HB 1575 2003
1	CHAMBER ACTION
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6	The Committee on State Administration recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to agency reorganization; transferring the
12	Division of Retirement and its powers, duties, functions,
13	components, and assets from the Department of Management
14	Services to the State Board of Administration; amending s.
15	110.205, F.S.; providing status of division personnel
16	under the Career Service System; amending ss. 20.22,
17	20.28, 112.05, 112.3173, 112.352, 112.354, 112.356,
18	112.358, 112.361, 112.362, 112.363, 112.625, 112.63,
19	112.64, 112.658, 112.661, 112.665, 121.021, 121.025,
20	121.031, 121.051, 121.0511, 121.0515, 121.052, 121.055,
21	121.081, 121.085, 121.091, 121.101, 121.111, 121.133,
22	121.135, 121.136, 121.1815, 121.1905, 121.192, 121.193,
23	121.22, 121.23, 121.24, 121.30, 121.35, 121.40, 121.45,
24	121.4501, 121.4503, 121.591, 121.5911, 121.72, 121.73,
25	121.74, 175.032, 175.1215, 185.02, 185.105, 185.23,
26	215.28, 215.44, 215.50, 215.52, 238.01, 238.05, 238.06,
27	238.181, 238.32, and 650.02, F.S., to conform to such
28	transfer; amending s. 175.341, F.S.; providing a
29	continuing appropriation from certain firefighter pension
30	trust funds; providing for the issuance of benefit
31	payments to certain persons by the Department of Financial
32	Services, the State Board of Administration, or a third-
33	party agent; providing an effective date.
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35	Be It Enacted by the Legislature of the State of Florida:
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37	Section 1. The Division of Retirement of the Department of
38	Management Services is transferred to the State Board of
39	Administration. All powers, duties, functions, records,
40	personnel, property, and unexpended balances of appropriations,
41	allocations, and other funds relating to the Division of
42	Retirement are transferred by a type one transfer, as defined in
43	s. 20.06, Florida Statutes, to the State Board of
44	Administration. This act does not alter or amend the powers,
45	operations, or functioning of the State Board of Administration
46	with respect to its duties, responsibilities, and authority
47	existing prior to the enactment of this legislation.
48	Section 2. Paragraphs (g) and (h) of subsection (2) of
49	section 20.22, Florida Statutes, are amended to read:
50	20.22 Department of Management Services.--There is created
51	a Department of Management Services.
52	(2) The following divisions and programs within the
53	Department of Management Services are established:
54	(g) Division of Retirement.
55	(g)(h)Division of State Group Insurance.
56	Section 3. Section 20.28, Florida Statutes, is amended to
57	read:
58	20.28 State Board of Administration.--The State Board of
59	Administration, continued by s. 4(e), Art. IVs. 9, Art. XIIof
60	the State Constitution, retains all of its powers, duties, and
61	functions as prescribed by law. There is established under the
62	State Board of Administration a Division of Retirement, which
63	shall be subject to the direction of the executive director of
64	the board who is the agency head of the division for purposes of
65	chapter 120.
66	Section 4. Paragraph (u) of subsection (2) of section
67	110.205, Florida Statutes, is amended to read:
68	110.205 Career service; exemptions.--
69	(2) EXEMPT POSITIONS.--The exempt positions that are not
70	covered by this part include the following:
71	(u) All officers and employees of the State Board of
72	Administration, including its Division of Retirement. The State
73	Board of Administration shall set the salaries and benefits of
74	these positions.
75	Section 5. Paragraph (b) of subsection (4) of section
76	112.05, Florida Statutes, is amended to read:
77	112.05 Retirement; cost-of-living adjustment; employment
78	after retirement.--
79	(4)
80	(b) Any person to whom the limitation in paragraph (a)
81	applies who violates such reemployment limitation and is
82	reemployed with any agency participating in the Florida
83	Retirement System prior to completion of the 12-month limitation
84	period shall give timely notice of this fact in writing to the
85	employer and to the Department of Management ServicesDivision;
86	and the person's retirement benefits shall be suspended for the
87	balance of the 12-month limitation period. Any person employed
88	in violation of this subsection and any employing agency which
89	knowingly employs or appoints such person without notifying the
90	Department of Management Services to suspend retirement benefits
91	shall be jointly and severally liable for reimbursement to the
92	retirement trust fund of any benefits paid during the
93	reemployment limitation period. To avoid liability, such
94	employing agency shall have a written statement from the retiree
95	that he or she is not retired from a state-administered
96	retirement system. Any retirement benefits received by such
97	person while reemployed during this limitation period shall be
98	repaid to the retirement trust fund, and the retirement benefits
99	shall remain suspended until such repayment has been made. Any
100	benefits suspended beyond the reemployment limitation period
101	shall apply toward the repayment of benefits received in
102	violation of the reemployment limitation.
103	Section 6. Paragraph (d) of subsection (4) of section
104	112.3173, Florida Statutes, is amended to read:
105	112.3173 Felonies involving breach of public trust and
106	other specified offenses by public officers and employees;
107	forfeiture of retirement benefits.--
108	(4) NOTICE.--
109	(d) The Commission on Ethics shall forward any notice and
110	any other document received by it pursuant to this subsection to
111	the governing body of the public retirement system of which the
112	public officer or employee is a member or from which the public
113	officer or employee may be entitled to receive a benefit. When
114	called on by the Commission on Ethics, the Division of
115	Retirement of the State Board of AdministrationDepartment of
116	Management Servicesshall assist the commission in identifying
117	the appropriate public retirement system.
118	Section 7. Subsections (2), (4), (7), and (8) of section
119	112.363, Florida Statutes, are amended to read:
120	112.363 Retiree health insurance subsidy.--
121	(2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.--
122	(a) A person who is retired under a state-administered
123	retirement system, or a beneficiary who is a spouse or financial
124	dependent entitled to receive benefits under a state-
125	administered retirement system, is eligible for health insurance
126	subsidy payments provided under this section; except that
127	pension recipients under ss. 121.40, 238.07(16)(a), and 250.22,
128	recipients of health insurance coverage under s. 110.1232, or
129	any other special pension or relief act shall not be eligible
130	for such payments.
131	(b) For purposes of this section, a person is deemed
132	retired from a state-administered retirement system when he or
133	she terminates employment with all employers participating in
134	the Florida Retirement System as described in s. 121.021(39)
135	and:
136	1. For a participant of the Public Employee Optional
137	Retirement Program established under part II of chapter 121, the
138	participant meets the age or service requirements to qualify for
139	normal retirement as set forth in s. 121.021(29).
140	2. For a member of the Florida Retirement System defined
141	benefit program, or any employee who maintains creditable
142	service under both the defined benefit program and the Public
143	Employee Optional Retirement Program, the member begins drawing
144	retirement benefits from the defined benefit program of the
145	Florida Retirement System.
146	(c)1. Effective July 1, 2001, any person retiring on or
147	after such date as a member of the Florida Retirement System,
148	including any participant of the defined contribution program
149	administered pursuant to part II of chapter 121, must have
150	satisfied the vesting requirements for his or her membership
151	class under the Florida Retirement System defined benefit
152	program as administered under part I of chapter 121.
153	2. Notwithstanding the provisions of subparagraph 1., a
154	person retiring due to disability must either qualify for a
155	regular or in-line-of-duty disability benefit as provided in s.
156	121.091(4) or qualify for a disability benefit under a
157	disability plan established under part II of chapter 121, as
158	appropriate.
159	(d) Payment of the retiree health insurance subsidy shall
160	be made only after coverage for health insurance for the retiree
161	or beneficiary has been certified in writing to the Division of
162	Retirement of the State Board of AdministrationDepartment of
163	Management Services. Participation in a former employer's group
164	health insurance program is not a requirement for eligibility
165	under this section.
166	(e) Participants in the Senior Management Service Optional
167	Annuity Program as provided in s. 121.055(6) and the State
168	University System Optional Retirement Program as provided in s.
169	121.35 shall not receive the retiree health insurance subsidy
170	provided in this section. The employer of such participant shall
171	pay the contributions required in subsection (8) to the annuity
172	program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
173	applicable.
174	(4) PAYMENT OF RETIREE HEALTH INSURANCE
175	SUBSIDY.--Beginning January 1, 1988, any monthly retiree health
176	insurance subsidy amount due and payable under this section
177	shall be paid to retired members by the Division of Retirement
178	of the State Board of AdministrationDepartment of Management
179	Services or under the direction and control of the division
180	department.
181	(7) ADMINISTRATION OF SYSTEM.--The Division of Retirement
182	of the State Board of AdministrationDepartment of Management
183	Servicesmay adopt such rules and regulations as are necessary
184	for the effective and efficient administration of this section.
185	The cost of administration isshall beappropriated from the
186	trust fund.
187	(8) CONTRIBUTIONS.--For purposes of funding the insurance
188	subsidy provided by this section:
189	(a) Beginning October 1, 1987, the employer of each member
190	of a state-administered retirement plan shall contribute 0.24
191	percent of gross compensation each pay period.
192	(b) Beginning January 1, 1989, the employer of each member
193	of a state-administered retirement plan shall contribute 0.48
194	percent of gross compensation each pay period.
195	(c) Beginning January 1, 1994, the employer of each member
196	of a state-administered retirement plan shall contribute 0.56
197	percent of gross compensation each pay period.
198	(d) Beginning January 1, 1995, the employer of each member
199	of a state-administered retirement plan shall contribute 0.66
200	percent of gross compensation each pay period.
201	(e) Beginning July 1, 1998, the employer of each member of
202	a state-administered retirement plan shall contribute 0.94
203	percent of gross compensation each pay period.
204	(f) Beginning July 1, 2001, the employer of each member of
205	a state-administered plan shall contribute 1.11 percent of gross
206	compensation each pay period.
207
208	Such contributions shall be submitted to the Division of
209	Retirement of the State Board of AdministrationDepartment of
210	Management Servicesand deposited in the Retiree Health
211	Insurance Subsidy Trust Fund.
212	Section 8. Subsection (10) is added to section 112.625,
213	Florida Statutes, to read:
214	112.625 Definitions.--As used in this act:
215	(10) "Division" means the Division of Retirement of the
216	State Board of Administration.
217	Section 9. Subsections (2) and (4) of section 112.63,
218	Florida Statutes, are amended to read:
219	112.63 Actuarial reports and statements of actuarial
220	impact; review.--
221	(2) The frequency of actuarial reports must be at least
222	every 3 years commencing from the last actuarial report of the
223	plan or system or October 1, 1980, if no actuarial report has
224	been issued within the 3-year period prior to October 1, 1979.
225	The results of each actuarial report shall be filed with the
226	plan administrator within 60 days of certification. Thereafter,
227	the results of each actuarial report shall be made available for
228	inspection upon request. Additionally, each retirement system or
229	plan covered by this act which is not administered directly by
230	the divisionDepartment of Management Servicesshall furnish a
231	copy of each actuarial report to the divisionDepartment of
232	Management Serviceswithin 60 days after receipt from the
233	actuary. The requirements of this section are supplemental to
234	actuarial valuations necessary to comply with the requirements
235	of ss. 218.321 and 218.39.
236	(4) Upon receipt, pursuant to subsection (2), of an
237	actuarial report, or upon receipt, pursuant to subsection (3),
238	of a statement of actuarial impact, the divisionDepartment of
239	Management Servicesshall acknowledge such receipt, but shall
240	only review and comment on each retirement system's or plan's
241	actuarial valuations at least on a triennial basis. If the
242	divisiondepartmentfinds that the actuarial valuation is not
243	complete, accurate, or based on reasonable assumptions, or if
244	the divisiondepartmentdoes not receive the actuarial report or
245	statement of actuarial impact, the divisiondepartmentshall
246	notify the local government and request appropriate adjustment.
247	If, after a reasonable period of time, a satisfactory adjustment
248	is not made, the affected local government or the division
249	departmentmay petition for a hearing under the provisions of
250	ss. 120.569 and 120.57. If the administrative law judge
251	recommends in favor of the divisiondepartment, the division
252	departmentshall perform an actuarial review or prepare the
253	statement of actuarial impact. The cost to the division
254	departmentof performing such actuarial review or preparing such
255	statement shall be charged to the governmental entity of which
256	the employees are covered by the retirement system or plan. If
257	payment of such costs is not received by the divisiondepartment
258	within 60 days after receipt by the governmental entity of the
259	request for payment, the divisiondepartmentshall certify to
260	the Comptroller the amount due, and the Comptroller shall pay
261	such amount to the divisiondepartmentfrom any funds payable to
262	the governmental entity of which the employees are covered by
263	the retirement system or plan. If the administrative law judge
264	recommends in favor of the local retirement system and the
265	divisiondepartmentperforms an actuarial review, the cost to
266	the divisiondepartmentof performing the actuarial review shall
267	be paid by the divisiondepartment.
268	Section 10. Subsection (1) of section 112.64, Florida
269	Statutes, is amended to read:
270	112.64 Administration of funds; amortization of unfunded
271	liability.--
272	(1) Employee contributions shall be deposited in the
273	retirement system or plan at least monthly. Employer
274	contributions shall be deposited at least quarterly; however,
275	any revenues received from any source by an employer which are
276	specifically collected for the purpose of allocation for deposit
277	into a retirement system or plan shall be so deposited within 30
278	days of receipt by the employer. All employers and employees
279	participating in the Florida Retirement System and other
280	existing retirement systems which are administered by the
281	divisionDepartment of Management Servicesshall continue to
282	make contributions at least monthly.
283	Section 11. Subsections (1) and (3) of section 112.658,
284	Florida Statutes, are amended to read:
285	112.658 Office of Program Policy Analysis and Government
286	Accountability to determine compliance of the Florida Retirement
287	System.--
288	(1) The Office of Program Policy Analysis and Government
289	Accountability shall determine, through the examination of
290	actuarial reviews, financial statements, and the practices and
291	procedures of the Division of RetirementDepartment of
292	Management Services, the compliance of the Florida Retirement
293	System with the provisions of this act.
294	(3) The Office of Program Policy Analysis and Government
295	Accountability shall employ the same actuarial standards to
296	monitor the divisionDepartment of Management Services as the
297	divisionDepartment of Management Servicesuses to monitor local
298	governments.
299	Section 12. Subsections (9), (16), and (17) of section
300	112.661, Florida Statutes, are amended to read:
301	112.661 Investment policies.--Investment of the assets of
302	any local retirement system or plan must be consistent with a
303	written investment policy adopted by the board. Such policies
304	shall be structured to maximize the financial return to the
305	retirement system or plan consistent with the risks incumbent in
306	each investment and shall be structured to establish and
307	maintain an appropriate diversification of the retirement system
308	or plan's assets.
309	(9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy
310	shall require that, for each actuarial valuation, the board
311	determine the total expected annual rate of return for the
312	current year, for each of the next several years, and for the
313	long term thereafter. This determination must be filed promptly
314	with the divisionDepartment of Management Servicesand with the
315	plan's sponsor and the consulting actuary. The division
316	departmentshall use this determination only to notify the
317	board, the plan's sponsor, and consulting actuary of material
318	differences between the total expected annual rate of return and
319	the actuarial assumed rate of return.
320	(16) FILING OF INVESTMENT POLICY.--Upon adoption by the
321	board, the investment policy shall be promptly filed with the
322	divisionDepartment of Management Servicesand the plan's
323	sponsor and consulting actuary. The effective date of the
324	investment policy, and any amendment thereto, shall be the 31st
325	calendar day following the filing date with the plan sponsor.
326	(17) VALUATION OF ILLIQUID INVESTMENTS.--The investment
327	policy shall provide for the valuation of illiquid investments
328	for which a generally recognized market is not available or for
329	which there is no consistent or generally accepted pricing
330	mechanism. If those investments are utilized, the investment
331	policy must include the criteria set forth in s. 215.47(6),
332	except that submission to the Investment Advisory Council is not
333	required. The investment policy shall require that, for each
334	actuarial valuation, the board must verify the determination of
335	the fair market value for those investments and ascertain that
336	the determination complies with all applicable state and federal
337	requirements. The investment policy shall require that the board
338	disclose to the divisionDepartment of Management Servicesand
339	the plan's sponsor each such investment for which the fair
340	market value is not provided.
341	Section 13. Section 112.665, Florida Statutes, is amended
342	to read:
343	112.665 Duties of Division of RetirementDepartment of
344	Management Services.--
345	(1) The Division of RetirementDepartment of Management
346	Servicesshall:
347	(a) Gather, catalog, and maintain complete, computerized
348	data information on all public employee retirement systems or
349	plans in the state, based upon a review of audits, reports, and
350	other data pertaining to the systems or plans;
351	(b) Receive and comment upon all actuarial reviews of
352	retirement systems or plans maintained by units of local
353	government;
354	(c) Cooperate with local retirement systems or plans on
355	matters of mutual concern and provide technical assistance to
356	units of local government in the assessment and revision of
357	retirement systems or plans;
358	(d) Issue, by January 1 annually, a report to the
359	President of the Senate and the Speaker of the House of
360	Representatives, which report details division activities,
361	findings, and recommendations concerning all governmental
362	retirement systems. The report may include legislation proposed
363	to carry out such recommendations;
364	(e) Issue, by January 1 annually, a report to the Special
365	District Information Program of the Department of Community
366	Affairs that includes the participation in and compliance of
367	special districts with the local government retirement system
368	provisions in s. 112.63 and the state-administered retirement
369	system provisions as specified in part I of chapter 121; and
370	(f) Adopt reasonable rules to administer the provisions of
371	this part.
372	(2) The divisiondepartmentmay subpoena actuarial
373	witnesses, review books and records, hold hearings, and take
374	testimony. A witness shall have the right to be accompanied by
375	counsel.
376	Section 14. Subsections (4), (5), and (32), and paragraph
377	(a) of subsection (39) of section 121.021, Florida Statutes, are
378	amended, and subsection (62) is added to said section, to read:
379	121.021 Definitions.--The following words and phrases as
380	used in this chapter have the respective meanings set forth
381	unless a different meaning is plainly required by the context:
382	(4) "DivisionDepartment" means the Division of Retirement
383	of the State Board of AdministrationDepartment of Management
384	Services.
385	(5) "Administrator" means the executive director of the
386	State Board of Administrationsecretary of the Department of
387	Management Services.
388	(32) "State agency" means the Division of Retirement
389	Department of Management Serviceswithin the provisions and
390	contemplation of chapter 650.
391	(39)(a) "Termination" occurs, except as provided in
392	paragraph (b), when a member ceases all employment relationships
393	with employers under this system, as defined in subsection (10),
394	but in the event a member should be employed by any such
395	employer within the next calendar month, termination shall be
396	deemed not to have occurred. A leave of absence shall constitute
397	a continuation of the employment relationship, except that a
398	leave of absence without pay due to disability may constitute
399	termination for a member, if such member makes application for
400	and is approved for disability retirement in accordance with s.
401	121.091(4). The divisiondepartmentmay require other evidence
402	of termination as it deems necessary.
403	(62) "Board" means the State Board of Administration.
404	Section 15. Section 121.025, Florida Statutes, is amended
405	to read:
406	121.025 Administrator; powers and duties.--The executive
407	director of the State Board of Administrationsecretary of the
408	Department of Management Servicesshall be the administrator of
409	the retirement and pension systems assigned or transferred to
410	the divisionDepartment of Management Services by law. The
411	executive director of the State Board of Administration is the
412	trustee of the System Trust Fundand shall have the authority to
413	sign the contracts necessary to carry out the duties and
414	responsibilities assigned by law to the divisionDepartment of
415	Management Services.
416	Section 16. Subsections (1), (2), and (5) and paragraph
417	(e) of subsection (3) of section 121.031, Florida Statutes, are
418	amended to read:
419	121.031 Administration of system; appropriation; oaths;
420	actuarial studies; public records.--
421	(1) The divisionDepartment of Management Serviceshas the
422	authority to adopt rules pursuant to ss. 120.536(1) and 120.54
423	to implement the provisions of law conferring duties upon the
424	divisiondepartmentand to adopt rules as are necessary for the
425	effective and efficient administration of this system. The funds
426	to pay the expenses for administration of the system are hereby
427	appropriated from the interest earned on investments made for
428	the retirement and social security trust funds and the
429	assessments allowed under chapter 650.
430	(2) The divisionDepartment of Management Servicesis
431	authorized to require oaths, by affidavit or otherwise, and
432	acknowledgments from persons in connection with the
433	administration of its duties and responsibilities under this
434	chapter.
435	(3) The administrator shall cause an actuarial study of
436	the system to be made at least annually and shall report the
437	results of such study to the Legislature by December 31 prior to
438	the next legislative session. The study shall, at a minimum,
439	conform to the requirements of s. 112.63, with the following
440	exceptions and additions:
441	(e) The study shall include measures of funding status and
442	funding progress designed to facilitate the assessment of trends
443	over several actuarial valuations with respect to the overall
444	solvency of the system. Such measures shall be adopted by the
445	divisiondepartmentand shall be used consistently in all
446	actuarial valuations performed on the system.
447	(5) The names and addresses of retirees are confidential
448	and exempt from the provisions of s. 119.07(1) to the extent
449	that no state or local governmental agency may provide the names
450	or addresses of such persons in aggregate, compiled, or list
451	form to any person except to a public agency engaged in official
452	business. However, a state or local government agency may
453	provide the names and addresses of retirees from that agency to
454	a bargaining agent as defined in s. 447.203(12) or to a retiree
455	organization for official business use. Lists of names or
456	addresses of retirees may be exchanged by public agencies, but
457	such lists shall not be provided to, or open for inspection by,
458	the public. Any person may view or copy any individual's
459	retirement records at the divisionDepartment of Management
460	Services, one record at a time, or may obtain information by a
461	separate written request for a named individual for which
462	information is desired.
463	Section 17. Paragraph (c) of subsection (1) and paragraphs
464	(b) and (f) of subsection (2) of section 121.051, Florida
465	Statutes, are amended to read:
466	121.051 Participation in the system.--
467	(1) COMPULSORY PARTICIPATION.--
468	(c)1. After June 30, 1983, a member of an existing system
469	who is reemployed after terminating employment shall have at the
470	time of reemployment the option of selecting to remain in the
471	existing retirement system or to transfer to the Florida
472	Retirement System. Failure to submit such selection in writing
473	to the divisionDepartment of Management Serviceswithin 6
474	months of reemployment shall result in compulsory membership in
475	the Florida Retirement System.
476	2. After June 30, 1988, the provisions of subparagraph 1.
477	shall not apply to a member of an existing system who is
478	reemployed within 12 months after terminating employment. Such
479	member shall continue to have membership in the existing system
480	upon reemployment and shall not be permitted to become a member
481	of the Florida Retirement System, except by transferring to that
482	system as provided in ss. 121.052 and 121.055.
483	(2) OPTIONAL PARTICIPATION.--
484	(b)1. The governing body of any municipality or special
485	district in the state may elect to participate in the system
486	upon proper application to the administrator and may cover all
487	or any of its units as approved by the Secretary of Health and
488	Human Services and the administrator. The divisiondepartment
489	shall adopt rules establishing provisions for the submission of
490	documents necessary for such application. Prior to being
491	approved for participation in the Florida Retirement System, the
492	governing body of any such municipality or special district that
493	has a local retirement system shall submit to the administrator
494	a certified financial statement showing the condition of the
495	local retirement system as of a date within 3 months prior to
496	the proposed effective date of membership in the Florida
497	Retirement System. The statement must be certified by a
498	recognized accounting firm that is independent of the local
499	retirement system. All required documents necessary for
500	extending Florida Retirement System coverage must be received by
501	the divisiondepartmentfor consideration at least 15 days prior
502	to the proposed effective date of coverage. If the municipality
503	or special district does not comply with this requirement, the
504	divisiondepartmentmay require that the effective date of
505	coverage be changed.
506	2. Any city or special district that has an existing
507	retirement system covering the employees in the units that are
508	to be brought under the Florida Retirement System may
509	participate only after holding a referendum in which all
510	employees in the affected units have the right to participate.
511	Only those employees electing coverage under the Florida
512	Retirement System by affirmative vote in said referendum shall
513	be eligible for coverage under this chapter, and those not
514	participating or electing not to be covered by the Florida
515	Retirement System shall remain in their present systems and
516	shall not be eligible for coverage under this chapter. After the
517	referendum is held, all future employees shall be compulsory
518	members of the Florida Retirement System.
519	3. The governing body of any city or special district
520	complying with subparagraph 1. may elect to provide, or not
521	provide, benefits based on past service of officers and
522	employees as described in s. 121.081(1). However, if such
523	employer elects to provide past service benefits, such benefits
524	must be provided for all officers and employees of its covered
525	group.
526	4. Once this election is made and approved it may not be
527	revoked, except pursuant to subparagraphs 5. and 6., and all
528	present officers and employees electing coverage under this
529	chapter and all future officers and employees shall be
530	compulsory members of the Florida Retirement System.
531	5. Subject to the conditions set forth in subparagraph 6.,
532	the governing body of any hospital licensed under chapter 395
533	which is governed by the board of a special district as defined
534	in s. 189.403(1) or by the board of trustees of a public health
535	trust created under s. 154.07, hereinafter referred to as
536	"hospital district," and which participates in the system, may
537	elect to cease participation in the system with regard to future
538	employees in accordance with the following procedure:
539	a. No more than 30 days and at least 7 days before
540	adopting a resolution to partially withdraw from the Florida
541	Retirement System and establish an alternative retirement plan
542	for future employees, a public hearing must be held on the
543	proposed withdrawal and proposed alternative plan.
544	b. From 7 to 15 days before such hearing, notice of intent
545	to withdraw, specifying the time and place of the hearing, must
546	be provided in writing to employees of the hospital district
547	proposing partial withdrawal and must be published in a
548	newspaper of general circulation in the area affected, as
549	provided by ss. 50.011-50.031. Proof of publication of such
550	notice shall be submitted to the divisionDepartment of
551	Management Services.
552	c. The governing body of any hospital district seeking to
553	partially withdraw from the system must, before such hearing,
554	have an actuarial report prepared and certified by an enrolled
555	actuary, as defined in s. 112.625(3), illustrating the cost to
556	the hospital district of providing, through the retirement plan
557	that the hospital district is to adopt, benefits for new
558	employees comparable to those provided under the Florida
559	Retirement System.
560	d. Upon meeting all applicable requirements of this
561	subparagraph, and subject to the conditions set forth in
562	subparagraph 6., partial withdrawal from the system and adoption
563	of the alternative retirement plan may be accomplished by
564	resolution duly adopted by the hospital district board. The
565	hospital district board must provide written notice of such
566	withdrawal to the division by mailing a copy of the resolution
567	to the division, postmarked no later than December 15, 1995. The
568	withdrawal shall take effect January 1, 1996.
569	6. Following the adoption of a resolution under sub-
570	subparagraph 5.d., all employees of the withdrawing hospital
571	district who were participants in the Florida Retirement System
572	prior to January 1, 1996, shall remain as participants in the
573	system for as long as they are employees of the hospital
574	district, and all rights, duties, and obligations between the
575	hospital district, the system, and the employees shall remain in
576	full force and effect. Any employee who is hired or appointed on
577	or after January 1, 1996, may not participate in the Florida
578	Retirement System, and the withdrawing hospital district shall
579	have no obligation to the system with respect to such employees.
580	(f)1. Whenever an employer that participates in the
581	Florida Retirement System undertakes the transfer, merger, or
582	consolidation of governmental services or functions, the
583	employer must notify the divisiondepartmentat least 60 days
584	prior to such action and shall provide documentation as required
585	by the divisiondepartment.
586	2. When the agency to which a member's employing unit is
587	transferred, merged, or consolidated does not participate in the
588	Florida Retirement System, a member shall elect in writing to
589	remain in the Florida Retirement System or to transfer to the
590	local retirement system operated by such agency. If such agency
591	does not participate in a local retirement system, the member
592	shall continue membership in the Florida Retirement System. In
593	either case, the membership shall continue for as long as the
594	member is employed by the agency to which his or her unit was
595	transferred, merged, or consolidated.
596	Section 18. Subsection (2) of section 121.0511, Florida
597	Statutes, is amended to read:
598	121.0511 Revocation of election and alternative plan.--The
599	governing body of any municipality or independent special
600	district that has elected to participate in the Florida
601	Retirement System may revoke its election in accordance with the
602	following procedure:
603	(2) At least 7 days, but not more than 15 days, before the
604	hearing, notice of intent to revoke, specifying the time and
605	place of the hearing, must be published in a newspaper of
606	general circulation in the area affected, as provided by ss.
607	50.011-50.031. Proof of publication of the notice must be
608	submitted to the divisionDepartment of Management Services.
609	Section 19. Subsections (3) and (4) and paragraph (c) of
610	subsection (7) of section 121.0515, Florida Statutes, are
611	amended to read:
612	121.0515 Special risk membership.--
613	(3) PROCEDURE FOR DESIGNATING.--
614	(a) Any member of the Florida Retirement System employed
615	by a county, city, or special district who feels that he or she
616	meets the criteria set forth in this section for membership in
617	the Special Risk Class may request that his or her employer
618	submit an application to the divisiondepartmentrequesting that
619	the divisiondepartmentdesignate him or her as a special risk
620	member. If the employer agrees that the member meets the
621	requirements for special risk membership, the employer shall
622	submit an application to the divisiondepartmentin behalf of
623	the employee containing a certification that the member meets
624	the criteria for special risk membership set forth in this
625	section and such other supporting documentation as may be
626	required by administrative rule. The divisiondepartmentshall,
627	within 90 days, either designate or refuse to designate the
628	member as a special risk member. If the employer declines to
629	submit the member's application to the divisiondepartmentor if
630	the divisiondepartmentdoes not designate the member as a
631	special risk member, the member or the employer may appeal to
632	the State Retirement Commission, as provided in s. 121.23, for
633	designation as a special risk member. A member who receives a
634	final affirmative ruling pursuant to such appeal for special
635	risk membership shall have special risk membership retroactive
636	to the date such member would have had special risk membership
637	had such membership been approved by the employer and the
638	divisiondepartment, as determined by the divisiondepartment,
639	and the employer contributions shall be paid in full within 1
640	year after such final ruling.
641	(b)1. Applying the criteria set forth in this section, the
642	divisionDepartment of Management Servicesshall specify which
643	current and newly created classes of positions under the uniform
644	classification plan established pursuant to chapter 110 entitle
645	the incumbents of positions in those classes to membership in
646	the Special Risk Class. Only employees employed in the classes
647	so specified shall be special risk members.
648	2. When a class is not specified by the division
649	departmentas provided in subparagraph 1., the employing agency
650	may petition the State Retirement Commission for approval in
651	accordance with s. 121.23.
652	(4) REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member who is
653	a special risk member on October 1, 1978, and who fails to meet
654	the criteria for special risk membership established by this
655	section shall have his or her special risk designation removed
656	and thereafter shall be a regular member and shall earn only
657	regular membership credit. The divisiondepartmentshall have
658	the authority to review the special risk designation of members
659	to determine whether or not those members continue to meet the
660	criteria for special risk membership.
661	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.--
662	(c) The divisiondepartmentshall adopt such rules as are
663	required to administer this subsection.
664	Section 20. Paragraph (e) of subsection (3) of section
665	121.052, Florida Statutes, is amended to read:
666	121.052 Membership class of elected officers.--
667	(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
668	July 1, 1990, participation in the Elected Officers' Class shall
669	be compulsory for elected officers listed in paragraphs (2)(a)-
670	(d) and (f) assuming office on or after said date, unless the
671	elected officer elects membership in another class or withdraws
672	from the Florida Retirement System as provided in paragraphs
673	(3)(a)-(d):
674	(e) Effective July 1, 2001, the governing body of a
675	municipality or special district may, by majority vote, elect to
676	designate all its elected positions for inclusion in the Elected
677	Officers' Class. Such election shall be made between July 1,
678	2001, and December 31, 2001, and shall be irrevocable. The
679	designation of such positions shall be effective the first day
680	of the month following receipt by the divisiondepartmentof the
681	ordinance or resolution passed by the governing body.
682	Section 21. Paragraphs (b) and (h) of subsection (1) and
683	paragraphs (a), (c), (d), and (f) of subsection (6) of section
684	121.055, Florida Statutes, are amended to read:
685	121.055 Senior Management Service Class.--There is hereby
686	established a separate class of membership within the Florida
687	Retirement System to be known as the "Senior Management Service
688	Class," which shall become effective February 1, 1987.
689	(1)
690	(b)1. Except as provided in subparagraph 2., effective
691	January 1, 1990, participation in the Senior Management Service
692	Class shall be compulsory for the president of each community
693	college, the manager of each participating city or county, and
694	all appointed district school superintendents. Effective January
695	1, 1994, additional positions may be designated for inclusion in
696	the Senior Management Service Class of the Florida Retirement
697	System, provided that:
698	a. Positions to be included in the class shall be
699	designated by the local agency employer. Notice of intent to
700	designate positions for inclusion in the class shall be
701	published once a week for 2 consecutive weeks in a newspaper of
702	general circulation published in the county or counties
703	affected, as provided in chapter 50.
704	b. Up to 10 nonelective full-time positions may be
705	designated for each local agency employer reporting to the
706	divisionDepartment of Management Services; for local agencies
707	with 100 or more regularly established positions, additional
708	nonelective full-time positions may be designated, not to exceed
709	1 percent of the regularly established positions within the
710	agency.
711	c. Each position added to the class must be a managerial
712	or policymaking position filled by an employee who is not
713	subject to continuing contract and serves at the pleasure of the
714	local agency employer without civil service protection, and who:
715	(I) Heads an organizational unit; or
716	(II) Has responsibility to effect or recommend personnel,
717	budget, expenditure, or policy decisions in his or her areas of
718	responsibility.
719	2. In lieu of participation in the Senior Management
720	Service Class, members of the Senior Management Service Class
721	pursuant to the provisions of subparagraph 1. may withdraw from
722	the Florida Retirement System altogether. The decision to
723	withdraw from the Florida Retirement System shall be irrevocable
724	for as long as the employee holds such a position. Any service
725	creditable under the Senior Management Service Class shall be
726	retained after the member withdraws from the Florida Retirement
727	System; however, additional service credit in the Senior
728	Management Service Class shall not be earned after such
729	withdrawal. Such members shall not be eligible to participate in
730	the Senior Management Service Optional Annuity Program.
731	(h)1. Except as provided in subparagraph 3., effective
732	January 1, 1994, participation in the Senior Management Service
733	Class shall be compulsory for the State Courts Administrator and
734	the Deputy State Courts Administrators, the Clerk of the Supreme
735	Court, the Marshal of the Supreme Court, the Executive Director
736	of the Justice Administrative Commission, the Capital Collateral
737	Regional Counsels, the clerks of the district courts of appeals,
738	the marshals of the district courts of appeals, and the trial
739	court administrator and the Chief Deputy Court Administrator in
740	each judicial circuit. Effective January 1, 1994, additional
741	positions in the offices of the state attorney and public
742	defender in each judicial circuit may be designated for
743	inclusion in the Senior Management Service Class of the Florida
744	Retirement System, provided that:
745	a. Positions to be included in the class shall be
746	designated by the state attorney or public defender, as
747	appropriate. Notice of intent to designate positions for
748	inclusion in the class shall be published once a week for 2
749	consecutive weeks in a newspaper of general circulation
750	published in the county or counties affected, as provided in
751	chapter 50.
752	b. One nonelective full-time position may be designated
753	for each state attorney and public defender reporting to the
754	divisionDepartment of Management Services; for agencies with
755	200 or more regularly established positions under the state
756	attorney or public defender, additional nonelective full-time
757	positions may be designated, not to exceed 0.5 percent of the
758	regularly established positions within the agency.
759	c. Each position added to the class must be a managerial
760	or policymaking position filled by an employee who serves at the
761	pleasure of the state attorney or public defender without civil
762	service protection, and who:
763	(I) Heads an organizational unit; or
764	(II) Has responsibility to effect or recommend personnel,
765	budget, expenditure, or policy decisions in his or her areas of
766	responsibility.
767	2. Participation in this class shall be compulsory, except
768	as provided in subparagraph 3., for any judicial employee who
769	holds a position designated for coverage in the Senior
770	Management Service Class, and such participation shall continue
771	until the employee terminates employment in a covered position.
772	Effective January 1, 2001, participation in this class is
773	compulsory for assistant state attorneys, assistant statewide
774	prosecutors, assistant public defenders, and assistant capital
775	collateral regional counsels. Effective January 1, 2002,
776	participation in this class is compulsory for assistant
777	attorneys general.
778	3. In lieu of participation in the Senior Management
779	Service Class, such members, excluding assistant state
780	attorneys, assistant public defenders, assistant statewide
781	prosecutors, assistant attorneys general, and assistant capital
782	collateral regional counsels, may participate in the Senior
783	Management Service Optional Annuity Program as established in
784	subsection (6).
785	(6)(a) Senior Management Service Optional Annuity
786	Program.--The State Board of AdministrationDepartment of
787	Management Servicesshall establish a Senior Management Service
788	Optional Annuity Program under which contracts providing
789	retirement, death, and disability benefits may be purchased for
790	those employees who elect to participate in the optional annuity
791	program. The benefits to be provided for or on behalf of
792	participants in such optional annuity program shall be provided
793	through individual contracts or individual certificates issued
794	for group annuity contracts, which may be fixed, variable, or a
795	combination thereof, in accordance with s. 401(a) of the
796	Internal Revenue Code. Any such individual contract or
797	certificate shall state the annuity plan on its face page, and
798	shall include, but not be limited to, a statement of ownership,
799	the contract benefits, annuity income options, limitations,
800	expense charges, and surrender charges, if any. The employing
801	agency shall contribute, as provided in this section, toward the
802	purchase of such optional benefits which shall be fully and
803	immediately vested in the participants.
804	(c) Participation.--
805	1. Any eligible employee who is employed on or before
806	February 1, 1987, may elect to participate in the optional
807	annuity program in lieu of participation in the Senior
808	Management Service Class. Such election shall be made in writing
809	and filed with the boarddepartmentand the personnel officer of
810	the employer on or before May 1, 1987. Any eligible employee who
811	is employed on or before February 1, 1987, and who fails to make
812	an election to participate in the optional annuity program by
813	May 1, 1987, shall be deemed to have elected membership in the
814	Senior Management Service Class.
815	2. Any employee who becomes eligible to participate in the
816	optional annuity program by reason of initial employment
817	commencing after February 1, 1987, may, within 90 days after the
818	date of commencement of employment, elect to participate in the
819	optional annuity program. Such election shall be made in writing
820	and filed with the personnel officer of the employer. Any
821	eligible employee who does not within 90 days after commencement
822	of such employment elect to participate in the optional annuity
823	program shall be deemed to have elected membership in the Senior
824	Management Service Class.
825	3. A person who is appointed to a position in the Senior
826	Management Service Class and who is a member of an existing
827	retirement system or the Special Risk or Special Risk
828	Administrative Support Classes of the Florida Retirement System
829	may elect to remain in such system or class in lieu of
830	participation in the Senior Management Service Class or optional
831	annuity program. Such election shall be made in writing and
832	filed with the boarddepartmentand the personnel officer of the
833	employer within 90 days of such appointment. Any eligible
834	employee who fails to make an election to participate in the
835	existing system, the Special Risk Class of the Florida
836	Retirement System, the Special Risk Administrative Support Class
837	of the Florida Retirement System, or the optional annuity
838	program shall be deemed to have elected membership in the Senior
839	Management Service Class.
840	4. Except as provided in subparagraph 5., an employee's
841	election to participate in the optional annuity program is
842	irrevocable as long as such employee continues to be employed in
843	an eligible position and continues to meet the eligibility
844	requirements set forth in this paragraph.
845	5. Effective from July 1, 2002, through September 30,
846	2002, any active employee in a regularly established position
847	who has elected to participate in the Senior Management Service
848	Optional Annuity Program has one opportunity to choose to move
849	from the Senior Management Service Optional Annuity Program to
850	the Florida Retirement System defined benefit program.
851	a. The election must be made in writing and must be filed
852	with the department and the personnel officer of the employer
853	before October 1, 2002, or, in the case of an active employee
854	who is on a leave of absence on July 1, 2002, within 90 days
855	after the conclusion of the leave of absence. This election is
856	irrevocable.
857	b. The employee will receive service credit under the
858	defined benefit program of the Florida Retirement System equal
859	to his or her years of service under the Senior Management
860	Service Optional Annuity Program. The cost for such credit shall
861	be an amount representing the present value of that employee's
862	accumulated benefit obligation for the affected period of
863	service.
864	c. The employee must transfer the total accumulated
865	employer contributions and earnings on deposit in his or her
866	Senior Management Service Optional Annuity Program account. If
867	the transferred amount is not sufficient to pay the amount due,
868	the employee must pay a sum representing the remainder of the
869	amount due. In no case may the employee retain any employer
870	contributions or earnings thereon from the Senior Management
871	Service Optional Annuity Program account.
872	(d) Contributions.--
873	1. Through June 30, 2001, each employer shall contribute
874	on behalf of each participant in the Senior Management Service
875	Optional Annuity Program an amount equal to the normal cost
876	portion of the employer retirement contribution which would be
877	required if the participant were a Senior Management Service
878	Class member of the Florida Retirement System defined benefit
879	program, plus the portion of the contribution rate required in
880	s. 112.363(8) that would otherwise be assigned to the Retiree
881	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
882	each employer shall contribute on behalf of each participant in
883	the optional program an amount equal to 12.49 percent of the
884	participant's gross monthly compensation. The boarddepartment
885	shall deduct an amount approved by the board, pursuant to s.
886	215.44(4),Legislatureto provide for the administration of this
887	program. The payment of the contributions to the optional
888	program which is required by this subparagraph for each
889	participant shall be made by the employer to the board
890	department, which shall forward the contributions to the
891	designated company or companies contracting for payment of
892	benefits for the participant under the program.
893	2. Each employer shall contribute on behalf of each
894	participant in the Senior Management Service Optional Annuity
895	Program an amount equal to the unfunded actuarial accrued
896	liability portion of the employer contribution which would be
897	required for members of the Senior Management Service Class in
898	the Florida Retirement System. This contribution shall be paid
899	to the boarddepartmentfor transfer to the Florida Retirement
900	System Trust Fund.
901	3. An Optional Annuity Program Trust Fund shall be
902	established in the State Treasury and administered by the board
903	departmentto make payments to provider companies on behalf of
904	the optional annuity program participants, and to transfer the
905	unfunded liability portion of the state optional annuity program
906	contributions to the Florida Retirement System Trust Fund.
907	4. Contributions required for social security by each
908	employer and each participant, in the amount required for social
909	security coverage as now or hereafter may be provided by the
910	federal Social Security Act shall be maintained for each
911	participant in the Senior Management Service retirement program
912	and shall be in addition to the retirement contributions
913	specified in this paragraph.
914	5. Each participant in the Senior Management Service
915	Optional Annuity Program may contribute by way of salary
916	reduction or deduction a percentage amount of the participant' s
917	gross compensation not to exceed the percentage amount
918	contributed by the employer to the optional annuity program.
919	Payment of the participant's contributions shall be made by the
920	employer to the boarddepartment, which shall forward the
921	contributions to the designated company or companies contracting
922	for payment of benefits for the participant under the program.
923	(f) Administration.--
924	1. The Senior Management Service Optional Annuity Program
925	authorized by this section shall be administered by the board
926	department. The boarddepartmentshall designate one or more
927	provider companies from which annuity contracts may be purchased
928	under the program and shall approve the form and content of the
929	contracts. The boarddepartmentshall sign a contract with each
930	of the provider companies and shall evaluate the performance of
931	the provider companies on a continuing basis. The board
932	departmentmay terminate the services of a provider company for
933	reasons stated in the contract. The boarddepartmentshall adopt
934	rules establishing its responsibilities and the responsibilities
935	of employers in administering the optional annuity program.
936	2. Effective July 1, 1997, the State Board of
937	Administration shall review and make recommendations to the
938	department on the acceptability of all investment products
939	proposed by provider companies of the optional annuity program
940	before such products are offered through annuity contracts to
941	the participants and may advise the department of any changes
942	deemed necessary to ensure that the optional annuity program
943	offers an acceptable mix of investment products. The board
944	department shall determine whichmake the final determination as
945	to whether an investment productsproduct will be included in
946	approved forthe program.
947	3. The provisions of each contract applicable to a
948	participant in the Senior Management Service Optional Annuity
949	Program shall be contained in a written program description
950	which shall include a report of pertinent financial and
951	actuarial information on the solvency and actuarial soundness of
952	the program and the benefits applicable to the participant. Such
953	description shall be furnished by the company or companies to
954	each participant in the program and to the boarddepartmentupon
955	commencement of participation in the program and annually
956	thereafter.
957	4. The boarddepartmentshall ensure that each participant
958	in the Senior Management Service Optional Annuity Program is
959	provided an accounting of the total contribution and the annual
960	contribution made by and on behalf of such participants.
961	Section 22. Paragraph (h) of subsection (1) and paragraph
962	(e) of subsection (2) of section 121.081, Florida Statutes, are
963	amended to read:
964	121.081 Past service; prior service;
965	contributions.--Conditions under which past service or prior
966	service may be claimed and credited are:
967	(1)
968	(h) The following provisions apply to the purchase of past
969	service:
970	1. Notwithstanding any of the provisions of this
971	subsection, past-service credit may not be purchased under this
972	chapter for any service that is used to obtain a benefit from
973	any local retirement system.
974	2. A member may not receive past service credit under
975	paragraphs (a), (b), (e), or (f) for any leaves of absence
976	without pay, except that credit for active military service
977	leaves of absence may be claimed under paragraphs (a), (b), and
978	(f), in accordance with s. 121.111(1).
979	3. If a member does not desire to receive credit for all
980	of his or her past service, the period the member claims must be
981	the most recent past service prior to his or her participation
982	in the Florida Retirement System.
983	4. The cost of past service purchased by an employing
984	agency for its employees may be amortized over such period of
985	time as is provided in the agreement, but not to exceed 15
986	years, calculated in accordance with rule 60S-1.007(5)(f),
987	Florida Administrative Code.
988	5. The retirement account of each member for whom past
989	service is being provided by his or her employer shall be
990	credited with all past service the employer agrees to purchase
991	as soon as the agreement between the employer and the division
992	departmentis executed. Pursuant thereto:
993	a. Each such member's account shall also be posted with
994	the total contribution his or her employer agrees to make in the
995	member's behalf for past service earned prior to October 1,
996	1975, excluding those contributions representing the employer's
997	matching share and the compound interest calculation on the
998	total contribution. However, a portion of any contributions paid
999	by an employer for past service credit earned on and after
1000	October 1, 1975, may not be posted to a member's account.
1001	b. A refund of contributions payable after an employer has
1002	made a written agreement to purchase past service for employees
1003	of the covered group shall include contributions for past
1004	service which are posted to a member's account. However,
1005	contributions for past service earned on and after October 1,
1006	1975, are not refundable.
1007	(2) Prior service, as defined in s. 121.021(19), may be
1008	claimed as creditable service under the Florida Retirement
1009	System after a member has been reemployed for 1 complete year of
1010	creditable service within a period of 12 consecutive months,
1011	except as provided in paragraph (c). Service performed as a
1012	participant of the optional retirement program for the State
1013	University System under s. 121.35 or the Senior Management
1014	Service Optional Annuity Program under s. 121.055 may be used to
1015	satisfy the reemployment requirement of 1 complete year of
1016	creditable service. The member shall not be permitted to make
1017	any contributions for prior service until after completion of
1018	the 1 year of creditable service. If a member does not wish to
1019	claim credit for all of his or her prior service, the service
1020	the member claims must be the most recent period of service. The
1021	required contributions for claiming the various types of prior
1022	service are:
1023	(e) For service performed under the Florida Retirement
1024	System after December 1, 1970, that was never reported to the
1025	division or the departmentdue to error, retirement credit may
1026	be claimed by a member of the Florida Retirement System. The
1027	divisiondepartmentshall adopt rules establishing criteria for
1028	claiming such credit and detailing the documentation required to
1029	substantiate the error.
1030	Section 23. Subsection (1) of section 121.085, Florida
1031	Statutes, is amended to read:
1032	121.085 Creditable service.--The following provisions
1033	shall apply to creditable service as defined in s. 121.021(17):
1034	(1) The divisiondepartmentshall adopt rules establishing
1035	procedures for the submission of evidence or information
1036	necessary to establish a member's claim of creditable service.
1037	Section 24. Section 121.091, Florida Statutes, is amended
1038	to read:
1039	121.091 Benefits payable under the system.--Benefits may
1040	not be paid under this section unless the member has terminated
1041	employment as provided in s. 121.021(39)(a) or begun
1042	participation in the Deferred Retirement Option Program as
1043	provided in subsection (13), and a proper application has been
1044	filed in the manner prescribed by the divisiondepartment. The
1045	divisiondepartmentmay cancel an application for retirement
1046	benefits when the member or beneficiary fails to timely provide
1047	the information and documents required by this chapter and the
1048	division'sdepartment's rules. The divisiondepartmentshall
1049	adopt rules establishing procedures for application for
1050	retirement benefits and for the cancellation of such application
1051	when the required information or documents are not received.
1052	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
1053	normal retirement date, the member, upon application to the
1054	administrator, shall receive a monthly benefit which shall begin
1055	to accrue on the first day of the month of retirement and be
1056	payable on the last day of that month and each month thereafter
1057	during his or her lifetime. The normal retirement benefit,
1058	including any past or additional retirement credit, may not
1059	exceed 100 percent of the average final compensation. The amount
1060	of monthly benefit shall be calculated as the product of A and
1061	B, subject to the adjustment of C, if applicable, as set forth
1062	below:
1063	(a)1. For creditable years of Regular Class service, A is
1064	1.60 percent of the member's average final compensation, up to
1065	the member's normal retirement date. Upon completion of the
1066	first year after the normal retirement date, A is 1.63 percent
1067	of the member's average final compensation. Following the second
1068	year after the normal retirement date, A is 1.65 percent of the
1069	member's average final compensation. Following the third year
1070	after the normal retirement date, and for subsequent years, A is
1071	1.68 percent of the member's average final compensation.
1072	2. For creditable years of special risk service, A is:
1073	a. Two percent of the member's average final compensation
1074	for all creditable years prior to October 1, 1974;
1075	b. Three percent of the member's average final
1076	compensation for all creditable years after September 30, 1974,
1077	and before October 1, 1978;
1078	c. Two percent of the member's average final compensation
1079	for all creditable years after September 30, 1978, and before
1080	January 1, 1989;
1081	d. Two and two-tenths percent of the member's final
1082	monthly compensation for all creditable years after December 31,
1083	1988, and before January 1, 1990;
1084	e. Two and four-tenths percent of the member's average
1085	final compensation for all creditable years after December 31,
1086	1989, and before January 1, 1991;
1087	f. Two and six-tenths percent of the member's average
1088	final compensation for all creditable years after December 31,
1089	1990, and before January 1, 1992;
1090	g. Two and eight-tenths percent of the member's average
1091	final compensation for all creditable years after December 31,
1092	1991, and before January 1, 1993;
1093	h. Three percent of the member's average final
1094	compensation for all creditable years after December 31, 1992;
1095	and
1096	i. Three percent of the member's average final
1097	compensation for all creditable years of service after September
1098	30, 1978, and before January 1, 1993, for any special risk
1099	member who retires after July 1, 2000, or any member of the
1100	Special Risk Administrative Support Class entitled to retain the
1101	special risk normal retirement date who was a member of the
1102	Special Risk Class during the time period and who retires after
1103	July 1, 2000.
1104	3. For creditable years of Senior Management Service Class
1105	service after January 31, 1987, A is 2 percent;
1106	4. For creditable years of Elected Officers' Class service
1107	as a Supreme Court Justice, district court of appeal judge,
1108	circuit judge, or county court judge, A is 31/3 percent of the
1109	member's average final compensation, and for all other
1110	creditable service in such class, A is 3 percent of average
1111	final compensation;
1112	(b) B is the number of the member's years and any
1113	fractional part of a year of creditable service earned
1114	subsequent to November 30, 1970; and
1115	(c) C is the normal retirement benefit credit brought
1116	forward as of November 30, 1970, by a former member of an
1117	existing system. Such normal retirement benefit credit shall be
1118	determined as the product of X and Y when X is the percentage of
1119	average final compensation which the member would have been
1120	eligible to receive if the member had attained his or her normal
1121	retirement date as of November 30, 1970, all in accordance with
1122	the existing system under which the member is covered on
1123	November 30, 1970, and Y is average final compensation as
1124	defined in s. 121.021(25). However, any member of an existing
1125	retirement system who is eligible to retire and who does retire,
1126	become disabled, or die prior to April 15, 1971, may have his or
1127	her retirement benefits calculated on the basis of the best 5 of
1128	the last 10 years of service.
1129	(d) A member's average final compensation shall be
1130	determined by formula to obtain the coverage for the 5 highest
1131	fiscal years' salaries, calculated as provided by rule.
1132	(2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
1133	a member accumulates retirement benefits to commence at
1134	different normal retirement ages by virtue of having performed
1135	duties for an employer which would entitle him or her to
1136	benefits as both a member of the Special Risk Class and a member
1137	of either the Regular Class, Senior Management Service Class, or
1138	Elected Officers' Class, the amount of benefits payable shall be
1139	computed separately with respect to each such age and the sum of
1140	such computed amounts shall be paid as provided in this section.
1141	(3) EARLY RETIREMENT BENEFIT.--Upon retirement on his or
1142	her early retirement date, the member shall receive an immediate
1143	monthly benefit that shall begin to accrue on the first day of
1144	the month of the retirement date and be payable on the last day
1145	of that month and each month thereafter during his or her
1146	lifetime. Such benefit shall be calculated as follows:
1147	(a) The amount of each monthly payment shall be computed
1148	in the same manner as for a normal retirement benefit, in
1149	accordance with subsection (1), but shall be based on the
1150	member's average monthly compensation and creditable service as
1151	of the member's early retirement date. The benefit so computed
1152	shall be reduced by five-twelfths of 1 percent for each complete
1153	month by which the early retirement date precedes the normal
1154	retirement date of age 62 for a member of the Regular Class,
1155	Senior Management Service Class, or the Elected Officers' Class,
1156	and age 55 for a member of the Special Risk Class, or age 52 if
1157	a Special Risk member has completed 25 years of creditable
1158	service in accordance with s. 121.021(29)(b)3.
1159	(b) If the employment of a member is terminated by reason
1160	of death subsequent to the completion of 20 years of creditable
1161	service, the monthly benefit payable to the member's beneficiary
1162	shall be calculated in accordance with subsection (1), but shall
1163	be based on average monthly compensation and creditable service
1164	as of the date of death. The benefit so computed shall be
1165	reduced by five-twelfths of 1 percent for each complete month by
1166	which death precedes the normal retirement date specified above
1167	or the date on which the member would have attained 30 years of
1168	creditable service had he or she survived and continued his or
1169	her employment, whichever provides a higher benefit.
1170	(4) DISABILITY RETIREMENT BENEFIT.--
1171	(a) Disability retirement; entitlement and effective
1172	date.--
1173	1.a. A member who becomes totally and permanently
1174	disabled, as defined in paragraph (b), after completing 5 years
1175	of creditable service, or a member who becomes totally and
1176	permanently disabled in the line of duty regardless of service,
1177	shall be entitled to a monthly disability benefit; except that
1178	any member with less than 5 years of creditable service on July
1179	1, 1980, or any person who becomes a member of the Florida
1180	Retirement System on or after such date must have completed 10
1181	years of creditable service prior to becoming totally and
1182	permanently disabled in order to receive disability retirement
1183	benefits for any disability which occurs other than in the line
1184	of duty. However, if a member employed on July 1, 1980, with
1185	less than 5 years of creditable service as of that date, becomes
1186	totally and permanently disabled after completing 5 years of
1187	creditable service and is found not to have attained fully
1188	insured status for benefits under the federal Social Security
1189	Act, such member shall be entitled to a monthly disability
1190	benefit.
1191	b. Effective July 1, 2001, a member of the defined benefit
1192	retirement program who becomes totally and permanently disabled,
1193	as defined in paragraph (b), after completing 8 years of
1194	creditable service, or a member who becomes totally and
1195	permanently disabled in the line of duty regardless of service,
1196	shall be entitled to a monthly disability benefit.
1197	2. If the division has received from the employer the
1198	required documentation of the member's termination of
1199	employment, the effective retirement date for a member who
1200	applies and is approved for disability retirement shall be
1201	established by rule of the division.
1202	3. For a member who is receiving Workers' Compensation
1203	payments, the effective disability retirement date may not
1204	precede the date the member reaches Maximum Medical Improvement
1205	(MMI), unless the member terminates employment prior to reaching
1206	MMI.
1207	(b) Total and permanent disability.--A member shall be
1208	considered totally and permanently disabled if, in the opinion
1209	of the administrator, he or she is prevented, by reason of a
1210	medically determinable physical or mental impairment, from
1211	rendering useful and efficient service as an officer or
1212	employee.
1213	(c) Proof of disability.--The administrator, before
1214	approving payment of any disability retirement benefit, shall
1215	require proof that the member is totally and permanently
1216	disabled as provided herein:
1217	1. Such proof shall include the certification of the
1218	member's total and permanent disability by two licensed
1219	physicians of the state and such other evidence of disability as
1220	the administrator may require, including reports from vocational
1221	rehabilitation, evaluation, or testing specialists who have
1222	evaluated the applicant for employment.
1223	2. It must be documented that:
1224	a. The member's medical condition occurred or became
1225	symptomatic during the time the member was employed in an
1226	employee/employer relationship with his or her employer;
1227	b. The member was totally and permanently disabled at the
1228	time he or she terminated covered employment; and
1229	c. The member has not been employed with any other
1230	employer after such termination.
1231	3. If the application is for in-line-of-duty disability,
1232	in addition to the requirements of subparagraph 2., it must be
1233	documented by competent medical evidence that the disability was
1234	caused by a job-related illness or accident which occurred while
1235	the member was in an employee/employer relationship with his or
1236	her employer.
1237	4. The unavailability of an employment position that the
1238	member is physically and mentally capable of performing will not
1239	be considered as proof of total and permanent disability.
1240	(d) Election on appeal.--A member whose application for
1241	regular disability retirement has been denied and who has filed
1242	an appeal to the State Retirement Commission may, if eligible,
1243	elect to receive normal or early service retirement benefits
1244	while he or she is awaiting the decision on the appeal. However:
1245	1. If the member elects to receive service retirement
1246	benefits and disability benefits are later approved as a result
1247	of the appeal, the payment option chosen by the member may not
1248	be changed.
1249	2. If the member elects to receive early service
1250	retirement and the appeal is later denied, the member may not
1251	change his or her election of early retirement.
1252
1253	Before such regular or early retirement benefits may be paid by
1254	the division, the member must provide to the division a written
1255	statement indicating that the member understands that such
1256	changes are not permitted after he or she begins receiving the
1257	benefits.
1258	(e) Disability retirement benefit.--Upon the retirement of
1259	a member on his or her disability retirement date, the member
1260	shall receive a monthly benefit that shall begin to accrue on
1261	the first day of the month of disability retirement and shall be
1262	payable on the last day of that month and each month thereafter
1263	during his or her lifetime and continued disability.
1264	(f) Computation of disability retirement benefit.--The
1265	amount of each monthly payment shall be computed in the same
1266	manner as for a normal retirement benefit, in accordance with
1267	subsection (1), but shall be based on disability option
1268	actuarial equivalency tables and the average monthly
1269	compensation and creditable service of the member as of the
1270	disability retirement date, subject to the following conditions:
1271	1. If the member's disability occurred in the line of
1272	duty, the monthly Option 1 benefit shall not be less than:
1273	a. Forty-two percent of average monthly compensation as of
1274	the disability retirement date; or
1275	b. Sixty-five percent of the average monthly compensation
1276	as of the disability retirement date for a member of the special
1277	risk class who retires on or after July 1, 2000; or
1278	2. If the member's disability occurred other than in the
1279	line of duty, the monthly Option 1 benefit shall not be less
1280	than 25 percent of average monthly compensation as of the
1281	disability retirement date.
1282	(g) Reapplication.--A member, whose initial application
1283	for disability retirement has been denied, may reapply for
1284	disability benefits. However, such member's reapplication will
1285	be considered only if the member presents new medical evidence
1286	of a medical condition that existed prior to the member's
1287	termination of employment. The division may prescribe by rule
1288	procedures for reapplication and for review and approval or
1289	disapproval of reapplication.
1290	(h) Recovery from disability.--The administrator may
1291	require periodic reexaminations at the expense of the retirement
1292	fund. The division may adopt rules establishing procedures for
1293	conducting and review of such reexaminations.
1294	1. If the administrator finds that a member who is
1295	receiving disability benefits is, at any time prior to his or
1296	her normal retirement date, no longer disabled, the
1297	administrator shall direct that the benefits be discontinued.
1298	The decision of the administrator on this question shall be
1299	final and binding. If such member:
1300	a. Does not reenter the employ of an employer and was not
1301	vested as of the disability retirement date, he or she shall be
1302	entitled to the excess, if any, of his or her accumulated
1303	contributions over the total disability benefits received up to
1304	the date of recovery.
1305	b. Does not reenter the employ of an employer, but was
1306	vested as of the disability retirement date, he or she may elect
1307	to receive:
1308	(I) The excess, if any, of his or her accumulated
1309	contributions over the total disability benefits received up to
1310	the date of recovery; or
1311	(II) A deferred benefit commencing on the last day of the
1312	month of the normal retirement date which shall be payable on
1313	the last day of the month thereafter during his or her lifetime.
1314	The amount of such monthly benefit shall be computed in the same
1315	manner as for a normal retirement benefit, in accordance with
1316	subsection (1), but shall be based on average monthly
1317	compensation and creditable service as of the member's
1318	disability retirement date.
1319	c. Reenters employment of an employer within 6 months
1320	after recovery, the member's service will be deemed to have been
1321	continuous, but the period beginning with the first month for
1322	which he or she received a disability benefit payment and ending
1323	with the date he or she reentered employment will not be
1324	considered as creditable service for the purpose of computing
1325	benefits except as provided in sub-subparagraph d. As used in
1326	this section, the term "accumulated contributions" for such
1327	member means the excess of the member's accumulated
1328	contributions as of the disability retirement date over the
1329	total disability benefits received under paragraph (e).
1330	d. Terminates his or her disability benefit, reenters
1331	covered employment, and is continuously employed for a minimum
1332	of 1 year of creditable service, he or she may claim as
1333	creditable service the months during which he or she was
1334	receiving a disability benefit, upon payment of the required
1335	contributions. Contributions shall equal the total required
1336	employee and employer contribution rate applicable during the
1337	period the retiree received retirement benefits, multiplied
1338	times his or her rate of monthly compensation prior to the
1339	commencement of disability retirement for each month of the
1340	period claimed, plus 4 percent interest until July 1, 1975, and
1341	6.5 percent interest thereafter, compounded annually each June
1342	30 to the date of payment. If the member does not claim credit
1343	for all of the months he or she received disability benefits,
1344	the months claimed must be the most recent months of retirement.
1345	Such credit for periods of disability, when purchased under the
1346	Florida Retirement System, shall apply toward vesting
1347	requirements for eligibility to purchase additional credit for
1348	other service.
1349	2. Both the member receiving disability benefits who
1350	reenters employment and the employer employing such disability
1351	retiree shall notify the division immediately upon reemployment,
1352	and the division shall terminate such member's disability
1353	benefits, effective the first day of the month following the
1354	month in which notification of recovery is received. If the
1355	member is reemployed with a Florida Retirement System employer
1356	at the time of benefit termination, and he or she has received
1357	disability retirement benefit and salary payments concurrently
1358	prior to notifying the division, he or she may elect within 30
1359	days to:
1360	a. Retain the retirement benefits received prior to
1361	termination of disability benefits and begin receiving
1362	retirement service credit effective upon the date of termination
1363	of benefits; or
1364	b. Repay, within 12 months after his or her decision to
1365	receive service credit, the retirement benefits received for
1366	each month of reemployment prior to termination of disability
1367	benefits and begin receiving retirement service credit effective
1368	upon the date of reemployment. Any such unpaid benefits shall
1369	have compound interest of 6.5 percent added June 30.
1370
1371	A member may not receive both retirement service credit for
1372	employment and retirement benefits for the same month.
1373	3. If, after recovery of disability and reentry into
1374	covered employment, the member again becomes disabled and is
1375	again approved for disability retirement, the Option 1 monthly
1376	retirement benefit shall not be less than the Option 1 monthly
1377	benefit calculated at the time of the previous disability, plus
1378	any cost of living increases up to the time the disability
1379	benefit was terminated upon his or her reentry into covered
1380	employment.
1381	(i) Nonadmissible causes of disability.--A member shall
1382	not be entitled to receive any disability retirement benefit if
1383	the disability is a result of any of the following:
1384	1. Injury or disease sustained by the member while
1385	willfully participating in a riot, civil insurrection, or other
1386	act of violence or while committing a felony;
1387	2. Injury or disease sustained by the member after his or
1388	her employment has terminated; or
1389	3. Intentional, self-inflicted injury.
1390	(j) Disability retirement of justice or judge by order of
1391	Supreme Court.--
1392	1.If a member is a justice of the Supreme Court, judge of
1393	a district court of appeal, circuit judge, or judge of a county
1394	court who has served for 6 years or more as an elected
1395	constitutional judicial officer, including service as a judicial
1396	officer in any court abolished pursuant to Art. V of the State
1397	Constitution, and who is retired for disability by order of the
1398	Supreme Court upon recommendation of the Judicial Qualifications
1399	Commission pursuant to the provisions of Art. V of the State
1400	Constitution, the member's Option 1 monthly benefit as provided
1401	in subparagraph (6)(a)1. shall not be less than two-thirds of
1402	his or her monthly compensation as of the member's disability
1403	retirement date. Such a member may alternatively elect to
1404	receive a disability retirement benefit under any other option
1405	as provided in paragraph (6)(a).
1406	2. Should any justice or judge who is a member of the
1407	Florida Retirement System be retired for disability by order of
1408	the Supreme Court upon recommendation of the Judicial
1409	Qualifications Commission pursuant to the provisions of Art. V
1410	of the State Constitution, then all contributions to his or her
1411	account and all contributions made on his or her behalf by the
1412	employer shall be transferred to and deposited in the General
1413	Revenue Fund of the state, and there is hereby appropriated
1414	annually out of the General Revenue Fund, to be paid into the
1415	Florida Retirement System Fund, an amount necessary to pay the
1416	benefits of all justices and judges retired from the Florida
1417	Retirement System pursuant to Art. V of the State Constitution.
1418	(5) TERMINATION BENEFITS.--A member whose employment is
1419	terminated prior to retirement retains membership rights to
1420	previously earned member-noncontributory service credit, and to
1421	member-contributory service credit, if the member leaves the
1422	member contributions on deposit in his or her retirement
1423	account. If a terminated member receives a refund of member
1424	contributions, such member may reinstate membership rights to
1425	the previously earned service credit represented by the refund
1426	by completing 1 year of creditable service and repaying the
1427	refunded member contributions, plus interest.
1428	(a) A member whose employment is terminated for any reason
1429	other than death or retirement prior to becoming vested is
1430	entitled to the return of his or her accumulated contributions
1431	as of the date of termination.
1432	(b) A member whose employment is terminated for any reason
1433	other than death or retirement after becoming vested may elect
1434	to receive a deferred monthly benefit which shall begin to
1435	accrue on the first day of the month of normal or early
1436	retirement and shall be payable on the last day of that month
1437	and each month thereafter during his or her lifetime. The amount
1438	of monthly benefit shall be computed in the same manner as for a
1439	normal retirement benefit in accordance with subsection (1) or
1440	early retirement benefit in accordance with s. 121.021(30), but
1441	based on average monthly compensation and creditable service as
1442	of the date of termination.
1443	(c) In lieu of the deferred monthly benefit provided in
1444	paragraph (b), the terminated member may elect to receive a
1445	lump-sum amount equal to his or her accumulated contributions as
1446	of the date of termination.
1447	(d) If any retired member dies without having received in
1448	benefit payments an amount equal to his or her accumulated
1449	contributions, there shall be payable to his or her designated
1450	beneficiary an amount equal to the excess, if any, of the
1451	member's accumulated contributions over the total monthly
1452	payments made to the member prior to the date of death.
1453	(e) A member shall be deemed a terminated member when
1454	termination of employment has occurred as provided in s.
1455	121.021(39).
1456	(f) Any member who has been found guilty by a verdict of a
1457	jury, or by the court trying the case without a jury, of
1458	committing, aiding, or abetting any embezzlement or theft from
1459	his or her employer, bribery in connection with the employment,
1460	or other felony specified in chapter 838, except ss. 838.15 and
1461	838.16, committed prior to retirement, or who has entered a plea
1462	of guilty or of nolo contendere to such crime, or any member
1463	whose employment is terminated by reason of the member's
1464	admitted commitment, aiding, or abetting of an embezzlement or
1465	theft from his or her employer, bribery, or other felony
1466	specified in chapter 838, except ss. 838.15 and 838.16, shall
1467	forfeit all rights and benefits under this chapter, except the
1468	return of his or her accumulated contributions as of the date of
1469	termination.
1470	(g) Any elected official who is convicted by the Senate of
1471	an impeachable offense shall forfeit all rights and benefits
1472	under this chapter, except the return of his or her accumulated
1473	contributions as of the date of the conviction.
1474	(h) Any member who, prior to retirement, is adjudged by a
1475	court of competent jurisdiction to have violated any state law
1476	against strikes by public employees, or who has been found
1477	guilty by such court of violating any state law prohibiting
1478	strikes by public employees, shall forfeit all rights and
1479	benefits under this chapter, except the return of his or her
1480	accumulated contributions as of the date of the conviction.
1481	(i) Any beneficiary who by a verdict of a jury or by the
1482	court trying the case without a jury is found guilty, or who has
1483	entered a plea of guilty or nolo contendere, of unlawfully and
1484	intentionally killing or procuring the death of the member
1485	forfeits all rights to the deceased member's benefits under this
1486	chapter, and the benefits will be paid as if such beneficiary
1487	had predeceased the decedent.
1488	(j) Benefits shall not be paid by the division pending
1489	final resolution of such charges against a member or beneficiary
1490	if the resolution of such charges could require the forfeiture
1491	of benefits as provided in paragraph (f), paragraph (g),
1492	paragraph (h), or paragraph (i).
1493	(6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY
1494	RETIREMENT BENEFITS.--
1495	(a) Prior to the receipt of the first monthly retirement
1496	payment, a member shall elect to receive the retirement benefits
1497	to which he or she is entitled under subsection (1), subsection
1498	(2), subsection (3), or subsection (4) in accordance with one of
1499	the following options:
1500	1. The maximum retirement benefit payable to the member
1501	during his or her lifetime.
1502	2. A decreased retirement benefit payable to the member
1503	during his or her lifetime and, in the event of his or her death
1504	within a period of 10 years after retirement, the same monthly
1505	amount payable for the balance of such 10-year period to his or
1506	her beneficiary or, in case the beneficiary is deceased, in
1507	accordance with subsection (8) as though no beneficiary had been
1508	named.
1509	3. A decreased retirement benefit payable during the joint
1510	lifetime of both the member and his or her joint annuitant and
1511	which, after the death of either, shall continue during the
1512	lifetime of the survivor in the same amount, subject to the
1513	provisions of subsection (12).
1514	4. A decreased retirement benefit payable during the joint
1515	lifetime of the member and his or her joint annuitant and which,
1516	after the death of either, shall continue during the lifetime of
1517	the survivor in an amount equal to 662/3 percent of the amount
1518	that was payable during the joint lifetime of the member and his
1519	or her joint annuitant, subject to the provisions of subsection
1520	(12).
1521
1522	The spouse of any member who elects to receive the benefit
1523	provided under subparagraph 1. or subparagraph 2. shall be
1524	notified of and shall acknowledge any such election. The
1525	division shall establish by rule a method for selecting the
1526	appropriate actuarial factor for optional forms of benefits
1527	selected under subparagraphs 3. and 4., based on the age of the
1528	member and the joint annuitant.
1529	(b) The benefit payable under any option stated above
1530	shall be the actuarial equivalent, based on tables adopted by
1531	the administrator for this purpose, of the amount to which the
1532	member was otherwise entitled.
1533	(c) A member who elects the option in subparagraph (a)2.
1534	shall, in accordance with subsection (8), designate one or more
1535	persons to receive the benefits payable in the event of his or
1536	her death. Such persons shall be the beneficiaries of the
1537	member. The member may also designate one or more contingent
1538	beneficiaries to receive any benefits remaining upon the death
1539	of the primary beneficiary.
1540	(d) A member who elects the option in subparagraph (a)3.
1541	or subparagraph (a)4. shall, on a form provided for that
1542	purpose, designate a joint annuitant to receive the benefits
1543	which continue to be payable upon the death of the member. After
1544	benefits have commenced under the option in subparagraph (a)3.
1545	or subparagraph (a)4., the following shall apply:
1546	1. A retired member may change his or her designation of a
1547	joint annuitant only twice. If such a retired member desires to
1548	change his or her designation of a joint annuitant, he or she
1549	shall file with the division a notarized "change of joint
1550	annuitant" form and shall notify the former joint annuitant in
1551	writing of such change. Effective the first day of the next
1552	month following receipt by the division of a completed change of
1553	joint annuitant form, the division shall adjust the member's
1554	monthly benefit by the application of actuarial tables and
1555	calculations developed to ensure that the benefit paid is the
1556	actuarial equivalent of the present value of the member's
1557	current benefit. The consent of a retired member's first
1558	designated joint annuitant to any such change shall not be
1559	required. However, if either the member or the joint annuitant
1560	dies before the effective date of the request for change of
1561	joint annuitant, the requested change shall be void, and
1562	survivor benefits, if any, shall be paid as if no request had
1563	been made.
1564	2. In the event of the dissolution of marriage of a
1565	retired member and a joint annuitant, such member may make an
1566	election to nullify the joint annuitant designation of the
1567	former spouse, unless there is an existing qualified domestic
1568	relations order preventing such action. The member shall file
1569	with the division a written, notarized nullification which shall
1570	be effective on the first day of the next month following
1571	receipt by the division. Benefits shall be paid as if the former
1572	spouse predeceased the member. A member who makes such an
1573	election may not reverse the nullification but may designate a
1574	new joint annuitant in accordance with subparagraph 1.
1575	(e) The election of an option shall be null and void if
1576	the member dies before the effective date of retirement.
1577	(f) A member who elects to receive benefits under the
1578	option in subparagraph (a)3. may designate one or more qualified
1579	persons, either a spouse or other dependent, as his or her joint
1580	annuitant to receive the benefits after the member's death in
1581	whatever proportion he or she so assigns to each person named as
1582	joint annuitant. The division shall adopt appropriate actuarial
1583	tables and calculations necessary to ensure that the benefit
1584	paid is the actuarial equivalent of the benefit to which the
1585	member is otherwise entitled under the option in subparagraph
1586	(a)1.
1587	(g) Upon the death of a retired member or beneficiary
1588	receiving monthly benefits under this chapter, the monthly
1589	benefits shall be paid through the last day of the month of
1590	death and shall terminate, or be adjusted, if applicable, as of
1591	that date in accordance with the optional form of benefit
1592	selected at the time of retirement.
1593	(h) The option selected or determined for payment of
1594	benefits as provided in this section shall be final and
1595	irrevocable at the time a benefit payment is cashed or deposited
1596	or credited to the Deferred Retirement Option Program as
1597	provided in subsection (13).
1598	(7) DEATH BENEFITS.--
1599	(a) If the employment of a member is terminated by reason
1600	of his or her death prior to being vested, except as provided in
1601	paragraph (f), there shall be payable to his or her designated
1602	beneficiary the member's accumulated contributions.
1603	(b) If the employment of an active member who may or may
1604	not have applied for retirement is terminated by reason of his
1605	or her death subsequent to becoming vested and prior to his or
1606	her effective date of retirement, if established, it shall be
1607	assumed that the member retired as of the date of death in
1608	accordance with subsection (1) if eligible for normal retirement
1609	benefits, subsection (2) if eligible for benefits payable for
1610	dual normal retirement, or subsection (3) if eligible for early
1611	retirement benefits. Benefits payable to the designated
1612	beneficiary shall be as follows:
1613	1. For a beneficiary who qualifies as a joint annuitant,
1614	the optional form of payment provided in accordance with
1615	subparagraph (6)(a)3. shall be paid for the joint annuitant's
1616	lifetime.
1617	2. For a beneficiary who does not qualify as a joint
1618	annuitant, no continuing monthly benefit shall be paid and the
1619	beneficiary shall be entitled only to the return of the member's
1620	personal contributions. If there is no monetary interest in the
1621	member's retirement account for which such beneficiary is
1622	eligible, the beneficiary shall be the next named beneficiary
1623	or, if no other beneficiary is named, the beneficiary shall be
1624	the next eligible beneficiary according to subsection (8).
1625	(c) If a retiring member dies on or after the effective
1626	date of retirement, but prior to a benefit payment being cashed
1627	or deposited, or credited to the Deferred Retirement Option
1628	Program, benefits shall be paid as follows:
1629	1. For a designated beneficiary who qualifies as a joint
1630	annuitant, benefits shall be paid in the optional form of
1631	payment provided in subparagraph (6)(a)3. for the joint
1632	annuitant's lifetime or, if the member chose the optional form
1633	of payment provided in subparagraph (6)(a)2., the joint
1634	annuitant may select the form provided in either subparagraph
1635	(6)(a)2. or subparagraph (6)(a)3.
1636	2. For a designated beneficiary who does not qualify as a
1637	joint annuitant, any benefits payable shall be paid as provided
1638	in the option selected by the member; or if the member has not
1639	selected an option, benefits shall be paid in the optional form
1640	of payment provided in subparagraph (6)(a)1.
1641	(d) Notwithstanding any other provision in this chapter to
1642	the contrary, with the exception of the Deferred Retirement
1643	Option Program, as provided in subsection (13):
1644	1. The surviving spouse of any member killed in the line
1645	of duty may receive a monthly pension equal to one-half of the
1646	monthly salary being received by the member at the time of death
1647	for the rest of the surviving spouse's lifetime or, if the
1648	member was vested, such surviving spouse may elect to receive a
1649	benefit as provided in paragraph (b). Benefits provided by this
1650	paragraph shall supersede any other distribution that may have
1651	been provided by the member's designation of beneficiary.
1652	2. If the surviving spouse of a member killed in the line
1653	of duty dies, the monthly payments which would have been payable
1654	to such surviving spouse had such surviving spouse lived shall
1655	be paid for the use and benefit of such member's child or
1656	children under 18 years of age and unmarried until the 18th
1657	birthday of the member's youngest child.
1658	3. If a member killed in the line of duty leaves no
1659	surviving spouse but is survived by a child or children under 18
1660	years of age, the benefits provided by subparagraph 1., normally
1661	payable to a surviving spouse, shall be paid for the use and
1662	benefit of such member's child or children under 18 years of age
1663	and unmarried until the 18th birthday of the member's youngest
1664	child.
1665	4. The surviving spouse of a member whose benefit
1666	terminated because of remarriage shall have the benefit
1667	reinstated beginning July 1, 1993, at an amount that would have
1668	been payable had the benefit not been terminated.
1669	(e) The surviving spouse or other dependent of any member,
1670	except a member who participated in the Deferred Retirement
1671	Option Program, whose employment is terminated by death shall,
1672	upon application to the administrator, be permitted to pay the
1673	required contributions for any service performed by the member
1674	which could have been claimed by the member at the time of his
1675	or her death. Such service shall be added to the creditable
1676	service of the member and shall be used in the calculation of
1677	any benefits which may be payable to the surviving spouse or
1678	other surviving dependent.
1679	(f) Notwithstanding any other provisions in this chapter
1680	to the contrary and upon application to the administrator, an
1681	eligible joint annuitant, of a member whose employment is
1682	terminated by death within 1 year of such member satisfying the
1683	service requirements for vesting and retirement eligibility,
1684	shall be permitted to purchase only the additional service
1685	credit necessary to vest and qualify for retirement benefits,
1686	not to exceed a total of 1 year of credit, by one or a
1687	combination of the following methods:
1688	1. Such eligible joint annuitant may use the deceased
1689	member's accumulated hours of annual, sick, and compensatory
1690	leave to purchase additional creditable service, on an hour by
1691	hour basis, provided that such deceased member's accumulated
1692	leave is sufficient to cover the additional months required. For
1693	each month of service credit needed prior to the final month,
1694	credit for the total number of work hours in that month must be
1695	purchased, using an equal number of the deceased member's
1696	accumulated leave hours. Service credit required for the final
1697	month in which the deceased member would have become vested
1698	shall be awarded upon the purchase of 1 hour of credit. Such
1699	eligible joint annuitant shall pay the contribution rate in
1700	effect for the period of time being claimed for the deceased
1701	member's class of membership, multiplied by such member's
1702	monthly salary at the time of death, plus 6.5 percent interest
1703	compounded annually. The accumulated leave payment used in the
1704	average final compensation shall not include that portion of the
1705	payment that represents any leave hours used in the purchase of
1706	such creditable service.
1707	2. Such eligible joint annuitant may purchase additional
1708	months of creditable service for any periods of out-of-state
1709	service as provided in s. 121.1115, and in-state service as
1710	provided in s. 121.1122, that the deceased member would have
1711	been eligible to purchase prior to his or her death.
1712
1713	Service purchased under this paragraph shall be added to the
1714	creditable service of the member and used to vest for retirement
1715	eligibility, and shall be used in the calculation of any
1716	benefits which may be payable to the eligible joint annuitant.
1717	Any benefits paid in accordance with this paragraph shall only
1718	be made prospectively.
1719	(g) Notwithstanding any other provisions in this chapter
1720	to the contrary, if any member who is vested dies and the
1721	surviving spouse receives a refund of the accumulated
1722	contributions made to the retirement trust fund, such spouse may
1723	pay to the Division of Retirement an amount equal to the sum of
1724	the amount of the deceased member's accumulated contributions
1725	previously refunded plus interest at 4 percent compounded
1726	annually each June 30 from the date of refund until July 1,
1727	1975, and 6.5 percent interest compounded annually thereafter,
1728	until full payment is made, and receive the monthly retirement
1729	benefit as provided in paragraph (b).
1730	(h) The designated beneficiary who is the surviving spouse
1731	or other dependent of a member whose employment is terminated by
1732	death subsequent to becoming vested, but prior to actual
1733	retirement, may elect to receive a deferred monthly benefit as
1734	if the member had lived and had elected a deferred monthly
1735	benefit, as provided in paragraph (5)(b), calculated on the
1736	basis of the average final compensation and creditable service
1737	of the member at his or her death and the age the member would
1738	have attained on the commencement date of the deferred benefit
1739	elected by the beneficiary, paid in accordance with option 3 of
1740	paragraph (6)(a).
1741	(8) DESIGNATION OF BENEFICIARIES.--
1742	(a) Each member may, on a form provided for that purpose,
1743	signed and filed with the division, designate a choice of one or
1744	more persons, named sequentially or jointly, as his or her
1745	beneficiary who shall receive the benefits, if any, which may be
1746	payable in the event of the member's death pursuant to the
1747	provisions of this chapter. If no beneficiary is named in the
1748	manner provided above, or if no beneficiary designated by the
1749	member survives the member, the beneficiary shall be the spouse
1750	of the deceased, if living. If the member's spouse is not alive
1751	at his or her death, the beneficiary shall be the living
1752	children of the member. If no children survive, the beneficiary
1753	shall be the member's father or mother, if living; otherwise,
1754	the beneficiary shall be the member's estate. The beneficiary
1755	most recently designated by a member on a form or letter filed
1756	with the division shall be the beneficiary entitled to any
1757	benefits payable at the time of the member's death, except that
1758	benefits shall be paid as provided in paragraph (7)(d) when
1759	death occurs in the line of duty. Notwithstanding any other
1760	provisions in this subsection to the contrary, for a member who
1761	dies prior to his or her effective date of retirement on or
1762	after January 1, 1999, the spouse at the time of death shall be
1763	the member's beneficiary unless such member designates a
1764	different beneficiary as provided herein subsequent to the
1765	member's most recent marriage.
1766	(b) A designated beneficiary of a retirement account for
1767	whom there is a monetary interest may disclaim his or her
1768	monetary interest as provided in s. 689.21, and in accordance
1769	with division rules governing such disclaimers. Such disclaimer
1770	must be filed within 24 months after the event that created the
1771	interest, that is, the death of the member or annuitant.
1772	(c) Notwithstanding the member's designation of benefits
1773	to be paid through a trust to a beneficiary that is a natural
1774	person as provided in s. 121.021(46), and notwithstanding the
1775	provisions of the trust, benefits shall be paid directly to the
1776	beneficiary if such person is no longer a minor or incapacitated
1777	as defined in s. 744.102(10) and (11).
1778	(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1779	(a) Any person who is retired under this chapter, except
1780	under the disability retirement provisions of subsection (4),
1781	may be employed by an employer that does not participate in a
1782	state-administered retirement system and may receive
1783	compensation from that employment without limiting or
1784	restricting in any way the retirement benefits payable to that
1785	person.
1786	(b)1. Any person who is retired under this chapter, except
1787	under the disability retirement provisions of subsection (4),
1788	may be reemployed by any private or public employer after
1789	retirement and receive retirement benefits and compensation from
1790	his or her employer without any limitations, except that a
1791	person may not receive both a salary from reemployment with any
1792	agency participating in the Florida Retirement System and
1793	retirement benefits under this chapter for a period of 12 months
1794	immediately subsequent to the date of retirement. However, a
1795	DROP participant shall continue employment and receive a salary
1796	during the period of participation in the Deferred Retirement
1797	Option Program, as provided in subsection (13).
1798	2. Any person to whom the limitation in subparagraph 1.
1799	applies who violates such reemployment limitation and who is
1800	reemployed with any agency participating in the Florida
1801	Retirement System before completion of the 12-month limitation
1802	period shall give timely notice of this fact in writing to the
1803	employer and to the division and shall have his or her
1804	retirement benefits suspended for the balance of the 12-month
1805	limitation period. Any person employed in violation of this
1806	paragraph and any employing agency which knowingly employs or
1807	appoints such person without notifying the Division of
1808	Retirement to suspend retirement benefits shall be jointly and
1809	severally liable for reimbursement to the retirement trust fund
1810	of any benefits paid during the reemployment limitation period.
1811	To avoid liability, such employing agency shall have a written
1812	statement from the retiree that he or she is not retired from a
1813	state-administered retirement system. Any retirement benefits
1814	received while reemployed during this reemployment limitation
1815	period shall be repaid to the retirement trust fund, and
1816	retirement benefits shall remain suspended until such repayment
1817	has been made. Benefits suspended beyond the reemployment
1818	limitation shall apply toward repayment of benefits received in
1819	violation of the reemployment limitation.
1820	3. A district school board may reemploy a retired member
1821	as a substitute or hourly teacher, education paraprofessional,
1822	transportation assistant, bus driver, or food service worker on
1823	a noncontractual basis after he or she has been retired for 1
1824	calendar month, in accordance with s. 121.021(39). Any retired
1825	member who is reemployed within 1 calendar month after
1826	retirement shall void his or her application for retirement
1827	benefits. District school boards reemploying such teachers,
1828	education paraprofessionals, transportation assistants, bus
1829	drivers, or food service workers are subject to the retirement
1830	contribution required by subparagraph 7. Reemployment of a
1831	retired member as a substitute or hourly teacher, education
1832	paraprofessional, transportation assistant, bus driver, or food
1833	service worker is limited to 780 hours during the first 12
1834	months of his or her retirement. Any retired member reemployed
1835	for more than 780 hours during his or her first 12 months of
1836	retirement shall give timely notice in writing to the employer
1837	and to the division of the date he or she will exceed the
1838	limitation. The division shall suspend his or her retirement
1839	benefits for the remainder of the first 12 months of retirement.
1840	Any person employed in violation of this subparagraph and any
1841	employing agency which knowingly employs or appoints such person
1842	without notifying the Division of Retirement to suspend
1843	retirement benefits shall be jointly and severally liable for
1844	reimbursement to the retirement trust fund of any benefits paid
1845	during the reemployment limitation period. To avoid liability,
1846	such employing agency shall have a written statement from the
1847	retiree that he or she is not retired from a state-administered
1848	retirement system. Any retirement benefits received by a retired
1849	member while reemployed in excess of 780 hours during the first
1850	12 months of retirement shall be repaid to the Retirement System
1851	Trust Fund, and his or her retirement benefits shall remain
1852	suspended until repayment is made. Benefits suspended beyond the
1853	end of the retired member's first 12 months of retirement shall
1854	apply toward repayment of benefits received in violation of the
1855	780-hour reemployment limitation.
1856	4. A community college board of trustees may reemploy a
1857	retired member as an adjunct instructor, that is, an instructor
1858	who is noncontractual and part-time, or as a participant in a
1859	phased retirement program within the Florida Community College
1860	System, after he or she has been retired for 1 calendar month,
1861	in accordance with s. 121.021(39). Any retired member who is
1862	reemployed within 1 calendar month after retirement shall void
1863	his or her application for retirement benefits. Boards of
1864	trustees reemploying such instructors are subject to the
1865	retirement contribution required in subparagraph 7. A retired
1866	member may be reemployed as an adjunct instructor for no more
1867	than 780 hours during the first 12 months of retirement. Any
1868	retired member reemployed for more than 780 hours during the
1869	first 12 months of retirement shall give timely notice in
1870	writing to the employer and to the division of the date he or
1871	she will exceed the limitation. The division shall suspend his
1872	or her retirement benefits for the remainder of the first 12
1873	months of retirement. Any person employed in violation of this
1874	subparagraph and any employing agency which knowingly employs or
1875	appoints such person without notifying the Division of
1876	Retirement to suspend retirement benefits shall be jointly and
1877	severally liable for reimbursement to the retirement trust fund
1878	of any benefits paid during the reemployment limitation period.
1879	To avoid liability, such employing agency shall have a written
1880	statement from the retiree that he or she is not retired from a
1881	state-administered retirement system. Any retirement benefits
1882	received by a retired member while reemployed in excess of 780
1883	hours during the first 12 months of retirement shall be repaid
1884	to the Retirement System Trust Fund, and retirement benefits
1885	shall remain suspended until repayment is made. Benefits
1886	suspended beyond the end of the retired member's first 12 months
1887	of retirement shall apply toward repayment of benefits received
1888	in violation of the 780-hour reemployment limitation.
1889	5. The State University System may reemploy a retired
1890	member as an adjunct faculty member or as a participant in a
1891	phased retirement program within the State University System
1892	after the retired member has been retired for 1 calendar month,
1893	in accordance with s. 121.021(39). Any retired member who is
1894	reemployed within 1 calendar month after retirement shall void
1895	his or her application for retirement benefits. The State
1896	University System is subject to the retired contribution
1897	required in subparagraph 7., as appropriate. A retired member
1898	may be reemployed as an adjunct faculty member or a participant
1899	in a phased retirement program for no more than 780 hours during
1900	the first 12 months of his or her retirement. Any retired member
1901	reemployed for more than 780 hours during the first 12 months of
1902	retirement shall give timely notice in writing to the employer
1903	and to the division of the date he or she will exceed the
1904	limitation. The division shall suspend his or her retirement
1905	benefits for the remainder of the first 12 months of retirement.
1906	Any person employed in violation of this subparagraph and any
1907	employing agency which knowingly employs or appoints such person
1908	without notifying the Division of Retirement to suspend
1909	retirement benefits shall be jointly and severally liable for
1910	reimbursement to the retirement trust fund of any benefits paid
1911	during the reemployment limitation period. To avoid liability,
1912	such employing agency shall have a written statement from the
1913	retiree that he or she is not retired from a state-administered
1914	retirement system. Any retirement benefits received by a retired
1915	member while reemployed in excess of 780 hours during the first
1916	12 months of retirement shall be repaid to the Retirement System
1917	Trust Fund, and retirement benefits shall remain suspended until
1918	repayment is made. Benefits suspended beyond the end of the
1919	retired member's first 12 months of retirement shall apply
1920	toward repayment of benefits received in violation of the 780-
1921	hour reemployment limitation.
1922	6. The Board of Trustees of the Florida School for the
1923	Deaf and the Blind may reemploy a retired member as a substitute
1924	teacher, substitute residential instructor, or substitute nurse
1925	on a noncontractual basis after he or she has been retired for 1
1926	calendar month, in accordance with s. 121.021(39). Any retired
1927	member who is reemployed within 1 calendar month after
1928	retirement shall void his or her application for retirement
1929	benefits. The Board of Trustees of the Florida School for the
1930	Deaf and the Blind reemploying such teachers, residential
1931	instructors, or nurses is subject to the retirement contribution
1932	required by subparagraph 7. Reemployment of a retired member as
1933	a substitute teacher, substitute residential instructor, or
1934	substitute nurse is limited to 780 hours during the first 12
1935	months of his or her retirement. Any retired member reemployed
1936	for more than 780 hours during the first 12 months of retirement
1937	shall give timely notice in writing to the employer and to the
1938	division of the date he or she will exceed the limitation. The
1939	division shall suspend his or her retirement benefits for the
1940	remainder of the first 12 months of retirement. Any person
1941	employed in violation of this subparagraph and any employing
1942	agency which knowingly employs or appoints such person without
1943	notifying the Division of Retirement to suspend retirement
1944	benefits shall be jointly and severally liable for reimbursement
1945	to the retirement trust fund of any benefits paid during the
1946	reemployment limitation period. To avoid liability, such
1947	employing agency shall have a written statement from the retiree
1948	that he or she is not retired from a state-administered
1949	retirement system. Any retirement benefits received by a retired
1950	member while reemployed in excess of 780 hours during the first
1951	12 months of retirement shall be repaid to the Retirement System
1952	Trust Fund, and his or her retirement benefits shall remain
1953	suspended until payment is made. Benefits suspended beyond the
1954	end of the retired member's first 12 months of retirement shall
1955	apply toward repayment of benefits received in violation of the
1956	780-hour reemployment limitation.
1957	7. The employment by an employer of any retiree or DROP
1958	participant of any state-administered retirement system shall
1959	have no effect on the average final compensation or years of
1960	creditable service of the retiree or DROP participant. Prior to
1961	July 1, 1991, upon employment of any person, other than an
1962	elected officer as provided in s. 121.053, who has been retired
1963	under any state-administered retirement program, the employer
1964	shall pay retirement contributions in an amount equal to the
1965	unfunded actuarial liability portion of the employer
1966	contribution which would be required for regular members of the
1967	Florida Retirement System. Effective July 1, 1991, contributions
1968	shall be made as provided in s. 121.122 for retirees with
1969	renewed membership or subsection (13) with respect to DROP
1970	participants.
1971	8. Any person who has previously retired and who is
1972	holding an elective public office or an appointment to an
1973	elective public office eligible for the Elected Officers' Class
1974	on or after July 1, 1990, shall be enrolled in the Florida
1975	Retirement System as provided in s. 121.053(1)(b) or, if holding
1976	an elective public office that does not qualify for the Elected
1977	Officers' Class on or after July 1, 1991, shall be enrolled in
1978	the Florida Retirement System as provided in s. 121.122, and
1979	shall continue to receive retirement benefits as well as
1980	compensation for the elected officer's service for as long as he
1981	or she remains in elective office. However, any retired member
1982	who served in an elective office prior to July 1, 1990,
1983	suspended his or her retirement benefit, and had his or her
1984	Florida Retirement System membership reinstated shall, upon
1985	retirement from such office, have his or her retirement benefit
1986	recalculated to include the additional service and compensation
1987	earned.
1988	9. Any person who is holding an elective public office
1989	which is covered by the Florida Retirement System and who is
1990	concurrently employed in nonelected covered employment may elect
1991	to retire while continuing employment in the elective public
1992	office, provided that he or she shall be required to terminate
1993	his or her nonelected covered employment. Any person who
1994	exercises this election shall receive his or her retirement
1995	benefits in addition to the compensation of the elective office
1996	without regard to the time limitations otherwise provided in
1997	this subsection. No person who seeks to exercise the provisions
1998	of this subparagraph, as the same existed prior to May 3, 1984,
1999	shall be deemed to be retired under those provisions, unless
2000	such person is eligible to retire under the provisions of this
2001	subparagraph, as amended by chapter 84-11, Laws of Florida.
2002	10. The limitations of this paragraph apply to
2003	reemployment in any capacity with an "employer" as defined in s.
2004	121.021(10), irrespective of the category of funds from which
2005	the person is compensated.
2006	11. An employing agency may reemploy a retired member as a
2007	firefighter or paramedic after the retired member has been
2008	retired for 1 calendar month, in accordance with s. 121.021(39).
2009	Any retired member who is reemployed within 1 calendar month
2010	after retirement shall void his or her application for
2011	retirement benefits. The employing agency reemploying such
2012	firefighter or paramedic is subject to the retired contribution
2013	required in subparagraph 8. Reemployment of a retired
2014	firefighter or paramedic is limited to no more than 780 hours
2015	during the first 12 months of his or her retirement. Any retired
2016	member reemployed for more than 780 hours during the first 12
2017	months of retirement shall give timely notice in writing to the
2018	employer and to the division of the date he or she will exceed
2019	the limitation. The division shall suspend his or her retirement
2020	benefits for the remainder of the first 12 months of retirement.
2021	Any person employed in violation of this subparagraph and any
2022	employing agency which knowingly employs or appoints such person
2023	without notifying the Division of Retirement to suspend
2024	retirement benefits shall be jointly and severally liable for
2025	reimbursement to the Retirement System Trust Fund of any
2026	benefits paid during the reemployment limitation period. To
2027	avoid liability, such employing agency shall have a written
2028	statement from the retiree that he or she is not retired from a
2029	state-administered retirement system. Any retirement benefits
2030	received by a retired member while reemployed in excess of 780
2031	hours during the first 12 months of retirement shall be repaid
2032	to the Retirement System Trust Fund, and retirement benefits
2033	shall remain suspended until repayment is made. Benefits
2034	suspended beyond the end of the retired member's first 12 months
2035	of retirement shall apply toward repayment of benefits received
2036	in violation of the 780-hour reemployment limitation.
2037	(10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the
2038	intent of the Legislature that future benefit increases enacted
2039	into law in this chapter shall be financed concurrently by
2040	increased contributions or other adequate funding, and such
2041	funding shall be based on sound actuarial data as developed by
2042	the actuary or state retirement actuary, as provided in ss.
2043	121.021(6) and 121.192.
2044	(11) A member who becomes eligible to retire and has
2045	accumulated the maximum benefit of 100 percent of average final
2046	compensation may continue in active service, and, if upon the
2047	member's retirement the member elects to receive a retirement
2048	compensation pursuant to subsection (2), subsection (6), or
2049	subsection (7), the actuarial equivalent percentage factor
2050	applicable to the age of such member at the time the member
2051	reached the maximum benefit and to the age, at that time, of the
2052	member's spouse shall determine the amount of benefits to be
2053	paid.
2054	(12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR
2055	BENEFITS.--Notwithstanding any provision of this chapter to the
2056	contrary, for members with an effective date of retirement, or
2057	date of death if prior to retirement, on or after January 1,
2058	1996, the named joint annuitant, as defined in s.
2059	121.021(28)(b), who is eligible to receive benefits under
2060	subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive
2061	the maximum monthly retirement benefit that would have been
2062	payable to the member under subparagraph (6)(a)1.; however,
2063	payment of such benefit shall cease the month the joint
2064	annuitant attains age 25 unless such joint annuitant is disabled
2065	and incapable of self-support, in which case, benefits shall
2066	cease when the joint annuitant is no longer disabled. The
2067	administrator may require proof of disability or continued
2068	disability in the same manner as is provided for a member
2069	seeking or receiving a disability retirement benefit under
2070	subsection(4).
2071	(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
2072	subject to the provisions of this section, the Deferred
2073	Retirement Option Program, hereinafter referred to as the DROP,
2074	is a program under which an eligible member of the Florida
2075	Retirement System may elect to participate, deferring receipt of
2076	retirement benefits while continuing employment with his or her
2077	Florida Retirement System employer. The deferred monthly
2078	benefits shall accrue in the System Trust Fund on behalf of the
2079	participant, plus interest compounded monthly, for the specified
2080	period of the DROP participation, as provided in paragraph (c).
2081	Upon termination of employment, the participant shall receive
2082	the total DROP benefits and begin to receive the previously
2083	determined normal retirement benefits. Participation in the DROP
2084	does not guarantee employment for the specified period of DROP.
2085	(a) Eligibility of member to participate in the DROP.--All
2086	active Florida Retirement System members in a regularly
2087	established position, and all active members of either the
2088	Teachers' Retirement System established in chapter 238 or the
2089	State and County Officers' and Employees' Retirement System
2090	established in chapter 122 which systems are consolidated within
2091	the Florida Retirement System under s. 121.011, are eligible to
2092	elect participation in the DROP provided that:
2093	1. The member is not a renewed member of the Florida
2094	Retirement System under s. 121.122, or a member of the State
2095	Community College System Optional Retirement Program under s.
2096	121.051, the Senior Management Service Optional Annuity Program
2097	under s. 121.055, or the optional retirement program for the
2098	State University System under s. 121.35.
2099	2. Except as provided in subparagraph 6., election to
2100	participate is made within 12 months immediately following the
2101	date on which the member first reaches normal retirement date,
2102	or, for a member who reaches normal retirement date based on
2103	service before he or she reaches age 62, or age 55 for Special
2104	Risk Class members, election to participate may be deferred to
2105	the 12 months immediately following the date the member attains
2106	57, or age 52 for Special Risk Class members. For a member who
2107	first reached normal retirement date or the deferred eligibility
2108	date described above prior to the effective date of this
2109	section, election to participate shall be made within 12 months
2110	after the effective date of this section. A member who fails to
2111	make an election within such 12-month limitation period shall
2112	forfeit all rights to participate in the DROP. The member shall
2113	advise his or her employer and the division in writing of the
2114	date on which the DROP shall begin. Such beginning date may be
2115	subsequent to the 12-month election period, but must be within
2116	the 60-month limitation period as provided in subparagraph (b)1.
2117	When establishing eligibility of the member to participate in
2118	the DROP for the 60-month maximum participation period, the
2119	member may elect to include or exclude any optional service
2120	credit purchased by the member from the total service used to
2121	establish the normal retirement date. A member with dual normal
2122	retirement dates shall be eligible to elect to participate in
2123	DROP within 12 months after attaining normal retirement date in
2124	either class.
2125	3. The employer of a member electing to participate in the
2126	DROP, or employers if dually employed, shall acknowledge in
2127	writing to the division the date the member's participation in
2128	the DROP begins and the date the member's employment and DROP
2129	participation will terminate.
2130	4. Simultaneous employment of a participant by additional
2131	Florida Retirement System employers subsequent to the
2132	commencement of participation in the DROP shall be permissible
2133	provided such employers acknowledge in writing a DROP
2134	termination date no later than the participant's existing
2135	termination date or the 60-month limitation period as provided
2136	in subparagraph (b)1.
2137	5. A DROP participant may change employers while
2138	participating in the DROP, subject to the following:
2139	a. A change of employment must take place without a break
2140	in service so that the member receives salary for each month of
2141	continuous DROP participation. If a member receives no salary
2142	during a month, DROP participation shall cease unless the
2143	employer verifies a continuation of the employment relationship
2144	for such participant pursuant to s. 121.021(39)(b).
2145	b. Such participant and new employer shall notify the
2146	division on forms required by the division as to the identity of
2147	the new employer.
2148	c. The new employer shall acknowledge, in writing, the
2149	participant's DROP termination date, which may be extended but
2150	not beyond the original 60-month period provided in subparagraph
2151	(b)1., shall acknowledge liability for any additional retirement
2152	contributions and interest required if the participant fails to
2153	timely terminate employment, and shall be subject to the
2154	adjustment required in sub-subparagraph (c)5.d.
2155	6. Effective July 1, 2001, for instructional personnel as
2156	defined in s. 1012.01(2), election to participate in the DROP
2157	shall be made at any time following the date on which the member
2158	first reaches normal retirement date. The member shall advise
2159	his or her employer and the division in writing of the date on
2160	which the Deferred Retirement Option Program shall begin. When
2161	establishing eligibility of the member to participate in the
2162	DROP for the 60-month maximum participation period, as provided
2163	in subparagraph (b)1., the member may elect to include or
2164	exclude any optional service credit purchased by the member from
2165	the total service used to establish the normal retirement date.
2166	A member with dual normal retirement dates shall be eligible to
2167	elect to participate in either class.
2168	(b) Participation in the DROP.--
2169	1. An eligible member may elect to participate in the DROP
2170	for a period not to exceed a maximum of 60 calendar months
2171	immediately following the date on which the member first reaches
2172	his or her normal retirement date or the date to which he or she
2173	is eligible to defer his or her election to participate as
2174	provided in subparagraph (a)2. However, a member who has reached
2175	normal retirement date prior to the effective date of the DROP
2176	shall be eligible to participate in the DROP for a period of
2177	time not to exceed 60 calendar months immediately following the
2178	effective date of the DROP, except a member of the Special Risk
2179	Class who has reached normal retirement date prior to the
2180	effective date of the DROP and whose total accrued value exceeds
2181	75 percent of average final compensation as of his or her
2182	effective date of retirement shall be eligible to participate in
2183	the DROP for no more than 36 calendar months immediately
2184	following the effective date of the DROP.
2185	2. Upon deciding to participate in the DROP, the member
2186	shall submit, on forms required by the division:
2187	a. A written election to participate in the DROP;
2188	b. Selection of the DROP participation and termination
2189	dates, which satisfy the limitations stated in paragraph (a) and
2190	subparagraph 1. Such termination date shall be in a binding
2191	letter of resignation with the employer, establishing a deferred
2192	termination date. The member may change the termination date
2193	within the limitations of subparagraph 1., but only with the
2194	written approval of his or her employer;
2195	c. A properly completed DROP application for service
2196	retirement as provided in this section; and
2197	d. Any other information required by the division.
2198	3. The DROP participant shall be a retiree under the
2199	Florida Retirement System for all purposes, except for paragraph
2200	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
2201	and 121.122. However, participation in the DROP does not alter
2202	the participant's employment status and such employee shall not
2203	be deemed retired from employment until his or her deferred
2204	resignation is effective and termination occurs as provided in
2205	s. 121.021(39).
2206	4. Elected officers shall be eligible to participate in
2207	the DROP subject to the following:
2208	a. An elected officer who reaches normal retirement date
2209	during a term of office may defer the election to participate in
2210	the DROP until the next succeeding term in that office. Such
2211	elected officer who exercises this option may participate in the
2212	DROP for up to 60 calendar months or a period of no longer than
2213	such succeeding term of office, whichever is less.
2214	b. An elected or a nonelected participant may run for a
2215	term of office while participating in DROP and, if elected,
2216	extend the DROP termination date accordingly, except, however,
2217	if such additional term of office exceeds the 60-month
2218	limitation established in subparagraph 1., and the officer does
2219	not resign from office within such 60-month limitation, the
2220	retirement and the participant' s DROP shall be null and void as
2221	provided in sub-subparagraph (c)5.d.
2222	c. An elected officer who is dually employed and elects to
2223	participate in DROP shall be required to satisfy the definition
2224	of termination within the 60-month limitation period as provided
2225	in subparagraph 1. for the nonelected position and may continue
2226	employment as an elected officer as provided in s. 121.053. The
2227	elected officer will be enrolled as a renewed member in the
2228	Elected Officers' Class or the Regular Class, as provided in ss.
2229	121.053 and 121.22, on the first day of the month after
2230	termination of employment in the nonelected position and
2231	termination of DROP. Distribution of the DROP benefits shall be
2232	made as provided in paragraph (c).
2233	(c) Benefits payable under the DROP.--
2234	1. Effective with the date of DROP participation, the
2235	member's initial normal monthly benefit, including creditable
2236	service, optional form of payment, and average final
2237	compensation, and the effective date of retirement shall be
2238	fixed. The beneficiary established under the Florida Retirement
2239	System shall be the beneficiary eligible to receive any DROP
2240	benefits payable if the DROP participant dies prior to the
2241	completion of the period of DROP participation. In the event a
2242	joint annuitant predeceases the member, the member may name a
2243	beneficiary to receive accumulated DROP benefits payable. Such
2244	retirement benefit, the annual cost of living adjustments
2245	provided in s. 121.101, and interest shall accrue monthly in the
2246	System Trust Fund. Such interest shall accrue at an effective
2247	annual rate of 6.5 percent compounded monthly, on the prior
2248	month's accumulated ending balance, up to the month of
2249	termination or death.
2250	2. Each employee who elects to participate in the DROP
2251	shall be allowed to elect to receive a lump-sum payment for
2252	accrued annual leave earned in accordance with agency policy
2253	upon beginning participation in the DROP. Such accumulated leave
2254	payment certified to the division upon commencement of DROP
2255	shall be included in the calculation of the member's average
2256	final compensation. The employee electing such lump-sum payment
2257	upon beginning participation in DROP will not be eligible to
2258	receive a second lump-sum payment upon termination, except to
2259	the extent the employee has earned additional annual leave which
2260	combined with the original payment does not exceed the maximum
2261	lump-sum payment allowed by the employing agency's policy or
2262	rules. Such early lump-sum payment shall be based on the hourly
2263	wage of the employee at the time he or she begins participation
2264	in the DROP. If the member elects to wait and receive such lump-
2265	sum payment upon termination of DROP and termination of
2266	employment with the employer, any accumulated leave payment made
2267	at that time cannot be included in the member's retirement
2268	benefit, which was determined and fixed by law when the employee
2269	elected to participate in the DROP.
2270	3. The effective date of DROP participation and the
2271	effective date of retirement of a DROP participant shall be the
2272	first day of the month selected by the member to begin
2273	participation in the DROP, provided such date is properly
2274	established, with the written confirmation of the employer, and
2275	the approval of the division, on forms required by the division.
2276	4. Normal retirement benefits and interest thereon shall
2277	continue to accrue in the DROP until the established termination
2278	date of the DROP, or until the participant terminates employment
2279	or dies prior to such date. Although individual DROP accounts
2280	shall not be established, a separate accounting of each
2281	participant's accrued benefits under the DROP shall be
2282	calculated and provided to participants.
2283	5. At the conclusion of the participant's DROP, the
2284	division shall distribute the participant's total accumulated
2285	DROP benefits, subject to the following provisions:
2286	a. The division shall receive verification by the
2287	participant's employer or employers that such participant has
2288	terminated employment as provided in s. 121.021(39)(b).
2289	b. The terminated DROP participant or, if deceased, such
2290	participant's named beneficiary, shall elect on forms provided
2291	by the division to receive payment of the DROP benefits in
2292	accordance with one of the options listed below. For a
2293	participant or beneficiary who fails to elect a method of
2294	payment within 60 days of termination of the DROP, the division
2295	will pay a lump sum as provided in sub-sub-subparagraph (I).
2296	(I) Lump sum.--All accrued DROP benefits, plus interest,
2297	less withholding taxes remitted to the Internal Revenue Service,
2298	shall be paid to the DROP participant or surviving beneficiary.
2299	(II) Direct rollover.--All accrued DROP benefits, plus
2300	interest, shall be paid from the DROP directly to the custodian
2301	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
2302	the Internal Revenue Code. However, in the case of an eligible
2303	rollover distribution to the surviving spouse of a deceased
2304	participant, an eligible retirement plan is an individual
2305	retirement account or an individual retirement annuity as
2306	described in s. 402(c)(9) of the Internal Revenue Code.
2307	(III) Partial lump sum.--A portion of the accrued DROP
2308	benefits shall be paid to the DROP participant or surviving
2309	spouse, less withholding taxes remitted to the Internal Revenue
2310	Service, and the remaining DROP benefits shall be transferred
2311	directly to the custodian of an eligible retirement plan as
2312	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
2313	However, in the case of an eligible rollover distribution to the
2314	surviving spouse of a deceased participant, an eligible
2315	retirement plan is an individual retirement account or an
2316	individual retirement annuity as described in s. 402(c)(9) of
2317	the Internal Revenue Code. The proportions shall be specified by
2318	the DROP participant or surviving beneficiary.
2319	c. The form of payment selected by the DROP participant or
2320	surviving beneficiary complies with the minimum distribution
2321	requirements of the Internal Revenue Code.
2322	d. A DROP participant who fails to terminate employment as
2323	defined in s. 121.021(39)(b) shall be deemed not to be retired,
2324	and the DROP election shall be null and void. Florida Retirement
2325	System membership shall be reestablished retroactively to the
2326	date of the commencement of the DROP, and each employer with
2327	whom the participant continues employment shall be required to
2328	pay to the System Trust Fund the difference between the DROP
2329	contributions paid in paragraph (i) and the contributions
2330	required for the applicable Florida Retirement System class of
2331	membership during the period the member participated in the
2332	DROP, plus 6.5 percent interest compounded annually.
2333	6. The accrued benefits of any DROP participant, and any
2334	contributions accumulated under such program, shall not be
2335	subject to assignment, execution, attachment, or to any legal
2336	process whatsoever, except for qualified domestic relations
2337	orders by a court of competent jurisdiction, income deduction
2338	orders as provided in s. 61.1301, and federal income tax levies.
2339	7. DROP participants shall not be eligible for disability
2340	retirement benefits as provided in subsection (4).
2341	(d) Death benefits under the DROP.--
2342	1. Upon the death of a DROP participant, the named
2343	beneficiary shall be entitled to apply for and receive the
2344	accrued benefits in the DROP as provided in sub-subparagraph
2345	(c)5.b.
2346	2. The normal retirement benefit accrued to the DROP
2347	during the month of a participant's death shall be the final
2348	monthly benefit credited for such DROP participant.
2349	3. Eligibility to participate in the DROP terminates upon
2350	death of the participant. If the participant dies on or after
2351	the effective date of enrollment in the DROP, but prior to the
2352	first monthly benefit being credited to the DROP, Florida
2353	Retirement System benefits shall be paid in accordance with
2354	subparagraph (7)(c)1. or subparagraph 2.
2355	4. A DROP participants' survivors shall not be eligible to
2356	receive Florida Retirement System death benefits as provided in
2357	paragraph (7)(d).
2358	(e) Cost-of-living adjustment.--On each July 1, the
2359	participants' normal retirement benefit shall be increased as
2360	provided in s. 121.101.
2361	(f) Retiree health insurance subsidy.--DROP participants
2362	are not eligible to apply for the retiree health insurance
2363	subsidy payments as provided in s. 112.363 until such
2364	participants have terminated employment and participation in the
2365	DROP.
2366	(g) Renewed membership.--DROP participants shall not be
2367	eligible for renewed membership in the Florida Retirement System
2368	under ss. 121.053 and 121.122 until termination of employment is
2369	effectuated as provided in s. 121.021(39)(b).
2370	(h) Employment limitation after DROP participation.--Upon
2371	satisfying the definition of termination of employment as
2372	provided in s. 121.021(39)(b), DROP participants shall be
2373	subject to such reemployment limitations as other retirees.
2374	Reemployment restrictions applicable to retirees as provided in
2375	subsection (9) shall not apply to DROP participants until their
2376	employment and participation in the DROP are terminated.
2377	(i) Contributions.--
2378	1. All employers paying the salary of a DROP participant
2379	filling a regularly established position shall contribute 8.0
2380	percent of such participant's gross compensation for the period
2381	of July 1, 2002, through June 30, 2003, and 11.56 percent of
2382	such compensation thereafter, which shall constitute the entire
2383	employer DROP contribution with respect to such participant.
2384	Such contributions, payable to the System Trust Fund in the same
2385	manner as required in s. 121.071, shall be made as appropriate
2386	for each pay period and are in addition to contributions
2387	required for social security and the Retiree Health Insurance
2388	Subsidy Trust Fund. Such employer, social security, and health
2389	insurance subsidy contributions are not included in the DROP.
2390	2. The employer shall, in addition to subparagraph 1.,
2391	also withhold one-half of the entire social security
2392	contribution required for the participant. Contributions for
2393	social security by each participant and each employer, in the
2394	amount required for social security coverage as now or hereafter
2395	provided by the federal Social Security Act, shall be in
2396	addition to contributions specified in subparagraph 1.
2397	3. All employers paying the salary of a DROP participant
2398	filling a regularly established position shall contribute the
2399	percent of such participant's gross compensation required in s.
2400	121.071(4), which shall constitute the employer's health
2401	insurance subsidy contribution with respect to such participant.
2402	Such contributions shall be deposited by the administrator in
2403	the Retiree Health Insurance Subsidy Trust Fund.
2404	(j) Forfeiture of retirement benefits.--Nothing in this
2405	section shall be construed to remove DROP participants from the
2406	scope of s. 8(d), Art. II of the State Constitution, s.
2407	112.3173, and paragraph (5)(f). DROP participants who commit a
2408	specified felony offense while employed will be subject to
2409	forfeiture of all retirement benefits, including DROP benefits,
2410	pursuant to those provisions of law.
2411	(k) Administration of program.--The division shall make
2412	such rules as are necessary for the effective and efficient
2413	administration of this subsection. The division shall not be
2414	required to advise members of the federal tax consequences of an
2415	election related to the DROP but may advise members to seek
2416	independent advice.
2417	(14) PAYMENT OF BENEFITS.--This subsection applies to the
2418	payment of benefits to a payee (retiree or beneficiary) under
2419	the Florida Retirement System:
2420	(a) Federal income tax shall be withheld in accordance
2421	with federal law, unless the payee elects otherwise on Form W-
2422	4P. The division shall prepare and distribute to each recipient
2423	of monthly retirement benefits an appropriate income tax form
2424	that reflects the recipient's income and federal income tax
2425	withheld for the calendar year just ended.
2426	(b) Subject to approval by the division in accordance with
2427	rule 60S-4.015, Florida Administrative Code, a payee receiving
2428	retirement benefits under the Florida Retirement System may also
2429	have the following payments deducted from his or her monthly
2430	benefit:
2431	1. Premiums for life and health-related insurance policies
2432	from approved companies.
2433	2. Life insurance premiums for the State Group Life
2434	Insurance Plan, if authorized in writing by the payee and by the
2435	Department of Management Services.
2436	3. Repayment of overpayments from the Florida Retirement
2437	System Trust Fund, the State Employees' Health Insurance Trust
2438	Fund, or the State Employees' Life Insurance Trust Fund, upon
2439	notification of the payee.
2440	4. Payments to an alternate payee for alimony, child
2441	support, or division of marital assets pursuant to a qualified
2442	domestic relations order under s. 222.21 or an income deduction
2443	order under s. 61.1301.
2444	5. Payments to the Internal Revenue Service for federal
2445	income tax levies, upon notification of the division by the
2446	Internal Revenue Service.
2447	(c) A payee shall notify the division of any change in his
2448	or her address. The division may suspend benefit payments to a
2449	payee if correspondence sent to the payee's mailing address is
2450	returned due to an incorrect address. Benefit payments shall be
2451	resumed upon notification to the division of the payee's new
2452	address.
2453	(d) A payee whose retirement benefits are reduced by the
2454	application of maximum benefit limits under s. 415(b) of the
2455	Internal Revenue Code, as specified in s. 121.30(5), shall have
2456	the portion of his or her calculated benefit in the Florida
2457	Retirement System defined benefit plan which exceeds such
2458	federal limitation paid through the Florida Retirement System
2459	Preservation of Benefits Plan, as provided in s. 121.1001.
2460	(e) No benefit may be reduced for the purpose of
2461	preserving the member's eligibility for a federal program.
2462	(f) The division shall adopt rules establishing procedures
2463	for determining that the persons to whom benefits are being paid
2464	are still living. The division shall suspend the benefits being
2465	paid to any payee when it is unable to contact such payee and to
2466	confirm that he or she is still living.
2467	Section 25. Paragraph (b) of subsection (7) of section
2468	121.101, Florida Statutes, is amended to read:
2469	121.101 Cost-of-living adjustment of benefits.--
2470	(7) The purpose of this subsection is to establish a
2471	supplemental cost-of-living adjustment for certain retirees and
2472	beneficiaries who receive monthly retirement benefits under the
2473	provisions of this chapter and the existing systems consolidated
2474	therein, s. 112.05 for certain state officers and employees, and
2475	s. 238.171 for certain elderly incapacitated teachers.
2476	(b) Application for the supplemental cost-of-living
2477	adjustment provided by this subsection shall include
2478	certification by the retiree or annuitant that he or she is not
2479	receiving, and is not eligible to receive, social security
2480	benefits and shall include written authorization for the
2481	divisiondepartmentto have access to information from the
2482	Social Security Administration concerning his or her entitlement
2483	to, or eligibility for, social security benefits. Such
2484	supplemental cost-of-living adjustment shall not be paid unless
2485	and until the application requirements of this paragraph are
2486	met.
2487	Section 26. Paragraph (e) of subsection (2) of section
2488	121.111, Florida Statutes, is amended to read:
2489	121.111 Credit for military service.--
2490	(2) Any member whose initial date of employment is before
2491	January 1, 1987, who has military service as defined in s.
2492	121.021(20)(b), and who does not claim such service under
2493	subsection (1) may receive creditable service for such military
2494	service if:
2495	(e) Any member claiming credit under this subsection must
2496	certify on the form prescribed by the divisiondepartmentthat
2497	credit for such service has not and will not be claimed for
2498	retirement purposes under any other federal, state, or local
2499	retirement or pension system where "length of service" is a
2500	factor in determining the amount of compensation received,
2501	except where credit for such service has been granted in a
2502	pension system providing retired pay for nonregular service as
2503	provided in paragraph (d). If the member dies prior to
2504	retirement, the member's beneficiary must make the required
2505	certification before credit may be claimed. If such
2506	certification is not made by the member or the member's
2507	beneficiary, credit for wartime military service shall not be
2508	allowed.
2509	Section 27. Section 121.133, Florida Statutes, is amended
2510	to read:
2511	121.133 Cancellation of uncashed
2512	warrants.--Notwithstanding the provisions of s. 17.26 or s.
2513	717.123 to the contrary, effective July 1, 1998, if any state
2514	warrant issued by the Comptroller for the payment of retirement
2515	benefits from the Florida Retirement System Trust Fund, or any
2516	other pension trust fund administered by the division
2517	department, is not presented for payment within 1 year after the
2518	last day of the month in which it was originally issued, the
2519	Comptroller shall cancel the benefit warrant and credit the
2520	amount of the warrant to the Florida Retirement System Trust
2521	Fund or other pension trust fund administered by the division
2522	department, as appropriate. The divisiondepartmentmay provide
2523	for issuance of a replacement warrant when deemed appropriate.
2524	Section 28. Section 121.135, Florida Statutes, is amended
2525	to read:
2526	121.135 Annual report to Legislature concerning the
2527	Florida Retirement Systemstate-administered retirement
2528	systems.--The boarddepartmentshall make to each regular
2529	session of the Legislature a written report on the operation and
2530	condition of the Florida Retirement Systemthe state-
2531	administered retirement systems.
2532	Section 29. Section 121.136, Florida Statutes, is amended
2533	to read:
2534	121.136 Annual benefit statement to members.--Beginning
2535	January 1, 1993, and each January thereafter, the board
2536	departmentshall provide each active member of the Florida
2537	Retirement System with 5 or more years of creditable service an
2538	annual statement of benefits. Such statement should provide the
2539	member with basic data about the member's retirement account.
2540	Minimally, it shall include the member's retirement plan, the
2541	amount of funds on deposit in the retirement account, and an
2542	estimate of retirement benefits.
2543	Section 30. Section 121.1905, Florida Statutes, is amended
2544	to read:
2545	121.1905 Division of Retirement; missioncreation.--
2546	(1) There is created the Division of Retirement within the
2547	Department of Management Services.
2548	(2)The mission of the Division of Retirement is to
2549	provide quality and cost-effective retirement services as
2550	measured by member satisfaction and by comparison with
2551	administrative costs of comparable retirement systems.
2552	Section 31. Section 121.192, Florida Statutes, is amended
2553	to read:
2554	121.192 State retirement actuary.--The divisiondepartment
2555	may employ an actuary. Such actuary shall, together with such
2556	other duties as the administrator assignssecretary may assign,
2557	be responsible for:
2558	(1) Advising the administratorsecretaryon actuarial
2559	matters of the state retirement systems.
2560	(2) Making periodic valuations of the retirement systems.
2561	(3) Providing actuarial analyses to the Legislature
2562	concerning proposed changes in the retirement systems.
2563	(4) Assisting the administratorsecretaryin developing a
2564	sound and modern retirement system.
2565	Section 32. Section 121.193, Florida Statutes, is amended
2566	to read:
2567	121.193 External compliance audits.--
2568	(1) The divisiondepartmentshall conduct audits of the
2569	payroll and personnel records of participating agencies. These
2570	audits shall be made to determine the accuracy of reports
2571	submitted to the divisiondepartmentand to assess the degree of
2572	compliance with applicable statutes, rules, and coverage
2573	agreements. Audits shall be scheduled on a regular basis, as the
2574	result of concerns known to exist at an agency, or as a followup
2575	to ensure agency action was taken to correct deficiencies found
2576	in an earlier audit.
2577	(2) Upon request, participating agencies shall furnish the
2578	divisiondepartment with information and documents that the
2579	divisiondepartment requires to conduct the audit. The division
2580	departmentmay prescribe by rule the documents that may be
2581	requested.
2582	(3) The divisiondepartmentshall review the agency's
2583	operations concerning retirement and social security coverage.
2584	Preliminary findings shall be discussed with agency personnel at
2585	the close of the audit. An audit report of findings and
2586	recommendations shall be submitted to divisiondepartment
2587	management and an audit summary letter shall be submitted to the
2588	agency noting any concerns and necessary corrective action.
2589	Section 33. Subsection (1) of section 121.22, Florida
2590	Statutes, is amended to read:
2591	121.22 State Retirement Commission; creation; membership;
2592	compensation.--
2593	(1) There is created within the Division of Retirement
2594	Department of Management Servicesa State Retirement Commission
2595	composed of three members: One member who is retired under a
2596	state-supported retirement system administered by the division
2597	department; one member who is an active member of a state-
2598	supported retirement system that is administered by the division
2599	department; and one member who is neither a retiree,
2600	beneficiary, or member of a state-supported retirement system
2601	administered by the divisiondepartment. Each member shall have
2602	a different occupational background from the other members.
2603	Section 34. Subsection (1) of section 121.23, Florida
2604	Statutes, is amended to read:
2605	121.23 Disability retirement and special risk membership
2606	applications; Retirement Commission; powers and duties; judicial
2607	review.--The provisions of this section apply to all proceedings
2608	in which the administrator has made a written final decision on
2609	the merits respecting applications for disability retirement,
2610	reexamination of retired members receiving disability benefits,
2611	applications for special risk membership, and reexamination of
2612	special risk members in the Florida Retirement System. The
2613	jurisdiction of the State Retirement Commission under this
2614	section shall be limited to written final decisions of the
2615	administrator on the merits.
2616	(1) In accordance with the rules of procedure adopted by
2617	the divisionDepartment of Management Services, the
2618	administrator shall:
2619	(a) Give reasonable notice of his or her proposed action,
2620	or decision to refuse action, together with a summary of the
2621	factual, legal, and policy grounds therefor.
2622	(b) Give affected members, or their counsel, an
2623	opportunity to present to the division written evidence in
2624	opposition to the proposed action or refusal to act or a written
2625	statement challenging the grounds upon which the administrator
2626	has chosen to justify his or her action or inaction.
2627	(c) If the objections of the member are overruled, provide
2628	a written explanation within 21 days.
2629	Section 35. Subsections (2), (3), and (4) of section
2630	121.24, Florida Statutes, are amended to read:
2631	121.24 Conduct of commission business; legal and other
2632	assistance; compensation.--
2633	(2) Legal counsel for the commission may be provided by
2634	the Department of Legal Affairs or by the divisionDepartment of
2635	Management Services, with the concurrence of the commission, and
2636	shall be paid by the divisionDepartment of Management Services
2637	from the appropriate funds.
2638	(3) The divisionDepartment of Management Servicesshall
2639	provide timely and appropriate training for newly appointed
2640	members of the commission. Such training shall be designed to
2641	acquaint new members of the commission with the duties and
2642	responsibilities of the commission.
2643	(4) The divisionDepartment of Management Servicesshall
2644	furnish administrative and secretarial assistance to the
2645	commission and shall provide a place where the commission may
2646	hold its meetings.
2647	Section 36. Subsection (9) of section 121.30, Florida
2648	Statutes, is amended to read:
2649	121.30 Statements of purpose and intent and other
2650	provisions required for qualification under the Internal Revenue
2651	Code of the United States.--Any other provisions in this chapter
2652	to the contrary notwithstanding, it is specifically provided
2653	that:
2654	(9) The divisiondepartmentmay adopt any rule necessary
2655	to accomplish the purpose of the section which is not
2656	inconsistent with this chapter.
2657	Section 37. Paragraph (c) of subsection (2), paragraphs
2658	(c) and (e) of subsection (3), paragraphs (a), (b), and (c) of
2659	subsection (4), and subsection (6) of section 121.35, Florida
2660	Statutes, are amended to read:
2661	121.35 Optional retirement program for the State
2662	University System.--
2663	(2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.--
2664	(c) For purposes of this section, the State Board of
2665	AdministrationDepartment of Management Servicesis referred to
2666	as the "boarddepartment."
2667	(3) ELECTION OF OPTIONAL PROGRAM.--
2668	(c) Any employee who becomes eligible to participate in
2669	the optional retirement program on or after January 1, 1993,
2670	shall be a compulsory participant of the program unless such
2671	employee elects membership in the Florida Retirement System.
2672	Such election shall be made in writing and filed with the
2673	personnel officer of the employer. Any eligible employee who
2674	fails to make such election within the prescribed time period
2675	shall be deemed to have elected to participate in the optional
2676	retirement program.
2677	1. Any employee whose optional retirement program
2678	eligibility results from initial employment shall be enrolled in
2679	the program at the commencement of employment. If, within 90
2680	days after commencement of employment, the employee elects
2681	membership in the Florida Retirement System, such membership
2682	shall be effective retroactive to the date of commencement of
2683	employment.
2684	2. Any employee whose optional retirement program
2685	eligibility results from a change in status due to the
2686	subsequent designation of the employee's position as one of
2687	those specified in paragraph (2)(a) or due to the employee's
2688	appointment, promotion, transfer, or reclassification to a
2689	position specified in paragraph (2)(a) shall be enrolled in the
2690	optional retirement program upon such change in status and shall
2691	be notified by the employer of such action. If, within 90 days
2692	after the date of such notification, the employee elects to
2693	retain membership in the Florida Retirement System, such
2694	continuation of membership shall be retroactive to the date of
2695	the change in status.
2696	3. Notwithstanding the provisions of this paragraph,
2697	effective July 1, 1997, any employee who is eligible to
2698	participate in the Optional Retirement Program and who fails to
2699	execute a contract with one of the approved companies and to
2700	notify the boarddepartmentin writing as provided in subsection
2701	(4) within 90 days after the date of eligibility shall be deemed
2702	to have elected membership in the Florida Retirement System,
2703	except as provided in s. 121.051(1)(a). This provision shall
2704	also apply to any employee who terminates employment in an
2705	eligible position before executing the required annuity contract
2706	and notifying the boarddepartment. Such membership shall be
2707	retroactive to the date of eligibility, and all appropriate
2708	contributions shall be transferred to the Florida Retirement
2709	System Trust Fund and the Health Insurance Subsidy Trust Fund.
2710	(e) The election by an eligible employee to participate in
2711	the optional retirement program shall be irrevocable for so long
2712	as the employee continues to meet the eligibility requirements
2713	specified in subsection (2), except as provided in paragraph
2714	(h). In the event that an employee participates in the optional
2715	retirement program for 90 days or more and is subsequently
2716	employed in an administrative or professional position which has
2717	been determined by the boarddepartment, under subparagraph
2718	(2)(a)2., to be not otherwise eligible for participation in the
2719	optional retirement program, the employee shall continue
2720	participation in the optional program so long as the employee
2721	meets the other eligibility requirements for the program, except
2722	as provided in paragraph (h).
2723	(4) CONTRIBUTIONS.--
2724	(a) Through June 30, 2001, each employer shall contribute
2725	on behalf of each participant in the optional retirement program
2726	an amount equal to the normal cost portion of the employer
2727	retirement contribution which would be required if the
2728	participant were a regular member of the Florida Retirement
2729	System defined benefit program, plus the portion of the
2730	contribution rate required in s. 112.363(8) that would otherwise
2731	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
2732	Effective July 1, 2001, each employer shall contribute on behalf
2733	of each participant in the optional program an amount equal to
2734	10.43 percent of the participant's gross monthly compensation.
2735	The board, pursuant to s. 215.44(4),departmentshall deduct an
2736	amount approved by the Legislatureto provide for the
2737	administration of this program. The payment of the contributions
2738	to the optional program which is required by this paragraph for
2739	each participant shall be made by the employer to the board
2740	department, which shall forward the contributions to the
2741	designated company or companies contracting for payment of
2742	benefits for the participant under the program. However, such
2743	contributions paid on behalf of an employee described in
2744	paragraph (3)(c) shall not be forwarded to a company and shall
2745	not begin to accrue interest until the employee has executed an
2746	annuity contract and notified the boarddepartment.
2747	(b) Each employer shall contribute on behalf of each
2748	participant in the optional retirement program an amount equal
2749	to the unfunded actuarial accrued liability portion of the
2750	employer contribution which would be required for members of the
2751	Florida Retirement System. This contribution shall be paid to
2752	the boarddepartmentfor transfer to the Florida Retirement
2753	System Trust Fund.
2754	(c) An Optional Retirement Program Trust Fund shall be
2755	established in the State Treasury and administered by the board
2756	departmentto make payments to the provider companies on behalf
2757	of the optional retirement program participants, and to transfer
2758	the unfunded liability portion of the state optional retirement
2759	program contributions to the Florida Retirement System Trust
2760	Fund.
2761	(6) ADMINISTRATION OF PROGRAM.--
2762	(a) The optional retirement program authorized by this
2763	section shall be administered by the boarddepartment. The board
2764	departmentshall adopt rules establishing the responsibilities
2765	of the State Board of Education and institutions in the State
2766	University System in administering the optional retirement
2767	program. The State Board of Education shall, no more than 90
2768	days after July 1, 1983, submit to the boarddepartmentits
2769	recommendations for the contracts to be offered by the companies
2770	chosen by the State Board of Educationdepartment. The
2771	recommendations of the board shall include the following:
2772	1. The nature and extent of the rights and benefits in
2773	relation to the required contributions; and
2774	2. The suitability of the rights and benefits to the needs
2775	of the participants and the interests of the institutions in the
2776	recruitment and retention of eligible employees.
2777	(b) After receiving and considering the recommendations of
2778	the State Board of Education, the boarddepartmentshall
2779	designate no more than four companies from which contracts may
2780	be purchased under the program and shall approve the form and
2781	content of the optional retirement program contracts. Upon
2782	application by a qualified Florida domestic company, the board
2783	departmentshall give reasonable notice to all other such
2784	companies that it intends to designate one of such companies as
2785	a fifth company from which contracts may be purchased pursuant
2786	to this section and that they may apply for such designation
2787	prior to the deadline established by said notice. At least 60
2788	days after giving such notice and upon receipt of the
2789	recommendation of the State Board of Education, the board
2790	departmentshall so designate one of such companies as the fifth
2791	company from which such contracts may be purchased.
2792	(c) Effective July 1, 1997, the State Board of
2793	Administration shall review and make recommendations to the
2794	department on the acceptability of all investment products
2795	proposed by provider companies of the optional retirement
2796	program before they are offered through annuity contracts to the
2797	participants and may advise the department of any changes
2798	necessary to ensure that the optional retirement program offers
2799	an acceptable mix of investment products. The boarddepartment
2800	shall determine whichmake the final determination as to whether
2801	an investment productsproduct will be included inapproved for
2802	the program.
2803	(d) The provisions of each contract applicable to a
2804	participant in the optional retirement program shall be
2805	contained in a written program description which shall include a
2806	report of pertinent financial and actuarial information on the
2807	solvency and actuarial soundness of the program and the benefits
2808	applicable to the participant. Such description shall be
2809	furnished by the companies to each participant in the program
2810	and to the boarddepartmentupon commencement of participation
2811	in the program and annually thereafter.
2812	(e) The boarddepartmentshall ensure that each
2813	participant in the optional retirement program is provided an
2814	accounting of the total contribution and the annual contribution
2815	made by and on behalf of such participant.
2816	Section 38. Paragraph (b) of subsection (3) and paragraphs
2817	(a) and (b) of subsection (14) of section 121.40, Florida
2818	Statutes, are amended to read:
2819	121.40 Cooperative extension personnel at the Institute of
2820	Food and Agricultural Sciences; supplemental retirement
2821	benefits.--
2822	(3) DEFINITIONS.--The definitions provided in s. 121.021
2823	shall not apply to this section except when specifically cited.
2824	For the purposes of this section, the following words or phrases
2825	have the respective meanings set forth:
2826	(b) "DivisionDepartment" means the Division of Retirement
2827	of the State Board of AdministrationDepartment of Management
2828	Services.
2829	(14) ADMINISTRATION OF SYSTEM.--
2830	(a) The divisiondepartmentshall make such rules as are
2831	necessary for the effective and efficient administration of this
2832	system. The executive director of the State Board of
2833	Administrationsecretary of the departmentshall be the
2834	administrator of the system. The funds to pay the expenses for
2835	such administration areshall beappropriated from the interest
2836	earned on investments made for the trust fund.
2837	(b) The divisiondepartmentis authorized to require
2838	oaths, by affidavit or otherwise, and acknowledgments from
2839	persons in connection with the administration of its duties and
2840	responsibilities under this section.
2841	Section 39. Subsection (3) of section 121.45, Florida
2842	Statutes, is amended to read:
2843	121.45 Interstate compacts relating to pension
2844	portability.--
2845	(3) ESTABLISHMENT OF COMPACTS.--
2846	(a) The divisionDepartment of Management Servicesis
2847	authorized and directed to survey other state retirement systems
2848	to determine if such retirement systems are interested in
2849	developing an interstate compact with Florida.
2850	(b) If any such state is interested in pursuing the
2851	matter, the divisiondepartmentshall confer with the other
2852	state and the consulting actuaries of both states, and shall
2853	present its findings to the committees having jurisdiction over
2854	retirement matters in the Legislature, and to representatives of
2855	affected certified bargaining units, in order to determine the
2856	feasibility of developing a portability compact, what groups
2857	should be covered, and the goals and priorities which should
2858	guide such development.
2859	(c) Upon a determination that such a compact is feasible
2860	and upon request of the Legislature, the divisiondepartment,
2861	together with its consulting actuaries, shall, in accordance
2862	with suchsaidgoals and priorities, develop a proposal under
2863	which retirement credit may be transferred to or from Florida in
2864	an actuarially sound manner.
2865	(d) Once a proposal has been developed, the division
2866	departmentshall contract with its consulting actuaries to
2867	conduct an actuarial study of the proposal to determine the cost
2868	to the Florida Retirement System Trust Fund and the State of
2869	Florida.
2870	(e) After the actuarial study has been completed, the
2871	divisiondepartmentshall present its findings and the actuarial
2872	study to the Legislature for consideration. If either house of
2873	the Legislature elects to enter into such a compact, it shall be
2874	introduced in the form of a proposed committee bill to the full
2875	Legislature during the same or next regular session.
2876	Section 40. Subsection (2), paragraph (a) of subsection
2877	(5), paragraphs (a), (b), (c), and (e) of subsection (8),
2878	paragraph (c) of subsection (9), paragraphs (a), (c), and (f) of
2879	subsection (10), subsection (11), paragraph (b) of subsection
2880	(12), and subsection (19) of section 121.4501, Florida Statutes,
2881	are amended to read:
2882	121.4501 Public Employee Optional Retirement Program.--
2883	(2) DEFINITIONS.--As used in this part, the term:
2884	(a) "Approved provider" or "provider" means a private
2885	sector company that is selected and approved by the stateboard
2886	to offer one or more investment products or services to the
2887	Public Employee Optional Retirement Program. The term includes a
2888	bundled provider that offers participants a range of
2889	individually allocated or unallocated investment products and
2890	may offer a range of administrative and customer services, which
2891	may include accounting and administration of individual
2892	participant benefits and contributions; individual participant
2893	recordkeeping; asset purchase, control, and safekeeping; direct
2894	execution of the participant's instructions as to asset and
2895	contribution allocation; calculation of daily net asset values;
2896	direct access to participant account information; periodic
2897	reporting to participants, at least quarterly, on account
2898	balances and transactions; guidance, advice, and allocation
2899	services directly relating to its own investment options or
2900	products, but only if the bundled provider complies with the
2901	standard of care of s. 404(a)(1)(A-B) of the Employee Retirement
2902	Income Security Act of 1974 (ERISA) and if providing such
2903	guidance, advice, or allocation services does not constitute a
2904	prohibited transaction under s. 4975(c)(1) of the Internal
2905	Revenue Code or s. 406 of ERISA, notwithstanding that such
2906	prohibited transaction provisions do not apply to the optional
2907	retirement program; a broad array of distribution options; asset
2908	allocation; and retirement counseling and education. Private
2909	sector companies include investment management companies,
2910	insurance companies, depositories, and mutual fund companies.
2911	(b) "Average monthly compensation" means one-twelfth of
2912	average final compensation as defined in s. 121.021(24).
2913	(c) "Covered employment" means employment in a regularly
2914	established position as defined in s. 121.021(52).
2915	(d) "Department" means the Department of Management
2916	Services.
2917	(d)(e) "Division" means the Division of Retirement of the
2918	State Board of Administrationwithin the Department of
2919	Management Services.
2920	(e)(f)"Eligible employee" means an officer or employee,
2921	as defined in s. 121.021(11), who:
2922	1. Is a member of, or is eligible for membership in, the
2923	Florida Retirement System, including any renewed member of the
2924	Florida Retirement System;
2925	2. Participates in, or is eligible to participate in, the
2926	Senior Management Service Optional Annuity Program as
2927	established under s. 121.055(6); or
2928	3. Is eligible to participate in, but does not participate
2929	in, the State University System Optional Retirement Program
2930	established under s. 121.35 or the State Community College
2931	System Optional Retirement Program established under s.
2932	121.051(2)(c).
2933
2934	The term does not include any member participating in the
2935	Deferred Retirement Option Program established under s.
2936	121.091(13) or any employee participating in an optional
2937	retirement program established under s. 121.051(2)(c) or s.
2938	121.35.
2939	(f)(g)"Employer" means an employer, as defined in s.
2940	121.021(10), of an eligible employee.
2941	(g)(h)"Participant" means an eligible employee who elects
2942	to participate in the Public Employee Optional Retirement
2943	Program and enrolls in such optional program as provided in
2944	subsection (4).
2945	(h)(i)"Public Employee Optional Retirement Program,"
2946	"optional program," or "optional retirement program" means the
2947	alternative defined contribution retirement program established
2948	under this section.
2949	(i)(j)"State board" or "board" means the State Board of
2950	Administration.
2951	(j)(k)"Trustees" means Trustees of the State Board of
2952	Administration.
2953	(k)(l)"Vested" or "vesting" means the guarantee that a
2954	participant is eligible to receive a retirement benefit upon
2955	completion of the required years of service under the Public
2956	Employee Optional Retirement Program.
2957	(5) CONTRIBUTIONS.--
2958	(a) Each employer shall contribute on behalf of each
2959	participant in the Public Employee Optional Retirement Program,
2960	as provided in part III of this chapter. The state board, acting
2961	as plan fiduciary, shall ensure that all plan assets are held in
2962	a trust, pursuant to s. 401 of the Internal Revenue Code. The
2963	fiduciary shall ensure that said contributions are allocated as
2964	follows:
2965	1. The portion earmarked for participant accounts shall be
2966	used to purchase interests in the appropriate investment
2967	vehicles for the accounts of each participant as specified by
2968	the participant, or in accordance with paragraph (4)(d).
2969	2. The portion earmarked for administrative and
2970	educational expenses shall be transferred to the board.
2971	3. The portion earmarked for disability benefits shall be
2972	transferred to the divisiondepartment.
2973	(8) ADMINISTRATION OF PROGRAM.--
2974	(a) The Public Employee Optional Retirement Program shall
2975	be administered by the state board and affected employers. The
2976	board is authorized to require oaths, by affidavit or otherwise,
2977	and acknowledgments from persons in connection with the
2978	administration of its duties and responsibilities under this
2979	chapter. No oath, by affidavit or otherwise, shall be required
2980	of an employee participant at the time of election.
2981	Acknowledgment of an employee's election to participate in the
2982	program shall be no greater than necessary to confirm the
2983	employee's election. The board shall adopt rules establishing
2984	the role and responsibilities of affected state, local
2985	government, and education-related employers, the state board,
2986	the department,and third-party contractors in administering the
2987	Public Employee Optional Retirement Program. The division
2988	departmentshall adopt rules necessary to implement the optional
2989	program in coordination with the defined benefit retirement
2990	program and the disability benefits available under the optional
2991	program.
2992	(b)1. The state board shall select and contract with one
2993	third-party administrator to provide administrative services if
2994	those services cannot be competitively and contractually
2995	provided by the division of Retirement within the Department of
2996	Management Services. With the approval of the state board, the
2997	third-party administrator may subcontract with other
2998	organizations or individuals to provide components of the
2999	administrative services. As a cost of administration, the board
3000	may compensate any such contractor for its services, in
3001	accordance with the terms of the contract, as is deemed
3002	necessary or proper by the board. The third-party administrator
3003	may not be an approved provider or be affiliated with an
3004	approved provider.
3005	2. These administrative services may include, but are not
3006	limited to, enrollment of eligible employees, collection of
3007	employer contributions, disbursement of such contributions to
3008	approved providers in accordance with the allocation directions
3009	of participants; services relating to consolidated billing;
3010	individual and collective recordkeeping and accounting; asset
3011	purchase, control, and safekeeping; and direct disbursement of
3012	funds to and from the third-party administrator, the division,
3013	the board, employers, participants, approved providers, and
3014	beneficiaries. This section does not prevent or prohibit a
3015	bundled provider from providing any administrative or customer
3016	service, including accounting and administration of individual
3017	participant benefits and contributions; individual participant
3018	recordkeeping; asset purchase, control, and safekeeping; direct
3019	execution of the participant' s instructions as to asset and
3020	contribution allocation; calculation of daily net asset values;
3021	direct access to participant account information; or periodic
3022	reporting to participants, at least quarterly, on account
3023	balances and transactions, if these services are authorized by
3024	the board as part of the contract.
3025	3. The state board shall select and contract with one or
3026	more organizations to provide educational services. With
3027	approval of the board, the organizations may subcontract with
3028	other organizations or individuals to provide components of the
3029	educational services. As a cost of administration, the board may
3030	compensate any such contractor for its services in accordance
3031	with the terms of the contract, as is deemed necessary or proper
3032	by the board. The education organization may not be an approved
3033	provider or be affiliated with an approved provider.
3034	4. Educational services shall be designed by the board and
3035	departmentto assist employers, eligible employees,
3036	participants, and beneficiaries in order to maintain compliance
3037	with United States Department of Labor regulations under s.
3038	404(c) of the Employee Retirement Income Security Act of 1974
3039	and to assist employees in their choice of defined benefit or
3040	defined contribution retirement alternatives. Educational
3041	services include, but are not limited to, disseminating
3042	educational materials; providing retirement planning education;
3043	explaining the differences between the defined benefit
3044	retirement plan and the defined contribution retirement plan;
3045	and offering financial planning guidance on matters such as
3046	investment diversification, investment risks, investment costs,
3047	and asset allocation. An approved provider may also provide
3048	educational information, including retirement planning and
3049	investment allocation information concerning its products and
3050	services.
3051	(c)1. In evaluating and selecting a third-party
3052	administrator, the board shall establish criteria under which it
3053	shall consider the relative capabilities and qualifications of
3054	each proposed administrator. In developing such criteria, the
3055	board shall consider:
3056	a. The administrator's demonstrated experience in
3057	providing administrative services to public or private sector
3058	retirement systems.
3059	b. The administrator's demonstrated experience in
3060	providing daily valued recordkeeping to defined contribution
3061	plans.
3062	c. The administrator's ability and willingness to
3063	coordinate its activities with the Florida Retirement System
3064	employers, the board, and the division, and to supply to such
3065	employers, the board, and the division the information and data
3066	they require, including, but not limited to, monthly management
3067	reports, quarterly participant reports, and ad hoc reports
3068	requested by the department orboard.
3069	d. The cost-effectiveness and levels of the administrative
3070	services provided.
3071	e. The administrator's ability to interact with the
3072	participants, the employers, the board, the division, and the
3073	providers; the means by which participants may access account
3074	information, direct investment of contributions, make changes to
3075	their accounts, transfer moneys between available investment
3076	vehicles, and transfer moneys between investment products; and
3077	any fees that apply to such activities.
3078	f. Any other factor deemed necessary by the Trustees of
3079	the State Board of Administration.
3080	g. The recommendations of the Public Employee Optional
3081	Retirement Program Advisory Committee established in subsection
3082	(12).
3083	2. In evaluating and selecting an educational provider,
3084	the board shall establish criteria under which it shall consider
3085	the relative capabilities and qualifications of each proposed
3086	educational provider. In developing such criteria, the board
3087	shall consider:
3088	a. Demonstrated experience in providing educational
3089	services to public or private sector retirement systems.
3090	b. Ability and willingness to coordinate its activities
3091	with the Florida Retirement System employers, the board, and the
3092	division, and to supply to such employers, the board, and the
3093	division the information and data they require, including, but
3094	not limited to, reports on educational contacts.
3095	c. The cost-effectiveness and levels of the educational
3096	services provided.
3097	d. Ability to provide educational services via different
3098	media, including, but not limited to, the Internet, personal
3099	contact, seminars, brochures, and newsletters.
3100	e. Any other factor deemed necessary by the Trustees of
3101	the State Board of Administration.
3102	f. The recommendations of the Public Employee Optional
3103	Retirement Program Advisory Committee established in subsection
3104	(12).
3105	3. The establishment of the criteria shall be solely
3106	within the discretion of the board.
3107	(e)1.The board may contract with any consultant for
3108	professional services, including legal, consulting, accounting,
3109	and actuarial services, deemed necessary to implement and
3110	administer the optional program by the Trustees of the State
3111	Board of Administration. The board may enter into a contract
3112	with one or more vendors to provide low-cost investment advice
3113	to participants, supplemental to education provided by the
3114	third-party administrator. All fees under any such contract
3115	shall be paid by those participants who choose to use the
3116	services of the vendor.
3117	2. The department may contract with consultants for
3118	professional services, including legal, consulting, accounting,
3119	and actuarial services, deemed necessary to implement and
3120	administer the optional program in coordination with the defined
3121	benefit program of the Florida Retirement System. The
3122	department, in coordination with the board, may enter into a
3123	contract with the third-party administrator in order to
3124	coordinate services common to the various programs within the
3125	Florida Retirement System.
3126	(9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.--
3127	(c) In evaluating and selecting approved providers and
3128	products, the board shall establish criteria under which it
3129	shall consider the relative capabilities and qualifications of
3130	each proposed provider company and product. In developing such
3131	criteria, the board shall consider the following to the extent
3132	such factors may be applied in connection with investment
3133	products, services, or providers:
3134	1. Experience in the United States providing retirement
3135	products and related financial services under defined
3136	contribution retirement plans.
3137	2. Financial strength and stability which shall be
3138	evidenced by the highest ratings assigned by nationally
3139	recognized rating services when comparing proposed providers
3140	that are so rated.
3141	3. Intrastate and interstate portability of the product
3142	offered, including early withdrawal options.
3143	4. Compliance with the Internal Revenue Code.
3144	5. The cost-effectiveness of the product provided and the
3145	levels of service supporting the product relative to its
3146	benefits and its characteristics, including, without limitation,
3147	the level of risk borne by the provider.
3148	6. The provider company's ability and willingness to
3149	coordinate its activities with Florida Retirement System
3150	employers, the divisiondepartment, and the board, and to
3151	supply to such employers, the divisiondepartment, and the board
3152	the information and data they require.
3153	7. The methods available to participants to interact with
3154	the provider company; the means by which participants may access
3155	account information, direct investment of contributions, make
3156	changes to their accounts, transfer moneys between available
3157	investment vehicles, and transfer moneys between provider
3158	companies; and any fees that apply to such activities.
3159	8. The provider company's policies with respect to the
3160	transfer of individual account balances, contributions, and
3161	earnings thereon, both internally among investment products
3162	offered by the provider company and externally between approved
3163	providers, as well as any fees, charges, reductions, or
3164	penalties that may be applied.
3165	9. An evaluation of specific investment products, taking
3166	into account each product's experience in meeting its investment
3167	return objectives net of all related fees, expenses, and
3168	charges, including, but not limited to, investment management
3169	fees, loads, distribution and marketing fees, custody fees,
3170	recordkeeping fees, education fees, annuity expenses, and
3171	consulting fees.
3172	10. Organizational factors, including, but not limited to,
3173	financial solvency, organizational depth, and experience in
3174	providing institutional and retail investment services.
3175	(10) EDUCATION COMPONENT.--
3176	(a) The board, in coordination with the department,shall
3177	provide for an education component for system members in a
3178	manner consistent with the provisions of this section. The
3179	education component must be available to eligible employees at
3180	least 90 days prior to the beginning date of the election period
3181	for the employees of the respective types of employers.
3182	(c) The board, in coordination with the department,shall
3183	provide for an initial and ongoing transfer education component
3184	to provide system members with information necessary to make
3185	informed plan choice decisions. The transfer education component
3186	must include, but is not limited to, information on:
3187	1. The amount of money available to a member to transfer
3188	to the defined contribution program.
3189	2. The features of and differences between the defined
3190	benefit program and the defined contribution program, both
3191	generally and specifically, as those differences may affect the
3192	member.
3193	3. The expected benefit available if the member were to
3194	retire under each of the retirement programs, based on
3195	appropriate alternative sets of assumptions.
3196	4. The rate of return from investments in the defined
3197	contribution program and the period of time over which such rate
3198	of return must be achieved to equal or exceed the expected
3199	monthly benefit payable to the member under the defined benefit
3200	program.
3201	5. The historical rates of return for the investment
3202	alternatives available in the defined contribution programs.
3203	6. The benefits and historical rates of return on
3204	investments available in a typical deferred compensation plan or
3205	a typical plan under s. 403(b) of the Internal Revenue Code for
3206	which the employee may be eligible.
3207	7. The program choices available to employees of the State
3208	University System and the comparative benefits of each available
3209	program, if applicable.
3210	8. Payout options available in each of the retirement
3211	programs.
3212	(f) The board and the departmentshall also establish a
3213	communication component to provide program information to
3214	participating employers and the employers' personnel and payroll
3215	officers and to explain their respective responsibilities in
3216	conjunction with the retirement programs.
3217	(11) PARTICIPANT INFORMATION REQUIREMENTS.--The board
3218	shall ensure that each participant is provided a quarterly
3219	statement that accounts for the contributions made on behalf of
3220	such participant; the interest and investment earnings thereon;
3221	and any fees, penalties, or other deductions that apply thereto.
3222	At a minimum, such statements must:
3223	(a) Indicate the participant's investment options.
3224	(b) State the market value of the account at the close of
3225	the current quarter and previous quarter.
3226	(c) Show account gains and losses for the period and
3227	changes in account accumulation unit values for the period.
3228	(d) Itemize account contributions for the quarter.
3229	(e) Indicate any account changes due to adjustment of
3230	contribution levels, reallocation of contributions, balance
3231	transfers, or withdrawals.
3232	(f) Set forth any fees, charges, penalties, and deductions
3233	that apply to the account.
3234	(g) Indicate the amount of the account in which the
3235	participant is fully vested and the amount of the account in
3236	which the participant is not vested.
3237	(h) Indicate each investment product's performance
3238	relative to an appropriate market benchmark.
3239
3240	The third-party administrator shall provide quarterly and annual
3241	summary reports to the board and any other reports requested by
3242	the department orthe board. In any solicitation or offer of
3243	coverage under an optional retirement program, a provider
3244	company shall be governed by the contract readability provisions
3245	of s. 627.4145, notwithstanding s. 627.4145(6)(c). In addition,
3246	all descriptive materials must be prepared under the assumption
3247	that the participant is an unsophisticated investor. Provider
3248	companies must maintain an internal system of quality assurance,
3249	have proven functional systems that are date-calculation
3250	compliant, and be subject to a due-diligence inquiry that proves
3251	their capacity and fitness to undertake service
3252	responsibilities.
3253	(12) ADVISORY COMMITTEES TO PROVIDE ADVICE AND
3254	ASSISTANCE.--The Investment Advisory Council and the Public
3255	Employee Optional Retirement Program Advisory Committee shall
3256	assist the board in implementing and administering the Public
3257	Employee Optional Retirement Program.
3258	(b)1. The Public Employee Optional Retirement Program
3259	Advisory Committee shall be composed of seven members. The
3260	President of the Senate shall appoint two members, the Speaker
3261	of the House of Representatives shall appoint two members, the
3262	Governor shall appoint one member, the Treasurer shall appoint
3263	one member, and the Comptroller shall appoint one member. The
3264	members of the advisory committee shall elect a member as chair.
3265	The appointments shall be made by September 1, 2000, and the
3266	committee shall meet to organize by October 1, 2000. The initial
3267	appointments shall be for a term of 24 months. Each appointing
3268	authority shall fill any vacancy occurring among its appointees
3269	for the remainder of the original term.
3270	2. The advisory committee shall make recommendations on
3271	the selection of the third-party administrator, the education
3272	providers, and the investment products and providers. The
3273	committee's recommendations on the third-party administrator
3274	must be forwarded to the Trustees of the State Board of
3275	Administration by January 1, 2001. The recommendations on the
3276	education providers must be forwarded to the trustees by April
3277	1, 2001.
3278	3. The advisory committee's recommendations and activities
3279	shall be guided by the best interests of the employees,
3280	considering the interests of employers, and the intent of the
3281	Legislature in establishing the Public Employee Optional
3282	Retirement Program.
3283	4. The staff of the state board and the departmentshall
3284	assist the advisory committee.
3285	(19) PARTICIPANT RECORDS.--All personal identifying
3286	information regarding a participant in the Public Employee
3287	Optional Retirement Program contained in Florida Retirement
3288	System records held by the State Board of Administration or the
3289	Department of Management Services, or itstheiragents,
3290	employees, or contractors is exempt from the provisions of s.
3291	119.07(1) and s. 24(a), Art. I of the State Constitution. The
3292	department orboard may use such exempt information as necessary
3293	in any legal or administrative proceeding. This subsection is
3294	subject to the Open Government Sunset Review Act of 1995 in
3295	accordance with s. 119.15, and shall stand repealed October 2,
3296	2007, unless reviewed and saved from repeal through reenactment
3297	by the Legislature.
3298	Section 41. Section 121.4503, Florida Statutes, is amended
3299	to read:
3300	121.4503 Florida Retirement System Contributions Clearing
3301	Trust Fund.--
3302	(1) The Florida Retirement System Contributions Clearing
3303	Trust Fund is created as a clearing fund for disbursing employer
3304	contributions to the component plans of the Florida Retirement
3305	System and shall be administered by the State Board of
3306	AdministrationDepartment of Management Services. Funds shall be
3307	credited to the trust fund as provided in this chapter and shall
3308	be held in trust for the contributing employers until such time
3309	as the assets are transferred by the boarddepartmentto the
3310	Florida Retirement System Trust Fund, the Public Employee
3311	Optional Retirement Program Trust Fund, or other trust funds as
3312	authorized by law, to be used for the purposes of this chapter.
3313	The trust fund is exempt from the service charges imposed by s.
3314	215.20.
3315	(2) The Florida Retirement System Contributions Clearing
3316	Trust Fund is a clearing trust fund of the State Board of
3317	AdministrationDepartment of Management Servicespursuant to s.
3318	19(f), Art. III of the State Constitution, and is not subject to
3319	termination.
3320	(3) The State Board of AdministrationDepartment of
3321	Management Servicesmay adopt rules governing the receipt and
3322	disbursement of amounts received by the Florida Retirement
3323	System Contributions Clearing Trust Fund from employers
3324	contributing to the component plans of the Florida Retirement
3325	System.
3326	Section 42. Section 121.591, Florida Statutes, is amended
3327	to read:
3328	121.591 Benefits payable under the Public Employee
3329	Optional Retirement Program of the Florida Retirement
3330	System.--Benefits may not be paid under this section unless the
3331	member has terminated employment as provided in s.
3332	121.021(39)(a) or is deceased and a proper application has been
3333	filed in the manner prescribed by the state board or the
3334	divisiondepartment. The state board or divisiondepartment, as
3335	appropriate, may cancel an application for retirement benefits
3336	when the member or beneficiary fails to timely provide the
3337	information and documents required by this chapter and the rules
3338	of the state board and divisiondepartment. In accordance with
3339	their respective responsibilities as provided herein, the State
3340	Board of Administration and the divisionDepartment of
3341	Management Servicesshall adopt rules establishing procedures
3342	for application for retirement benefits and for the cancellation
3343	of such application when the required information or documents
3344	are not received.
3345	(1) NORMAL BENEFITS.--Under the Public Employee Optional
3346	Retirement Program:
3347	(a) Benefits in the form of vested accumulations as
3348	described in s. 121.4501(6) shall be payable under this
3349	subsection in accordance with the following terms and
3350	conditions:
3351	1. To the extent vested, benefits shall be payable only to
3352	a participant.
3353	2. Benefits shall be paid by the third-party administrator
3354	or designated approved providers in accordance with the law, the
3355	contracts, and any applicable board rule or policy.
3356	3. To receive benefits under this subsection, the
3357	participant must be terminated from all employment with all
3358	Florida Retirement System employers, as provided in s.
3359	121.021(39).
3360	(b) If a participant elects to receive his or her benefits
3361	upon termination of employment, the participant must submit a
3362	written application to the third-party administrator indicating
3363	his or her preferred distribution date and selecting an
3364	authorized method of distribution as provided in paragraph (c).
3365	The participant may defer receipt of benefits until he or she
3366	chooses to make such application, subject to federal
3367	requirements.
3368	(c) Upon receipt by the third-party administrator of a
3369	properly executed application for distribution of benefits, the
3370	total accumulated benefit shall be payable to the participant,
3371	as:
3372	1. A lump-sum distribution to the participant;
3373	2. A lump-sum direct rollover distribution whereby all
3374	accrued benefits, plus interest and investment earnings, are
3375	paid from the participant's account directly to the custodian of
3376	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
3377	the Internal Revenue Code, on behalf of the participant; or
3378	3. Periodic distributions, as authorized by the state
3379	board.
3380	(2) DISABILITY RETIREMENT BENEFITS.--Benefits provided
3381	under this subsection are payable in lieu of the benefits which
3382	would otherwise be payable under the provisions of subsection
3383	(1). Such benefits shall be funded entirely from employer
3384	contributions made under s. 121.571, transferred participant
3385	funds accumulated pursuant to paragraph (a), and interest and
3386	earnings thereon. Pursuant thereto:
3387	(a) Transfer of funds.--To qualify to receive monthly
3388	disability benefits under this subsection:
3389	1. All moneys accumulated in the participant's Public
3390	Employee Optional Retirement Program accounts, including vested
3391	and nonvested accumulations as described in s. 121.4501(6),
3392	shall be transferred from such individual accounts to the
3393	Division of Retirement for deposit in the disability account of
3394	the Florida Retirement System Trust Fund. Such moneys shall be
3395	separately accounted for. Earnings shall be credited on an
3396	annual basis for amounts held in the disability accounts of the
3397	Florida Retirement System Trust Fund based on actual earnings of
3398	the Florida Retirement System Trust Fund.
3399	2. If the participant has retained retirement credit he or
3400	she had earned under the defined benefit program of the Florida
3401	Retirement System as provided in s. 121.4501(3)(b), a sum
3402	representing the actuarial present value of such credit within
3403	the Florida Retirement System Trust Fund shall be reassigned by
3404	the Division of Retirement from the defined benefit program to
3405	the disability program as implemented under this subsection and
3406	shall be deposited in the disability account of the Florida
3407	Retirement System Trust Fund. Such moneys shall be separately
3408	accounted for.
3409	(b) Disability retirement; entitlement.--
3410	1. A participant of the Public Employee Optional
3411	Retirement Program who becomes totally and permanently disabled,
3412	as defined in s. 121.091(4)(b), after completing 8 years of
3413	creditable service, or a participant who becomes totally and
3414	permanently disabled in the line of duty regardless of his or
3415	her length of service, shall be entitled to a monthly disability
3416	benefit as provided herein.
3417	2. In order for service to apply toward the 8 years of
3418	service required to vest for regular disability benefits, or
3419	toward the creditable service used in calculating a service-
3420	based benefit as provided for under paragraph (g), the service
3421	must be creditable service as described below:
3422	a. The participant's period of service under the Public
3423	Employee Optional Retirement Program will be considered
3424	creditable service, except as provided in subparagraph d.
3425	b. If the participant has elected to retain credit for his
3426	or her service under the defined benefit program of the Florida
3427	Retirement System as provided under s. 121.4501(3)(b), all such
3428	service will be considered creditable service.
3429	c. If the participant has elected to transfer to his or
3430	her participant accounts a sum representing the present value of
3431	his or her retirement credit under the defined benefit program
3432	as provided under s. 121.4501(3)(c), the period of service under
3433	the defined benefit program represented in the present value
3434	amounts transferred will be considered creditable service for
3435	purposes of vesting for disability benefits, except as provided
3436	in subparagraph d.
3437	d. Whenever a participant has terminated employment and
3438	has taken distribution of his or her funds as provided in
3439	subsection (1), all creditable service represented by such
3440	distributed funds is forfeited for purposes of this subsection.
3441	(c) Disability retirement effective date.--The effective
3442	retirement date for a participant who applies and is approved
3443	for disability retirement shall be established as provided under
3444	s. 121.091(4)(a)2. and 3.
3445	(d) Total and permanent disability.--A participant shall
3446	be considered totally and permanently disabled if, in the
3447	opinion of the division, he or she is prevented, by reason of a
3448	medically determinable physical or mental impairment, from
3449	rendering useful and efficient service as an officer or
3450	employee.
3451	(e) Proof of disability.--The division, before approving
3452	payment of any disability retirement benefit, shall require
3453	proof that the participant is totally and permanently disabled
3454	in the same manner as provided for members of the defined
3455	benefit program of the Florida Retirement System under s.
3456	121.091(4)(c).
3457	(f) Disability retirement benefit.--Upon the disability
3458	retirement of a participant under this subsection, the
3459	participant shall receive a monthly benefit that shall begin to
3460	accrue on the first day of the month of disability retirement,
3461	as approved by the division, and shall be payable on the last
3462	day of that month and each month thereafter during his or her
3463	lifetime and continued disability. All disability benefits
3464	payable to such member shall be paid out of the disability
3465	account of the Florida Retirement System Trust Fund established
3466	under this subsection.
3467	(g) Computation of disability retirement benefit.--The
3468	amount of each monthly payment shall be calculated in the same
3469	manner as provided for members of the defined benefit program of
3470	the Florida Retirement System under s. 121.091(4)(f). For such
3471	purpose, creditable service under both the defined benefit
3472	program and the Public Employee Optional Retirement Program of
3473	the Florida Retirement System shall be applicable as provided
3474	under paragraph (b).
3475	(h) Reapplication.--A participant whose initial
3476	application for disability retirement has been denied may
3477	reapply for disability benefits in the same manner, and under
3478	the same conditions, as provided for members of the defined
3479	benefit program of the Florida Retirement System under s.
3480	121.091(4)(g).
3481	(i) Membership.--Upon approval of an application for
3482	disability benefits under this subsection, the applicant shall
3483	be transferred to the defined benefit program of the Florida
3484	Retirement System, effective upon his or her disability
3485	retirement effective date.
3486	(j) Option to cancel.--Any participant whose application
3487	for disability benefits is approved may cancel his or her
3488	application for disability benefits, provided that the
3489	cancellation request is received by the division before a
3490	disability retirement warrant has been deposited, cashed, or
3491	received by direct deposit. Upon such cancellation:
3492	1. The participant's transfer to the defined benefit
3493	program under paragraph (i) shall be nullified;
3494	2. The participant shall be retroactively reinstated in
3495	the Public Employee Optional Retirement Program without hiatus;
3496	3. All funds transferred to the Florida Retirement System
3497	Trust Fund under paragraph (a) shall be returned to the
3498	participant accounts from which such funds were drawn; and
3499	4. The participant may elect to receive the benefit
3500	payable under the provisions of subsection (1) in lieu of
3501	disability benefits as provided under this subsection.
3502	(k) Recovery from disability.--
3503	1. The division may require periodic reexaminations at the
3504	expense of the disability program account of the Florida
3505	Retirement System Trust Fund. Except as otherwise provided in
3506	subparagraph 2., the requirements, procedures, and restrictions
3507	relating to the conduct and review of such reexaminations,
3508	discontinuation or termination of benefits, reentry into
3509	employment, disability retirement after reentry into covered
3510	employment, and all other matters relating to recovery from
3511	disability shall be the same as are set forth under s.
3512	121.091(4)(h).
3513	2. Upon recovery from disability, any recipient of
3514	disability retirement benefits under this subsection shall be a
3515	compulsory member of the Public Employee Optional Retirement
3516	Program of the Florida Retirement System. The net difference
3517	between the recipient's original account balance transferred to
3518	the Florida Retirement System Trust Fund, including earnings,
3519	under paragraph (a) and total disability benefits paid to such
3520	recipient, if any, shall be determined as provided in sub-
3521	subparagraph a.
3522	a. An amount equal to the total benefits paid shall be
3523	subtracted from that portion of the transferred account balance
3524	consisting of vested accumulations as described under s.
3525	121.4501(6), if any, and an amount equal to the remainder of
3526	benefit amounts paid, if any, shall then be subtracted from any
3527	remaining portion consisting of nonvested accumulations as
3528	described under s. 121.4501(6).
3529	b. Amounts subtracted under sub-subparagraph a. shall be
3530	retained within the disability account of the Florida Retirement
3531	System Trust Fund. Any remaining account balance shall be
3532	transferred to the third-party administrator for disposition as
3533	provided under sub-subparagraph c. or sub-subparagraph d., as
3534	appropriate.
3535	c. If the recipient returns to covered employment,
3536	transferred amounts shall be deposited in individual accounts
3537	under the Public Employee Optional Retirement Program, as
3538	directed by the participant. Vested and nonvested amounts shall
3539	be separately accounted for as provided in s. 121.4501(6).
3540	d. If the recipient fails to return to covered employment
3541	upon recovery from disability:
3542	(I) Any remaining vested amount shall be deposited in
3543	individual accounts under the Public Employee Optional
3544	Retirement Program, as directed by the participant, and shall be
3545	payable as provided in subsection (1).
3546	(II) Any remaining nonvested amount shall be held in a
3547	suspense account and shall be forfeitable after 5 years as
3548	provided in s. 121.4501(6).
3549	3. If present value was reassigned from the defined
3550	benefit program to the disability program of the Florida
3551	Retirement System as provided under subparagraph (a)2., the full
3552	present value amount shall be returned to the defined benefit
3553	account within the Florida Retirement System Trust Fund and the
3554	affected individual's associated retirement credit under the
3555	defined benefit program shall be reinstated in full. Any benefit
3556	based upon such credit shall be calculated as provided in s.
3557	121.091(4)(h)1.
3558	(l) Nonadmissible causes of disability.--A participant
3559	shall not be entitled to receive a disability retirement benefit
3560	if the disability results from any injury or disease sustained
3561	or inflicted as described in s. 121.091(4)(i).
3562	(m) Disability retirement of justice or judge by order of
3563	Supreme Court.--
3564	1. If a participant is a justice of the Supreme Court,
3565	judge of a district court of appeal, circuit judge, or judge of
3566	a county court who has served for 6 years or more as an elected
3567	constitutional judicial officer, including service as a judicial
3568	officer in any court abolished pursuant to Art. V of the State
3569	Constitution, and who is retired for disability by order of the
3570	Supreme Court upon recommendation of the Judicial Qualifications
3571	Commission pursuant to the provisions of Art. V of the State
3572	Constitution, the participant's Option 1 monthly disability
3573	benefit amount as provided in s. 121.091(6)(a)1. shall be two-
3574	thirds of his or her monthly compensation as of the
3575	participant's disability retirement date. Such a participant
3576	may alternatively elect to receive an actuarially adjusted
3577	disability retirement benefit under any other option as provided
3578	in s. 121.091(6)(a), or to receive the normal benefit payable
3579	under the Public Employee Optional Retirement Program as set
3580	forth in subsection (1).
3581	2. If any justice or judge who is a participant of the
3582	Public Employee Optional Retirement Program of the Florida
3583	Retirement System is retired for disability by order of the
3584	Supreme Court upon recommendation of the Judicial Qualifications
3585	Commission pursuant to the provisions of Art. V of the State
3586	Constitution and elects to receive a monthly disability benefit
3587	under the provisions of this paragraph:
3588	a. Any present value amount that was transferred to his or
3589	her program account and all employer contributions made to such
3590	account on his or her behalf, plus interest and earnings
3591	thereon, shall be transferred to and deposited in the disability
3592	account of the Florida Retirement System Trust Fund; and
3593	b. The monthly benefits payable under this paragraph for
3594	any affected justice or judge retired from the Florida
3595	Retirement System pursuant to Art. V of the State Constitution
3596	shall be paid from the disability account of the Florida
3597	Retirement System Trust Fund.
3598	(n) Death of retiree or beneficiary.--Upon the death of a
3599	disabled retiree or beneficiary thereof who is receiving monthly
3600	benefits under this subsection, the monthly benefits shall be
3601	paid through the last day of the month of death and shall
3602	terminate, or be adjusted, if applicable, as of that date in
3603	accordance with the optional form of benefit selected at the
3604	time of retirement. The deceased disabled retiree's beneficiary
3605	shall also receive the amount of the participant's remaining
3606	account balance, if any, in the Florida Retirement System Trust
3607	Fund. The Division of RetirementDepartment of Management
3608	Servicesmay adopt rules necessary to administer this paragraph.
3609	(3) DEATH BENEFITS.--Under the Public Employee Optional
3610	Retirement Program:
3611	(a) Survivor benefits shall be payable in accordance with
3612	the following terms and conditions:
3613	1. To the extent vested, benefits shall be payable only to
3614	a participant's beneficiary or beneficiaries as designated by
3615	the participant. If a participant designates a primary
3616	beneficiary other than the participant's spouse, the
3617	participant's spouse shall be notified of the designation. This
3618	requirement shall not apply to the designation of one or more
3619	contingent beneficiaries to receive any benefits remaining upon
3620	the death of the primary beneficiary or beneficiaries.
3621	2. Benefits shall be paid by the third-party administrator
3622	or designated approved providers in accordance with the law, the
3623	contracts, and any applicable board rule or policy.
3624	3. To receive benefits under this subsection, the
3625	participant must be deceased.
3626	(b) In the event of a participant's death, all vested
3627	accumulations as described in s. 121.4501(6), less withholding
3628	taxes remitted to the Internal Revenue Service, shall be
3629	distributed, as provided in paragraph (c), to the participant's
3630	designated beneficiary or beneficiaries, or to the participant's
3631	estate, as if the participant retired on the date of death. No
3632	other death benefits shall be available for survivors of
3633	participants under the Public Employee Optional Retirement
3634	Program, except for such benefits, or coverage for such
3635	benefits, as are otherwise provided by law or are separately
3636	afforded by the employer, at the employer's discretion.
3637	(c) Upon receipt by the third-party administrator of a
3638	properly executed application for distribution of benefits, the
3639	total accumulated benefit shall be payable by the third-party
3640	administrator to the participant's surviving beneficiary or
3641	beneficiaries, as:
3642	1. A lump-sum distribution payable to the beneficiary or
3643	beneficiaries, or to the deceased participant's estate;
3644	2. An eligible rollover distribution on behalf of the
3645	surviving spouse of a deceased participant, whereby all accrued
3646	benefits, plus interest and investment earnings, are paid from
3647	the deceased participant's account directly to the custodian of
3648	an eligible retirement plan, as described in s. 402(c)(8)(B) of
3649	the Internal Revenue Code, on behalf of the surviving spouse; or
3650	3. A partial lump-sum payment whereby a portion of the
3651	accrued benefit is paid to the deceased participant's surviving
3652	spouse or other designated beneficiaries, less withholding taxes
3653	remitted to the Internal Revenue Service, and the remaining
3654	amount is transferred directly to the custodian of an eligible
3655	retirement plan, as described in s. 402(c)(8)(B) of the Internal
3656	Revenue Code, on behalf of the surviving spouse. The proportions
3657	must be specified by the participant or the surviving
3658	beneficiary.
3659
3660	This paragraph does not abrogate other applicable provisions of
3661	state or federal law providing for payment of death benefits.
3662	(4) LIMITATION ON LEGAL PROCESS.--The benefits payable to
3663	any person under the Public Employee Optional Retirement
3664	Program, and any contributions accumulated under such program,
3665	are not subject to assignment, execution, attachment, or any
3666	legal process, except for qualified domestic relations orders by
3667	a court of competent jurisdiction, income deduction orders as
3668	provided in s. 61.1301, and federal income tax levies.
3669	Section 43. Section 121.5911, Florida Statutes, is amended
3670	to read:
3671	121.5911 Disability retirement program; qualified status;
3672	rulemaking authority.--It is the intent of the Legislature that
3673	the disability retirement program for participants of the Public
3674	Employee Optional Retirement Program as created in this act must
3675	meet all applicable requirements of federal law for a qualified
3676	plan. The Department of Management Services or the Division of
3677	Retirementshall seek a private letter ruling from the Internal
3678	Revenue Service on the disability retirement program for
3679	participants of the Public Employee Optional Retirement Program.
3680	Consistent with the private letter ruling, the division
3681	Department of Management Servicesshall adopt any necessary
3682	rules required to maintain the qualified status of the
3683	disability retirement program and the Florida Retirement System
3684	defined benefit plan.
3685	Section 44. Subsection (1) of section 121.72, Florida
3686	Statutes, is amended to read:
3687	121.72 Allocations to optional retirement program
3688	participant accounts; percentage amounts.--
3689	(1) The allocations established in subsection (4) shall
3690	fund retirement benefits under the optional retirement program
3691	and shall be transferred monthly by the State Board of
3692	AdministrationDivision of Retirementfrom the Florida
3693	Retirement System Contributions Clearing Trust Fund to the
3694	third-party administrator for deposit in each participating
3695	employee's individual account based on the membership class of
3696	the participant.
3697	Section 45. Subsection (1) of section 121.73, Florida
3698	Statutes, is amended to read:
3699	121.73 Allocations for optional retirement program
3700	participant disability coverage; percentage amounts.--
3701	(1) The allocations established in subsection (3) shall be
3702	used to provide disability coverage for participants in the
3703	optional retirement program and shall be transferred monthly by
3704	the State Board of AdministrationDivision of Retirementfrom
3705	the Florida Retirement System Contributions Clearing Trust Fund
3706	to the disability account of the Florida Retirement System Trust
3707	Fund.
3708	Section 46. Section 121.74, Florida Statutes, is amended
3709	to read:
3710	121.74 Administrative and educational expenses.--Effective
3711	July 1, 2002, in addition to contributions required under s.
3712	121.71, employers participating in the Florida Retirement System
3713	shall contribute an amount equal to 0.15 percent of the payroll
3714	reported for each class or subclass of Florida Retirement System
3715	membership, which amount shall be transferred by the State Board
3716	of AdministrationDivision of Retirementfrom the Florida
3717	Retirement System Contributions Clearing Trust Fund to the
3718	board'sState Board of Administration'sAdministrative Trust
3719	Fund to offset the costs of administering the optional
3720	retirement program and the costs of providing educational
3721	services to participants in the defined benefit program and the
3722	optional retirement program. Approval of the Trustees of the
3723	State Board of Administration is required prior to the
3724	expenditure of these funds. Payments for third-party
3725	administrative or educational expenses shall be made only
3726	pursuant to the terms of the approved contracts for such
3727	services.
3728	Section 47. Subsection (6) of section 175.032, Florida
3729	Statutes, is amended to read:
3730	175.032 Definitions.--For any municipality, special fire
3731	control district, chapter plan, local law municipality, local
3732	law special fire control district, or local law plan under this
3733	chapter, the following words and phrases have the following
3734	meanings:
3735	(6) "Division" means the Division of Retirement of the
3736	State Board of AdministrationDepartment of Management Services.
3737	Section 48. Section 175.1215, Florida Statutes, is amended
3738	to read:
3739	175.1215 Police and Firefighters' Premium Tax Trust
3740	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3741	created, to be administered by the Division of Retirement of the
3742	Department of Management Services. Funds credited to the trust
3743	fund, as provided in chapter 95-250, Laws of Florida, or similar
3744	legislation, shall be expended for the purposes set forth in
3745	that legislation.
3746	Section 49. Subsection (1) of section 175.341, Florida
3747	Statutes, is amended to read:
3748	175.341 Duties of Division of Retirement; rulemaking
3749	authority; investments by State Board of Administration.--
3750	(1) The division shall be responsible for the daily
3751	oversight and monitoring for actuarial soundness of the
3752	firefighters' pension plans, whether chapter or local law plans,
3753	established under this chapter, for receiving and holding the
3754	premium tax moneys collected under this chapter, and, upon
3755	determining compliance with the provisions of this chapter, for
3756	disbursing those moneys to the firefighters' pension plans. The
3757	funds necessary to pay expenses for such administration are
3758	herebyshall be annuallyappropriated from the interest and
3759	investment income earned on moneys deposited in the trust fund.
3760	Section 50. Subsection (7) of section 185.02, Florida
3761	Statutes, is amended to read:
3762	185.02 Definitions.--For any municipality, chapter plan,
3763	local law municipality, or local law plan under this chapter,
3764	the following words and phrases as used in this chapter shall
3765	have the following meanings, unless a different meaning is
3766	plainly required by the context:
3767	(7) "Division" means the Division of Retirement of the
3768	State Board of AdministrationDepartment of Management Services.
3769	Section 51. Section 185.105, Florida Statutes, is amended
3770	to read:
3771	185.105 Police and Firefighters' Premium Tax Trust
3772	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3773	created, to be administered by the Division of Retirement of the
3774	Department of Management Services. Funds credited to the trust
3775	fund, as provided in chapter 95-250, Laws of Florida, or similar
3776	legislation, shall be expended for the purposes set forth in
3777	that legislation.
3778	Section 52. Subsection (1) of section 185.23, Florida
3779	Statutes, is amended to read:
3780	185.23 Duties of Division of Retirement; rulemaking
3781	authority; investments by State Board of Administration.--
3782	(1) The division shall be responsible for the daily
3783	oversight and monitoring for actuarial soundness of the
3784	municipal police officers' retirement plans, whether chapter or
3785	local law plans, established under this chapter, for receiving
3786	and holding the premium tax moneys collected under this chapter,
3787	and, upon determining compliance with the provisions of this
3788	chapter, for disbursing those moneys to the municipal police
3789	officers' retirement plans. The funds to pay the expenses for
3790	such administration areshall be annuallyappropriated from the
3791	interest and investment income earned on moneys deposited in the
3792	trust fund.
3793	Section 53. Subsection (3) of section 215.28, Florida
3794	Statutes, is amended to read:
3795	215.28 United States securities, purchase by state and
3796	county officers and employees; deductions from salary.--
3797	(3) All deductions so made by any such disbursing
3798	authority shall be deposited in a trust account separate and
3799	apart from the funds of the state, county, or subordinate
3800	agency. Such account will be subject to withdrawal only for the
3801	purchase of United States securities on behalf of officers and
3802	employees, or for refunds to such persons in accordance with the
3803	provisions of this law. Whenever the sum of $18.75 or the
3804	purchase price of the security requested to be purchased is
3805	accumulated from deductions so made from the salaries or wages
3806	of an officer or employee, such disbursing agent shall arrange
3807	the purchase of the bond or security applied for and have it
3808	registered in the name or names requested in the deduction
3809	authorization. Securities so purchased will be delivered in such
3810	manner as may be convenient for the issuing agent and the
3811	purchaser. Any interest earned on moneys in such account while
3812	awaiting the accumulation of the purchase price of the security
3813	shall be transferred to the Florida Retirement System Trust Fund
3814	as reimbursement for administrative costs incurred by the
3815	Division of Retirement of the State Board of Administration
3816	Department of Management Servicesunder this section.
3817	Section 54. Subsection (7) of section 215.44, Florida
3818	Statutes, is amended to read:
3819	215.44 Board of Administration; powers and duties in
3820	relation to investment of trust funds.--
3821	(7) Investment and debt purchasing procedures and
3822	contracts of funds held in trust by the State Board of
3823	Administration, whether directly or incidentally related to the
3824	investment or debt transactions, and purchases of commodities or
3825	services related to the administration of pension benefits,are
3826	exempt from the provisions of chapter 287.
3827	Section 55. Subsection (3) of section 215.50, Florida
3828	Statutes, is amended to read:
3829	215.50 Custody of securities purchased; income.--
3830	(3) The Treasurer, as custodian of securities owned by the
3831	Florida Retirement System Trust Fund and the Florida Survivor
3832	Benefit Trust Fund, shall collect the interest, dividends,
3833	prepayments, maturities, proceeds from sales, and other income
3834	accruing from such assets. As such income is collected by the
3835	Treasurer, it shall be deposited directly into a commercial bank
3836	to the credit of the State Board of Administration. Such bank
3837	accounts as may be required for this purpose shall offer
3838	satisfactory collateral security as provided by chapter 280. In
3839	the event funds so deposited according to the provisions of this
3840	section are required for the purpose of paying benefits or other
3841	operational needs, the State Board of Administration shall remit
3842	to the Florida Retirement System Trust Fund in the State
3843	Treasury such amounts as are requiredmay be requested by the
3844	Department of Management Services.
3845	Section 56. Section 215.52, Florida Statutes, is amended
3846	to read:
3847	215.52 Rules and regulations.--The board may adoptshall
3848	have the power and authority to make reasonable rules and
3849	regulations necessary to implement general law conferring powers
3850	and duties upon itcarry out the provisions of ss. 215.44-
3851	215.53.
3852	Section 57. Subsection (18) of section 238.01, Florida
3853	Statutes, is amended to read:
3854	238.01 Definitions.--The following words and phrases as
3855	used in this chapter shall have the following meanings unless a
3856	different meaning is plainly required by the context:
3857	(18) "Actuarial equivalent" means a benefit of equal value
3858	when computed at regular interest upon the basis of the
3859	mortality tables adopted by the departmentdivision.
3860	Section 58. Subsection (5) of section 238.05, Florida
3861	Statutes, is amended to read:
3862	238.05 Membership.--
3863	(5) Any person may, at his or her option,choose not to
3864	become a member of the Teachers' Retirement System when:
3865	(a) An election is made to the departmentdivisionnot to
3866	become a member within 60 days afterofappointment to a
3867	teaching position as defined in this chapter or within 60 days
3868	from the date this law becomes effective.
3869	(b) Any election hereunder will not affect any rights
3870	accrued in the retirement system to which the person belongs.
3871	Section 59. Subsections (1), (3), (4), and (6) of section
3872	238.06, Florida Statutes, are amended to read:
3873	238.06 Membership application, creditable service, and
3874	time for making contributions.--
3875	(1) Under such rules and regulations as the department
3876	Division of Retirementshall adopt, each teacher upon becoming a
3877	member shall file with the departmentdivisionan application
3878	showing date of birth and such other necessary information as
3879	the departmentdivisionmay require for the proper operation of
3880	the retirement system. Until such application is filed no
3881	teacher or his or her beneficiary shall be eligible to receive
3882	any benefits under this chapter. If a member has been a teacher
3883	in Florida, he or she shall itemize on such application all
3884	service as a teacher rendered prior to the date of establishment
3885	of the retirement system, including service in a similar
3886	capacity in other states rendered by him or her prior to July 1,
3887	1939, for which he or she claims credit. Persons not eligible to
3888	membership in the retirement system as of July 1, 1939, and now
3889	eligible to membership shall file with the departmentdivision
3890	an application and shall meet with all other requirements
3891	prescribed above. All such persons shall be entitled to prior
3892	service credit for the years prior to July 1, 1939, as
3893	prescribed in subsection (4). Any person made eligible to
3894	membership in the retirement system by provisions of this law
3895	may elect:
3896	(a) To make no contributions for the school years between
3897	1939-1940 and 1952-1953, inclusive, and if he or she so elects,
3898	shall be entitled to no membership credit for those years except
3899	as otherwise provided in this chapter.
3900	(b) To make contributions with accumulated regular
3901	interest to the retirement system on or before the time of
3902	retirement of such member for such years after July 1, 1939, as
3903	he or she served as a teacher, at the prescribed rate on the
3904	basis of his or her salary for those years, and if such
3905	contributions are made, he or she shall be entitled to
3906	membership service credit for such years.
3907	(3) The departmentdivisionshall fix and determine by
3908	appropriate rules and regulations how much service in any year
3909	is the equivalent of a year of service, but in no case shall it
3910	allow any credit for a period of absence without pay of more
3911	than a month's duration nor shall it allow credit for more than
3912	1 year of service for all service in any school year.
3913	(4) Subject to the above restriction and to such other
3914	rules and regulations as the departmentdivisionshall adopt,
3915	the departmentdivisionshall verify, as soon as practicable
3916	after the filing of the application, the statement of service
3917	therein claimed and shall issue to each person who becomes a
3918	member or any person with prior teaching service in the state
3919	who becomes a member of the retirement system, a prior service
3920	certificate certifying the length of service with which he or
3921	she is credited on the basis of his or her statement of service.
3922	Such prior service credit shall include credit for service
3923	rendered prior to date of establishment as a teacher within the
3924	state or in a similar capacity outside the state but not more
3925	than 10 years of credit for service outside the state shall be
3926	included. Credit for prior service outside the state may be
3927	claimed only by a person employed as a teacher in the state
3928	prior to July 1, 1939; provided that any person who became a
3929	member of the system after July 1, 1939, but prior to July 1,
3930	1955, and remained a member for 10 years shall be entitled to
3931	receive out-of-state prior service credit for a period not
3932	exceeding 10 years; provided that any person with out-of-state
3933	service who became a member of the system after July 1, 1939,
3934	but prior to July 1, 1955, and remained a member for 10 years
3935	shall be entitled to receive membership service credit for a
3936	period of not exceeding 10 years, including credit for the
3937	period covered by service in the Armed Forces of the nation
3938	during World War II; provided such member was a public school
3939	teacher within 1 year before entering the armed services; and
3940	provided he or she resumed teaching, if such member shall, prior
3941	to retirement, make contribution to the retirement system with
3942	accumulated regular interest thereon in an amount equal to the
3943	contribution he or she would have made if such service had been
3944	rendered in the state subsequent to July 1, 1939; provided that
3945	no member who receives, or who is entitled to receive, a pension
3946	or annuity from any other state or county or municipality or
3947	other taxing district shall receive out-of-state prior service
3948	credit or membership service credit as set forth above;
3949	provided, however, that the change in this subsection shall not
3950	affect the rights of persons who have retired when this
3951	amendment to the law takes effect; provided, however, that any
3952	person who becomes a member of the system on or after July 1,
3953	1955, and who has moved from another state to Florida, and
3954	becoming employed in a category covered by the Teachers'
3955	Retirement System, must teach in the state for 5 years before
3956	being entitled to receive any out-of-state service credit. After
3957	having been employed within the state for a period of 5 years, a
3958	teacher may establish and receive credit for 1 year of out-of-
3959	state service for each additional year of service credit within
3960	the state, with a maximum of 10 years out-of-state credit
3961	allowed. In order to establish and receive this out-of-state
3962	credit, a teacher, who became a member of the system on or after
3963	July 1, 1955, but prior to October 1, 1963, must pay into the
3964	retirement system prior to retirement total contributions equal
3965	to 8 percent (plus accumulated regular interest thereon), of
3966	such out-of-state compensation as the teacher received during
3967	those years of out-of-state service for which the teacher
3968	receives out-of-state credit, provided, however, that
3969	contributions on out-of-state salary received prior to July 1,
3970	1939, will not be required of any member in this category
3971	retiring on or after July 1, 1969. In order to establish and
3972	receive this out-of-state credit, a teacher who becomes a member
3973	of the retirement system on or after October 1, 1963, must pay
3974	into the retirement system prior to retirement, total
3975	contributions which are in addition to the regular membership
3976	contributions and which, when accumulated with regular interest
3977	thereon, are equal to the actuarial equivalent at the time of
3978	retirement of the monthly benefit which becomes payable at
3979	retirement on account of out-of-state credit. In the event that
3980	such accumulated additional contributions at time of retirement
3981	are less than the actuarial equivalent at time of retirement of
3982	the monthly benefit attributable to out-of-state credit, the
3983	monthly benefit attributable to out-of-state credit shall be
3984	reduced by an amount equal to the product of:
3985	(a) The monthly benefit attributable to out-of-state
3986	credit, and
3987	(b) The ratio that such deficiency bears to the actuarial
3988	equivalent of the monthly benefit attributable to the out-of-
3989	state credit.
3990
3991	If such accumulated additional contributions are in excess of
3992	the actuarial equivalent at time of retirement of the monthly
3993	benefit attributable to out-of-state credit, such excess shall
3994	be paid in a lump sum to the member at time of retirement. No
3995	person may receive retirement benefits for less than 10 years of
3996	service credit earned in Florida.
3997	(6) So long as membership continues, a prior service
3998	certificate shall be final and conclusive for retirement
3999	purposes as to such prior service credit, unless modified by the
4000	departmentdivisionupon application made by the member within 1
4001	year after the date of issuance or modification of a prior
4002	service certificate or upon the discovery by the department
4003	divisionof error or fraud.
4004	Section 60. Subsection (4) of section 650.02, Florida
4005	Statutes, is amended to read:
4006	650.02 Definitions.--For the purpose of this chapter:
4007	(4) The term "state agency" means the Division of
4008	Retirement of the State Board of AdministrationDepartment of
4009	Management Services.
4010	Section 61. The Department of Management Services may
4011	contract with the State Board of Administration to administer
4012	sections 112.05, 121.1815, 250.22, 112.351-112.362, and chapters
4013	122 and 238, Florida Statutes.
4014	Section 62. The Department of Financial Services shall, at
4015	the direction of the State Board of Administration, issue
4016	benefit payments to persons eligible for such payments under the
4017	retirement plans and other benefit programs administered by the
4018	Board and the Division of Retirement. The Board is authorized to
4019	direct the withdrawal of appropriate amounts from trust funds in
4020	the State Treasury established for this purpose. Alternatively,
4021	at the option of the Board, it may issue such payments directly
4022	or through a third party agent. If this option is authorized by
4023	resolution of the Board, then the System Trust Fund and related
4024	funds, if any, established pursuant to s. 121.021(36), Florida
4025	Statutes, the Optional Annuity Program Trust Fund established
4026	pursuant to s. 121.055(6)(d)3., Florida Statutes, the Optional
4027	Retirement Program Trust Fund established pursuant to s.
4028	121.35(4)(c), Florida Statutes, the Retiree Health Insurance
4029	Subsidy Trust Fund established pursuant to s. 112.363(5),
4030	Florida Statutes, and any other trust funds established in the
4031	State Treasury for the purpose of paying benefits of the
4032	retirement plans and other benefit programs administered by the
4033	Board and the Division of Retirement shall be moved to the State
4034	Board of Administration.
4035	Section 63. This act shall take effect July 1, 2003.
4036
4037