24. Subsection (2) of section 121.0511, Florida |
715
|
Statutes, is amended to read: |
716
|
121.0511 Revocation of election and alternative plan.--The |
717
|
governing body of any municipality or independent special |
718
|
district that has elected to participate in the Florida |
719
|
Retirement System may revoke its election in accordance with the |
720
|
following procedure: |
721
|
(2) At least 7 days, but not more than 15 days, before the |
722
|
hearing, notice of intent to revoke, specifying the time and |
723
|
place of the hearing, must be published in a newspaper of |
724
|
general circulation in the area affected, as provided by ss. |
725
|
50.011-50.031. Proof of publication of the notice must be |
726
|
submitted to the divisionDepartment of Management Services. |
727
|
Section 25. Subsections (3) and (4) and paragraph (c) of |
728
|
subsection (7) of section 121.0515, Florida Statutes, are |
729
|
amended to read: |
730
|
121.0515 Special risk membership.-- |
731
|
(3) PROCEDURE FOR DESIGNATING.-- |
732
|
(a) Any member of the Florida Retirement System employed |
733
|
by a county, city, or special district who feels that he or she |
734
|
meets the criteria set forth in this section for membership in |
735
|
the Special Risk Class may request that his or her employer |
736
|
submit an application to the divisiondepartmentrequesting that |
737
|
the divisiondepartmentdesignate him or her as a special risk |
738
|
member. If the employer agrees that the member meets the |
739
|
requirements for special risk membership, the employer shall |
740
|
submit an application to the divisiondepartmentin behalf of |
741
|
the employee containing a certification that the member meets |
742
|
the criteria for special risk membership set forth in this |
743
|
section and such other supporting documentation as may be |
744
|
required by administrative rule. The divisiondepartmentshall, |
745
|
within 90 days, either designate or refuse to designate the |
746
|
member as a special risk member. If the employer declines to |
747
|
submit the member's application to the divisiondepartmentor if |
748
|
the divisiondepartmentdoes not designate the member as a |
749
|
special risk member, the member or the employer may appeal to |
750
|
the State Retirement Commission, as provided in s. 121.23, for |
751
|
designation as a special risk member. A member who receives a |
752
|
final affirmative ruling pursuant to such appeal for special |
753
|
risk membership shall have special risk membership retroactive |
754
|
to the date such member would have had special risk membership |
755
|
had such membership been approved by the employer and the |
756
|
divisiondepartment, as determined by the divisiondepartment, |
757
|
and the employer contributions shall be paid in full within 1 |
758
|
year after such final ruling. |
759
|
(b)1. Applying the criteria set forth in this section, the |
760
|
divisionDepartment of Management Servicesshall specify which |
761
|
current and newly created classes of positions under the uniform |
762
|
classification plan established pursuant to chapter 110 entitle |
763
|
the incumbents of positions in those classes to membership in |
764
|
the Special Risk Class. Only employees employed in the classes |
765
|
so specified shall be special risk members. |
766
|
2. When a class is not specified by the division |
767
|
departmentas provided in subparagraph 1., the employing agency |
768
|
may petition the State Retirement Commission for approval in |
769
|
accordance with s. 121.23. |
770
|
(4) REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member who is |
771
|
a special risk member on October 1, 1978, and who fails to meet |
772
|
the criteria for special risk membership established by this |
773
|
section shall have his or her special risk designation removed |
774
|
and thereafter shall be a regular member and shall earn only |
775
|
regular membership credit. The divisiondepartmentshall have |
776
|
the authority to review the special risk designation of members |
777
|
to determine whether or not those members continue to meet the |
778
|
criteria for special risk membership. |
779
|
(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.-- |
780
|
(c) The divisiondepartmentshall adopt such rules as are |
781
|
required to administer this subsection. |
782
|
Section 26. Paragraph (e) of subsection (3) of section |
783
|
121.052, Florida Statutes, is amended to read: |
784
|
121.052 Membership class of elected officers.-- |
785
|
(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective |
786
|
July 1, 1990, participation in the Elected Officers' Class shall |
787
|
be compulsory for elected officers listed in paragraphs (2)(a)- |
788
|
(d) and (f) assuming office on or after said date, unless the |
789
|
elected officer elects membership in another class or withdraws |
790
|
from the Florida Retirement System as provided in paragraphs |
791
|
(3)(a)-(d): |
792
|
(e) Effective July 1, 2001, the governing body of a |
793
|
municipality or special district may, by majority vote, elect to |
794
|
designate all its elected positions for inclusion in the Elected |
795
|
Officers' Class. Such election shall be made between July 1, |
796
|
2001, and December 31, 2001, and shall be irrevocable. The |
797
|
designation of such positions shall be effective the first day |
798
|
of the month following receipt by the divisiondepartmentof the |
799
|
ordinance or resolution passed by the governing body. |
800
|
Section 27. Paragraphs (b) and (h) of subsection (1) and |
801
|
paragraphs (a), (c), (d), and (f) of subsection (6) of section |
802
|
121.055, Florida Statutes, are amended to read: |
803
|
121.055 Senior Management Service Class.--There is hereby |
804
|
established a separate class of membership within the Florida |
805
|
Retirement System to be known as the "Senior Management Service |
806
|
Class," which shall become effective February 1, 1987. |
807
|
(1) |
808
|
(b)1. Except as provided in subparagraph 2., effective |
809
|
January 1, 1990, participation in the Senior Management Service |
810
|
Class shall be compulsory for the president of each community |
811
|
college, the manager of each participating city or county, and |
812
|
all appointed district school superintendents. Effective January |
813
|
1, 1994, additional positions may be designated for inclusion in |
814
|
the Senior Management Service Class of the Florida Retirement |
815
|
System, provided that: |
816
|
a. Positions to be included in the class shall be |
817
|
designated by the local agency employer. Notice of intent to |
818
|
designate positions for inclusion in the class shall be |
819
|
published once a week for 2 consecutive weeks in a newspaper of |
820
|
general circulation published in the county or counties |
821
|
affected, as provided in chapter 50. |
822
|
b. Up to 10 nonelective full-time positions may be |
823
|
designated for each local agency employer reporting to the |
824
|
divisionDepartment of Management Services; for local agencies |
825
|
with 100 or more regularly established positions, additional |
826
|
nonelective full-time positions may be designated, not to exceed |
827
|
1 percent of the regularly established positions within the |
828
|
agency. |
829
|
c. Each position added to the class must be a managerial |
830
|
or policymaking position filled by an employee who is not |
831
|
subject to continuing contract and serves at the pleasure of the |
832
|
local agency employer without civil service protection, and who: |
833
|
(I) Heads an organizational unit; or |
834
|
(II) Has responsibility to effect or recommend personnel, |
835
|
budget, expenditure, or policy decisions in his or her areas of |
836
|
responsibility. |
837
|
2. In lieu of participation in the Senior Management |
838
|
Service Class, members of the Senior Management Service Class |
839
|
pursuant to the provisions of subparagraph 1. may withdraw from |
840
|
the Florida Retirement System altogether. The decision to |
841
|
withdraw from the Florida Retirement System shall be irrevocable |
842
|
for as long as the employee holds such a position. Any service |
843
|
creditable under the Senior Management Service Class shall be |
844
|
retained after the member withdraws from the Florida Retirement |
845
|
System; however, additional service credit in the Senior |
846
|
Management Service Class shall not be earned after such |
847
|
withdrawal. Such members shall not be eligible to participate in |
848
|
the Senior Management Service Optional Annuity Program. |
849
|
(h)1. Except as provided in subparagraph 3., effective |
850
|
January 1, 1994, participation in the Senior Management Service |
851
|
Class shall be compulsory for the State Courts Administrator and |
852
|
the Deputy State Courts Administrators, the Clerk of the Supreme |
853
|
Court, the Marshal of the Supreme Court, the Executive Director |
854
|
of the Justice Administrative Commission, the Capital Collateral |
855
|
Regional Counsels, the clerks of the district courts of appeals, |
856
|
the marshals of the district courts of appeals, and the trial |
857
|
court administrator and the Chief Deputy Court Administrator in |
858
|
each judicial circuit. Effective January 1, 1994, additional |
859
|
positions in the offices of the state attorney and public |
860
|
defender in each judicial circuit may be designated for |
861
|
inclusion in the Senior Management Service Class of the Florida |
862
|
Retirement System, provided that: |
863
|
a. Positions to be included in the class shall be |
864
|
designated by the state attorney or public defender, as |
865
|
appropriate. Notice of intent to designate positions for |
866
|
inclusion in the class shall be published once a week for 2 |
867
|
consecutive weeks in a newspaper of general circulation |
868
|
published in the county or counties affected, as provided in |
869
|
chapter 50. |
870
|
b. One nonelective full-time position may be designated |
871
|
for each state attorney and public defender reporting to the |
872
|
divisionDepartment of Management Services; for agencies with |
873
|
200 or more regularly established positions under the state |
874
|
attorney or public defender, additional nonelective full-time |
875
|
positions may be designated, not to exceed 0.5 percent of the |
876
|
regularly established positions within the agency. |
877
|
c. Each position added to the class must be a managerial |
878
|
or policymaking position filled by an employee who serves at the |
879
|
pleasure of the state attorney or public defender without civil |
880
|
service protection, and who: |
881
|
(I) Heads an organizational unit; or |
882
|
(II) Has responsibility to effect or recommend personnel, |
883
|
budget, expenditure, or policy decisions in his or her areas of |
884
|
responsibility. |
885
|
2. Participation in this class shall be compulsory, except |
886
|
as provided in subparagraph 3., for any judicial employee who |
887
|
holds a position designated for coverage in the Senior |
888
|
Management Service Class, and such participation shall continue |
889
|
until the employee terminates employment in a covered position. |
890
|
Effective January 1, 2001, participation in this class is |
891
|
compulsory for assistant state attorneys, assistant statewide |
892
|
prosecutors, assistant public defenders, and assistant capital |
893
|
collateral regional counsels. Effective January 1, 2002, |
894
|
participation in this class is compulsory for assistant |
895
|
attorneys general. |
896
|
3. In lieu of participation in the Senior Management |
897
|
Service Class, such members, excluding assistant state |
898
|
attorneys, assistant public defenders, assistant statewide |
899
|
prosecutors, assistant attorneys general, and assistant capital |
900
|
collateral regional counsels, may participate in the Senior |
901
|
Management Service Optional Annuity Program as established in |
902
|
subsection (6). |
903
|
(6)(a) Senior Management Service Optional Annuity |
904
|
Program.--The Division of RetirementDepartment of Management |
905
|
Servicesshall establish a Senior Management Service Optional |
906
|
Annuity Program under which contracts providing retirement, |
907
|
death, and disability benefits may be purchased for those |
908
|
employees who elect to participate in the optional annuity |
909
|
program. The benefits to be provided for or on behalf of |
910
|
participants in such optional annuity program shall be provided |
911
|
through individual contracts or individual certificates issued |
912
|
for group annuity contracts, which may be fixed, variable, or a |
913
|
combination thereof, in accordance with s. 401(a) of the |
914
|
Internal Revenue Code. Any such individual contract or |
915
|
certificate shall state the annuity plan on its face page, and |
916
|
shall include, but not be limited to, a statement of ownership, |
917
|
the contract benefits, annuity income options, limitations, |
918
|
expense charges, and surrender charges, if any. The employing |
919
|
agency shall contribute, as provided in this section, toward the |
920
|
purchase of such optional benefits which shall be fully and |
921
|
immediately vested in the participants. |
922
|
(c) Participation.-- |
923
|
1. Any eligible employee who is employed on or before |
924
|
February 1, 1987, may elect to participate in the optional |
925
|
annuity program in lieu of participation in the Senior |
926
|
Management Service Class. Such election shall be made in writing |
927
|
and filed with the divisiondepartmentand the personnel officer |
928
|
of the employer on or before May 1, 1987. Any eligible employee |
929
|
who is employed on or before February 1, 1987, and who fails to |
930
|
make an election to participate in the optional annuity program |
931
|
by May 1, 1987, shall be deemed to have elected membership in |
932
|
the Senior Management Service Class. |
933
|
2. Any employee who becomes eligible to participate in the |
934
|
optional annuity program by reason of initial employment |
935
|
commencing after February 1, 1987, may, within 90 days after the |
936
|
date of commencement of employment, elect to participate in the |
937
|
optional annuity program. Such election shall be made in writing |
938
|
and filed with the personnel officer of the employer. Any |
939
|
eligible employee who does not within 90 days after commencement |
940
|
of such employment elect to participate in the optional annuity |
941
|
program shall be deemed to have elected membership in the Senior |
942
|
Management Service Class. |
943
|
3. A person who is appointed to a position in the Senior |
944
|
Management Service Class and who is a member of an existing |
945
|
retirement system or the Special Risk or Special Risk |
946
|
Administrative Support Classes of the Florida Retirement System |
947
|
may elect to remain in such system or class in lieu of |
948
|
participation in the Senior Management Service Class or optional |
949
|
annuity program. Such election shall be made in writing and |
950
|
filed with the divisiondepartmentand the personnel officer of |
951
|
the employer within 90 days of such appointment. Any eligible |
952
|
employee who fails to make an election to participate in the |
953
|
existing system, the Special Risk Class of the Florida |
954
|
Retirement System, the Special Risk Administrative Support Class |
955
|
of the Florida Retirement System, or the optional annuity |
956
|
program shall be deemed to have elected membership in the Senior |
957
|
Management Service Class. |
958
|
4. Except as provided in subparagraph 5., an employee's |
959
|
election to participate in the optional annuity program is |
960
|
irrevocable as long as such employee continues to be employed in |
961
|
an eligible position and continues to meet the eligibility |
962
|
requirements set forth in this paragraph. |
963
|
5. Effective from July 1, 2002, through September 30, |
964
|
2002, any active employee in a regularly established position |
965
|
who has elected to participate in the Senior Management Service |
966
|
Optional Annuity Program has one opportunity to choose to move |
967
|
from the Senior Management Service Optional Annuity Program to |
968
|
the Florida Retirement System defined benefit program. |
969
|
a. The election must be made in writing and must be filed |
970
|
with the department and the personnel officer of the employer |
971
|
before October 1, 2002, or, in the case of an active employee |
972
|
who is on a leave of absence on July 1, 2002, within 90 days |
973
|
after the conclusion of the leave of absence. This election is |
974
|
irrevocable. |
975
|
b. The employee will receive service credit under the |
976
|
defined benefit program of the Florida Retirement System equal |
977
|
to his or her years of service under the Senior Management |
978
|
Service Optional Annuity Program. The cost for such credit shall |
979
|
be an amount representing the present value of that employee's |
980
|
accumulated benefit obligation for the affected period of |
981
|
service. |
982
|
c. The employee must transfer the total accumulated |
983
|
employer contributions and earnings on deposit in his or her |
984
|
Senior Management Service Optional Annuity Program account. If |
985
|
the transferred amount is not sufficient to pay the amount due, |
986
|
the employee must pay a sum representing the remainder of the |
987
|
amount due. In no case may the employee retain any employer |
988
|
contributions or earnings thereon from the Senior Management |
989
|
Service Optional Annuity Program account. |
990
|
(d) Contributions.-- |
991
|
1. Through June 30, 2001, each employer shall contribute |
992
|
on behalf of each participant in the Senior Management Service |
993
|
Optional Annuity Program an amount equal to the normal cost |
994
|
portion of the employer retirement contribution which would be |
995
|
required if the participant were a Senior Management Service |
996
|
Class member of the Florida Retirement System defined benefit |
997
|
program, plus the portion of the contribution rate required in |
998
|
s. 112.363(8) that would otherwise be assigned to the Retiree |
999
|
Health Insurance Subsidy Trust Fund. Effective July 1, 2001, |
1000
|
each employer shall contribute on behalf of each participant in |
1001
|
the optional program an amount equal to 12.49 percent of the |
1002
|
participant's gross monthly compensation. The division |
1003
|
departmentshall deduct an amount approved by the Legislature to |
1004
|
provide for the administration of this program. The payment of |
1005
|
the contributions to the optional program which is required by |
1006
|
this subparagraph for each participant shall be made by the |
1007
|
employer to the divisiondepartment, which shall forward the |
1008
|
contributions to the designated company or companies contracting |
1009
|
for payment of benefits for the participant under the program. |
1010
|
2. Each employer shall contribute on behalf of each |
1011
|
participant in the Senior Management Service Optional Annuity |
1012
|
Program an amount equal to the unfunded actuarial accrued |
1013
|
liability portion of the employer contribution which would be |
1014
|
required for members of the Senior Management Service Class in |
1015
|
the Florida Retirement System. This contribution shall be paid |
1016
|
to the divisiondepartmentfor transfer to the Florida |
1017
|
Retirement System Trust Fund. |
1018
|
3. An Optional Annuity Program Trust Fund shall be |
1019
|
established in the State Treasury and administered by the |
1020
|
divisiondepartmentto make payments to provider companies on |
1021
|
behalf of the optional annuity program participants, and to |
1022
|
transfer the unfunded liability portion of the state optional |
1023
|
annuity program contributions to the Florida Retirement System |
1024
|
Trust Fund. |
1025
|
4. Contributions required for social security by each |
1026
|
employer and each participant, in the amount required for social |
1027
|
security coverage as now or hereafter may be provided by the |
1028
|
federal Social Security Act shall be maintained for each |
1029
|
participant in the Senior Management Service retirement program |
1030
|
and shall be in addition to the retirement contributions |
1031
|
specified in this paragraph. |
1032
|
5. Each participant in the Senior Management Service |
1033
|
Optional Annuity Program may contribute by way of salary |
1034
|
reduction or deduction a percentage amount of the participant's |
1035
|
gross compensation not to exceed the percentage amount |
1036
|
contributed by the employer to the optional annuity program. |
1037
|
Payment of the participant's contributions shall be made by the |
1038
|
employer to the divisiondepartment, which shall forward the |
1039
|
contributions to the designated company or companies contracting |
1040
|
for payment of benefits for the participant under the program. |
1041
|
(f) Administration.-- |
1042
|
1. The Senior Management Service Optional Annuity Program |
1043
|
authorized by this section shall be administered by the division |
1044
|
department. The divisiondepartmentshall designate one or more |
1045
|
provider companies from which annuity contracts may be purchased |
1046
|
under the program and shall approve the form and content of the |
1047
|
contracts. The divisiondepartmentshall sign a contract with |
1048
|
each of the provider companies and shall evaluate the |
1049
|
performance of the provider companies on a continuing basis. The |
1050
|
divisiondepartmentmay terminate the services of a provider |
1051
|
company for reasons stated in the contract. The division |
1052
|
departmentshall adopt rules establishing its responsibilities |
1053
|
and the responsibilities of employers in administering the |
1054
|
optional annuity program. |
1055
|
2. Effective July 1, 1997, the State Board of |
1056
|
Administration shall review and make recommendations to the |
1057
|
divisiondepartmenton the acceptability of all investment |
1058
|
products proposed by provider companies of the optional annuity |
1059
|
program before such products are offered through annuity |
1060
|
contracts to the participants and may advise the division |
1061
|
departmentof any changes deemed necessary to ensure that the |
1062
|
optional annuity program offers an acceptable mix of investment |
1063
|
products. The divisiondepartmentshall make the final |
1064
|
determination as to whether an investment product will be |
1065
|
approved for the program. |
1066
|
3. The provisions of each contract applicable to a |
1067
|
participant in the Senior Management Service Optional Annuity |
1068
|
Program shall be contained in a written program description |
1069
|
which shall include a report of pertinent financial and |
1070
|
actuarial information on the solvency and actuarial soundness of |
1071
|
the program and the benefits applicable to the participant. Such |
1072
|
description shall be furnished by the company or companies to |
1073
|
each participant in the program and to the divisiondepartment |
1074
|
upon commencement of participation in the program and annually |
1075
|
thereafter. |
1076
|
4. The divisiondepartmentshall ensure that each |
1077
|
participant in the Senior Management Service Optional Annuity |
1078
|
Program is provided an accounting of the total contribution and |
1079
|
the annual contribution made by and on behalf of such |
1080
|
participants. |
1081
|
Section 28. Paragraph (h) of subsection (1) and paragraph |
1082
|
(e) of subsection (2) of section 121.081, Florida Statutes, are |
1083
|
amended to read: |
1084
|
121.081 Past service; prior service; |
1085
|
contributions.--Conditions under which past service or prior |
1086
|
service may be claimed and credited are: |
1087
|
(1) |
1088
|
(h) The following provisions apply to the purchase of past |
1089
|
service: |
1090
|
1. Notwithstanding any of the provisions of this |
1091
|
subsection, past-service credit may not be purchased under this |
1092
|
chapter for any service that is used to obtain a benefit from |
1093
|
any local retirement system. |
1094
|
2. A member may not receive past service credit under |
1095
|
paragraphs (a), (b), (e), or (f) for any leaves of absence |
1096
|
without pay, except that credit for active military service |
1097
|
leaves of absence may be claimed under paragraphs (a), (b), and |
1098
|
(f), in accordance with s. 121.111(1). |
1099
|
3. If a member does not desire to receive credit for all |
1100
|
of his or her past service, the period the member claims must be |
1101
|
the most recent past service prior to his or her participation |
1102
|
in the Florida Retirement System. |
1103
|
4. The cost of past service purchased by an employing |
1104
|
agency for its employees may be amortized over such period of |
1105
|
time as is provided in the agreement, but not to exceed 15 |
1106
|
years, calculated in accordance with rule 60S-1.007(5)(f), |
1107
|
Florida Administrative Code. |
1108
|
5. The retirement account of each member for whom past |
1109
|
service is being provided by his or her employer shall be |
1110
|
credited with all past service the employer agrees to purchase |
1111
|
as soon as the agreement between the employer and the division |
1112
|
departmentis executed. Pursuant thereto: |
1113
|
a. Each such member's account shall also be posted with |
1114
|
the total contribution his or her employer agrees to make in the |
1115
|
member's behalf for past service earned prior to October 1, |
1116
|
1975, excluding those contributions representing the employer's |
1117
|
matching share and the compound interest calculation on the |
1118
|
total contribution. However, a portion of any contributions paid |
1119
|
by an employer for past service credit earned on and after |
1120
|
October 1, 1975, may not be posted to a member's account. |
1121
|
b. A refund of contributions payable after an employer has |
1122
|
made a written agreement to purchase past service for employees |
1123
|
of the covered group shall include contributions for past |
1124
|
service which are posted to a member's account. However, |
1125
|
contributions for past service earned on and after October 1, |
1126
|
1975, are not refundable. |
1127
|
(2) Prior service, as defined in s. 121.021(19), may be |
1128
|
claimed as creditable service under the Florida Retirement |
1129
|
System after a member has been reemployed for 1 complete year of |
1130
|
creditable service within a period of 12 consecutive months, |
1131
|
except as provided in paragraph (c). Service performed as a |
1132
|
participant of the optional retirement program for the State |
1133
|
University System under s. 121.35 or the Senior Management |
1134
|
Service Optional Annuity Program under s. 121.055 may be used to |
1135
|
satisfy the reemployment requirement of 1 complete year of |
1136
|
creditable service. The member shall not be permitted to make |
1137
|
any contributions for prior service until after completion of |
1138
|
the 1 year of creditable service. If a member does not wish to |
1139
|
claim credit for all of his or her prior service, the service |
1140
|
the member claims must be the most recent period of service. The |
1141
|
required contributions for claiming the various types of prior |
1142
|
service are: |
1143
|
(e) For service performed under the Florida Retirement |
1144
|
System after December 1, 1970, that was never reported to the |
1145
|
division or the departmentdue to error, retirement credit may |
1146
|
be claimed by a member of the Florida Retirement System. The |
1147
|
divisiondepartmentshall adopt rules establishing criteria for |
1148
|
claiming such credit and detailing the documentation required to |
1149
|
substantiate the error. |
1150
|
Section 29. Subsection (1) of section 121.085, Florida |
1151
|
Statutes, is amended to read: |
1152
|
121.085 Creditable service.--The following provisions |
1153
|
shall apply to creditable service as defined in s. 121.021(17): |
1154
|
(1) The divisiondepartmentshall adopt rules establishing |
1155
|
procedures for the submission of evidence or information |
1156
|
necessary to establish a member's claim of creditable service. |
1157
|
Section 30. Section 121.091, Florida Statutes, is amended |
1158
|
to read: |
1159
|
121.091 Benefits payable under the system.--Benefits may |
1160
|
not be paid under this section unless the member has terminated |
1161
|
employment as provided in s. 121.021(39)(a) or begun |
1162
|
participation in the Deferred Retirement Option Program as |
1163
|
provided in subsection (13), and a proper application has been |
1164
|
filed in the manner prescribed by the divisiondepartment. The |
1165
|
divisiondepartmentmay cancel an application for retirement |
1166
|
benefits when the member or beneficiary fails to timely provide |
1167
|
the information and documents required by this chapter and the |
1168
|
division'sdepartment's rules. The divisiondepartmentshall |
1169
|
adopt rules establishing procedures for application for |
1170
|
retirement benefits and for the cancellation of such application |
1171
|
when the required information or documents are not received. |
1172
|
(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her |
1173
|
normal retirement date, the member, upon application to the |
1174
|
administrator, shall receive a monthly benefit which shall begin |
1175
|
to accrue on the first day of the month of retirement and be |
1176
|
payable on the last day of that month and each month thereafter |
1177
|
during his or her lifetime. The normal retirement benefit, |
1178
|
including any past or additional retirement credit, may not |
1179
|
exceed 100 percent of the average final compensation. The amount |
1180
|
of monthly benefit shall be calculated as the product of A and |
1181
|
B, subject to the adjustment of C, if applicable, as set forth |
1182
|
below: |
1183
|
(a)1. For creditable years of Regular Class service, A is |
1184
|
1.60 percent of the member's average final compensation, up to |
1185
|
the member's normal retirement date. Upon completion of the |
1186
|
first year after the normal retirement date, A is 1.63 percent |
1187
|
of the member's average final compensation. Following the second |
1188
|
year after the normal retirement date, A is 1.65 percent of the |
1189
|
member's average final compensation. Following the third year |
1190
|
after the normal retirement date, and for subsequent years, A is |
1191
|
1.68 percent of the member's average final compensation. |
1192
|
2. For creditable years of special risk service, A is: |
1193
|
a. Two percent of the member's average final compensation |
1194
|
for all creditable years prior to October 1, 1974; |
1195
|
b. Three percent of the member's average final |
1196
|
compensation for all creditable years after September 30, 1974, |
1197
|
and before October 1, 1978; |
1198
|
c. Two percent of the member's average final compensation |
1199
|
for all creditable years after September 30, 1978, and before |
1200
|
January 1, 1989; |
1201
|
d. Two and two-tenths percent of the member's final |
1202
|
monthly compensation for all creditable years after December 31, |
1203
|
1988, and before January 1, 1990; |
1204
|
e. Two and four-tenths percent of the member's average |
1205
|
final compensation for all creditable years after December 31, |
1206
|
1989, and before January 1, 1991; |
1207
|
f. Two and six-tenths percent of the member's average |
1208
|
final compensation for all creditable years after December 31, |
1209
|
1990, and before January 1, 1992; |
1210
|
g. Two and eight-tenths percent of the member's average |
1211
|
final compensation for all creditable years after December 31, |
1212
|
1991, and before January 1, 1993; |
1213
|
h. Three percent of the member's average final |
1214
|
compensation for all creditable years after December 31, 1992; |
1215
|
and |
1216
|
i. Three percent of the member's average final |
1217
|
compensation for all creditable years of service after September |
1218
|
30, 1978, and before January 1, 1993, for any special risk |
1219
|
member who retires after July 1, 2000, or any member of the |
1220
|
Special Risk Administrative Support Class entitled to retain the |
1221
|
special risk normal retirement date who was a member of the |
1222
|
Special Risk Class during the time period and who retires after |
1223
|
July 1, 2000. |
1224
|
3. For creditable years of Senior Management Service Class |
1225
|
service after January 31, 1987, A is 2 percent; |
1226
|
4. For creditable years of Elected Officers' Class service |
1227
|
as a Supreme Court Justice, district court of appeal judge, |
1228
|
circuit judge, or county court judge, A is 31/3 percent of the |
1229
|
member's average final compensation, and for all other |
1230
|
creditable service in such class, A is 3 percent of average |
1231
|
final compensation; |
1232
|
(b) B is the number of the member's years and any |
1233
|
fractional part of a year of creditable service earned |
1234
|
subsequent to November 30, 1970; and |
1235
|
(c) C is the normal retirement benefit credit brought |
1236
|
forward as of November 30, 1970, by a former member of an |
1237
|
existing system. Such normal retirement benefit credit shall be |
1238
|
determined as the product of X and Y when X is the percentage of |
1239
|
average final compensation which the member would have been |
1240
|
eligible to receive if the member had attained his or her normal |
1241
|
retirement date as of November 30, 1970, all in accordance with |
1242
|
the existing system under which the member is covered on |
1243
|
November 30, 1970, and Y is average final compensation as |
1244
|
defined in s. 121.021(25). However, any member of an existing |
1245
|
retirement system who is eligible to retire and who does retire, |
1246
|
become disabled, or die prior to April 15, 1971, may have his or |
1247
|
her retirement benefits calculated on the basis of the best 5 of |
1248
|
the last 10 years of service. |
1249
|
(d) A member's average final compensation shall be |
1250
|
determined by formula to obtain the coverage for the 5 highest |
1251
|
fiscal years' salaries, calculated as provided by rule. |
1252
|
(2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If |
1253
|
a member accumulates retirement benefits to commence at |
1254
|
different normal retirement ages by virtue of having performed |
1255
|
duties for an employer which would entitle him or her to |
1256
|
benefits as both a member of the Special Risk Class and a member |
1257
|
of either the Regular Class, Senior Management Service Class, or |
1258
|
Elected Officers' Class, the amount of benefits payable shall be |
1259
|
computed separately with respect to each such age and the sum of |
1260
|
such computed amounts shall be paid as provided in this section. |
1261
|
(3) EARLY RETIREMENT BENEFIT.--Upon retirement on his or |
1262
|
her early retirement date, the member shall receive an immediate |
1263
|
monthly benefit that shall begin to accrue on the first day of |
1264
|
the month of the retirement date and be payable on the last day |
1265
|
of that month and each month thereafter during his or her |
1266
|
lifetime. Such benefit shall be calculated as follows: |
1267
|
(a) The amount of each monthly payment shall be computed |
1268
|
in the same manner as for a normal retirement benefit, in |
1269
|
accordance with subsection (1), but shall be based on the |
1270
|
member's average monthly compensation and creditable service as |
1271
|
of the member's early retirement date. The benefit so computed |
1272
|
shall be reduced by five-twelfths of 1 percent for each complete |
1273
|
month by which the early retirement date precedes the normal |
1274
|
retirement date of age 62 for a member of the Regular Class, |
1275
|
Senior Management Service Class, or the Elected Officers' Class, |
1276
|
and age 55 for a member of the Special Risk Class, or age 52 if |
1277
|
a Special Risk member has completed 25 years of creditable |
1278
|
service in accordance with s. 121.021(29)(b)3. |
1279
|
(b) If the employment of a member is terminated by reason |
1280
|
of death subsequent to the completion of 20 years of creditable |
1281
|
service, the monthly benefit payable to the member's beneficiary |
1282
|
shall be calculated in accordance with subsection (1), but shall |
1283
|
be based on average monthly compensation and creditable service |
1284
|
as of the date of death. The benefit so computed shall be |
1285
|
reduced by five-twelfths of 1 percent for each complete month by |
1286
|
which death precedes the normal retirement date specified above |
1287
|
or the date on which the member would have attained 30 years of |
1288
|
creditable service had he or she survived and continued his or |
1289
|
her employment, whichever provides a higher benefit. |
1290
|
(4) DISABILITY RETIREMENT BENEFIT.-- |
1291
|
(a) Disability retirement; entitlement and effective |
1292
|
date.-- |
1293
|
1.a. A member who becomes totally and permanently |
1294
|
disabled, as defined in paragraph (b), after completing 5 years |
1295
|
of creditable service, or a member who becomes totally and |
1296
|
permanently disabled in the line of duty regardless of service, |
1297
|
shall be entitled to a monthly disability benefit; except that |
1298
|
any member with less than 5 years of creditable service on July |
1299
|
1, 1980, or any person who becomes a member of the Florida |
1300
|
Retirement System on or after such date must have completed 10 |
1301
|
years of creditable service prior to becoming totally and |
1302
|
permanently disabled in order to receive disability retirement |
1303
|
benefits for any disability which occurs other than in the line |
1304
|
of duty. However, if a member employed on July 1, 1980, with |
1305
|
less than 5 years of creditable service as of that date, becomes |
1306
|
totally and permanently disabled after completing 5 years of |
1307
|
creditable service and is found not to have attained fully |
1308
|
insured status for benefits under the federal Social Security |
1309
|
Act, such member shall be entitled to a monthly disability |
1310
|
benefit. |
1311
|
b. Effective July 1, 2001, a member of the defined benefit |
1312
|
retirement program who becomes totally and permanently disabled, |
1313
|
as defined in paragraph (b), after completing 8 years of |
1314
|
creditable service, or a member who becomes totally and |
1315
|
permanently disabled in the line of duty regardless of service, |
1316
|
shall be entitled to a monthly disability benefit. |
1317
|
2. If the division has received from the employer the |
1318
|
required documentation of the member's termination of |
1319
|
employment, the effective retirement date for a member who |
1320
|
applies and is approved for disability retirement shall be |
1321
|
established by rule of the division. |
1322
|
3. For a member who is receiving Workers' Compensation |
1323
|
payments, the effective disability retirement date may not |
1324
|
precede the date the member reaches Maximum Medical Improvement |
1325
|
(MMI), unless the member terminates employment prior to reaching |
1326
|
MMI. |
1327
|
(b) Total and permanent disability.--A member shall be |
1328
|
considered totally and permanently disabled if, in the opinion |
1329
|
of the administrator, he or she is prevented, by reason of a |
1330
|
medically determinable physical or mental impairment, from |
1331
|
rendering useful and efficient service as an officer or |
1332
|
employee. |
1333
|
(c) Proof of disability.--The administrator, before |
1334
|
approving payment of any disability retirement benefit, shall |
1335
|
require proof that the member is totally and permanently |
1336
|
disabled as provided herein: |
1337
|
1. Such proof shall include the certification of the |
1338
|
member's total and permanent disability by two licensed |
1339
|
physicians of the state and such other evidence of disability as |
1340
|
the administrator may require, including reports from vocational |
1341
|
rehabilitation, evaluation, or testing specialists who have |
1342
|
evaluated the applicant for employment. |
1343
|
2. It must be documented that: |
1344
|
a. The member's medical condition occurred or became |
1345
|
symptomatic during the time the member was employed in an |
1346
|
employee/employer relationship with his or her employer; |
1347
|
b. The member was totally and permanently disabled at the |
1348
|
time he or she terminated covered employment; and |
1349
|
c. The member has not been employed with any other |
1350
|
employer after such termination. |
1351
|
3. If the application is for in-line-of-duty disability, |
1352
|
in addition to the requirements of subparagraph 2., it must be |
1353
|
documented by competent medical evidence that the disability was |
1354
|
caused by a job-related illness or accident which occurred while |
1355
|
the member was in an employee/employer relationship with his or |
1356
|
her employer. |
1357
|
4. The unavailability of an employment position that the |
1358
|
member is physically and mentally capable of performing will not |
1359
|
be considered as proof of total and permanent disability. |
1360
|
(d) Election on appeal.--A member whose application for |
1361
|
regular disability retirement has been denied and who has filed |
1362
|
an appeal to the State Retirement Commission may, if eligible, |
1363
|
elect to receive normal or early service retirement benefits |
1364
|
while he or she is awaiting the decision on the appeal. However: |
1365
|
1. If the member elects to receive service retirement |
1366
|
benefits and disability benefits are later approved as a result |
1367
|
of the appeal, the payment option chosen by the member may not |
1368
|
be changed. |
1369
|
2. If the member elects to receive early service |
1370
|
retirement and the appeal is later denied, the member may not |
1371
|
change his or her election of early retirement. |
1372
|
|
1373
|
Before such regular or early retirement benefits may be paid by |
1374
|
the division, the member must provide to the division a written |
1375
|
statement indicating that the member understands that such |
1376
|
changes are not permitted after he or she begins receiving the |
1377
|
benefits. |
1378
|
(e) Disability retirement benefit.--Upon the retirement of |
1379
|
a member on his or her disability retirement date, the member |
1380
|
shall receive a monthly benefit that shall begin to accrue on |
1381
|
the first day of the month of disability retirement and shall be |
1382
|
payable on the last day of that month and each month thereafter |
1383
|
during his or her lifetime and continued disability. |
1384
|
(f) Computation of disability retirement benefit.--The |
1385
|
amount of each monthly payment shall be computed in the same |
1386
|
manner as for a normal retirement benefit, in accordance with |
1387
|
subsection (1), but shall be based on disability option |
1388
|
actuarial equivalency tables and the average monthly |
1389
|
compensation and creditable service of the member as of the |
1390
|
disability retirement date, subject to the following conditions: |
1391
|
1. If the member's disability occurred in the line of |
1392
|
duty, the monthly Option 1 benefit shall not be less than: |
1393
|
a. Forty-two percent of average monthly compensation as of |
1394
|
the disability retirement date; or |
1395
|
b. Sixty-five percent of the average monthly compensation |
1396
|
as of the disability retirement date for a member of the special |
1397
|
risk class who retires on or after July 1, 2000; or |
1398
|
2. If the member's disability occurred other than in the |
1399
|
line of duty, the monthly Option 1 benefit shall not be less |
1400
|
than 25 percent of average monthly compensation as of the |
1401
|
disability retirement date. |
1402
|
(g) Reapplication.--A member, whose initial application |
1403
|
for disability retirement has been denied, may reapply for |
1404
|
disability benefits. However, such member's reapplication will |
1405
|
be considered only if the member presents new medical evidence |
1406
|
of a medical condition that existed prior to the member's |
1407
|
termination of employment. The division may prescribe by rule |
1408
|
procedures for reapplication and for review and approval or |
1409
|
disapproval of reapplication. |
1410
|
(h) Recovery from disability.--The administrator may |
1411
|
require periodic reexaminations at the expense of the retirement |
1412
|
fund. The division may adopt rules establishing procedures for |
1413
|
conducting and review of such reexaminations. |
1414
|
1. If the administrator finds that a member who is |
1415
|
receiving disability benefits is, at any time prior to his or |
1416
|
her normal retirement date, no longer disabled, the |
1417
|
administrator shall direct that the benefits be discontinued. |
1418
|
The decision of the administrator on this question shall be |
1419
|
final and binding. If such member: |
1420
|
a. Does not reenter the employ of an employer and was not |
1421
|
vested as of the disability retirement date, he or she shall be |
1422
|
entitled to the excess, if any, of his or her accumulated |
1423
|
contributions over the total disability benefits received up to |
1424
|
the date of recovery. |
1425
|
b. Does not reenter the employ of an employer, but was |
1426
|
vested as of the disability retirement date, he or she may elect |
1427
|
to receive: |
1428
|
(I) The excess, if any, of his or her accumulated |
1429
|
contributions over the total disability benefits received up to |
1430
|
the date of recovery; or |
1431
|
(II) A deferred benefit commencing on the last day of the |
1432
|
month of the normal retirement date which shall be payable on |
1433
|
the last day of the month thereafter during his or her lifetime. |
1434
|
The amount of such monthly benefit shall be computed in the same |
1435
|
manner as for a normal retirement benefit, in accordance with |
1436
|
subsection (1), but shall be based on average monthly |
1437
|
compensation and creditable service as of the member's |
1438
|
disability retirement date. |
1439
|
c. Reenters employment of an employer within 6 months |
1440
|
after recovery, the member's service will be deemed to have been |
1441
|
continuous, but the period beginning with the first month for |
1442
|
which he or she received a disability benefit payment and ending |
1443
|
with the date he or she reentered employment will not be |
1444
|
considered as creditable service for the purpose of computing |
1445
|
benefits except as provided in sub-subparagraph d. As used in |
1446
|
this section, the term "accumulated contributions" for such |
1447
|
member means the excess of the member's accumulated |
1448
|
contributions as of the disability retirement date over the |
1449
|
total disability benefits received under paragraph (e). |
1450
|
d. Terminates his or her disability benefit, reenters |
1451
|
covered employment, and is continuously employed for a minimum |
1452
|
of 1 year of creditable service, he or she may claim as |
1453
|
creditable service the months during which he or she was |
1454
|
receiving a disability benefit, upon payment of the required |
1455
|
contributions. Contributions shall equal the total required |
1456
|
employee and employer contribution rate applicable during the |
1457
|
period the retiree received retirement benefits, multiplied |
1458
|
times his or her rate of monthly compensation prior to the |
1459
|
commencement of disability retirement for each month of the |
1460
|
period claimed, plus 4 percent interest until July 1, 1975, and |
1461
|
6.5 percent interest thereafter, compounded annually each June |
1462
|
30 to the date of payment. If the member does not claim credit |
1463
|
for all of the months he or she received disability benefits, |
1464
|
the months claimed must be the most recent months of retirement. |
1465
|
Such credit for periods of disability, when purchased under the |
1466
|
Florida Retirement System, shall apply toward vesting |
1467
|
requirements for eligibility to purchase additional credit for |
1468
|
other service. |
1469
|
2. Both the member receiving disability benefits who |
1470
|
reenters employment and the employer employing such disability |
1471
|
retiree shall notify the division immediately upon reemployment, |
1472
|
and the division shall terminate such member's disability |
1473
|
benefits, effective the first day of the month following the |
1474
|
month in which notification of recovery is received. If the |
1475
|
member is reemployed with a Florida Retirement System employer |
1476
|
at the time of benefit termination, and he or she has received |
1477
|
disability retirement benefit and salary payments concurrently |
1478
|
prior to notifying the division, he or she may elect within 30 |
1479
|
days to: |
1480
|
a. Retain the retirement benefits received prior to |
1481
|
termination of disability benefits and begin receiving |
1482
|
retirement service credit effective upon the date of termination |
1483
|
of benefits; or |
1484
|
b. Repay, within 12 months after his or her decision to |
1485
|
receive service credit, the retirement benefits received for |
1486
|
each month of reemployment prior to termination of disability |
1487
|
benefits and begin receiving retirement service credit effective |
1488
|
upon the date of reemployment. Any such unpaid benefits shall |
1489
|
have compound interest of 6.5 percent added June 30. |
1490
|
|
1491
|
A member may not receive both retirement service credit for |
1492
|
employment and retirement benefits for the same month. |
1493
|
3. If, after recovery of disability and reentry into |
1494
|
covered employment, the member again becomes disabled and is |
1495
|
again approved for disability retirement, the Option 1 monthly |
1496
|
retirement benefit shall not be less than the Option 1 monthly |
1497
|
benefit calculated at the time of the previous disability, plus |
1498
|
any cost of living increases up to the time the disability |
1499
|
benefit was terminated upon his or her reentry into covered |
1500
|
employment. |
1501
|
(i) Nonadmissible causes of disability.--A member shall |
1502
|
not be entitled to receive any disability retirement benefit if |
1503
|
the disability is a result of any of the following: |
1504
|
1. Injury or disease sustained by the member while |
1505
|
willfully participating in a riot, civil insurrection, or other |
1506
|
act of violence or while committing a felony; |
1507
|
2. Injury or disease sustained by the member after his or |
1508
|
her employment has terminated; or |
1509
|
3. Intentional, self-inflicted injury. |
1510
|
(j) Disability retirement of justice or judge by order of |
1511
|
Supreme Court.-- |
1512
|
1. If a member is a justice of the Supreme Court, judge of |
1513
|
a district court of appeal, circuit judge, or judge of a county |
1514
|
court who has served for 6 years or more as an elected |
1515
|
constitutional judicial officer, including service as a judicial |
1516
|
officer in any court abolished pursuant to Art. V of the State |
1517
|
Constitution, and who is retired for disability by order of the |
1518
|
Supreme Court upon recommendation of the Judicial Qualifications |
1519
|
Commission pursuant to the provisions of Art. V of the State |
1520
|
Constitution, the member's Option 1 monthly benefit as provided |
1521
|
in subparagraph (6)(a)1. shall not be less than two-thirds of |
1522
|
his or her monthly compensation as of the member's disability |
1523
|
retirement date. Such a member may alternatively elect to |
1524
|
receive a disability retirement benefit under any other option |
1525
|
as provided in paragraph (6)(a). |
1526
|
2. Should any justice or judge who is a member of the |
1527
|
Florida Retirement System be retired for disability by order of |
1528
|
the Supreme Court upon recommendation of the Judicial |
1529
|
Qualifications Commission pursuant to the provisions of Art. V |
1530
|
of the State Constitution, then all contributions to his or her |
1531
|
account and all contributions made on his or her behalf by the |
1532
|
employer shall be transferred to and deposited in the General |
1533
|
Revenue Fund of the state, and there is hereby appropriated |
1534
|
annually out of the General Revenue Fund, to be paid into the |
1535
|
Florida Retirement System Fund, an amount necessary to pay the |
1536
|
benefits of all justices and judges retired from the Florida |
1537
|
Retirement System pursuant to Art. V of the State Constitution. |
1538
|
(5) TERMINATION BENEFITS.--A member whose employment is |
1539
|
terminated prior to retirement retains membership rights to |
1540
|
previously earned member-noncontributory service credit, and to |
1541
|
member-contributory service credit, if the member leaves the |
1542
|
member contributions on deposit in his or her retirement |
1543
|
account. If a terminated member receives a refund of member |
1544
|
contributions, such member may reinstate membership rights to |
1545
|
the previously earned service credit represented by the refund |
1546
|
by completing 1 year of creditable service and repaying the |
1547
|
refunded member contributions, plus interest. |
1548
|
(a) A member whose employment is terminated for any reason |
1549
|
other than death or retirement prior to becoming vested is |
1550
|
entitled to the return of his or her accumulated contributions |
1551
|
as of the date of termination. |
1552
|
(b) A member whose employment is terminated for any reason |
1553
|
other than death or retirement after becoming vested may elect |
1554
|
to receive a deferred monthly benefit which shall begin to |
1555
|
accrue on the first day of the month of normal or early |
1556
|
retirement and shall be payable on the last day of that month |
1557
|
and each month thereafter during his or her lifetime. The amount |
1558
|
of monthly benefit shall be computed in the same manner as for a |
1559
|
normal retirement benefit in accordance with subsection (1) or |
1560
|
early retirement benefit in accordance with s. 121.021(30), but |
1561
|
based on average monthly compensation and creditable service as |
1562
|
of the date of termination. |
1563
|
(c) In lieu of the deferred monthly benefit provided in |
1564
|
paragraph (b), the terminated member may elect to receive a |
1565
|
lump-sum amount equal to his or her accumulated contributions as |
1566
|
of the date of termination. |
1567
|
(d) If any retired member dies without having received in |
1568
|
benefit payments an amount equal to his or her accumulated |
1569
|
contributions, there shall be payable to his or her designated |
1570
|
beneficiary an amount equal to the excess, if any, of the |
1571
|
member's accumulated contributions over the total monthly |
1572
|
payments made to the member prior to the date of death. |
1573
|
(e) A member shall be deemed a terminated member when |
1574
|
termination of employment has occurred as provided in s. |
1575
|
121.021(39). |
1576
|
(f) Any member who has been found guilty by a verdict of a |
1577
|
jury, or by the court trying the case without a jury, of |
1578
|
committing, aiding, or abetting any embezzlement or theft from |
1579
|
his or her employer, bribery in connection with the employment, |
1580
|
or other felony specified in chapter 838, except ss. 838.15 and |
1581
|
838.16, committed prior to retirement, or who has entered a plea |
1582
|
of guilty or of nolo contendere to such crime, or any member |
1583
|
whose employment is terminated by reason of the member's |
1584
|
admitted commitment, aiding, or abetting of an embezzlement or |
1585
|
theft from his or her employer, bribery, or other felony |
1586
|
specified in chapter 838, except ss. 838.15 and 838.16, shall |
1587
|
forfeit all rights and benefits under this chapter, except the |
1588
|
return of his or her accumulated contributions as of the date of |
1589
|
termination. |
1590
|
(g) Any elected official who is convicted by the Senate of |
1591
|
an impeachable offense shall forfeit all rights and benefits |
1592
|
under this chapter, except the return of his or her accumulated |
1593
|
contributions as of the date of the conviction. |
1594
|
(h) Any member who, prior to retirement, is adjudged by a |
1595
|
court of competent jurisdiction to have violated any state law |
1596
|
against strikes by public employees, or who has been found |
1597
|
guilty by such court of violating any state law prohibiting |
1598
|
strikes by public employees, shall forfeit all rights and |
1599
|
benefits under this chapter, except the return of his or her |
1600
|
accumulated contributions as of the date of the conviction. |
1601
|
(i) Any beneficiary who by a verdict of a jury or by the |
1602
|
court trying the case without a jury is found guilty, or who has |
1603
|
entered a plea of guilty or nolo contendere, of unlawfully and |
1604
|
intentionally killing or procuring the death of the member |
1605
|
forfeits all rights to the deceased member's benefits under this |
1606
|
chapter, and the benefits will be paid as if such beneficiary |
1607
|
had predeceased the decedent. |
1608
|
(j) Benefits shall not be paid by the division pending |
1609
|
final resolution of such charges against a member or beneficiary |
1610
|
if the resolution of such charges could require the forfeiture |
1611
|
of benefits as provided in paragraph (f), paragraph (g), |
1612
|
paragraph (h), or paragraph (i). |
1613
|
(6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY |
1614
|
RETIREMENT BENEFITS.-- |
1615
|
(a) Prior to the receipt of the first monthly retirement |
1616
|
payment, a member shall elect to receive the retirement benefits |
1617
|
to which he or she is entitled under subsection (1), subsection |
1618
|
(2), subsection (3), or subsection (4) in accordance with one of |
1619
|
the following options: |
1620
|
1. The maximum retirement benefit payable to the member |
1621
|
during his or her lifetime. |
1622
|
2. A decreased retirement benefit payable to the member |
1623
|
during his or her lifetime and, in the event of his or her death |
1624
|
within a period of 10 years after retirement, the same monthly |
1625
|
amount payable for the balance of such 10-year period to his or |
1626
|
her beneficiary or, in case the beneficiary is deceased, in |
1627
|
accordance with subsection (8) as though no beneficiary had been |
1628
|
named. |
1629
|
3. A decreased retirement benefit payable during the joint |
1630
|
lifetime of both the member and his or her joint annuitant and |
1631
|
which, after the death of either, shall continue during the |
1632
|
lifetime of the survivor in the same amount, subject to the |
1633
|
provisions of subsection (12). |
1634
|
4. A decreased retirement benefit payable during the joint |
1635
|
lifetime of the member and his or her joint annuitant and which, |
1636
|
after the death of either, shall continue during the lifetime of |
1637
|
the survivor in an amount equal to 662/3 percent of the amount |
1638
|
that was payable during the joint lifetime of the member and his |
1639
|
or her joint annuitant, subject to the provisions of subsection |
1640
|
(12). |
1641
|
|
1642
|
The spouse of any member who elects to receive the benefit |
1643
|
provided under subparagraph 1. or subparagraph 2. shall be |
1644
|
notified of and shall acknowledge any such election. The |
1645
|
division shall establish by rule a method for selecting the |
1646
|
appropriate actuarial factor for optional forms of benefits |
1647
|
selected under subparagraphs 3. and 4., based on the age of the |
1648
|
member and the joint annuitant. |
1649
|
(b) The benefit payable under any option stated above |
1650
|
shall be the actuarial equivalent, based on tables adopted by |
1651
|
the administrator for this purpose, of the amount to which the |
1652
|
member was otherwise entitled. |
1653
|
(c) A member who elects the option in subparagraph (a)2. |
1654
|
shall, in accordance with subsection (8), designate one or more |
1655
|
persons to receive the benefits payable in the event of his or |
1656
|
her death. Such persons shall be the beneficiaries of the |
1657
|
member. The member may also designate one or more contingent |
1658
|
beneficiaries to receive any benefits remaining upon the death |
1659
|
of the primary beneficiary. |
1660
|
(d) A member who elects the option in subparagraph (a)3. |
1661
|
or subparagraph (a)4. shall, on a form provided for that |
1662
|
purpose, designate a joint annuitant to receive the benefits |
1663
|
which continue to be payable upon the death of the member. After |
1664
|
benefits have commenced under the option in subparagraph (a)3. |
1665
|
or subparagraph (a)4., the following shall apply: |
1666
|
1. A retired member may change his or her designation of a |
1667
|
joint annuitant only twice. If such a retired member desires to |
1668
|
change his or her designation of a joint annuitant, he or she |
1669
|
shall file with the division a notarized "change of joint |
1670
|
annuitant" form and shall notify the former joint annuitant in |
1671
|
writing of such change. Effective the first day of the next |
1672
|
month following receipt by the division of a completed change of |
1673
|
joint annuitant form, the division shall adjust the member's |
1674
|
monthly benefit by the application of actuarial tables and |
1675
|
calculations developed to ensure that the benefit paid is the |
1676
|
actuarial equivalent of the present value of the member's |
1677
|
current benefit. The consent of a retired member's first |
1678
|
designated joint annuitant to any such change shall not be |
1679
|
required. However, if either the member or the joint annuitant |
1680
|
dies before the effective date of the request for change of |
1681
|
joint annuitant, the requested change shall be void, and |
1682
|
survivor benefits, if any, shall be paid as if no request had |
1683
|
been made. |
1684
|
2. In the event of the dissolution of marriage of a |
1685
|
retired member and a joint annuitant, such member may make an |
1686
|
election to nullify the joint annuitant designation of the |
1687
|
former spouse, unless there is an existing qualified domestic |
1688
|
relations order preventing such action. The member shall file |
1689
|
with the division a written, notarized nullification which shall |
1690
|
be effective on the first day of the next month following |
1691
|
receipt by the division. Benefits shall be paid as if the former |
1692
|
spouse predeceased the member. A member who makes such an |
1693
|
election may not reverse the nullification but may designate a |
1694
|
new joint annuitant in accordance with subparagraph 1. |
1695
|
(e) The election of an option shall be null and void if |
1696
|
the member dies before the effective date of retirement. |
1697
|
(f) A member who elects to receive benefits under the |
1698
|
option in subparagraph (a)3. may designate one or more qualified |
1699
|
persons, either a spouse or other dependent, as his or her joint |
1700
|
annuitant to receive the benefits after the member's death in |
1701
|
whatever proportion he or she so assigns to each person named as |
1702
|
joint annuitant. The division shall adopt appropriate actuarial |
1703
|
tables and calculations necessary to ensure that the benefit |
1704
|
paid is the actuarial equivalent of the benefit to which the |
1705
|
member is otherwise entitled under the option in subparagraph |
1706
|
(a)1. |
1707
|
(g) Upon the death of a retired member or beneficiary |
1708
|
receiving monthly benefits under this chapter, the monthly |
1709
|
benefits shall be paid through the last day of the month of |
1710
|
death and shall terminate, or be adjusted, if applicable, as of |
1711
|
that date in accordance with the optional form of benefit |
1712
|
selected at the time of retirement. |
1713
|
(h) The option selected or determined for payment of |
1714
|
benefits as provided in this section shall be final and |
1715
|
irrevocable at the time a benefit payment is cashed or deposited |
1716
|
or credited to the Deferred Retirement Option Program as |
1717
|
provided in subsection (13). |
1718
|
(7) DEATH BENEFITS.-- |
1719
|
(a) If the employment of a member is terminated by reason |
1720
|
of his or her death prior to being vested, except as provided in |
1721
|
paragraph (f), there shall be payable to his or her designated |
1722
|
beneficiary the member's accumulated contributions. |
1723
|
(b) If the employment of an active member who may or may |
1724
|
not have applied for retirement is terminated by reason of his |
1725
|
or her death subsequent to becoming vested and prior to his or |
1726
|
her effective date of retirement, if established, it shall be |
1727
|
assumed that the member retired as of the date of death in |
1728
|
accordance with subsection (1) if eligible for normal retirement |
1729
|
benefits, subsection (2) if eligible for benefits payable for |
1730
|
dual normal retirement, or subsection (3) if eligible for early |
1731
|
retirement benefits. Benefits payable to the designated |
1732
|
beneficiary shall be as follows: |
1733
|
1. For a beneficiary who qualifies as a joint annuitant, |
1734
|
the optional form of payment provided in accordance with |
1735
|
subparagraph (6)(a)3. shall be paid for the joint annuitant's |
1736
|
lifetime. |
1737
|
2. For a beneficiary who does not qualify as a joint |
1738
|
annuitant, no continuing monthly benefit shall be paid and the |
1739
|
beneficiary shall be entitled only to the return of the member's |
1740
|
personal contributions. If there is no monetary interest in the |
1741
|
member's retirement account for which such beneficiary is |
1742
|
eligible, the beneficiary shall be the next named beneficiary |
1743
|
or, if no other beneficiary is named, the beneficiary shall be |
1744
|
the next eligible beneficiary according to subsection (8). |
1745
|
(c) If a retiring member dies on or after the effective |
1746
|
date of retirement, but prior to a benefit payment being cashed |
1747
|
or deposited, or credited to the Deferred Retirement Option |
1748
|
Program, benefits shall be paid as follows: |
1749
|
1. For a designated beneficiary who qualifies as a joint |
1750
|
annuitant, benefits shall be paid in the optional form of |
1751
|
payment provided in subparagraph (6)(a)3. for the joint |
1752
|
annuitant's lifetime or, if the member chose the optional form |
1753
|
of payment provided in subparagraph (6)(a)2., the joint |
1754
|
annuitant may select the form provided in either subparagraph |
1755
|
(6)(a)2. or subparagraph (6)(a)3. |
1756
|
2. For a designated beneficiary who does not qualify as a |
1757
|
joint annuitant, any benefits payable shall be paid as provided |
1758
|
in the option selected by the member; or if the member has not |
1759
|
selected an option, benefits shall be paid in the optional form |
1760
|
of payment provided in subparagraph (6)(a)1. |
1761
|
(d) Notwithstanding any other provision in this chapter to |
1762
|
the contrary, with the exception of the Deferred Retirement |
1763
|
Option Program, as provided in subsection (13): |
1764
|
1. The surviving spouse of any member killed in the line |
1765
|
of duty may receive a monthly pension equal to one-half of the |
1766
|
monthly salary being received by the member at the time of death |
1767
|
for the rest of the surviving spouse's lifetime or, if the |
1768
|
member was vested, such surviving spouse may elect to receive a |
1769
|
benefit as provided in paragraph (b). Benefits provided by this |
1770
|
paragraph shall supersede any other distribution that may have |
1771
|
been provided by the member's designation of beneficiary. |
1772
|
2. If the surviving spouse of a member killed in the line |
1773
|
of duty dies, the monthly payments which would have been payable |
1774
|
to such surviving spouse had such surviving spouse lived shall |
1775
|
be paid for the use and benefit of such member's child or |
1776
|
children under 18 years of age and unmarried until the 18th |
1777
|
birthday of the member's youngest child. |
1778
|
3. If a member killed in the line of duty leaves no |
1779
|
surviving spouse but is survived by a child or children under 18 |
1780
|
years of age, the benefits provided by subparagraph 1., normally |
1781
|
payable to a surviving spouse, shall be paid for the use and |
1782
|
benefit of such member's child or children under 18 years of age |
1783
|
and unmarried until the 18th birthday of the member's youngest |
1784
|
child. |
1785
|
4. The surviving spouse of a member whose benefit |
1786
|
terminated because of remarriage shall have the benefit |
1787
|
reinstated beginning July 1, 1993, at an amount that would have |
1788
|
been payable had the benefit not been terminated. |
1789
|
(e) The surviving spouse or other dependent of any member, |
1790
|
except a member who participated in the Deferred Retirement |
1791
|
Option Program, whose employment is terminated by death shall, |
1792
|
upon application to the administrator, be permitted to pay the |
1793
|
required contributions for any service performed by the member |
1794
|
which could have been claimed by the member at the time of his |
1795
|
or her death. Such service shall be added to the creditable |
1796
|
service of the member and shall be used in the calculation of |
1797
|
any benefits which may be payable to the surviving spouse or |
1798
|
other surviving dependent. |
1799
|
(f) Notwithstanding any other provisions in this chapter |
1800
|
to the contrary and upon application to the administrator, an |
1801
|
eligible joint annuitant, of a member whose employment is |
1802
|
terminated by death within 1 year of such member satisfying the |
1803
|
service requirements for vesting and retirement eligibility, |
1804
|
shall be permitted to purchase only the additional service |
1805
|
credit necessary to vest and qualify for retirement benefits, |
1806
|
not to exceed a total of 1 year of credit, by one or a |
1807
|
combination of the following methods: |
1808
|
1. Such eligible joint annuitant may use the deceased |
1809
|
member's accumulated hours of annual, sick, and compensatory |
1810
|
leave to purchase additional creditable service, on an hour by |
1811
|
hour basis, provided that such deceased member's accumulated |
1812
|
leave is sufficient to cover the additional months required. For |
1813
|
each month of service credit needed prior to the final month, |
1814
|
credit for the total number of work hours in that month must be |
1815
|
purchased, using an equal number of the deceased member's |
1816
|
accumulated leave hours. Service credit required for the final |
1817
|
month in which the deceased member would have become vested |
1818
|
shall be awarded upon the purchase of 1 hour of credit. Such |
1819
|
eligible joint annuitant shall pay the contribution rate in |
1820
|
effect for the period of time being claimed for the deceased |
1821
|
member's class of membership, multiplied by such member's |
1822
|
monthly salary at the time of death, plus 6.5 percent interest |
1823
|
compounded annually. The accumulated leave payment used in the |
1824
|
average final compensation shall not include that portion of the |
1825
|
payment that represents any leave hours used in the purchase of |
1826
|
such creditable service. |
1827
|
2. Such eligible joint annuitant may purchase additional |
1828
|
months of creditable service for any periods of out-of-state |
1829
|
service as provided in s. 121.1115, and in-state service as |
1830
|
provided in s. 121.1122, that the deceased member would have |
1831
|
been eligible to purchase prior to his or her death. |
1832
|
|
1833
|
Service purchased under this paragraph shall be added to the |
1834
|
creditable service of the member and used to vest for retirement |
1835
|
eligibility, and shall be used in the calculation of any |
1836
|
benefits which may be payable to the eligible joint annuitant. |
1837
|
Any benefits paid in accordance with this paragraph shall only |
1838
|
be made prospectively. |
1839
|
(g) Notwithstanding any other provisions in this chapter |
1840
|
to the contrary, if any member who is vested dies and the |
1841
|
surviving spouse receives a refund of the accumulated |
1842
|
contributions made to the retirement trust fund, such spouse may |
1843
|
pay to the Division of Retirement an amount equal to the sum of |
1844
|
the amount of the deceased member's accumulated contributions |
1845
|
previously refunded plus interest at 4 percent compounded |
1846
|
annually each June 30 from the date of refund until July 1, |
1847
|
1975, and 6.5 percent interest compounded annually thereafter, |
1848
|
until full payment is made, and receive the monthly retirement |
1849
|
benefit as provided in paragraph (b). |
1850
|
(h) The designated beneficiary who is the surviving spouse |
1851
|
or other dependent of a member whose employment is terminated by |
1852
|
death subsequent to becoming vested, but prior to actual |
1853
|
retirement, may elect to receive a deferred monthly benefit as |
1854
|
if the member had lived and had elected a deferred monthly |
1855
|
benefit, as provided in paragraph (5)(b), calculated on the |
1856
|
basis of the average final compensation and creditable service |
1857
|
of the member at his or her death and the age the member would |
1858
|
have attained on the commencement date of the deferred benefit |
1859
|
elected by the beneficiary, paid in accordance with option 3 of |
1860
|
paragraph (6)(a). |
1861
|
(8) DESIGNATION OF BENEFICIARIES.-- |
1862
|
(a) Each member may, on a form provided for that purpose, |
1863
|
signed and filed with the division, designate a choice of one or |
1864
|
more persons, named sequentially or jointly, as his or her |
1865
|
beneficiary who shall receive the benefits, if any, which may be |
1866
|
payable in the event of the member's death pursuant to the |
1867
|
provisions of this chapter. If no beneficiary is named in the |
1868
|
manner provided above, or if no beneficiary designated by the |
1869
|
member survives the member, the beneficiary shall be the spouse |
1870
|
of the deceased, if living. If the member's spouse is not alive |
1871
|
at his or her death, the beneficiary shall be the living |
1872
|
children of the member. If no children survive, the beneficiary |
1873
|
shall be the member's father or mother, if living; otherwise, |
1874
|
the beneficiary shall be the member's estate. The beneficiary |
1875
|
most recently designated by a member on a form or letter filed |
1876
|
with the division shall be the beneficiary entitled to any |
1877
|
benefits payable at the time of the member's death, except that |
1878
|
benefits shall be paid as provided in paragraph (7)(d) when |
1879
|
death occurs in the line of duty. Notwithstanding any other |
1880
|
provisions in this subsection to the contrary, for a member who |
1881
|
dies prior to his or her effective date of retirement on or |
1882
|
after January 1, 1999, the spouse at the time of death shall be |
1883
|
the member's beneficiary unless such member designates a |
1884
|
different beneficiary as provided herein subsequent to the |
1885
|
member's most recent marriage. |
1886
|
(b) A designated beneficiary of a retirement account for |
1887
|
whom there is a monetary interest may disclaim his or her |
1888
|
monetary interest as provided in s. 689.21, and in accordance |
1889
|
with division rules governing such disclaimers. Such disclaimer |
1890
|
must be filed within 24 months after the event that created the |
1891
|
interest, that is, the death of the member or annuitant. |
1892
|
(c) Notwithstanding the member's designation of benefits |
1893
|
to be paid through a trust to a beneficiary that is a natural |
1894
|
person as provided in s. 121.021(46), and notwithstanding the |
1895
|
provisions of the trust, benefits shall be paid directly to the |
1896
|
beneficiary if such person is no longer a minor or incapacitated |
1897
|
as defined in s. 744.102(10) and (11). |
1898
|
(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.-- |
1899
|
(a) Any person who is retired under this chapter, except |
1900
|
under the disability retirement provisions of subsection (4), |
1901
|
may be employed by an employer that does not participate in a |
1902
|
state-administered retirement system and may receive |
1903
|
compensation from that employment without limiting or |
1904
|
restricting in any way the retirement benefits payable to that |
1905
|
person. |
1906
|
(b)1. Any person who is retired under this chapter, except |
1907
|
under the disability retirement provisions of subsection (4), |
1908
|
may be reemployed by any private or public employer after |
1909
|
retirement and receive retirement benefits and compensation from |
1910
|
his or her employer without any limitations, except that a |
1911
|
person may not receive both a salary from reemployment with any |
1912
|
agency participating in the Florida Retirement System and |
1913
|
retirement benefits under this chapter for a period of 12 months |
1914
|
immediately subsequent to the date of retirement. However, a |
1915
|
DROP participant shall continue employment and receive a salary |
1916
|
during the period of participation in the Deferred Retirement |
1917
|
Option Program, as provided in subsection (13). |
1918
|
2. Any person to whom the limitation in subparagraph 1. |
1919
|
applies who violates such reemployment limitation and who is |
1920
|
reemployed with any agency participating in the Florida |
1921
|
Retirement System before completion of the 12-month limitation |
1922
|
period shall give timely notice of this fact in writing to the |
1923
|
employer and to the division and shall have his or her |
1924
|
retirement benefits suspended for the balance of the 12-month |
1925
|
limitation period. Any person employed in violation of this |
1926
|
paragraph and any employing agency which knowingly employs or |
1927
|
appoints such person without notifying the Division of |
1928
|
Retirement to suspend retirement benefits shall be jointly and |
1929
|
severally liable for reimbursement to the retirement trust fund |
1930
|
of any benefits paid during the reemployment limitation period. |
1931
|
To avoid liability, such employing agency shall have a written |
1932
|
statement from the retiree that he or she is not retired from a |
1933
|
state-administered retirement system. Any retirement benefits |
1934
|
received while reemployed during this reemployment limitation |
1935
|
period shall be repaid to the retirement trust fund, and |
1936
|
retirement benefits shall remain suspended until such repayment |
1937
|
has been made. Benefits suspended beyond the reemployment |
1938
|
limitation shall apply toward repayment of benefits received in |
1939
|
violation of the reemployment limitation. |
1940
|
3. A district school board may reemploy a retired member |
1941
|
as a substitute or hourly teacher, education paraprofessional, |
1942
|
transportation assistant, bus driver, or food service worker on |
1943
|
a noncontractual basis after he or she has been retired for 1 |
1944
|
calendar month, in accordance with s. 121.021(39). Any retired |
1945
|
member who is reemployed within 1 calendar month after |
1946
|
retirement shall void his or her application for retirement |
1947
|
benefits. District school boards reemploying such teachers, |
1948
|
education paraprofessionals, transportation assistants, bus |
1949
|
drivers, or food service workers are subject to the retirement |
1950
|
contribution required by subparagraph 7. Reemployment of a |
1951
|
retired member as a substitute or hourly teacher, education |
1952
|
paraprofessional, transportation assistant, bus driver, or food |
1953
|
service worker is limited to 780 hours during the first 12 |
1954
|
months of his or her retirement. Any retired member reemployed |
1955
|
for more than 780 hours during his or her first 12 months of |
1956
|
retirement shall give timely notice in writing to the employer |
1957
|
and to the division of the date he or she will exceed the |
1958
|
limitation. The division shall suspend his or her retirement |
1959
|
benefits for the remainder of the first 12 months of retirement. |
1960
|
Any person employed in violation of this subparagraph and any |
1961
|
employing agency which knowingly employs or appoints such person |
1962
|
without notifying the Division of Retirement to suspend |
1963
|
retirement benefits shall be jointly and severally liable for |
1964
|
reimbursement to the retirement trust fund of any benefits paid |
1965
|
during the reemployment limitation period. To avoid liability, |
1966
|
such employing agency shall have a written statement from the |
1967
|
retiree that he or she is not retired from a state-administered |
1968
|
retirement system. Any retirement benefits received by a retired |
1969
|
member while reemployed in excess of 780 hours during the first |
1970
|
12 months of retirement shall be repaid to the Retirement System |
1971
|
Trust Fund, and his or her retirement benefits shall remain |
1972
|
suspended until repayment is made. Benefits suspended beyond the |
1973
|
end of the retired member's first 12 months of retirement shall |
1974
|
apply toward repayment of benefits received in violation of the |
1975
|
780-hour reemployment limitation. |
1976
|
4. A community college board of trustees may reemploy a |
1977
|
retired member as an adjunct instructor, that is, an instructor |
1978
|
who is noncontractual and part-time, or as a participant in a |
1979
|
phased retirement program within the Florida Community College |
1980
|
System, after he or she has been retired for 1 calendar month, |
1981
|
in accordance with s. 121.021(39). Any retired member who is |
1982
|
reemployed within 1 calendar month after retirement shall void |
1983
|
his or her application for retirement benefits. Boards of |
1984
|
trustees reemploying such instructors are subject to the |
1985
|
retirement contribution required in subparagraph 7. A retired |
1986
|
member may be reemployed as an adjunct instructor for no more |
1987
|
than 780 hours during the first 12 months of retirement. Any |
1988
|
retired member reemployed for more than 780 hours during the |
1989
|
first 12 months of retirement shall give timely notice in |
1990
|
writing to the employer and to the division of the date he or |
1991
|
she will exceed the limitation. The division shall suspend his |
1992
|
or her retirement benefits for the remainder of the first 12 |
1993
|
months of retirement. Any person employed in violation of this |
1994
|
subparagraph and any employing agency which knowingly employs or |
1995
|
appoints such person without notifying the Division of |
1996
|
Retirement to suspend retirement benefits shall be jointly and |
1997
|
severally liable for reimbursement to the retirement trust fund |
1998
|
of any benefits paid during the reemployment limitation period. |
1999
|
To avoid liability, such employing agency shall have a written |
2000
|
statement from the retiree that he or she is not retired from a |
2001
|
state-administered retirement system. Any retirement benefits |
2002
|
received by a retired member while reemployed in excess of 780 |
2003
|
hours during the first 12 months of retirement shall be repaid |
2004
|
to the Retirement System Trust Fund, and retirement benefits |
2005
|
shall remain suspended until repayment is made. Benefits |
2006
|
suspended beyond the end of the retired member's first 12 months |
2007
|
of retirement shall apply toward repayment of benefits received |
2008
|
in violation of the 780-hour reemployment limitation. |
2009
|
5. The State University System may reemploy a retired |
2010
|
member as an adjunct faculty member or as a participant in a |
2011
|
phased retirement program within the State University System |
2012
|
after the retired member has been retired for 1 calendar month, |
2013
|
in accordance with s. 121.021(39). Any retired member who is |
2014
|
reemployed within 1 calendar month after retirement shall void |
2015
|
his or her application for retirement benefits. The State |
2016
|
University System is subject to the retired contribution |
2017
|
required in subparagraph 7., as appropriate. A retired member |
2018
|
may be reemployed as an adjunct faculty member or a participant |
2019
|
in a phased retirement program for no more than 780 hours during |
2020
|
the first 12 months of his or her retirement. Any retired member |
2021
|
reemployed for more than 780 hours during the first 12 months of |
2022
|
retirement shall give timely notice in writing to the employer |
2023
|
and to the division of the date he or she will exceed the |
2024
|
limitation. The division shall suspend his or her retirement |
2025
|
benefits for the remainder of the first 12 months of retirement. |
2026
|
Any person employed in violation of this subparagraph and any |
2027
|
employing agency which knowingly employs or appoints such person |
2028
|
without notifying the Division of Retirement to suspend |
2029
|
retirement benefits shall be jointly and severally liable for |
2030
|
reimbursement to the retirement trust fund of any benefits paid |
2031
|
during the reemployment limitation period. To avoid liability, |
2032
|
such employing agency shall have a written statement from the |
2033
|
retiree that he or she is not retired from a state-administered |
2034
|
retirement system. Any retirement benefits received by a retired |
2035
|
member while reemployed in excess of 780 hours during the first |
2036
|
12 months of retirement shall be repaid to the Retirement System |
2037
|
Trust Fund, and retirement benefits shall remain suspended until |
2038
|
repayment is made. Benefits suspended beyond the end of the |
2039
|
retired member's first 12 months of retirement shall apply |
2040
|
toward repayment of benefits received in violation of the 780- |
2041
|
hour reemployment limitation. |
2042
|
6. The Board of Trustees of the Florida School for the |
2043
|
Deaf and the Blind may reemploy a retired member as a substitute |
2044
|
teacher, substitute residential instructor, or substitute nurse |
2045
|
on a noncontractual basis after he or she has been retired for 1 |
2046
|
calendar month, in accordance with s. 121.021(39). Any retired |
2047
|
member who is reemployed within 1 calendar month after |
2048
|
retirement shall void his or her application for retirement |
2049
|
benefits. The Board of Trustees of the Florida School for the |
2050
|
Deaf and the Blind reemploying such teachers, residential |
2051
|
instructors, or nurses is subject to the retirement contribution |
2052
|
required by subparagraph 7. Reemployment of a retired member as |
2053
|
a substitute teacher, substitute residential instructor, or |
2054
|
substitute nurse is limited to 780 hours during the first 12 |
2055
|
months of his or her retirement. Any retired member reemployed |
2056
|
for more than 780 hours during the first 12 months of retirement |
2057
|
shall give timely notice in writing to the employer and to the |
2058
|
division of the date he or she will exceed the limitation. The |
2059
|
division shall suspend his or her retirement benefits for the |
2060
|
remainder of the first 12 months of retirement. Any person |
2061
|
employed in violation of this subparagraph and any employing |
2062
|
agency which knowingly employs or appoints such person without |
2063
|
notifying the Division of Retirement to suspend retirement |
2064
|
benefits shall be jointly and severally liable for reimbursement |
2065
|
to the retirement trust fund of any benefits paid during the |
2066
|
reemployment limitation period. To avoid liability, such |
2067
|
employing agency shall have a written statement from the retiree |
2068
|
that he or she is not retired from a state-administered |
2069
|
retirement system. Any retirement benefits received by a retired |
2070
|
member while reemployed in excess of 780 hours during the first |
2071
|
12 months of retirement shall be repaid to the Retirement System |
2072
|
Trust Fund, and his or her retirement benefits shall remain |
2073
|
suspended until payment is made. Benefits suspended beyond the |
2074
|
end of the retired member's first 12 months of retirement shall |
2075
|
apply toward repayment of benefits received in violation of the |
2076
|
780-hour reemployment limitation. |
2077
|
7. The employment by an employer of any retiree or DROP |
2078
|
participant of any state-administered retirement system shall |
2079
|
have no effect on the average final compensation or years of |
2080
|
creditable service of the retiree or DROP participant. Prior to |
2081
|
July 1, 1991, upon employment of any person, other than an |
2082
|
elected officer as provided in s. 121.053, who has been retired |
2083
|
under any state-administered retirement program, the employer |
2084
|
shall pay retirement contributions in an amount equal to the |
2085
|
unfunded actuarial liability portion of the employer |
2086
|
contribution which would be required for regular members of the |
2087
|
Florida Retirement System. Effective July 1, 1991, contributions |
2088
|
shall be made as provided in s. 121.122 for retirees with |
2089
|
renewed membership or subsection (13) with respect to DROP |
2090
|
participants. |
2091
|
8. Any person who has previously retired and who is |
2092
|
holding an elective public office or an appointment to an |
2093
|
elective public office eligible for the Elected Officers' Class |
2094
|
on or after July 1, 1990, shall be enrolled in the Florida |
2095
|
Retirement System as provided in s. 121.053(1)(b) or, if holding |
2096
|
an elective public office that does not qualify for the Elected |
2097
|
Officers' Class on or after July 1, 1991, shall be enrolled in |
2098
|
the Florida Retirement System as provided in s. 121.122, and |
2099
|
shall continue to receive retirement benefits as well as |
2100
|
compensation for the elected officer's service for as long as he |
2101
|
or she remains in elective office. However, any retired member |
2102
|
who served in an elective office prior to July 1, 1990, |
2103
|
suspended his or her retirement benefit, and had his or her |
2104
|
Florida Retirement System membership reinstated shall, upon |
2105
|
retirement from such office, have his or her retirement benefit |
2106
|
recalculated to include the additional service and compensation |
2107
|
earned. |
2108
|
9. Any person who is holding an elective public office |
2109
|
which is covered by the Florida Retirement System and who is |
2110
|
concurrently employed in nonelected covered employment may elect |
2111
|
to retire while continuing employment in the elective public |
2112
|
office, provided that he or she shall be required to terminate |
2113
|
his or her nonelected covered employment. Any person who |
2114
|
exercises this election shall receive his or her retirement |
2115
|
benefits in addition to the compensation of the elective office |
2116
|
without regard to the time limitations otherwise provided in |
2117
|
this subsection. No person who seeks to exercise the provisions |
2118
|
of this subparagraph, as the same existed prior to May 3, 1984, |
2119
|
shall be deemed to be retired under those provisions, unless |
2120
|
such person is eligible to retire under the provisions of this |
2121
|
subparagraph, as amended by chapter 84-11, Laws of Florida. |
2122
|
10. The limitations of this paragraph apply to |
2123
|
reemployment in any capacity with an "employer" as defined in s. |
2124
|
121.021(10), irrespective of the category of funds from which |
2125
|
the person is compensated. |
2126
|
11. An employing agency may reemploy a retired member as a |
2127
|
firefighter or paramedic after the retired member has been |
2128
|
retired for 1 calendar month, in accordance with s. 121.021(39). |
2129
|
Any retired member who is reemployed within 1 calendar month |
2130
|
after retirement shall void his or her application for |
2131
|
retirement benefits. The employing agency reemploying such |
2132
|
firefighter or paramedic is subject to the retired contribution |
2133
|
required in subparagraph 8. Reemployment of a retired |
2134
|
firefighter or paramedic is limited to no more than 780 hours |
2135
|
during the first 12 months of his or her retirement. Any retired |
2136
|
member reemployed for more than 780 hours during the first 12 |
2137
|
months of retirement shall give timely notice in writing to the |
2138
|
employer and to the division of the date he or she will exceed |
2139
|
the limitation. The division shall suspend his or her retirement |
2140
|
benefits for the remainder of the first 12 months of retirement. |
2141
|
Any person employed in violation of this subparagraph and any |
2142
|
employing agency which knowingly employs or appoints such person |
2143
|
without notifying the Division of Retirement to suspend |
2144
|
retirement benefits shall be jointly and severally liable for |
2145
|
reimbursement to the Retirement System Trust Fund of any |
2146
|
benefits paid during the reemployment limitation period. To |
2147
|
avoid liability, such employing agency shall have a written |
2148
|
statement from the retiree that he or she is not retired from a |
2149
|
state-administered retirement system. Any retirement benefits |
2150
|
received by a retired member while reemployed in excess of 780 |
2151
|
hours during the first 12 months of retirement shall be repaid |
2152
|
to the Retirement System Trust Fund, and retirement benefits |
2153
|
shall remain suspended until repayment is made. Benefits |
2154
|
suspended beyond the end of the retired member's first 12 months |
2155
|
of retirement shall apply toward repayment of benefits received |
2156
|
in violation of the 780-hour reemployment limitation. |
2157
|
(10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the |
2158
|
intent of the Legislature that future benefit increases enacted |
2159
|
into law in this chapter shall be financed concurrently by |
2160
|
increased contributions or other adequate funding, and such |
2161
|
funding shall be based on sound actuarial data as developed by |
2162
|
the actuary or state retirement actuary, as provided in ss. |
2163
|
121.021(6) and 121.192. |
2164
|
(11) A member who becomes eligible to retire and has |
2165
|
accumulated the maximum benefit of 100 percent of average final |
2166
|
compensation may continue in active service, and, if upon the |
2167
|
member's retirement the member elects to receive a retirement |
2168
|
compensation pursuant to subsection (2), subsection (6), or |
2169
|
subsection (7), the actuarial equivalent percentage factor |
2170
|
applicable to the age of such member at the time the member |
2171
|
reached the maximum benefit and to the age, at that time, of the |
2172
|
member's spouse shall determine the amount of benefits to be |
2173
|
paid. |
2174
|
(12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR |
2175
|
BENEFITS.--Notwithstanding any provision of this chapter to the |
2176
|
contrary, for members with an effective date of retirement, or |
2177
|
date of death if prior to retirement, on or after January 1, |
2178
|
1996, the named joint annuitant, as defined in s. |
2179
|
121.021(28)(b), who is eligible to receive benefits under |
2180
|
subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive |
2181
|
the maximum monthly retirement benefit that would have been |
2182
|
payable to the member under subparagraph (6)(a)1.; however, |
2183
|
payment of such benefit shall cease the month the joint |
2184
|
annuitant attains age 25 unless such joint annuitant is disabled |
2185
|
and incapable of self-support, in which case, benefits shall |
2186
|
cease when the joint annuitant is no longer disabled. The |
2187
|
administrator may require proof of disability or continued |
2188
|
disability in the same manner as is provided for a member |
2189
|
seeking or receiving a disability retirement benefit under |
2190
|
subsection (4). |
2191
|
(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and |
2192
|
subject to the provisions of this section, the Deferred |
2193
|
Retirement Option Program, hereinafter referred to as the DROP, |
2194
|
is a program under which an eligible member of the Florida |
2195
|
Retirement System may elect to participate, deferring receipt of |
2196
|
retirement benefits while continuing employment with his or her |
2197
|
Florida Retirement System employer. The deferred monthly |
2198
|
benefits shall accrue in the System Trust Fund on behalf of the |
2199
|
participant, plus interest compounded monthly, for the specified |
2200
|
period of the DROP participation, as provided in paragraph (c). |
2201
|
Upon termination of employment, the participant shall receive |
2202
|
the total DROP benefits and begin to receive the previously |
2203
|
determined normal retirement benefits. Participation in the DROP |
2204
|
does not guarantee employment for the specified period of DROP. |
2205
|
(a) Eligibility of member to participate in the DROP.--All |
2206
|
active Florida Retirement System members in a regularly |
2207
|
established position, and all active members of either the |
2208
|
Teachers' Retirement System established in chapter 238 or the |
2209
|
State and County Officers' and Employees' Retirement System |
2210
|
established in chapter 122 which systems are consolidated within |
2211
|
the Florida Retirement System under s. 121.011, are eligible to |
2212
|
elect participation in the DROP provided that: |
2213
|
1. The member is not a renewed member of the Florida |
2214
|
Retirement System under s. 121.122, or a member of the State |
2215
|
Community College System Optional Retirement Program under s. |
2216
|
121.051, the Senior Management Service Optional Annuity Program |
2217
|
under s. 121.055, or the optional retirement program for the |
2218
|
State University System under s. 121.35. |
2219
|
2. Except as provided in subparagraph 6., election to |
2220
|
participate is made within 12 months immediately following the |
2221
|
date on which the member first reaches normal retirement date, |
2222
|
or, for a member who reaches normal retirement date based on |
2223
|
service before he or she reaches age 62, or age 55 for Special |
2224
|
Risk Class members, election to participate may be deferred to |
2225
|
the 12 months immediately following the date the member attains |
2226
|
57, or age 52 for Special Risk Class members. For a member who |
2227
|
first reached normal retirement date or the deferred eligibility |
2228
|
date described above prior to the effective date of this |
2229
|
section, election to participate shall be made within 12 months |
2230
|
after the effective date of this section. A member who fails to |
2231
|
make an election within such 12-month limitation period shall |
2232
|
forfeit all rights to participate in the DROP. The member shall |
2233
|
advise his or her employer and the division in writing of the |
2234
|
date on which the DROP shall begin. Such beginning date may be |
2235
|
subsequent to the 12-month election period, but must be within |
2236
|
the 60-month limitation period as provided in subparagraph (b)1. |
2237
|
When establishing eligibility of the member to participate in |
2238
|
the DROP for the 60-month maximum participation period, the |
2239
|
member may elect to include or exclude any optional service |
2240
|
credit purchased by the member from the total service used to |
2241
|
establish the normal retirement date. A member with dual normal |
2242
|
retirement dates shall be eligible to elect to participate in |
2243
|
DROP within 12 months after attaining normal retirement date in |
2244
|
either class. |
2245
|
3. The employer of a member electing to participate in the |
2246
|
DROP, or employers if dually employed, shall acknowledge in |
2247
|
writing to the division the date the member's participation in |
2248
|
the DROP begins and the date the member's employment and DROP |
2249
|
participation will terminate. |
2250
|
4. Simultaneous employment of a participant by additional |
2251
|
Florida Retirement System employers subsequent to the |
2252
|
commencement of participation in the DROP shall be permissible |
2253
|
provided such employers acknowledge in writing a DROP |
2254
|
termination date no later than the participant's existing |
2255
|
termination date or the 60-month limitation period as provided |
2256
|
in subparagraph (b)1. |
2257
|
5. A DROP participant may change employers while |
2258
|
participating in the DROP, subject to the following: |
2259
|
a. A change of employment must take place without a break |
2260
|
in service so that the member receives salary for each month of |
2261
|
continuous DROP participation. If a member receives no salary |
2262
|
during a month, DROP participation shall cease unless the |
2263
|
employer verifies a continuation of the employment relationship |
2264
|
for such participant pursuant to s. 121.021(39)(b). |
2265
|
b. Such participant and new employer shall notify the |
2266
|
division on forms required by the division as to the identity of |
2267
|
the new employer. |
2268
|
c. The new employer shall acknowledge, in writing, the |
2269
|
participant's DROP termination date, which may be extended but |
2270
|
not beyond the original 60-month period provided in subparagraph |
2271
|
(b)1., shall acknowledge liability for any additional retirement |
2272
|
contributions and interest required if the participant fails to |
2273
|
timely terminate employment, and shall be subject to the |
2274
|
adjustment required in sub-subparagraph (c)5.d. |
2275
|
6. Effective July 1, 2001, for instructional personnel as |
2276
|
defined in s. 1012.01(2), election to participate in the DROP |
2277
|
shall be made at any time following the date on which the member |
2278
|
first reaches normal retirement date. The member shall advise |
2279
|
his or her employer and the division in writing of the date on |
2280
|
which the Deferred Retirement Option Program shall begin. When |
2281
|
establishing eligibility of the member to participate in the |
2282
|
DROP for the 60-month maximum participation period, as provided |
2283
|
in subparagraph (b)1., the member may elect to include or |
2284
|
exclude any optional service credit purchased by the member from |
2285
|
the total service used to establish the normal retirement date. |
2286
|
A member with dual normal retirement dates shall be eligible to |
2287
|
elect to participate in either class. |
2288
|
(b) Participation in the DROP.-- |
2289
|
1. An eligible member may elect to participate in the DROP |
2290
|
for a period not to exceed a maximum of 60 calendar months |
2291
|
immediately following the date on which the member first reaches |
2292
|
his or her normal retirement date or the date to which he or she |
2293
|
is eligible to defer his or her election to participate as |
2294
|
provided in subparagraph (a)2. However, a member who has reached |
2295
|
normal retirement date prior to the effective date of the DROP |
2296
|
shall be eligible to participate in the DROP for a period of |
2297
|
time not to exceed 60 calendar months immediately following the |
2298
|
effective date of the DROP, except a member of the Special Risk |
2299
|
Class who has reached normal retirement date prior to the |
2300
|
effective date of the DROP and whose total accrued value exceeds |
2301
|
75 percent of average final compensation as of his or her |
2302
|
effective date of retirement shall be eligible to participate in |
2303
|
the DROP for no more than 36 calendar months immediately |
2304
|
following the effective date of the DROP. |
2305
|
2. Upon deciding to participate in the DROP, the member |
2306
|
shall submit, on forms required by the division: |
2307
|
a. A written election to participate in the DROP; |
2308
|
b. Selection of the DROP participation and termination |
2309
|
dates, which satisfy the limitations stated in paragraph (a) and |
2310
|
subparagraph 1. Such termination date shall be in a binding |
2311
|
letter of resignation with the employer, establishing a deferred |
2312
|
termination date. The member may change the termination date |
2313
|
within the limitations of subparagraph 1., but only with the |
2314
|
written approval of his or her employer; |
2315
|
c. A properly completed DROP application for service |
2316
|
retirement as provided in this section; and |
2317
|
d. Any other information required by the division. |
2318
|
3. The DROP participant shall be a retiree under the |
2319
|
Florida Retirement System for all purposes, except for paragraph |
2320
|
(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, |
2321
|
and 121.122. However, participation in the DROP does not alter |
2322
|
the participant's employment status and such employee shall not |
2323
|
be deemed retired from employment until his or her deferred |
2324
|
resignation is effective and termination occurs as provided in |
2325
|
s. 121.021(39). |
2326
|
4. Elected officers shall be eligible to participate in |
2327
|
the DROP subject to the following: |
2328
|
a. An elected officer who reaches normal retirement date |
2329
|
during a term of office may defer the election to participate in |
2330
|
the DROP until the next succeeding term in that office. Such |
2331
|
elected officer who exercises this option may participate in the |
2332
|
DROP for up to 60 calendar months or a period of no longer than |
2333
|
such succeeding term of office, whichever is less. |
2334
|
b. An elected or a nonelected participant may run for a |
2335
|
term of office while participating in DROP and, if elected, |
2336
|
extend the DROP termination date accordingly, except, however, |
2337
|
if such additional term of office exceeds the 60-month |
2338
|
limitation established in subparagraph 1., and the officer does |
2339
|
not resign from office within such 60-month limitation, the |
2340
|
retirement and the participant's DROP shall be null and void as |
2341
|
provided in sub-subparagraph (c)5.d. |
2342
|
c. An elected officer who is dually employed and elects to |
2343
|
participate in DROP shall be required to satisfy the definition |
2344
|
of termination within the 60-month limitation period as provided |
2345
|
in subparagraph 1. for the nonelected position and may continue |
2346
|
employment as an elected officer as provided in s. 121.053. The |
2347
|
elected officer will be enrolled as a renewed member in the |
2348
|
Elected Officers' Class or the Regular Class, as provided in ss. |
2349
|
121.053 and 121.22, on the first day of the month after |
2350
|
termination of employment in the nonelected position and |
2351
|
termination of DROP. Distribution of the DROP benefits shall be |
2352
|
made as provided in paragraph (c). |
2353
|
(c) Benefits payable under the DROP.-- |
2354
|
1. Effective with the date of DROP participation, the |
2355
|
member's initial normal monthly benefit, including creditable |
2356
|
service, optional form of payment, and average final |
2357
|
compensation, and the effective date of retirement shall be |
2358
|
fixed. The beneficiary established under the Florida Retirement |
2359
|
System shall be the beneficiary eligible to receive any DROP |
2360
|
benefits payable if the DROP participant dies prior to the |
2361
|
completion of the period of DROP participation. In the event a |
2362
|
joint annuitant predeceases the member, the member may name a |
2363
|
beneficiary to receive accumulated DROP benefits payable. Such |
2364
|
retirement benefit, the annual cost of living adjustments |
2365
|
provided in s. 121.101, and interest shall accrue monthly in the |
2366
|
System Trust Fund. Such interest shall accrue at an effective |
2367
|
annual rate of 6.5 percent compounded monthly, on the prior |
2368
|
month's accumulated ending balance, up to the month of |
2369
|
termination or death. |
2370
|
2. Each employee who elects to participate in the DROP |
2371
|
shall be allowed to elect to receive a lump-sum payment for |
2372
|
accrued annual leave earned in accordance with agency policy |
2373
|
upon beginning participation in the DROP. Such accumulated leave |
2374
|
payment certified to the division upon commencement of DROP |
2375
|
shall be included in the calculation of the member's average |
2376
|
final compensation. The employee electing such lump-sum payment |
2377
|
upon beginning participation in DROP will not be eligible to |
2378
|
receive a second lump-sum payment upon termination, except to |
2379
|
the extent the employee has earned additional annual leave which |
2380
|
combined with the original payment does not exceed the maximum |
2381
|
lump-sum payment allowed by the employing agency's policy or |
2382
|
rules. Such early lump-sum payment shall be based on the hourly |
2383
|
wage of the employee at the time he or she begins participation |
2384
|
in the DROP. If the member elects to wait and receive such lump- |
2385
|
sum payment upon termination of DROP and termination of |
2386
|
employment with the employer, any accumulated leave payment made |
2387
|
at that time cannot be included in the member's retirement |
2388
|
benefit, which was determined and fixed by law when the employee |
2389
|
elected to participate in the DROP. |
2390
|
3. The effective date of DROP participation and the |
2391
|
effective date of retirement of a DROP participant shall be the |
2392
|
first day of the month selected by the member to begin |
2393
|
participation in the DROP, provided such date is properly |
2394
|
established, with the written confirmation of the employer, and |
2395
|
the approval of the division, on forms required by the division. |
2396
|
4. Normal retirement benefits and interest thereon shall |
2397
|
continue to accrue in the DROP until the established termination |
2398
|
date of the DROP, or until the participant terminates employment |
2399
|
or dies prior to such date. Although individual DROP accounts |
2400
|
shall not be established, a separate accounting of each |
2401
|
participant's accrued benefits under the DROP shall be |
2402
|
calculated and provided to participants. |
2403
|
5. At the conclusion of the participant's DROP, the |
2404
|
division shall distribute the participant's total accumulated |
2405
|
DROP benefits, subject to the following provisions: |
2406
|
a. The division shall receive verification by the |
2407
|
participant's employer or employers that such participant has |
2408
|
terminated employment as provided in s. 121.021(39)(b). |
2409
|
b. The terminated DROP participant or, if deceased, such |
2410
|
participant's named beneficiary, shall elect on forms provided |
2411
|
by the division to receive payment of the DROP benefits in |
2412
|
accordance with one of the options listed below. For a |
2413
|
participant or beneficiary who fails to elect a method of |
2414
|
payment within 60 days of termination of the DROP, the division |
2415
|
will pay a lump sum as provided in sub-sub-subparagraph (I). |
2416
|
(I) Lump sum.--All accrued DROP benefits, plus interest, |
2417
|
less withholding taxes remitted to the Internal Revenue Service, |
2418
|
shall be paid to the DROP participant or surviving beneficiary. |
2419
|
(II) Direct rollover.--All accrued DROP benefits, plus |
2420
|
interest, shall be paid from the DROP directly to the custodian |
2421
|
of an eligible retirement plan as defined in s. 402(c)(8)(B) of |
2422
|
the Internal Revenue Code. However, in the case of an eligible |
2423
|
rollover distribution to the surviving spouse of a deceased |
2424
|
participant, an eligible retirement plan is an individual |
2425
|
retirement account or an individual retirement annuity as |
2426
|
described in s. 402(c)(9) of the Internal Revenue Code. |
2427
|
(III) Partial lump sum.--A portion of the accrued DROP |
2428
|
benefits shall be paid to the DROP participant or surviving |
2429
|
spouse, less withholding taxes remitted to the Internal Revenue |
2430
|
Service, and the remaining DROP benefits shall be transferred |
2431
|
directly to the custodian of an eligible retirement plan as |
2432
|
defined in s. 402(c)(8)(B) of the Internal Revenue Code. |
2433
|
However, in the case of an eligible rollover distribution to the |
2434
|
surviving spouse of a deceased participant, an eligible |
2435
|
retirement plan is an individual retirement account or an |
2436
|
individual retirement annuity as described in s. 402(c)(9) of |
2437
|
the Internal Revenue Code. The proportions shall be specified by |
2438
|
the DROP participant or surviving beneficiary. |
2439
|
c. The form of payment selected by the DROP participant or |
2440
|
surviving beneficiary complies with the minimum distribution |
2441
|
requirements of the Internal Revenue Code. |
2442
|
d. A DROP participant who fails to terminate employment as |
2443
|
defined in s. 121.021(39)(b) shall be deemed not to be retired, |
2444
|
and the DROP election shall be null and void. Florida Retirement |
2445
|
System membership shall be reestablished retroactively to the |
2446
|
date of the commencement of the DROP, and each employer with |
2447
|
whom the participant continues employment shall be required to |
2448
|
pay to the System Trust Fund the difference between the DROP |
2449
|
contributions paid in paragraph (i) and the contributions |
2450
|
required for the applicable Florida Retirement System class of |
2451
|
membership during the period the member participated in the |
2452
|
DROP, plus 6.5 percent interest compounded annually. |
2453
|
6. The accrued benefits of any DROP participant, and any |
2454
|
contributions accumulated under such program, shall not be |
2455
|
subject to assignment, execution, attachment, or to any legal |
2456
|
process whatsoever, except for qualified domestic relations |
2457
|
orders by a court of competent jurisdiction, income deduction |
2458
|
orders as provided in s. 61.1301, and federal income tax levies. |
2459
|
7. DROP participants shall not be eligible for disability |
2460
|
retirement benefits as provided in subsection (4). |
2461
|
(d) Death benefits under the DROP.-- |
2462
|
1. Upon the death of a DROP participant, the named |
2463
|
beneficiary shall be entitled to apply for and receive the |
2464
|
accrued benefits in the DROP as provided in sub-subparagraph |
2465
|
(c)5.b. |
2466
|
2. The normal retirement benefit accrued to the DROP |
2467
|
during the month of a participant's death shall be the final |
2468
|
monthly benefit credited for such DROP participant. |
2469
|
3. Eligibility to participate in the DROP terminates upon |
2470
|
death of the participant. If the participant dies on or after |
2471
|
the effective date of enrollment in the DROP, but prior to the |
2472
|
first monthly benefit being credited to the DROP, Florida |
2473
|
Retirement System benefits shall be paid in accordance with |
2474
|
subparagraph (7)(c)1. or subparagraph 2. |
2475
|
4. A DROP participants' survivors shall not be eligible to |
2476
|
receive Florida Retirement System death benefits as provided in |
2477
|
paragraph (7)(d). |
2478
|
(e) Cost-of-living adjustment.--On each July 1, the |
2479
|
participants' normal retirement benefit shall be increased as |
2480
|
provided in s. 121.101. |
2481
|
(f) Retiree health insurance subsidy.--DROP participants |
2482
|
are not eligible to apply for the retiree health insurance |
2483
|
subsidy payments as provided in s. 112.363 until such |
2484
|
participants have terminated employment and participation in the |
2485
|
DROP. |
2486
|
(g) Renewed membership.--DROP participants shall not be |
2487
|
eligible for renewed membership in the Florida Retirement System |
2488
|
under ss. 121.053 and 121.122 until termination of employment is |
2489
|
effectuated as provided in s. 121.021(39)(b). |
2490
|
(h) Employment limitation after DROP participation.--Upon |
2491
|
satisfying the definition of termination of employment as |
2492
|
provided in s. 121.021(39)(b), DROP participants shall be |
2493
|
subject to such reemployment limitations as other retirees. |
2494
|
Reemployment restrictions applicable to retirees as provided in |
2495
|
subsection (9) shall not apply to DROP participants until their |
2496
|
employment and participation in the DROP are terminated. |
2497
|
(i) Contributions.-- |
2498
|
1. All employers paying the salary of a DROP participant |
2499
|
filling a regularly established position shall contribute 8.0 |
2500
|
percent of such participant's gross compensation for the period |
2501
|
of July 1, 2002, through June 30, 2003, and 11.56 percent of |
2502
|
such compensation thereafter, which shall constitute the entire |
2503
|
employer DROP contribution with respect to such participant. |
2504
|
Such contributions, payable to the System Trust Fund in the same |
2505
|
manner as required in s. 121.071, shall be made as appropriate |
2506
|
for each pay period and are in addition to contributions |
2507
|
required for social security and the Retiree Health Insurance |
2508
|
Subsidy Trust Fund. Such employer, social security, and health |
2509
|
insurance subsidy contributions are not included in the DROP. |
2510
|
2. The employer shall, in addition to subparagraph 1., |
2511
|
also withhold one-half of the entire social security |
2512
|
contribution required for the participant. Contributions for |
2513
|
social security by each participant and each employer, in the |
2514
|
amount required for social security coverage as now or hereafter |
2515
|
provided by the federal Social Security Act, shall be in |
2516
|
addition to contributions specified in subparagraph 1. |
2517
|
3. All employers paying the salary of a DROP participant |
2518
|
filling a regularly established position shall contribute the |
2519
|
percent of such participant's gross compensation required in s. |
2520
|
121.071(4), which shall constitute the employer's health |
2521
|
insurance subsidy contribution with respect to such participant. |
2522
|
Such contributions shall be deposited by the administrator in |
2523
|
the Retiree Health Insurance Subsidy Trust Fund. |
2524
|
(j) Forfeiture of retirement benefits.--Nothing in this |
2525
|
section shall be construed to remove DROP participants from the |
2526
|
scope of s. 8(d), Art. II of the State Constitution, s. |
2527
|
112.3173, and paragraph (5)(f). DROP participants who commit a |
2528
|
specified felony offense while employed will be subject to |
2529
|
forfeiture of all retirement benefits, including DROP benefits, |
2530
|
pursuant to those provisions of law. |
2531
|
(k) Administration of program.--The division shall make |
2532
|
such rules as are necessary for the effective and efficient |
2533
|
administration of this subsection. The division shall not be |
2534
|
required to advise members of the federal tax consequences of an |
2535
|
election related to the DROP but may advise members to seek |
2536
|
independent advice. |
2537
|
(14) PAYMENT OF BENEFITS.--This subsection applies to the |
2538
|
payment of benefits to a payee (retiree or beneficiary) under |
2539
|
the Florida Retirement System: |
2540
|
(a) Federal income tax shall be withheld in accordance |
2541
|
with federal law, unless the payee elects otherwise on Form W- |
2542
|
4P. The division shall prepare and distribute to each recipient |
2543
|
of monthly retirement benefits an appropriate income tax form |
2544
|
that reflects the recipient's income and federal income tax |
2545
|
withheld for the calendar year just ended. |
2546
|
(b) Subject to approval by the division in accordance with |
2547
|
rule 60S-4.015, Florida Administrative Code, a payee receiving |
2548
|
retirement benefits under the Florida Retirement System may also |
2549
|
have the following payments deducted from his or her monthly |
2550
|
benefit: |
2551
|
1. Premiums for life and health-related insurance policies |
2552
|
from approved companies. |
2553
|
2. Life insurance premiums for the State Group Life |
2554
|
Insurance Plan, if authorized in writing by the payee and by the |
2555
|
Department of Management Services. |
2556
|
3. Repayment of overpayments from the Florida Retirement |
2557
|
System Trust Fund, the State Employees' Health Insurance Trust |
2558
|
Fund, or the State Employees' Life Insurance Trust Fund, upon |
2559
|
notification of the payee. |
2560
|
4. Payments to an alternate payee for alimony, child |
2561
|
support, or division of marital assets pursuant to a qualified |
2562
|
domestic relations order under s. 222.21 or an income deduction |
2563
|
order under s. 61.1301. |
2564
|
5. Payments to the Internal Revenue Service for federal |
2565
|
income tax levies, upon notification of the division by the |
2566
|
Internal Revenue Service. |
2567
|
(c) A payee shall notify the division of any change in his |
2568
|
or her address. The division may suspend benefit payments to a |
2569
|
payee if correspondence sent to the payee's mailing address is |
2570
|
returned due to an incorrect address. Benefit payments shall be |
2571
|
resumed upon notification to the division of the payee's new |
2572
|
address. |
2573
|
(d) A payee whose retirement benefits are reduced by the |
2574
|
application of maximum benefit limits under s. 415(b) of the |
2575
|
Internal Revenue Code, as specified in s. 121.30(5), shall have |
2576
|
the portion of his or her calculated benefit in the Florida |
2577
|
Retirement System defined benefit plan which exceeds such |
2578
|
federal limitation paid through the Florida Retirement System |
2579
|
Preservation of Benefits Plan, as provided in s. 121.1001. |
2580
|
(e) No benefit may be reduced for the purpose of |
2581
|
preserving the member's eligibility for a federal program. |
2582
|
(f) The division shall adopt rules establishing procedures |
2583
|
for determining that the persons to whom benefits are being paid |
2584
|
are still living. The division shall suspend the benefits being |
2585
|
paid to any payee when it is unable to contact such payee and to |
2586
|
confirm that he or she is still living. |
2587
|
Section 31. Paragraph (b) of subsection (7) of section |
2588
|
121.101, Florida Statutes, is amended to read: |
2589
|
121.101 Cost-of-living adjustment of benefits.-- |
2590
|
(7) The purpose of this subsection is to establish a |
2591
|
supplemental cost-of-living adjustment for certain retirees and |
2592
|
beneficiaries who receive monthly retirement benefits under the |
2593
|
provisions of this chapter and the existing systems consolidated |
2594
|
therein, s. 112.05 for certain state officers and employees, and |
2595
|
s. 238.171 for certain elderly incapacitated teachers. |
2596
|
(b) Application for the supplemental cost-of-living |
2597
|
adjustment provided by this subsection shall include |
2598
|
certification by the retiree or annuitant that he or she is not |
2599
|
receiving, and is not eligible to receive, social security |
2600
|
benefits and shall include written authorization for the |
2601
|
divisiondepartmentto have access to information from the |
2602
|
Social Security Administration concerning his or her entitlement |
2603
|
to, or eligibility for, social security benefits. Such |
2604
|
supplemental cost-of-living adjustment shall not be paid unless |
2605
|
and until the application requirements of this paragraph are |
2606
|
met. |
2607
|
Section 32. Paragraph (e) of subsection (2) of section |
2608
|
121.111, Florida Statutes, is amended to read: |
2609
|
121.111 Credit for military service.-- |
2610
|
(2) Any member whose initial date of employment is before |
2611
|
January 1, 1987, who has military service as defined in s. |
2612
|
121.021(20)(b), and who does not claim such service under |
2613
|
subsection (1) may receive creditable service for such military |
2614
|
service if: |
2615
|
(e) Any member claiming credit under this subsection must |
2616
|
certify on the form prescribed by the divisiondepartmentthat |
2617
|
credit for such service has not and will not be claimed for |
2618
|
retirement purposes under any other federal, state, or local |
2619
|
retirement or pension system where "length of service" is a |
2620
|
factor in determining the amount of compensation received, |
2621
|
except where credit for such service has been granted in a |
2622
|
pension system providing retired pay for nonregular service as |
2623
|
provided in paragraph (d). If the member dies prior to |
2624
|
retirement, the member's beneficiary must make the required |
2625
|
certification before credit may be claimed. If such |
2626
|
certification is not made by the member or the member's |
2627
|
beneficiary, credit for wartime military service shall not be |
2628
|
allowed. |
2629
|
Section 33. Section 121.133, Florida Statutes, is amended |
2630
|
to read: |
2631
|
121.133 Cancellation of uncashed |
2632
|
warrants.--Notwithstanding the provisions of s. 17.26 or s. |
2633
|
717.123 to the contrary, effective July 1, 1998, if any state |
2634
|
warrant issued by the Comptroller for the payment of retirement |
2635
|
benefits from the Florida Retirement System Trust Fund, or any |
2636
|
other pension trust fund administered by the division |
2637
|
department, is not presented for payment within 1 year after the |
2638
|
last day of the month in which it was originally issued, the |
2639
|
Comptroller shall cancel the benefit warrant and credit the |
2640
|
amount of the warrant to the Florida Retirement System Trust |
2641
|
Fund or other pension trust fund administered by the division |
2642
|
department, as appropriate. The divisiondepartmentmay provide |
2643
|
for issuance of a replacement warrant when deemed appropriate. |
2644
|
Section 34. Section 121.135, Florida Statutes, is amended |
2645
|
to read: |
2646
|
121.135 Annual report to Legislature concerning state- |
2647
|
administered retirement systems.--The divisiondepartmentshall |
2648
|
make to each regular session of the Legislature a written report |
2649
|
on the operation and condition of the state-administered |
2650
|
retirement systems. |
2651
|
Section 35. Section 121.136, Florida Statutes, is amended |
2652
|
to read: |
2653
|
121.136 Annual benefit statement to members.--Beginning |
2654
|
January 1, 1993, and each January thereafter, the division |
2655
|
departmentshall provide each active member of the Florida |
2656
|
Retirement System with 5 or more years of creditable service an |
2657
|
annual statement of benefits. Such statement should provide the |
2658
|
member with basic data about the member's retirement account. |
2659
|
Minimally, it shall include the member's retirement plan, the |
2660
|
amount of funds on deposit in the retirement account, and an |
2661
|
estimate of retirement benefits. |
2662
|
Section 36. Section 121.1815, Florida Statutes, is amended |
2663
|
to read: |
2664
|
121.1815 Special pensions to individuals; administration |
2665
|
of laws by the Division of RetirementDepartment of Management |
2666
|
Services.--All powers, duties, and functions related to the |
2667
|
administration of laws providing special pensions to |
2668
|
individuals, including chapter 18054, Laws of Florida, 1937; |
2669
|
chapter 26788, Laws of Florida, 1951, as amended by chapter 57- |
2670
|
871, Laws of Florida; chapter 26836, Laws of Florida, 1951; and |
2671
|
chapter 63-953, Laws of Florida, are vested in the division |
2672
|
department. All laws hereinafter enacted by the Legislature |
2673
|
pertaining to special pensions for individuals shall be |
2674
|
administered by the divisiondepartment, unless contrary |
2675
|
provisions are contained in such law. Upon the death of any |
2676
|
person receiving a monthly pension under this section, the |
2677
|
monthly pension shall be paid through the last day of the month |
2678
|
of death and shall terminate on that date, unless contrary |
2679
|
provisions are contained in the special pension law. |
2680
|
Section 37. Section 121.1905, Florida Statutes, is amended |
2681
|
to read: |
2682
|
121.1905 Division of Retirement; missioncreation.-- |
2683
|
(1) There is created the Division of Retirement within the |
2684
|
Department of Management Services. |
2685
|
(2)The mission of the Division of Retirement is to |
2686
|
provide quality and cost-effective retirement services as |
2687
|
measured by member satisfaction and by comparison with |
2688
|
administrative costs of comparable retirement systems. |
2689
|
Section 38. Section 121.192, Florida Statutes, is amended |
2690
|
to read: |
2691
|
121.192 State retirement actuary.--The divisiondepartment |
2692
|
may employ an actuary. Such actuary shall, together with such |
2693
|
other duties as the director assignssecretary may assign, be |
2694
|
responsible for: |
2695
|
(1) Advising the directorsecretaryon actuarial matters |
2696
|
of the state retirement systems. |
2697
|
(2) Making periodic valuations of the retirement systems. |
2698
|
(3) Providing actuarial analyses to the Legislature |
2699
|
concerning proposed changes in the retirement systems. |
2700
|
(4) Assisting the directorsecretaryin developing a sound |
2701
|
and modern retirement system. |
2702
|
Section 39. Section 121.193, Florida Statutes, is amended |
2703
|
to read: |
2704
|
121.193 External compliance audits.-- |
2705
|
(1) The divisiondepartmentshall conduct audits of the |
2706
|
payroll and personnel records of participating agencies. These |
2707
|
audits shall be made to determine the accuracy of reports |
2708
|
submitted to the divisiondepartmentand to assess the degree of |
2709
|
compliance with applicable statutes, rules, and coverage |
2710
|
agreements. Audits shall be scheduled on a regular basis, as the |
2711
|
result of concerns known to exist at an agency, or as a followup |
2712
|
to ensure agency action was taken to correct deficiencies found |
2713
|
in an earlier audit. |
2714
|
(2) Upon request, participating agencies shall furnish the |
2715
|
divisiondepartment with information and documents that the |
2716
|
divisiondepartment requires to conduct the audit. The division |
2717
|
departmentmay prescribe by rule the documents that may be |
2718
|
requested. |
2719
|
(3) The divisiondepartmentshall review the agency's |
2720
|
operations concerning retirement and social security coverage. |
2721
|
Preliminary findings shall be discussed with agency personnel at |
2722
|
the close of the audit. An audit report of findings and |
2723
|
recommendations shall be submitted to divisiondepartment |
2724
|
management and an audit summary letter shall be submitted to the |
2725
|
agency noting any concerns and necessary corrective action. |
2726
|
Section 40. Subsection (1) of section 121.22, Florida |
2727
|
Statutes, is amended to read: |
2728
|
121.22 State Retirement Commission; creation; membership; |
2729
|
compensation.-- |
2730
|
(1)(a) There is created within the Division of Retirement |
2731
|
Department of Management Servicesa State Retirement Commission |
2732
|
composed of fourthree members: two membersOne member who are |
2733
|
isretired under a state-supported retirement system |
2734
|
administered by the divisiondepartment; one member who is an |
2735
|
active member of a state-supported retirement system that is |
2736
|
administered by the divisiondepartment; and one member who is |
2737
|
neither a retiree, beneficiary, or member of a state-supported |
2738
|
retirement system administered by the divisiondepartment. Each |
2739
|
member shall have a different occupational background from the |
2740
|
other members. |
2741
|
(b) The State Retirement Commission shall be assigned to |
2742
|
and administratively housed within the Division of Retirement, |
2743
|
but the commission shall function independently and shall not be |
2744
|
under the supervision of the division or the board. The exercise |
2745
|
by the commission of its powers, duties, and functions as |
2746
|
prescribed by law is not subject to the review or approval of |
2747
|
the division or the board. |
2748
|
Section 41. Subsection (1) of section 121.23, Florida |
2749
|
Statutes, is amended to read: |
2750
|
121.23 Disability retirement and special risk membership |
2751
|
applications; Retirement Commission; powers and duties; judicial |
2752
|
review.--The provisions of this section apply to all proceedings |
2753
|
in which the administrator has made a written final decision on |
2754
|
the merits respecting applications for disability retirement, |
2755
|
reexamination of retired members receiving disability benefits, |
2756
|
applications for special risk membership, and reexamination of |
2757
|
special risk members in the Florida Retirement System. The |
2758
|
jurisdiction of the State Retirement Commission under this |
2759
|
section shall be limited to written final decisions of the |
2760
|
administrator on the merits. |
2761
|
(1) In accordance with the rules of procedure adopted by |
2762
|
the divisionDepartment of Management Services, the |
2763
|
administrator shall: |
2764
|
(a) Give reasonable notice of his or her proposed action, |
2765
|
or decision to refuse action, together with a summary of the |
2766
|
factual, legal, and policy grounds therefor. |
2767
|
(b) Give affected members, or their counsel, an |
2768
|
opportunity to present to the division written evidence in |
2769
|
opposition to the proposed action or refusal to act or a written |
2770
|
statement challenging the grounds upon which the administrator |
2771
|
has chosen to justify his or her action or inaction. |
2772
|
(c) If the objections of the member are overruled, provide |
2773
|
a written explanation within 21 days. |
2774
|
Section 42. Subsections (2), (3), and (4) of section |
2775
|
121.24, Florida Statutes, are amended to read: |
2776
|
121.24 Conduct of commission business; legal and other |
2777
|
assistance; compensation.-- |
2778
|
(2) Legal counsel for the commission may be provided by |
2779
|
the Department of Legal Affairs or by the divisionDepartment of |
2780
|
Management Services, with the concurrence of the commission, and |
2781
|
shall be paid by the divisionDepartment of Management Services |
2782
|
from the appropriate funds. |
2783
|
(3) The divisionDepartment of Management Servicesshall |
2784
|
provide timely and appropriate training for newly appointed |
2785
|
members of the commission. Such training shall be designed to |
2786
|
acquaint new members of the commission with the duties and |
2787
|
responsibilities of the commission. |
2788
|
(4) The divisionDepartment of Management Servicesshall |
2789
|
furnish administrative and secretarial assistance to the |
2790
|
commission and shall provide a place where the commission may |
2791
|
hold its meetings. |
2792
|
Section 43. Subsection (9) of section 121.30, Florida |
2793
|
Statutes, is amended to read: |
2794
|
121.30 Statements of purpose and intent and other |
2795
|
provisions required for qualification under the Internal Revenue |
2796
|
Code of the United States.--Any other provisions in this chapter |
2797
|
to the contrary notwithstanding, it is specifically provided |
2798
|
that: |
2799
|
(9) The divisiondepartmentmay adopt any rule necessary |
2800
|
to accomplish the purpose of the section which is not |
2801
|
inconsistent with this chapter. |
2802
|
Section 44. Paragraph (c) of subsection (2), paragraphs |
2803
|
(c) and (e) of subsection (3), paragraphs (a), (b), and (c) of |
2804
|
subsection (4), and subsection (6) of section 121.35, Florida |
2805
|
Statutes, are amended to read: |
2806
|
121.35 Optional retirement program for the State |
2807
|
University System.-- |
2808
|
(2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.-- |
2809
|
(c) For purposes of this section, the Division of |
2810
|
RetirementDepartment of Management Servicesis referred to as |
2811
|
the "divisiondepartment." |
2812
|
(3) ELECTION OF OPTIONAL PROGRAM.-- |
2813
|
(c) Any employee who becomes eligible to participate in |
2814
|
the optional retirement program on or after January 1, 1993, |
2815
|
shall be a compulsory participant of the program unless such |
2816
|
employee elects membership in the Florida Retirement System. |
2817
|
Such election shall be made in writing and filed with the |
2818
|
personnel officer of the employer. Any eligible employee who |
2819
|
fails to make such election within the prescribed time period |
2820
|
shall be deemed to have elected to participate in the optional |
2821
|
retirement program. |
2822
|
1. Any employee whose optional retirement program |
2823
|
eligibility results from initial employment shall be enrolled in |
2824
|
the program at the commencement of employment. If, within 90 |
2825
|
days after commencement of employment, the employee elects |
2826
|
membership in the Florida Retirement System, such membership |
2827
|
shall be effective retroactive to the date of commencement of |
2828
|
employment. |
2829
|
2. Any employee whose optional retirement program |
2830
|
eligibility results from a change in status due to the |
2831
|
subsequent designation of the employee's position as one of |
2832
|
those specified in paragraph (2)(a) or due to the employee's |
2833
|
appointment, promotion, transfer, or reclassification to a |
2834
|
position specified in paragraph (2)(a) shall be enrolled in the |
2835
|
optional retirement program upon such change in status and shall |
2836
|
be notified by the employer of such action. If, within 90 days |
2837
|
after the date of such notification, the employee elects to |
2838
|
retain membership in the Florida Retirement System, such |
2839
|
continuation of membership shall be retroactive to the date of |
2840
|
the change in status. |
2841
|
3. Notwithstanding the provisions of this paragraph, |
2842
|
effective July 1, 1997, any employee who is eligible to |
2843
|
participate in the Optional Retirement Program and who fails to |
2844
|
execute a contract with one of the approved companies and to |
2845
|
notify the divisiondepartmentin writing as provided in |
2846
|
subsection (4) within 90 days after the date of eligibility |
2847
|
shall be deemed to have elected membership in the Florida |
2848
|
Retirement System, except as provided in s. 121.051(1)(a). This |
2849
|
provision shall also apply to any employee who terminates |
2850
|
employment in an eligible position before executing the required |
2851
|
annuity contract and notifying the divisiondepartment. Such |
2852
|
membership shall be retroactive to the date of eligibility, and |
2853
|
all appropriate contributions shall be transferred to the |
2854
|
Florida Retirement System Trust Fund and the Health Insurance |
2855
|
Subsidy Trust Fund. |
2856
|
(e) The election by an eligible employee to participate in |
2857
|
the optional retirement program shall be irrevocable for so long |
2858
|
as the employee continues to meet the eligibility requirements |
2859
|
specified in subsection (2), except as provided in paragraph |
2860
|
(h). In the event that an employee participates in the optional |
2861
|
retirement program for 90 days or more and is subsequently |
2862
|
employed in an administrative or professional position which has |
2863
|
been determined by the divisiondepartment, under subparagraph |
2864
|
(2)(a)2., to be not otherwise eligible for participation in the |
2865
|
optional retirement program, the employee shall continue |
2866
|
participation in the optional program so long as the employee |
2867
|
meets the other eligibility requirements for the program, except |
2868
|
as provided in paragraph (h). |
2869
|
(4) CONTRIBUTIONS.-- |
2870
|
(a) Through June 30, 2001, each employer shall contribute |
2871
|
on behalf of each participant in the optional retirement program |
2872
|
an amount equal to the normal cost portion of the employer |
2873
|
retirement contribution which would be required if the |
2874
|
participant were a regular member of the Florida Retirement |
2875
|
System defined benefit program, plus the portion of the |
2876
|
contribution rate required in s. 112.363(8) that would otherwise |
2877
|
be assigned to the Retiree Health Insurance Subsidy Trust Fund. |
2878
|
Effective July 1, 2001, each employer shall contribute on behalf |
2879
|
of each participant in the optional program an amount equal to |
2880
|
10.43 percent of the participant's gross monthly compensation. |
2881
|
The divisiondepartmentshall deduct an amount approved by the |
2882
|
Legislature to provide for the administration of this program. |
2883
|
The payment of the contributions to the optional program which |
2884
|
is required by this paragraph for each participant shall be made |
2885
|
by the employer to the divisiondepartment, which shall forward |
2886
|
the contributions to the designated company or companies |
2887
|
contracting for payment of benefits for the participant under |
2888
|
the program. However, such contributions paid on behalf of an |
2889
|
employee described in paragraph (3)(c) shall not be forwarded to |
2890
|
a company and shall not begin to accrue interest until the |
2891
|
employee has executed an annuity contract and notified the |
2892
|
divisiondepartment. |
2893
|
(b) Each employer shall contribute on behalf of each |
2894
|
participant in the optional retirement program an amount equal |
2895
|
to the unfunded actuarial accrued liability portion of the |
2896
|
employer contribution which would be required for members of the |
2897
|
Florida Retirement System. This contribution shall be paid to |
2898
|
the divisiondepartmentfor transfer to the Florida Retirement |
2899
|
System Trust Fund. |
2900
|
(c) An Optional Retirement Program Trust Fund shall be |
2901
|
established in the State Treasury and administered by the |
2902
|
divisiondepartmentto make payments to the provider companies |
2903
|
on behalf of the optional retirement program participants, and |
2904
|
to transfer the unfunded liability portion of the state optional |
2905
|
retirement program contributions to the Florida Retirement |
2906
|
System Trust Fund. |
2907
|
(6) ADMINISTRATION OF PROGRAM.-- |
2908
|
(a) The optional retirement program authorized by this |
2909
|
section shall be administered by the divisiondepartment. The |
2910
|
divisiondepartmentshall adopt rules establishing the |
2911
|
responsibilities of the State Board of Education and |
2912
|
institutions in the State University System in administering the |
2913
|
optional retirement program. The State Board of Education shall, |
2914
|
no more than 90 days after July 1, 1983, submit to the division |
2915
|
departmentits recommendations for the contracts to be offered |
2916
|
by the companies chosen by the divisiondepartment. The |
2917
|
recommendations of the board shall include the following: |
2918
|
1. The nature and extent of the rights and benefits in |
2919
|
relation to the required contributions; and |
2920
|
2. The suitability of the rights and benefits to the needs |
2921
|
of the participants and the interests of the institutions in the |
2922
|
recruitment and retention of eligible employees. |
2923
|
(b) After receiving and considering the recommendations of |
2924
|
the State Board of Education, the divisiondepartmentshall |
2925
|
designate no more than four companies from which contracts may |
2926
|
be purchased under the program and shall approve the form and |
2927
|
content of the optional retirement program contracts. Upon |
2928
|
application by a qualified Florida domestic company, the |
2929
|
divisiondepartmentshall give reasonable notice to all other |
2930
|
such companies that it intends to designate one of such |
2931
|
companies as a fifth company from which contracts may be |
2932
|
purchased pursuant to this section and that they may apply for |
2933
|
such designation prior to the deadline established by said |
2934
|
notice. At least 60 days after giving such notice and upon |
2935
|
receipt of the recommendation of the State Board of Education, |
2936
|
the divisiondepartmentshall so designate one of such companies |
2937
|
as the fifth company from which such contracts may be purchased. |
2938
|
(c) Effective July 1, 1997, the State Board of |
2939
|
Administration shall review and make recommendations to the |
2940
|
divisiondepartmenton the acceptability of all investment |
2941
|
products proposed by provider companies of the optional |
2942
|
retirement program before they are offered through annuity |
2943
|
contracts to the participants and may advise the division |
2944
|
departmentof any changes necessary to ensure that the optional |
2945
|
retirement program offers an acceptable mix of investment |
2946
|
products. The divisiondepartmentshall make the final |
2947
|
determination as to whether an investment product will be |
2948
|
approved for the program. |
2949
|
(d) The provisions of each contract applicable to a |
2950
|
participant in the optional retirement program shall be |
2951
|
contained in a written program description which shall include a |
2952
|
report of pertinent financial and actuarial information on the |
2953
|
solvency and actuarial soundness of the program and the benefits |
2954
|
applicable to the participant. Such description shall be |
2955
|
furnished by the companies to each participant in the program |
2956
|
and to the divisiondepartmentupon commencement of |
2957
|
participation in the program and annually thereafter. |
2958
|
(e) The divisiondepartmentshall ensure that each |
2959
|
participant in the optional retirement program is provided an |
2960
|
accounting of the total contribution and the annual contribution |
2961
|
made by and on behalf of such participant. |
2962
|
Section 45. Paragraph (b) of subsection (3) and paragraphs |
2963
|
(a) and (b) of subsection (14) of section 121.40, Florida |
2964
|
Statutes, are amended to read: |
2965
|
121.40 Cooperative extension personnel at the Institute of |
2966
|
Food and Agricultural Sciences; supplemental retirement |
2967
|
benefits.-- |
2968
|
(3) DEFINITIONS.--The definitions provided in s. 121.021 |
2969
|
shall not apply to this section except when specifically cited. |
2970
|
For the purposes of this section, the following words or phrases |
2971
|
have the respective meanings set forth: |
2972
|
(b) "DivisionDepartment" means the Division of Retirement |
2973
|
of the State Board of AdministrationDepartment of Management |
2974
|
Services. |
2975
|
(14) ADMINISTRATION OF SYSTEM.-- |
2976
|
(a) The divisiondepartmentshall make such rules as are |
2977
|
necessary for the effective and efficient administration of this |
2978
|
system. The executive director of the State Board of |
2979
|
Administrationsecretary of the departmentshall be the |
2980
|
administrator of the system. The funds to pay the expenses for |
2981
|
such administration shall be appropriated from the interest |
2982
|
earned on investments made for the trust fund. |
2983
|
(b) The divisiondepartmentis authorized to require |
2984
|
oaths, by affidavit or otherwise, and acknowledgments from |
2985
|
persons in connection with the administration of its duties and |
2986
|
responsibilities under this section. |
2987
|
Section 46. Subsection (3) of section 121.45, Florida |
2988
|
Statutes, is amended to read: |
2989
|
121.45 Interstate compacts relating to pension |
2990
|
portability.-- |
2991
|
(3) ESTABLISHMENT OF COMPACTS.-- |
2992
|
(a) The divisionDepartment of Management Servicesis |
2993
|
authorized and directed to survey other state retirement systems |
2994
|
to determine if such retirement systems are interested in |
2995
|
developing an interstate compact with Florida. |
2996
|
(b) If any such state is interested in pursuing the |
2997
|
matter, the divisiondepartmentshall confer with the other |
2998
|
state and the consulting actuaries of both states, and shall |
2999
|
present its findings to the committees having jurisdiction over |
3000
|
retirement matters in the Legislature, and to representatives of |
3001
|
affected certified bargaining units, in order to determine the |
3002
|
feasibility of developing a portability compact, what groups |
3003
|
should be covered, and the goals and priorities which should |
3004
|
guide such development. |
3005
|
(c) Upon a determination that such a compact is feasible |
3006
|
and upon request of the Legislature, the divisiondepartment, |
3007
|
together with its consulting actuaries, shall, in accordance |
3008
|
with suchsaidgoals and priorities, develop a proposal under |
3009
|
which retirement credit may be transferred to or from Florida in |
3010
|
an actuarially sound manner. |
3011
|
(d) Once a proposal has been developed, the division |
3012
|
departmentshall contract with its consulting actuaries to |
3013
|
conduct an actuarial study of the proposal to determine the cost |
3014
|
to the Florida Retirement System Trust Fund and the State of |
3015
|
Florida. |
3016
|
(e) After the actuarial study has been completed, the |
3017
|
divisiondepartmentshall present its findings and the actuarial |
3018
|
study to the Legislature for consideration. If either house of |
3019
|
the Legislature elects to enter into such a compact, it shall be |
3020
|
introduced in the form of a proposed committee bill to the full |
3021
|
Legislature during the same or next regular session. |
3022
|
Section 47. Subsection (2), paragraphs (a), (b), and (c) |
3023
|
of subsection (4), paragraph (a) of subsection (5), paragraphs |
3024
|
(a), (b), (c), and (e) of subsection (8), paragraph (c) of |
3025
|
subsection (9), paragraphs (a), (c), and (f) of subsection (10), |
3026
|
subsection (11), and paragraph (b) of subsection (12) of section |
3027
|
121.4501, Florida Statutes, are amended to read: |
3028
|
121.4501 Public Employee Optional Retirement Program.-- |
3029
|
(2) DEFINITIONS.--As used in this part, the term: |
3030
|
(a) "Approved provider" or "provider" means a private |
3031
|
sector company that is selected and approved by the division |
3032
|
state boardto offer one or more investment products or services |
3033
|
to the Public Employee Optional Retirement Program. The term |
3034
|
includes a bundled provider that offers participants a range of |
3035
|
individually allocated or unallocated investment products and |
3036
|
may offer a range of administrative and customer services, which |
3037
|
may include accounting and administration of individual |
3038
|
participant benefits and contributions; individual participant |
3039
|
recordkeeping; asset purchase, control, and safekeeping; direct |
3040
|
execution of the participant's instructions as to asset and |
3041
|
contribution allocation; calculation of daily net asset values; |
3042
|
direct access to participant account information; periodic |
3043
|
reporting to participants, at least quarterly, on account |
3044
|
balances and transactions; guidance, advice, and allocation |
3045
|
services directly relating to its own investment options or |
3046
|
products, but only if the bundled provider complies with the |
3047
|
standard of care of s. 404(a)(1)(A-B) of the Employee Retirement |
3048
|
Income Security Act of 1974 (ERISA) and if providing such |
3049
|
guidance, advice, or allocation services does not constitute a |
3050
|
prohibited transaction under s. 4975(c)(1) of the Internal |
3051
|
Revenue Code or s. 406 of ERISA, notwithstanding that such |
3052
|
prohibited transaction provisions do not apply to the optional |
3053
|
retirement program; a broad array of distribution options; asset |
3054
|
allocation; and retirement counseling and education. Private |
3055
|
sector companies include investment management companies, |
3056
|
insurance companies, depositories, and mutual fund companies. |
3057
|
(b) "Average monthly compensation" means one-twelfth of |
3058
|
average final compensation as defined in s. 121.021(24). |
3059
|
(c) "Covered employment" means employment in a regularly |
3060
|
established position as defined in s. 121.021(52). |
3061
|
(d) "Department" means the Department of Management |
3062
|
Services.
|
3063
|
(d)(e) "Division" means the Division of Retirement of the |
3064
|
State Board of Administrationwithin the Department of |
3065
|
Management Services. |
3066
|
(e)(f)"Eligible employee" means an officer or employee, |
3067
|
as defined in s. 121.021(11), who: |
3068
|
1. Is a member of, or is eligible for membership in, the |
3069
|
Florida Retirement System, including any renewed member of the |
3070
|
Florida Retirement System; |
3071
|
2. Participates in, or is eligible to participate in, the |
3072
|
Senior Management Service Optional Annuity Program as |
3073
|
established under s. 121.055(6); or |
3074
|
3. Is eligible to participate in, but does not participate |
3075
|
in, the State University System Optional Retirement Program |
3076
|
established under s. 121.35 or the State Community College |
3077
|
System Optional Retirement Program established under s. |
3078
|
121.051(2)(c). |
3079
|
|
3080
|
The term does not include any member participating in the |
3081
|
Deferred Retirement Option Program established under s. |
3082
|
121.091(13) or any employee participating in an optional |
3083
|
retirement program established under s. 121.051(2)(c) or s. |
3084
|
121.35. |
3085
|
(f)(g)"Employer" means an employer, as defined in s. |
3086
|
121.021(10), of an eligible employee. |
3087
|
(g)(h)"Participant" means an eligible employee who elects |
3088
|
to participate in the Public Employee Optional Retirement |
3089
|
Program and enrolls in such optional program as provided in |
3090
|
subsection (4). |
3091
|
(h)(i)"Public Employee Optional Retirement Program," |
3092
|
"optional program," or "optional retirement program" means the |
3093
|
alternative defined contribution retirement program established |
3094
|
under this section. |
3095
|
(i)(j)"State board" or "board" means the State Board of |
3096
|
Administration. |
3097
|
(j)(k)"Trustees" means Trustees of the State Board of |
3098
|
Administration. |
3099
|
(k)(l)"Vested" or "vesting" means the guarantee that a |
3100
|
participant is eligible to receive a retirement benefit upon |
3101
|
completion of the required years of service under the Public |
3102
|
Employee Optional Retirement Program. |
3103
|
(4) PARTICIPATION; ENROLLMENT.-- |
3104
|
(a)1. With respect to an eligible employee who is employed |
3105
|
in a regularly established position on June 1, 2002, by a state |
3106
|
employer: |
3107
|
a. Any such employee may elect to participate in the |
3108
|
Public Employee Optional Retirement Program in lieu of retaining |
3109
|
his or her membership in the defined benefit program of the |
3110
|
Florida Retirement System. The election must be made in writing |
3111
|
or by electronic means and must be filed with the third-party |
3112
|
administrator by August 31, 2002, or, in the case of an active |
3113
|
employee who is on a leave of absence on April 1, 2002, by |
3114
|
August 31, 2002, or within 90 days after the conclusion of the |
3115
|
leave of absence, whichever is later. This election is |
3116
|
irrevocable, except as provided in paragraph (e). Upon making |
3117
|
such election, the employee shall be enrolled as a participant |
3118
|
of the Public Employee Optional Retirement Program, the |
3119
|
employee's membership in the Florida Retirement System shall be |
3120
|
governed by the provisions of this part, and the employee's |
3121
|
membership in the defined benefit program of the Florida |
3122
|
Retirement System shall terminate. The employee's enrollment in |
3123
|
the Public Employee Optional Retirement Program shall be |
3124
|
effective the first day of the month for which a full month's |
3125
|
employer contribution is made to the optional program. |
3126
|
b. Any such employee who fails to elect to participate in |
3127
|
the Public Employee Optional Retirement Program within the |
3128
|
prescribed time period is deemed to have elected to retain |
3129
|
membership in the defined benefit program of the Florida |
3130
|
Retirement System, and the employee's option to elect to |
3131
|
participate in the optional program is forfeited. |
3132
|
2. With respect to employees who become eligible to |
3133
|
participate in the Public Employee Optional Retirement Program |
3134
|
by reason of employment in a regularly established position with |
3135
|
a state employer commencing after April 1, 2002: |
3136
|
a. Any such employee shall, by default, be enrolled in the |
3137
|
defined benefit retirement program of the Florida Retirement |
3138
|
System at the commencement of employment, and may, by the end of |
3139
|
the 5th month following the employee's month of hire, elect to |
3140
|
participate in the Public Employee Optional Retirement Program. |
3141
|
The employee's election must be made in writing or by electronic |
3142
|
means and must be filed with the third-party administrator. The |
3143
|
election to participate in the optional program is irrevocable, |
3144
|
except as provided in paragraph (e). |
3145
|
b. If the employee files such election within the |
3146
|
prescribed time period, enrollment in the optional program shall |
3147
|
be effective on the first day of employment. The employer |
3148
|
retirement contributions paid through the month of the employee |
3149
|
plan change shall be transferred to the optional program, and, |
3150
|
effective the first day of the next month, the employer shall |
3151
|
pay the applicable contributions based on the employee |
3152
|
membership class in the optional program. |
3153
|
c. Any such employee who fails to elect to participate in |
3154
|
the Public Employee Optional Retirement Program within the |
3155
|
prescribed time period is deemed to have elected to retain |
3156
|
membership in the defined benefit program of the Florida |
3157
|
Retirement System, and the employee's option to elect to |
3158
|
participate in the optional program is forfeited. |
3159
|
3. For purposes of this paragraph, "state employer" means |
3160
|
any agency, board, branch, commission, community college, |
3161
|
department, institution, institution of higher education, or |
3162
|
water management district of the state, which participates in |
3163
|
the Florida Retirement System for the benefit of certain |
3164
|
employees. |
3165
|
(b)1. With respect to an eligible employee who is employed |
3166
|
in a regularly established position on September 1, 2002, by a |
3167
|
district school board employer: |
3168
|
a. Any such employee may elect to participate in the |
3169
|
Public Employee Optional Retirement Program in lieu of retaining |
3170
|
his or her membership in the defined benefit program of the |
3171
|
Florida Retirement System. The election must be made in writing |
3172
|
or by electronic means and must be filed with the third-party |
3173
|
administrator by November 30, or, in the case of an active |
3174
|
employee who is on a leave of absence on July 1, 2002, by |
3175
|
November 30, 2002, or within 90 days after the conclusion of the |
3176
|
leave of absence, whichever is later. This election is |
3177
|
irrevocable, except as provided in paragraph (e). Upon making |
3178
|
such election, the employee shall be enrolled as a participant |
3179
|
of the Public Employee Optional Retirement Program, the |
3180
|
employee's membership in the Florida Retirement System shall be |
3181
|
governed by the provisions of this part, and the employee's |
3182
|
membership in the defined benefit program of the Florida |
3183
|
Retirement System shall terminate. The employee's enrollment in |
3184
|
the Public Employee Optional Retirement Program shall be |
3185
|
effective the first day of the month for which a full month's |
3186
|
employer contribution is made to the optional program. |
3187
|
b. Any such employee who fails to elect to participate in |
3188
|
the Public Employee Optional Retirement Program within the |
3189
|
prescribed time period is deemed to have elected to retain |
3190
|
membership in the defined benefit program of the Florida |
3191
|
Retirement System, and the employee's option to elect to |
3192
|
participate in the optional program is forfeited. |
3193
|
2. With respect to employees who become eligible to |
3194
|
participate in the Public Employee Optional Retirement Program |
3195
|
by reason of employment in a regularly established position with |
3196
|
a district school board employer commencing after July 1, 2002: |
3197
|
a. Any such employee shall, by default, be enrolled in the |
3198
|
defined benefit retirement program of the Florida Retirement |
3199
|
System at the commencement of employment, and may, by the end of |
3200
|
the 5th month following the employee's month of hire, elect to |
3201
|
participate in the Public Employee Optional Retirement Program. |
3202
|
The employee's election must be made in writing or by electronic |
3203
|
means and must be filed with the third-party administrator. The |
3204
|
election to participate in the optional program is irrevocable, |
3205
|
except as provided in paragraph (e). |
3206
|
b. If the employee files such election within the |
3207
|
prescribed time period, enrollment in the optional program shall |
3208
|
be effective on the first day of employment. The employer |
3209
|
retirement contributions paid through the month of the employee |
3210
|
plan change shall be transferred to the optional program, and, |
3211
|
effective the first day of the next month, the employer shall |
3212
|
pay the applicable contributions based on the employee |
3213
|
membership class in the optional program. |
3214
|
c. Any such employee who fails to elect to participate in |
3215
|
the Public Employee Optional Retirement Program within the |
3216
|
prescribed time period is deemed to have elected to retain |
3217
|
membership in the defined benefit program of the Florida |
3218
|
Retirement System, and the employee's option to elect to |
3219
|
participate in the optional program is forfeited. |
3220
|
3. For purposes of this paragraph, "district school board |
3221
|
employer" means any district school board that participates in |
3222
|
the Florida Retirement System for the benefit of certain |
3223
|
employees, or a charter school or charter technical career |
3224
|
center that participates in the Florida Retirement System as |
3225
|
provided in s. 121.051(2)(d). |
3226
|
(c)1. With respect to an eligible employee who is employed |
3227
|
in a regularly established position on December 1, 2002, by a |
3228
|
local employer: |
3229
|
a. Any such employee may elect to participate in the |
3230
|
Public Employee Optional Retirement Program in lieu of retaining |
3231
|
his or her membership in the defined benefit program of the |
3232
|
Florida Retirement System. The election must be made in writing |
3233
|
or by electronic means and must be filed with the third-party |
3234
|
administrator by February 28, 2003, or, in the case of an active |
3235
|
employee who is on a leave of absence on October 1, 2002, by |
3236
|
February 28, 2003, or within 90 days after the conclusion of the |
3237
|
leave of absence, whichever is later. This election is |
3238
|
irrevocable, except as provided in paragraph (e). Upon making |
3239
|
such election, the employee shall be enrolled as a participant |
3240
|
of the Public Employee Optional Retirement Program, the |
3241
|
employee's membership in the Florida Retirement System shall be |
3242
|
governed by the provisions of this part, and the employee's |
3243
|
membership in the defined benefit program of the Florida |
3244
|
Retirement System shall terminate. The employee's enrollment in |
3245
|
the Public Employee Optional Retirement Program shall be |
3246
|
effective the first day of the month for which a full month's |
3247
|
employer contribution is made to the optional program. |
3248
|
b. Any such employee who fails to elect to participate in |
3249
|
the Public Employee Optional Retirement Program within the |
3250
|
prescribed time period is deemed to have elected to retain |
3251
|
membership in the defined benefit program of the Florida |
3252
|
Retirement System, and the employee's option to elect to |
3253
|
participate in the optional program is forfeited. |
3254
|
2. With respect to employees who become eligible to |
3255
|
participate in the Public Employee Optional Retirement Program |
3256
|
by reason of employment in a regularly established position with |
3257
|
a local employer commencing after October 1, 2002: |
3258
|
a. Any such employee shall, by default, be enrolled in the |
3259
|
defined benefit retirement program of the Florida Retirement |
3260
|
System at the commencement of employment, and may, by the end of |
3261
|
the 5th month following the employee's month of hire, elect to |
3262
|
participate in the Public Employee Optional Retirement Program. |
3263
|
The employee's election must be made in writing or by electronic |
3264
|
means and must be filed with the third-party administrator. The |
3265
|
election to participate in the optional program is irrevocable, |
3266
|
except as provided in paragraph (e). |
3267
|
b. If the employee files such election within the |
3268
|
prescribed time period, enrollment in the optional program shall |
3269
|
be effective on the first day of employment. The employer |
3270
|
retirement contributions paid through the month of the employee |
3271
|
plan change shall be transferred to the optional program, and, |
3272
|
effective the first day of the next month, the employer shall |
3273
|
pay the applicable contributions based on the employee |
3274
|
membership class in the optional program. |
3275
|
c. Any such employee who fails to elect to participate in |
3276
|
the Public Employee Optional Retirement Program within the |
3277
|
prescribed time period is deemed to have elected to retain |
3278
|
membership in the defined benefit program of the Florida |
3279
|
Retirement System, and the employee's option to elect to |
3280
|
participate in the optional program is forfeited. |
3281
|
3. For purposes of this paragraph, "local employer" means |
3282
|
any employer not included in paragraph (a) or paragraph (b). |
3283
|
(5) CONTRIBUTIONS.-- |
3284
|
(a) Each employer shall contribute on behalf of each |
3285
|
participant in the Public Employee Optional Retirement Program, |
3286
|
as provided in part III of this chapter. The state board, acting |
3287
|
as plan fiduciary, shall ensure that all plan assets are held in |
3288
|
a trust, pursuant to s. 401 of the Internal Revenue Code. The |
3289
|
fiduciary shall ensure that said contributions are allocated as |
3290
|
follows: |
3291
|
1. The portion earmarked for participant accounts shall be |
3292
|
used to purchase interests in the appropriate investment |
3293
|
vehicles for the accounts of each participant as specified by |
3294
|
the participant, or in accordance with paragraph (4)(d). |
3295
|
2. The portion earmarked for administrative and |
3296
|
educational expenses shall be transferred to the board. |
3297
|
3. The portion earmarked for disability benefits shall be |
3298
|
transferred to the divisiondepartment. |
3299
|
(8) ADMINISTRATION OF PROGRAM.-- |
3300
|
(a) The Public Employee Optional Retirement Program shall |
3301
|
be administered by the state board and affected employers. The |
3302
|
board is authorized to require oaths, by affidavit or otherwise, |
3303
|
and acknowledgments from persons in connection with the |
3304
|
administration of its duties and responsibilities under this |
3305
|
chapter. No oath, by affidavit or otherwise, shall be required |
3306
|
of an employee participant at the time of election. |
3307
|
Acknowledgment of an employee's election to participate in the |
3308
|
program shall be no greater than necessary to confirm the |
3309
|
employee's election. The board shall adopt rules establishing |
3310
|
the role and responsibilities of affected state, local |
3311
|
government, and education-related employers, the state board, |
3312
|
the divisiondepartment, and third-party contractors in |
3313
|
administering the Public Employee Optional Retirement Program. |
3314
|
The divisiondepartmentshall adopt rules necessary to implement |
3315
|
the optional program in coordination with the defined benefit |
3316
|
retirement program and the disability benefits available under |
3317
|
the optional program. |
3318
|
(b)1. The state board shall select and contract with one |
3319
|
third-party administrator to provide administrative services if |
3320
|
those services cannot be competitively and contractually |
3321
|
provided by the Division of Retirement within the Department of |
3322
|
Management Services. With the approval of the state board, the |
3323
|
third-party administrator may subcontract with other |
3324
|
organizations or individuals to provide components of the |
3325
|
administrative services. As a cost of administration, the board |
3326
|
may compensate any such contractor for its services, in |
3327
|
accordance with the terms of the contract, as is deemed |
3328
|
necessary or proper by the board. The third-party administrator |
3329
|
may not be an approved provider or be affiliated with an |
3330
|
approved provider. |
3331
|
2. These administrative services may include, but are not |
3332
|
limited to, enrollment of eligible employees, collection of |
3333
|
employer contributions, disbursement of such contributions to |
3334
|
approved providers in accordance with the allocation directions |
3335
|
of participants; services relating to consolidated billing; |
3336
|
individual and collective recordkeeping and accounting; asset |
3337
|
purchase, control, and safekeeping; and direct disbursement of |
3338
|
funds to and from the third-party administrator, the division, |
3339
|
the board, employers, participants, approved providers, and |
3340
|
beneficiaries. This section does not prevent or prohibit a |
3341
|
bundled provider from providing any administrative or customer |
3342
|
service, including accounting and administration of individual |
3343
|
participant benefits and contributions; individual participant |
3344
|
recordkeeping; asset purchase, control, and safekeeping; direct |
3345
|
execution of the participant's instructions as to asset and |
3346
|
contribution allocation; calculation of daily net asset values; |
3347
|
direct access to participant account information; or periodic |
3348
|
reporting to participants, at least quarterly, on account |
3349
|
balances and transactions, if these services are authorized by |
3350
|
the board as part of the contract. |
3351
|
3. The state board shall select and contract with one or |
3352
|
more organizations to provide educational services. With |
3353
|
approval of the board, the organizations may subcontract with |
3354
|
other organizations or individuals to provide components of the |
3355
|
educational services. As a cost of administration, the board may |
3356
|
compensate any such contractor for its services in accordance |
3357
|
with the terms of the contract, as is deemed necessary or proper |
3358
|
by the board. The education organization may not be an approved |
3359
|
provider or be affiliated with an approved provider. |
3360
|
4. Educational services shall be designed by the board and |
3361
|
departmentto assist employers, eligible employees, |
3362
|
participants, and beneficiaries in order to maintain compliance |
3363
|
with United States Department of Labor regulations under s. |
3364
|
404(c) of the Employee Retirement Income Security Act of 1974 |
3365
|
and to assist employees in their choice of defined benefit or |
3366
|
defined contribution retirement alternatives. Educational |
3367
|
services include, but are not limited to, disseminating |
3368
|
educational materials; providing retirement planning education; |
3369
|
explaining the differences between the defined benefit |
3370
|
retirement plan and the defined contribution retirement plan; |
3371
|
and offering financial planning guidance on matters such as |
3372
|
investment diversification, investment risks, investment costs, |
3373
|
and asset allocation. An approved provider may also provide |
3374
|
educational information, including retirement planning and |
3375
|
investment allocation information concerning its products and |
3376
|
services. |
3377
|
(c)1. In evaluating and selecting a third-party |
3378
|
administrator, the board shall establish criteria under which it |
3379
|
shall consider the relative capabilities and qualifications of |
3380
|
each proposed administrator. In developing such criteria, the |
3381
|
board shall consider: |
3382
|
a. The administrator's demonstrated experience in |
3383
|
providing administrative services to public or private sector |
3384
|
retirement systems. |
3385
|
b. The administrator's demonstrated experience in |
3386
|
providing daily valued recordkeeping to defined contribution |
3387
|
plans. |
3388
|
c. The administrator's ability and willingness to |
3389
|
coordinate its activities with the Florida Retirement System |
3390
|
employers, the board, and the division, and to supply to such |
3391
|
employers, the board, and the division the information and data |
3392
|
they require, including, but not limited to, monthly management |
3393
|
reports, quarterly participant reports, and ad hoc reports |
3394
|
requested by the department orboard. |
3395
|
d. The cost-effectiveness and levels of the administrative |
3396
|
services provided. |
3397
|
e. The administrator's ability to interact with the |
3398
|
participants, the employers, the board, the division, and the |
3399
|
providers; the means by which participants may access account |
3400
|
information, direct investment of contributions, make changes to |
3401
|
their accounts, transfer moneys between available investment |
3402
|
vehicles, and transfer moneys between investment products; and |
3403
|
any fees that apply to such activities. |
3404
|
f. Any other factor deemed necessary by the Trustees of |
3405
|
the State Board of Administration. |
3406
|
g. The recommendations of the Public Employee Optional |
3407
|
Retirement Program Advisory Committee established in subsection |
3408
|
(12). |
3409
|
2. In evaluating and selecting an educational provider, |
3410
|
the board shall establish criteria under which it shall consider |
3411
|
the relative capabilities and qualifications of each proposed |
3412
|
educational provider. In developing such criteria, the board |
3413
|
shall consider: |
3414
|
a. Demonstrated experience in providing educational |
3415
|
services to public or private sector retirement systems. |
3416
|
b. Ability and willingness to coordinate its activities |
3417
|
with the Florida Retirement System employers, the board, and the |
3418
|
division, and to supply to such employers, the board, and the |
3419
|
division the information and data they require, including, but |
3420
|
not limited to, reports on educational contacts. |
3421
|
c. The cost-effectiveness and levels of the educational |
3422
|
services provided. |
3423
|
d. Ability to provide educational services via different |
3424
|
media, including, but not limited to, the Internet, personal |
3425
|
contact, seminars, brochures, and newsletters. |
3426
|
e. Any other factor deemed necessary by the Trustees of |
3427
|
the State Board of Administration. |
3428
|
f. The recommendations of the Public Employee Optional |
3429
|
Retirement Program Advisory Committee established in subsection |
3430
|
(12). |
3431
|
3. The establishment of the criteria shall be solely |
3432
|
within the discretion of the board. |
3433
|
(e)1. The board may contract with any consultant for |
3434
|
professional services, including legal, consulting, accounting, |
3435
|
and actuarial services, deemed necessary to implement and |
3436
|
administer the optional program by the Trustees of the State |
3437
|
Board of Administration. The board may enter into a contract |
3438
|
with one or more vendors to provide low-cost investment advice |
3439
|
to participants, supplemental to education provided by the |
3440
|
third-party administrator. All fees under any such contract |
3441
|
shall be paid by those participants who choose to use the |
3442
|
services of the vendor. |
3443
|
2. The boarddepartmentmay contract with consultants for |
3444
|
professional services, including legal, consulting, accounting, |
3445
|
and actuarial services, deemed necessary to implement and |
3446
|
administer the optional program in coordination with the defined |
3447
|
benefit program of the Florida Retirement System. The division |
3448
|
department, in coordination with the board, may enter into a |
3449
|
contract with the third-party administrator in order to |
3450
|
coordinate services common to the various programs within the |
3451
|
Florida Retirement System. |
3452
|
(9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.-- |
3453
|
(c) In evaluating and selecting approved providers and |
3454
|
products, the board shall establish criteria under which it |
3455
|
shall consider the relative capabilities and qualifications of |
3456
|
each proposed provider company and product. In developing such |
3457
|
criteria, the board shall consider the following to the extent |
3458
|
such factors may be applied in connection with investment |
3459
|
products, services, or providers: |
3460
|
1. Experience in the United States providing retirement |
3461
|
products and related financial services under defined |
3462
|
contribution retirement plans. |
3463
|
2. Financial strength and stability which shall be |
3464
|
evidenced by the highest ratings assigned by nationally |
3465
|
recognized rating services when comparing proposed providers |
3466
|
that are so rated. |
3467
|
3. Intrastate and interstate portability of the product |
3468
|
offered, including early withdrawal options. |
3469
|
4. Compliance with the Internal Revenue Code. |
3470
|
5. The cost-effectiveness of the product provided and the |
3471
|
levels of service supporting the product relative to its |
3472
|
benefits and its characteristics, including, without limitation, |
3473
|
the level of risk borne by the provider. |
3474
|
6. The provider company's ability and willingness to |
3475
|
coordinate its activities with Florida Retirement System |
3476
|
employers, the divisiondepartment, and the board, and to supply |
3477
|
to such employers, the divisiondepartment, and the board the |
3478
|
information and data they require. |
3479
|
7. The methods available to participants to interact with |
3480
|
the provider company; the means by which participants may access |
3481
|
account information, direct investment of contributions, make |
3482
|
changes to their accounts, transfer moneys between available |
3483
|
investment vehicles, and transfer moneys between provider |
3484
|
companies; and any fees that apply to such activities. |
3485
|
8. The provider company's policies with respect to the |
3486
|
transfer of individual account balances, contributions, and |
3487
|
earnings thereon, both internally among investment products |
3488
|
offered by the provider company and externally between approved |
3489
|
providers, as well as any fees, charges, reductions, or |
3490
|
penalties that may be applied. |
3491
|
9. An evaluation of specific investment products, taking |
3492
|
into account each product's experience in meeting its investment |
3493
|
return objectives net of all related fees, expenses, and |
3494
|
charges, including, but not limited to, investment management |
3495
|
fees, loads, distribution and marketing fees, custody fees, |
3496
|
recordkeeping fees, education fees, annuity expenses, and |
3497
|
consulting fees. |
3498
|
10. Organizational factors, including, but not limited to, |
3499
|
financial solvency, organizational depth, and experience in |
3500
|
providing institutional and retail investment services. |
3501
|
(10) EDUCATION COMPONENT.-- |
3502
|
(a) The board, in coordination with the department,shall |
3503
|
provide for an education component for system members in a |
3504
|
manner consistent with the provisions of this section. The |
3505
|
education component must be available to eligible employees at |
3506
|
least 90 days prior to the beginning date of the election period |
3507
|
for the employees of the respective types of employers. |
3508
|
(c) The board, in coordination with the department,shall |
3509
|
provide for an initial and ongoing transfer education component |
3510
|
to provide system members with information necessary to make |
3511
|
informed plan choice decisions. The transfer education component |
3512
|
must include, but is not limited to, information on: |
3513
|
1. The amount of money available to a member to transfer |
3514
|
to the defined contribution program. |
3515
|
2. The features of and differences between the defined |
3516
|
benefit program and the defined contribution program, both |
3517
|
generally and specifically, as those differences may affect the |
3518
|
member. |
3519
|
3. The expected benefit available if the member were to |
3520
|
retire under each of the retirement programs, based on |
3521
|
appropriate alternative sets of assumptions. |
3522
|
4. The rate of return from investments in the defined |
3523
|
contribution program and the period of time over which such rate |
3524
|
of return must be achieved to equal or exceed the expected |
3525
|
monthly benefit payable to the member under the defined benefit |
3526
|
program. |
3527
|
5. The historical rates of return for the investment |
3528
|
alternatives available in the defined contribution programs. |
3529
|
6. The benefits and historical rates of return on |
3530
|
investments available in a typical deferred compensation plan or |
3531
|
a typical plan under s. 403(b) of the Internal Revenue Code for |
3532
|
which the employee may be eligible. |
3533
|
7. The program choices available to employees of the State |
3534
|
University System and the comparative benefits of each available |
3535
|
program, if applicable. |
3536
|
8. Payout options available in each of the retirement |
3537
|
programs. |
3538
|
(f) The board and the departmentshall also establish a |
3539
|
communication component to provide program information to |
3540
|
participating employers and the employers' personnel and payroll |
3541
|
officers and to explain their respective responsibilities in |
3542
|
conjunction with the retirement programs. |
3543
|
(11) PARTICIPANT INFORMATION REQUIREMENTS.--The board |
3544
|
shall ensure that each participant is provided a quarterly |
3545
|
statement that accounts for the contributions made on behalf of |
3546
|
such participant; the interest and investment earnings thereon; |
3547
|
and any fees, penalties, or other deductions that apply thereto. |
3548
|
At a minimum, such statements must: |
3549
|
(a) Indicate the participant's investment options. |
3550
|
(b) State the market value of the account at the close of |
3551
|
the current quarter and previous quarter. |
3552
|
(c) Show account gains and losses for the period and |
3553
|
changes in account accumulation unit values for the period. |
3554
|
(d) Itemize account contributions for the quarter. |
3555
|
(e) Indicate any account changes due to adjustment of |
3556
|
contribution levels, reallocation of contributions, balance |
3557
|
transfers, or withdrawals. |
3558
|
(f) Set forth any fees, charges, penalties, and deductions |
3559
|
that apply to the account. |
3560
|
(g) Indicate the amount of the account in which the |
3561
|
participant is fully vested and the amount of the account in |
3562
|
which the participant is not vested. |
3563
|
(h) Indicate each investment product's performance |
3564
|
relative to an appropriate market benchmark. |
3565
|
|
3566
|
The third-party administrator shall provide quarterly and annual |
3567
|
summary reports to the board and any other reports requested by |
3568
|
the department orthe board. In any solicitation or offer of |
3569
|
coverage under an optional retirement program, a provider |
3570
|
company shall be governed by the contract readability provisions |
3571
|
of s. 627.4145, notwithstanding s. 627.4145(6)(c). In addition, |
3572
|
all descriptive materials must be prepared under the assumption |
3573
|
that the participant is an unsophisticated investor. Provider |
3574
|
companies must maintain an internal system of quality assurance, |
3575
|
have proven functional systems that are date-calculation |
3576
|
compliant, and be subject to a due-diligence inquiry that proves |
3577
|
their capacity and fitness to undertake service |
3578
|
responsibilities. |
3579
|
(12) ADVISORY COMMITTEES TO PROVIDE ADVICE AND |
3580
|
ASSISTANCE.--The Investment Advisory Council and the Public |
3581
|
Employee Optional Retirement Program Advisory Committee shall |
3582
|
assist the board in implementing and administering the Public |
3583
|
Employee Optional Retirement Program. |
3584
|
(b)1. The Public Employee Optional Retirement Program |
3585
|
Advisory Committee shall be composed of seven members. The |
3586
|
President of the Senate shall appoint two members, the Speaker |
3587
|
of the House of Representatives shall appoint two members, the |
3588
|
Governor shall appoint one member, the Treasurer shall appoint |
3589
|
one member, and the Comptroller shall appoint one member. The |
3590
|
members of the advisory committee shall elect a member as chair. |
3591
|
The appointments shall be made by September 1, 2000, and the |
3592
|
committee shall meet to organize by October 1, 2000. The initial |
3593
|
appointments shall be for a term of 24 months. Each appointing |
3594
|
authority shall fill any vacancy occurring among its appointees |
3595
|
for the remainder of the original term. |
3596
|
2. The advisory committee shall make recommendations on |
3597
|
the selection of the third-party administrator, the education |
3598
|
providers, and the investment products and providers. The |
3599
|
committee's recommendations on the third-party administrator |
3600
|
must be forwarded to the Trustees of the State Board of |
3601
|
Administration by January 1, 2001. The recommendations on the |
3602
|
education providers must be forwarded to the trustees by April |
3603
|
1, 2001. |
3604
|
3. The advisory committee's recommendations and activities |
3605
|
shall be guided by the best interests of the employees, |
3606
|
considering the interests of employers, and the intent of the |
3607
|
Legislature in establishing the Public Employee Optional |
3608
|
Retirement Program. |
3609
|
4. The staff of the state board and the departmentshall |
3610
|
assist the advisory committee. |
3611
|
Section 48. Subsections (1) and (6) of section 122.02, |
3612
|
Florida Statutes, are amended to read: |
3613
|
122.02 Definitions.--The following words and phrases as |
3614
|
used in this chapter shall have the following meaning unless a |
3615
|
different meaning is plainly required by the context: |
3616
|
(1) "State and county officers and employees" shall |
3617
|
include all full-time officers or employees who receive |
3618
|
compensation for services rendered from state or county funds, |
3619
|
or from funds of drainage districts or mosquito control |
3620
|
districts of a county or counties, or from funds of the State |
3621
|
Board of Administration or from funds of closed bank |
3622
|
receivership accounts or from funds of any state institution or |
3623
|
who receive compensation for employment or service from any |
3624
|
agency, branch, department, institution or board of the state, |
3625
|
or any county of the state, for service rendered the state or |
3626
|
county from funds from any source provided for their employment |
3627
|
or service regardless of whether the same is paid by state or |
3628
|
county warrant or not; provided that such compensation in |
3629
|
whatever form paid shall be specified in terms of fixed monthly |
3630
|
salaries by the employing state or county agency or state or |
3631
|
county official and shall not include amounts allowed for |
3632
|
professional employees for special or particular service or for |
3633
|
subsistence or travel expenses; provided further the division |
3634
|
departmentshall prescribe appropriate procedure for |
3635
|
contribution deduction out of such compensation in accordance |
3636
|
with the provisions of this chapter, provided further that such |
3637
|
officers and employees defined herein shall not include those |
3638
|
officers and employees excepted from the provisions by s. 122.18 |
3639
|
of this law. |
3640
|
(6) "DivisionDepartment" means the Division of Retirement |
3641
|
Department of Management Services. |
3642
|
Section 49. Paragraph (d) of subsection (6) and subsection |
3643
|
(9) of section 122.03, Florida Statutes, are amended to read: |
3644
|
122.03 Contributions; participants; prior service |
3645
|
credit.-- |
3646
|
(6) Any officer or employee who held office or was |
3647
|
employed by the state or a county of the state continuously from |
3648
|
May 1, 1959, and who has not previously received credit for, or |
3649
|
is not eligible to claim credit for, prior years of service |
3650
|
under subsection (2); or any officer or employee who holds |
3651
|
office or is employed by the state or a county of the state on |
3652
|
June 1, 1961, and is continuously employed; or any officer or |
3653
|
employee who holds office or is employed by the state or county |
3654
|
of the state after June 1, 1961, and who is continuously |
3655
|
employed for 3 years, during which period of time no back |
3656
|
payments may be made: |
3657
|
(d) Prior service allowance may be made only for those |
3658
|
periods in which state or county records of service and salary |
3659
|
are available, or at least three affidavits and such other |
3660
|
information as might be required by the divisiondepartmentto |
3661
|
meet the provisions of this law. |
3662
|
(9) The surviving spouse or other dependent of any member |
3663
|
whose employment is terminated by death shall, upon application |
3664
|
to the divisiondepartment, be permitted to pay the required |
3665
|
contributions for any service performed by the member which |
3666
|
could have been claimed by the member at the time of death. Such |
3667
|
service shall be added to the creditable service of the member |
3668
|
and shall be used in the calculation of any benefits which may |
3669
|
be payable to the surviving spouse or other surviving dependent. |
3670
|
Section 50. Subsection (2) of section 122.05, Florida |
3671
|
Statutes, is amended to read: |
3672
|
122.05 Legislator services included.-- |
3673
|
(2) The divisiondepartmentand state officials |
3674
|
administering suchsaidretirement system shall make the |
3675
|
contribution deductions required by law from the compensation |
3676
|
hereafter received by any of the saidparticipating members of |
3677
|
the Legislature for service rendered the State Legislature in |
3678
|
the same manner as in the case of other state employment. |
3679
|
Section 51. Subsection (2) of section 122.06, Florida |
3680
|
Statutes, is amended to read: |
3681
|
122.06 Legislative employee services included.-- |
3682
|
(2) The divisiondepartmentand other state officials |
3683
|
administering thesaidretirement system shall make the |
3684
|
contribution deductions required by law from the compensation |
3685
|
hereafter received by any of the said participating attaches for |
3686
|
service rendered the State Legislature in the same manner as in |
3687
|
the case of other state employment. |
3688
|
Section 52. Subsection (2) of section 122.07, Florida |
3689
|
Statutes, is amended to read: |
3690
|
122.07 Seasonal state employment included; time limit and |
3691
|
procedure for claiming.-- |
3692
|
(2) Any state employee as described in subsection (1) in |
3693
|
the classification set forth in s. 122.01 may elect to receive |
3694
|
credit as a state employee under the State and County Officers |
3695
|
and Employees' Retirement System by providing to the division |
3696
|
departmenta statement from the state in which he or she was |
3697
|
employed, listing days employed and monthly earnings and such |
3698
|
other information as may, in the opinion of the division |
3699
|
department, be necessary or appropriate in the carrying out of |
3700
|
this section. Credit shall be granted upon payment to the |
3701
|
divisiondepartmentby such employee of an amount equal to the |
3702
|
total retirement contribution that would have been required had |
3703
|
the member worked in this state during the period based on the |
3704
|
salary drawn by such employee during his or her last full month |
3705
|
of employment by the state or any department thereof for each |
3706
|
month during suchsaidfiscal year for which such employee was |
3707
|
not employed by the state or any department thereof, but was |
3708
|
employed by some other state, plus interest compounded annually |
3709
|
each June 30 from the date of the service in another state to |
3710
|
the date of payment at the rate of 4 percent until July 1, 1975, |
3711
|
and 6.5 percent thereafter. The member shall have until his or |
3712
|
her date of retirement to claim and purchase credit for such |
3713
|
employment in another state. |
3714
|
Section 53. Paragraph (a) of subsection (1), paragraph (b) |
3715
|
of subsection (4), and subsections (5) and (9) of section |
3716
|
122.08, Florida Statutes, are amended to read: |
3717
|
122.08 Requirements for retirement; |
3718
|
classifications.--There shall be two retirement classifications |
3719
|
for all state and county officers and employees participating |
3720
|
herein as hereafter provided in this section: |
3721
|
(1)(a) Any state or county officer or employee who has |
3722
|
attained normal retirement age, which shall be age 60 for a |
3723
|
person who had become a member prior to July 1, 1963, and age 62 |
3724
|
for a person who had or shall become a member on or after July |
3725
|
1, 1963, and has accumulated at least 10 years' service in the |
3726
|
aggregate within the contemplation of this law, and who has made |
3727
|
or makes contributions to the State and County Officers and |
3728
|
Employees' Retirement Trust Fund for 5 or more years as |
3729
|
prescribed in this law, may voluntarily retire from office or |
3730
|
employment and be entitled to receive retirement compensation, |
3731
|
the amount of which shall be 2 percent for each year of service |
3732
|
rendered, based upon the average final compensation, payable in |
3733
|
equal monthly installments, upon his or her own requisition. |
3734
|
Requisition requirements shall be set by the division |
3735
|
department. |
3736
|
(4) |
3737
|
(b) A member who elects an option in paragraph (a) shall |
3738
|
on a form provided for that purpose designate his or her spouse |
3739
|
as beneficiary to receive the benefits which continue to be |
3740
|
payable upon the death of the member. After such benefits have |
3741
|
commenced under an option in paragraph (a), the retired member |
3742
|
may change the designation of his or her spouse as beneficiary |
3743
|
only twice. If such a retired member remarries and wishes to |
3744
|
make such a change, he or she may do so by filing with the |
3745
|
divisiondepartmenta notarized change of spouse designation |
3746
|
form and shall notify the former spouse in writing of such |
3747
|
change. Upon receipt of a completed change of spouse designation |
3748
|
form, the divisiondepartmentshall adjust the member's monthly |
3749
|
benefit by the application of actuarial tables and calculations |
3750
|
developed to ensure that the benefit paid is the actuarial |
3751
|
equivalent of the present value of the member's current benefit. |
3752
|
The consent of a retired member's formerly designated spouse as |
3753
|
beneficiary to any such change shall not be required. |
3754
|
(5) Tables for computing the actuarial equivalent shall be |
3755
|
approved by the divisiondepartment. |
3756
|
(9) Notwithstanding any other provision in this chapter to |
3757
|
the contrary, the following provisions shall apply to any |
3758
|
officer or employee who has accumulated at least 10 years of |
3759
|
service and dies: |
3760
|
(a) If the deceased member's surviving spouse has |
3761
|
previously received a refund of the member's contributions made |
3762
|
to the retirement trust fund, such spouse may pay to the |
3763
|
divisiondepartmentan amount equal to the sum of the amount of |
3764
|
the deceased member's contributions previously refunded and |
3765
|
interest at 3 percent compounded annually on the amount of such |
3766
|
refunded contributions from the date of refund until July 1, |
3767
|
1975, and thereafter at the rate of 6.5 percent interest |
3768
|
compounded annually to the date of payment to the division |
3769
|
department, and by so doing be entitled to receive the monthly |
3770
|
retirement benefit provided in paragraph (c). |
3771
|
(b) If the deceased member's surviving spouse has not |
3772
|
received a refund of the deceased member's contributions, such |
3773
|
spouse shall, upon application to the divisiondepartment, |
3774
|
receive the monthly retirement benefit provided in paragraph |
3775
|
(c). |
3776
|
(c) The monthly benefit payable to the spouse described in |
3777
|
paragraph (a) or paragraph (b) shall be the amount which would |
3778
|
have been payable to the deceased member's spouse, assuming that |
3779
|
the member retired on the date of death and had selected the |
3780
|
option in subsection (4) which would afford the surviving spouse |
3781
|
the greatest amount of benefits, such benefit to be based on the |
3782
|
ages of the spouse and member as of the date of death of the |
3783
|
member. Such benefit shall commence on the first day of the |
3784
|
month following the payment of the aforesaid amount to the |
3785
|
divisiondepartment, if paragraph (a) is applicable, or on the |
3786
|
first day of the month following the receipt of the spouse's |
3787
|
application by the divisiondepartment, if paragraph (b) is |
3788
|
applicable. |
3789
|
Section 54. Section 122.09, Florida Statutes, is amended |
3790
|
to read: |
3791
|
122.09 Disability retirement; medical |
3792
|
examinations.--Whenever any officer or employee of the state or |
3793
|
county of the state has service credit as such officer or |
3794
|
employee for 10 years within the contemplation of this law, the |
3795
|
last 5 years of which, except for a single break not to exceed 1 |
3796
|
year, must be continuous, unbroken service and who is regularly |
3797
|
contributing to the State and County Officers and Employees' |
3798
|
Retirement Trust Fund and shall while holding such office or |
3799
|
employment become permanently and totally disabled, physically |
3800
|
or mentally, or both, from rendering useful and efficient |
3801
|
service as such officer or employee, such officer or employee |
3802
|
may retire from his or her office or employment, and upon such |
3803
|
retirement the officer or employee shall be paid, so long as the |
3804
|
permanent and total disability continues, on his or her own |
3805
|
monthly requisition, from the State and County Officers and |
3806
|
Employees' Retirement Trust Fund hereinafter established, |
3807
|
retirement compensation as provided in s. 122.08; provided that |
3808
|
no officer or employee retiring under this section shall receive |
3809
|
less than 50 percent of his or her average final compensation |
3810
|
not to exceed $75. No officer or employee of the state and |
3811
|
county of the state shall be permitted to retire under the |
3812
|
provisions of this section until examined by a duly qualified |
3813
|
physician or surgeon or board of physicians and surgeons, to be |
3814
|
selected by the Governor for that purpose, and found to be |
3815
|
disabled in the degree and in the manner specified in this |
3816
|
section. Any officer or employee retiring under this section |
3817
|
shall be examined periodically by a duly qualified physician or |
3818
|
surgeon or board of physicians and surgeons to be selected by |
3819
|
the Governor for that purpose and paid from the retirement trust |
3820
|
fund herein provided for, at such time as the division directs |
3821
|
Department of Management Services shall directto determine if |
3822
|
such total disability has continued and in the event it be |
3823
|
disclosed by said examination that said total disability has |
3824
|
ceased to exist, then such officer or employee shall forthwith |
3825
|
cease to be paid benefits under this section. Reference to s. |
3826
|
122.08 is for the purpose of computing benefits only. Any person |
3827
|
heretofore retired under this section shall be eligible to |
3828
|
qualify for the minimum benefits provided herein; however, |
3829
|
minimum benefits shall not be paid retroactively. |
3830
|
Section 55. Subsection (4) of section 122.10, Florida |
3831
|
Statutes, is amended to read: |
3832
|
122.10 Separation from service; refund of contributions.-- |
3833
|
(4) IfShould any officer or employee electselectto |
3834
|
receive a refund as provided in this section, his or her |
3835
|
application for refund shall be submitted in the manner |
3836
|
prescribed by the rulesregulations adopted by the division |
3837
|
departmentand shall accompany the payroll certification, |
3838
|
submitted to the divisiondepartment, on which he or she was |
3839
|
last paid prior to termination. The divisiondepartmentshall |
3840
|
pay the entire refund due within 45 days after the first day of |
3841
|
the month subsequent to receipt of such application for refund |
3842
|
and said payroll certification. |
3843
|
Section 56. Subsection (1) of section 122.12, Florida |
3844
|
Statutes, is amended to read: |
3845
|
122.12 Designation of beneficiary; death of participant; |
3846
|
forfeiture of contributions after benefits paid; survivor |
3847
|
benefits.-- |
3848
|
(1) Any officer or employee may file, in writing, a |
3849
|
designation of beneficiary and it shall be the duty of the |
3850
|
divisiondepartmentto refund 100 percent, without interest, of |
3851
|
the contributions made to the retirement trust fund by such |
3852
|
deceased officer or employee to such designated beneficiary. The |
3853
|
officer or employee shall have the privilege of changing, in |
3854
|
writing, the designated beneficiary at any time. Upon failure to |
3855
|
designate a beneficiary, the refund shall be made to the persons |
3856
|
in the same order as designated in s. 222.15, for wages due |
3857
|
deceased employees. If the deceased officer or employee has |
3858
|
received any benefits under this law, no refund shall be made |
3859
|
unless such officer or employee has elected to accept benefits |
3860
|
under s. 122.08(3) or (4). |
3861
|
Section 57. Section 122.13, Florida Statutes, is amended |
3862
|
to read: |
3863
|
122.13 Administration of law; appropriation.--The division |
3864
|
departmentshall make such rules as are necessary for the |
3865
|
effective administration of this chapter, and the cost is hereby |
3866
|
annually appropriated and shall be paid into the State and |
3867
|
County Officers and Employees' Retirement Trust Fund out of the |
3868
|
Intangible Tax Fund in the State Treasury in the amount |
3869
|
necessary to administer efficiently the state and county |
3870
|
retirement law. At the end of each fiscal year, beginning with |
3871
|
fiscal year 1959-1960, the administrative cost of the state and |
3872
|
county retirement system for the fiscal year just ended shall be |
3873
|
refunded to the General Revenue Fund from interest earned on |
3874
|
investments made subsequent to June 30, 1959. |
3875
|
Section 58. Subsection (2) of section 122.15, Florida |
3876
|
Statutes, is amended to read: |
3877
|
122.15 Benefits exempt from taxes and execution.-- |
3878
|
(2) This subsection shall have no effect upon this section |
3879
|
except that the divisiondepartmentmay, upon written request |
3880
|
from the retired member, deduct premiums for group |
3881
|
hospitalization insurance from the retirement benefit paid such |
3882
|
retired member. |
3883
|
Section 59. Paragraph (b) of subsection (2) of section |
3884
|
122.16, Florida Statutes, is amended to read: |
3885
|
122.16 Employment after retirement.-- |
3886
|
(2) |
3887
|
(b) Any person to whom the limitation in paragraph (a) |
3888
|
applies who violates such reemployment limitation and is |
3889
|
reemployed with any agency participating in the Florida |
3890
|
Retirement System prior to completion of the 12-month limitation |
3891
|
period shall give timely notice of this fact in writing to his |
3892
|
or her employer and to the divisiondepartment; and his or her |
3893
|
retirement benefits shall be suspended for the balance of the |
3894
|
12-month limitation period. Any person employed in violation of |
3895
|
this subsection and any employing agency which knowingly employs |
3896
|
or appoints such person without notifying the division |
3897
|
departmentto suspend retirement benefits shall be jointly and |
3898
|
severally liable for reimbursement to the retirement trust fund |
3899
|
of any benefits paid during the reemployment limitation period. |
3900
|
To avoid liability, such employing agency shall have a written |
3901
|
statement from the retiree that he or she is not retired from a |
3902
|
state-administered retirement system. Any retirement benefits |
3903
|
received by such person while he or she is reemployed during |
3904
|
this reemployment limitation period shall be repaid to the |
3905
|
retirement trust fund, and his or her retirement benefits shall |
3906
|
remain suspended until such repayment has been made. Any |
3907
|
benefits suspended beyond the reemployment limitation period |
3908
|
shall apply toward the repayment of benefits received in |
3909
|
violation of the reemployment limitation. |
3910
|
Section 60. Subsections (3) and (5) of section 122.23, |
3911
|
Florida Statutes, are amended to read: |
3912
|
122.23 Definitions; ss. 122.21-122.321.--In addition to |
3913
|
those definitions set forth in s. 122.02 the following words and |
3914
|
phrases used in ss. 122.21-122.24, 122.26 to 122.321, inclusive, |
3915
|
have the respective meanings set forth: |
3916
|
(3) "DivisionDepartment" means the Division of Retirement |
3917
|
of the State Board of AdministrationDepartment of Management |
3918
|
Services. |
3919
|
(5) "State agency" means the divisionDepartment of |
3920
|
Management Serviceswithin the provisions and contemplation of |
3921
|
chapter 650. |
3922
|
Section 61. Subsections (1) and (5) of section 122.30, |
3923
|
Florida Statutes, are amended to read: |
3924
|
122.30 Appropriations.-- |
3925
|
(1) There is herebyannually appropriated from the |
3926
|
intangible tax fund of the state to the divisiondepartmentas |
3927
|
the state agency designated in chapter 650, a sum not to exceed |
3928
|
$10,000 to defray the expenses of such agency in connection with |
3929
|
its continuing duties in relation to the social security |
3930
|
coverage provided by this law. |
3931
|
(5) In addition to amounts appropriated by other |
3932
|
provisions of this chapter or other laws to defray cost of |
3933
|
administration of this system, there is herebyappropriated out |
3934
|
of the Intangible Tax Fund of the state for use of the division |
3935
|
departmentin its administration of the two divisions of this |
3936
|
system, the sum of $100,000, or so much thereof as may be |
3937
|
required for that purpose. |
3938
|
Section 62. Paragraphs (b) and (c) of subsection (1) and |
3939
|
subsection (11) of section 122.34, Florida Statutes, are amended |
3940
|
to read: |
3941
|
122.34 Special provisions for certain sheriffs and full- |
3942
|
time deputy sheriffs.-- |
3943
|
(1) |
3944
|
(b) Only those members who are full-time criminal law |
3945
|
enforcement officers or agents, as certified by the employing |
3946
|
authority, who perform duties according to rule, order, or |
3947
|
established custom as full-time criminal law enforcement |
3948
|
officers or agents shall be certified to the divisiondepartment |
3949
|
as high hazard members, and only such members will be approved |
3950
|
by the divisiondepartment. |
3951
|
(c) The divisiondepartmentshall make such rules as are |
3952
|
necessary for the effective administration of the intent of this |
3953
|
section. |
3954
|
(11) No high hazard member shall be permitted to receive |
3955
|
benefits under this section until examined by a duly qualified |
3956
|
physician or surgeon, or board of physicians and surgeons, to be |
3957
|
selected by the Governor for that purpose, and found to be |
3958
|
disabled in the degree and in the manner specified in this |
3959
|
section. At such time as the divisionDepartment of Management |
3960
|
Servicesdirects, any high hazard member receiving disability |
3961
|
benefits under this section shall submit to a medical |
3962
|
examination to determine if such disability has continued, and |
3963
|
the cost of such examination shall be paid from the retirement |
3964
|
trust fund herein provided for; and in the event it is declared |
3965
|
by suchsaid examination that suchsaiddisability has cleared, |
3966
|
such member shall be ordered to return to active duty with the |
3967
|
same rank and salary that he or she had at the time of |
3968
|
disability. Any such member who shall fail to return to duty |
3969
|
following such order shall forfeit all rights and claims under |
3970
|
this law. Every high hazard member retiring under this provision |
3971
|
shall be paid so long as the member's permanent total or partial |
3972
|
disability continues, on his or her own requisition. |
3973
|
Section 63. Section 122.351, Florida Statutes, is amended |
3974
|
to read: |
3975
|
122.351 Funding by local agencies.--Commencing on July 1, |
3976
|
1969, all county and local agencies covered under the provisions |
3977
|
of s. 122.35 shall accumulate and be responsible for the payment |
3978
|
of social security and retirement matching costs as required |
3979
|
under s. 122.35, from the intangible tax allocation of that |
3980
|
county and any other source available to the local governmental |
3981
|
units, except that all agencies, other than the school boards, |
3982
|
shall be given credit for 50 percent of their 1967-1969 actual |
3983
|
employer matching cost, actual cost being that cost in cash |
3984
|
actually paid by the employer for matching retirement and social |
3985
|
security into the fund by the agency for suchsaidbiennium. The |
3986
|
above credit of 50 percent shall be calculated by the division |
3987
|
department. |
3988
|
Section 64. Subsection (6) of section 175.032, Florida |
3989
|
Statutes, is amended to read: |
3990
|
175.032 Definitions.--For any municipality, special fire |
3991
|
control district, chapter plan, local law municipality, local |
3992
|
law special fire control district, or local law plan under this |
3993
|
chapter, the following words and phrases have the following |
3994
|
meanings: |
3995
|
(6) "Division" means the Division of Retirement of the |
3996
|
State Board of AdministrationDepartment of Management Services. |
3997
|
Section 65. Section 175.1215, Florida Statutes, is amended |
3998
|
to read: |
3999
|
175.1215 Police and Firefighters' Premium Tax Trust |
4000
|
Fund.--The Police and Firefighters' Premium Tax Trust Fund is |
4001
|
created, to be administered by the Division of Retirement of the |
4002
|
Department of Management Services. Funds credited to the trust |
4003
|
fund, as provided in chapter 95-250, Laws of Florida, or similar |
4004
|
legislation, shall be expended for the purposes set forth in |
4005
|
that legislation. |
4006
|
Section 66. Subsection (7) of section 185.02, Florida |
4007
|
Statutes, is amended to read: |
4008
|
185.02 Definitions.--For any municipality, chapter plan, |
4009
|
local law municipality, or local law plan under this chapter, |
4010
|
the following words and phrases as used in this chapter shall |
4011
|
have the following meanings, unless a different meaning is |
4012
|
plainly required by the context: |
4013
|
(7) "Division" means the Division of Retirement of the |
4014
|
State Board of AdministrationDepartment of Management Services. |
4015
|
Section 67. Section 185.105, Florida Statutes, is amended |
4016
|
to read: |
4017
|
185.105 Police and Firefighters' Premium Tax Trust |
4018
|
Fund.--The Police and Firefighters' Premium Tax Trust Fund is |
4019
|
created, to be administered by the Division of Retirement of the |
4020
|
Department of Management Services. Funds credited to the trust |
4021
|
fund, as provided in chapter 95-250, Laws of Florida, or similar |
4022
|
legislation, shall be expended for the purposes set forth in |
4023
|
that legislation. |
4024
|
Section 68. Paragraph (q) of subsection (4) of section |
4025
|
215.20, Florida Statutes, is amended to read: |
4026
|
215.20 Certain income and certain trust funds to |
4027
|
contribute to the General Revenue Fund.-- |
4028
|
(4) The income of a revenue nature deposited in the |
4029
|
following described trust funds, by whatever name designated, is |
4030
|
that from which the appropriations authorized by subsection (3) |
4031
|
shall be made: |
4032
|
Compensation Trust Fund. |
4033
|
(q) Within the Division of Retirement of the State Board |
4034
|
of AdministrationDepartment of Management Services: |
4035
|
1. The Administrative Trust Fund. |
4036
|
2. The Architects Incidental Trust Fund. |
4037
|
3. The Bureau of Aircraft Trust Fund. |
4038
|
4. The Florida Facilities Pool Working Capital Trust Fund. |
4039
|
5. The Grants and Donations Trust Fund. |
4040
|
6. The Motor Vehicle Operating Trust Fund. |
4041
|
7. The Police and Firefighters' Premium Tax Trust Fund. |
4042
|
8. The Public Employees Relations Commission Trust Fund. |
4043
|
9. The State Personnel System Trust Fund. |
4044
|
10. The Supervision Trust Fund. |
4045
|
11. The Working Capital Trust Fund. |
4046
|
|
4047
|
The enumeration of the foregoing moneys or trust funds shall not |
4048
|
prohibit the applicability thereto of s. 215.24 should the |
4049
|
Governor determine that for the reasons mentioned in s. 215.24 |
4050
|
the money or trust funds should be exempt herefrom, as it is the |
4051
|
purpose of this law to exempt income from its force and effect |
4052
|
when, by the operation of this law, federal matching funds or |
4053
|
contributions or private grants to any trust fund would be lost |
4054
|
to the state. |
4055
|
Section 69. Subsection (3) of section 215.28, Florida |
4056
|
Statutes, is amended to read: |
4057
|
215.28 United States securities, purchase by state and |
4058
|
county officers and employees; deductions from salary.-- |
4059
|
(3) All deductions so made by any such disbursing |
4060
|
authority shall be deposited in a trust account separate and |
4061
|
apart from the funds of the state, county, or subordinate |
4062
|
agency. Such account will be subject to withdrawal only for the |
4063
|
purchase of United States securities on behalf of officers and |
4064
|
employees, or for refunds to such persons in accordance with the |
4065
|
provisions of this law. Whenever the sum of $18.75 or the |
4066
|
purchase price of the security requested to be purchased is |
4067
|
accumulated from deductions so made from the salaries or wages |
4068
|
of an officer or employee, such disbursing agent shall arrange |
4069
|
the purchase of the bond or security applied for and have it |
4070
|
registered in the name or names requested in the deduction |
4071
|
authorization. Securities so purchased will be delivered in such |
4072
|
manner as may be convenient for the issuing agent and the |
4073
|
purchaser. Any interest earned on moneys in such account while |
4074
|
awaiting the accumulation of the purchase price of the security |
4075
|
shall be transferred to the Florida Retirement System Trust Fund |
4076
|
as reimbursement for administrative costs incurred by the |
4077
|
Division of Retirement of the State Board of Administration |
4078
|
Department of Management Servicesunder this section. |
4079
|
Section 70. Subsection (3) of section 215.50, Florida |
4080
|
Statutes, is amended to read: |
4081
|
215.50 Custody of securities purchased; income.-- |
4082
|
(3) The Treasurer, as custodian of securities owned by the |
4083
|
Florida Retirement System Trust Fund and the Florida Survivor |
4084
|
Benefit Trust Fund, shall collect the interest, dividends, |
4085
|
prepayments, maturities, proceeds from sales, and other income |
4086
|
accruing from such assets. As such income is collected by the |
4087
|
Treasurer, it shall be deposited directly into a commercial bank |
4088
|
to the credit of the State Board of Administration. Such bank |
4089
|
accounts as may be required for this purpose shall offer |
4090
|
satisfactory collateral security as provided by chapter 280. In |
4091
|
the event funds so deposited according to the provisions of this |
4092
|
section are required for the purpose of paying benefits or other |
4093
|
operational needs, the State Board of Administration shall remit |
4094
|
to the Florida Retirement System Trust Fund in the State |
4095
|
Treasury such amounts as may be requested by the director of the |
4096
|
Division of Retirement of the State Board of Administration |
4097
|
Department of Management Services. |
4098
|
Section 71. Subsections (2), (3), (11), and (13) of |
4099
|
section 238.01, Florida Statutes, are amended to read: |
4100
|
238.01 Definitions.--The following words and phrases as |
4101
|
used in this chapter shall have the following meanings unless a |
4102
|
different meaning is plainly required by the context: |
4103
|
(2) "DivisionDepartment" means the Division of Retirement |
4104
|
of the State Board of AdministrationDepartment of Management |
4105
|
Services. |
4106
|
(3) "Teacher" means any member of the teaching or |
4107
|
professional staff and any certificated employee of any public |
4108
|
free school, of any district school system and vocational |
4109
|
school, any member of the teaching or professional staff of the |
4110
|
Florida School for the Deaf and Blind, child training schools of |
4111
|
the Department of Juvenile Justice, the Department of |
4112
|
Corrections, and any tax-supported institution of higher |
4113
|
learning of the state, and any member and any certified employee |
4114
|
of the Department of Education, any certified employee of the |
4115
|
retirement system, any full-time employee of any nonprofit |
4116
|
professional association or corporation of teachers functioning |
4117
|
in Florida on a statewide basis, which seeks to protect and |
4118
|
improve public school opportunities for children and advance the |
4119
|
professional and welfare status of its members, any person now |
4120
|
serving as superintendent, or who was serving as county |
4121
|
superintendent of public instruction on July 1, 1939, and any |
4122
|
hereafter duly elected or appointed superintendent, who holds a |
4123
|
valid Florida teachers' certificate. In all cases of doubt the |
4124
|
divisionDepartment of Management Servicesshall determine |
4125
|
whether any person is a teacher as defined herein. |
4126
|
(11) "Regular interest" means interest at such rate as may |
4127
|
be set from time to time by the divisionDepartment of |
4128
|
Management Services. |
4129
|
(13) "Earnable compensation" means the full compensation |
4130
|
payable to a teacher working the full working time for his or |
4131
|
her position. In respect to plans A, B, C, and D only, in cases |
4132
|
where compensation includes maintenance, the divisionDepartment |
4133
|
of Management Servicesshall fix the value of that part of the |
4134
|
compensation not paid in money; provided that all members shall |
4135
|
from July 1, 1955, make contributions to the retirement system |
4136
|
on the basis of "earnable compensation" as defined herein and |
4137
|
all persons who are members on July 1, 1955, may, upon |
4138
|
application, have their "earnable compensation" for the time |
4139
|
during which they have been members prior to that date |
4140
|
determined on the basis of "earnable compensation" as defined in |
4141
|
this law, upon paying to the retirement system, on or before the |
4142
|
date of retirement, a sum equal to the additional contribution |
4143
|
with accumulated regular interest thereon they would have made |
4144
|
if "earnable compensation" had been defined, at the time they |
4145
|
became members, as it is now defined. However, earnable |
4146
|
compensation for all plan years beginning on or after July 1, |
4147
|
1990, shall not include any amounts in excess of the |
4148
|
compensation limitation (originally $200,000) established by s. |
4149
|
401(a)(17) of the Internal Revenue Code prior to the Omnibus |
4150
|
Budget Reconciliation Act of 1993, which limitation shall be |
4151
|
adjusted for changes in the cost of living since 1989, in the |
4152
|
manner provided by s. 401(a)(17) of the Internal Revenue Code of |
4153
|
1991. This limitation, which has been part of the Teachers' |
4154
|
Retirement System since plan years beginning on or after July 1, |
4155
|
1990, shall be adjusted as required by federal law for qualified |
4156
|
government plans. |
4157
|
Section 72. Section 238.02, Florida Statutes, is amended |
4158
|
to read: |
4159
|
238.02 Name and date of establishment.--A retirement |
4160
|
system is established and placed under the management of the |
4161
|
divisionDepartment of Management Servicesfor the purpose of |
4162
|
providing retirement allowances and other benefits for teachers |
4163
|
of the state. The retirement system shall begin operations on |
4164
|
July 1, 1939. It has such powers and privileges of a corporation |
4165
|
as may be necessary to carry out effectively the provisions of |
4166
|
this chapter and shall be known as the "Teachers' Retirement |
4167
|
System of the State," and by such name all of its business shall |
4168
|
be transacted, all of its funds invested, and all of its cash |
4169
|
and securities and other property held in trust for the purpose |
4170
|
for which received. |
4171
|
Section 73. Section 238.03, Florida Statutes, is amended |
4172
|
to read: |
4173
|
238.03 Administration.-- |
4174
|
(1) The general administration and the responsibility for |
4175
|
the proper operation of the retirement system and for making |
4176
|
effective the provisions of this chapter are vested in the |
4177
|
divisionDepartment of Management Services. Subject to the |
4178
|
limitation of this chapter, the department shall, from time to |
4179
|
time, establish rules and regulations for the administration and |
4180
|
transaction of the business of the retirement system and shall |
4181
|
perform such other functions as are required for the execution |
4182
|
of this chapter. |
4183
|
(2) The divisiondepartmentshall keep in convenient form |
4184
|
such data as shall be necessary for actuarial valuation of the |
4185
|
various funds created by this chapter and for checking the |
4186
|
experience of the retirement system. |
4187
|
(3) The Department of Legal Affairs shall be the legal |
4188
|
adviser of the divisiondepartment. |
4189
|
(4) The divisiondepartmentshall employ such agents, |
4190
|
servants and employees as in its judgment may be necessary to |
4191
|
carry out the terms and provisions of this chapter and shall |
4192
|
provide for their compensation. Among the employees of the |
4193
|
divisiondepartmentshall be an actuary who shall be the |
4194
|
technical adviser of the divisiondepartmenton matters |
4195
|
regarding the operation of the funds created by the provisions |
4196
|
of this chapter and who shall perform such other duties as are |
4197
|
required in connection therewith. |
4198
|
(5) In the year 1943 and at least once in each 5-year |
4199
|
period thereafter, the actuary shall make an actuarial |
4200
|
investigation of the mortality, service and salary experience of |
4201
|
the members and beneficiaries as defined in this chapter, and |
4202
|
shall make a valuation of the various funds created by the |
4203
|
chapter, and having regard to such investigation and valuation, |
4204
|
the divisiondepartmentshall adopt such mortality and service |
4205
|
tables as areshall bedeemed necessary, and shall certify the |
4206
|
rates of contribution payable under the provisions of this |
4207
|
chapter. |
4208
|
(6) The actuary shall make an annual valuation of the |
4209
|
assets and liabilities of the funds of the retirement system on |
4210
|
the basis of the tables adopted by the divisiondepartmentin |
4211
|
accordance with the requirements of this section, and shall |
4212
|
prepare an annual statement of the amounts to be contributed by |
4213
|
the state in accordance with s. 238.09. |
4214
|
(7) The divisiondepartmentshall publish annually the |
4215
|
valuation, as certified by the actuary, of the assets and |
4216
|
liabilities of the various funds created by this chapter, a |
4217
|
statement as to the receipts and disbursements of the funds, and |
4218
|
a statement as to the accumulated cash and securities of the |
4219
|
funds. |
4220
|
(8) The divisiondepartmentshall keep a record of all of |
4221
|
its proceedings and such record shall be open to inspection by |
4222
|
the public. |
4223
|
(9) The divisiondepartmentis authorized to photograph |
4224
|
and reduce to microfilm as a permanent record, its ledger sheets |
4225
|
showing the salary and contributions of members of the |
4226
|
retirement system, also the records of deceased members of the |
4227
|
system and thereupon to destroy the documents from which such |
4228
|
films are photographed. |
4229
|
Section 74. Paragraph (b) of subsection (1), paragraphs |
4230
|
(a) and (b) of subsection (3), and subsection (4) of section |
4231
|
238.05, Florida Statutes, are amended to read: |
4232
|
238.05 Membership.-- |
4233
|
(1) The membership of the retirement system shall consist |
4234
|
of the following: |
4235
|
(b) All persons who became or who become teachers on or |
4236
|
after July 1, 1939, except as provided in paragraph (a) and |
4237
|
subsection (5) hereof, shall become members of the retirement |
4238
|
system by virtue of their appointment as teachers. However, |
4239
|
employees who are not members of the teaching or professional |
4240
|
staff shall only become members of the retirement system by |
4241
|
filing a notice with the divisiondepartmentof their election |
4242
|
to become members. |
4243
|
(3) Except as otherwise provided in s. 238.07(9), |
4244
|
membership of any person in the retirement system will cease if |
4245
|
he or she is continuously unemployed as a teacher for a period |
4246
|
of more than 5 consecutive years, or upon the withdrawal by the |
4247
|
member of his or her accumulated contributions as provided in s. |
4248
|
238.07(13), or upon retirement, or upon death; provided that the |
4249
|
adjustments prescribed below are to be made for persons who |
4250
|
enter the Armed Forces of the United States during a period of |
4251
|
war or national emergency and for persons who are granted leaves |
4252
|
of absence. Any member of the retirement system who within 1 |
4253
|
year before the time of entering the Armed Forces of the United |
4254
|
States was a teacher, as defined in s. 238.01, or was engaged in |
4255
|
other public educational work within the state, and member of |
4256
|
the Teachers' Retirement System at the time of induction, or who |
4257
|
has been or is granted leave of absence, shall be permitted to |
4258
|
elect to continue his or her membership in the Teachers' |
4259
|
Retirement System; and membership service shall be allowed for |
4260
|
the period covered by service in the Armed Forces of the United |
4261
|
States or by leave of absence under the following conditions: |
4262
|
(a) A person who has been granted leave of absence shall |
4263
|
file with the divisiondepartmentbefore his or her next |
4264
|
contribution is due an application to continue his or her |
4265
|
membership during the period covered by the person's leave of |
4266
|
absence and, if such application is filed, shall make his or her |
4267
|
contribution to the retirement system on the basis of his or her |
4268
|
last previous annual salary as a teacher, and shall, prior to |
4269
|
retirement, pay in full to the system such contributions with |
4270
|
accumulated regular interest. Such contributions with interest |
4271
|
may be paid at one time or in monthly, quarterly, semiannual, or |
4272
|
annual payments in the person's discretion. |
4273
|
(b) A person who enters or who has entered the Armed |
4274
|
Forces of the United States may either continue his or her |
4275
|
membership according to the plan outlined under paragraph (a) |
4276
|
or, in lieu thereof, may file with the divisiondepartmentat |
4277
|
any time following the close of his or her military service an |
4278
|
application that his or her membership be continued and that |
4279
|
membership service be allowed for not more than 5 years of his |
4280
|
or her period of service in the Armed Forces of the United |
4281
|
States during any period of war or national emergency; provided |
4282
|
that any such person shall, prior to retirement, pay in full his |
4283
|
or her contributions with accumulated regular interest to the |
4284
|
retirement system for the period for which he or she is entitled |
4285
|
to membership service on the basis of his or her last previous |
4286
|
annual salary as a teacher. Such contributions with interest may |
4287
|
be paid to the department at one time or in monthly, quarterly, |
4288
|
semiannual, or annual payments in the person's discretion. |
4289
|
(4) The divisiondepartmentmay in its discretion deny the |
4290
|
right to become members to any class of teachers who are serving |
4291
|
on a temporary or any other than a per annum basis, and it may |
4292
|
also in its discretion make optional with members in any such |
4293
|
class their individual entrance into membership. |
4294
|
Section 75. Subsections (3) and (10), paragraphs (a) and |
4295
|
(b) of subsection (12), paragraphs (15A), (a), (b), and (d) of |
4296
|
subsection (13), and paragraphs (a) and (d) of subsection (16) |
4297
|
of section 238.07, Florida Statutes, are amended to read: |
4298
|
238.07 Regular benefits; survivor benefits.-- |
4299
|
(3) Any member who, prior to July 1, 1955, elected to |
4300
|
retire under one of plans A, B, C, or D may elect, prior to |
4301
|
retirement, to retire under plan E in accordance with the terms |
4302
|
hereof. Any person who became a member on or after July 1, 1955, |
4303
|
shall retire under plan E, except as provided for under s. |
4304
|
238.31. With respect to plans A, B, C, or D, any member shall |
4305
|
have the right at any time to change to a plan of retirement |
4306
|
requiring a lower rate of contribution. The divisionDepartment |
4307
|
of Management Servicesshall also notify the member of the rate |
4308
|
of contribution such member must make from and after selecting |
4309
|
such plan of retirement. Any member in service may retire upon |
4310
|
reaching the age of retirement formerly selected by him or her, |
4311
|
upon the member's written application to the divisiondepartment |
4312
|
setting forth at which time, not more than 90 days subsequent to |
4313
|
the execution and filing of such application, it is his or her |
4314
|
desire to retire notwithstanding that during such period of |
4315
|
notification he or she may have separated from service. Upon |
4316
|
receipt of such application for retirement, the division |
4317
|
departmentshall retire such member not more than 90 days |
4318
|
thereafter. Before such member may retire he or she must file |
4319
|
with the divisiondepartmenthis or her written selection of one |
4320
|
of the optional benefits provided in s. 238.08. |
4321
|
(10) Any member in service, who has 10 or more years of |
4322
|
creditable service, may upon the application of his or her |
4323
|
employer or upon his or her own application, be retired by the |
4324
|
divisiondepartmentnot less than 30 nor more than 90 days next |
4325
|
following the date of filing such application, on a disability |
4326
|
retirement allowance; provided that a physician licensed by this |
4327
|
state examines and certifies that such member is mentally or |
4328
|
physically incapacitated for the further performance of duty, |
4329
|
that such incapacity is likely to be permanent, and that such |
4330
|
member should be retired, and the divisiondepartmentconcurs. |
4331
|
In making the determination, the divisiondepartmentmay require |
4332
|
other evidence of disability as deemed appropriate. |
4333
|
(12)(a) Once each year during the first 5 years following |
4334
|
the retirement of a member on a disability retirement allowance, |
4335
|
and once in every 3-year period thereafter, the division |
4336
|
departmentmay require any disability beneficiary who has not |
4337
|
yet attained his or her minimum service retirement age to |
4338
|
undergo a medical examination by a physician licensed by this |
4339
|
state and to submit any other evidence of disability as required |
4340
|
by the divisiondepartment. IfShoulda disability beneficiary |
4341
|
who has not yet attained his or her minimum service retirement |
4342
|
age refusesrefuseto submit to any such medical examination, |
4343
|
his or her retirement allowance shall be discontinued until his |
4344
|
or her withdrawal of such refusal, and ifshould such refusal |
4345
|
continuescontinuefor 1 year, all of the disability |
4346
|
beneficiary's rights in and to his or her pension shall be |
4347
|
forfeited. |
4348
|
(b) If the divisiondepartmentfinds that a disability |
4349
|
beneficiary is engaged in or is able to engage in a gainful |
4350
|
occupation paying more than the difference between his or her |
4351
|
disability retirement allowance and his or her average final |
4352
|
compensation, the amount of the beneficiary's pension shall be |
4353
|
reduced to an amount which, together with his or her annuity and |
4354
|
the amount earnable by him or her, shall equal the amount of his |
4355
|
or her average final compensation. Should the beneficiary's |
4356
|
earning capacity later be changed, the amount of his or her |
4357
|
pension may be further modified; provided that the pension so |
4358
|
modified shall not exceed the amount of the pension allowable |
4359
|
under subsection (11), at the time of retirement, nor an amount |
4360
|
which, when added to the amount earnable by the beneficiary, |
4361
|
together with his or her annuity, equals the amount of his or |
4362
|
her average final compensation. A beneficiary restored to active |
4363
|
service at a salary less than the average final compensation |
4364
|
upon the basis of which he or she was retired shall not become a |
4365
|
member of the retirement system at that time. |
4366
|
(13) IfShould a member ceasesceaseto be a teacher |
4367
|
except by death or by retirement under the provisions of this |
4368
|
chapter, the member shall be paid the amount of his or her |
4369
|
accumulated contributions. IfShould a member diesdiebefore |
4370
|
retirement, the amount of his or her accumulated contributions |
4371
|
shall be paid to such person, if any, as he or she shall have |
4372
|
nominated by written designation duly executed and filed with |
4373
|
the divisiondepartment; otherwise, to his or her executors or |
4374
|
administrators. |
4375
|
(15A)(a) Any member of the Teachers' Retirement System who |
4376
|
has heretofore, or who hereafter, retires with no less than 10 |
4377
|
years of creditable service and who has passed his or her 65th |
4378
|
birthday, may, upon application to the divisiondepartment, have |
4379
|
his or her retirement allowance redetermined and thereupon shall |
4380
|
be entitled to a monthly service retirement allowance which |
4381
|
shall be equal to $4 multiplied by the number of years of the |
4382
|
member's creditable service which shall be payable monthly |
4383
|
during his or her retirement; provided, that the amount of |
4384
|
retirement allowance as determined hereunder, shall be reduced |
4385
|
by an amount equal to: |
4386
|
1. Any social security benefits received by the member, |
4387
|
and |
4388
|
2. Any social security benefits that the member is |
4389
|
eligible to receive by reason of his or her own right or through |
4390
|
his or her spouse. |
4391
|
(b) No payment shall be made to a member of the Teachers' |
4392
|
Retirement System under this act, until the divisiondepartment |
4393
|
has determined the social security status of such member. |
4394
|
(d) The divisiondepartmentshall review, at least |
4395
|
annually, the social security status of all members of the |
4396
|
Teachers' Retirement System receiving payment under this act and |
4397
|
shall increase or decrease payments to such members as shall be |
4398
|
necessary to carry out the intent of this act. |
4399
|
(16)(a) Definitions under survivor benefits are: |
4400
|
1. A dependent is a child, widow, widower, or parent of |
4401
|
the deceased member who was receiving not less than one-half of |
4402
|
his or her support from the deceased member at the time of the |
4403
|
death of such member. |
4404
|
2. A child is a natural or legally adopted child of a |
4405
|
member, who: |
4406
|
a. Is under 18 years of age, or |
4407
|
b. Is over 18 years of age but not over 22 years of age |
4408
|
and is enrolled as a student in an accredited educational |
4409
|
institution, or |
4410
|
c. Is 18 years of age or older and is physically or |
4411
|
mentally incapable of self-support, when such mental and |
4412
|
physical incapacity occurred prior to such child obtaining the |
4413
|
age of 18 years. Such person shall cease to be regarded as a |
4414
|
child upon the termination of such physical or mental |
4415
|
disability. The determination as to such physical or mental |
4416
|
incapability shall be vested in the divisiondepartment. |
4417
|
|
4418
|
No person shall be considered a child who has married or, except |
4419
|
as provided in sub-subparagraph 2.b. or as to a child who is |
4420
|
physically or mentally incapable of self-support as hereinbefore |
4421
|
set forth, has become 18 years of age. |
4422
|
3. A parent is a natural parent of a member and includes a |
4423
|
lawful spouse of a natural parent. |
4424
|
4. A beneficiary is a person who is entitled to benefits |
4425
|
under this subsection by reason of his or her relation to a |
4426
|
deceased member during the lifetime of such member. |
4427
|
(d) Limitations on rights of beneficiary are: |
4428
|
1. The person named as beneficiary in paragraph (b) shall, |
4429
|
in no event, be entitled to receive the benefits set out in such |
4430
|
paragraph unless the death of the member under whom such |
4431
|
beneficiary claims occurs within the period of time after the |
4432
|
member has served in Florida as follows: |
4433
|
|
4434
|
Minimum number of yearsof service in Florida | Period after serving in Florida in which deathof member occurs |
|
4435
|
2. Upon the death of a member, the divisiondepartment |
4436
|
shall make a determination of the beneficiary or beneficiaries |
4437
|
of the deceased member and shall pay survivor benefits to such |
4438
|
beneficiary or beneficiaries beginning 1 month immediately |
4439
|
following the death of the member except where the beneficiary |
4440
|
has not reached the age required to receive benefits under |
4441
|
paragraph (b), in which event the payment of survivor benefits |
4442
|
shall begin as of the month immediately following the month in |
4443
|
which the beneficiary reaches the required age. When required by |
4444
|
the divisiondepartment, the beneficiary or beneficiaries shall |
4445
|
file an application for survivor benefits upon forms prescribed |
4446
|
by the divisiondepartment. |
4447
|
3. The beneficiaries of a member to receive survivor |
4448
|
benefits are fixed by this subsection, and a member may not buy |
4449
|
or otherwise change such benefits. He or she may, however, |
4450
|
designate the beneficiary to receive the $500 death benefits. If |
4451
|
a member fails to make this designation, the $500 death benefits |
4452
|
shall be paid to his or her executor or administrator. |
4453
|
4. The beneficiary or beneficiaries of a member whose |
4454
|
death occurs while he or she is in service or while he or she is |
4455
|
receiving a disability allowance under subsection (11), shall |
4456
|
receive survivor benefits under this subsection determined by |
4457
|
the years of service in Florida of the deceased member as set |
4458
|
out in paragraph (b). The requirement that the death of a member |
4459
|
must occur within a certain period of time after service in |
4460
|
Florida as set out in subparagraph (d)1. shall not apply to a |
4461
|
member receiving a disability benefit at the time of his or her |
4462
|
death. |
4463
|
Section 76. Subsection (2), paragraph (b) of subsection |
4464
|
(5), and subsections (6) and (7) of section 238.08, Florida |
4465
|
Statutes, are amended to read: |
4466
|
238.08 Optional benefits.--A member may elect to receive |
4467
|
his or her benefits under the terms of this chapter according to |
4468
|
the provisions of any one of the following options: |
4469
|
(2) Option two. A member may elect to receive on |
4470
|
retirement the actuarial equivalent (at that time) of his or her |
4471
|
retirement allowance in a reduced retirement allowance payable |
4472
|
throughout life, with the provisions that if the member dies |
4473
|
before he or she has received in payment of his or her annuity |
4474
|
the amount of his or her accumulated contributions, as they were |
4475
|
at the time of his or her retirement, the balance shall be paid |
4476
|
to such person, if any, as he or she shall nominate by written |
4477
|
designation duly acknowledged and filed with the division |
4478
|
department; otherwise, to his or her executors or |
4479
|
administrators. |
4480
|
(5) |
4481
|
(b) A member who elects Option three or Option four shall, |
4482
|
on a form provided for that purpose, designate his or her spouse |
4483
|
as beneficiary to receive the benefits which continue to be |
4484
|
payable upon the death of the member. After such benefits have |
4485
|
commenced under Option three or Option four, the retired member |
4486
|
may change the designation of his or her spouse as beneficiary |
4487
|
only twice. If such a retired member remarries and wishes to |
4488
|
make such a change, he or she may do so by filing with the |
4489
|
divisiondepartmenta notarized change of spouse designation |
4490
|
form and shall notify the former spouse in writing of such |
4491
|
change. Upon receipt of a completed change of spouse designation |
4492
|
form, the divisiondepartmentshall adjust the member's monthly |
4493
|
benefit by the application of actuarial tables and calculations |
4494
|
developed to ensure that the benefit paid is the actuarial |
4495
|
equivalent of the present value of the member's current benefit. |
4496
|
The consent of a retired member's formerly designated spouse as |
4497
|
beneficiary to any such change shall not be required. |
4498
|
(6) Notwithstanding any provision in this chapter to the |
4499
|
contrary, the following provisions shall apply to any member of |
4500
|
the retirement system who has accumulated at least 10 years of |
4501
|
service and dies prior to retirement: |
4502
|
(a) If the deceased member's surviving spouse has |
4503
|
previously received a refund of the member's accumulated |
4504
|
contributions made to the retirement system, such spouse may pay |
4505
|
to the divisiondepartmentan amount equal to the sum of the |
4506
|
amount of the deceased member's contributions previously |
4507
|
refunded and regular interest compounded annually on the amount |
4508
|
of such refunded contributions from the date of refund to the |
4509
|
date of payment to the divisiondepartment, and by so doing be |
4510
|
entitled to receive the monthly retirement benefit provided in |
4511
|
paragraph (c). |
4512
|
(b) If the deceased member's surviving spouse has not |
4513
|
received a refund of the deceased member's accumulated |
4514
|
contributions, such spouse shall, upon application to the |
4515
|
divisiondepartmentwithin 30 days of the death of the member, |
4516
|
receive the monthly retirement benefit provided in paragraph |
4517
|
(c). |
4518
|
(c) The monthly benefit payable to the spouse described in |
4519
|
paragraph (a) or paragraph (b) shall be the amount which would |
4520
|
have been payable to the deceased member's spouse, assuming that |
4521
|
the member retired on the date of his or her death and had |
4522
|
selected the option in subsection (3), such benefit to be based |
4523
|
on the ages of the spouse and member as of the date of death of |
4524
|
the member. The benefit shall commence on the first day of the |
4525
|
month following the payment of the aforesaid amount to the |
4526
|
divisiondepartment, if paragraph (a) is applicable, or on the |
4527
|
first day of the month following the receipt of the spouse's |
4528
|
application by the divisiondepartment, if paragraph (b) is |
4529
|
applicable. |
4530
|
(7) The surviving spouse or other dependent of any member |
4531
|
whose employment is terminated by death shall, upon application |
4532
|
to the divisiondepartment, be permitted to pay the required |
4533
|
contributions for any service performed by the member which |
4534
|
could have been claimed by the member at the time of his or her |
4535
|
death. Such service shall be added to the creditable service of |
4536
|
the member and shall be used in the calculation of any benefits |
4537
|
which may be payable to the surviving spouse or other surviving |
4538
|
dependent. |
4539
|
Section 77. Paragraphs (a), (c), and (d) of subsection |
4540
|
(1), paragraphs (b), (c), and (e) of subsection (3), and |
4541
|
paragraph (b) of subsection (5) of section 238.09, Florida |
4542
|
Statutes, are amended to read: |
4543
|
238.09 Method of financing.--All of the assets of the |
4544
|
retirement system shall be credited, according to the purposes |
4545
|
for which they are held, to one of four funds; namely, the |
4546
|
Annuity Savings Trust Fund, the Pension Accumulation Trust Fund, |
4547
|
the Expense Trust Fund, and the Survivors' Benefit Trust Fund. |
4548
|
(1) The Annuity Savings Trust Fund shall be a fund in |
4549
|
which shall be accumulated contributions made from the salaries |
4550
|
of members under the provisions of paragraph (c) or paragraph |
4551
|
(f). Contribution to, payments from, the Annuity Savings Trust |
4552
|
Fund shall be made as follows: |
4553
|
(a) With respect to plan A, B, C, or D, upon the basis of |
4554
|
such tables as the division adoptsDepartment of Management |
4555
|
Services shall adopt, and regular interest, the actuary of the |
4556
|
retirement system shall determine for each member the proportion |
4557
|
of earnable compensation which, when deducted from each payment |
4558
|
of his or her prospective earnable annual compensation prior to |
4559
|
his or her minimum service retirement age, and accumulated at |
4560
|
regular interest until such age, shall be computed to provide at |
4561
|
such age: |
4562
|
1. An annuity equal to one one-hundred-fortieth of his or |
4563
|
her average final compensation multiplied by the number of his |
4564
|
or her years of membership in the case of each member electing |
4565
|
to retire under the provisions of plan A or B. |
4566
|
2. An annuity equal to one one-hundred-twentieth of his or |
4567
|
her average final compensation multiplied by the number of his |
4568
|
or her years of membership service in the case of each member |
4569
|
electing to retire under the provisions of plan C. |
4570
|
3. An annuity equal to one one-hundredth of his or her |
4571
|
average final compensation multiplied by the number of his or |
4572
|
her years of membership service in the case of each member |
4573
|
electing to retire under the provisions of plan D. |
4574
|
|
4575
|
In the case of any member who has attained his or her minimum |
4576
|
service retirement age prior to becoming a member, the |
4577
|
proportion of salary applicable to such member, with respect to |
4578
|
plan A, B, C, or D, shall be the proportion computed for the age |
4579
|
1 year younger than his or her minimum service retirement age. |
4580
|
(c) The divisiondepartmentshall certify to each employer |
4581
|
the proportion of the earnable compensation of each member who |
4582
|
is compensated by the employer, and the employer shall cause to |
4583
|
be deducted from the salary of each member on each and every |
4584
|
payroll for each and every payroll period an amount equal to the |
4585
|
proportion of the member's earnable compensation so computed. |
4586
|
With respect to plan A, B, C, or D, the employer shall not make |
4587
|
any deduction for annuity purposes from the compensation of a |
4588
|
member who has attained the age of 60 years, if such member |
4589
|
elects not to contribute. |
4590
|
(d) In determining the amount earnable by a member in a |
4591
|
payroll period, the divisiondepartmentmay consider the rate of |
4592
|
compensation payable to such member on the first day of the |
4593
|
payroll period as continuing throughout such payroll period, and |
4594
|
it may omit deductions from compensation for any period less |
4595
|
than a full payroll period if a teacher was not a member on the |
4596
|
first day of the payroll period, and to facilitate the making of |
4597
|
deductions, it may modify any deduction required of any member |
4598
|
by such an amount as shall not exceed one-tenth of 1 percent of |
4599
|
the annual salary from which said deduction is to be made. |
4600
|
(3) The Pension Accumulation Trust Fund shall be the fund |
4601
|
in which shall be accumulated all reserves for the payment of |
4602
|
all annuities or benefits in lieu of annuities on retired |
4603
|
members and all pensions and other benefits payable from |
4604
|
contributions made by the members and by the employers, from |
4605
|
which annuities, pensions and benefits in lieu thereof shall be |
4606
|
paid. Contributions to, and payments from, the Pension |
4607
|
Accumulation Trust Fund, other than as set forth in subsections |
4608
|
(2) and (3) herein, shall be made as follows: |
4609
|
(b) On the basis of regular interest and of such mortality |
4610
|
and other tables as areshall be adopted by the division |
4611
|
department, the actuary engaged by the divisiondepartmentto |
4612
|
make each valuation required by this chapter shall, during the |
4613
|
period over which the accrued liability contribution is payable, |
4614
|
determine, immediately after making such valuation, the uniform |
4615
|
and constant percentage of the earnable compensation of the |
4616
|
average new entrant, which, if contributed on the basis of his |
4617
|
or her compensation throughout his or her entire period of |
4618
|
service, would be sufficient to provide for the payment of any |
4619
|
pension payable by the state on his or her account. The rate |
4620
|
percent so determined shall be known as the normal contribution |
4621
|
rate. After the accrued liability contribution has ceased to be |
4622
|
payable, the normal contribution rate shall be the rate percent |
4623
|
of the earnable compensation of all members, obtained by |
4624
|
deducting from the total liabilities of the Pension Accumulation |
4625
|
Trust Fund the amount of the funds in hand to the credit of that |
4626
|
fund and dividing the remainder by 1 percent of the present |
4627
|
value of the prospective future salaries of all members as |
4628
|
computed on the basis of the mortality and service tables |
4629
|
adopted by the divisiondepartmentand on the basis of regular |
4630
|
interest. The normal rate of contribution shall be determined |
4631
|
and certified to the divisiondepartmentby the actuary after |
4632
|
each valuation and shall continue in force until a new valuation |
4633
|
and certification are made. |
4634
|
(c) Immediately succeeding the first valuation, the |
4635
|
actuary engaged by the divisiondepartmentshall compute the |
4636
|
rate percent of the total earnable compensation of all members |
4637
|
which is equivalent to 4 percent of the amount of the total |
4638
|
liability for pensions on account of all members and |
4639
|
beneficiaries and not dischargeable by the present assets of the |
4640
|
Pension Accumulation Trust Fund and by the aforesaid normal |
4641
|
contribution if made on account of such members during the |
4642
|
remainder of their active service. The rate percent, originally |
4643
|
so determined, shall be known as the accrued liability |
4644
|
contribution rate. |
4645
|
(e) The accrued liability contribution shall be |
4646
|
discontinued as soon as the accumulated reserve in the Pension |
4647
|
Accumulation Trust Fund shall equal the present value, as |
4648
|
actuarially computed and approved by the divisiondepartment, of |
4649
|
the total liability of such fund less the present value, |
4650
|
computed on the basis of the normal contribution rate, then in |
4651
|
force of the prospective normal contributions to be received on |
4652
|
account of persons who are at that time members. |
4653
|
(5) |
4654
|
(b) The divisiondepartmentshall annually certify to each |
4655
|
employer, at the time it makes the certification to the employer |
4656
|
under paragraph (1)(c), the rate of twenty-five-hundredths |
4657
|
percent to be applied by the employer to the salary of each |
4658
|
member who is compensated by the employer, and the employer |
4659
|
shall cause to be deducted from the salary of each member on |
4660
|
each and every payroll for each and every payroll period an |
4661
|
amount equal to twenty-five-hundredths percent of the member's |
4662
|
salary paid by the employer and the employer shall remit monthly |
4663
|
such deducted amounts to the divisiondepartmentwhich shall |
4664
|
place the same in the Survivors' Benefit Trust Fund of the |
4665
|
Teachers' Retirement System of the state. The amount of |
4666
|
contributions by a member to the Survivors' Benefit Trust Fund |
4667
|
shall, in no event, be refundable to the member or his or her |
4668
|
beneficiaries. |
4669
|
Section 78. Section 238.10, Florida Statutes, is amended |
4670
|
to read: |
4671
|
238.10 Management of funds.--The divisionDepartment of |
4672
|
Management Services, annually, shall allow regular interest on |
4673
|
the amount for the preceding year to the credit of each of the |
4674
|
funds of the retirement system, and to the credit of the |
4675
|
individual account therein, if any, with the exception of the |
4676
|
expense fund, from the interest and dividends earned from |
4677
|
investments. |
4678
|
Section 79. Paragraph (b) of subsection (1), and |
4679
|
subsections (2) and (3) of section 238.11, Florida Statutes, are |
4680
|
amended to read: |
4681
|
238.11 Collection of contributions.-- |
4682
|
(1) The collection of contributions shall be as follows: |
4683
|
(b) Each employer shall transmit monthly to the division |
4684
|
Department of Management Servicesa warrant for the total amount |
4685
|
of such deductions. Each employer shall also transmit monthly to |
4686
|
the divisiondepartmenta warrant for such employer contribution |
4687
|
set aside as provided for in paragraph (a) of this subsection. |
4688
|
The divisiondepartment, after making records of all such |
4689
|
warrants, shall transmit them to the Department of Banking and |
4690
|
Finance for delivery to the Treasurer of the state who shall |
4691
|
collect them. |
4692
|
(2) The collection of the state contribution shall be made |
4693
|
as follows: |
4694
|
(a) The amounts required to be paid by the state into the |
4695
|
Teachers' Retirement System in this chapter shall be provided |
4696
|
therefor in the General Appropriations Act. However, in the |
4697
|
event a sufficient amount is not included in the General |
4698
|
Appropriations Act to meet the full amount needed to pay the |
4699
|
retirement compensation provided for in this chapter, the |
4700
|
additional amount needed for such retirement compensation is |
4701
|
hereby appropriated from the General Revenue Fund as approved by |
4702
|
the divisionDepartment of Management Services. |
4703
|
(b) The divisionDepartment of Management Servicesshall |
4704
|
certify one-fourth of the amount so ascertained for each year to |
4705
|
the Comptroller on or before the last day of July, October, |
4706
|
January, and April of each year. The Comptroller shall, on or |
4707
|
before the first day of August, November, February, and May of |
4708
|
each year, draw his or her warrant or warrants on the Treasurer |
4709
|
for the respective amounts due the several funds of the |
4710
|
retirement system. On the receipt of the warrant or warrants of |
4711
|
the Comptroller, the Treasurer shall immediately transfer to the |
4712
|
several funds of the retirement system the amounts due. |
4713
|
(3) All collection of contributions of a nonprofit |
4714
|
professional association or corporation of teachers as referred |
4715
|
to in s. 238.01(3) and (5) shall be made by such association or |
4716
|
corporation in the following manner: |
4717
|
(a) On April 1 of each year, the divisionDepartment of |
4718
|
Management Servicesshall certify to any such nonprofit |
4719
|
professional association or corporation of teachers the amounts |
4720
|
which will become due and payable during the ensuing fiscal year |
4721
|
to each of the funds of the retirement system to which such |
4722
|
contributions are payable as set forth in this law. |
4723
|
(b) The divisionDepartment of Management Servicesshall |
4724
|
certify one-fourth of the amount so ascertained for each year to |
4725
|
the nonprofit professional association or corporation of |
4726
|
teachers on or before the last day of July, October, January, |
4727
|
and April of each year. The nonprofit professional association |
4728
|
or corporation of teachers shall, on or before the first day of |
4729
|
August, November, February, and May of each year, draw its check |
4730
|
payable to the divisiondepartmentfor the respective amounts |
4731
|
due the several funds of the retirement system. Upon receipt of |
4732
|
the check, the divisiondepartmentshall immediately transfer to |
4733
|
the several funds of the retirement system the amounts due, |
4734
|
provided, however, that the amounts due the several funds of the |
4735
|
retirement system from any such association or corporation for |
4736
|
creditable service accruing to any such member before July 1, |
4737
|
1947, shall be paid prior to the retirement of any such member. |
4738
|
Section 80. Section 238.12, Florida Statutes, is amended |
4739
|
to read: |
4740
|
238.12 Duties of employers.-- |
4741
|
(1) Each employer shall keep such records and, from time |
4742
|
to time, shall furnish such information as the division requires |
4743
|
Department of Management Services may requirein the discharge |
4744
|
of its duties. Upon the employment of any teacher to whom this |
4745
|
chapter may apply, the teacher shall be informed by his or her |
4746
|
employer of his or her duties and obligations in connection with |
4747
|
the retirement system as a condition of his or her employment. |
4748
|
Every teacher accepting employment shall be deemed to consent |
4749
|
and agree to any deductions from his or her compensation |
4750
|
required in this chapter and to all other provisions of this |
4751
|
chapter. |
4752
|
(2) During September of each year, or at such other time |
4753
|
as the division approvesdepartment shall approve, each employer |
4754
|
shall certify to the divisiondepartmentthe names of all |
4755
|
teachers to whom this chapter applies. |
4756
|
(3) Each employer shall, on the first day of each calendar |
4757
|
month, or at such less frequent intervals as the division |
4758
|
approvesdepartment may approve, notify the divisiondepartment |
4759
|
of the employment of new teachers, removals, withdrawals and |
4760
|
changes in salary of members that have occurred during the |
4761
|
preceding month, or the period covered since the last |
4762
|
notification. |
4763
|
Section 81. Section 238.14, Florida Statutes, is amended |
4764
|
to read: |
4765
|
238.14 Protection against fraud.--Any person who shall |
4766
|
knowingly make any false statement, or shall falsify or permit |
4767
|
to be falsified any record or records of this retirement system |
4768
|
in any attempt to defraud such system as a result of such act, |
4769
|
shall be guilty of a misdemeanor of the second degree, |
4770
|
punishable as provided in s. 775.082 or s. 775.083. Should any |
4771
|
change or error in records result in any member or beneficiary |
4772
|
receiving from the retirement system more or less than he or she |
4773
|
would have been entitled to receive had the records been |
4774
|
correct, then on discovery of any such error the division |
4775
|
departmentshall correct such error, and, as far as practicable, |
4776
|
shall adjust the payments in such a manner that the actuarial |
4777
|
equivalent of the benefit, to which such member or beneficiary |
4778
|
was correctly entitled, shall be paid. |
4779
|
Section 82. Section 238.15, Florida Statutes, is amended |
4780
|
to read: |
4781
|
238.15 Exemption of funds from taxation, execution, and |
4782
|
assignment.--The pensions, annuities or any other benefits |
4783
|
accrued or accruing to any person under the provisions of this |
4784
|
chapter and the accumulated contributions and cash securities in |
4785
|
the funds created under this chapter are exempted from any |
4786
|
state, county or municipal tax of the state, and shall not be |
4787
|
subject to execution or attachment or to any legal process |
4788
|
whatsoever, and shall be unassignable, except: |
4789
|
(1) That any teacher who has retired shall have the right |
4790
|
and power to authorize in writing the divisionDepartment of |
4791
|
Management Servicesto deduct from his or her monthly retirement |
4792
|
allowance money for the payment of the premiums on group |
4793
|
insurance for hospital, medical and surgical benefits, under a |
4794
|
plan or plans for such benefits approved in writing by the |
4795
|
Insurance Commissioner and Treasurer of the state, and upon |
4796
|
receipt of such request the divisiondepartmentshall make the |
4797
|
monthly payments as directed; and |
4798
|
(2) As may be otherwise specifically provided for in this |
4799
|
chapter. |
4800
|
Section 83. Paragraph (b) of subsection (3) of section |
4801
|
238.171, Florida Statutes, is amended to read: |
4802
|
238.171 Monthly allowance; when made.-- |
4803
|
(3) |
4804
|
(b) On July 1, 1975, and each July 1 thereafter, the |
4805
|
divisionDepartment of Management Servicesshall adjust the |
4806
|
monthly allowance being paid on thatsaiddate. The percentage |
4807
|
of such adjustment shall be equal to the percentage change in |
4808
|
the average cost-of-living index during the preceding 12-month |
4809
|
period, April 1 through March 31, ignoring changes in the cost- |
4810
|
of-living index which are greater than 3 percent during the |
4811
|
preceding fiscal year. |
4812
|
Section 84. Paragraphs (b), (c), (d), (e), and (f) of |
4813
|
subsection (2) of section 238.181, Florida Statutes, are amended |
4814
|
to read: |
4815
|
238.181 Reemployment after retirement; conditions and |
4816
|
limitations.-- |
4817
|
(2) |
4818
|
(b) Any person to whom the limitation in paragraph (a) |
4819
|
applies who violates such reemployment limitation and who is |
4820
|
reemployed with any agency participating in the Florida |
4821
|
Retirement System before completion of the 12-month limitation |
4822
|
period shall give timely notice of this fact in writing to his |
4823
|
or her employer and to the divisionDepartment of Management |
4824
|
Servicesand shall have his or her retirement benefits suspended |
4825
|
for the balance of the 12-month limitation period. Any person |
4826
|
employed in violation of this paragraph and any employing agency |
4827
|
which knowingly employs or appoints such person without |
4828
|
notifying the divisiondepartmentto suspend retirement benefits |
4829
|
shall be jointly and severally liable for reimbursement to the |
4830
|
retirement trust fund of any benefits paid during the |
4831
|
reemployment limitation period. To avoid liability, such |
4832
|
employing agency shall have a written statement from the retiree |
4833
|
that he or she is not retired from a state-administered |
4834
|
retirement system. Any retirement benefits received while |
4835
|
reemployed during this reemployment limitation period shall be |
4836
|
repaid to the retirement trust fund, and retirement benefits |
4837
|
shall remain suspended until such repayment has been made. |
4838
|
Benefits suspended beyond the reemployment limitation shall |
4839
|
apply toward repayment of benefits received in violation of the |
4840
|
reemployment limitation. |
4841
|
(c) A district school board may reemploy a retired member |
4842
|
as a substitute or hourly teacher on a noncontractual basis |
4843
|
after he or she has been retired for 1 calendar month, in |
4844
|
accordance with s. 121.021(39). Any retired member who is |
4845
|
reemployed within 1 calendar month after retirement shall void |
4846
|
his or her application for retirement benefits. District school |
4847
|
boards reemploying such teachers are subject to the retirement |
4848
|
contribution required by paragraph (g). Reemployment of a |
4849
|
retired member as a substitute or hourly teacher is limited to |
4850
|
780 hours during the first 12 months of his or her retirement. |
4851
|
Any retired member reemployed for more than 780 hours during his |
4852
|
or her first 12 months of retirement shall give timely notice in |
4853
|
writing to his or her employer and to the divisiondepartmentof |
4854
|
the date he or she will exceed the limitation. The division |
4855
|
departmentshall suspend his or her retirement benefits for the |
4856
|
remainder of his or her first 12 months of retirement. Any |
4857
|
person employed in violation of this paragraph and any employing |
4858
|
agency which knowingly employs or appoints such person without |
4859
|
notifying the divisiondepartmentto suspend retirement benefits |
4860
|
shall be jointly and severally liable for reimbursement to the |
4861
|
retirement trust fund of any benefits paid during the |
4862
|
reemployment limitation period. To avoid liability, such |
4863
|
employing agency shall have a written statement from the retiree |
4864
|
that he or she is not retired from a state-administered |
4865
|
retirement system. Any retirement benefits received by a retired |
4866
|
member while reemployed in excess of 780 hours during his or her |
4867
|
first 12 months of retirement shall be repaid to the Retirement |
4868
|
System Trust Fund, and his or her retirement benefits shall |
4869
|
remain suspended until repayment is made. Benefits suspended |
4870
|
beyond the end of the retired member's first 12 months of |
4871
|
retirement shall apply toward repayment of benefits received in |
4872
|
violation of the 780-hour reemployment limitation. |
4873
|
(d) A community college board of trustees may reemploy a |
4874
|
retired member as an adjunct instructor, that is, an instructor |
4875
|
who is noncontractual and part time, or as a participant in a |
4876
|
phased retirement program within a community college, after he |
4877
|
or she has been retired for 1 calendar month, in accordance with |
4878
|
s. 121.021(39). Any retired member who is reemployed within 1 |
4879
|
calendar month after retirement shall void his or her |
4880
|
application for retirement benefits. Boards of trustees |
4881
|
reemploying such instructors are subject to the retirement |
4882
|
contribution required in paragraph (g). A retired member may be |
4883
|
reemployed as an adjunct instructor for no more than 780 hours |
4884
|
during the first 12 months of his or her retirement. Any retired |
4885
|
member reemployed for more than 780 hours during his or her |
4886
|
first 12 months of retirement shall give timely notice in |
4887
|
writing to his or her employer and to the divisiondepartmentof |
4888
|
the date he or she will exceed the limitation. The division |
4889
|
departmentshall suspend his or her retirement benefits for the |
4890
|
remainder of his or her first 12 months of retirement. Any |
4891
|
person employed in violation of this paragraph and any employing |
4892
|
agency which knowingly employs or appoints such person without |
4893
|
notifying the divisiondepartmentto suspend retirement benefits |
4894
|
shall be jointly and severally liable for reimbursement to the |
4895
|
retirement trust fund of any benefits paid during the |
4896
|
reemployment limitation period. To avoid liability, such |
4897
|
employing agency shall have a written statement from the retiree |
4898
|
that he or she is not retired from a state-administered |
4899
|
retirement system. Any retirement benefits received by a retired |
4900
|
member while reemployed in excess of 780 hours during his or her |
4901
|
first 12 months of retirement shall be repaid to the Retirement |
4902
|
System Trust Fund, and retirement benefits shall remain |
4903
|
suspended until repayment is made. Benefits suspended beyond the |
4904
|
end of the retired member's first 12 months of retirement shall |
4905
|
apply toward repayment of benefits received in violation of the |
4906
|
780-hour reemployment limitation. |
4907
|
(e) The Board of Trustees of the Florida School for the |
4908
|
Deaf and the Blind may reemploy a retired member as a substitute |
4909
|
teacher, substitute residential instructor, or substitute nurse |
4910
|
on a noncontractual basis after he or she has been retired for 1 |
4911
|
calendar month, in accordance with s. 121.021(39). Any retired |
4912
|
member who is reemployed within 1 calendar month after |
4913
|
retirement shall void his or her application for retirement |
4914
|
benefits. The Board of Trustees of the Florida School for the |
4915
|
Deaf and the Blind reemploying such teachers, residential |
4916
|
instructors, or nurses is subject to the retirement contribution |
4917
|
required by paragraph (g). Reemployment of a retired member as a |
4918
|
substitute teacher, substitute residential instructor, or |
4919
|
substitute nurse is limited to 780 hours during the first 12 |
4920
|
months of his or her retirement. Any retired member reemployed |
4921
|
for more than 780 hours during his or her first 12 months of |
4922
|
retirement shall give timely notice in writing to his or her |
4923
|
employer and to the divisiondepartmentof the date he or she |
4924
|
will exceed the limitation. The divisiondepartmentshall |
4925
|
suspend his or her retirement benefits for the remainder of his |
4926
|
or her first 12 months of retirement. Any person employed in |
4927
|
violation of this paragraph and any employing agency which |
4928
|
knowingly employs or appoints such person without notifying the |
4929
|
divisiondepartmentto suspend retirement benefits shall be |
4930
|
jointly and severally liable for reimbursement to the retirement |
4931
|
trust fund of any benefits paid during the reemployment |
4932
|
limitation period. To avoid liability, such employing agency |
4933
|
shall have a written statement from the retiree that he or she |
4934
|
is not retired from a state-administered retirement system. Any |
4935
|
retirement benefits received by a retired member while |
4936
|
reemployed in excess of 780 hours during his or her first 12 |
4937
|
months of retirement shall be repaid to the Retirement System |
4938
|
Trust Fund, and his or her retirement benefits shall remain |
4939
|
suspended until payment is made. Benefits suspended beyond the |
4940
|
end of the retired member's first 12 months of retirement shall |
4941
|
apply toward repayment of benefits received in violation of the |
4942
|
780-hour reemployment limitation. |
4943
|
(f) The State University System may reemploy a retired |
4944
|
member as an adjunct faculty member or as a participant in a |
4945
|
phased retirement program within the State University System |
4946
|
after the retired member has been retired for 1 calendar month, |
4947
|
in accordance with s. 121.021(39). Any retired member who is |
4948
|
reemployed within 1 calendar month after retirement shall void |
4949
|
his or her application for retirement benefits. The State |
4950
|
University System is subject to the retired contribution |
4951
|
required in paragraph (g), as appropriate. A retired member may |
4952
|
be reemployed as an adjunct faculty member or a participant in a |
4953
|
phased retirement program for no more than 780 hours during the |
4954
|
first 12 months of his or her retirement. Any retired member |
4955
|
reemployed for more than 780 hours during his or her first 12 |
4956
|
months of retirement shall give timely notice in writing to his |
4957
|
or her employer and to the divisiondepartmentof the date he or |
4958
|
she will exceed the limitation. The divisiondepartmentshall |
4959
|
suspend his or her retirement benefits for the remainder of his |
4960
|
or her first 12 months of retirement. Any person employed in |
4961
|
violation of this paragraph and any employing agency which |
4962
|
knowingly employs or appoints such person without notifying the |
4963
|
divisiondepartmentto suspend retirement benefits shall be |
4964
|
jointly and severally liable for reimbursement to the retirement |
4965
|
trust fund of any benefits paid during the reemployment |
4966
|
limitation period. To avoid liability, such employing agency |
4967
|
shall have a written statement from the retiree that he or she |
4968
|
is not retired from a state-administered retirement system. Any |
4969
|
retirement benefits received by a retired member while |
4970
|
reemployed in excess of 780 hours during his or her first 12 |
4971
|
months of retirement shall be repaid to the Retirement System |
4972
|
Trust Fund, and retirement benefits shall remain suspended until |
4973
|
repayment is made. Benefits suspended beyond the end of the |
4974
|
retired member's first 12 months of retirement shall apply |
4975
|
toward repayment of benefits received in violation of the 780- |
4976
|
hour reemployment limitation. |
4977
|
Section 85. Section 238.32, Florida Statutes, is amended |
4978
|
to read: |
4979
|
238.32 Service credit in disputed cases.--The division |
4980
|
Department of Management Servicesmay in its discretion allow or |
4981
|
deny a member service credit in disputed or doubtful cases for |
4982
|
employment in Florida and out-of-state schools in order to serve |
4983
|
the best interests of the state and the member, subject to the |
4984
|
membership dates set forth in s. 238.06(4). |
4985
|
Section 86. Subsection (4) of section 650.02, Florida |
4986
|
Statutes, is amended to read: |
4987
|
650.02 Definitions.--For the purpose of this chapter: |
4988
|
(4) The term "state agency" means the Division of |
4989
|
Retirement of the State Board of AdministrationDepartment of |
4990
|
Management Services. |
4991
|
Section 87. This act shall take effect July 1, 2003. |