HB 1575 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Appropriations recommends the following:
7
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, 121.095, 121.101, 121.111,
22	121.133, 121.135, 121.136, 121.1815, 121.1905, 121.192,
23	121.193, 121.22, 121.23, 121.24, 121.30, 121.35, 121.40,
24	121.45, 121.4501, 121.403, 121.591, 121.5911, 121.72,
25	121.73, 121.74, 175.032, 175.121, 175.1215, 175.341,
26	185.02, 185.10, 185.105, 185.23, 215.20, 215.28, 215.44,
27	215.50, 215.52, 238.01, 238.02, 238.03, 238.05, 238.07,
28	238.08, 238.09, 238.10, 238.11, 238.12, 238.14, 238.15,
29	238.171, 238.181, 238.32, 650.02, 650.06, 122.02, 122.03,
30	122.05, 122.06, 122.07, 122.08, 122.09, 122.10, 122.12,
31	122.13, 122.15, 122.16, 122.23, 122.30, 122.34, 122.351,
32	F.S., to conform to such transfer; providing duties of the
33	Department of Financial Services with respect to issuing
34	benefit payments under retirement plans; providing for the
35	request and transfer of appropriations; providing an
36	effective date.
37
38	Be It Enacted by the Legislature of the State of Florida:
39
40	Section 1. The Division of Retirement of the Department of
41	Management Services is transferred to the State Board of
42	Administration. All powers, duties, functions, records,
43	personnel, property, and unexpended balances of appropriations,
44	allocations, and other funds relating to the Division of
45	Retirement are transferred by a type one transfer, as defined in
46	section 20.06, Florida Statutes, to the State Board of
47	Administration. This act does not alter or amend the powers,
48	operations, or functioning of the State Board of Administration
49	with respect to its duties, responsibilities, and authority
50	existing prior to the enactment of this legislation.
51	Section 2. Paragraphs (g) and (h) of subsection (2) of
52	section 20.22, Florida Statutes, are amended to read:
53	20.22 Department of Management Services.--There is created
54	a Department of Management Services.
55	(2) The following divisions and programs within the
56	Department of Management Services are established:
57	(g) Division of Retirement.
58	(g)(h)Division of State Group Insurance.
59	Section 3. Section 20.28, Florida Statutes, is amended to
60	read:
61	20.28 State Board of Administration.--The State Board of
62	Administration, continued by s. 4(e), Art. IVs. 9, Art. XIIof
63	the State Constitution, retains all of its powers, duties, and
64	functions as prescribed by law. There is established under the
65	State Board of Administration a Division of Retirement, which
66	shall be subject to the direction of the executive director of
67	the board who is the agency head of the division for purposes of
68	chapter 120.
69	Section 4. Paragraph (u) of subsection (2) of section
70	110.205, Florida Statutes, is amended to read:
71	110.205 Career service; exemptions.--
72	(2) EXEMPT POSITIONS.--The exempt positions that are not
73	covered by this part include the following:
74	(u) All officers and employees of the State Board of
75	Administration, including its Division of Retirement. The State
76	Board of Administration shall set the salaries and benefits of
77	these positions.
78	Section 5. Paragraph (b) of subsection (4) of section
79	112.05, Florida Statutes, is amended to read:
80	112.05 Retirement; cost-of-living adjustment; employment
81	after retirement.--
82	(4)
83	(b) Any person to whom the limitation in paragraph (a)
84	applies who violates such reemployment limitation and is
85	reemployed with any agency participating in the Florida
86	Retirement System prior to completion of the 12-month limitation
87	period shall give timely notice of this fact in writing to the
88	employer and to the Department of Management ServicesDivision;
89	and the person's retirement benefits shall be suspended for the
90	balance of the 12-month limitation period. Any person employed
91	in violation of this subsection and any employing agency which
92	knowingly employs or appoints such person without notifying the
93	Department of Management Services to suspend retirement benefits
94	shall be jointly and severally liable for reimbursement to the
95	retirement trust fund of any benefits paid during the
96	reemployment limitation period. To avoid liability, such
97	employing agency shall have a written statement from the retiree
98	that he or she is not retired from a state-administered
99	retirement system. Any retirement benefits received by such
100	person while reemployed during this limitation period shall be
101	repaid to the retirement trust fund, and the retirement benefits
102	shall remain suspended until such repayment has been made. Any
103	benefits suspended beyond the reemployment limitation period
104	shall apply toward the repayment of benefits received in
105	violation of the reemployment limitation.
106	Section 6. Paragraph (d) of subsection (4) of section
107	112.3173, Florida Statutes, is amended to read:
108	112.3173 Felonies involving breach of public trust and
109	other specified offenses by public officers and employees;
110	forfeiture of retirement benefits.--
111	(4) NOTICE.--
112	(d) The Commission on Ethics shall forward any notice and
113	any other document received by it pursuant to this subsection to
114	the governing body of the public retirement system of which the
115	public officer or employee is a member or from which the public
116	officer or employee may be entitled to receive a benefit. When
117	called on by the Commission on Ethics, the Division of
118	Retirement of the State Board of AdministrationDepartment of
119	Management Servicesshall assist the commission in identifying
120	the appropriate public retirement system.
121	Section 7. Subsections (2), (4), (5), (7), and (8) of
122	section 112.363, Florida Statutes, are amended to read:
123	112.363 Retiree health insurance subsidy.--
124	(2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.--
125	(a) A person who is retired under a state-administered
126	retirement system, or a beneficiary who is a spouse or financial
127	dependent entitled to receive benefits under a state-
128	administered retirement system, is eligible for health insurance
129	subsidy payments provided under this section; except that
130	pension recipients under ss. 121.40, 238.07(16)(a), and 250.22,
131	recipients of health insurance coverage under s. 110.1232, or
132	any other special pension or relief act shall not be eligible
133	for such payments.
134	(b) For purposes of this section, a person is deemed
135	retired from a state-administered retirement system when he or
136	she terminates employment with all employers participating in
137	the Florida Retirement System as described in s. 121.021(39)
138	and:
139	1. For a participant of the Public Employee Optional
140	Retirement Program established under part II of chapter 121, the
141	participant meets the age or service requirements to qualify for
142	normal retirement as set forth in s. 121.021(29).
143	2. For a member of the Florida Retirement System defined
144	benefit program, or any employee who maintains creditable
145	service under both the defined benefit program and the Public
146	Employee Optional Retirement Program, the member begins drawing
147	retirement benefits from the defined benefit program of the
148	Florida Retirement System.
149	(c)1. Effective July 1, 2001, any person retiring on or
150	after such date as a member of the Florida Retirement System,
151	including any participant of the defined contribution program
152	administered pursuant to part II of chapter 121, must have
153	satisfied the vesting requirements for his or her membership
154	class under the Florida Retirement System defined benefit
155	program as administered under part I of chapter 121.
156	2. Notwithstanding the provisions of subparagraph 1., a
157	person retiring due to disability must either qualify for a
158	regular or in-line-of-duty disability benefit as provided in s.
159	121.091(4) or qualify for a disability benefit under a
160	disability plan established under part II of chapter 121, as
161	appropriate.
162	(d) Payment of the retiree health insurance subsidy shall
163	be made only after coverage for health insurance for the retiree
164	or beneficiary has been certified in writing to the Division of
165	Retirement of the State Board of AdministrationDepartment of
166	Management Services. Participation in a former employer's group
167	health insurance program is not a requirement for eligibility
168	under this section.
169	(e) Participants in the Senior Management Service Optional
170	Annuity Program as provided in s. 121.055(6) and the State
171	University System Optional Retirement Program as provided in s.
172	121.35 shall not receive the retiree health insurance subsidy
173	provided in this section. The employer of such participant shall
174	pay the contributions required in subsection (8) to the annuity
175	program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
176	applicable.
177	(4) PAYMENT OF RETIREE HEALTH INSURANCE
178	SUBSIDY.--Beginning January 1, 1988, any monthly retiree health
179	insurance subsidy amount due and payable under this section
180	shall be paid to retired members by the Division of Retirement
181	of the State Board of AdministrationDepartment of Management
182	Services or under the direction and control of the division
183	department.
184	(5) TRUST FUND ESTABLISHED.--There is hereby established a
185	trust fund in the state treasury to be entitled the Retiree
186	Health Insurance Subsidy Trust Fund, which shall be administered
187	by the State Board of Administration. Said trust fund shall be
188	used to account for all moneys received and disbursed pursuant
189	to this section. Should funding for the retiree health
190	insurance subsidy program fail to provide full benefits for all
191	participants, the benefits may be reduced or canceled at any
192	time.
193	(7) ADMINISTRATION OF SYSTEM.--The Division of Retirement
194	of the State Board of AdministrationDepartment of Management
195	Servicesmay adopt such rules and regulations as are necessary
196	for the effective and efficient administration of this section.
197	The cost of administration isshall beappropriated from the
198	trust fund.
199	(8) CONTRIBUTIONS.--For purposes of funding the insurance
200	subsidy provided by this section:
201	(a) Beginning October 1, 1987, the employer of each member
202	of a state-administered retirement plan shall contribute 0.24
203	percent of gross compensation each pay period.
204	(b) Beginning January 1, 1989, the employer of each member
205	of a state-administered retirement plan shall contribute 0.48
206	percent of gross compensation each pay period.
207	(c) Beginning January 1, 1994, the employer of each member
208	of a state-administered retirement plan shall contribute 0.56
209	percent of gross compensation each pay period.
210	(d) Beginning January 1, 1995, the employer of each member
211	of a state-administered retirement plan shall contribute 0.66
212	percent of gross compensation each pay period.
213	(e) Beginning July 1, 1998, the employer of each member of
214	a state-administered retirement plan shall contribute 0.94
215	percent of gross compensation each pay period.
216	(f) Beginning July 1, 2001, the employer of each member of
217	a state-administered plan shall contribute 1.11 percent of gross
218	compensation each pay period.
219
220	Such contributions shall be submitted to the Division of
221	Retirement of the State Board of AdministrationDepartment of
222	Management Servicesand deposited in the Retiree Health
223	Insurance Subsidy Trust Fund.
224	Section 8. Subsection (10) is added to section 112.625,
225	Florida Statutes, to read:
226	112.625 Definitions.--As used in this act:
227	(10) "Division" means the Division of Retirement of the
228	State Board of Administration.
229	Section 9. Subsections (2) and (4) of section 112.63,
230	Florida Statutes, are amended to read:
231	112.63 Actuarial reports and statements of actuarial
232	impact; review.--
233	(2) The frequency of actuarial reports must be at least
234	every 3 years commencing from the last actuarial report of the
235	plan or system or October 1, 1980, if no actuarial report has
236	been issued within the 3-year period prior to October 1, 1979.
237	The results of each actuarial report shall be filed with the
238	plan administrator within 60 days of certification. Thereafter,
239	the results of each actuarial report shall be made available for
240	inspection upon request. Additionally, each retirement system or
241	plan covered by this act which is not administered directly by
242	the divisionDepartment of Management Servicesshall furnish a
243	copy of each actuarial report to the divisionDepartment of
244	Management Serviceswithin 60 days after receipt from the
245	actuary. The requirements of this section are supplemental to
246	actuarial valuations necessary to comply with the requirements
247	of ss. 218.321 and 218.39.
248	(4) Upon receipt, pursuant to subsection (2), of an
249	actuarial report, or upon receipt, pursuant to subsection (3),
250	of a statement of actuarial impact, the divisionDepartment of
251	Management Servicesshall acknowledge such receipt, but shall
252	only review and comment on each retirement system's or plan's
253	actuarial valuations at least on a triennial basis. If the
254	divisiondepartmentfinds that the actuarial valuation is not
255	complete, accurate, or based on reasonable assumptions, or if
256	the divisiondepartmentdoes not receive the actuarial report or
257	statement of actuarial impact, the divisiondepartmentshall
258	notify the local government and request appropriate adjustment.
259	If, after a reasonable period of time, a satisfactory adjustment
260	is not made, the affected local government or the division
261	departmentmay petition for a hearing under the provisions of
262	ss. 120.569 and 120.57. If the administrative law judge
263	recommends in favor of the divisiondepartment, the division
264	departmentshall perform an actuarial review or prepare the
265	statement of actuarial impact. The cost to the division
266	departmentof performing such actuarial review or preparing such
267	statement shall be charged to the governmental entity of which
268	the employees are covered by the retirement system or plan. If
269	payment of such costs is not received by the divisiondepartment
270	within 60 days after receipt by the governmental entity of the
271	request for payment, the divisiondepartmentshall certify to
272	the Comptroller the amount due, and the Comptroller shall pay
273	such amount to the divisiondepartmentfrom any funds payable to
274	the governmental entity of which the employees are covered by
275	the retirement system or plan. If the administrative law judge
276	recommends in favor of the local retirement system and the
277	divisiondepartmentperforms an actuarial review, the cost to
278	the divisiondepartmentof performing the actuarial review shall
279	be paid by the divisiondepartment.
280	Section 10. Subsection (1) of section 112.64, Florida
281	Statutes, is amended to read:
282	112.64 Administration of funds; amortization of unfunded
283	liability.--
284	(1) Employee contributions shall be deposited in the
285	retirement system or plan at least monthly. Employer
286	contributions shall be deposited at least quarterly; however,
287	any revenues received from any source by an employer which are
288	specifically collected for the purpose of allocation for deposit
289	into a retirement system or plan shall be so deposited within 30
290	days of receipt by the employer. All employers and employees
291	participating in the Florida Retirement System and other
292	existing retirement systems which are administered by the
293	divisionDepartment of Management Servicesshall continue to
294	make contributions at least monthly.
295	Section 11. Subsections (1) and (3) of section 112.658,
296	Florida Statutes, are amended to read:
297	112.658 Office of Program Policy Analysis and Government
298	Accountability to determine compliance of the Florida Retirement
299	System.--
300	(1) The Office of Program Policy Analysis and Government
301	Accountability shall determine, through the examination of
302	actuarial reviews, financial statements, and the practices and
303	procedures of the Division of RetirementDepartment of
304	Management Services, the compliance of the Florida Retirement
305	System with the provisions of this act.
306	(3) The Office of Program Policy Analysis and Government
307	Accountability shall employ the same actuarial standards to
308	monitor the divisionDepartment of Management Services as the
309	divisionDepartment of Management Servicesuses to monitor local
310	governments.
311	Section 12. Subsections (9), (16), and (17) of section
312	112.661, Florida Statutes, are amended to read:
313	112.661 Investment policies.--Investment of the assets of
314	any local retirement system or plan must be consistent with a
315	written investment policy adopted by the board. Such policies
316	shall be structured to maximize the financial return to the
317	retirement system or plan consistent with the risks incumbent in
318	each investment and shall be structured to establish and
319	maintain an appropriate diversification of the retirement system
320	or plan's assets.
321	(9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy
322	shall require that, for each actuarial valuation, the board
323	determine the total expected annual rate of return for the
324	current year, for each of the next several years, and for the
325	long term thereafter. This determination must be filed promptly
326	with the divisionDepartment of Management Servicesand with the
327	plan's sponsor and the consulting actuary. The division
328	departmentshall use this determination only to notify the
329	board, the plan's sponsor, and consulting actuary of material
330	differences between the total expected annual rate of return and
331	the actuarial assumed rate of return.
332	(16) FILING OF INVESTMENT POLICY.--Upon adoption by the
333	board, the investment policy shall be promptly filed with the
334	divisionDepartment of Management Servicesand the plan's
335	sponsor and consulting actuary. The effective date of the
336	investment policy, and any amendment thereto, shall be the 31st
337	calendar day following the filing date with the plan sponsor.
338	(17) VALUATION OF ILLIQUID INVESTMENTS.--The investment
339	policy shall provide for the valuation of illiquid investments
340	for which a generally recognized market is not available or for
341	which there is no consistent or generally accepted pricing
342	mechanism. If those investments are utilized, the investment
343	policy must include the criteria set forth in s. 215.47(6),
344	except that submission to the Investment Advisory Council is not
345	required. The investment policy shall require that, for each
346	actuarial valuation, the board must verify the determination of
347	the fair market value for those investments and ascertain that
348	the determination complies with all applicable state and federal
349	requirements. The investment policy shall require that the board
350	disclose to the divisionDepartment of Management Servicesand
351	the plan's sponsor each such investment for which the fair
352	market value is not provided.
353	Section 13. Section 112.665, Florida Statutes, is amended
354	to read:
355	112.665 Duties of Division of RetirementDepartment of
356	Management Services.--
357	(1) The Division of RetirementDepartment of Management
358	Servicesshall:
359	(a) Gather, catalog, and maintain complete, computerized
360	data information on all public employee retirement systems or
361	plans in the state, based upon a review of audits, reports, and
362	other data pertaining to the systems or plans;
363	(b) Receive and comment upon all actuarial reviews of
364	retirement systems or plans maintained by units of local
365	government;
366	(c) Cooperate with local retirement systems or plans on
367	matters of mutual concern and provide technical assistance to
368	units of local government in the assessment and revision of
369	retirement systems or plans;
370	(d) Issue, by January 1 annually, a report to the
371	President of the Senate and the Speaker of the House of
372	Representatives, which report details division activities,
373	findings, and recommendations concerning all governmental
374	retirement systems. The report may include legislation proposed
375	to carry out such recommendations;
376	(e) Issue, by January 1 annually, a report to the Special
377	District Information Program of the Department of Community
378	Affairs that includes the participation in and compliance of
379	special districts with the local government retirement system
380	provisions in s. 112.63 and the state-administered retirement
381	system provisions as specified in part I of chapter 121; and
382	(f) Adopt reasonable rules to administer the provisions of
383	this part.
384	(2) The divisiondepartmentmay subpoena actuarial
385	witnesses, review books and records, hold hearings, and take
386	testimony. A witness shall have the right to be accompanied by
387	counsel.
388	Section 14. Subsections (4), (5), (32), and (36) and
389	paragraph (a) of subsection (39) of section 121.021, Florida
390	Statutes, are amended, and subsection (62) is added to that
391	section, to read:
392	121.021 Definitions.--The following words and phrases as
393	used in this chapter have the respective meanings set forth
394	unless a different meaning is plainly required by the context:
395	(4) "DivisionDepartment" means the Division of Retirement
396	of the State Board of AdministrationDepartment of Management
397	Services.
398	(5) "Administrator" means the executive director of the
399	State Board of Administrationsecretary of the Department of
400	Management Services.
401	(32) "State agency" means the Division of Retirement
402	Department of Management Serviceswithin the provisions and
403	contemplation of chapter 650.
404	(36) "System Trust Fund" means the trust fund established
405	in the State Treasury by this chapter and administered by the
406	State Board of Administrationfor the purpose of holding and
407	investing the contributions paid by members and employers and
408	paying the benefits to which members or their beneficiaries may
409	become entitled. Other trust funds may be established in the
410	State Treasury to administer the "System Trust Fund."
411	(39)(a) "Termination" occurs, except as provided in
412	paragraph (b), when a member ceases all employment relationships
413	with employers under this system, as defined in subsection (10),
414	but in the event a member should be employed by any such
415	employer within the next calendar month, termination shall be
416	deemed not to have occurred. A leave of absence shall constitute
417	a continuation of the employment relationship, except that a
418	leave of absence without pay due to disability may constitute
419	termination for a member, if such member makes application for
420	and is approved for disability retirement in accordance with s.
421	121.091(4). The divisiondepartmentmay require other evidence
422	of termination as it deems necessary.
423	(62) "Board" means the State Board of Administration.
424	Section 15. Section 121.025, Florida Statutes, is amended
425	to read:
426	121.025 Administrator; powers and duties.--The executive
427	director of the State Board of Administrationsecretary of the
428	Department of Management Servicesshall be the administrator of
429	the retirement and pension systems assigned or transferred to
430	the divisionDepartment of Management Services by law. The
431	executive director of the State Board of Administration is the
432	trustee of the System Trust Fundand shall have the authority to
433	sign the contracts necessary to carry out the duties and
434	responsibilities assigned by law to the divisionDepartment of
435	Management Services.
436	Section 16. Subsections (1), (2), and (5) and paragraph
437	(e) of subsection (3) of section 121.031, Florida Statutes, are
438	amended to read:
439	121.031 Administration of system; appropriation; oaths;
440	actuarial studies; public records.--
441	(1) The divisionDepartment of Management Serviceshas the
442	authority to adopt rules pursuant to ss. 120.536(1) and 120.54
443	to implement the provisions of law conferring duties upon the
444	divisiondepartmentand to adopt rules as are necessary for the
445	effective and efficient administration of this system. The funds
446	to pay the expenses for administration of the system are hereby
447	appropriated from the interest earned on investments made for
448	the retirement and social security trust funds and the
449	assessments allowed under chapter 650.
450	(2) The divisionDepartment of Management Servicesis
451	authorized to require oaths, by affidavit or otherwise, and
452	acknowledgments from persons in connection with the
453	administration of its duties and responsibilities under this
454	chapter.
455	(3) The administrator shall cause an actuarial study of
456	the system to be made at least annually and shall report the
457	results of such study to the Legislature by December 31 prior to
458	the next legislative session. The study shall, at a minimum,
459	conform to the requirements of s. 112.63, with the following
460	exceptions and additions:
461	(e) The study shall include measures of funding status and
462	funding progress designed to facilitate the assessment of trends
463	over several actuarial valuations with respect to the overall
464	solvency of the system. Such measures shall be adopted by the
465	divisiondepartmentand shall be used consistently in all
466	actuarial valuations performed on the system.
467	(5) The names and addresses of retirees are confidential
468	and exempt from the provisions of s. 119.07(1) to the extent
469	that no state or local governmental agency may provide the names
470	or addresses of such persons in aggregate, compiled, or list
471	form to any person except to a public agency engaged in official
472	business. However, a state or local government agency may
473	provide the names and addresses of retirees from that agency to
474	a bargaining agent as defined in s. 447.203(12) or to a retiree
475	organization for official business use. Lists of names or
476	addresses of retirees may be exchanged by public agencies, but
477	such lists shall not be provided to, or open for inspection by,
478	the public. Any person may view or copy any individual's
479	retirement records at the divisionDepartment of Management
480	Services, one record at a time, or may obtain information by a
481	separate written request for a named individual for which
482	information is desired.
483	Section 17. Paragraph (c) of subsection (1) and paragraphs
484	(b) and (f) of subsection (2) of section 121.051, Florida
485	Statutes, are amended to read:
486	121.051 Participation in the system.--
487	(1) COMPULSORY PARTICIPATION.--
488	(c)1. After June 30, 1983, a member of an existing system
489	who is reemployed after terminating employment shall have at the
490	time of reemployment the option of selecting to remain in the
491	existing retirement system or to transfer to the Florida
492	Retirement System. Failure to submit such selection in writing
493	to the divisionDepartment of Management Serviceswithin 6
494	months of reemployment shall result in compulsory membership in
495	the Florida Retirement System.
496	2. After June 30, 1988, the provisions of subparagraph 1.
497	shall not apply to a member of an existing system who is
498	reemployed within 12 months after terminating employment. Such
499	member shall continue to have membership in the existing system
500	upon reemployment and shall not be permitted to become a member
501	of the Florida Retirement System, except by transferring to that
502	system as provided in ss. 121.052 and 121.055.
503	(2) OPTIONAL PARTICIPATION.--
504	(b)1. The governing body of any municipality or special
505	district in the state may elect to participate in the system
506	upon proper application to the administrator and may cover all
507	or any of its units as approved by the Secretary of Health and
508	Human Services and the administrator. The divisiondepartment
509	shall adopt rules establishing provisions for the submission of
510	documents necessary for such application. Prior to being
511	approved for participation in the Florida Retirement System, the
512	governing body of any such municipality or special district that
513	has a local retirement system shall submit to the administrator
514	a certified financial statement showing the condition of the
515	local retirement system as of a date within 3 months prior to
516	the proposed effective date of membership in the Florida
517	Retirement System. The statement must be certified by a
518	recognized accounting firm that is independent of the local
519	retirement system. All required documents necessary for
520	extending Florida Retirement System coverage must be received by
521	the divisiondepartmentfor consideration at least 15 days prior
522	to the proposed effective date of coverage. If the municipality
523	or special district does not comply with this requirement, the
524	divisiondepartmentmay require that the effective date of
525	coverage be changed.
526	2. Any city or special district that has an existing
527	retirement system covering the employees in the units that are
528	to be brought under the Florida Retirement System may
529	participate only after holding a referendum in which all
530	employees in the affected units have the right to participate.
531	Only those employees electing coverage under the Florida
532	Retirement System by affirmative vote in said referendum shall
533	be eligible for coverage under this chapter, and those not
534	participating or electing not to be covered by the Florida
535	Retirement System shall remain in their present systems and
536	shall not be eligible for coverage under this chapter. After the
537	referendum is held, all future employees shall be compulsory
538	members of the Florida Retirement System.
539	3. The governing body of any city or special district
540	complying with subparagraph 1. may elect to provide, or not
541	provide, benefits based on past service of officers and
542	employees as described in s. 121.081(1). However, if such
543	employer elects to provide past service benefits, such benefits
544	must be provided for all officers and employees of its covered
545	group.
546	4. Once this election is made and approved it may not be
547	revoked, except pursuant to subparagraphs 5. and 6., and all
548	present officers and employees electing coverage under this
549	chapter and all future officers and employees shall be
550	compulsory members of the Florida Retirement System.
551	5. Subject to the conditions set forth in subparagraph 6.,
552	the governing body of any hospital licensed under chapter 395
553	which is governed by the board of a special district as defined
554	in s. 189.403(1) or by the board of trustees of a public health
555	trust created under s. 154.07, hereinafter referred to as
556	"hospital district," and which participates in the system, may
557	elect to cease participation in the system with regard to future
558	employees in accordance with the following procedure:
559	a. No more than 30 days and at least 7 days before
560	adopting a resolution to partially withdraw from the Florida
561	Retirement System and establish an alternative retirement plan
562	for future employees, a public hearing must be held on the
563	proposed withdrawal and proposed alternative plan.
564	b. From 7 to 15 days before such hearing, notice of intent
565	to withdraw, specifying the time and place of the hearing, must
566	be provided in writing to employees of the hospital district
567	proposing partial withdrawal and must be published in a
568	newspaper of general circulation in the area affected, as
569	provided by ss. 50.011-50.031. Proof of publication of such
570	notice shall be submitted to the divisionDepartment of
571	Management Services.
572	c. The governing body of any hospital district seeking to
573	partially withdraw from the system must, before such hearing,
574	have an actuarial report prepared and certified by an enrolled
575	actuary, as defined in s. 112.625(3), illustrating the cost to
576	the hospital district of providing, through the retirement plan
577	that the hospital district is to adopt, benefits for new
578	employees comparable to those provided under the Florida
579	Retirement System.
580	d. Upon meeting all applicable requirements of this
581	subparagraph, and subject to the conditions set forth in
582	subparagraph 6., partial withdrawal from the system and adoption
583	of the alternative retirement plan may be accomplished by
584	resolution duly adopted by the hospital district board. The
585	hospital district board must provide written notice of such
586	withdrawal to the division by mailing a copy of the resolution
587	to the division, postmarked no later than December 15, 1995. The
588	withdrawal shall take effect January 1, 1996.
589	6. Following the adoption of a resolution under sub-
590	subparagraph 5.d., all employees of the withdrawing hospital
591	district who were participants in the Florida Retirement System
592	prior to January 1, 1996, shall remain as participants in the
593	system for as long as they are employees of the hospital
594	district, and all rights, duties, and obligations between the
595	hospital district, the system, and the employees shall remain in
596	full force and effect. Any employee who is hired or appointed on
597	or after January 1, 1996, may not participate in the Florida
598	Retirement System, and the withdrawing hospital district shall
599	have no obligation to the system with respect to such employees.
600	(f)1. Whenever an employer that participates in the
601	Florida Retirement System undertakes the transfer, merger, or
602	consolidation of governmental services or functions, the
603	employer must notify the divisiondepartmentat least 60 days
604	prior to such action and shall provide documentation as required
605	by the divisiondepartment.
606	2. When the agency to which a member's employing unit is
607	transferred, merged, or consolidated does not participate in the
608	Florida Retirement System, a member shall elect in writing to
609	remain in the Florida Retirement System or to transfer to the
610	local retirement system operated by such agency. If such agency
611	does not participate in a local retirement system, the member
612	shall continue membership in the Florida Retirement System. In
613	either case, the membership shall continue for as long as the
614	member is employed by the agency to which his or her unit was
615	transferred, merged, or consolidated.
616	Section 18. Subsection (2) of section 121.0511, Florida
617	Statutes, is amended to read:
618	121.0511 Revocation of election and alternative plan.--The
619	governing body of any municipality or independent special
620	district that has elected to participate in the Florida
621	Retirement System may revoke its election in accordance with the
622	following procedure:
623	(2) At least 7 days, but not more than 15 days, before the
624	hearing, notice of intent to revoke, specifying the time and
625	place of the hearing, must be published in a newspaper of
626	general circulation in the area affected, as provided by ss.
627	50.011-50.031. Proof of publication of the notice must be
628	submitted to the divisionDepartment of Management Services.
629	Section 19. Subsections (3) and (4) and paragraph (c) of
630	subsection (7) of section 121.0515, Florida Statutes, are
631	amended to read:
632	121.0515 Special risk membership.--
633	(3) PROCEDURE FOR DESIGNATING.--
634	(a) Any member of the Florida Retirement System employed
635	by a county, city, or special district who feels that he or she
636	meets the criteria set forth in this section for membership in
637	the Special Risk Class may request that his or her employer
638	submit an application to the divisiondepartmentrequesting that
639	the divisiondepartmentdesignate him or her as a special risk
640	member. If the employer agrees that the member meets the
641	requirements for special risk membership, the employer shall
642	submit an application to the divisiondepartmentin behalf of
643	the employee containing a certification that the member meets
644	the criteria for special risk membership set forth in this
645	section and such other supporting documentation as may be
646	required by administrative rule. The divisiondepartmentshall,
647	within 90 days, either designate or refuse to designate the
648	member as a special risk member. If the employer declines to
649	submit the member's application to the divisiondepartmentor if
650	the divisiondepartmentdoes not designate the member as a
651	special risk member, the member or the employer may appeal to
652	the State Retirement Commission, as provided in s. 121.23, for
653	designation as a special risk member. A member who receives a
654	final affirmative ruling pursuant to such appeal for special
655	risk membership shall have special risk membership retroactive
656	to the date such member would have had special risk membership
657	had such membership been approved by the employer and the
658	divisiondepartment, as determined by the divisiondepartment,
659	and the employer contributions shall be paid in full within 1
660	year after such final ruling.
661	(b)1. Applying the criteria set forth in this section, the
662	divisionDepartment of Management Servicesshall specify which
663	current and newly created classes of positions under the uniform
664	classification plan established pursuant to chapter 110 entitle
665	the incumbents of positions in those classes to membership in
666	the Special Risk Class. Only employees employed in the classes
667	so specified shall be special risk members.
668	2. When a class is not specified by the division
669	departmentas provided in subparagraph 1., the employing agency
670	may petition the State Retirement Commission for approval in
671	accordance with s. 121.23.
672	(4) REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member who is
673	a special risk member on October 1, 1978, and who fails to meet
674	the criteria for special risk membership established by this
675	section shall have his or her special risk designation removed
676	and thereafter shall be a regular member and shall earn only
677	regular membership credit. The divisiondepartmentshall have
678	the authority to review the special risk designation of members
679	to determine whether or not those members continue to meet the
680	criteria for special risk membership.
681	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.--
682	(c) The divisiondepartmentshall adopt such rules as are
683	required to administer this subsection.
684	Section 20. Paragraph (e) of subsection (3) of section
685	121.052, Florida Statutes, is amended to read:
686	121.052 Membership class of elected officers.--
687	(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
688	July 1, 1990, participation in the Elected Officers' Class shall
689	be compulsory for elected officers listed in paragraphs (2)(a)-
690	(d) and (f) assuming office on or after said date, unless the
691	elected officer elects membership in another class or withdraws
692	from the Florida Retirement System as provided in paragraphs
693	(3)(a)-(d):
694	(e) Effective July 1, 2001, the governing body of a
695	municipality or special district may, by majority vote, elect to
696	designate all its elected positions for inclusion in the Elected
697	Officers' Class. Such election shall be made between July 1,
698	2001, and December 31, 2001, and shall be irrevocable. The
699	designation of such positions shall be effective the first day
700	of the month following receipt by the divisiondepartmentof the
701	ordinance or resolution passed by the governing body.
702	Section 21. Paragraphs (b) and (h) of subsection (1) and
703	paragraphs (a), (c), (d), and (f) of subsection (6) of section
704	121.055, Florida Statutes, are amended to read:
705	121.055 Senior Management Service Class.--There is hereby
706	established a separate class of membership within the Florida
707	Retirement System to be known as the "Senior Management Service
708	Class," which shall become effective February 1, 1987.
709	(1)
710	(b)1. Except as provided in subparagraph 2., effective
711	January 1, 1990, participation in the Senior Management Service
712	Class shall be compulsory for the president of each community
713	college, the manager of each participating city or county, and
714	all appointed district school superintendents. Effective January
715	1, 1994, additional positions may be designated for inclusion in
716	the Senior Management Service Class of the Florida Retirement
717	System, provided that:
718	a. Positions to be included in the class shall be
719	designated by the local agency employer. Notice of intent to
720	designate positions for inclusion in the class shall be
721	published once a week for 2 consecutive weeks in a newspaper of
722	general circulation published in the county or counties
723	affected, as provided in chapter 50.
724	b. Up to 10 nonelective full-time positions may be
725	designated for each local agency employer reporting to the
726	divisionDepartment of Management Services; for local agencies
727	with 100 or more regularly established positions, additional
728	nonelective full-time positions may be designated, not to exceed
729	1 percent of the regularly established positions within the
730	agency.
731	c. Each position added to the class must be a managerial
732	or policymaking position filled by an employee who is not
733	subject to continuing contract and serves at the pleasure of the
734	local agency employer without civil service protection, and who:
735	(I) Heads an organizational unit; or
736	(II) Has responsibility to effect or recommend personnel,
737	budget, expenditure, or policy decisions in his or her areas of
738	responsibility.
739	2. In lieu of participation in the Senior Management
740	Service Class, members of the Senior Management Service Class
741	pursuant to the provisions of subparagraph 1. may withdraw from
742	the Florida Retirement System altogether. The decision to
743	withdraw from the Florida Retirement System shall be irrevocable
744	for as long as the employee holds such a position. Any service
745	creditable under the Senior Management Service Class shall be
746	retained after the member withdraws from the Florida Retirement
747	System; however, additional service credit in the Senior
748	Management Service Class shall not be earned after such
749	withdrawal. Such members shall not be eligible to participate in
750	the Senior Management Service Optional Annuity Program.
751	(h)1. Except as provided in subparagraph 3., effective
752	January 1, 1994, participation in the Senior Management Service
753	Class shall be compulsory for the State Courts Administrator and
754	the Deputy State Courts Administrators, the Clerk of the Supreme
755	Court, the Marshal of the Supreme Court, the Executive Director
756	of the Justice Administrative Commission, the Capital Collateral
757	Regional Counsels, the clerks of the district courts of appeals,
758	the marshals of the district courts of appeals, and the trial
759	court administrator and the Chief Deputy Court Administrator in
760	each judicial circuit. Effective January 1, 1994, additional
761	positions in the offices of the state attorney and public
762	defender in each judicial circuit may be designated for
763	inclusion in the Senior Management Service Class of the Florida
764	Retirement System, provided that:
765	a. Positions to be included in the class shall be
766	designated by the state attorney or public defender, as
767	appropriate. Notice of intent to designate positions for
768	inclusion in the class shall be published once a week for 2
769	consecutive weeks in a newspaper of general circulation
770	published in the county or counties affected, as provided in
771	chapter 50.
772	b. One nonelective full-time position may be designated
773	for each state attorney and public defender reporting to the
774	divisionDepartment of Management Services; for agencies with
775	200 or more regularly established positions under the state
776	attorney or public defender, additional nonelective full-time
777	positions may be designated, not to exceed 0.5 percent of the
778	regularly established positions within the agency.
779	c. Each position added to the class must be a managerial
780	or policymaking position filled by an employee who serves at the
781	pleasure of the state attorney or public defender without civil
782	service protection, and who:
783	(I) Heads an organizational unit; or
784	(II) Has responsibility to effect or recommend personnel,
785	budget, expenditure, or policy decisions in his or her areas of
786	responsibility.
787	2. Participation in this class shall be compulsory, except
788	as provided in subparagraph 3., for any judicial employee who
789	holds a position designated for coverage in the Senior
790	Management Service Class, and such participation shall continue
791	until the employee terminates employment in a covered position.
792	Effective January 1, 2001, participation in this class is
793	compulsory for assistant state attorneys, assistant statewide
794	prosecutors, assistant public defenders, and assistant capital
795	collateral regional counsels. Effective January 1, 2002,
796	participation in this class is compulsory for assistant
797	attorneys general.
798	3. In lieu of participation in the Senior Management
799	Service Class, such members, excluding assistant state
800	attorneys, assistant public defenders, assistant statewide
801	prosecutors, assistant attorneys general, and assistant capital
802	collateral regional counsels, may participate in the Senior
803	Management Service Optional Annuity Program as established in
804	subsection (6).
805	(6)(a) Senior Management Service Optional Annuity
806	Program.--The State Board of AdministrationDepartment of
807	Management Servicesshall establish a Senior Management Service
808	Optional Annuity Program under which contracts providing
809	retirement, death, and disability benefits may be purchased for
810	those employees who elect to participate in the optional annuity
811	program. The benefits to be provided for or on behalf of
812	participants in such optional annuity program shall be provided
813	through individual contracts or individual certificates issued
814	for group annuity contracts, which may be fixed, variable, or a
815	combination thereof, in accordance with s. 401(a) of the
816	Internal Revenue Code. Any such individual contract or
817	certificate shall state the annuity plan on its face page, and
818	shall include, but not be limited to, a statement of ownership,
819	the contract benefits, annuity income options, limitations,
820	expense charges, and surrender charges, if any. The employing
821	agency shall contribute, as provided in this section, toward the
822	purchase of such optional benefits which shall be fully and
823	immediately vested in the participants.
824	(c) Participation.--
825	1. Any eligible employee who is employed on or before
826	February 1, 1987, may elect to participate in the optional
827	annuity program in lieu of participation in the Senior
828	Management Service Class. Such election shall be made in writing
829	and filed with the boarddepartmentand the personnel officer of
830	the employer on or before May 1, 1987. Any eligible employee who
831	is employed on or before February 1, 1987, and who fails to make
832	an election to participate in the optional annuity program by
833	May 1, 1987, shall be deemed to have elected membership in the
834	Senior Management Service Class.
835	2. Any employee who becomes eligible to participate in the
836	optional annuity program by reason of initial employment
837	commencing after February 1, 1987, may, within 90 days after the
838	date of commencement of employment, elect to participate in the
839	optional annuity program. Such election shall be made in writing
840	and filed with the personnel officer of the employer. Any
841	eligible employee who does not within 90 days after commencement
842	of such employment elect to participate in the optional annuity
843	program shall be deemed to have elected membership in the Senior
844	Management Service Class.
845	3. A person who is appointed to a position in the Senior
846	Management Service Class and who is a member of an existing
847	retirement system or the Special Risk or Special Risk
848	Administrative Support Classes of the Florida Retirement System
849	may elect to remain in such system or class in lieu of
850	participation in the Senior Management Service Class or optional
851	annuity program. Such election shall be made in writing and
852	filed with the boarddepartmentand the personnel officer of the
853	employer within 90 days of such appointment. Any eligible
854	employee who fails to make an election to participate in the
855	existing system, the Special Risk Class of the Florida
856	Retirement System, the Special Risk Administrative Support Class
857	of the Florida Retirement System, or the optional annuity
858	program shall be deemed to have elected membership in the Senior
859	Management Service Class.
860	4. Except as provided in subparagraph 5., an employee's
861	election to participate in the optional annuity program is
862	irrevocable as long as such employee continues to be employed in
863	an eligible position and continues to meet the eligibility
864	requirements set forth in this paragraph.
865	5. Effective from July 1, 2002, through September 30,
866	2002, any active employee in a regularly established position
867	who has elected to participate in the Senior Management Service
868	Optional Annuity Program has one opportunity to choose to move
869	from the Senior Management Service Optional Annuity Program to
870	the Florida Retirement System defined benefit program.
871	a. The election must be made in writing and must be filed
872	with the department and the personnel officer of the employer
873	before October 1, 2002, or, in the case of an active employee
874	who is on a leave of absence on July 1, 2002, within 90 days
875	after the conclusion of the leave of absence. This election is
876	irrevocable.
877	b. The employee will receive service credit under the
878	defined benefit program of the Florida Retirement System equal
879	to his or her years of service under the Senior Management
880	Service Optional Annuity Program. The cost for such credit shall
881	be an amount representing the present value of that employee's
882	accumulated benefit obligation for the affected period of
883	service.
884	c. The employee must transfer the total accumulated
885	employer contributions and earnings on deposit in his or her
886	Senior Management Service Optional Annuity Program account. If
887	the transferred amount is not sufficient to pay the amount due,
888	the employee must pay a sum representing the remainder of the
889	amount due. In no case may the employee retain any employer
890	contributions or earnings thereon from the Senior Management
891	Service Optional Annuity Program account.
892	(d) Contributions.--
893	1. Through June 30, 2001, each employer shall contribute
894	on behalf of each participant in the Senior Management Service
895	Optional Annuity Program an amount equal to the normal cost
896	portion of the employer retirement contribution which would be
897	required if the participant were a Senior Management Service
898	Class member of the Florida Retirement System defined benefit
899	program, plus the portion of the contribution rate required in
900	s. 112.363(8) that would otherwise be assigned to the Retiree
901	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
902	each employer shall contribute on behalf of each participant in
903	the optional program an amount equal to 12.49 percent of the
904	participant's gross monthly compensation. The boarddepartment
905	shall deduct an amount approved by the board, pursuant to s.
906	215.44(4),Legislatureto provide for the administration of this
907	program. The payment of the contributions to the optional
908	program which is required by this subparagraph for each
909	participant shall be made by the employer to the board
910	department, which shall forward the contributions to the
911	designated company or companies contracting for payment of
912	benefits for the participant under the program.
913	2. Each employer shall contribute on behalf of each
914	participant in the Senior Management Service Optional Annuity
915	Program an amount equal to the unfunded actuarial accrued
916	liability portion of the employer contribution which would be
917	required for members of the Senior Management Service Class in
918	the Florida Retirement System. This contribution shall be paid
919	to the boarddepartmentfor transfer to the Florida Retirement
920	System Trust Fund.
921	3. An Optional Annuity Program Trust Fund shall be
922	established in the State Treasury and administered by the board
923	departmentto make payments to provider companies on behalf of
924	the optional annuity program participants, and to transfer the
925	unfunded liability portion of the state optional annuity program
926	contributions to the Florida Retirement System Trust Fund.
927	4. Contributions required for social security by each
928	employer and each participant, in the amount required for social
929	security coverage as now or hereafter may be provided by the
930	federal Social Security Act shall be maintained for each
931	participant in the Senior Management Service retirement program
932	and shall be in addition to the retirement contributions
933	specified in this paragraph.
934	5. Each participant in the Senior Management Service
935	Optional Annuity Program may contribute by way of salary
936	reduction or deduction a percentage amount of the participant' s
937	gross compensation not to exceed the percentage amount
938	contributed by the employer to the optional annuity program.
939	Payment of the participant's contributions shall be made by the
940	employer to the boarddepartment, which shall forward the
941	contributions to the designated company or companies contracting
942	for payment of benefits for the participant under the program.
943	(f) Administration.--
944	1. The Senior Management Service Optional Annuity Program
945	authorized by this section shall be administered by the board
946	department. The boarddepartmentshall designate one or more
947	provider companies from which annuity contracts may be purchased
948	under the program and shall approve the form and content of the
949	contracts. The boarddepartmentshall sign a contract with each
950	of the provider companies and shall evaluate the performance of
951	the provider companies on a continuing basis. The board
952	departmentmay terminate the services of a provider company for
953	reasons stated in the contract. The boarddepartmentshall adopt
954	rules establishing its responsibilities and the responsibilities
955	of employers in administering the optional annuity program.
956	2. Effective July 1, 1997, the State Board of
957	Administration shall review and make recommendations to the
958	department on the acceptability of all investment products
959	proposed by provider companies of the optional annuity program
960	before such products are offered through annuity contracts to
961	the participants and may advise the department of any changes
962	deemed necessary to ensure that the optional annuity program
963	offers an acceptable mix of investment products. The board
964	department shall determine whichmake the final determination as
965	to whether an investment productsproduct will be included in
966	approved forthe program.
967	3. The provisions of each contract applicable to a
968	participant in the Senior Management Service Optional Annuity
969	Program shall be contained in a written program description
970	which shall include a report of pertinent financial and
971	actuarial information on the solvency and actuarial soundness of
972	the program and the benefits applicable to the participant. Such
973	description shall be furnished by the company or companies to
974	each participant in the program and to the boarddepartmentupon
975	commencement of participation in the program and annually
976	thereafter.
977	4. The boarddepartmentshall ensure that each participant
978	in the Senior Management Service Optional Annuity Program is
979	provided an accounting of the total contribution and the annual
980	contribution made by and on behalf of such participants.
981	Section 22. Paragraph (h) of subsection (1) and paragraph
982	(e) of subsection (2) of section 121.081, Florida Statutes, are
983	amended to read:
984	121.081 Past service; prior service;
985	contributions.--Conditions under which past service or prior
986	service may be claimed and credited are:
987	(1)
988	(h) The following provisions apply to the purchase of past
989	service:
990	1. Notwithstanding any of the provisions of this
991	subsection, past-service credit may not be purchased under this
992	chapter for any service that is used to obtain a benefit from
993	any local retirement system.
994	2. A member may not receive past service credit under
995	paragraphs (a), (b), (e), or (f) for any leaves of absence
996	without pay, except that credit for active military service
997	leaves of absence may be claimed under paragraphs (a), (b), and
998	(f), in accordance with s. 121.111(1).
999	3. If a member does not desire to receive credit for all
1000	of his or her past service, the period the member claims must be
1001	the most recent past service prior to his or her participation
1002	in the Florida Retirement System.
1003	4. The cost of past service purchased by an employing
1004	agency for its employees may be amortized over such period of
1005	time as is provided in the agreement, but not to exceed 15
1006	years, calculated in accordance with rule 60S-1.007(5)(f),
1007	Florida Administrative Code.
1008	5. The retirement account of each member for whom past
1009	service is being provided by his or her employer shall be
1010	credited with all past service the employer agrees to purchase
1011	as soon as the agreement between the employer and the division
1012	departmentis executed. Pursuant thereto:
1013	a. Each such member's account shall also be posted with
1014	the total contribution his or her employer agrees to make in the
1015	member's behalf for past service earned prior to October 1,
1016	1975, excluding those contributions representing the employer's
1017	matching share and the compound interest calculation on the
1018	total contribution. However, a portion of any contributions paid
1019	by an employer for past service credit earned on and after
1020	October 1, 1975, may not be posted to a member's account.
1021	b. A refund of contributions payable after an employer has
1022	made a written agreement to purchase past service for employees
1023	of the covered group shall include contributions for past
1024	service which are posted to a member's account. However,
1025	contributions for past service earned on and after October 1,
1026	1975, are not refundable.
1027	(2) Prior service, as defined in s. 121.021(19), may be
1028	claimed as creditable service under the Florida Retirement
1029	System after a member has been reemployed for 1 complete year of
1030	creditable service within a period of 12 consecutive months,
1031	except as provided in paragraph (c). Service performed as a
1032	participant of the optional retirement program for the State
1033	University System under s. 121.35 or the Senior Management
1034	Service Optional Annuity Program under s. 121.055 may be used to
1035	satisfy the reemployment requirement of 1 complete year of
1036	creditable service. The member shall not be permitted to make
1037	any contributions for prior service until after completion of
1038	the 1 year of creditable service. If a member does not wish to
1039	claim credit for all of his or her prior service, the service
1040	the member claims must be the most recent period of service. The
1041	required contributions for claiming the various types of prior
1042	service are:
1043	(e) For service performed under the Florida Retirement
1044	System after December 1, 1970, that was never reported to the
1045	division or the departmentdue to error, retirement credit may
1046	be claimed by a member of the Florida Retirement System. The
1047	divisiondepartmentshall adopt rules establishing criteria for
1048	claiming such credit and detailing the documentation required to
1049	substantiate the error.
1050	Section 23. Subsection (1) of section 121.085, Florida
1051	Statutes, is amended to read:
1052	121.085 Creditable service.--The following provisions
1053	shall apply to creditable service as defined in s. 121.021(17):
1054	(1) The divisiondepartmentshall adopt rules establishing
1055	procedures for the submission of evidence or information
1056	necessary to establish a member's claim of creditable service.
1057	Section 24. Section 121.091, Florida Statutes, is amended
1058	to read:
1059	121.091 Benefits payable under the system.--Benefits may
1060	not be paid under this section unless the member has terminated
1061	employment as provided in s. 121.021(39)(a) or begun
1062	participation in the Deferred Retirement Option Program as
1063	provided in subsection (13), and a proper application has been
1064	filed in the manner prescribed by the divisiondepartment. The
1065	divisiondepartmentmay cancel an application for retirement
1066	benefits when the member or beneficiary fails to timely provide
1067	the information and documents required by this chapter and the
1068	division'sdepartment's rules. The divisiondepartmentshall
1069	adopt rules establishing procedures for application for
1070	retirement benefits and for the cancellation of such application
1071	when the required information or documents are not received.
1072	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
1073	normal retirement date, the member, upon application to the
1074	administrator, shall receive a monthly benefit which shall begin
1075	to accrue on the first day of the month of retirement and be
1076	payable on the last day of that month and each month thereafter
1077	during his or her lifetime. The normal retirement benefit,
1078	including any past or additional retirement credit, may not
1079	exceed 100 percent of the average final compensation. The amount
1080	of monthly benefit shall be calculated as the product of A and
1081	B, subject to the adjustment of C, if applicable, as set forth
1082	below:
1083	(a)1. For creditable years of Regular Class service, A is
1084	1.60 percent of the member's average final compensation, up to
1085	the member's normal retirement date. Upon completion of the
1086	first year after the normal retirement date, A is 1.63 percent
1087	of the member's average final compensation. Following the second
1088	year after the normal retirement date, A is 1.65 percent of the
1089	member's average final compensation. Following the third year
1090	after the normal retirement date, and for subsequent years, A is
1091	1.68 percent of the member's average final compensation.
1092	2. For creditable years of special risk service, A is:
1093	a. Two percent of the member's average final compensation
1094	for all creditable years prior to October 1, 1974;
1095	b. Three percent of the member's average final
1096	compensation for all creditable years after September 30, 1974,
1097	and before October 1, 1978;
1098	c. Two percent of the member's average final compensation
1099	for all creditable years after September 30, 1978, and before
1100	January 1, 1989;
1101	d. Two and two-tenths percent of the member's final
1102	monthly compensation for all creditable years after December 31,
1103	1988, and before January 1, 1990;
1104	e. Two and four-tenths percent of the member's average
1105	final compensation for all creditable years after December 31,
1106	1989, and before January 1, 1991;
1107	f. Two and six-tenths percent of the member's average
1108	final compensation for all creditable years after December 31,
1109	1990, and before January 1, 1992;
1110	g. Two and eight-tenths percent of the member's average
1111	final compensation for all creditable years after December 31,
1112	1991, and before January 1, 1993;
1113	h. Three percent of the member's average final
1114	compensation for all creditable years after December 31, 1992;
1115	and
1116	i. Three percent of the member's average final
1117	compensation for all creditable years of service after September
1118	30, 1978, and before January 1, 1993, for any special risk
1119	member who retires after July 1, 2000, or any member of the
1120	Special Risk Administrative Support Class entitled to retain the
1121	special risk normal retirement date who was a member of the
1122	Special Risk Class during the time period and who retires after
1123	July 1, 2000.
1124	3. For creditable years of Senior Management Service Class
1125	service after January 31, 1987, A is 2 percent;
1126	4. For creditable years of Elected Officers' Class service
1127	as a Supreme Court Justice, district court of appeal judge,
1128	circuit judge, or county court judge, A is 31/3 percent of the
1129	member's average final compensation, and for all other
1130	creditable service in such class, A is 3 percent of average
1131	final compensation;
1132	(b) B is the number of the member's years and any
1133	fractional part of a year of creditable service earned
1134	subsequent to November 30, 1970; and
1135	(c) C is the normal retirement benefit credit brought
1136	forward as of November 30, 1970, by a former member of an
1137	existing system. Such normal retirement benefit credit shall be
1138	determined as the product of X and Y when X is the percentage of
1139	average final compensation which the member would have been
1140	eligible to receive if the member had attained his or her normal
1141	retirement date as of November 30, 1970, all in accordance with
1142	the existing system under which the member is covered on
1143	November 30, 1970, and Y is average final compensation as
1144	defined in s. 121.021(25). However, any member of an existing
1145	retirement system who is eligible to retire and who does retire,
1146	become disabled, or die prior to April 15, 1971, may have his or
1147	her retirement benefits calculated on the basis of the best 5 of
1148	the last 10 years of service.
1149	(d) A member's average final compensation shall be
1150	determined by formula to obtain the coverage for the 5 highest
1151	fiscal years' salaries, calculated as provided by rule.
1152	(2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
1153	a member accumulates retirement benefits to commence at
1154	different normal retirement ages by virtue of having performed
1155	duties for an employer which would entitle him or her to
1156	benefits as both a member of the Special Risk Class and a member
1157	of either the Regular Class, Senior Management Service Class, or
1158	Elected Officers' Class, the amount of benefits payable shall be
1159	computed separately with respect to each such age and the sum of
1160	such computed amounts shall be paid as provided in this section.
1161	(3) EARLY RETIREMENT BENEFIT.--Upon retirement on his or
1162	her early retirement date, the member shall receive an immediate
1163	monthly benefit that shall begin to accrue on the first day of
1164	the month of the retirement date and be payable on the last day
1165	of that month and each month thereafter during his or her
1166	lifetime. Such benefit shall be calculated as follows:
1167	(a) The amount of each monthly payment shall be computed
1168	in the same manner as for a normal retirement benefit, in
1169	accordance with subsection (1), but shall be based on the
1170	member's average monthly compensation and creditable service as
1171	of the member's early retirement date. The benefit so computed
1172	shall be reduced by five-twelfths of 1 percent for each complete
1173	month by which the early retirement date precedes the normal
1174	retirement date of age 62 for a member of the Regular Class,
1175	Senior Management Service Class, or the Elected Officers' Class,
1176	and age 55 for a member of the Special Risk Class, or age 52 if
1177	a Special Risk member has completed 25 years of creditable
1178	service in accordance with s. 121.021(29)(b)3.
1179	(b) If the employment of a member is terminated by reason
1180	of death subsequent to the completion of 20 years of creditable
1181	service, the monthly benefit payable to the member's beneficiary
1182	shall be calculated in accordance with subsection (1), but shall
1183	be based on average monthly compensation and creditable service
1184	as of the date of death. The benefit so computed shall be
1185	reduced by five-twelfths of 1 percent for each complete month by
1186	which death precedes the normal retirement date specified above
1187	or the date on which the member would have attained 30 years of
1188	creditable service had he or she survived and continued his or
1189	her employment, whichever provides a higher benefit.
1190	(4) DISABILITY RETIREMENT BENEFIT.--
1191	(a) Disability retirement; entitlement and effective
1192	date.--
1193	1.a. A member who becomes totally and permanently
1194	disabled, as defined in paragraph (b), after completing 5 years
1195	of creditable service, or a member who becomes totally and
1196	permanently disabled in the line of duty regardless of service,
1197	shall be entitled to a monthly disability benefit; except that
1198	any member with less than 5 years of creditable service on July
1199	1, 1980, or any person who becomes a member of the Florida
1200	Retirement System on or after such date must have completed 10
1201	years of creditable service prior to becoming totally and
1202	permanently disabled in order to receive disability retirement
1203	benefits for any disability which occurs other than in the line
1204	of duty. However, if a member employed on July 1, 1980, with
1205	less than 5 years of creditable service as of that date, becomes
1206	totally and permanently disabled after completing 5 years of
1207	creditable service and is found not to have attained fully
1208	insured status for benefits under the federal Social Security
1209	Act, such member shall be entitled to a monthly disability
1210	benefit.
1211	b. Effective July 1, 2001, a member of the defined benefit
1212	retirement program who becomes totally and permanently disabled,
1213	as defined in paragraph (b), after completing 8 years of
1214	creditable service, or a member who becomes totally and
1215	permanently disabled in the line of duty regardless of service,
1216	shall be entitled to a monthly disability benefit.
1217	2. If the division has received from the employer the
1218	required documentation of the member's termination of
1219	employment, the effective retirement date for a member who
1220	applies and is approved for disability retirement shall be
1221	established by rule of the division.
1222	3. For a member who is receiving Workers' Compensation
1223	payments, the effective disability retirement date may not
1224	precede the date the member reaches Maximum Medical Improvement
1225	(MMI), unless the member terminates employment prior to reaching
1226	MMI.
1227	(b) Total and permanent disability.--A member shall be
1228	considered totally and permanently disabled if, in the opinion
1229	of the administrator, he or she is prevented, by reason of a
1230	medically determinable physical or mental impairment, from
1231	rendering useful and efficient service as an officer or
1232	employee.
1233	(c) Proof of disability.--The administrator, before
1234	approving payment of any disability retirement benefit, shall
1235	require proof that the member is totally and permanently
1236	disabled as provided herein:
1237	1. Such proof shall include the certification of the
1238	member's total and permanent disability by two licensed
1239	physicians of the state and such other evidence of disability as
1240	the administrator may require, including reports from vocational
1241	rehabilitation, evaluation, or testing specialists who have
1242	evaluated the applicant for employment.
1243	2. It must be documented that:
1244	a. The member's medical condition occurred or became
1245	symptomatic during the time the member was employed in an
1246	employee/employer relationship with his or her employer;
1247	b. The member was totally and permanently disabled at the
1248	time he or she terminated covered employment; and
1249	c. The member has not been employed with any other
1250	employer after such termination.
1251	3. If the application is for in-line-of-duty disability,
1252	in addition to the requirements of subparagraph 2., it must be
1253	documented by competent medical evidence that the disability was
1254	caused by a job-related illness or accident which occurred while
1255	the member was in an employee/employer relationship with his or
1256	her employer.
1257	4. The unavailability of an employment position that the
1258	member is physically and mentally capable of performing will not
1259	be considered as proof of total and permanent disability.
1260	(d) Election on appeal.--A member whose application for
1261	regular disability retirement has been denied and who has filed
1262	an appeal to the State Retirement Commission may, if eligible,
1263	elect to receive normal or early service retirement benefits
1264	while he or she is awaiting the decision on the appeal. However:
1265	1. If the member elects to receive service retirement
1266	benefits and disability benefits are later approved as a result
1267	of the appeal, the payment option chosen by the member may not
1268	be changed.
1269	2. If the member elects to receive early service
1270	retirement and the appeal is later denied, the member may not
1271	change his or her election of early retirement.
1272
1273	Before such regular or early retirement benefits may be paid by
1274	the division, the member must provide to the division a written
1275	statement indicating that the member understands that such
1276	changes are not permitted after he or she begins receiving the
1277	benefits.
1278	(e) Disability retirement benefit.--Upon the retirement of
1279	a member on his or her disability retirement date, the member
1280	shall receive a monthly benefit that shall begin to accrue on
1281	the first day of the month of disability retirement and shall be
1282	payable on the last day of that month and each month thereafter
1283	during his or her lifetime and continued disability.
1284	(f) Computation of disability retirement benefit.--The
1285	amount of each monthly payment shall be computed in the same
1286	manner as for a normal retirement benefit, in accordance with
1287	subsection (1), but shall be based on disability option
1288	actuarial equivalency tables and the average monthly
1289	compensation and creditable service of the member as of the
1290	disability retirement date, subject to the following conditions:
1291	1. If the member's disability occurred in the line of
1292	duty, the monthly Option 1 benefit shall not be less than:
1293	a. Forty-two percent of average monthly compensation as of
1294	the disability retirement date; or
1295	b. Sixty-five percent of the average monthly compensation
1296	as of the disability retirement date for a member of the special
1297	risk class who retires on or after July 1, 2000; or
1298	2. If the member's disability occurred other than in the
1299	line of duty, the monthly Option 1 benefit shall not be less
1300	than 25 percent of average monthly compensation as of the
1301	disability retirement date.
1302	(g) Reapplication.--A member, whose initial application
1303	for disability retirement has been denied, may reapply for
1304	disability benefits. However, such member's reapplication will
1305	be considered only if the member presents new medical evidence
1306	of a medical condition that existed prior to the member's
1307	termination of employment. The division may prescribe by rule
1308	procedures for reapplication and for review and approval or
1309	disapproval of reapplication.
1310	(h) Recovery from disability.--The administrator may
1311	require periodic reexaminations at the expense of the retirement
1312	fund. The division may adopt rules establishing procedures for
1313	conducting and review of such reexaminations.
1314	1. If the administrator finds that a member who is
1315	receiving disability benefits is, at any time prior to his or
1316	her normal retirement date, no longer disabled, the
1317	administrator shall direct that the benefits be discontinued.
1318	The decision of the administrator on this question shall be
1319	final and binding. If such member:
1320	a. Does not reenter the employ of an employer and was not
1321	vested as of the disability retirement date, he or she shall be
1322	entitled to the excess, if any, of his or her accumulated
1323	contributions over the total disability benefits received up to
1324	the date of recovery.
1325	b. Does not reenter the employ of an employer, but was
1326	vested as of the disability retirement date, he or she may elect
1327	to receive:
1328	(I) The excess, if any, of his or her accumulated
1329	contributions over the total disability benefits received up to
1330	the date of recovery; or
1331	(II) A deferred benefit commencing on the last day of the
1332	month of the normal retirement date which shall be payable on
1333	the last day of the month thereafter during his or her lifetime.
1334	The amount of such monthly benefit shall be computed in the same
1335	manner as for a normal retirement benefit, in accordance with
1336	subsection (1), but shall be based on average monthly
1337	compensation and creditable service as of the member's
1338	disability retirement date.
1339	c. Reenters employment of an employer within 6 months
1340	after recovery, the member's service will be deemed to have been
1341	continuous, but the period beginning with the first month for
1342	which he or she received a disability benefit payment and ending
1343	with the date he or she reentered employment will not be
1344	considered as creditable service for the purpose of computing
1345	benefits except as provided in sub-subparagraph d. As used in
1346	this section, the term "accumulated contributions" for such
1347	member means the excess of the member's accumulated
1348	contributions as of the disability retirement date over the
1349	total disability benefits received under paragraph (e).
1350	d. Terminates his or her disability benefit, reenters
1351	covered employment, and is continuously employed for a minimum
1352	of 1 year of creditable service, he or she may claim as
1353	creditable service the months during which he or she was
1354	receiving a disability benefit, upon payment of the required
1355	contributions. Contributions shall equal the total required
1356	employee and employer contribution rate applicable during the
1357	period the retiree received retirement benefits, multiplied
1358	times his or her rate of monthly compensation prior to the
1359	commencement of disability retirement for each month of the
1360	period claimed, plus 4 percent interest until July 1, 1975, and
1361	6.5 percent interest thereafter, compounded annually each June
1362	30 to the date of payment. If the member does not claim credit
1363	for all of the months he or she received disability benefits,
1364	the months claimed must be the most recent months of retirement.
1365	Such credit for periods of disability, when purchased under the
1366	Florida Retirement System, shall apply toward vesting
1367	requirements for eligibility to purchase additional credit for
1368	other service.
1369	2. Both the member receiving disability benefits who
1370	reenters employment and the employer employing such disability
1371	retiree shall notify the division immediately upon reemployment,
1372	and the division shall terminate such member's disability
1373	benefits, effective the first day of the month following the
1374	month in which notification of recovery is received. If the
1375	member is reemployed with a Florida Retirement System employer
1376	at the time of benefit termination, and he or she has received
1377	disability retirement benefit and salary payments concurrently
1378	prior to notifying the division, he or she may elect within 30
1379	days to:
1380	a. Retain the retirement benefits received prior to
1381	termination of disability benefits and begin receiving
1382	retirement service credit effective upon the date of termination
1383	of benefits; or
1384	b. Repay, within 12 months after his or her decision to
1385	receive service credit, the retirement benefits received for
1386	each month of reemployment prior to termination of disability
1387	benefits and begin receiving retirement service credit effective
1388	upon the date of reemployment. Any such unpaid benefits shall
1389	have compound interest of 6.5 percent added June 30.
1390
1391	A member may not receive both retirement service credit for
1392	employment and retirement benefits for the same month.
1393	3. If, after recovery of disability and reentry into
1394	covered employment, the member again becomes disabled and is
1395	again approved for disability retirement, the Option 1 monthly
1396	retirement benefit shall not be less than the Option 1 monthly
1397	benefit calculated at the time of the previous disability, plus
1398	any cost of living increases up to the time the disability
1399	benefit was terminated upon his or her reentry into covered
1400	employment.
1401	(i) Nonadmissible causes of disability.--A member shall
1402	not be entitled to receive any disability retirement benefit if
1403	the disability is a result of any of the following:
1404	1. Injury or disease sustained by the member while
1405	willfully participating in a riot, civil insurrection, or other
1406	act of violence or while committing a felony;
1407	2. Injury or disease sustained by the member after his or
1408	her employment has terminated; or
1409	3. Intentional, self-inflicted injury.
1410	(j) Disability retirement of justice or judge by order of
1411	Supreme Court.--
1412	1.If a member is a justice of the Supreme Court, judge of
1413	a district court of appeal, circuit judge, or judge of a county
1414	court who has served for 6 years or more as an elected
1415	constitutional judicial officer, including service as a judicial
1416	officer in any court abolished pursuant to Art. V of the State
1417	Constitution, and who is retired for disability by order of the
1418	Supreme Court upon recommendation of the Judicial Qualifications
1419	Commission pursuant to the provisions of Art. V of the State
1420	Constitution, the member's Option 1 monthly benefit as provided
1421	in subparagraph (6)(a)1. shall not be less than two-thirds of
1422	his or her monthly compensation as of the member's disability
1423	retirement date. Such a member may alternatively elect to
1424	receive a disability retirement benefit under any other option
1425	as provided in paragraph (6)(a).
1426	2. Should any justice or judge who is a member of the
1427	Florida Retirement System be retired for disability by order of
1428	the Supreme Court upon recommendation of the Judicial
1429	Qualifications Commission pursuant to the provisions of Art. V
1430	of the State Constitution, then all contributions to his or her
1431	account and all contributions made on his or her behalf by the
1432	employer shall be transferred to and deposited in the General
1433	Revenue Fund of the state, and there is hereby appropriated
1434	annually out of the General Revenue Fund, to be paid into the
1435	Florida Retirement System Fund, an amount necessary to pay the
1436	benefits of all justices and judges retired from the Florida
1437	Retirement System pursuant to Art. V of the State Constitution.
1438	(5) TERMINATION BENEFITS.--A member whose employment is
1439	terminated prior to retirement retains membership rights to
1440	previously earned member-noncontributory service credit, and to
1441	member-contributory service credit, if the member leaves the
1442	member contributions on deposit in his or her retirement
1443	account. If a terminated member receives a refund of member
1444	contributions, such member may reinstate membership rights to
1445	the previously earned service credit represented by the refund
1446	by completing 1 year of creditable service and repaying the
1447	refunded member contributions, plus interest.
1448	(a) A member whose employment is terminated for any reason
1449	other than death or retirement prior to becoming vested is
1450	entitled to the return of his or her accumulated contributions
1451	as of the date of termination.
1452	(b) A member whose employment is terminated for any reason
1453	other than death or retirement after becoming vested may elect
1454	to receive a deferred monthly benefit which shall begin to
1455	accrue on the first day of the month of normal or early
1456	retirement and shall be payable on the last day of that month
1457	and each month thereafter during his or her lifetime. The amount
1458	of monthly benefit shall be computed in the same manner as for a
1459	normal retirement benefit in accordance with subsection (1) or
1460	early retirement benefit in accordance with s. 121.021(30), but
1461	based on average monthly compensation and creditable service as
1462	of the date of termination.
1463	(c) In lieu of the deferred monthly benefit provided in
1464	paragraph (b), the terminated member may elect to receive a
1465	lump-sum amount equal to his or her accumulated contributions as
1466	of the date of termination.
1467	(d) If any retired member dies without having received in
1468	benefit payments an amount equal to his or her accumulated
1469	contributions, there shall be payable to his or her designated
1470	beneficiary an amount equal to the excess, if any, of the
1471	member's accumulated contributions over the total monthly
1472	payments made to the member prior to the date of death.
1473	(e) A member shall be deemed a terminated member when
1474	termination of employment has occurred as provided in s.
1475	121.021(39).
1476	(f) Any member who has been found guilty by a verdict of a
1477	jury, or by the court trying the case without a jury, of
1478	committing, aiding, or abetting any embezzlement or theft from
1479	his or her employer, bribery in connection with the employment,
1480	or other felony specified in chapter 838, except ss. 838.15 and
1481	838.16, committed prior to retirement, or who has entered a plea
1482	of guilty or of nolo contendere to such crime, or any member
1483	whose employment is terminated by reason of the member's
1484	admitted commitment, aiding, or abetting of an embezzlement or
1485	theft from his or her employer, bribery, or other felony
1486	specified in chapter 838, except ss. 838.15 and 838.16, shall
1487	forfeit all rights and benefits under this chapter, except the
1488	return of his or her accumulated contributions as of the date of
1489	termination.
1490	(g) Any elected official who is convicted by the Senate of
1491	an impeachable offense shall forfeit all rights and benefits
1492	under this chapter, except the return of his or her accumulated
1493	contributions as of the date of the conviction.
1494	(h) Any member who, prior to retirement, is adjudged by a
1495	court of competent jurisdiction to have violated any state law
1496	against strikes by public employees, or who has been found
1497	guilty by such court of violating any state law prohibiting
1498	strikes by public employees, shall forfeit all rights and
1499	benefits under this chapter, except the return of his or her
1500	accumulated contributions as of the date of the conviction.
1501	(i) Any beneficiary who by a verdict of a jury or by the
1502	court trying the case without a jury is found guilty, or who has
1503	entered a plea of guilty or nolo contendere, of unlawfully and
1504	intentionally killing or procuring the death of the member
1505	forfeits all rights to the deceased member's benefits under this
1506	chapter, and the benefits will be paid as if such beneficiary
1507	had predeceased the decedent.
1508	(j) Benefits shall not be paid by the division pending
1509	final resolution of such charges against a member or beneficiary
1510	if the resolution of such charges could require the forfeiture
1511	of benefits as provided in paragraph (f), paragraph (g),
1512	paragraph (h), or paragraph (i).
1513	(6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY
1514	RETIREMENT BENEFITS.--
1515	(a) Prior to the receipt of the first monthly retirement
1516	payment, a member shall elect to receive the retirement benefits
1517	to which he or she is entitled under subsection (1), subsection
1518	(2), subsection (3), or subsection (4) in accordance with one of
1519	the following options:
1520	1. The maximum retirement benefit payable to the member
1521	during his or her lifetime.
1522	2. A decreased retirement benefit payable to the member
1523	during his or her lifetime and, in the event of his or her death
1524	within a period of 10 years after retirement, the same monthly
1525	amount payable for the balance of such 10-year period to his or
1526	her beneficiary or, in case the beneficiary is deceased, in
1527	accordance with subsection (8) as though no beneficiary had been
1528	named.
1529	3. A decreased retirement benefit payable during the joint
1530	lifetime of both the member and his or her joint annuitant and
1531	which, after the death of either, shall continue during the
1532	lifetime of the survivor in the same amount, subject to the
1533	provisions of subsection (12).
1534	4. A decreased retirement benefit payable during the joint
1535	lifetime of the member and his or her joint annuitant and which,
1536	after the death of either, shall continue during the lifetime of
1537	the survivor in an amount equal to 662/3 percent of the amount
1538	that was payable during the joint lifetime of the member and his
1539	or her joint annuitant, subject to the provisions of subsection
1540	(12).
1541
1542	The spouse of any member who elects to receive the benefit
1543	provided under subparagraph 1. or subparagraph 2. shall be
1544	notified of and shall acknowledge any such election. The
1545	division shall establish by rule a method for selecting the
1546	appropriate actuarial factor for optional forms of benefits
1547	selected under subparagraphs 3. and 4., based on the age of the
1548	member and the joint annuitant.
1549	(b) The benefit payable under any option stated above
1550	shall be the actuarial equivalent, based on tables adopted by
1551	the administrator for this purpose, of the amount to which the
1552	member was otherwise entitled.
1553	(c) A member who elects the option in subparagraph (a)2.
1554	shall, in accordance with subsection (8), designate one or more
1555	persons to receive the benefits payable in the event of his or
1556	her death. Such persons shall be the beneficiaries of the
1557	member. The member may also designate one or more contingent
1558	beneficiaries to receive any benefits remaining upon the death
1559	of the primary beneficiary.
1560	(d) A member who elects the option in subparagraph (a)3.
1561	or subparagraph (a)4. shall, on a form provided for that
1562	purpose, designate a joint annuitant to receive the benefits
1563	which continue to be payable upon the death of the member. After
1564	benefits have commenced under the option in subparagraph (a)3.
1565	or subparagraph (a)4., the following shall apply:
1566	1. A retired member may change his or her designation of a
1567	joint annuitant only twice. If such a retired member desires to
1568	change his or her designation of a joint annuitant, he or she
1569	shall file with the division a notarized "change of joint
1570	annuitant" form and shall notify the former joint annuitant in
1571	writing of such change. Effective the first day of the next
1572	month following receipt by the division of a completed change of
1573	joint annuitant form, the division shall adjust the member's
1574	monthly benefit by the application of actuarial tables and
1575	calculations developed to ensure that the benefit paid is the
1576	actuarial equivalent of the present value of the member's
1577	current benefit. The consent of a retired member's first
1578	designated joint annuitant to any such change shall not be
1579	required. However, if either the member or the joint annuitant
1580	dies before the effective date of the request for change of
1581	joint annuitant, the requested change shall be void, and
1582	survivor benefits, if any, shall be paid as if no request had
1583	been made.
1584	2. In the event of the dissolution of marriage of a
1585	retired member and a joint annuitant, such member may make an
1586	election to nullify the joint annuitant designation of the
1587	former spouse, unless there is an existing qualified domestic
1588	relations order preventing such action. The member shall file
1589	with the division a written, notarized nullification which shall
1590	be effective on the first day of the next month following
1591	receipt by the division. Benefits shall be paid as if the former
1592	spouse predeceased the member. A member who makes such an
1593	election may not reverse the nullification but may designate a
1594	new joint annuitant in accordance with subparagraph 1.
1595	(e) The election of an option shall be null and void if
1596	the member dies before the effective date of retirement.
1597	(f) A member who elects to receive benefits under the
1598	option in subparagraph (a)3. may designate one or more qualified
1599	persons, either a spouse or other dependent, as his or her joint
1600	annuitant to receive the benefits after the member's death in
1601	whatever proportion he or she so assigns to each person named as
1602	joint annuitant. The division shall adopt appropriate actuarial
1603	tables and calculations necessary to ensure that the benefit
1604	paid is the actuarial equivalent of the benefit to which the
1605	member is otherwise entitled under the option in subparagraph
1606	(a)1.
1607	(g) Upon the death of a retired member or beneficiary
1608	receiving monthly benefits under this chapter, the monthly
1609	benefits shall be paid through the last day of the month of
1610	death and shall terminate, or be adjusted, if applicable, as of
1611	that date in accordance with the optional form of benefit
1612	selected at the time of retirement.
1613	(h) The option selected or determined for payment of
1614	benefits as provided in this section shall be final and
1615	irrevocable at the time a benefit payment is cashed or deposited
1616	or credited to the Deferred Retirement Option Program as
1617	provided in subsection (13).
1618	(7) DEATH BENEFITS.--
1619	(a) If the employment of a member is terminated by reason
1620	of his or her death prior to being vested, except as provided in
1621	paragraph (f), there shall be payable to his or her designated
1622	beneficiary the member's accumulated contributions.
1623	(b) If the employment of an active member who may or may
1624	not have applied for retirement is terminated by reason of his
1625	or her death subsequent to becoming vested and prior to his or
1626	her effective date of retirement, if established, it shall be
1627	assumed that the member retired as of the date of death in
1628	accordance with subsection (1) if eligible for normal retirement
1629	benefits, subsection (2) if eligible for benefits payable for
1630	dual normal retirement, or subsection (3) if eligible for early
1631	retirement benefits. Benefits payable to the designated
1632	beneficiary shall be as follows:
1633	1. For a beneficiary who qualifies as a joint annuitant,
1634	the optional form of payment provided in accordance with
1635	subparagraph (6)(a)3. shall be paid for the joint annuitant's
1636	lifetime.
1637	2. For a beneficiary who does not qualify as a joint
1638	annuitant, no continuing monthly benefit shall be paid and the
1639	beneficiary shall be entitled only to the return of the member's
1640	personal contributions. If there is no monetary interest in the
1641	member's retirement account for which such beneficiary is
1642	eligible, the beneficiary shall be the next named beneficiary
1643	or, if no other beneficiary is named, the beneficiary shall be
1644	the next eligible beneficiary according to subsection (8).
1645	(c) If a retiring member dies on or after the effective
1646	date of retirement, but prior to a benefit payment being cashed
1647	or deposited, or credited to the Deferred Retirement Option
1648	Program, benefits shall be paid as follows:
1649	1. For a designated beneficiary who qualifies as a joint
1650	annuitant, benefits shall be paid in the optional form of
1651	payment provided in subparagraph (6)(a)3. for the joint
1652	annuitant's lifetime or, if the member chose the optional form
1653	of payment provided in subparagraph (6)(a)2., the joint
1654	annuitant may select the form provided in either subparagraph
1655	(6)(a)2. or subparagraph (6)(a)3.
1656	2. For a designated beneficiary who does not qualify as a
1657	joint annuitant, any benefits payable shall be paid as provided
1658	in the option selected by the member; or if the member has not
1659	selected an option, benefits shall be paid in the optional form
1660	of payment provided in subparagraph (6)(a)1.
1661	(d) Notwithstanding any other provision in this chapter to
1662	the contrary, with the exception of the Deferred Retirement
1663	Option Program, as provided in subsection (13):
1664	1. The surviving spouse of any member killed in the line
1665	of duty may receive a monthly pension equal to one-half of the
1666	monthly salary being received by the member at the time of death
1667	for the rest of the surviving spouse's lifetime or, if the
1668	member was vested, such surviving spouse may elect to receive a
1669	benefit as provided in paragraph (b). Benefits provided by this
1670	paragraph shall supersede any other distribution that may have
1671	been provided by the member's designation of beneficiary.
1672	2. If the surviving spouse of a member killed in the line
1673	of duty dies, the monthly payments which would have been payable
1674	to such surviving spouse had such surviving spouse lived shall
1675	be paid for the use and benefit of such member's child or
1676	children under 18 years of age and unmarried until the 18th
1677	birthday of the member's youngest child.
1678	3. If a member killed in the line of duty leaves no
1679	surviving spouse but is survived by a child or children under 18
1680	years of age, the benefits provided by subparagraph 1., normally
1681	payable to a surviving spouse, shall be paid for the use and
1682	benefit of such member's child or children under 18 years of age
1683	and unmarried until the 18th birthday of the member's youngest
1684	child.
1685	4. The surviving spouse of a member whose benefit
1686	terminated because of remarriage shall have the benefit
1687	reinstated beginning July 1, 1993, at an amount that would have
1688	been payable had the benefit not been terminated.
1689	(e) The surviving spouse or other dependent of any member,
1690	except a member who participated in the Deferred Retirement
1691	Option Program, whose employment is terminated by death shall,
1692	upon application to the administrator, be permitted to pay the
1693	required contributions for any service performed by the member
1694	which could have been claimed by the member at the time of his
1695	or her death. Such service shall be added to the creditable
1696	service of the member and shall be used in the calculation of
1697	any benefits which may be payable to the surviving spouse or
1698	other surviving dependent.
1699	(f) Notwithstanding any other provisions in this chapter
1700	to the contrary and upon application to the administrator, an
1701	eligible joint annuitant, of a member whose employment is
1702	terminated by death within 1 year of such member satisfying the
1703	service requirements for vesting and retirement eligibility,
1704	shall be permitted to purchase only the additional service
1705	credit necessary to vest and qualify for retirement benefits,
1706	not to exceed a total of 1 year of credit, by one or a
1707	combination of the following methods:
1708	1. Such eligible joint annuitant may use the deceased
1709	member's accumulated hours of annual, sick, and compensatory
1710	leave to purchase additional creditable service, on an hour by
1711	hour basis, provided that such deceased member's accumulated
1712	leave is sufficient to cover the additional months required. For
1713	each month of service credit needed prior to the final month,
1714	credit for the total number of work hours in that month must be
1715	purchased, using an equal number of the deceased member's
1716	accumulated leave hours. Service credit required for the final
1717	month in which the deceased member would have become vested
1718	shall be awarded upon the purchase of 1 hour of credit. Such
1719	eligible joint annuitant shall pay the contribution rate in
1720	effect for the period of time being claimed for the deceased
1721	member's class of membership, multiplied by such member's
1722	monthly salary at the time of death, plus 6.5 percent interest
1723	compounded annually. The accumulated leave payment used in the
1724	average final compensation shall not include that portion of the
1725	payment that represents any leave hours used in the purchase of
1726	such creditable service.
1727	2. Such eligible joint annuitant may purchase additional
1728	months of creditable service for any periods of out-of-state
1729	service as provided in s. 121.1115, and in-state service as
1730	provided in s. 121.1122, that the deceased member would have
1731	been eligible to purchase prior to his or her death.
1732
1733	Service purchased under this paragraph shall be added to the
1734	creditable service of the member and used to vest for retirement
1735	eligibility, and shall be used in the calculation of any
1736	benefits which may be payable to the eligible joint annuitant.
1737	Any benefits paid in accordance with this paragraph shall only
1738	be made prospectively.
1739	(g) Notwithstanding any other provisions in this chapter
1740	to the contrary, if any member who is vested dies and the
1741	surviving spouse receives a refund of the accumulated
1742	contributions made to the retirement trust fund, such spouse may
1743	pay to the Division of Retirement an amount equal to the sum of
1744	the amount of the deceased member's accumulated contributions
1745	previously refunded plus interest at 4 percent compounded
1746	annually each June 30 from the date of refund until July 1,
1747	1975, and 6.5 percent interest compounded annually thereafter,
1748	until full payment is made, and receive the monthly retirement
1749	benefit as provided in paragraph (b).
1750	(h) The designated beneficiary who is the surviving spouse
1751	or other dependent of a member whose employment is terminated by
1752	death subsequent to becoming vested, but prior to actual
1753	retirement, may elect to receive a deferred monthly benefit as
1754	if the member had lived and had elected a deferred monthly
1755	benefit, as provided in paragraph (5)(b), calculated on the
1756	basis of the average final compensation and creditable service
1757	of the member at his or her death and the age the member would
1758	have attained on the commencement date of the deferred benefit
1759	elected by the beneficiary, paid in accordance with option 3 of
1760	paragraph (6)(a).
1761	(8) DESIGNATION OF BENEFICIARIES.--
1762	(a) Each member may, on a form provided for that purpose,
1763	signed and filed with the division, designate a choice of one or
1764	more persons, named sequentially or jointly, as his or her
1765	beneficiary who shall receive the benefits, if any, which may be
1766	payable in the event of the member's death pursuant to the
1767	provisions of this chapter. If no beneficiary is named in the
1768	manner provided above, or if no beneficiary designated by the
1769	member survives the member, the beneficiary shall be the spouse
1770	of the deceased, if living. If the member's spouse is not alive
1771	at his or her death, the beneficiary shall be the living
1772	children of the member. If no children survive, the beneficiary
1773	shall be the member's father or mother, if living; otherwise,
1774	the beneficiary shall be the member's estate. The beneficiary
1775	most recently designated by a member on a form or letter filed
1776	with the division shall be the beneficiary entitled to any
1777	benefits payable at the time of the member's death, except that
1778	benefits shall be paid as provided in paragraph (7)(d) when
1779	death occurs in the line of duty. Notwithstanding any other
1780	provisions in this subsection to the contrary, for a member who
1781	dies prior to his or her effective date of retirement on or
1782	after January 1, 1999, the spouse at the time of death shall be
1783	the member's beneficiary unless such member designates a
1784	different beneficiary as provided herein subsequent to the
1785	member's most recent marriage.
1786	(b) A designated beneficiary of a retirement account for
1787	whom there is a monetary interest may disclaim his or her
1788	monetary interest as provided in s. 689.21, and in accordance
1789	with division rules governing such disclaimers. Such disclaimer
1790	must be filed within 24 months after the event that created the
1791	interest, that is, the death of the member or annuitant.
1792	(c) Notwithstanding the member's designation of benefits
1793	to be paid through a trust to a beneficiary that is a natural
1794	person as provided in s. 121.021(46), and notwithstanding the
1795	provisions of the trust, benefits shall be paid directly to the
1796	beneficiary if such person is no longer a minor or incapacitated
1797	as defined in s. 744.102(10) and (11).
1798	(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1799	(a) Any person who is retired under this chapter, except
1800	under the disability retirement provisions of subsection (4),
1801	may be employed by an employer that does not participate in a
1802	state-administered retirement system and may receive
1803	compensation from that employment without limiting or
1804	restricting in any way the retirement benefits payable to that
1805	person.
1806	(b)1. Any person who is retired under this chapter, except
1807	under the disability retirement provisions of subsection (4),
1808	may be reemployed by any private or public employer after
1809	retirement and receive retirement benefits and compensation from
1810	his or her employer without any limitations, except that a
1811	person may not receive both a salary from reemployment with any
1812	agency participating in the Florida Retirement System and
1813	retirement benefits under this chapter for a period of 12 months
1814	immediately subsequent to the date of retirement. However, a
1815	DROP participant shall continue employment and receive a salary
1816	during the period of participation in the Deferred Retirement
1817	Option Program, as provided in subsection (13).
1818	2. Any person to whom the limitation in subparagraph 1.
1819	applies who violates such reemployment limitation and who is
1820	reemployed with any agency participating in the Florida
1821	Retirement System before completion of the 12-month limitation
1822	period shall give timely notice of this fact in writing to the
1823	employer and to the division and shall have his or her
1824	retirement benefits suspended for the balance of the 12-month
1825	limitation period. Any person employed in violation of this
1826	paragraph and any employing agency which knowingly employs or
1827	appoints such person without notifying the Division of
1828	Retirement to suspend retirement benefits shall be jointly and
1829	severally liable for reimbursement to the retirement trust fund
1830	of any benefits paid during the reemployment limitation period.
1831	To avoid liability, such employing agency shall have a written
1832	statement from the retiree that he or she is not retired from a
1833	state-administered retirement system. Any retirement benefits
1834	received while reemployed during this reemployment limitation
1835	period shall be repaid to the retirement trust fund, and
1836	retirement benefits shall remain suspended until such repayment
1837	has been made. Benefits suspended beyond the reemployment
1838	limitation shall apply toward repayment of benefits received in
1839	violation of the reemployment limitation.
1840	3. A district school board may reemploy a retired member
1841	as a substitute or hourly teacher, education paraprofessional,
1842	transportation assistant, bus driver, or food service worker on
1843	a noncontractual basis after he or she has been retired for 1
1844	calendar month, in accordance with s. 121.021(39). Any retired
1845	member who is reemployed within 1 calendar month after
1846	retirement shall void his or her application for retirement
1847	benefits. District school boards reemploying such teachers,
1848	education paraprofessionals, transportation assistants, bus
1849	drivers, or food service workers are subject to the retirement
1850	contribution required by subparagraph 7. Reemployment of a
1851	retired member as a substitute or hourly teacher, education
1852	paraprofessional, transportation assistant, bus driver, or food
1853	service worker is limited to 780 hours during the first 12
1854	months of his or her retirement. Any retired member reemployed
1855	for more than 780 hours during his or her first 12 months of
1856	retirement shall give timely notice in writing to the employer
1857	and to the division of the date he or she will exceed the
1858	limitation. The division shall suspend his or her retirement
1859	benefits for the remainder of the first 12 months of retirement.
1860	Any person employed in violation of this subparagraph and any
1861	employing agency which knowingly employs or appoints such person
1862	without notifying the Division of Retirement to suspend
1863	retirement benefits shall be jointly and severally liable for
1864	reimbursement to the retirement trust fund of any benefits paid
1865	during the reemployment limitation period. To avoid liability,
1866	such employing agency shall have a written statement from the
1867	retiree that he or she is not retired from a state-administered
1868	retirement system. Any retirement benefits received by a retired
1869	member while reemployed in excess of 780 hours during the first
1870	12 months of retirement shall be repaid to the Retirement System
1871	Trust Fund, and his or her retirement benefits shall remain
1872	suspended until repayment is made. Benefits suspended beyond the
1873	end of the retired member's first 12 months of retirement shall
1874	apply toward repayment of benefits received in violation of the
1875	780-hour reemployment limitation.
1876	4. A community college board of trustees may reemploy a
1877	retired member as an adjunct instructor, that is, an instructor
1878	who is noncontractual and part-time, or as a participant in a
1879	phased retirement program within the Florida Community College
1880	System, after he or she has been retired for 1 calendar month,
1881	in accordance with s. 121.021(39). Any retired member who is
1882	reemployed within 1 calendar month after retirement shall void
1883	his or her application for retirement benefits. Boards of
1884	trustees reemploying such instructors are subject to the
1885	retirement contribution required in subparagraph 7. A retired
1886	member may be reemployed as an adjunct instructor for no more
1887	than 780 hours during the first 12 months of retirement. Any
1888	retired member reemployed for more than 780 hours during the
1889	first 12 months of retirement shall give timely notice in
1890	writing to the employer and to the division of the date he or
1891	she will exceed the limitation. The division shall suspend his
1892	or her retirement benefits for the remainder of the first 12
1893	months of retirement. Any person employed in violation of this
1894	subparagraph and any employing agency which knowingly employs or
1895	appoints such person without notifying the Division of
1896	Retirement to suspend retirement benefits shall be jointly and
1897	severally liable for reimbursement to the retirement trust fund
1898	of any benefits paid during the reemployment limitation period.
1899	To avoid liability, such employing agency shall have a written
1900	statement from the retiree that he or she is not retired from a
1901	state-administered retirement system. Any retirement benefits
1902	received by a retired member while reemployed in excess of 780
1903	hours during the first 12 months of retirement shall be repaid
1904	to the Retirement System Trust Fund, and retirement benefits
1905	shall remain suspended until repayment is made. Benefits
1906	suspended beyond the end of the retired member's first 12 months
1907	of retirement shall apply toward repayment of benefits received
1908	in violation of the 780-hour reemployment limitation.
1909	5. The State University System may reemploy a retired
1910	member as an adjunct faculty member or as a participant in a
1911	phased retirement program within the State University System
1912	after the retired member has been retired for 1 calendar month,
1913	in accordance with s. 121.021(39). Any retired member who is
1914	reemployed within 1 calendar month after retirement shall void
1915	his or her application for retirement benefits. The State
1916	University System is subject to the retired contribution
1917	required in subparagraph 7., as appropriate. A retired member
1918	may be reemployed as an adjunct faculty member or a participant
1919	in a phased retirement program for no more than 780 hours during
1920	the first 12 months of his or her retirement. Any retired member
1921	reemployed for more than 780 hours during the first 12 months of
1922	retirement shall give timely notice in writing to the employer
1923	and to the division of the date he or she will exceed the
1924	limitation. The division shall suspend his or her retirement
1925	benefits for the remainder of the first 12 months of retirement.
1926	Any person employed in violation of this subparagraph and any
1927	employing agency which knowingly employs or appoints such person
1928	without notifying the Division of Retirement to suspend
1929	retirement benefits shall be jointly and severally liable for
1930	reimbursement to the retirement trust fund of any benefits paid
1931	during the reemployment limitation period. To avoid liability,
1932	such employing agency shall have a written statement from the
1933	retiree that he or she is not retired from a state-administered
1934	retirement system. Any retirement benefits received by a retired
1935	member while reemployed in excess of 780 hours during the first
1936	12 months of retirement shall be repaid to the Retirement System
1937	Trust Fund, and retirement benefits shall remain suspended until
1938	repayment is made. Benefits suspended beyond the end of the
1939	retired member's first 12 months of retirement shall apply
1940	toward repayment of benefits received in violation of the 780-
1941	hour reemployment limitation.
1942	6. The Board of Trustees of the Florida School for the
1943	Deaf and the Blind may reemploy a retired member as a substitute
1944	teacher, substitute residential instructor, or substitute nurse
1945	on a noncontractual basis after he or she has been retired for 1
1946	calendar month, in accordance with s. 121.021(39). Any retired
1947	member who is reemployed within 1 calendar month after
1948	retirement shall void his or her application for retirement
1949	benefits. The Board of Trustees of the Florida School for the
1950	Deaf and the Blind reemploying such teachers, residential
1951	instructors, or nurses is subject to the retirement contribution
1952	required by subparagraph 7. Reemployment of a retired member as
1953	a substitute teacher, substitute residential instructor, or
1954	substitute nurse is limited to 780 hours during the first 12
1955	months of his or her retirement. Any retired member reemployed
1956	for more than 780 hours during the first 12 months of retirement
1957	shall give timely notice in writing to the employer and to the
1958	division of the date he or she will exceed the limitation. The
1959	division shall suspend his or her retirement benefits for the
1960	remainder of the first 12 months of retirement. Any person
1961	employed in violation of this subparagraph and any employing
1962	agency which knowingly employs or appoints such person without
1963	notifying the Division of Retirement to suspend retirement
1964	benefits shall be jointly and severally liable for reimbursement
1965	to the retirement trust fund of any benefits paid during the
1966	reemployment limitation period. To avoid liability, such
1967	employing agency shall have a written statement from the retiree
1968	that he or she is not retired from a state-administered
1969	retirement system. Any retirement benefits received by a retired
1970	member while reemployed in excess of 780 hours during the first
1971	12 months of retirement shall be repaid to the Retirement System
1972	Trust Fund, and his or her retirement benefits shall remain
1973	suspended until payment is made. Benefits suspended beyond the
1974	end of the retired member's first 12 months of retirement shall
1975	apply toward repayment of benefits received in violation of the
1976	780-hour reemployment limitation.
1977	7. The employment by an employer of any retiree or DROP
1978	participant of any state-administered retirement system shall
1979	have no effect on the average final compensation or years of
1980	creditable service of the retiree or DROP participant. Prior to
1981	July 1, 1991, upon employment of any person, other than an
1982	elected officer as provided in s. 121.053, who has been retired
1983	under any state-administered retirement program, the employer
1984	shall pay retirement contributions in an amount equal to the
1985	unfunded actuarial liability portion of the employer
1986	contribution which would be required for regular members of the
1987	Florida Retirement System. Effective July 1, 1991, contributions
1988	shall be made as provided in s. 121.122 for retirees with
1989	renewed membership or subsection (13) with respect to DROP
1990	participants.
1991	8. Any person who has previously retired and who is
1992	holding an elective public office or an appointment to an
1993	elective public office eligible for the Elected Officers' Class
1994	on or after July 1, 1990, shall be enrolled in the Florida
1995	Retirement System as provided in s. 121.053(1)(b) or, if holding
1996	an elective public office that does not qualify for the Elected
1997	Officers' Class on or after July 1, 1991, shall be enrolled in
1998	the Florida Retirement System as provided in s. 121.122, and
1999	shall continue to receive retirement benefits as well as
2000	compensation for the elected officer's service for as long as he
2001	or she remains in elective office. However, any retired member
2002	who served in an elective office prior to July 1, 1990,
2003	suspended his or her retirement benefit, and had his or her
2004	Florida Retirement System membership reinstated shall, upon
2005	retirement from such office, have his or her retirement benefit
2006	recalculated to include the additional service and compensation
2007	earned.
2008	9. Any person who is holding an elective public office
2009	which is covered by the Florida Retirement System and who is
2010	concurrently employed in nonelected covered employment may elect
2011	to retire while continuing employment in the elective public
2012	office, provided that he or she shall be required to terminate
2013	his or her nonelected covered employment. Any person who
2014	exercises this election shall receive his or her retirement
2015	benefits in addition to the compensation of the elective office
2016	without regard to the time limitations otherwise provided in
2017	this subsection. No person who seeks to exercise the provisions
2018	of this subparagraph, as the same existed prior to May 3, 1984,
2019	shall be deemed to be retired under those provisions, unless
2020	such person is eligible to retire under the provisions of this
2021	subparagraph, as amended by chapter 84-11, Laws of Florida.
2022	10. The limitations of this paragraph apply to
2023	reemployment in any capacity with an "employer" as defined in s.
2024	121.021(10), irrespective of the category of funds from which
2025	the person is compensated.
2026	11. An employing agency may reemploy a retired member as a
2027	firefighter or paramedic after the retired member has been
2028	retired for 1 calendar month, in accordance with s. 121.021(39).
2029	Any retired member who is reemployed within 1 calendar month
2030	after retirement shall void his or her application for
2031	retirement benefits. The employing agency reemploying such
2032	firefighter or paramedic is subject to the retired contribution
2033	required in subparagraph 8. Reemployment of a retired
2034	firefighter or paramedic is limited to no more than 780 hours
2035	during the first 12 months of his or her retirement. Any retired
2036	member reemployed for more than 780 hours during the first 12
2037	months of retirement shall give timely notice in writing to the
2038	employer and to the division of the date he or she will exceed
2039	the limitation. The division shall suspend his or her retirement
2040	benefits for the remainder of the first 12 months of retirement.
2041	Any person employed in violation of this subparagraph and any
2042	employing agency which knowingly employs or appoints such person
2043	without notifying the Division of Retirement to suspend
2044	retirement benefits shall be jointly and severally liable for
2045	reimbursement to the Retirement System Trust Fund of any
2046	benefits paid during the reemployment limitation period. To
2047	avoid liability, such employing agency shall have a written
2048	statement from the retiree that he or she is not retired from a
2049	state-administered retirement system. Any retirement benefits
2050	received by a retired member while reemployed in excess of 780
2051	hours during the first 12 months of retirement shall be repaid
2052	to the Retirement System Trust Fund, and retirement benefits
2053	shall remain suspended until repayment is made. Benefits
2054	suspended beyond the end of the retired member's first 12 months
2055	of retirement shall apply toward repayment of benefits received
2056	in violation of the 780-hour reemployment limitation.
2057	(10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the
2058	intent of the Legislature that future benefit increases enacted
2059	into law in this chapter shall be financed concurrently by
2060	increased contributions or other adequate funding, and such
2061	funding shall be based on sound actuarial data as developed by
2062	the actuary or state retirement actuary, as provided in ss.
2063	121.021(6) and 121.192.
2064	(11) A member who becomes eligible to retire and has
2065	accumulated the maximum benefit of 100 percent of average final
2066	compensation may continue in active service, and, if upon the
2067	member's retirement the member elects to receive a retirement
2068	compensation pursuant to subsection (2), subsection (6), or
2069	subsection (7), the actuarial equivalent percentage factor
2070	applicable to the age of such member at the time the member
2071	reached the maximum benefit and to the age, at that time, of the
2072	member's spouse shall determine the amount of benefits to be
2073	paid.
2074	(12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR
2075	BENEFITS.--Notwithstanding any provision of this chapter to the
2076	contrary, for members with an effective date of retirement, or
2077	date of death if prior to retirement, on or after January 1,
2078	1996, the named joint annuitant, as defined in s.
2079	121.021(28)(b), who is eligible to receive benefits under
2080	subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive
2081	the maximum monthly retirement benefit that would have been
2082	payable to the member under subparagraph (6)(a)1.; however,
2083	payment of such benefit shall cease the month the joint
2084	annuitant attains age 25 unless such joint annuitant is disabled
2085	and incapable of self-support, in which case, benefits shall
2086	cease when the joint annuitant is no longer disabled. The
2087	administrator may require proof of disability or continued
2088	disability in the same manner as is provided for a member
2089	seeking or receiving a disability retirement benefit under
2090	subsection (4).
2091	(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
2092	subject to the provisions of this section, the Deferred
2093	Retirement Option Program, hereinafter referred to as the DROP,
2094	is a program under which an eligible member of the Florida
2095	Retirement System may elect to participate, deferring receipt of
2096	retirement benefits while continuing employment with his or her
2097	Florida Retirement System employer. The deferred monthly
2098	benefits shall accrue in the System Trust Fund on behalf of the
2099	participant, plus interest compounded monthly, for the specified
2100	period of the DROP participation, as provided in paragraph (c).
2101	Upon termination of employment, the participant shall receive
2102	the total DROP benefits and begin to receive the previously
2103	determined normal retirement benefits. Participation in the DROP
2104	does not guarantee employment for the specified period of DROP.
2105	(a) Eligibility of member to participate in the DROP.--All
2106	active Florida Retirement System members in a regularly
2107	established position, and all active members of either the
2108	Teachers' Retirement System established in chapter 238 or the
2109	State and County Officers' and Employees' Retirement System
2110	established in chapter 122 which systems are consolidated within
2111	the Florida Retirement System under s. 121.011, are eligible to
2112	elect participation in the DROP provided that:
2113	1. The member is not a renewed member of the Florida
2114	Retirement System under s. 121.122, or a member of the State
2115	Community College System Optional Retirement Program under s.
2116	121.051, the Senior Management Service Optional Annuity Program
2117	under s. 121.055, or the optional retirement program for the
2118	State University System under s. 121.35.
2119	2. Except as provided in subparagraph 6., election to
2120	participate is made within 12 months immediately following the
2121	date on which the member first reaches normal retirement date,
2122	or, for a member who reaches normal retirement date based on
2123	service before he or she reaches age 62, or age 55 for Special
2124	Risk Class members, election to participate may be deferred to
2125	the 12 months immediately following the date the member attains
2126	57, or age 52 for Special Risk Class members. For a member who
2127	first reached normal retirement date or the deferred eligibility
2128	date described above prior to the effective date of this
2129	section, election to participate shall be made within 12 months
2130	after the effective date of this section. A member who fails to
2131	make an election within such 12-month limitation period shall
2132	forfeit all rights to participate in the DROP. The member shall
2133	advise his or her employer and the division in writing of the
2134	date on which the DROP shall begin. Such beginning date may be
2135	subsequent to the 12-month election period, but must be within
2136	the 60-month limitation period as provided in subparagraph (b)1.
2137	When establishing eligibility of the member to participate in
2138	the DROP for the 60-month maximum participation period, the
2139	member may elect to include or exclude any optional service
2140	credit purchased by the member from the total service used to
2141	establish the normal retirement date. A member with dual normal
2142	retirement dates shall be eligible to elect to participate in
2143	DROP within 12 months after attaining normal retirement date in
2144	either class.
2145	3. The employer of a member electing to participate in the
2146	DROP, or employers if dually employed, shall acknowledge in
2147	writing to the division the date the member's participation in
2148	the DROP begins and the date the member's employment and DROP
2149	participation will terminate.
2150	4. Simultaneous employment of a participant by additional
2151	Florida Retirement System employers subsequent to the
2152	commencement of participation in the DROP shall be permissible
2153	provided such employers acknowledge in writing a DROP
2154	termination date no later than the participant's existing
2155	termination date or the 60-month limitation period as provided
2156	in subparagraph (b)1.
2157	5. A DROP participant may change employers while
2158	participating in the DROP, subject to the following:
2159	a. A change of employment must take place without a break
2160	in service so that the member receives salary for each month of
2161	continuous DROP participation. If a member receives no salary
2162	during a month, DROP participation shall cease unless the
2163	employer verifies a continuation of the employment relationship
2164	for such participant pursuant to s. 121.021(39)(b).
2165	b. Such participant and new employer shall notify the
2166	division on forms required by the division as to the identity of
2167	the new employer.
2168	c. The new employer shall acknowledge, in writing, the
2169	participant's DROP termination date, which may be extended but
2170	not beyond the original 60-month period provided in subparagraph
2171	(b)1., shall acknowledge liability for any additional retirement
2172	contributions and interest required if the participant fails to
2173	timely terminate employment, and shall be subject to the
2174	adjustment required in sub-subparagraph (c)5.d.
2175	6. Effective July 1, 2001, for instructional personnel as
2176	defined in s. 1012.01(2), election to participate in the DROP
2177	shall be made at any time following the date on which the member
2178	first reaches normal retirement date. The member shall advise
2179	his or her employer and the division in writing of the date on
2180	which the Deferred Retirement Option Program shall begin. When
2181	establishing eligibility of the member to participate in the
2182	DROP for the 60-month maximum participation period, as provided
2183	in subparagraph (b)1., the member may elect to include or
2184	exclude any optional service credit purchased by the member from
2185	the total service used to establish the normal retirement date.
2186	A member with dual normal retirement dates shall be eligible to
2187	elect to participate in either class.
2188	(b) Participation in the DROP.--
2189	1. An eligible member may elect to participate in the DROP
2190	for a period not to exceed a maximum of 60 calendar months
2191	immediately following the date on which the member first reaches
2192	his or her normal retirement date or the date to which he or she
2193	is eligible to defer his or her election to participate as
2194	provided in subparagraph (a)2. However, a member who has reached
2195	normal retirement date prior to the effective date of the DROP
2196	shall be eligible to participate in the DROP for a period of
2197	time not to exceed 60 calendar months immediately following the
2198	effective date of the DROP, except a member of the Special Risk
2199	Class who has reached normal retirement date prior to the
2200	effective date of the DROP and whose total accrued value exceeds
2201	75 percent of average final compensation as of his or her
2202	effective date of retirement shall be eligible to participate in
2203	the DROP for no more than 36 calendar months immediately
2204	following the effective date of the DROP.
2205	2. Upon deciding to participate in the DROP, the member
2206	shall submit, on forms required by the division:
2207	a. A written election to participate in the DROP;
2208	b. Selection of the DROP participation and termination
2209	dates, which satisfy the limitations stated in paragraph (a) and
2210	subparagraph 1. Such termination date shall be in a binding
2211	letter of resignation with the employer, establishing a deferred
2212	termination date. The member may change the termination date
2213	within the limitations of subparagraph 1., but only with the
2214	written approval of his or her employer;
2215	c. A properly completed DROP application for service
2216	retirement as provided in this section; and
2217	d. Any other information required by the division.
2218	3. The DROP participant shall be a retiree under the
2219	Florida Retirement System for all purposes, except for paragraph
2220	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
2221	and 121.122. However, participation in the DROP does not alter
2222	the participant's employment status and such employee shall not
2223	be deemed retired from employment until his or her deferred
2224	resignation is effective and termination occurs as provided in
2225	s. 121.021(39).
2226	4. Elected officers shall be eligible to participate in
2227	the DROP subject to the following:
2228	a. An elected officer who reaches normal retirement date
2229	during a term of office may defer the election to participate in
2230	the DROP until the next succeeding term in that office. Such
2231	elected officer who exercises this option may participate in the
2232	DROP for up to 60 calendar months or a period of no longer than
2233	such succeeding term of office, whichever is less.
2234	b. An elected or a nonelected participant may run for a
2235	term of office while participating in DROP and, if elected,
2236	extend the DROP termination date accordingly, except, however,
2237	if such additional term of office exceeds the 60-month
2238	limitation established in subparagraph 1., and the officer does
2239	not resign from office within such 60-month limitation, the
2240	retirement and the participant' s DROP shall be null and void as
2241	provided in sub-subparagraph (c)5.d.
2242	c. An elected officer who is dually employed and elects to
2243	participate in DROP shall be required to satisfy the definition
2244	of termination within the 60-month limitation period as provided
2245	in subparagraph 1. for the nonelected position and may continue
2246	employment as an elected officer as provided in s. 121.053. The
2247	elected officer will be enrolled as a renewed member in the
2248	Elected Officers' Class or the Regular Class, as provided in ss.
2249	121.053 and 121.22, on the first day of the month after
2250	termination of employment in the nonelected position and
2251	termination of DROP. Distribution of the DROP benefits shall be
2252	made as provided in paragraph (c).
2253	(c) Benefits payable under the DROP.--
2254	1. Effective with the date of DROP participation, the
2255	member's initial normal monthly benefit, including creditable
2256	service, optional form of payment, and average final
2257	compensation, and the effective date of retirement shall be
2258	fixed. The beneficiary established under the Florida Retirement
2259	System shall be the beneficiary eligible to receive any DROP
2260	benefits payable if the DROP participant dies prior to the
2261	completion of the period of DROP participation. In the event a
2262	joint annuitant predeceases the member, the member may name a
2263	beneficiary to receive accumulated DROP benefits payable. Such
2264	retirement benefit, the annual cost of living adjustments
2265	provided in s. 121.101, and interest shall accrue monthly in the
2266	System Trust Fund. Such interest shall accrue at an effective
2267	annual rate of 6.5 percent compounded monthly, on the prior
2268	month's accumulated ending balance, up to the month of
2269	termination or death.
2270	2. Each employee who elects to participate in the DROP
2271	shall be allowed to elect to receive a lump-sum payment for
2272	accrued annual leave earned in accordance with agency policy
2273	upon beginning participation in the DROP. Such accumulated leave
2274	payment certified to the division upon commencement of DROP
2275	shall be included in the calculation of the member's average
2276	final compensation. The employee electing such lump-sum payment
2277	upon beginning participation in DROP will not be eligible to
2278	receive a second lump-sum payment upon termination, except to
2279	the extent the employee has earned additional annual leave which
2280	combined with the original payment does not exceed the maximum
2281	lump-sum payment allowed by the employing agency's policy or
2282	rules. Such early lump-sum payment shall be based on the hourly
2283	wage of the employee at the time he or she begins participation
2284	in the DROP. If the member elects to wait and receive such lump-
2285	sum payment upon termination of DROP and termination of
2286	employment with the employer, any accumulated leave payment made
2287	at that time cannot be included in the member's retirement
2288	benefit, which was determined and fixed by law when the employee
2289	elected to participate in the DROP.
2290	3. The effective date of DROP participation and the
2291	effective date of retirement of a DROP participant shall be the
2292	first day of the month selected by the member to begin
2293	participation in the DROP, provided such date is properly
2294	established, with the written confirmation of the employer, and
2295	the approval of the division, on forms required by the division.
2296	4. Normal retirement benefits and interest thereon shall
2297	continue to accrue in the DROP until the established termination
2298	date of the DROP, or until the participant terminates employment
2299	or dies prior to such date. Although individual DROP accounts
2300	shall not be established, a separate accounting of each
2301	participant's accrued benefits under the DROP shall be
2302	calculated and provided to participants.
2303	5. At the conclusion of the participant's DROP, the
2304	division shall distribute the participant's total accumulated
2305	DROP benefits, subject to the following provisions:
2306	a. The division shall receive verification by the
2307	participant's employer or employers that such participant has
2308	terminated employment as provided in s. 121.021(39)(b).
2309	b. The terminated DROP participant or, if deceased, such
2310	participant's named beneficiary, shall elect on forms provided
2311	by the division to receive payment of the DROP benefits in
2312	accordance with one of the options listed below. For a
2313	participant or beneficiary who fails to elect a method of
2314	payment within 60 days of termination of the DROP, the division
2315	will pay a lump sum as provided in sub-sub-subparagraph (I).
2316	(I) Lump sum.--All accrued DROP benefits, plus interest,
2317	less withholding taxes remitted to the Internal Revenue Service,
2318	shall be paid to the DROP participant or surviving beneficiary.
2319	(II) Direct rollover.--All accrued DROP benefits, plus
2320	interest, shall be paid from the DROP directly to the custodian
2321	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
2322	the Internal Revenue Code. However, in the case of an eligible
2323	rollover distribution to the surviving spouse of a deceased
2324	participant, an eligible retirement plan is an individual
2325	retirement account or an individual retirement annuity as
2326	described in s. 402(c)(9) of the Internal Revenue Code.
2327	(III) Partial lump sum.--A portion of the accrued DROP
2328	benefits shall be paid to the DROP participant or surviving
2329	spouse, less withholding taxes remitted to the Internal Revenue
2330	Service, and the remaining DROP benefits shall be transferred
2331	directly to the custodian of an eligible retirement plan as
2332	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
2333	However, in the case of an eligible rollover distribution to the
2334	surviving spouse of a deceased participant, an eligible
2335	retirement plan is an individual retirement account or an
2336	individual retirement annuity as described in s. 402(c)(9) of
2337	the Internal Revenue Code. The proportions shall be specified by
2338	the DROP participant or surviving beneficiary.
2339	c. The form of payment selected by the DROP participant or
2340	surviving beneficiary complies with the minimum distribution
2341	requirements of the Internal Revenue Code.
2342	d. A DROP participant who fails to terminate employment as
2343	defined in s. 121.021(39)(b) shall be deemed not to be retired,
2344	and the DROP election shall be null and void. Florida Retirement
2345	System membership shall be reestablished retroactively to the
2346	date of the commencement of the DROP, and each employer with
2347	whom the participant continues employment shall be required to
2348	pay to the System Trust Fund the difference between the DROP
2349	contributions paid in paragraph (i) and the contributions
2350	required for the applicable Florida Retirement System class of
2351	membership during the period the member participated in the
2352	DROP, plus 6.5 percent interest compounded annually.
2353	6. The accrued benefits of any DROP participant, and any
2354	contributions accumulated under such program, shall not be
2355	subject to assignment, execution, attachment, or to any legal
2356	process whatsoever, except for qualified domestic relations
2357	orders by a court of competent jurisdiction, income deduction
2358	orders as provided in s. 61.1301, and federal income tax levies.
2359	7. DROP participants shall not be eligible for disability
2360	retirement benefits as provided in subsection (4).
2361	(d) Death benefits under the DROP.--
2362	1. Upon the death of a DROP participant, the named
2363	beneficiary shall be entitled to apply for and receive the
2364	accrued benefits in the DROP as provided in sub-subparagraph
2365	(c)5.b.
2366	2. The normal retirement benefit accrued to the DROP
2367	during the month of a participant's death shall be the final
2368	monthly benefit credited for such DROP participant.
2369	3. Eligibility to participate in the DROP terminates upon
2370	death of the participant. If the participant dies on or after
2371	the effective date of enrollment in the DROP, but prior to the
2372	first monthly benefit being credited to the DROP, Florida
2373	Retirement System benefits shall be paid in accordance with
2374	subparagraph (7)(c)1. or subparagraph 2.
2375	4. A DROP participants' survivors shall not be eligible to
2376	receive Florida Retirement System death benefits as provided in
2377	paragraph (7)(d).
2378	(e) Cost-of-living adjustment.--On each July 1, the
2379	participants' normal retirement benefit shall be increased as
2380	provided in s. 121.101.
2381	(f) Retiree health insurance subsidy.--DROP participants
2382	are not eligible to apply for the retiree health insurance
2383	subsidy payments as provided in s. 112.363 until such
2384	participants have terminated employment and participation in the
2385	DROP.
2386	(g) Renewed membership.--DROP participants shall not be
2387	eligible for renewed membership in the Florida Retirement System
2388	under ss. 121.053 and 121.122 until termination of employment is
2389	effectuated as provided in s. 121.021(39)(b).
2390	(h) Employment limitation after DROP participation.--Upon
2391	satisfying the definition of termination of employment as
2392	provided in s. 121.021(39)(b), DROP participants shall be
2393	subject to such reemployment limitations as other retirees.
2394	Reemployment restrictions applicable to retirees as provided in
2395	subsection (9) shall not apply to DROP participants until their
2396	employment and participation in the DROP are terminated.
2397	(i) Contributions.--
2398	1. All employers paying the salary of a DROP participant
2399	filling a regularly established position shall contribute 8.0
2400	percent of such participant's gross compensation for the period
2401	of July 1, 2002, through June 30, 2003, and 11.56 percent of
2402	such compensation thereafter, which shall constitute the entire
2403	employer DROP contribution with respect to such participant.
2404	Such contributions, payable to the System Trust Fund in the same
2405	manner as required in s. 121.071, shall be made as appropriate
2406	for each pay period and are in addition to contributions
2407	required for social security and the Retiree Health Insurance
2408	Subsidy Trust Fund. Such employer, social security, and health
2409	insurance subsidy contributions are not included in the DROP.
2410	2. The employer shall, in addition to subparagraph 1.,
2411	also withhold one-half of the entire social security
2412	contribution required for the participant. Contributions for
2413	social security by each participant and each employer, in the
2414	amount required for social security coverage as now or hereafter
2415	provided by the federal Social Security Act, shall be in
2416	addition to contributions specified in subparagraph 1.
2417	3. All employers paying the salary of a DROP participant
2418	filling a regularly established position shall contribute the
2419	percent of such participant's gross compensation required in s.
2420	121.071(4), which shall constitute the employer's health
2421	insurance subsidy contribution with respect to such participant.
2422	Such contributions shall be deposited by the administrator in
2423	the Retiree Health Insurance Subsidy Trust Fund.
2424	(j) Forfeiture of retirement benefits.--Nothing in this
2425	section shall be construed to remove DROP participants from the
2426	scope of s. 8(d), Art. II of the State Constitution, s.
2427	112.3173, and paragraph (5)(f). DROP participants who commit a
2428	specified felony offense while employed will be subject to
2429	forfeiture of all retirement benefits, including DROP benefits,
2430	pursuant to those provisions of law.
2431	(k) Administration of program.--The division shall make
2432	such rules as are necessary for the effective and efficient
2433	administration of this subsection. The division shall not be
2434	required to advise members of the federal tax consequences of an
2435	election related to the DROP but may advise members to seek
2436	independent advice.
2437	(14) PAYMENT OF BENEFITS.--This subsection applies to the
2438	payment of benefits to a payee (retiree or beneficiary) under
2439	the Florida Retirement System:
2440	(a) Federal income tax shall be withheld in accordance
2441	with federal law, unless the payee elects otherwise on Form W-
2442	4P. The division shall prepare and distribute to each recipient
2443	of monthly retirement benefits an appropriate income tax form
2444	that reflects the recipient's income and federal income tax
2445	withheld for the calendar year just ended.
2446	(b) Subject to approval by the division in accordance with
2447	rule 60S-4.015, Florida Administrative Code, a payee receiving
2448	retirement benefits under the Florida Retirement System may also
2449	have the following payments deducted from his or her monthly
2450	benefit:
2451	1. Premiums for life and health-related insurance policies
2452	from approved companies.
2453	2. Life insurance premiums for the State Group Life
2454	Insurance Plan, if authorized in writing by the payee and by the
2455	Department of Management Services.
2456	3. Repayment of overpayments from the Florida Retirement
2457	System Trust Fund, the State Employees' Health Insurance Trust
2458	Fund, or the State Employees' Life Insurance Trust Fund, upon
2459	notification of the payee.
2460	4. Payments to an alternate payee for alimony, child
2461	support, or division of marital assets pursuant to a qualified
2462	domestic relations order under s. 222.21 or an income deduction
2463	order under s. 61.1301.
2464	5. Payments to the Internal Revenue Service for federal
2465	income tax levies, upon notification of the division by the
2466	Internal Revenue Service.
2467	(c) A payee shall notify the division of any change in his
2468	or her address. The division may suspend benefit payments to a
2469	payee if correspondence sent to the payee's mailing address is
2470	returned due to an incorrect address. Benefit payments shall be
2471	resumed upon notification to the division of the payee's new
2472	address.
2473	(d) A payee whose retirement benefits are reduced by the
2474	application of maximum benefit limits under s. 415(b) of the
2475	Internal Revenue Code, as specified in s. 121.30(5), shall have
2476	the portion of his or her calculated benefit in the Florida
2477	Retirement System defined benefit plan which exceeds such
2478	federal limitation paid through the Florida Retirement System
2479	Preservation of Benefits Plan, as provided in s. 121.1001.
2480	(e) No benefit may be reduced for the purpose of
2481	preserving the member's eligibility for a federal program.
2482	(f) The division shall adopt rules establishing procedures
2483	for determining that the persons to whom benefits are being paid
2484	are still living. The division shall suspend the benefits being
2485	paid to any payee when it is unable to contact such payee and to
2486	confirm that he or she is still living.
2487	Section 25. Subsection (1) of section 121.095, Florida
2488	Statutes, is amended to read:
2489	121.095 Florida Retirement System Preservation of Benefits
2490	Plan Trust Fund.--
2491	(1) The Florida Retirement System Preservation of Benefits
2492	Plan Trust Fund is created in the State Treasury to be
2493	administered by the State Board of Administrationwithin the
2494	Division of Retirement.
2495	(a) Funds to be credited to the trust fund shall consist
2496	of Florida Retirement System monthly retirement contributions
2497	required to meet the requirements for payment of restored
2498	benefits under the Florida Retirement System Preservation of
2499	Benefits Plan, as specified in s. 121.1001.
2500	(b) The trust fund shall be maintained and utilized solely
2501	for the purpose of providing benefits under the Preservation of
2502	Benefits Plan, as specified in s. 121.1001.
2503	(c) The trust fund shall be separate and apart from the
2504	Florida Retirement System Trust Fund. The trust fund moneys and
2505	assets shall not be commingled with nor ever receive a transfer
2506	of moneys and assets from the remainder of the Florida
2507	Retirement System, including, but not limited to, the Florida
2508	Retirement System Trust Fund, or any other qualified retirement
2509	plan administered by the Division of Retirement.
2510	(d) The trust fund shall be funded on a month-to-month
2511	basis. Trust fund assets shall not be accumulated to pay future
2512	benefits.
2513	Section 26. Paragraph (b) of subsection (7) of section
2514	121.101, Florida Statutes, is amended to read:
2515	121.101 Cost-of-living adjustment of benefits.--
2516	(7) The purpose of this subsection is to establish a
2517	supplemental cost-of-living adjustment for certain retirees and
2518	beneficiaries who receive monthly retirement benefits under the
2519	provisions of this chapter and the existing systems consolidated
2520	therein, s. 112.05 for certain state officers and employees, and
2521	s. 238.171 for certain elderly incapacitated teachers.
2522	(b) Application for the supplemental cost-of-living
2523	adjustment provided by this subsection shall include
2524	certification by the retiree or annuitant that he or she is not
2525	receiving, and is not eligible to receive, social security
2526	benefits and shall include written authorization for the
2527	divisiondepartmentto have access to information from the
2528	Social Security Administration concerning his or her entitlement
2529	to, or eligibility for, social security benefits. Such
2530	supplemental cost-of-living adjustment shall not be paid unless
2531	and until the application requirements of this paragraph are
2532	met.
2533	Section 27. Paragraph (e) of subsection (2) of section
2534	121.111, Florida Statutes, is amended to read:
2535	121.111 Credit for military service.--
2536	(2) Any member whose initial date of employment is before
2537	January 1, 1987, who has military service as defined in s.
2538	121.021(20)(b), and who does not claim such service under
2539	subsection (1) may receive creditable service for such military
2540	service if:
2541	(e) Any member claiming credit under this subsection must
2542	certify on the form prescribed by the divisiondepartmentthat
2543	credit for such service has not and will not be claimed for
2544	retirement purposes under any other federal, state, or local
2545	retirement or pension system where "length of service" is a
2546	factor in determining the amount of compensation received,
2547	except where credit for such service has been granted in a
2548	pension system providing retired pay for nonregular service as
2549	provided in paragraph(d). If the member dies prior to
2550	retirement, the member's beneficiary must make the required
2551	certification before credit may be claimed. If such
2552	certification is not made by the member or the member's
2553	beneficiary, credit for wartime military service shall not be
2554	allowed.
2555	Section 28. Section 121.133, Florida Statutes, is amended
2556	to read:
2557	121.133 Cancellation of uncashed
2558	warrants.--Notwithstanding the provisions of s. 17.26 or s.
2559	717.123 to the contrary, effective July 1, 1998, if any state
2560	warrant issued by the Comptroller for the payment of retirement
2561	benefits from the Florida Retirement System Trust Fund, or any
2562	other pension trust fund administered by the division
2563	department, is not presented for payment within 1 year after the
2564	last day of the month in which it was originally issued, the
2565	Comptroller shall cancel the benefit warrant and credit the
2566	amount of the warrant to the Florida Retirement System Trust
2567	Fund or other pension trust fund administered by the division
2568	department, as appropriate. The divisiondepartmentmay provide
2569	for issuance of a replacement warrant when deemed appropriate.
2570	Section 29. Section 121.135, Florida Statutes, is amended
2571	to read:
2572	121.135 Annual report to Legislature concerning the
2573	Florida Retirement Systemstate-administered retirement
2574	systems.--The boarddepartmentshall make to each regular
2575	session of the Legislature a written report on the operation and
2576	condition of the Florida Retirement Systemthe state-
2577	administered retirement systems.
2578	Section 30. Section 121.136, Florida Statutes, is amended
2579	to read:
2580	121.136 Annual benefit statement to members.--Beginning
2581	January 1, 1993, and each January thereafter, the board
2582	departmentshall provide each active member of the Florida
2583	Retirement System with 5 or more years of creditable service an
2584	annual statement of benefits. Such statement should provide the
2585	member with basic data about the member's retirement account.
2586	Minimally, it shall include the member's retirement plan, the
2587	amount of funds on deposit in the retirement account, and an
2588	estimate of retirement benefits.
2589	Section 31. Section 121.1905, Florida Statutes, is amended
2590	to read:
2591	121.1905 Division of Retirement; missioncreation.--
2592	(1) There is created the Division of Retirement within the
2593	Department of Management Services.
2594	(2)The mission of the Division of Retirement is to
2595	provide quality and cost-effective retirement services as
2596	measured by member satisfaction and by comparison with
2597	administrative costs of comparable retirement systems.
2598	Section 32. Section 121.192, Florida Statutes, is amended
2599	to read:
2600	121.192 State retirement actuary.--The divisiondepartment
2601	may employ an actuary. Such actuary shall, together with such
2602	other duties as the administrator assignssecretary may assign,
2603	be responsible for:
2604	(1) Advising the administratorsecretaryon actuarial
2605	matters of the state retirement systems.
2606	(2) Making periodic valuations of the retirement systems.
2607	(3) Providing actuarial analyses to the Legislature
2608	concerning proposed changes in the retirement systems.
2609	(4) Assisting the administratorsecretaryin developing a
2610	sound and modern retirement system.
2611	Section 33. Section 121.193, Florida Statutes, is amended
2612	to read:
2613	121.193 External compliance audits.--
2614	(1) The divisiondepartmentshall conduct audits of the
2615	payroll and personnel records of participating agencies. These
2616	audits shall be made to determine the accuracy of reports
2617	submitted to the divisiondepartmentand to assess the degree of
2618	compliance with applicable statutes, rules, and coverage
2619	agreements. Audits shall be scheduled on a regular basis, as the
2620	result of concerns known to exist at an agency, or as a followup
2621	to ensure agency action was taken to correct deficiencies found
2622	in an earlier audit.
2623	(2) Upon request, participating agencies shall furnish the
2624	divisiondepartment with information and documents that the
2625	divisiondepartment requires to conduct the audit. The division
2626	departmentmay prescribe by rule the documents that may be
2627	requested.
2628	(3) The divisiondepartmentshall review the agency's
2629	operations concerning retirement and social security coverage.
2630	Preliminary findings shall be discussed with agency personnel at
2631	the close of the audit. An audit report of findings and
2632	recommendations shall be submitted to divisiondepartment
2633	management and an audit summary letter shall be submitted to the
2634	agency noting any concerns and necessary corrective action.
2635	Section 34. Subsection (1) of section 121.22, Florida
2636	Statutes, is amended to read:
2637	121.22 State Retirement Commission; creation; membership;
2638	compensation.--
2639	(1) There is created within the Division of Retirement
2640	Department of Management Servicesa State Retirement Commission
2641	composed of three members: One member who is retired under a
2642	state-supported retirement system administered by the division
2643	department; one member who is an active member of a state-
2644	supported retirement system that is administered by the division
2645	department; and one member who is neither a retiree,
2646	beneficiary, or member of a state-supported retirement system
2647	administered by the divisiondepartment. Each member shall have
2648	a different occupational background from the other members.
2649	Section 35. Subsection (1) of section 121.23, Florida
2650	Statutes, is amended to read:
2651	121.23 Disability retirement and special risk membership
2652	applications; Retirement Commission; powers and duties; judicial
2653	review.--The provisions of this section apply to all proceedings
2654	in which the administrator has made a written final decision on
2655	the merits respecting applications for disability retirement,
2656	reexamination of retired members receiving disability benefits,
2657	applications for special risk membership, and reexamination of
2658	special risk members in the Florida Retirement System. The
2659	jurisdiction of the State Retirement Commission under this
2660	section shall be limited to written final decisions of the
2661	administrator on the merits.
2662	(1) In accordance with the rules of procedure adopted by
2663	the divisionDepartment of Management Services, the
2664	administrator shall:
2665	(a) Give reasonable notice of his or her proposed action,
2666	or decision to refuse action, together with a summary of the
2667	factual, legal, and policy grounds therefor.
2668	(b) Give affected members, or their counsel, an
2669	opportunity to present to the division written evidence in
2670	opposition to the proposed action or refusal to act or a written
2671	statement challenging the grounds upon which the administrator
2672	has chosen to justify his or her action or inaction.
2673	(c) If the objections of the member are overruled, provide
2674	a written explanation within 21 days.
2675	Section 36. Subsections (2), (3), and (4) of section
2676	121.24, Florida Statutes, are amended to read:
2677	121.24 Conduct of commission business; legal and other
2678	assistance; compensation.--
2679	(2) Legal counsel for the commission may be provided by
2680	the Department of Legal Affairs or by the divisionDepartment of
2681	Management Services, with the concurrence of the commission, and
2682	shall be paid by the divisionDepartment of Management Services
2683	from the appropriate funds.
2684	(3) The divisionDepartment of Management Servicesshall
2685	provide timely and appropriate training for newly appointed
2686	members of the commission. Such training shall be designed to
2687	acquaint new members of the commission with the duties and
2688	responsibilities of the commission.
2689	(4) The divisionDepartment of Management Servicesshall
2690	furnish administrative and secretarial assistance to the
2691	commission and shall provide a place where the commission may
2692	hold its meetings.
2693	Section 37. Subsection (9) of section 121.30, Florida
2694	Statutes, is amended to read:
2695	121.30 Statements of purpose and intent and other
2696	provisions required for qualification under the Internal Revenue
2697	Code of the United States.--Any other provisions in this chapter
2698	to the contrary notwithstanding, it is specifically provided
2699	that:
2700	(9) The divisiondepartmentmay adopt any rule necessary
2701	to accomplish the purpose of the section which is not
2702	inconsistent with this chapter.
2703	Section 38. Paragraph (c) of subsection (2), paragraphs
2704	(c) and (e) of subsection (3), paragraphs (a), (b), and (c) of
2705	subsection (4), and subsection (6) of section 121.35, Florida
2706	Statutes, are amended to read:
2707	121.35 Optional retirement program for the State
2708	University System.--
2709	(2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.--
2710	(c) For purposes of this section, the State Board of
2711	AdministrationDepartment of Management Servicesis referred to
2712	as the "boarddepartment."
2713	(3) ELECTION OF OPTIONAL PROGRAM.--
2714	(c) Any employee who becomes eligible to participate in
2715	the optional retirement program on or after January 1, 1993,
2716	shall be a compulsory participant of the program unless such
2717	employee elects membership in the Florida Retirement System.
2718	Such election shall be made in writing and filed with the
2719	personnel officer of the employer. Any eligible employee who
2720	fails to make such election within the prescribed time period
2721	shall be deemed to have elected to participate in the optional
2722	retirement program.
2723	1. Any employee whose optional retirement program
2724	eligibility results from initial employment shall be enrolled in
2725	the program at the commencement of employment. If, within 90
2726	days after commencement of employment, the employee elects
2727	membership in the Florida Retirement System, such membership
2728	shall be effective retroactive to the date of commencement of
2729	employment.
2730	2. Any employee whose optional retirement program
2731	eligibility results from a change in status due to the
2732	subsequent designation of the employee's position as one of
2733	those specified in paragraph (2)(a) or due to the employee's
2734	appointment, promotion, transfer, or reclassification to a
2735	position specified in paragraph (2)(a) shall be enrolled in the
2736	optional retirement program upon such change in status and shall
2737	be notified by the employer of such action. If, within 90 days
2738	after the date of such notification, the employee elects to
2739	retain membership in the Florida Retirement System, such
2740	continuation of membership shall be retroactive to the date of
2741	the change in status.
2742	3. Notwithstanding the provisions of this paragraph,
2743	effective July 1, 1997, any employee who is eligible to
2744	participate in the Optional Retirement Program and who fails to
2745	execute a contract with one of the approved companies and to
2746	notify the boarddepartmentin writing as provided in subsection
2747	(4) within 90 days after the date of eligibility shall be deemed
2748	to have elected membership in the Florida Retirement System,
2749	except as provided in s. 121.051(1)(a). This provision shall
2750	also apply to any employee who terminates employment in an
2751	eligible position before executing the required annuity contract
2752	and notifying the boarddepartment. Such membership shall be
2753	retroactive to the date of eligibility, and all appropriate
2754	contributions shall be transferred to the Florida Retirement
2755	System Trust Fund and the Health Insurance Subsidy Trust Fund.
2756	(e) The election by an eligible employee to participate in
2757	the optional retirement program shall be irrevocable for so long
2758	as the employee continues to meet the eligibility requirements
2759	specified in subsection (2), except as provided in paragraph
2760	(h). In the event that an employee participates in the optional
2761	retirement program for 90 days or more and is subsequently
2762	employed in an administrative or professional position which has
2763	been determined by the boarddepartment, under subparagraph
2764	(2)(a)2., to be not otherwise eligible for participation in the
2765	optional retirement program, the employee shall continue
2766	participation in the optional program so long as the employee
2767	meets the other eligibility requirements for the program, except
2768	as provided in paragraph (h).
2769	(4) CONTRIBUTIONS.--
2770	(a) Through June 30, 2001, each employer shall contribute
2771	on behalf of each participant in the optional retirement program
2772	an amount equal to the normal cost portion of the employer
2773	retirement contribution which would be required if the
2774	participant were a regular member of the Florida Retirement
2775	System defined benefit program, plus the portion of the
2776	contribution rate required in s. 112.363(8) that would otherwise
2777	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
2778	Effective July 1, 2001, each employer shall contribute on behalf
2779	of each participant in the optional program an amount equal to
2780	10.43 percent of the participant's gross monthly compensation.
2781	The board, pursuant to s. 215.44(4),departmentshall deduct an
2782	amount approved by the Legislatureto provide for the
2783	administration of this program. The payment of the contributions
2784	to the optional program which is required by this paragraph for
2785	each participant shall be made by the employer to the board
2786	department, which shall forward the contributions to the
2787	designated company or companies contracting for payment of
2788	benefits for the participant under the program. However, such
2789	contributions paid on behalf of an employee described in
2790	paragraph (3)(c) shall not be forwarded to a company and shall
2791	not begin to accrue interest until the employee has executed an
2792	annuity contract and notified the boarddepartment.
2793	(b) Each employer shall contribute on behalf of each
2794	participant in the optional retirement program an amount equal
2795	to the unfunded actuarial accrued liability portion of the
2796	employer contribution which would be required for members of the
2797	Florida Retirement System. This contribution shall be paid to
2798	the boarddepartmentfor transfer to the Florida Retirement
2799	System Trust Fund.
2800	(c) An Optional Retirement Program Trust Fund shall be
2801	established in the State Treasury and administered by the board
2802	departmentto make payments to the provider companies on behalf
2803	of the optional retirement program participants, and to transfer
2804	the unfunded liability portion of the state optional retirement
2805	program contributions to the Florida Retirement System Trust
2806	Fund.
2807	(6) ADMINISTRATION OF PROGRAM.--
2808	(a) The optional retirement program authorized by this
2809	section shall be administered by the boarddepartment. The board
2810	departmentshall adopt rules establishing the responsibilities
2811	of the State Board of Education and institutions in the State
2812	University System in administering the optional retirement
2813	program. The State Board of Education shall, no more than 90
2814	days after July 1, 1983, submit to the boarddepartmentits
2815	recommendations for the contracts to be offered by the companies
2816	chosen by the boarddepartment. The recommendations of the State
2817	Board of Educationshall include the following:
2818	1. The nature and extent of the rights and benefits in
2819	relation to the required contributions; and
2820	2. The suitability of the rights and benefits to the needs
2821	of the participants and the interests of the institutions in the
2822	recruitment and retention of eligible employees.
2823	(b) After receiving and considering the recommendations of
2824	the State Board of Education, the boarddepartmentshall
2825	designate no more than four companies from which contracts may
2826	be purchased under the program and shall approve the form and
2827	content of the optional retirement program contracts. Upon
2828	application by a qualified Florida domestic company, the board
2829	departmentshall give reasonable notice to all other such
2830	companies that it intends to designate one of such companies as
2831	a fifth company from which contracts may be purchased pursuant
2832	to this section and that they may apply for such designation
2833	prior to the deadline established by said notice. At least 60
2834	days after giving such notice and upon receipt of the
2835	recommendation of the State Board of Education, the board
2836	departmentshall so designate one of such companies as the fifth
2837	company from which such contracts may be purchased.
2838	(c) Effective July 1, 1997, the State Board of
2839	Administration shall review and make recommendations to the
2840	department on the acceptability of all investment products
2841	proposed by provider companies of the optional retirement
2842	program before they are offered through annuity contracts to the
2843	participants and may advise the department of any changes
2844	necessary to ensure that the optional retirement program offers
2845	an acceptable mix of investment products. The boarddepartment
2846	shall determine whichmake the final determination as to whether
2847	an investment productsproduct will be included inapproved for
2848	the program.
2849	(d) The provisions of each contract applicable to a
2850	participant in the optional retirement program shall be
2851	contained in a written program description which shall include a
2852	report of pertinent financial and actuarial information on the
2853	solvency and actuarial soundness of the program and the benefits
2854	applicable to the participant. Such description shall be
2855	furnished by the companies to each participant in the program
2856	and to the boarddepartmentupon commencement of participation
2857	in the program and annually thereafter.
2858	(e) The boarddepartmentshall ensure that each
2859	participant in the optional retirement program is provided an
2860	accounting of the total contribution and the annual contribution
2861	made by and on behalf of such participant.
2862	Section 39. Paragraph (b) of subsection (3), paragraph (a)
2863	of subsection (12), and paragraphs (a) and (b) of subsection
2864	(14) of section 121.40, Florida Statutes, are amended to read:
2865	121.40 Cooperative extension personnel at the Institute of
2866	Food and Agricultural Sciences; supplemental retirement
2867	benefits.--
2868	(3) DEFINITIONS.--The definitions provided in s. 121.021
2869	shall not apply to this section except when specifically cited.
2870	For the purposes of this section, the following words or phrases
2871	have the respective meanings set forth:
2872	(b) "DivisionDepartment" means the Division of Retirement
2873	of the State Board of AdministrationDepartment of Management
2874	Services.
2875	(12) CONTRIBUTIONS.--
2876	(a) For the purposes of funding the supplemental benefits
2877	provided by this section, the institute is authorized and
2878	required to pay, commencing July 1, 1985, the necessary monthly
2879	contributions from its appropriated budget. These amounts shall
2880	be paid into the Institute of Food and Agricultural Sciences
2881	Supplemental Retirement Trust Fund, which is hereby created in
2882	the State Treasury to be administered by the State Board of
2883	Administration.
2884	(14) ADMINISTRATION OF SYSTEM.--
2885	(a) The divisiondepartmentshall make such rules as are
2886	necessary for the effective and efficient administration of this
2887	system. The executive director of the State Board of
2888	Administrationsecretary of the departmentshall be the
2889	administrator of the system. The funds to pay the expenses for
2890	such administration areshall beappropriated from the interest
2891	earned on investments made for the trust fund.
2892	(b) The divisiondepartmentis authorized to require
2893	oaths, by affidavit or otherwise, and acknowledgments from
2894	persons in connection with the administration of its duties and
2895	responsibilities under this section.
2896	Section 40. Subsection (3) of section 121.45, Florida
2897	Statutes, is amended to read:
2898	121.45 Interstate compacts relating to pension
2899	portability.--
2900	(3) ESTABLISHMENT OF COMPACTS.--
2901	(a) The divisionDepartment of Management Servicesis
2902	authorized and directed to survey other state retirement systems
2903	to determine if such retirement systems are interested in
2904	developing an interstate compact with Florida.
2905	(b) If any such state is interested in pursuing the
2906	matter, the divisiondepartmentshall confer with the other
2907	state and the consulting actuaries of both states, and shall
2908	present its findings to the committees having jurisdiction over
2909	retirement matters in the Legislature, and to representatives of
2910	affected certified bargaining units, in order to determine the
2911	feasibility of developing a portability compact, what groups
2912	should be covered, and the goals and priorities which should
2913	guide such development.
2914	(c) Upon a determination that such a compact is feasible
2915	and upon request of the Legislature, the divisiondepartment,
2916	together with its consulting actuaries, shall, in accordance
2917	with suchsaidgoals and priorities, develop a proposal under
2918	which retirement credit may be transferred to or from Florida in
2919	an actuarially sound manner.
2920	(d) Once a proposal has been developed, the division
2921	departmentshall contract with its consulting actuaries to
2922	conduct an actuarial study of the proposal to determine the cost
2923	to the Florida Retirement System Trust Fund and the State of
2924	Florida.
2925	(e) After the actuarial study has been completed, the
2926	divisiondepartmentshall present its findings and the actuarial
2927	study to the Legislature for consideration. If either house of
2928	the Legislature elects to enter into such a compact, it shall be
2929	introduced in the form of a proposed committee bill to the full
2930	Legislature during the same or next regular session.
2931	Section 41. Subsection (2), paragraph (a) of subsection
2932	(5), paragraphs (a), (b), (c), and(e) of subsection (8),
2933	paragraph (c) of subsection (9), paragraphs (a), (c), and (f) of
2934	subsection (10), subsection (11), and paragraph (b) of
2935	subsection (12) and subsection (19) of section 121.4501, Florida
2936	Statutes, are amended to read:
2937	121.4501 Public Employee Optional Retirement Program.--
2938	(2) DEFINITIONS.--As used in this part, the term:
2939	(a) "Approved provider" or "provider" means a private
2940	sector company that is selected and approved by the stateboard
2941	to offer one or more investment products or services to the
2942	Public Employee Optional Retirement Program. The term includes a
2943	bundled provider that offers participants a range of
2944	individually allocated or unallocated investment products and
2945	may offer a range of administrative and customer services, which
2946	may include accounting and administration of individual
2947	participant benefits and contributions; individual participant
2948	recordkeeping; asset purchase, control, and safekeeping; direct
2949	execution of the participant's instructions as to asset and
2950	contribution allocation; calculation of daily net asset values;
2951	direct access to participant account information; periodic
2952	reporting to participants, at least quarterly, on account
2953	balances and transactions; guidance, advice, and allocation
2954	services directly relating to its own investment options or
2955	products, but only if the bundled provider complies with the
2956	standard of care of s. 404(a)(1)(A-B) of the Employee Retirement
2957	Income Security Act of 1974 (ERISA) and if providing such
2958	guidance, advice, or allocation services does not constitute a
2959	prohibited transaction under s. 4975(c)(1) of the Internal
2960	Revenue Code or s. 406 of ERISA, notwithstanding that such
2961	prohibited transaction provisions do not apply to the optional
2962	retirement program; a broad array of distribution options; asset
2963	allocation; and retirement counseling and education. Private
2964	sector companies include investment management companies,
2965	insurance companies, depositories, and mutual fund companies.
2966	(b) "Average monthly compensation" means one-twelfth of
2967	average final compensation as defined in s. 121.021(24).
2968	(c) "Covered employment" means employment in a regularly
2969	established position as defined in s. 121.021(52).
2970	(d) "Department" means the Department of Management
2971	Services.
2972	(d)(e) "Division" means the Division of Retirement of the
2973	State Board of Administrationwithin the Department of
2974	Management Services.
2975	(e)(f)"Eligible employee" means an officer or employee,
2976	as defined in s. 121.021(11), who:
2977	1. Is a member of, or is eligible for membership in, the
2978	Florida Retirement System, including any renewed member of the
2979	Florida Retirement System;
2980	2. Participates in, or is eligible to participate in, the
2981	Senior Management Service Optional Annuity Program as
2982	established under s. 121.055(6); or
2983	3. Is eligible to participate in, but does not participate
2984	in, the State University System Optional Retirement Program
2985	established under s. 121.35 or the State Community College
2986	System Optional Retirement Program established under s.
2987	121.051(2)(c).
2988
2989	The term does not include any member participating in the
2990	Deferred Retirement Option Program established under s.
2991	121.091(13) or any employee participating in an optional
2992	retirement program established under s. 121.051(2)(c) or s.
2993	121.35.
2994	(f)(g)"Employer" means an employer, as defined in s.
2995	121.021(10), of an eligible employee.
2996	(g)(h)"Participant" means an eligible employee who elects
2997	to participate in the Public Employee Optional Retirement
2998	Program and enrolls in such optional program as provided in
2999	subsection (4).
3000	(h)(i)"Public Employee Optional Retirement Program,"
3001	"optional program," or "optional retirement program" means the
3002	alternative defined contribution retirement program established
3003	under this section.
3004	(i)(j)"State board" or "board" means the State Board of
3005	Administration.
3006	(j)(k)"Trustees" means Trustees of the State Board of
3007	Administration.
3008	(k)(l)"Vested" or "vesting" means the guarantee that a
3009	participant is eligible to receive a retirement benefit upon
3010	completion of the required years of service under the Public
3011	Employee Optional Retirement Program.
3012	(5) CONTRIBUTIONS.--
3013	(a) Each employer shall contribute on behalf of each
3014	participant in the Public Employee Optional Retirement Program,
3015	as provided in part III of this chapter. The state board, acting
3016	as plan fiduciary, shall ensure that all plan assets are held in
3017	a trust, pursuant to s. 401 of the Internal Revenue Code. The
3018	fiduciary shall ensure that said contributions are allocated as
3019	follows:
3020	1. The portion earmarked for participant accounts shall be
3021	used to purchase interests in the appropriate investment
3022	vehicles for the accounts of each participant as specified by
3023	the participant, or in accordance with paragraph (4)(d).
3024	2. The portion earmarked for administrative and
3025	educational expenses shall be transferred to the board.
3026	3. The portion earmarked for disability benefits shall be
3027	transferred to the divisiondepartment.
3028	(8) ADMINISTRATION OF PROGRAM.--
3029	(a) The Public Employee Optional Retirement Program shall
3030	be administered by the state board and affected employers. The
3031	board is authorized to require oaths, by affidavit or otherwise,
3032	and acknowledgments from persons in connection with the
3033	administration of its duties and responsibilities under this
3034	chapter. No oath, by affidavit or otherwise, shall be required
3035	of an employee participant at the time of election.
3036	Acknowledgment of an employee's election to participate in the
3037	program shall be no greater than necessary to confirm the
3038	employee's election. The board shall adopt rules establishing
3039	the role and responsibilities of affected state, local
3040	government, and education-related employers, the state board,
3041	the department,and third-party contractors in administering the
3042	Public Employee Optional Retirement Program. The division
3043	departmentshall adopt rules necessary to implement the optional
3044	program in coordination with the defined benefit retirement
3045	program and the disability benefits available under the optional
3046	program.
3047	(b)1. The state board shall select and contract with one
3048	third-party administrator to provide administrative services if
3049	those services cannot be competitively and contractually
3050	provided by the division of Retirement within the Department of
3051	Management Services. With the approval of the state board, the
3052	third-party administrator may subcontract with other
3053	organizations or individuals to provide components of the
3054	administrative services. As a cost of administration, the board
3055	may compensate any such contractor for its services, in
3056	accordance with the terms of the contract, as is deemed
3057	necessary or proper by the board. The third-party administrator
3058	may not be an approved provider or be affiliated with an
3059	approved provider.
3060	2. These administrative services may include, but are not
3061	limited to, enrollment of eligible employees, collection of
3062	employer contributions, disbursement of such contributions to
3063	approved providers in accordance with the allocation directions
3064	of participants; services relating to consolidated billing;
3065	individual and collective recordkeeping and accounting; asset
3066	purchase, control, and safekeeping; and direct disbursement of
3067	funds to and from the third-party administrator, the division,
3068	the board, employers, participants, approved providers, and
3069	beneficiaries. This section does not prevent or prohibit a
3070	bundled provider from providing any administrative or customer
3071	service, including accounting and administration of individual
3072	participant benefits and contributions; individual participant
3073	recordkeeping; asset purchase, control, and safekeeping; direct
3074	execution of the participant' s instructions as to asset and
3075	contribution allocation; calculation of daily net asset values;
3076	direct access to participant account information; or periodic
3077	reporting to participants, at least quarterly, on account
3078	balances and transactions, if these services are authorized by
3079	the board as part of the contract.
3080	3. The state board shall select and contract with one or
3081	more organizations to provide educational services. With
3082	approval of the board, the organizations may subcontract with
3083	other organizations or individuals to provide components of the
3084	educational services. As a cost of administration, the board may
3085	compensate any such contractor for its services in accordance
3086	with the terms of the contract, as is deemed necessary or proper
3087	by the board. The education organization may not be an approved
3088	provider or be affiliated with an approved provider.
3089	4. Educational services shall be designed by the board and
3090	departmentto assist employers, eligible employees,
3091	participants, and beneficiaries in order to maintain compliance
3092	with United States Department of Labor regulations under s.
3093	404(c) of the Employee Retirement Income Security Act of 1974
3094	and to assist employees in their choice of defined benefit or
3095	defined contribution retirement alternatives. Educational
3096	services include, but are not limited to, disseminating
3097	educational materials; providing retirement planning education;
3098	explaining the differences between the defined benefit
3099	retirement plan and the defined contribution retirement plan;
3100	and offering financial planning guidance on matters such as
3101	investment diversification, investment risks, investment costs,
3102	and asset allocation. An approved provider may also provide
3103	educational information, including retirement planning and
3104	investment allocation information concerning its products and
3105	services.
3106	(c)1. In evaluating and selecting a third-party
3107	administrator, the board shall establish criteria under which it
3108	shall consider the relative capabilities and qualifications of
3109	each proposed administrator. In developing such criteria, the
3110	board shall consider:
3111	a. The administrator's demonstrated experience in
3112	providing administrative services to public or private sector
3113	retirement systems.
3114	b. The administrator's demonstrated experience in
3115	providing daily valued recordkeeping to defined contribution
3116	plans.
3117	c. The administrator's ability and willingness to
3118	coordinate its activities with the Florida Retirement System
3119	employers, the board, and the division, and to supply to such
3120	employers, the board, and the division the information and data
3121	they require, including, but not limited to, monthly management
3122	reports, quarterly participant reports, and ad hoc reports
3123	requested by the department orboard.
3124	d. The cost-effectiveness and levels of the administrative
3125	services provided.
3126	e. The administrator's ability to interact with the
3127	participants, the employers, the board, the division, and the
3128	providers; the means by which participants may access account
3129	information, direct investment of contributions, make changes to
3130	their accounts, transfer moneys between available investment
3131	vehicles, and transfer moneys between investment products; and
3132	any fees that apply to such activities.
3133	f. Any other factor deemed necessary by the Trustees of
3134	the State Board of Administration.
3135	g. The recommendations of the Public Employee Optional
3136	Retirement Program Advisory Committee established in subsection
3137	(12).
3138	2. In evaluating and selecting an educational provider,
3139	the board shall establish criteria under which it shall consider
3140	the relative capabilities and qualifications of each proposed
3141	educational provider. In developing such criteria, the board
3142	shall consider:
3143	a. Demonstrated experience in providing educational
3144	services to public or private sector retirement systems.
3145	b. Ability and willingness to coordinate its activities
3146	with the Florida Retirement System employers, the board, and the
3147	division, and to supply to such employers, the board, and the
3148	division the information and data they require, including, but
3149	not limited to, reports on educational contacts.
3150	c. The cost-effectiveness and levels of the educational
3151	services provided.
3152	d. Ability to provide educational services via different
3153	media, including, but not limited to, the Internet, personal
3154	contact, seminars, brochures, and newsletters.
3155	e. Any other factor deemed necessary by the Trustees of
3156	the State Board of Administration.
3157	f. The recommendations of the Public Employee Optional
3158	Retirement Program Advisory Committee established in subsection
3159	(12).
3160	3. The establishment of the criteria shall be solely
3161	within the discretion of the board.
3162	(e)1.The board may contract with any consultant for
3163	professional services, including legal, consulting, accounting,
3164	and actuarial services, deemed necessary to implement and
3165	administer the optional program by the Trustees of the State
3166	Board of Administration. The board may enter into a contract
3167	with one or more vendors to provide low-cost investment advice
3168	to participants, supplemental to education provided by the
3169	third-party administrator. All fees under any such contract
3170	shall be paid by those participants who choose to use the
3171	services of the vendor.
3172	2. The department may contract with consultants for
3173	professional services, including legal, consulting, accounting,
3174	and actuarial services, deemed necessary to implement and
3175	administer the optional program in coordination with the defined
3176	benefit program of the Florida Retirement System. The
3177	department, in coordination with the board, may enter into a
3178	contract with the third-party administrator in order to
3179	coordinate services common to the various programs within the
3180	Florida Retirement System.
3181	(9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.--
3182	(c) In evaluating and selecting approved providers and
3183	products, the board shall establish criteria under which it
3184	shall consider the relative capabilities and qualifications of
3185	each proposed provider company and product. In developing such
3186	criteria, the board shall consider the following to the extent
3187	such factors may be applied in connection with investment
3188	products, services, or providers:
3189	1. Experience in the United States providing retirement
3190	products and related financial services under defined
3191	contribution retirement plans.
3192	2. Financial strength and stability which shall be
3193	evidenced by the highest ratings assigned by nationally
3194	recognized rating services when comparing proposed providers
3195	that are so rated.
3196	3. Intrastate and interstate portability of the product
3197	offered, including early withdrawal options.
3198	4. Compliance with the Internal Revenue Code.
3199	5. The cost-effectiveness of the product provided and the
3200	levels of service supporting the product relative to its
3201	benefits and its characteristics, including, without limitation,
3202	the level of risk borne by the provider.
3203	6. The provider company's ability and willingness to
3204	coordinate its activities with Florida Retirement System
3205	employers, the divisiondepartment, and the board, and to
3206	supply to such employers, the divisiondepartment, and the board
3207	the information and data they require.
3208	7. The methods available to participants to interact with
3209	the provider company; the means by which participants may access
3210	account information, direct investment of contributions, make
3211	changes to their accounts, transfer moneys between available
3212	investment vehicles, and transfer moneys between provider
3213	companies; and any fees that apply to such activities.
3214	8. The provider company's policies with respect to the
3215	transfer of individual account balances, contributions, and
3216	earnings thereon, both internally among investment products
3217	offered by the provider company and externally between approved
3218	providers, as well as any fees, charges, reductions, or
3219	penalties that may be applied.
3220	9. An evaluation of specific investment products, taking
3221	into account each product's experience in meeting its investment
3222	return objectives net of all related fees, expenses, and
3223	charges, including, but not limited to, investment management
3224	fees, loads, distribution and marketing fees, custody fees,
3225	recordkeeping fees, education fees, annuity expenses, and
3226	consulting fees.
3227	10. Organizational factors, including, but not limited to,
3228	financial solvency, organizational depth, and experience in
3229	providing institutional and retail investment services.
3230	(10) EDUCATION COMPONENT.--
3231	(a) The board, in coordination with the department,shall
3232	provide for an education component for system members in a
3233	manner consistent with the provisions of this section. The
3234	education component must be available to eligible employees at
3235	least 90 days prior to the beginning date of the election period
3236	for the employees of the respective types of employers.
3237	(c) The board, in coordination with the department,shall
3238	provide for an initial and ongoing transfer education component
3239	to provide system members with information necessary to make
3240	informed plan choice decisions. The transfer education component
3241	must include, but is not limited to, information on:
3242	1. The amount of money available to a member to transfer
3243	to the defined contribution program.
3244	2. The features of and differences between the defined
3245	benefit program and the defined contribution program, both
3246	generally and specifically, as those differences may affect the
3247	member.
3248	3. The expected benefit available if the member were to
3249	retire under each of the retirement programs, based on
3250	appropriate alternative sets of assumptions.
3251	4. The rate of return from investments in the defined
3252	contribution program and the period of time over which such rate
3253	of return must be achieved to equal or exceed the expected
3254	monthly benefit payable to the member under the defined benefit
3255	program.
3256	5. The historical rates of return for the investment
3257	alternatives available in the defined contribution programs.
3258	6. The benefits and historical rates of return on
3259	investments available in a typical deferred compensation plan or
3260	a typical plan under s. 403(b) of the Internal Revenue Code for
3261	which the employee may be eligible.
3262	7. The program choices available to employees of the State
3263	University System and the comparative benefits of each available
3264	program, if applicable.
3265	8. Payout options available in each of the retirement
3266	programs.
3267	(f) The board and the departmentshall also establish a
3268	communication component to provide program information to
3269	participating employers and the employers' personnel and payroll
3270	officers and to explain their respective responsibilities in
3271	conjunction with the retirement programs.
3272	(11) PARTICIPANT INFORMATION REQUIREMENTS.--The board
3273	shall ensure that each participant is provided a quarterly
3274	statement that accounts for the contributions made on behalf of
3275	such participant; the interest and investment earnings thereon;
3276	and any fees, penalties, or other deductions that apply thereto.
3277	At a minimum, such statements must:
3278	(a) Indicate the participant's investment options.
3279	(b) State the market value of the account at the close of
3280	the current quarter and previous quarter.
3281	(c) Show account gains and losses for the period and
3282	changes in account accumulation unit values for the period.
3283	(d) Itemize account contributions for the quarter.
3284	(e) Indicate any account changes due to adjustment of
3285	contribution levels, reallocation of contributions, balance
3286	transfers, or withdrawals.
3287	(f) Set forth any fees, charges, penalties, and deductions
3288	that apply to the account.
3289	(g) Indicate the amount of the account in which the
3290	participant is fully vested and the amount of the account in
3291	which the participant is not vested.
3292	(h) Indicate each investment product's performance
3293	relative to an appropriate market benchmark.
3294
3295	The third-party administrator shall provide quarterly and annual
3296	summary reports to the board and any other reports requested by
3297	the department orthe board. In any solicitation or offer of
3298	coverage under an optional retirement program, a provider
3299	company shall be governed by the contract readability provisions
3300	of s. 627.4145, notwithstanding s. 627.4145(6)(c). In addition,
3301	all descriptive materials must be prepared under the assumption
3302	that the participant is an unsophisticated investor. Provider
3303	companies must maintain an internal system of quality assurance,
3304	have proven functional systems that are date-calculation
3305	compliant, and be subject to a due-diligence inquiry that proves
3306	their capacity and fitness to undertake service
3307	responsibilities.
3308	(12) ADVISORY COMMITTEES TO PROVIDE ADVICE AND
3309	ASSISTANCE.--The Investment Advisory Council and the Public
3310	Employee Optional Retirement Program Advisory Committee shall
3311	assist the board in implementing and administering the Public
3312	Employee Optional Retirement Program.
3313	(b)1. The Public Employee Optional Retirement Program
3314	Advisory Committee shall be composed of seven members. The
3315	President of the Senate shall appoint two members, the Speaker
3316	of the House of Representatives shall appoint two members, the
3317	Governor shall appoint one member, the Treasurer shall appoint
3318	one member, and the Comptroller shall appoint one member. The
3319	members of the advisory committee shall elect a member as chair.
3320	The appointments shall be made by September 1, 2000, and the
3321	committee shall meet to organize by October 1, 2000. The initial
3322	appointments shall be for a term of 24 months. Each appointing
3323	authority shall fill any vacancy occurring among its appointees
3324	for the remainder of the original term.
3325	2. The advisory committee shall make recommendations on
3326	the selection of the third-party administrator, the education
3327	providers, and the investment products and providers. The
3328	committee's recommendations on the third-party administrator
3329	must be forwarded to the Trustees of the State Board of
3330	Administration by January 1, 2001. The recommendations on the
3331	education providers must be forwarded to the trustees by April
3332	1, 2001.
3333	3. The advisory committee's recommendations and activities
3334	shall be guided by the best interests of the employees,
3335	considering the interests of employers, and the intent of the
3336	Legislature in establishing the Public Employee Optional
3337	Retirement Program.
3338	4. The staff of the state board and the departmentshall
3339	assist the advisory committee.
3340	(19) PARTICIPANT RECORDS.--All personal identifying
3341	information regarding a participant in the Public Employee
3342	Optional Retirement Program contained in Florida Retirement
3343	System records held by the State Board of Administration or the
3344	Department of Management Services, or itstheiragents,
3345	employees, or contractors is exempt from the provisions of s.
3346	119.07(1) and s. 24(a), Art. I of the State Constitution. The
3347	department orboard may use such exempt information as necessary
3348	in any legal or administrative proceeding. This subsection is
3349	subject to the Open Government Sunset Review Act of 1995 in
3350	accordance with s. 119.15, and shall stand repealed October 2,
3351	2007, unless reviewed and saved from repeal through reenactment
3352	by the Legislature.
3353	Section 42. Section 121.4503, Florida Statutes, is amended
3354	to read:
3355	121.4503 Florida Retirement System Contributions Clearing
3356	Trust Fund.--
3357	(1) The Florida Retirement System Contributions Clearing
3358	Trust Fund is created in the State Treasuryas a clearing fund
3359	for disbursing employer contributions to the component plans of
3360	the Florida Retirement System and shall be administered by the
3361	State Board of AdministrationDepartment of Management Services.
3362	Funds shall be credited to the trust fund as provided in this
3363	chapter and shall be held in trust for the contributing
3364	employers until such time as the assets are transferred by the
3365	boarddepartmentto the Florida Retirement System Trust Fund,
3366	the Public Employee Optional Retirement Program Trust Fund, or
3367	other trust funds as authorized by law, to be used for the
3368	purposes of this chapter. The trust fund is exempt from the
3369	service charges imposed by s. 215.20.
3370	(2) The Florida Retirement System Contributions Clearing
3371	Trust Fund is a clearing trust fund of the State Board of
3372	AdministrationDepartment of Management Servicespursuant to s.
3373	19(f), Art. III of the State Constitution, and is not subject to
3374	termination.
3375	(3) The State Board of AdministrationDepartment of
3376	Management Servicesmay adopt rules governing the receipt and
3377	disbursement of amounts received by the Florida Retirement
3378	System Contributions Clearing Trust Fund from employers
3379	contributing to the component plans of the Florida Retirement
3380	System.
3381	Section 43. Section 121.591, Florida Statutes, is amended
3382	to read:
3383	121.591 Benefits payable under the Public Employee
3384	Optional Retirement Program of the Florida Retirement
3385	System.--Benefits may not be paid under this section unless the
3386	member has terminated employment as provided in s.
3387	121.021(39)(a) or is deceased and a proper application has been
3388	filed in the manner prescribed by the state board or the
3389	divisiondepartment. The state board or divisiondepartment, as
3390	appropriate, may cancel an application for retirement benefits
3391	when the member or beneficiary fails to timely provide the
3392	information and documents required by this chapter and the rules
3393	of the state board and divisiondepartment. In accordance with
3394	their respective responsibilities as provided herein, the State
3395	Board of Administration and the divisionDepartment of
3396	Management Servicesshall adopt rules establishing procedures
3397	for application for retirement benefits and for the cancellation
3398	of such application when the required information or documents
3399	are not received.
3400	(1) NORMAL BENEFITS.--Under the Public Employee Optional
3401	Retirement Program:
3402	(a) Benefits in the form of vested accumulations as
3403	described in s. 121.4501(6) shall be payable under this
3404	subsection in accordance with the following terms and
3405	conditions:
3406	1. To the extent vested, benefits shall be payable only to
3407	a participant.
3408	2. Benefits shall be paid by the third-party administrator
3409	or designated approved providers in accordance with the law, the
3410	contracts, and any applicable board rule or policy.
3411	3. To receive benefits under this subsection, the
3412	participant must be terminated from all employment with all
3413	Florida Retirement System employers, as provided in s.
3414	121.021(39).
3415	(b) If a participant elects to receive his or her benefits
3416	upon termination of employment, the participant must submit a
3417	written application to the third-party administrator indicating
3418	his or her preferred distribution date and selecting an
3419	authorized method of distribution as provided in paragraph (c).
3420	The participant may defer receipt of benefits until he or she
3421	chooses to make such application, subject to federal
3422	requirements.
3423	(c) Upon receipt by the third-party administrator of a
3424	properly executed application for distribution of benefits, the
3425	total accumulated benefit shall be payable to the participant,
3426	as:
3427	1. A lump-sum distribution to the participant;
3428	2. A lump-sum direct rollover distribution whereby all
3429	accrued benefits, plus interest and investment earnings, are
3430	paid from the participant's account directly to the custodian of
3431	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
3432	the Internal Revenue Code, on behalf of the participant; or
3433	3. Periodic distributions, as authorized by the state
3434	board.
3435	(2) DISABILITY RETIREMENT BENEFITS.--Benefits provided
3436	under this subsection are payable in lieu of the benefits which
3437	would otherwise be payable under the provisions of subsection
3438	(1). Such benefits shall be funded entirely from employer
3439	contributions made under s. 121.571, transferred participant
3440	funds accumulated pursuant to paragraph (a), and interest and
3441	earnings thereon. Pursuant thereto:
3442	(a) Transfer of funds.--To qualify to receive monthly
3443	disability benefits under this subsection:
3444	1. All moneys accumulated in the participant's Public
3445	Employee Optional Retirement Program accounts, including vested
3446	and nonvested accumulations as described in s. 121.4501(6),
3447	shall be transferred from such individual accounts to the
3448	Division of Retirement for deposit in the disability account of
3449	the Florida Retirement System Trust Fund. Such moneys shall be
3450	separately accounted for. Earnings shall be credited on an
3451	annual basis for amounts held in the disability accounts of the
3452	Florida Retirement System Trust Fund based on actual earnings of
3453	the Florida Retirement System Trust Fund.
3454	2. If the participant has retained retirement credit he or
3455	she had earned under the defined benefit program of the Florida
3456	Retirement System as provided in s. 121.4501(3)(b), a sum
3457	representing the actuarial present value of such credit within
3458	the Florida Retirement System Trust Fund shall be reassigned by
3459	the Division of Retirement from the defined benefit program to
3460	the disability program as implemented under this subsection and
3461	shall be deposited in the disability account of the Florida
3462	Retirement System Trust Fund. Such moneys shall be separately
3463	accounted for.
3464	(b) Disability retirement; entitlement.--
3465	1. A participant of the Public Employee Optional
3466	Retirement Program who becomes totally and permanently disabled,
3467	as defined in s. 121.091(4)(b), after completing 8 years of
3468	creditable service, or a participant who becomes totally and
3469	permanently disabled in the line of duty regardless of his or
3470	her length of service, shall be entitled to a monthly disability
3471	benefit as provided herein.
3472	2. In order for service to apply toward the 8 years of
3473	service required to vest for regular disability benefits, or
3474	toward the creditable service used in calculating a service-
3475	based benefit as provided for under paragraph (g), the service
3476	must be creditable service as described below:
3477	a. The participant's period of service under the Public
3478	Employee Optional Retirement Program will be considered
3479	creditable service, except as provided in subparagraph d.
3480	b. If the participant has elected to retain credit for his
3481	or her service under the defined benefit program of the Florida
3482	Retirement System as provided under s. 121.4501(3)(b), all such
3483	service will be considered creditable service.
3484	c. If the participant has elected to transfer to his or
3485	her participant accounts a sum representing the present value of
3486	his or her retirement credit under the defined benefit program
3487	as provided under s. 121.4501(3)(c), the period of service under
3488	the defined benefit program represented in the present value
3489	amounts transferred will be considered creditable service for
3490	purposes of vesting for disability benefits, except as provided
3491	in subparagraph d.
3492	d. Whenever a participant has terminated employment and
3493	has taken distribution of his or her funds as provided in
3494	subsection (1), all creditable service represented by such
3495	distributed funds is forfeited for purposes of this subsection.
3496	(c) Disability retirement effective date.--The effective
3497	retirement date for a participant who applies and is approved
3498	for disability retirement shall be established as provided under
3499	s. 121.091(4)(a)2. and 3.
3500	(d) Total and permanent disability.--A participant shall
3501	be considered totally and permanently disabled if, in the
3502	opinion of the division, he or she is prevented, by reason of a
3503	medically determinable physical or mental impairment, from
3504	rendering useful and efficient service as an officer or
3505	employee.
3506	(e) Proof of disability.--The division, before approving
3507	payment of any disability retirement benefit, shall require
3508	proof that the participant is totally and permanently disabled
3509	in the same manner as provided for members of the defined
3510	benefit program of the Florida Retirement System under s.
3511	121.091(4)(c).
3512	(f) Disability retirement benefit.--Upon the disability
3513	retirement of a participant under this subsection, the
3514	participant shall receive a monthly benefit that shall begin to
3515	accrue on the first day of the month of disability retirement,
3516	as approved by the division, and shall be payable on the last
3517	day of that month and each month thereafter during his or her
3518	lifetime and continued disability. All disability benefits
3519	payable to such member shall be paid out of the disability
3520	account of the Florida Retirement System Trust Fund established
3521	under this subsection.
3522	(g) Computation of disability retirement benefit.--The
3523	amount of each monthly payment shall be calculated in the same
3524	manner as provided for members of the defined benefit program of
3525	the Florida Retirement System under s. 121.091(4)(f). For such
3526	purpose, creditable service under both the defined benefit
3527	program and the Public Employee Optional Retirement Program of
3528	the Florida Retirement System shall be applicable as provided
3529	under paragraph (b).
3530	(h) Reapplication.--A participant whose initial
3531	application for disability retirement has been denied may
3532	reapply for disability benefits in the same manner, and under
3533	the same conditions, as provided for members of the defined
3534	benefit program of the Florida Retirement System under s.
3535	121.091(4)(g).
3536	(i) Membership.--Upon approval of an application for
3537	disability benefits under this subsection, the applicant shall
3538	be transferred to the defined benefit program of the Florida
3539	Retirement System, effective upon his or her disability
3540	retirement effective date.
3541	(j) Option to cancel.--Any participant whose application
3542	for disability benefits is approved may cancel his or her
3543	application for disability benefits, provided that the
3544	cancellation request is received by the division before a
3545	disability retirement warrant has been deposited, cashed, or
3546	received by direct deposit. Upon such cancellation:
3547	1. The participant's transfer to the defined benefit
3548	program under paragraph (i) shall be nullified;
3549	2. The participant shall be retroactively reinstated in
3550	the Public Employee Optional Retirement Program without hiatus;
3551	3. All funds transferred to the Florida Retirement System
3552	Trust Fund under paragraph (a) shall be returned to the
3553	participant accounts from which such funds were drawn; and
3554	4. The participant may elect to receive the benefit
3555	payable under the provisions of subsection (1) in lieu of
3556	disability benefits as provided under this subsection.
3557	(k) Recovery from disability.--
3558	1. The division may require periodic reexaminations at the
3559	expense of the disability program account of the Florida
3560	Retirement System Trust Fund. Except as otherwise provided in
3561	subparagraph 2., the requirements, procedures, and restrictions
3562	relating to the conduct and review of such reexaminations,
3563	discontinuation or termination of benefits, reentry into
3564	employment, disability retirement after reentry into covered
3565	employment, and all other matters relating to recovery from
3566	disability shall be the same as are set forth under s.
3567	121.091(4)(h).
3568	2. Upon recovery from disability, any recipient of
3569	disability retirement benefits under this subsection shall be a
3570	compulsory member of the Public Employee Optional Retirement
3571	Program of the Florida Retirement System. The net difference
3572	between the recipient's original account balance transferred to
3573	the Florida Retirement System Trust Fund, including earnings,
3574	under paragraph (a) and total disability benefits paid to such
3575	recipient, if any, shall be determined as provided in sub-
3576	subparagraph a.
3577	a. An amount equal to the total benefits paid shall be
3578	subtracted from that portion of the transferred account balance
3579	consisting of vested accumulations as described under s.
3580	121.4501(6), if any, and an amount equal to the remainder of
3581	benefit amounts paid, if any, shall then be subtracted from any
3582	remaining portion consisting of nonvested accumulations as
3583	described under s. 121.4501(6).
3584	b. Amounts subtracted under sub-subparagraph a. shall be
3585	retained within the disability account of the Florida Retirement
3586	System Trust Fund. Any remaining account balance shall be
3587	transferred to the third-party administrator for disposition as
3588	provided under sub-subparagraph c. or sub-subparagraph d., as
3589	appropriate.
3590	c. If the recipient returns to covered employment,
3591	transferred amounts shall be deposited in individual accounts
3592	under the Public Employee Optional Retirement Program, as
3593	directed by the participant. Vested and nonvested amounts shall
3594	be separately accounted for as provided in s. 121.4501(6).
3595	d. If the recipient fails to return to covered employment
3596	upon recovery from disability:
3597	(I) Any remaining vested amount shall be deposited in
3598	individual accounts under the Public Employee Optional
3599	Retirement Program, as directed by the participant, and shall be
3600	payable as provided in subsection (1).
3601	(II) Any remaining nonvested amount shall be held in a
3602	suspense account and shall be forfeitable after 5 years as
3603	provided in s. 121.4501(6).
3604	3. If present value was reassigned from the defined
3605	benefit program to the disability program of the Florida
3606	Retirement System as provided under subparagraph (a)2., the full
3607	present value amount shall be returned to the defined benefit
3608	account within the Florida Retirement System Trust Fund and the
3609	affected individual's associated retirement credit under the
3610	defined benefit program shall be reinstated in full. Any benefit
3611	based upon such credit shall be calculated as provided in s.
3612	121.091(4)(h)1.
3613	(l) Nonadmissible causes of disability.--A participant
3614	shall not be entitled to receive a disability retirement benefit
3615	if the disability results from any injury or disease sustained
3616	or inflicted as described in s. 121.091(4)(i).
3617	(m) Disability retirement of justice or judge by order of
3618	Supreme Court.--
3619	1. If a participant is a justice of the Supreme Court,
3620	judge of a district court of appeal, circuit judge, or judge of
3621	a county court who has served for 6 years or more as an elected
3622	constitutional judicial officer, including service as a judicial
3623	officer in any court abolished pursuant to Art. V of the State
3624	Constitution, and who is retired for disability by order of the
3625	Supreme Court upon recommendation of the Judicial Qualifications
3626	Commission pursuant to the provisions of Art. V of the State
3627	Constitution, the participant's Option 1 monthly disability
3628	benefit amount as provided in s. 121.091(6)(a)1. shall be two-
3629	thirds of his or her monthly compensation as of the
3630	participant's disability retirement date. Such a participant
3631	may alternatively elect to receive an actuarially adjusted
3632	disability retirement benefit under any other option as provided
3633	in s. 121.091(6)(a), or to receive the normal benefit payable
3634	under the Public Employee Optional Retirement Program as set
3635	forth in subsection (1).
3636	2. If any justice or judge who is a participant of the
3637	Public Employee Optional Retirement Program of the Florida
3638	Retirement System is retired for disability by order of the
3639	Supreme Court upon recommendation of the Judicial Qualifications
3640	Commission pursuant to the provisions of Art. V of the State
3641	Constitution and elects to receive a monthly disability benefit
3642	under the provisions of this paragraph:
3643	a. Any present value amount that was transferred to his or
3644	her program account and all employer contributions made to such
3645	account on his or her behalf, plus interest and earnings
3646	thereon, shall be transferred to and deposited in the disability
3647	account of the Florida Retirement System Trust Fund; and
3648	b. The monthly benefits payable under this paragraph for
3649	any affected justice or judge retired from the Florida
3650	Retirement System pursuant to Art. V of the State Constitution
3651	shall be paid from the disability account of the Florida
3652	Retirement System Trust Fund.
3653	(n) Death of retiree or beneficiary.--Upon the death of a
3654	disabled retiree or beneficiary thereof who is receiving monthly
3655	benefits under this subsection, the monthly benefits shall be
3656	paid through the last day of the month of death and shall
3657	terminate, or be adjusted, if applicable, as of that date in
3658	accordance with the optional form of benefit selected at the
3659	time of retirement. The deceased disabled retiree's beneficiary
3660	shall also receive the amount of the participant's remaining
3661	account balance, if any, in the Florida Retirement System Trust
3662	Fund. The Division of RetirementDepartment of Management
3663	Servicesmay adopt rules necessary to administer this paragraph.
3664	(3) DEATH BENEFITS.--Under the Public Employee Optional
3665	Retirement Program:
3666	(a) Survivor benefits shall be payable in accordance with
3667	the following terms and conditions:
3668	1. To the extent vested, benefits shall be payable only to
3669	a participant's beneficiary or beneficiaries as designated by
3670	the participant. If a participant designates a primary
3671	beneficiary other than the participant's spouse, the
3672	participant's spouse shall be notified of the designation. This
3673	requirement shall not apply to the designation of one or more
3674	contingent beneficiaries to receive any benefits remaining upon
3675	the death of the primary beneficiary or beneficiaries.
3676	2. Benefits shall be paid by the third-party administrator
3677	or designated approved providers in accordance with the law, the
3678	contracts, and any applicable board rule or policy.
3679	3. To receive benefits under this subsection, the
3680	participant must be deceased.
3681	(b) In the event of a participant's death, all vested
3682	accumulations as described in s. 121.4501(6), less withholding
3683	taxes remitted to the Internal Revenue Service, shall be
3684	distributed, as provided in paragraph (c), to the participant's
3685	designated beneficiary or beneficiaries, or to the participant's
3686	estate, as if the participant retired on the date of death. No
3687	other death benefits shall be available for survivors of
3688	participants under the Public Employee Optional Retirement
3689	Program, except for such benefits, or coverage for such
3690	benefits, as are otherwise provided by law or are separately
3691	afforded by the employer, at the employer's discretion.
3692	(c) Upon receipt by the third-party administrator of a
3693	properly executed application for distribution of benefits, the
3694	total accumulated benefit shall be payable by the third-party
3695	administrator to the participant's surviving beneficiary or
3696	beneficiaries, as:
3697	1. A lump-sum distribution payable to the beneficiary or
3698	beneficiaries, or to the deceased participant's estate;
3699	2. An eligible rollover distribution on behalf of the
3700	surviving spouse of a deceased participant, whereby all accrued
3701	benefits, plus interest and investment earnings, are paid from
3702	the deceased participant's account directly to the custodian of
3703	an eligible retirement plan, as described in s. 402(c)(8)(B) of
3704	the Internal Revenue Code, on behalf of the surviving spouse; or
3705	3. A partial lump-sum payment whereby a portion of the
3706	accrued benefit is paid to the deceased participant's surviving
3707	spouse or other designated beneficiaries, less withholding taxes
3708	remitted to the Internal Revenue Service, and the remaining
3709	amount is transferred directly to the custodian of an eligible
3710	retirement plan, as described in s. 402(c)(8)(B) of the Internal
3711	Revenue Code, on behalf of the surviving spouse. The proportions
3712	must be specified by the participant or the surviving
3713	beneficiary.
3714
3715	This paragraph does not abrogate other applicable provisions of
3716	state or federal law providing for payment of death benefits.
3717	(4) LIMITATION ON LEGAL PROCESS.--The benefits payable to
3718	any person under the Public Employee Optional Retirement
3719	Program, and any contributions accumulated under such program,
3720	are not subject to assignment, execution, attachment, or any
3721	legal process, except for qualified domestic relations orders by
3722	a court of competent jurisdiction, income deduction orders as
3723	provided in s. 61.1301, and federal income tax levies.
3724	Section 44. Section 121.5911, Florida Statutes, is amended
3725	to read:
3726	121.5911 Disability retirement program; qualified status;
3727	rulemaking authority.--It is the intent of the Legislature that
3728	the disability retirement program for participants of the Public
3729	Employee Optional Retirement Program as created in this act must
3730	meet all applicable requirements of federal law for a qualified
3731	plan. The Department of Management Services or the Division of
3732	Retirementshall seek a private letter ruling from the Internal
3733	Revenue Service on the disability retirement program for
3734	participants of the Public Employee Optional Retirement Program.
3735	Consistent with the private letter ruling, the division
3736	Department of Management Servicesshall adopt any necessary
3737	rules required to maintain the qualified status of the
3738	disability retirement program and the Florida Retirement System
3739	defined benefit plan.
3740	Section 45. Subsection (1) of section 121.72, Florida
3741	Statutes, is amended to read:
3742	121.72 Allocations to optional retirement program
3743	participant accounts; percentage amounts.--
3744	(1) The allocations established in subsection (4) shall
3745	fund retirement benefits under the optional retirement program
3746	and shall be transferred monthly by the State Board of
3747	AdministrationDivision of Retirementfrom the Florida
3748	Retirement System Contributions Clearing Trust Fund to the
3749	third-party administrator for deposit in each participating
3750	employee's individual account based on the membership class of
3751	the participant.
3752	Section 46. Subsection (1) of section 121.73, Florida
3753	Statutes, is amended to read:
3754	121.73 Allocations for optional retirement program
3755	participant disability coverage; percentage amounts.--
3756	(1) The allocations established in subsection (3) shall be
3757	used to provide disability coverage for participants in the
3758	optional retirement program and shall be transferred monthly by
3759	the State Board of AdministrationDivision of Retirementfrom
3760	the Florida Retirement System Contributions Clearing Trust Fund
3761	to the disability account of the Florida Retirement System Trust
3762	Fund.
3763	Section 47. Section 121.74, Florida Statutes, is amended
3764	to read:
3765	121.74 Administrative and educational expenses.--Effective
3766	July 1, 2002, in addition to contributions required under s.
3767	121.71, employers participating in the Florida Retirement System
3768	shall contribute an amount equal to 0.15 percent of the payroll
3769	reported for each class or subclass of Florida Retirement System
3770	membership, which amount shall be transferred by the State Board
3771	of AdministrationDivision of Retirementfrom the Florida
3772	Retirement System Contributions Clearing Trust Fund to the
3773	board'sState Board of Administration'sAdministrative Trust
3774	Fund to offset the costs of administering the optional
3775	retirement program and the costs of providing educational
3776	services to participants in the defined benefit program and the
3777	optional retirement program. Approval of the Trustees of the
3778	State Board of Administration is required prior to the
3779	expenditure of these funds. Payments for third-party
3780	administrative or educational expenses shall be made only
3781	pursuant to the terms of the approved contracts for such
3782	services.
3783	Section 48. Subsection (6) of section 175.032, Florida
3784	Statutes, is amended to read:
3785	175.032 Definitions.--For any municipality, special fire
3786	control district, chapter plan, local law municipality, local
3787	law special fire control district, or local law plan under this
3788	chapter, the following words and phrases have the following
3789	meanings:
3790	(6) "Division" means the Division of Retirement of the
3791	State Board of AdministrationDepartment of Management Services.
3792	Section 49. Subsection (1) of section 175.121, Florida
3793	Statutes, is amended to read:
3794	175.121 Department of Revenue and Division of Retirement
3795	to keep accounts of deposits; disbursements.--For any
3796	municipality or special fire control district having a chapter
3797	or local law plan established pursuant to this chapter:
3798	(1) The Department of Revenue shall keep a separate
3799	account of all moneys collected for each municipality and each
3800	special fire control district under the provisions of this
3801	chapter. Seven and three-tenths percent of all moneys so
3802	collected shall be transferred to the General Revenue Fund. The
3803	balance of all moneys so collected shallmustbe transferred to
3804	the Police and Firefighters' Premium Tax Trust Fund and shall be
3805	separately accounted for by the division. The moneys budgeted as
3806	necessary to pay the expenses of the division for the daily
3807	oversight and monitoring of the firefighters' pension plans
3808	under this chapter and for the oversight and actuarial reviews
3809	conducted under part VII of chapter 112 are annually
3810	appropriated from the interest and investment income earned on
3811	the moneys collected for each municipality or special fire
3812	control district and deposited in the Police and Firefighters'
3813	Premium Tax Trust Fund. Interest and investment income
3814	remaining thereafter in the trust fund which is unexpended and
3815	otherwise unallocated by law shall be transferredrevertto the
3816	General Revenue Fund on June 30 of each year.
3817	Section 50. Section 175.1215, Florida Statutes, is amended
3818	to read:
3819	175.1215 Police and Firefighters' Premium Tax Trust
3820	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3821	created in the State Treasury, to be administered by the
3822	Division of Retirement of the Department of Management Services.
3823	Funds credited to the trust fund, as provided in chapter 95-250,
3824	Laws of Florida, or similar legislation, shall be expended for
3825	the purposes set forth in that legislation.
3826	Section 51. Subsection (1) of section 175.341, Florida
3827	Statutes, is amended to read:
3828	175.341 Duties of Division of Retirement; rulemaking
3829	authority; investments by State Board of Administration.--
3830	(1) The division shall be responsible for the daily
3831	oversight and monitoring for actuarial soundness of the
3832	firefighters' pension plans, whether chapter or local law plans,
3833	established under this chapter, for receiving and holding the
3834	premium tax moneys collected under this chapter, and, upon
3835	determining compliance with the provisions of this chapter, for
3836	disbursing those moneys to the firefighters' pension plans. The
3837	funds necessary to pay expenses for such administration are
3838	shall beannually appropriated from the interest and investment
3839	income earned on moneys deposited in the trust fund.
3840	Section 52. Subsection (7) of section 185.02, Florida
3841	Statutes, is amended to read:
3842	185.02 Definitions.--For any municipality, chapter plan,
3843	local law municipality, or local law plan under this chapter,
3844	the following words and phrases as used in this chapter shall
3845	have the following meanings, unless a different meaning is
3846	plainly required by the context:
3847	(7) "Division" means the Division of Retirement of the
3848	State Board of AdministrationDepartment of Management Services.
3849	Section 53. Subsection (1) of section 185.10, Florida
3850	Statutes, is amended to read:
3851	185.10 Department of Revenue and Division of Retirement to
3852	keep accounts of deposits; disbursements.--For any municipality
3853	having a chapter plan or local law plan under this chapter:
3854	(1) The Department of Revenue shall keep a separate
3855	account of all moneys collected for each municipality under the
3856	provisions of this chapter. Seven and three-tenths percent of
3857	all moneys so collected shall be transferred to the General
3858	Revenue Fund. The balance of all moneys so collected shallmust
3859	be transferred to the Police and Firefighters' Premium Tax Trust
3860	Fund and shall be separately accounted for by the division. The
3861	moneys budgeted as necessary to pay the expenses of the division
3862	for the daily oversight and monitoring of the police officers'
3863	retirement plans under this chapter and for the oversight and
3864	actuarial reviews conducted under part VII of chapter 112 are
3865	annually appropriated from the interest and investment income
3866	earned on the moneys collected for each municipality or special
3867	fire control district and deposited in the Police and
3868	Firefighters' Premium Tax Trust Fund. Interest and investment
3869	income remaining thereafter in the trust fund which is
3870	unexpended and otherwise unallocated by law shall be transferred
3871	revertto the General Revenue Fund on June 30 of each year.
3872	Section 54. Section 185.105, Florida Statutes, is amended
3873	to read:
3874	185.105 Police and Firefighters' Premium Tax Trust
3875	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3876	created in the State Treasury, to be administered by the
3877	Division of Retirement of the Department of Management Services.
3878	Funds credited to the trust fund, as provided in chapter 95-250,
3879	Laws of Florida, or similar legislation, shall be expended for
3880	the purposes set forth in that legislation.
3881	Section 55. Subsection (1) of section 185.23, Florida
3882	Statutes, is amended to read:
3883	185.23 Duties of Division of Retirement; rulemaking
3884	authority; investments by State Board of Administration.--
3885	(1) The division shall be responsible for the daily
3886	oversight and monitoring for actuarial soundness of the
3887	municipal police officers' retirement plans, whether chapter or
3888	local law plans, established under this chapter, for receiving
3889	and holding the premium tax moneys collected under this chapter,
3890	and, upon determining compliance with the provisions of this
3891	chapter, for disbursing those moneys to the municipal police
3892	officers' retirement plans. The funds to pay the expenses for
3893	such administration areshall be annuallyappropriated from the
3894	interest and investment income earned on moneys deposited in the
3895	trust fund.
3896	Section 56. Paragraph (ii) of subsection (4) of section
3897	215.20, Florida Statutes, is amended to read:
3898	215.20 Certain income and certain trust funds to
3899	contribute to the General Revenue Fund.--
3900	(4) The income of a revenue nature deposited in the
3901	following described trust funds, by whatever name designated, is
3902	that from which the deductions authorized by subsection (3)
3903	shall be made:
3904	(ii) The Police and Firefighters' Premium Tax Trust Fund
3905	established within the Department of Management Services.
3906
3907	The enumeration of the foregoing moneys or trust funds shall not
3908	prohibit the applicability thereto of s. 215.24 should the
3909	Governor determine that for the reasons mentioned in s. 215.24
3910	the money or trust funds should be exempt herefrom, as it is the
3911	purpose of this law to exempt income from its force and effect
3912	when, by the operation of this law, federal matching funds or
3913	contributions or private grants to any trust fund would be lost
3914	to the state.
3915	Section 57. Subsection (3) of section 215.28, Florida
3916	Statutes, is amended to read:
3917	215.28 United States securities, purchase by state and
3918	county officers and employees; deductions from salary.--
3919	(3) All deductions so made by any such disbursing
3920	authority shall be deposited in a trust account separate and
3921	apart from the funds of the state, county, or subordinate
3922	agency. Such trust account shall be created in the State
3923	Treasury and shall be administered by the State Board of
3924	Administration.Such account will be subject to withdrawal only
3925	for the purchase of United States securities on behalf of
3926	officers and employees, or for refunds to such persons in
3927	accordance with the provisions of this law. Whenever the sum of
3928	$18.75 or the purchase price of the security requested to be
3929	purchased is accumulated from deductions so made from the
3930	salaries or wages of an officer or employee, such disbursing
3931	agent shall arrange the purchase of the bond or security applied
3932	for and have it registered in the name or names requested in the
3933	deduction authorization. Securities so purchased will be
3934	delivered in such manner as may be convenient for the issuing
3935	agent and the purchaser. Any interest earned on moneys in such
3936	account while awaiting the accumulation of the purchase price of
3937	the security shall be transferred to the Florida Retirement
3938	System Trust Fund as reimbursement for administrative costs
3939	incurred by the Division of Retirement of the State Board of
3940	AdministrationDepartment of Management Servicesunder this
3941	section.
3942	Section 58. Subsection (7) of section 215.44, Florida
3943	Statutes, is amended to read:
3944	215.44 Board of Administration; powers and duties in
3945	relation to investment of trust funds.--
3946	(7) Investment and debt purchasing procedures and
3947	contracts of funds held in trust by the State Board of
3948	Administration, whether directly or incidentally related to the
3949	investment or debt transactions, and purchases of commodities or
3950	services related to the administration of pension benefits,are
3951	exempt from the provisions of chapter 287.
3952	Section 59. Subsection (3) of section 215.50, Florida
3953	Statutes, is amended to read:
3954	215.50 Custody of securities purchased; income.--
3955	(3) The Treasurer, as custodian of securities owned by the
3956	Florida Retirement System Trust Fund and the Florida Survivor
3957	Benefit Trust Fund, shall collect the interest, dividends,
3958	prepayments, maturities, proceeds from sales, and other income
3959	accruing from such assets. As such income is collected by the
3960	Treasurer, it shall be deposited directly into a commercial bank
3961	to the credit of the State Board of Administration. Such bank
3962	accounts as may be required for this purpose shall offer
3963	satisfactory collateral security as provided by chapter 280. In
3964	the event funds so deposited according to the provisions of this
3965	section are required for the purpose of paying benefits or other
3966	operational needs, the State Board of Administration shall remit
3967	to the Florida Retirement System Trust Fund in the State
3968	Treasury such amounts as are requiredmay be requested by the
3969	Department of Management Services.
3970	Section 60. Section 215.52, Florida Statutes, is amended
3971	to read:
3972	215.52 Rules and regulations.--The board may adoptshall
3973	have the power and authority to make reasonable rules and
3974	regulations necessary to implement general law conferring powers
3975	and duties upon itcarry out the provisions of ss. 215.44-
3976	215.53.
3977	Section 61. Subsections (2), (3), (11), and (13) of
3978	section 238.01, Florida Statutes, are amended to read:
3979	238.01 Definitions.--The following words and phrases as
3980	used in this chapter shall have the following meanings unless a
3981	different meaning is plainly required by the context:
3982	(2) "Division" means the Division of Retirement of the
3983	State Board of Administration"Department" means the Department
3984	of Management Services.
3985	(3) "Teacher" means any member of the teaching or
3986	professional staff and any certificated employee of any public
3987	free school, of any district school system and vocational
3988	school, any member of the teaching or professional staff of the
3989	Florida School for the Deaf and Blind, child training schools of
3990	the Department of Juvenile Justice, the Department of
3991	Corrections, and any tax-supported institution of higher
3992	learning of the state, and any member and any certified employee
3993	of the Department of Education, any certified employee of the
3994	retirement system, any full-time employee of any nonprofit
3995	professional association or corporation of teachers functioning
3996	in Florida on a statewide basis, which seeks to protect and
3997	improve public school opportunities for children and advance the
3998	professional and welfare status of its members, any person now
3999	serving as superintendent, or who was serving as county
4000	superintendent of public instruction on July 1, 1939, and any
4001	hereafter duly elected or appointed superintendent, who holds a
4002	valid Florida teachers' certificate. In all cases of doubt the
4003	divisionDepartment of Management Servicesshall determine
4004	whether any person is a teacher as defined herein.
4005	(11) "Regular interest" means interest at such rate as may
4006	be set from time to time by the divisionDepartment of
4007	Management Services.
4008	(13) "Earnable compensation" means the full compensation
4009	payable to a teacher working the full working time for his or
4010	her position. In respect to plans A, B, C, and D only, in cases
4011	where compensation includes maintenance, the divisionDepartment
4012	of Management Servicesshall fix the value of that part of the
4013	compensation not paid in money; provided that all members shall
4014	from July 1, 1955, make contributions to the retirement system
4015	on the basis of "earnable compensation" as defined herein and
4016	all persons who are members on July 1, 1955, may, upon
4017	application, have their "earnable compensation" for the time
4018	during which they have been members prior to that date
4019	determined on the basis of "earnable compensation" as defined in
4020	this law, upon paying to the retirement system, on or before the
4021	date of retirement, a sum equal to the additional contribution
4022	with accumulated regular interest thereon they would have made
4023	if "earnable compensation" had been defined, at the time they
4024	became members, as it is now defined. However, earnable
4025	compensation for all plan years beginning on or after July 1,
4026	1990, shall not include any amounts in excess of the
4027	compensation limitation (originally $200,000) established by s.
4028	401(a)(17) of the Internal Revenue Code prior to the Omnibus
4029	Budget Reconciliation Act of 1993, which limitation shall be
4030	adjusted for changes in the cost of living since 1989, in the
4031	manner provided by s. 401(a)(17) of the Internal Revenue Code of
4032	1991. This limitation, which has been part of the Teachers'
4033	Retirement System since plan years beginning on or after July 1,
4034	1990, shall be adjusted as required by federal law for qualified
4035	government plans.
4036	Section 62. Section 238.02, Florida Statutes, is amended
4037	to read:
4038	238.02 Name and date of establishment.--A retirement
4039	system is established and placed under the management of the
4040	divisionDepartment of Management Servicesfor the purpose of
4041	providing retirement allowances and other benefits for teachers
4042	of the state. The retirement system shall begin operations on
4043	July 1, 1939. It has such powers and privileges of a
4044	corporation as may be necessary to carry out effectively the
4045	provisions of this chapter and shall be known as the "Teachers'
4046	Retirement System of the State," and by such name all of its
4047	business shall be transacted, all of its funds invested, and all
4048	of its cash and securities and other property held in trust for
4049	the purpose for which received.
4050	Section 63. Section 238.03, Florida Statutes, is amended
4051	to read:
4052	238.03 Administration.--
4053	(1) The general administration and the responsibility for
4054	the proper operation of the retirement system and for making
4055	effective the provisions of this chapter are vested in the
4056	divisionDepartment of Management Services. Subject to the
4057	limitation of this chapter, the divisiondepartmentshall, from
4058	time to time, establish rules and regulations for the
4059	administration and transaction of the business of the retirement
4060	system and shall perform such other functions as are required
4061	for the execution of this chapter.
4062	(2) The divisiondepartmentshall keep in convenient form
4063	such data as shall be necessary for actuarial valuation of the
4064	various funds created by this chapter and for checking the
4065	experience of the retirement system.
4066	(3) The Department of Legal Affairs, at the option of the
4067	State Board of Administration, shall be the legal adviser of the
4068	divisiondepartment.
4069	(4) The divisiondepartmentshall employ such agents,
4070	servants and employees as in its judgment may be necessary to
4071	carry out the terms and provisions of this chapter and shall
4072	provide for their compensation. Among the employees of the
4073	divisiondepartmentshall be an actuary who shall be the
4074	technical adviser of the divisiondepartmenton matters
4075	regarding the operation of the funds created by the provisions
4076	of this chapter and who shall perform such other duties as are
4077	required in connection therewith.
4078	(5) In the year 1943 and at least once in each 5-year
4079	period thereafter, the actuary shall make an actuarial
4080	investigation of the mortality, service and salary experience of
4081	the members and beneficiaries as defined in this chapter, and
4082	shall make a valuation of the various funds created by the
4083	chapter, and having regard to such investigation and valuation,
4084	the divisiondepartmentshall adopt such mortality and service
4085	tables as shall be deemed necessary, and shall certify the rates
4086	of contribution payable under the provisions of this chapter.
4087	(6) The actuary shall make an annual valuation of the
4088	assets and liabilities of the funds of the retirement system on
4089	the basis of the tables adopted by the divisiondepartmentin
4090	accordance with the requirements of this section, and shall
4091	prepare an annual statement of the amounts to be contributed by
4092	the state in accordance with s. 238.09.
4093	(7) The divisiondepartmentshall publish annually the
4094	valuation, as certified by the actuary, of the assets and
4095	liabilities of the various funds created by this chapter, a
4096	statement as to the receipts and disbursements of the funds, and
4097	a statement as to the accumulated cash and securities of the
4098	funds.
4099	(8) The divisiondepartmentshall keep a record of all of
4100	its proceedings and such record shall be open to inspection by
4101	the public.
4102	(9) The divisiondepartmentis authorized to photograph
4103	and reduce to microfilm as a permanent record, its ledger sheets
4104	showing the salary and contributions of members of the
4105	retirement system, also the records of deceased members of the
4106	system and thereupon to destroy the documents from which such
4107	films are photographed.
4108	Section 64. Paragraph (b) of subsection (1), paragraphs
4109	(a) and (b) of subsection (3), and subsection (4) of section
4110	238.05, Florida Statutes, are amended to read:
4111	238.05 Membership.--
4112	(1) The membership of the retirement system shall consist
4113	of the following:
4114	(b) All persons who became or who become teachers on or
4115	after July 1, 1939, except as provided in paragraph (a) and
4116	subsection (5) hereof, shall become members of the retirement
4117	system by virtue of their appointment as teachers. However,
4118	employees who are not members of the teaching or professional
4119	staff shall only become members of the retirement system by
4120	filing a notice with the divisiondepartmentof their election
4121	to become members.
4122	(3) Except as otherwise provided in s. 238.07(9),
4123	membership of any person in the retirement system will cease if
4124	he or she is continuously unemployed as a teacher for a period
4125	of more than 5 consecutive years, or upon the withdrawal by the
4126	member of his or her accumulated contributions as provided in s.
4127	238.07(13), or upon retirement, or upon death; provided that the
4128	adjustments prescribed below are to be made for persons who
4129	enter the Armed Forces of the United States during a period of
4130	war or national emergency and for persons who are granted leaves
4131	of absence. Any member of the retirement system who within 1
4132	year before the time of entering the Armed Forces of the United
4133	States was a teacher, as defined in s. 238.01, or was engaged in
4134	other public educational work within the state, and member of
4135	the Teachers' Retirement System at the time of induction, or who
4136	has been or is granted leave of absence, shall be permitted to
4137	elect to continue his or her membership in the Teachers'
4138	Retirement System; and membership service shall be allowed for
4139	the period covered by service in the Armed Forces of the United
4140	States or by leave of absence under the following conditions:
4141	(a) A person who has been granted leave of absence shall
4142	file with the divisiondepartmentbefore his or her next
4143	contribution is due an application to continue his or her
4144	membership during the period covered by the person's leave of
4145	absence and, if such application is filed, shall make his or her
4146	contribution to the retirement system on the basis of his or her
4147	last previous annual salary as a teacher, and shall, prior to
4148	retirement, pay in full to the system such contributions with
4149	accumulated regular interest. Such contributions with interest
4150	may be paid at one time or in monthly, quarterly, semiannual, or
4151	annual payments in the person's discretion.
4152	(b) A person who enters or who has entered the Armed
4153	Forces of the United States may either continue his or her
4154	membership according to the plan outlined under paragraph (a)
4155	or, in lieu thereof, may file with the divisiondepartmentat
4156	any time following the close of his or her military service an
4157	application that his or her membership be continued and that
4158	membership service be allowed for not more than 5 years of his
4159	or her period of service in the Armed Forces of the United
4160	States during any period of war or national emergency; provided
4161	that any such person shall, prior to retirement, pay in full his
4162	or her contributions with accumulated regular interest to the
4163	retirement system for the period for which he or she is entitled
4164	to membership service on the basis of his or her last previous
4165	annual salary as a teacher. Such contributions with interest may
4166	be paid to the divisiondepartmentat one time or in monthly,
4167	quarterly, semiannual, or annual payments in the person's
4168	discretion.
4169	(4) The divisiondepartmentmay in its discretion deny the
4170	right to become members to any class of teachers who are serving
4171	on a temporary or any other than a per annum basis, and it may
4172	also in its discretion make optional with members in any such
4173	class their individual entrance into membership.
4174	Section 65. Subsections (3), (10), (12), (13), (15A), and
4175	(16) of section 238.07, Florida Statutes, are amended to read:
4176	238.07 Regular benefits; survivor benefits.--
4177	(3) Any member who, prior to July 1, 1955, elected to
4178	retire under one of plans A, B, C, or D may elect, prior to
4179	retirement, to retire under plan E in accordance with the terms
4180	hereof. Any person who became a member on or after July 1,
4181	1955, shall retire under plan E, except as provided for under s.
4182	238.31. With respect to plans A, B, C, or D, any member shall
4183	have the right at any time to change to a plan of retirement
4184	requiring a lower rate of contribution. The divisionDepartment
4185	of Management Servicesshall also notify the member of the rate
4186	of contribution such member must make from and after selecting
4187	such plan of retirement. Any member in service may retire upon
4188	reaching the age of retirement formerly selected by him or her,
4189	upon the member's written application to the divisiondepartment
4190	setting forth at which time, not more than 90 days subsequent to
4191	the execution and filing of such application, it is his or her
4192	desire to retire notwithstanding that during such period of
4193	notification he or she may have separated from service. Upon
4194	receipt of such application for retirement, the division
4195	departmentshall retire such member not more than 90 days
4196	thereafter. Before such member may retire he or she must file
4197	with the divisiondepartmenthis or her written selection of one
4198	of the optional benefits provided in s. 238.08.
4199	(10) Any member in service, who has 10 or more years of
4200	creditable service, may upon the application of his or her
4201	employer or upon his or her own application, be retired by the
4202	divisiondepartmentnot less than 30 nor more than 90 days next
4203	following the date of filing such application, on a disability
4204	retirement allowance; provided that a physician licensed by this
4205	state examines and certifies that such member is mentally or
4206	physically incapacitated for the further performance of duty,
4207	that such incapacity is likely to be permanent, and that such
4208	member should be retired, and the divisiondepartmentconcurs.
4209	In making the determination, the divisiondepartmentmay require
4210	other evidence of disability as deemed appropriate.
4211	(12)(a) Once each year during the first 5 years following
4212	the retirement of a member on a disability retirement allowance,
4213	and once in every 3-year period thereafter, the division
4214	departmentmay require any disability beneficiary who has not
4215	yet attained his or her minimum service retirement age to
4216	undergo a medical examination by a physician licensed by this
4217	state and to submit any other evidence of disability as required
4218	by the divisiondepartment. Should a disability beneficiary who
4219	has not yet attained his or her minimum service retirement age
4220	refuse to submit to any such medical examination, his or her
4221	retirement allowance shall be discontinued until his or her
4222	withdrawal of such refusal, and should such refusal continue for
4223	1 year, all of the disability beneficiary's rights in and to his
4224	or her pension shall be forfeited.
4225	(b) If the divisiondepartmentfinds that a disability
4226	beneficiary is engaged in or is able to engage in a gainful
4227	occupation paying more than the difference between his or her
4228	disability retirement allowance and his or her average final
4229	compensation, the amount of the beneficiary's pension shall be
4230	reduced to an amount which, together with his or her annuity and
4231	the amount earnable by him or her, shall equal the amount of his
4232	or her average final compensation. Should the beneficiary's
4233	earning capacity later be changed, the amount of his or her
4234	pension may be further modified; provided that the pension so
4235	modified shall not exceed the amount of the pension allowable
4236	under subsection (11), at the time of retirement, nor an amount
4237	which, when added to the amount earnable by the beneficiary,
4238	together with his or her annuity, equals the amount of his or
4239	her average final compensation. A beneficiary restored to
4240	active service at a salary less than the average final
4241	compensation upon the basis of which he or she was retired shall
4242	not become a member of the retirement system at that time.
4243	(c) Should a disability beneficiary under his or her
4244	minimum service retirement age be at any time in service at a
4245	salary equal to or greater than his or her average final
4246	compensation upon the basis of which he or she was retired, the
4247	beneficiary's disability retirement allowance shall cease and he
4248	or she shall again become a member of the retirement system and
4249	shall contribute thereafter at the same rate at which he or she
4250	paid prior to disability. Any prior service certificate, on the
4251	basis of which his or her allowance was computed at the time of
4252	his or her disability retirement, shall be restored to full
4253	force and effect; and, in addition, upon his or her subsequent
4254	retirement he or she shall be credited with all his or her
4255	membership service on the basis of which his or her allowance
4256	was computed at the time of his or her disability retirement.
4257	(13) Should a member cease to be a teacher except by death
4258	or by retirement under the provisions of this chapter, the
4259	member shall be paid the amount of his or her accumulated
4260	contributions. Should a member die before retirement, the
4261	amount of his or her accumulated contributions shall be paid to
4262	such person, if any, as he or she shall have nominated by
4263	written designation duly executed and filed with the division
4264	department; otherwise, to his or her executors or
4265	administrators.
4266	(15A)(a) Any member of the Teachers' Retirement System who
4267	has heretofore, or who hereafter, retires with no less than 10
4268	years of creditable service and who has passed his or her 65th
4269	birthday, may, upon application to the divisiondepartment, have
4270	his or her retirement allowance redetermined and thereupon shall
4271	be entitled to a monthly service retirement allowance which
4272	shall be equal to $4 multiplied by the number of years of the
4273	member's creditable service which shall be payable monthly
4274	during his or her retirement; provided, that the amount of
4275	retirement allowance as determined hereunder, shall be reduced
4276	by an amount equal to:
4277	1. Any social security benefits received by the member,
4278	and
4279	2. Any social security benefits that the member is
4280	eligible to receive by reason of his or her own right or through
4281	his or her spouse.
4282	(b) No payment shall be made to a member of the Teachers'
4283	Retirement System under this act, until the divisiondepartment
4284	has determined the social security status of such member.
4285	(c) Eligibility of a member of the Teachers' Retirement
4286	System shall be determined under the social security laws and
4287	regulations; provided, however, that a member shall be
4288	considered eligible if the member or the member's spouse has
4289	reached 65 years of age and would draw social security if the
4290	member or the member's spouse were not engaged in activity that
4291	results in the member or the member's spouse receiving income
4292	that would make him or her ineligible to receive social security
4293	benefits. A member of the Teachers' Retirement System shall be
4294	deemed to be eligible for social security benefits if the member
4295	has this eligibility in his or her own right or through his or
4296	her spouse.
4297	(d) The divisiondepartmentshall review, at least
4298	annually, the social security status of all members of the
4299	Teachers' Retirement System receiving payment under this act and
4300	shall increase or decrease payments to such members as shall be
4301	necessary to carry out the intent of this act.
4302	(e) No member of the Teachers' Retirement System shall
4303	have his or her retirement allowance reduced or any of his or
4304	her rights impaired by reason of this act.
4305	(f) This subsection shall take effect on January 1, 1962.
4306	(16)(a) Definitions under survivor benefits are:
4307	1. A dependent is a child, widow, widower, or parent of
4308	the deceased member who was receiving not less than one-half of
4309	his or her support from the deceased member at the time of the
4310	death of such member.
4311	2. A child is a natural or legally adopted child of a
4312	member, who:
4313	a. Is under 18 years of age, or
4314	b. Is over 18 years of age but not over 22 years of age
4315	and is enrolled as a student in an accredited educational
4316	institution, or
4317	c. Is 18 years of age or older and is physically or
4318	mentally incapable of self-support, when such mental and
4319	physical incapacity occurred prior to such child obtaining the
4320	age of 18 years. Such person shall cease to be regarded as a
4321	child upon the termination of such physical or mental
4322	disability. The determination as to such physical or mental
4323	incapability shall be vested in the divisiondepartment.
4324
4325
4326	No person shall be considered a child who has married or, except
4327	as provided in sub-subparagraph 2.b. or as to a child who is
4328	physically or mentally incapable of self-support as hereinbefore
4329	set forth, has become 18 years of age.
4330	3. A parent is a natural parent of a member and includes a
4331	lawful spouse of a natural parent.
4332	4. A beneficiary is a person who is entitled to benefits
4333	under this subsection by reason of his or her relation to a
4334	deceased member during the lifetime of such member.
4335	(b) In addition to all other benefits to which a member
4336	shall, subject to the conditions set out below, be entitled, the
4337	beneficiary of such member shall, upon the death of such member,
4338	receive the following benefits:
4339
4340	Minimum period of paid service of member in Florida as regular full-time teacher Beneficiaries of deceased member Benefits
4341	Beginning on July 1, 1971, the lump-sum death benefit, provided
4342	in item 7 above for the retired teacher, shall apply to all
4343	present and future retirees of the systems.
4344	(c) The payment of survivor benefits shall begin as of the
4345	month immediately following the death of the member except where
4346	the beneficiary has not reached the age required to receive
4347	benefits under paragraph (b), in which event the payment of
4348	survivor benefits shall begin as of the month immediately
4349	following the month in which the beneficiary reaches the
4350	required age. Provided that if death occurs during the first 3
4351	years of employment, the payment of survivor benefits shall be
4352	reduced by the amount of monthly benefits the member's survivors
4353	are entitled to receive under federal social security as either
4354	a survivor of the member or as a covered worker under federal
4355	social security.
4356	(d) Limitations on rights of beneficiary are:
4357	1. The person named as beneficiary in paragraph (b) shall,
4358	in no event, be entitled to receive the benefits set out in such
4359	paragraph unless the death of the member under whom such
4360	beneficiary claims occurs within the period of time after the
4361	member has served in Florida as follows:
4362
4363	Minimum number of years Period after serving in
4364	of service in Florida Florida in which
4365	death of member
4366	occurs
4367
4368	3 to 5...................................................2 years
4369	6 to 9...................................................5 years
4370	10 or more..............................................10 years
4371
4372	2. Upon the death of a member, the divisiondepartment
4373	shall make a determination of the beneficiary or beneficiaries
4374	of the deceased member and shall pay survivor benefits to such
4375	beneficiary or beneficiaries beginning 1 month immediately
4376	following the death of the member except where the beneficiary
4377	has not reached the age required to receive benefits under
4378	paragraph (b), in which event the payment of survivor benefits
4379	shall begin as of the month immediately following the month in
4380	which the beneficiary reaches the required age. When required
4381	by the divisiondepartment, the beneficiary or beneficiaries
4382	shall file an application for survivor benefits upon forms
4383	prescribed by the divisiondepartment.
4384	3. The beneficiaries of a member to receive survivor
4385	benefits are fixed by this subsection, and a member may not buy
4386	or otherwise change such benefits. He or she may, however,
4387	designate the beneficiary to receive the $500 death benefits.
4388	If a member fails to make this designation, the $500 death
4389	benefits shall be paid to his or her executor or administrator.
4390	4. The beneficiary or beneficiaries of a member whose
4391	death occurs while he or she is in service or while he or she is
4392	receiving a disability allowance under subsection (11), shall
4393	receive survivor benefits under this subsection determined by
4394	the years of service in Florida of the deceased member as set
4395	out in paragraph (b). The requirement that the death of a
4396	member must occur within a certain period of time after service
4397	in Florida as set out in subparagraph (d)1. shall not apply to a
4398	member receiving a disability benefit at the time of his or her
4399	death.
4400	Section 66. Subsection (2), paragraph (b) of subsection
4401	(5), and subsections (6) and (7) of section 238.08, Florida
4402	Statutes, are amended to read:
4403	238.08 Optional benefits.--A member may elect to receive
4404	his or her benefits under the terms of this chapter according to
4405	the provisions of any one of the following options:
4406	(2) Option two. A member may elect to receive on
4407	retirement the actuarial equivalent (at that time) of his or her
4408	retirement allowance in a reduced retirement allowance payable
4409	throughout life, with the provisions that if the member dies
4410	before he or she has received in payment of his or her annuity
4411	the amount of his or her accumulated contributions, as they were
4412	at the time of his or her retirement, the balance shall be paid
4413	to such person, if any, as he or she shall nominate by written
4414	designation duly acknowledged and filed with the division
4415	department; otherwise, to his or her executors or
4416	administrators.
4417	(5)
4418	(b) A member who elects Option three or Option four shall,
4419	on a form provided for that purpose, designate his or her spouse
4420	as beneficiary to receive the benefits which continue to be
4421	payable upon the death of the member. After such benefits have
4422	commenced under Option three or Option four, the retired member
4423	may change the designation of his or her spouse as beneficiary
4424	only twice. If such a retired member remarries and wishes to
4425	make such a change, he or she may do so by filing with the
4426	divisiondepartmenta notarized change of spouse designation
4427	form and shall notify the former spouse in writing of such
4428	change. Upon receipt of a completed change of spouse
4429	designation form, the divisiondepartmentshall adjust the
4430	member's monthly benefit by the application of actuarial tables
4431	and calculations developed to ensure that the benefit paid is
4432	the actuarial equivalent of the present value of the member's
4433	current benefit. The consent of a retired member's formerly
4434	designated spouse as beneficiary to any such change shall not be
4435	required.
4436	(6) Notwithstanding any provision in this chapter to the
4437	contrary, the following provisions shall apply to any member of
4438	the retirement system who has accumulated at least 10 years of
4439	service and dies prior to retirement:
4440	(a) If the deceased member's surviving spouse has
4441	previously received a refund of the member's accumulated
4442	contributions made to the retirement system, such spouse may pay
4443	to the divisiondepartmentan amount equal to the sum of the
4444	amount of the deceased member's contributions previously
4445	refunded and regular interest compounded annually on the amount
4446	of such refunded contributions from the date of refund to the
4447	date of payment to the divisiondepartment, and by so doing be
4448	entitled to receive the monthly retirement benefit provided in
4449	paragraph (c).
4450	(b) If the deceased member's surviving spouse has not
4451	received a refund of the deceased member's accumulated
4452	contributions, such spouse shall, upon application to the
4453	divisiondepartmentwithin 30 days of the death of the member,
4454	receive the monthly retirement benefit provided in paragraph
4455	(c).
4456	(c) The monthly benefit payable to the spouse described in
4457	paragraph (a) or paragraph (b) shall be the amount which would
4458	have been payable to the deceased member's spouse, assuming that
4459	the member retired on the date of his or her death and had
4460	selected the option in subsection (3), such benefit to be based
4461	on the ages of the spouse and member as of the date of death of
4462	the member. The benefit shall commence on the first day of the
4463	month following the payment of the aforesaid amount to the
4464	divisiondepartment, if paragraph (a) is applicable, or on the
4465	first day of the month following the receipt of the spouse's
4466	application by the divisiondepartment, if paragraph (b) is
4467	applicable.
4468	(7) The surviving spouse or other dependent of any member
4469	whose employment is terminated by death shall, upon application
4470	to the divisiondepartment, be permitted to pay the required
4471	contributions for any service performed by the member which
4472	could have been claimed by the member at the time of his or her
4473	death. Such service shall be added to the creditable service of
4474	the member and shall be used in the calculation of any benefits
4475	which may be payable to the surviving spouse or other surviving
4476	dependent.
4477	Section 67. Paragraphs (a), (c), and (d) of subsection
4478	(1), paragraphs (b) and (c) of subsection (3), subsection (4),
4479	and paragraph (b) of subsection (5) of section 238.09, Florida
4480	Statutes, are amended to read:
4481	238.09 Method of financing.--All of the assets of the
4482	retirement system shall be credited, according to the purposes
4483	for which they are held, to one of four funds; namely, the
4484	Annuity Savings Trust Fund, the Pension Accumulation Trust Fund,
4485	the Expense Trust Fund, and the Survivors' Benefit Trust Fund.
4486	(1) The Annuity Savings Trust Fund shall be a fund in
4487	which shall be accumulated contributions made from the salaries
4488	of members under the provisions of paragraph (c) or paragraph
4489	(f). Contribution to, payments from, the Annuity Savings Trust
4490	Fund shall be made as follows:
4491	(a) With respect to plan A, B, C, or D, upon the basis of
4492	such tables as the divisionDepartment of Management Services
4493	shall adopt, and regular interest, the actuary of the retirement
4494	system shall determine for each member the proportion of
4495	earnable compensation which, when deducted from each payment of
4496	his or her prospective earnable annual compensation prior to his
4497	or her minimum service retirement age, and accumulated at
4498	regular interest until such age, shall be computed to provide at
4499	such age:
4500	1. An annuity equal to one one-hundred-fortieth of his or
4501	her average final compensation multiplied by the number of his
4502	or her years of membership in the case of each member electing
4503	to retire under the provisions of plan A or B.
4504	2. An annuity equal to one one-hundred-twentieth of his or
4505	her average final compensation multiplied by the number of his
4506	or her years of membership service in the case of each member
4507	electing to retire under the provisions of plan C.
4508	3. An annuity equal to one one-hundredth of his or her
4509	average final compensation multiplied by the number of his or
4510	her years of membership service in the case of each member
4511	electing to retire under the provisions of plan D.
4512
4513	In the case of any member who has attained his or her minimum
4514	service retirement age prior to becoming a member, the
4515	proportion of salary applicable to such member, with respect to
4516	plan A, B, C, or D, shall be the proportion computed for the age
4517	1 year younger than his or her minimum service retirement age.
4518	(c) The divisiondepartmentshall certify to each employer
4519	the proportion of the earnable compensation of each member who
4520	is compensated by the employer, and the employer shall cause to
4521	be deducted from the salary of each member on each and every
4522	payroll for each and every payroll period an amount equal to the
4523	proportion of the member's earnable compensation so computed.
4524	With respect to plan A, B, C, or D, the employer shall not make
4525	any deduction for annuity purposes from the compensation of a
4526	member who has attained the age of 60 years, if such member
4527	elects not to contribute.
4528	(d) In determining the amount earnable by a member in a
4529	payroll period, the divisiondepartmentmay consider the rate of
4530	compensation payable to such member on the first day of the
4531	payroll period as continuing throughout such payroll period, and
4532	it may omit deductions from compensation for any period less
4533	than a full payroll period if a teacher was not a member on the
4534	first day of the payroll period, and to facilitate the making of
4535	deductions, it may modify any deduction required of any member
4536	by such an amount as shall not exceed one-tenth of 1 percent of
4537	the annual salary from which said deduction is to be made.
4538	(3) The Pension Accumulation Trust Fund shall be the fund
4539	in which shall be accumulated all reserves for the payment of
4540	all annuities or benefits in lieu of annuities on retired
4541	members and all pensions and other benefits payable from
4542	contributions made by the members and by the employers, from
4543	which annuities, pensions and benefits in lieu thereof shall be
4544	paid. Contributions to, and payments from, the Pension
4545	Accumulation Trust Fund, other than as set forth in subsections
4546	(2) and (3) herein, shall be made as follows:
4547	(b) On the basis of regular interest and of such mortality
4548	and other tables as shall be adopted by the divisiondepartment,
4549	the actuary engaged by the divisiondepartmentto make each
4550	valuation required by this chapter shall, during the period over
4551	which the accrued liability contribution is payable, determine,
4552	immediately after making such valuation, the uniform and
4553	constant percentage of the earnable compensation of the average
4554	new entrant, which, if contributed on the basis of his or her
4555	compensation throughout his or her entire period of service,
4556	would be sufficient to provide for the payment of any pension
4557	payable by the state on his or her account. The rate percent so
4558	determined shall be known as the normal contribution rate. After
4559	the accrued liability contribution has ceased to be payable, the
4560	normal contribution rate shall be the rate percent of the
4561	earnable compensation of all members, obtained by deducting from
4562	the total liabilities of the Pension Accumulation Trust Fund the
4563	amount of the funds in hand to the credit of that fund and
4564	dividing the remainder by 1 percent of the present value of the
4565	prospective future salaries of all members as computed on the
4566	basis of the mortality and service tables adopted by the
4567	divisiondepartmentand on the basis of regular interest. The
4568	normal rate of contribution shall be determined and certified to
4569	the divisiondepartmentby the actuary after each valuation and
4570	shall continue in force until a new valuation and certification
4571	are made.
4572	(c) Immediately succeeding the first valuation, the
4573	actuary engaged by the divisiondepartmentshall compute the
4574	rate percent of the total earnable compensation of all members
4575	which is equivalent to 4 percent of the amount of the total
4576	liability for pensions on account of all members and
4577	beneficiaries and not dischargeable by the present assets of the
4578	Pension Accumulation Trust Fund and by the aforesaid normal
4579	contribution if made on account of such members during the
4580	remainder of their active service. The rate percent, originally
4581	so determined, shall be known as the accrued liability
4582	contribution rate.
4583	(4) The Expense Trust Fund shall be the fund to which
4584	shall be credited all moneys contributed for the administrative
4585	expenses of the retirement system and from which shall be paid
4586	all expenses incurred in connection with the administration and
4587	operation of the retirement system. Contribution to the Expense
4588	Trust Fund shall be made by transfer from interest earnings on
4589	investments in the Annuity Savings Trust Fund. Such transfers
4590	shall be approved by the State Board of Administration in
4591	accordance with s. 215.44(4)regulated by the Legislature
4592	pursuant to budgets filed in accordance with the provisions of
4593	chapter 216.
4594	(5)
4595	(b) The divisiondepartmentshall annually certify to each
4596	employer, at the time it makes the certification to the employer
4597	under paragraph (1)(c), the rate of twenty-five-hundredths
4598	percent to be applied by the employer to the salary of each
4599	member who is compensated by the employer, and the employer
4600	shall cause to be deducted from the salary of each member on
4601	each and every payroll for each and every payroll period an
4602	amount equal to twenty-five-hundredths percent of the member's
4603	salary paid by the employer and the employer shall remit monthly
4604	such deducted amounts to the divisiondepartmentwhich shall
4605	place the same in the Survivors' Benefit Trust Fund of the
4606	Teachers' Retirement System of the state. The amount of
4607	contributions by a member to the Survivors' Benefit Trust Fund
4608	shall, in no event, be refundable to the member or his or her
4609	beneficiaries.
4610	Section 68. Section 238.10, Florida Statutes, is amended
4611	to read:
4612	238.10 Management of funds.--The divisionDepartment of
4613	Management Services, annually, shall allow regular interest on
4614	the amount for the preceding year to the credit of each of the
4615	funds of the retirement system, and to the credit of the
4616	individual account therein, if any, with the exception of the
4617	expense fund, from the interest and dividends earned from
4618	investments.
4619	Section 69. Paragraph (b) of subsection (1) and
4620	subsections (2) and (3) of section 238.11, Florida Statutes, are
4621	amended to read:
4622	238.11 Collection of contributions.--
4623	(1) The collection of contributions shall be as follows:
4624	(b) Each employer shall transmit monthly to the division
4625	Department of Management Servicesa warrant for the total amount
4626	of such deductions. Each employer shall also transmit monthly to
4627	the divisiondepartmenta warrant for such employer contribution
4628	set aside as provided for in paragraph (a) of this subsection.
4629	The divisiondepartment, after making records of all such
4630	warrants, shall transmit them to the Department of Banking and
4631	Finance for delivery to the Treasurer of the state who shall
4632	collect them.
4633	(2) The collection of the state contribution shall be made
4634	as follows:
4635	(a) The amounts required to be paid by the state into the
4636	Teachers' Retirement System in this chapter shall be provided
4637	therefor in the General Appropriations Act. However, in the
4638	event a sufficient amount is not included in the General
4639	Appropriations Act to meet the full amount needed to pay the
4640	retirement compensation provided for in this chapter, the
4641	additional amount needed for such retirement compensation is
4642	hereby appropriated from the General Revenue Fund as approved by
4643	the divisionDepartment of Management Services.
4644	(b) The divisionDepartment of Management Servicesshall
4645	certify one-fourth of the amount so ascertained for each year to
4646	the Comptroller on or before the last day of July, October,
4647	January, and April of each year. The Comptroller shall, on or
4648	before the first day of August, November, February, and May of
4649	each year, draw his or her warrant or warrants on the Treasurer
4650	for the respective amounts due the several funds of the
4651	retirement system. On the receipt of the warrant or warrants of
4652	the Comptroller, the Treasurer shall immediately transfer to the
4653	several funds of the retirement system the amounts due.
4654	(3) All collection of contributions of a nonprofit
4655	professional association or corporation of teachers as referred
4656	to in s. 238.01(3) and (5) shall be made by such association or
4657	corporation in the following manner:
4658	(a) On April 1 of each year, the divisionDepartment of
4659	Management Servicesshall certify to any such nonprofit
4660	professional association or corporation of teachers the amounts
4661	which will become due and payable during the ensuing fiscal year
4662	to each of the funds of the retirement system to which such
4663	contributions are payable as set forth in this law.
4664	(b) The divisionDepartment of Management Servicesshall
4665	certify one-fourth of the amount so ascertained for each year to
4666	the nonprofit professional association or corporation of
4667	teachers on or before the last day of July, October, January,
4668	and April of each year. The nonprofit professional association
4669	or corporation of teachers shall, on or before the first day of
4670	August, November, February, and May of each year, draw its check
4671	payable to the divisiondepartmentfor the respective amounts
4672	due the several funds of the retirement system. Upon receipt of
4673	the check, the divisiondepartmentshall immediately transfer to
4674	the several funds of the retirement system the amounts due,
4675	provided, however, that the amounts due the several funds of the
4676	retirement system from any such association or corporation for
4677	creditable service accruing to any such member before July 1,
4678	1947, shall be paid prior to the retirement of any such member.
4679	Section 70. Section 238.12, Florida Statutes, is amended
4680	to read:
4681	238.12 Duties of employers.--
4682	(1) Each employer shall keep such records and, from time
4683	to time, shall furnish such information as the division
4684	Department of Management Servicesmay require in the discharge
4685	of its duties. Upon the employment of any teacher to whom this
4686	chapter may apply, the teacher shall be informed by his or her
4687	employer of his or her duties and obligations in connection with
4688	the retirement system as a condition of his or her employment.
4689	Every teacher accepting employment shall be deemed to consent
4690	and agree to any deductions from his or her compensation
4691	required in this chapter and to all other provisions of this
4692	chapter.
4693	(2) During September of each year, or at such other time
4694	as the divisiondepartmentshall approve, each employer shall
4695	certify to the divisiondepartmentthe names of all teachers to
4696	whom this chapter applies.
4697	(3) Each employer shall, on the first day of each calendar
4698	month, or at such less frequent intervals as the division
4699	department may approve, notify the divisiondepartmentof the
4700	employment of new teachers, removals, withdrawals and changes in
4701	salary of members that have occurred during the preceding month,
4702	or the period covered since the last notification.
4703	Section 71. Section 238.14, Florida Statutes, is amended
4704	to read:
4705	238.14 Protection against fraud.--Any person who shall
4706	knowingly make any false statement, or shall falsify or permit
4707	to be falsified any record or records of this retirement system
4708	in any attempt to defraud such system as a result of such act,
4709	shall be guilty of a misdemeanor of the second degree,
4710	punishable as provided in s. 775.082 or s. 775.083. Should any
4711	change or error in records result in any member or beneficiary
4712	receiving from the retirement system more or less than he or she
4713	would have been entitled to receive had the records been
4714	correct, then on discovery of any such error the division
4715	departmentshall correct such error, and, as far as practicable,
4716	shall adjust the payments in such a manner that the actuarial
4717	equivalent of the benefit, to which such member or beneficiary
4718	was correctly entitled, shall be paid.
4719	Section 72. Section 238.15, Florida Statutes, is amended
4720	to read:
4721	238.15 Exemption of funds from taxation, execution, and
4722	assignment.--The pensions, annuities or any other benefits
4723	accrued or accruing to any person under the provisions of this
4724	chapter and the accumulated contributions and cash securities in
4725	the funds created under this chapter are exempted from any
4726	state, county or municipal tax of the state, and shall not be
4727	subject to execution or attachment or to any legal process
4728	whatsoever, and shall be unassignable, except:
4729	(1) That any teacher who has retired shall have the right
4730	and power to authorize in writing the divisionDepartment of
4731	Management Servicesto deduct from his or her monthly retirement
4732	allowance money for the payment of the premiums on group
4733	insurance for hospital, medical and surgical benefits, under a
4734	plan or plans for such benefits approved in writing by the
4735	Insurance Commissioner and Treasurer of the state, and upon
4736	receipt of such request the divisiondepartmentshall make the
4737	monthly payments as directed; and
4738	(2) As may be otherwise specifically provided for in this
4739	chapter.
4740	Section 73. Paragraph (a) of subsection (3) of section
4741	238.171, Florida Statutes, is amended to read:
4742	238.171 Monthly allowance; when made.--
4743	(3)(a) On July 1, 1974, the Department of Management
4744	Servicesdirector of the Division of Retirementshall adjust the
4745	monthly allowance provided for incapacitated teachers under this
4746	section by increasing said allowance by a percentage which shall
4747	be equal to the percentage change in the average cost-of-living
4748	index, as defined in chapter 121, over the period between April
4749	1, 1967, and March 31, 1973. The percent of increase, as of July
4750	1, 1974, shall be 25.4 percent, which is the average cost-of-
4751	living increase percentage from April 1, 1967, through March 31,
4752	1973.
4753	Section 74. Subsection (2) of section 238.181, Florida
4754	Statutes, is amended to read:
4755	238.181 Reemployment after retirement; conditions and
4756	limitations.--
4757	(2)(a) Any person retired under this chapter, except under
4758	the disability retirement provisions of s. 238.07, may be
4759	reemployed by any private or public employer after retirement
4760	and receive retirement benefits and compensation from his or her
4761	employer without limitation, except that no person may receive
4762	both a salary from reemployment with any agency participating in
4763	the Florida Retirement System and retirement benefits under this
4764	chapter for a period of 12 months immediately subsequent to the
4765	date of retirement.
4766	(b) Any person to whom the limitation in paragraph (a)
4767	applies who violates such reemployment limitation and who is
4768	reemployed with any agency participating in the Florida
4769	Retirement System before completion of the 12-month limitation
4770	period shall give timely notice of this fact in writing to his
4771	or her employer and to the divisionDepartment of Management
4772	Servicesand shall have his or her retirement benefits suspended
4773	for the balance of the 12-month limitation period. Any person
4774	employed in violation of this paragraph and any employing agency
4775	which knowingly employs or appoints such person without
4776	notifying the divisiondepartmentto suspend retirement benefits
4777	shall be jointly and severally liable for reimbursement to the
4778	retirement trust fund of any benefits paid during the
4779	reemployment limitation period. To avoid liability, such
4780	employing agency shall have a written statement from the retiree
4781	that he or she is not retired from a state-administered
4782	retirement system. Any retirement benefits received while
4783	reemployed during this reemployment limitation period shall be
4784	repaid to the retirement trust fund, and retirement benefits
4785	shall remain suspended until such repayment has been made.
4786	Benefits suspended beyond the reemployment limitation shall
4787	apply toward repayment of benefits received in violation of the
4788	reemployment limitation.
4789	(c) A district school board may reemploy a retired member
4790	as a substitute or hourly teacher on a noncontractual basis
4791	after he or she has been retired for 1 calendar month, in
4792	accordance with s. 121.021(39). Any retired member who is
4793	reemployed within 1 calendar month after retirement shall void
4794	his or her application for retirement benefits. District school
4795	boards reemploying such teachers are subject to the retirement
4796	contribution required by paragraph (g). Reemployment of a
4797	retired member as a substitute or hourly teacher is limited to
4798	780 hours during the first 12 months of his or her retirement.
4799	Any retired member reemployed for more than 780 hours during his
4800	or her first 12 months of retirement shall give timely notice in
4801	writing to his or her employer and to the divisiondepartmentof
4802	the date he or she will exceed the limitation. The division
4803	departmentshall suspend his or her retirement benefits for the
4804	remainder of his or her first 12 months of retirement. Any
4805	person employed in violation of this paragraph and any employing
4806	agency which knowingly employs or appoints such person without
4807	notifying the divisiondepartmentto suspend retirement benefits
4808	shall be jointly and severally liable for reimbursement to the
4809	retirement trust fund of any benefits paid during the
4810	reemployment limitation period. To avoid liability, such
4811	employing agency shall have a written statement from the retiree
4812	that he or she is not retired from a state-administered
4813	retirement system. Any retirement benefits received by a retired
4814	member while reemployed in excess of 780 hours during his or her
4815	first 12 months of retirement shall be repaid to the Retirement
4816	System Trust Fund, and his or her retirement benefits shall
4817	remain suspended until repayment is made. Benefits suspended
4818	beyond the end of the retired member's first 12 months of
4819	retirement shall apply toward repayment of benefits received in
4820	violation of the 780-hour reemployment limitation.
4821	(d) A community college board of trustees may reemploy a
4822	retired member as an adjunct instructor, that is, an instructor
4823	who is noncontractual and part time, or as a participant in a
4824	phased retirement program within a community college, after he
4825	or she has been retired for 1 calendar month, in accordance with
4826	s. 121.021(39). Any retired member who is reemployed within 1
4827	calendar month after retirement shall void his or her
4828	application for retirement benefits. Boards of trustees
4829	reemploying such instructors are subject to the retirement
4830	contribution required in paragraph (g). A retired member may be
4831	reemployed as an adjunct instructor for no more than 780 hours
4832	during the first 12 months of his or her retirement. Any retired
4833	member reemployed for more than 780 hours during his or her
4834	first 12 months of retirement shall give timely notice in
4835	writing to his or her employer and to the divisiondepartmentof
4836	the date he or she will exceed the limitation. The division
4837	departmentshall suspend his or her retirement benefits for the
4838	remainder of his or her first 12 months of retirement. Any
4839	person employed in violation of this paragraph and any employing
4840	agency which knowingly employs or appoints such person without
4841	notifying the divisiondepartmentto suspend retirement benefits
4842	shall be jointly and severally liable for reimbursement to the
4843	retirement trust fund of any benefits paid during the
4844	reemployment limitation period. To avoid liability, such
4845	employing agency shall have a written statement from the retiree
4846	that he or she is not retired from a state-administered
4847	retirement system. Any retirement benefits received by a retired
4848	member while reemployed in excess of 780 hours during his or her
4849	first 12 months of retirement shall be repaid to the Retirement
4850	System Trust Fund, and retirement benefits shall remain
4851	suspended until repayment is made. Benefits suspended beyond the
4852	end of the retired member's first 12 months of retirement shall
4853	apply toward repayment of benefits received in violation of the
4854	780-hour reemployment limitation.
4855	(e) The Board of Trustees of the Florida School for the
4856	Deaf and the Blind may reemploy a retired member as a substitute
4857	teacher, substitute residential instructor, or substitute nurse
4858	on a noncontractual basis after he or she has been retired for 1
4859	calendar month, in accordance with s. 121.021(39). Any retired
4860	member who is reemployed within 1 calendar month after
4861	retirement shall void his or her application for retirement
4862	benefits. The Board of Trustees of the Florida School for the
4863	Deaf and the Blind reemploying such teachers, residential
4864	instructors, or nurses is subject to the retirement contribution
4865	required by paragraph (g). Reemployment of a retired member as a
4866	substitute teacher, substitute residential instructor, or
4867	substitute nurse is limited to 780 hours during the first 12
4868	months of his or her retirement. Any retired member reemployed
4869	for more than 780 hours during his or her first 12 months of
4870	retirement shall give timely notice in writing to his or her
4871	employer and to the divisiondepartmentof the date he or she
4872	will exceed the limitation. The divisiondepartmentshall
4873	suspend his or her retirement benefits for the remainder of his
4874	or her first 12 months of retirement. Any person employed in
4875	violation of this paragraph and any employing agency which
4876	knowingly employs or appoints such person without notifying the
4877	divisiondepartmentto suspend retirement benefits shall be
4878	jointly and severally liable for reimbursement to the retirement
4879	trust fund of any benefits paid during the reemployment
4880	limitation period. To avoid liability, such employing agency
4881	shall have a written statement from the retiree that he or she
4882	is not retired from a state-administered retirement system. Any
4883	retirement benefits received by a retired member while
4884	reemployed in excess of 780 hours during his or her first 12
4885	months of retirement shall be repaid to the Retirement System
4886	Trust Fund, and his or her retirement benefits shall remain
4887	suspended until payment is made. Benefits suspended beyond the
4888	end of the retired member's first 12 months of retirement shall
4889	apply toward repayment of benefits received in violation of the
4890	780-hour reemployment limitation.
4891	(f) The State University System may reemploy a retired
4892	member as an adjunct faculty member or as a participant in a
4893	phased retirement program within the State University System
4894	after the retired member has been retired for 1 calendar month,
4895	in accordance with s. 121.021(39). Any retired member who is
4896	reemployed within 1 calendar month after retirement shall void
4897	his or her application for retirement benefits. The State
4898	University System is subject to the retired contribution
4899	required in paragraph (g), as appropriate. A retired member may
4900	be reemployed as an adjunct faculty member or a participant in a
4901	phased retirement program for no more than 780 hours during the
4902	first 12 months of his or her retirement. Any retired member
4903	reemployed for more than 780 hours during his or her first 12
4904	months of retirement shall give timely notice in writing to his
4905	or her employer and to the divisiondepartmentof the date he or
4906	she will exceed the limitation. The divisiondepartmentshall
4907	suspend his or her retirement benefits for the remainder of his
4908	or her first 12 months of retirement. Any person employed in
4909	violation of this paragraph and any employing agency which
4910	knowingly employs or appoints such person without notifying the
4911	divisiondepartmentto suspend retirement benefits shall be
4912	jointly and severally liable for reimbursement to the retirement
4913	trust fund of any benefits paid during the reemployment
4914	limitation period. To avoid liability, such employing agency
4915	shall have a written statement from the retiree that he or she
4916	is not retired from a state-administered retirement system. Any
4917	retirement benefits received by a retired member while
4918	reemployed in excess of 780 hours during his or her first 12
4919	months of retirement shall be repaid to the Retirement System
4920	Trust Fund, and retirement benefits shall remain suspended until
4921	repayment is made. Benefits suspended beyond the end of the
4922	retired member's first 12 months of retirement shall apply
4923	toward repayment of benefits received in violation of the 780-
4924	hour reemployment limitation.
4925	(g) The employment by an employer of any retiree of a
4926	state-administered retirement system shall have no effect on the
4927	average final compensation or years of creditable service of
4928	such retiree. Prior to July 1, 1991, upon employment of any
4929	person, other than an elected officer as provided in s. 121.053,
4930	who has been retired under any state-administered retirement
4931	program, the employer shall pay retirement contributions in an
4932	amount equal to the unfunded actuarial accrued liability portion
4933	of the employer contribution which would be required for a
4934	regular member of the Florida Retirement System. Effective July
4935	1, 1991, contributions shall be made as provided in s. 121.122
4936	for renewed membership.
4937	(h) The limitations of this subsection apply to
4938	reemployment in any capacity with an "employer" as defined in s.
4939	121.021(10), irrespective of the category of funds from which
4940	the person is compensated.
4941	Section 75. Section 238.32, Florida Statutes, is amended
4942	to read:
4943	238.32 Service credit in disputed cases.--The division
4944	Department of Management Servicesmay in its discretion allow or
4945	deny a member service credit in disputed or doubtful cases for
4946	employment in Florida and out-of-state schools in order to serve
4947	the best interests of the state and the member, subject to the
4948	membership dates set forth in s. 238.06(4).
4949	Section 76. Subsection (4) of section 650.02, Florida
4950	Statutes, is amended to read:
4951	650.02 Definitions.--For the purpose of this chapter:
4952	(4) The term "state agency" means the Division of
4953	Retirement of the State Board of AdministrationDepartment of
4954	Management Services.
4955	Section 77. Subsection (1) of section 650.06, Florida
4956	Statutes, is amended to read:
4957	650.06 Social Security Contribution Trust Fund.--
4958	(1) There is hereby established in the State Treasury to
4959	be administered by the State Board of Administrationa special
4960	fund to be known as the "Social Security Contribution Trust
4961	Fund." Such fund shall consist of and there shall be deposited
4962	in such fund:
4963	(a) All contributions, interest, and penalties collected
4964	under ss. 650.04 and 650.05;
4965	(b) All moneys appropriated thereto under this chapter;
4966	(c) Any property or securities and earnings thereof
4967	acquired through the use of moneys belonging to the fund;
4968	(d) Interest earned upon any moneys in the fund; and
4969	(e) All sums recovered upon the bond of the custodian or
4970	otherwise for losses sustained by the fund and all other moneys
4971	received for the fund from any other source. All moneys in the
4972	fund shall be mingled and undivided. Subject to the provisions
4973	of this chapter, the state agency is vested with full power,
4974	authority and jurisdiction over the fund, including all moneys
4975	and property or securities belonging thereto, and may perform
4976	any and all acts whether or not specifically designated, which
4977	are necessary to the administration thereof and are consistent
4978	with the provisions of this chapter.
4979	Section 78. The Department of Management Services may
4980	contract with the State Board of Administration to administer
4981	sections 112.05, 121.1815, 238.171, 250.22, and 112.351-112.362,
4982	Florida Statutes.
4983	Section 79. The Division of Retirement of the State Board
4984	of Administration is a state agency for the purpose of making
4985	payments under the retirement plans and other benefit programs
4986	administered by the board and the Division of Retirement. The
4987	Department of Financial Services shall issue benefit payments to
4988	persons or governmental entities eligible for such payments
4989	under the retirement plans and other benefit programs
4990	administered by the board and the Division of Retirement. The
4991	board is authorized to requisition the appropriate amounts from
4992	trust funds in the State Treasury established for this purpose.
4993	Section 80. Subsections (1) and (6) of section 122.02,
4994	Florida Statutes, are amended to read:
4995	122.02 Definitions.--The following words and phrases as
4996	used in this chapter shall have the following meaning unless a
4997	different meaning is plainly required by the context:
4998	(1) "State and county officers and employees" shall
4999	include all full-time officers or employees who receive
5000	compensation for services rendered from state or county funds,
5001	or from funds of drainage districts or mosquito control
5002	districts of a county or counties, or from funds of the State
5003	Board of Administration or from funds of closed bank
5004	receivership accounts or from funds of any state institution or
5005	who receive compensation for employment or service from any
5006	agency, branch, department, institution or board of the state,
5007	or any county of the state, for service rendered the state or
5008	county from funds from any source provided for their employment
5009	or service regardless of whether the same is paid by state or
5010	county warrant or not; provided that such compensation in
5011	whatever form paid shall be specified in terms of fixed monthly
5012	salaries by the employing state or county agency or state or
5013	county official and shall not include amounts allowed for
5014	professional employees for special or particular service or for
5015	subsistence or travel expenses; provided further the division
5016	departmentshall prescribe appropriate procedure for
5017	contribution deduction out of such compensation in accordance
5018	with the provisions of this chapter, provided further that such
5019	officers and employees defined herein shall not include those
5020	officers and employees excepted from the provisions by s. 122.18
5021	of this law.
5022	(6) "Division" means the Division of Retirement of the
5023	State Board of Administration"Department" means the Department
5024	of Management Services.
5025	Section 81. Paragraph (d) of subsection (6) and subsection
5026	(9) of section 122.03, Florida Statutes, are amended to read:
5027	122.03 Contributions; participants; prior service
5028	credit.--
5029	(6) Any officer or employee who held office or was
5030	employed by the state or a county of the state continuously from
5031	May 1, 1959, and who has not previously received credit for, or
5032	is not eligible to claim credit for, prior years of service
5033	under subsection (2); or any officer or employee who holds
5034	office or is employed by the state or a county of the state on
5035	June 1, 1961, and is continuously employed; or any officer or
5036	employee who holds office or is employed by the state or county
5037	of the state after June 1, 1961, and who is continuously
5038	employed for 3 years, during which period of time no back
5039	payments may be made:
5040	(d) Prior service allowance may be made only for those
5041	periods in which state or county records of service and salary
5042	are available, or at least three affidavits and such other
5043	information as might be required by the divisiondepartmentto
5044	meet the provisions of this law.
5045	(9) The surviving spouse or other dependent of any member
5046	whose employment is terminated by death shall, upon application
5047	to the divisiondepartment, be permitted to pay the required
5048	contributions for any service performed by the member which
5049	could have been claimed by the member at the time of death. Such
5050	service shall be added to the creditable service of the member
5051	and shall be used in the calculation of any benefits which may
5052	be payable to the surviving spouse or other surviving dependent.
5053	Section 82. Subsection (2) of section 122.05, Florida
5054	Statutes, is amended to read:
5055	122.05 Legislator services included.--
5056	(2) The divisiondepartmentand state officials
5057	administering suchsaidretirement system shall make the
5058	contribution deductions required by law from the compensation
5059	hereafter received by any of the saidparticipating members of
5060	the Legislature for service rendered the State Legislature in
5061	the same manner as in the case of other state employment.
5062	Section 83. Subsection (2) of section 122.06, Florida
5063	Statutes, is amended to read:
5064	122.06 Legislative employee services included.--
5065	(2) The divisiondepartmentand other state officials
5066	administering said retirement system shall make the contribution
5067	deductions required by law from the compensation hereafter
5068	received by any of the said participating attaches for service
5069	rendered the State Legislature in the same manner as in the case
5070	of other state employment.
5071	Section 84. Subsection (2) of section 122.07, Florida
5072	Statutes, is amended to read:
5073	122.07 Seasonal state employment included; time limit and
5074	procedure for claiming.--
5075	(2) Any state employee as described in subsection (1) in
5076	the classification set forth in s. 122.01 may elect to receive
5077	credit as a state employee under the State and County Officers
5078	and Employees' Retirement System by providing to the division
5079	departmenta statement from the state in which he or she was
5080	employed, listing days employed and monthly earnings and such
5081	other information as may, in the opinion of the division
5082	department, be necessary or appropriate in the carrying out of
5083	this section. Credit shall be granted upon payment to the
5084	divisiondepartmentby such employee of an amount equal to the
5085	total retirement contribution that would have been required had
5086	the member worked in this state during the period based on the
5087	salary drawn by such employee during his or her last full month
5088	of employment by the state or any department thereof for each
5089	month during said fiscal year for which such employee was not
5090	employed by the state or any department thereof, but was
5091	employed by some other state, plus interest compounded annually
5092	each June 30 from the date of the service in another state to
5093	the date of payment at the rate of 4 percent until July 1, 1975,
5094	and 6.5 percent thereafter. The member shall have until his or
5095	her date of retirement to claim and purchase credit for such
5096	employment in another state.
5097	Section 85. Paragraph (a) of subsection (1), paragraph (b)
5098	of subsection (4), and subsections (5) and (9) of section
5099	122.08, Florida Statutes, are amended to read:
5100	122.08 Requirements for retirement;
5101	classifications.--There shall be two retirement classifications
5102	for all state and county officers and employees participating
5103	herein as hereafter provided in this section:
5104	(1)(a) Any state or county officer or employee who has
5105	attained normal retirement age, which shall be age 60 for a
5106	person who had become a member prior to July 1, 1963, and age 62
5107	for a person who had or shall become a member on or after July
5108	1, 1963, and has accumulated at least 10 years' service in the
5109	aggregate within the contemplation of this law, and who has made
5110	or makes contributions to the State and County Officers and
5111	Employees' Retirement Trust Fund for 5 or more years as
5112	prescribed in this law, may voluntarily retire from office or
5113	employment and be entitled to receive retirement compensation,
5114	the amount of which shall be 2 percent for each year of service
5115	rendered, based upon the average final compensation, payable in
5116	equal monthly installments, upon his or her own requisition.
5117	Requisition requirements shall be set by the division
5118	department.
5119	(4)
5120	(b) A member who elects an option in paragraph (a) shall
5121	on a form provided for that purpose designate his or her spouse
5122	as beneficiary to receive the benefits which continue to be
5123	payable upon the death of the member. After such benefits have
5124	commenced under an option in paragraph (a), the retired member
5125	may change the designation of his or her spouse as beneficiary
5126	only twice. If such a retired member remarries and wishes to
5127	make such a change, he or she may do so by filing with the
5128	divisiondepartmenta notarized change of spouse designation
5129	form and shall notify the former spouse in writing of such
5130	change. Upon receipt of a completed change of spouse designation
5131	form, the divisiondepartmentshall adjust the member's monthly
5132	benefit by the application of actuarial tables and calculations
5133	developed to ensure that the benefit paid is the actuarial
5134	equivalent of the present value of the member's current benefit.
5135	The consent of a retired member's formerly designated spouse as
5136	beneficiary to any such change shall not be required.
5137	(5) Tables for computing the actuarial equivalent shall be
5138	approved by the divisiondepartment.
5139	(9) Notwithstanding any other provision in this chapter to
5140	the contrary, the following provisions shall apply to any
5141	officer or employee who has accumulated at least 10 years of
5142	service and dies:
5143	(a) If the deceased member's surviving spouse has
5144	previously received a refund of the member's contributions made
5145	to the retirement trust fund, such spouse may pay to the
5146	divisiondepartmentan amount equal to the sum of the amount of
5147	the deceased member's contributions previously refunded and
5148	interest at 3 percent compounded annually on the amount of such
5149	refunded contributions from the date of refund until July 1,
5150	1975, and thereafter at the rate of 6.5 percent interest
5151	compounded annually to the date of payment to the division
5152	department, and by so doing be entitled to receive the monthly
5153	retirement benefit provided in paragraph (c).
5154	(b) If the deceased member's surviving spouse has not
5155	received a refund of the deceased member's contributions, such
5156	spouse shall, upon application to the divisiondepartment,
5157	receive the monthly retirement benefit provided in paragraph
5158	(c).
5159	(c) The monthly benefit payable to the spouse described in
5160	paragraph (a) or paragraph (b) shall be the amount which would
5161	have been payable to the deceased member's spouse, assuming that
5162	the member retired on the date of death and had selected the
5163	option in subsection (4) which would afford the surviving spouse
5164	the greatest amount of benefits, such benefit to be based on the
5165	ages of the spouse and member as of the date of death of the
5166	member. Such benefit shall commence on the first day of the
5167	month following the payment of the aforesaid amount to the
5168	divisiondepartment, if paragraph (a) is applicable, or on the
5169	first day of the month following the receipt of the spouse's
5170	application by the divisiondepartment, if paragraph (b) is
5171	applicable.
5172	Section 86. Section 122.09, Florida Statutes, is amended
5173	to read:
5174	122.09 Disability retirement; medical
5175	examinations.--Whenever any officer or employee of the state or
5176	county of the state has service credit as such officer or
5177	employee for 10 years within the contemplation of this law, the
5178	last 5 years of which, except for a single break not to exceed 1
5179	year, must be continuous, unbroken service and who is regularly
5180	contributing to the State and County Officers and Employees'
5181	Retirement Trust Fund and shall while holding such office or
5182	employment become permanently and totally disabled, physically
5183	or mentally, or both, from rendering useful and efficient
5184	service as such officer or employee, such officer or employee
5185	may retire from his or her office or employment, and upon such
5186	retirement the officer or employee shall be paid, so long as the
5187	permanent and total disability continues, on his or her own
5188	monthly requisition, from the State and County Officers and
5189	Employees' Retirement Trust Fund hereinafter established,
5190	retirement compensation as provided in s. 122.08; provided that
5191	no officer or employee retiring under this section shall receive
5192	less than 50 percent of his or her average final compensation
5193	not to exceed $75. No officer or employee of the state and
5194	county of the state shall be permitted to retire under the
5195	provisions of this section until examined by a duly qualified
5196	physician or surgeon or board of physicians and surgeons, to be
5197	selected by the Governor for that purpose, and found to be
5198	disabled in the degree and in the manner specified in this
5199	section. Any officer or employee retiring under this section
5200	shall be examined periodically by a duly qualified physician or
5201	surgeon or board of physicians and surgeons to be selected by
5202	the Governor for that purpose and paid from the retirement trust
5203	fund herein provided for, at such time as the division
5204	Department of Management Servicesshall direct to determine if
5205	such total disability has continued and in the event it be
5206	disclosed by said examination that said total disability has
5207	ceased to exist, then such officer or employee shall forthwith
5208	cease to be paid benefits under this section. Reference to s.
5209	122.08 is for the purpose of computing benefits only. Any person
5210	heretofore retired under this section shall be eligible to
5211	qualify for the minimum benefits provided herein; however,
5212	minimum benefits shall not be paid retroactively.
5213	Section 87. Subsection (4) of section 122.10, Florida
5214	Statutes, is amended to read:
5215	122.10 Separation from service; refund of contributions.--
5216	(4) Should any officer or employee elect to receive a
5217	refund as provided in this section, his or her application for
5218	refund shall be submitted in the manner prescribed by the
5219	regulations adopted by the divisiondepartmentand shall
5220	accompany the payroll certification, submitted to the division
5221	department, on which he or she was last paid prior to
5222	termination. The divisiondepartmentshall pay the entire refund
5223	due within 45 days after the first day of the month subsequent
5224	to receipt of such application for refund and said payroll
5225	certification.
5226	Section 88. Subsection (1) of section 122.12, Florida
5227	Statutes, is amended to read:
5228	122.12 Designation of beneficiary; death of participant;
5229	forfeiture of contributions after benefits paid; survivor
5230	benefits.--
5231	(1) Any officer or employee may file, in writing, a
5232	designation of beneficiary and it shall be the duty of the
5233	divisiondepartmentto refund 100 percent, without interest, of
5234	the contributions made to the retirement trust fund by such
5235	deceased officer or employee to such designated beneficiary.
5236	The officer or employee shall have the privilege of changing, in
5237	writing, the designated beneficiary at any time. Upon failure to
5238	designate a beneficiary, the refund shall be made to the persons
5239	in the same order as designated in s. 222.15, for wages due
5240	deceased employees. If the deceased officer or employee has
5241	received any benefits under this law, no refund shall be made
5242	unless such officer or employee has elected to accept benefits
5243	under s. 122.08(3) or (4).
5244	Section 89. Section 122.13, Florida Statutes, is amended
5245	to read:
5246	122.13 Administration of law; appropriation.--The division
5247	departmentshall make such rules as are necessary for the
5248	effective administration of this chapter, and the cost is hereby
5249	annually appropriated and shall be paid into the State and
5250	County Officers and Employees' Retirement Trust Fund out of the
5251	Intangible Tax Fund in the State Treasury in the amount
5252	necessary to administer efficiently the state and county
5253	retirement law. At the end of each fiscal year, beginning with
5254	fiscal year 1959-1960, the administrative cost of the state and
5255	county retirement system for the fiscal year just ended shall be
5256	refunded to the General Revenue Fund from interest earned on
5257	investments made subsequent to June 30, 1959.
5258	Section 90. Subsection (2) of section 122.15, Florida
5259	Statutes, is amended to read:
5260	122.15 Benefits exempt from taxes and execution.--
5261	(2) This subsection shall have no effect upon this section
5262	except that the divisiondepartmentmay, upon written request
5263	from the retired member, deduct premiums for group
5264	hospitalization insurance from the retirement benefit paid such
5265	retired member.
5266	Section 91. Paragraph (b) of subsection (2) of section
5267	122.16, Florida Statutes, is amended to read:
5268	122.16 Employment after retirement.--
5269	(2)
5270	(b) Any person to whom the limitation in paragraph (a)
5271	applies who violates such reemployment limitation and is
5272	reemployed with any agency participating in the Florida
5273	Retirement System prior to completion of the 12-month limitation
5274	period shall give timely notice of this fact in writing to his
5275	or her employer and to the divisiondepartment; and his or her
5276	retirement benefits shall be suspended for the balance of the
5277	12-month limitation period. Any person employed in violation of
5278	this subsection and any employing agency which knowingly employs
5279	or appoints such person without notifying the division
5280	departmentto suspend retirement benefits shall be jointly and
5281	severally liable for reimbursement to the retirement trust fund
5282	of any benefits paid during the reemployment limitation period.
5283	To avoid liability, such employing agency shall have a written
5284	statement from the retiree that he or she is not retired from a
5285	state-administered retirement system. Any retirement benefits
5286	received by such person while he or she is reemployed during
5287	this reemployment limitation period shall be repaid to the
5288	retirement trust fund, and his or her retirement benefits shall
5289	remain suspended until such repayment has been made. Any
5290	benefits suspended beyond the reemployment limitation period
5291	shall apply toward the repayment of benefits received in
5292	violation of the reemployment limitation.
5293	Section 92. Subsection (3) of section 122.23, Florida
5294	Statutes, is amended to read:
5295	122.23 Definitions; ss. 122.21-122.321.--In addition to
5296	those definitions set forth in s. 122.02 the following words and
5297	phrases used in ss. 122.21-122.24, 122.26 to 122.321, inclusive,
5298	have the respective meanings set forth:
5299	(3) "Division" means the Division of Retirement of the
5300	State Board of Administration"Department" means the Department
5301	of Management Services.
5302	Section 93. Subsections (1) and (5) of section 122.30,
5303	Florida Statutes, are amended to read:
5304	122.30 Appropriations.--
5305	(1) There is hereby annually appropriated from the
5306	intangible tax fund of the state to the divisiondepartmentas
5307	the state agency designated in chapter 650, a sum not to exceed
5308	$10,000 to defray the expenses of such agency in connection with
5309	its continuing duties in relation to the social security
5310	coverage provided by this law.
5311	(5) In addition to amounts appropriated by other
5312	provisions of this chapter or other laws to defray cost of
5313	administration of this system, there is hereby appropriated out
5314	of the Intangible Tax Fund of the state for use of the division
5315	departmentin its administration of the two divisions of this
5316	system, the sum of $100,000, or so much thereof as may be
5317	required for that purpose.
5318	Section 94. Paragraphs (b) and (c) of subsection (1) and
5319	subsection (11) of section 122.34, Florida Statutes, are amended
5320	to read:
5321	122.34 Special provisions for certain sheriffs and full-
5322	time deputy sheriffs.--
5323	(1)
5324	(b) Only those members who are full-time criminal law
5325	enforcement officers or agents, as certified by the employing
5326	authority, who perform duties according to rule, order, or
5327	established custom as full-time criminal law enforcement
5328	officers or agents shall be certified to the divisiondepartment
5329	as high hazard members, and only such members will be approved
5330	by the divisiondepartment.
5331	(c) The divisiondepartmentshall make such rules as are
5332	necessary for the effective administration of the intent of this
5333	section.
5334	(11) No high hazard member shall be permitted to receive
5335	benefits under this section until examined by a duly qualified
5336	physician or surgeon, or board of physicians and surgeons, to be
5337	selected by the Governor for that purpose, and found to be
5338	disabled in the degree and in the manner specified in this
5339	section. At such time as the divisionDepartment of Management
5340	Servicesdirects, any high hazard member receiving disability
5341	benefits under this section shall submit to a medical
5342	examination to determine if such disability has continued, and
5343	the cost of such examination shall be paid from the retirement
5344	trust fund herein provided for; and in the event it is declared
5345	by said examination that said disability has cleared, such
5346	member shall be ordered to return to active duty with the same
5347	rank and salary that he or she had at the time of disability.
5348	Any such member who shall fail to return to duty following such
5349	order shall forfeit all rights and claims under this law. Every
5350	high hazard member retiring under this provision shall be paid
5351	so long as the member's permanent total or partial disability
5352	continues, on his or her own requisition.
5353	Section 95. Section 122.351, Florida Statutes, is amended
5354	to read:
5355	122.351 Funding by local agencies.--Commencing on July 1,
5356	1969, all county and local agencies covered under the provisions
5357	of s. 122.35 shall accumulate and be responsible for the payment
5358	of social security and retirement matching costs as required
5359	under s. 122.35, from the intangible tax allocation of that
5360	county and any other source available to the local governmental
5361	units, except that all agencies, other than the school boards,
5362	shall be given credit for 50 percent of their 1967-1969 actual
5363	employer matching cost, actual cost being that cost in cash
5364	actually paid by the employer for matching retirement and social
5365	security into the fund by the agency for said biennium. The
5366	above credit of 50 percent shall be calculated by the division
5367	department.
5368	Section 96. The Department of Management Services shall,
5369	at the request of the Division of Retirement of the State Board
5370	of Administration, include within its annual budget request
5371	those general revenue appropriations necessary for providing
5372	retirement or other benefit payments to persons or governmental
5373	entities pursuant to ss. 112.05, 121.1815, 238.171, and 250.22,
5374	Florida Statutes, and any other provision of law authorizing or
5375	requiring general revenue funding for said purpose. The
5376	department shall transfer all moneys so appropriated into the
5377	Florida Retirement System Contributions Clearing Trust Fund
5378	created in s. 121.4503, Florida Statutes, wherefrom payments for
5379	said benefits and associated costs shall be made by the
5380	division.
5381	Section 97. This act shall take effect July 1, 2003.