HB 1575, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to agency reorganization; transferring the
3	Division of Retirement and its powers, duties, functions,
4	components, and assets from the Department of Management
5	Services to the State Board of Administration; amending s.
6	110.205, F.S.; providing status of division personnel
7	under the Career Service System; amending ss. 20.22,
8	20.28, 112.05, 112.3173, 112.352, 112.354, 112.356,
9	112.358, 112.361, 112.362, 112.363, 112.625, 112.63,
10	112.64, 112.658, 112.661, 112.665, 121.021, 121.025,
11	121.031, 121.051, 121.0511, 121.0515, 121.052, 121.055,
12	121.081, 121.085, 121.091, 121.095, 121.101, 121.111,
13	121.133, 121.135, 121.136, 121.1815, 121.1905, 121.192,
14	121.193, 121.22, 121.23, 121.24, 121.30, 121.35, 121.40,
15	121.45, 121.4501, 121.403, 121.591, 121.5911, 121.72,
16	121.73, 121.74, 175.032, 175.121, 175.1215, 175.341,
17	185.02, 185.10, 185.105, 185.23, 215.20, 215.28, 215.44,
18	215.50, 215.52, 238.01, 238.02, 238.03, 238.05, 238.07,
19	238.08, 238.09, 238.10, 238.11, 238.12, 238.14, 238.15,
20	238.171, 238.181, 238.32, 650.02, 650.06, 122.02, 122.03,
21	122.05, 122.06, 122.07, 122.08, 122.09, 122.10, 122.12,
22	122.13, 122.15, 122.16, 122.23, 122.30, 122.34, 122.351,
23	F.S., to conform to such transfer; providing duties of the
24	Department of Financial Services with respect to issuing
25	benefit payments under retirement plans; providing for the
26	request and transfer of appropriations; providing an
27	effective date.
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1. The Division of Retirement of the Department of
32	Management Services is transferred to the State Board of
33	Administration. All powers, duties, functions, records,
34	personnel, property, and unexpended balances of appropriations,
35	allocations, and other funds relating to the Division of
36	Retirement are transferred by a type one transfer, as defined in
37	section 20.06, Florida Statutes, to the State Board of
38	Administration. This act does not alter or amend the powers,
39	operations, or functioning of the State Board of Administration
40	with respect to its duties, responsibilities, and authority
41	existing prior to the enactment of this legislation.
42	Section 2. Paragraphs (g) and (h) of subsection (2) of
43	section 20.22, Florida Statutes, are amended to read:
44	20.22 Department of Management Services.--There is created
45	a Department of Management Services.
46	(2) The following divisions and programs within the
47	Department of Management Services are established:
48	(g) Division of Retirement.
49	(g)(h)Division of State Group Insurance.
50	Section 3. Section 20.28, Florida Statutes, is amended to
51	read:
52	20.28 State Board of Administration.--The State Board of
53	Administration, continued by s. 4(e), Art. IVs. 9, Art. XIIof
54	the State Constitution, retains all of its powers, duties, and
55	functions as prescribed by law. There is established under the
56	State Board of Administration a Division of Retirement, which
57	shall be subject to the direction of the executive director of
58	the board who is the agency head of the division for purposes of
59	chapter 120.
60	Section 4. Paragraph (u) of subsection (2) of section
61	110.205, Florida Statutes, is amended to read:
62	110.205 Career service; exemptions.--
63	(2) EXEMPT POSITIONS.--The exempt positions that are not
64	covered by this part include the following:
65	(u) All officers and employees of the State Board of
66	Administration, including its Division of Retirement. The State
67	Board of Administration shall set the salaries and benefits of
68	these positions.
69	Section 5. Paragraph (b) of subsection (4) of section
70	112.05, Florida Statutes, is amended to read:
71	112.05 Retirement; cost-of-living adjustment; employment
72	after retirement.--
73	(4)
74	(b) Any person to whom the limitation in paragraph (a)
75	applies who violates such reemployment limitation and is
76	reemployed with any agency participating in the Florida
77	Retirement System prior to completion of the 12-month limitation
78	period shall give timely notice of this fact in writing to the
79	employer and to the Department of Management ServicesDivision;
80	and the person's retirement benefits shall be suspended for the
81	balance of the 12-month limitation period. Any person employed
82	in violation of this subsection and any employing agency which
83	knowingly employs or appoints such person without notifying the
84	Department of Management Services to suspend retirement benefits
85	shall be jointly and severally liable for reimbursement to the
86	retirement trust fund of any benefits paid during the
87	reemployment limitation period. To avoid liability, such
88	employing agency shall have a written statement from the retiree
89	that he or she is not retired from a state-administered
90	retirement system. Any retirement benefits received by such
91	person while reemployed during this limitation period shall be
92	repaid to the retirement trust fund, and the retirement benefits
93	shall remain suspended until such repayment has been made. Any
94	benefits suspended beyond the reemployment limitation period
95	shall apply toward the repayment of benefits received in
96	violation of the reemployment limitation.
97	Section 6. Paragraph (d) of subsection (4) of section
98	112.3173, Florida Statutes, is amended to read:
99	112.3173 Felonies involving breach of public trust and
100	other specified offenses by public officers and employees;
101	forfeiture of retirement benefits.--
102	(4) NOTICE.--
103	(d) The Commission on Ethics shall forward any notice and
104	any other document received by it pursuant to this subsection to
105	the governing body of the public retirement system of which the
106	public officer or employee is a member or from which the public
107	officer or employee may be entitled to receive a benefit. When
108	called on by the Commission on Ethics, the Division of
109	Retirement of the State Board of AdministrationDepartment of
110	Management Servicesshall assist the commission in identifying
111	the appropriate public retirement system.
112	Section 7. Subsections (2), (4), (5), (7), and (8) of
113	section 112.363, Florida Statutes, are amended to read:
114	112.363 Retiree health insurance subsidy.--
115	(2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.--
116	(a) A person who is retired under a state-administered
117	retirement system, or a beneficiary who is a spouse or financial
118	dependent entitled to receive benefits under a state-
119	administered retirement system, is eligible for health insurance
120	subsidy payments provided under this section; except that
121	pension recipients under ss. 121.40, 238.07(16)(a), and 250.22,
122	recipients of health insurance coverage under s. 110.1232, or
123	any other special pension or relief act shall not be eligible
124	for such payments.
125	(b) For purposes of this section, a person is deemed
126	retired from a state-administered retirement system when he or
127	she terminates employment with all employers participating in
128	the Florida Retirement System as described in s. 121.021(39)
129	and:
130	1. For a participant of the Public Employee Optional
131	Retirement Program established under part II of chapter 121, the
132	participant meets the age or service requirements to qualify for
133	normal retirement as set forth in s. 121.021(29).
134	2. For a member of the Florida Retirement System defined
135	benefit program, or any employee who maintains creditable
136	service under both the defined benefit program and the Public
137	Employee Optional Retirement Program, the member begins drawing
138	retirement benefits from the defined benefit program of the
139	Florida Retirement System.
140	(c)1. Effective July 1, 2001, any person retiring on or
141	after such date as a member of the Florida Retirement System,
142	including any participant of the defined contribution program
143	administered pursuant to part II of chapter 121, must have
144	satisfied the vesting requirements for his or her membership
145	class under the Florida Retirement System defined benefit
146	program as administered under part I of chapter 121.
147	2. Notwithstanding the provisions of subparagraph 1., a
148	person retiring due to disability must either qualify for a
149	regular or in-line-of-duty disability benefit as provided in s.
150	121.091(4) or qualify for a disability benefit under a
151	disability plan established under part II of chapter 121, as
152	appropriate.
153	(d) Payment of the retiree health insurance subsidy shall
154	be made only after coverage for health insurance for the retiree
155	or beneficiary has been certified in writing to the Division of
156	Retirement of the State Board of AdministrationDepartment of
157	Management Services. Participation in a former employer's group
158	health insurance program is not a requirement for eligibility
159	under this section.
160	(e) Participants in the Senior Management Service Optional
161	Annuity Program as provided in s. 121.055(6) and the State
162	University System Optional Retirement Program as provided in s.
163	121.35 shall not receive the retiree health insurance subsidy
164	provided in this section. The employer of such participant shall
165	pay the contributions required in subsection (8) to the annuity
166	program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
167	applicable.
168	(4) PAYMENT OF RETIREE HEALTH INSURANCE
169	SUBSIDY.--Beginning January 1, 1988, any monthly retiree health
170	insurance subsidy amount due and payable under this section
171	shall be paid to retired members by the Division of Retirement
172	of the State Board of AdministrationDepartment of Management
173	Services or under the direction and control of the division
174	department.
175	(5) TRUST FUND ESTABLISHED.--There is hereby established a
176	trust fund in the state treasury to be entitled the Retiree
177	Health Insurance Subsidy Trust Fund, which shall be administered
178	by the State Board of Administration. Said trust fund shall be
179	used to account for all moneys received and disbursed pursuant
180	to this section. Should funding for the retiree health
181	insurance subsidy program fail to provide full benefits for all
182	participants, the benefits may be reduced or canceled at any
183	time.
184	(7) ADMINISTRATION OF SYSTEM.--The Division of Retirement
185	of the State Board of AdministrationDepartment of Management
186	Servicesmay adopt such rules and regulations as are necessary
187	for the effective and efficient administration of this section.
188	The cost of administration isshall beappropriated from the
189	trust fund.
190	(8) CONTRIBUTIONS.--For purposes of funding the insurance
191	subsidy provided by this section:
192	(a) Beginning October 1, 1987, the employer of each member
193	of a state-administered retirement plan shall contribute 0.24
194	percent of gross compensation each pay period.
195	(b) Beginning January 1, 1989, the employer of each member
196	of a state-administered retirement plan shall contribute 0.48
197	percent of gross compensation each pay period.
198	(c) Beginning January 1, 1994, the employer of each member
199	of a state-administered retirement plan shall contribute 0.56
200	percent of gross compensation each pay period.
201	(d) Beginning January 1, 1995, the employer of each member
202	of a state-administered retirement plan shall contribute 0.66
203	percent of gross compensation each pay period.
204	(e) Beginning July 1, 1998, the employer of each member of
205	a state-administered retirement plan shall contribute 0.94
206	percent of gross compensation each pay period.
207	(f) Beginning July 1, 2001, the employer of each member of
208	a state-administered plan shall contribute 1.11 percent of gross
209	compensation each pay period.
210
211	Such contributions shall be submitted to the Division of
212	Retirement of the State Board of AdministrationDepartment of
213	Management Servicesand deposited in the Retiree Health
214	Insurance Subsidy Trust Fund.
215	Section 8. Subsection (10) is added to section 112.625,
216	Florida Statutes, to read:
217	112.625 Definitions.--As used in this act:
218	(10) "Division" means the Division of Retirement of the
219	State Board of Administration.
220	Section 9. Subsections (2) and (4) of section 112.63,
221	Florida Statutes, are amended to read:
222	112.63 Actuarial reports and statements of actuarial
223	impact; review.--
224	(2) The frequency of actuarial reports must be at least
225	every 3 years commencing from the last actuarial report of the
226	plan or system or October 1, 1980, if no actuarial report has
227	been issued within the 3-year period prior to October 1, 1979.
228	The results of each actuarial report shall be filed with the
229	plan administrator within 60 days of certification. Thereafter,
230	the results of each actuarial report shall be made available for
231	inspection upon request. Additionally, each retirement system or
232	plan covered by this act which is not administered directly by
233	the divisionDepartment of Management Servicesshall furnish a
234	copy of each actuarial report to the divisionDepartment of
235	Management Serviceswithin 60 days after receipt from the
236	actuary. The requirements of this section are supplemental to
237	actuarial valuations necessary to comply with the requirements
238	of ss. 218.321 and 218.39.
239	(4) Upon receipt, pursuant to subsection (2), of an
240	actuarial report, or upon receipt, pursuant to subsection (3),
241	of a statement of actuarial impact, the divisionDepartment of
242	Management Servicesshall acknowledge such receipt, but shall
243	only review and comment on each retirement system's or plan's
244	actuarial valuations at least on a triennial basis. If the
245	divisiondepartmentfinds that the actuarial valuation is not
246	complete, accurate, or based on reasonable assumptions, or if
247	the divisiondepartmentdoes not receive the actuarial report or
248	statement of actuarial impact, the divisiondepartmentshall
249	notify the local government and request appropriate adjustment.
250	If, after a reasonable period of time, a satisfactory adjustment
251	is not made, the affected local government or the division
252	departmentmay petition for a hearing under the provisions of
253	ss. 120.569 and 120.57. If the administrative law judge
254	recommends in favor of the divisiondepartment, the division
255	departmentshall perform an actuarial review or prepare the
256	statement of actuarial impact. The cost to the division
257	departmentof performing such actuarial review or preparing such
258	statement shall be charged to the governmental entity of which
259	the employees are covered by the retirement system or plan. If
260	payment of such costs is not received by the divisiondepartment
261	within 60 days after receipt by the governmental entity of the
262	request for payment, the divisiondepartmentshall certify to
263	the Comptroller the amount due, and the Comptroller shall pay
264	such amount to the divisiondepartmentfrom any funds payable to
265	the governmental entity of which the employees are covered by
266	the retirement system or plan. If the administrative law judge
267	recommends in favor of the local retirement system and the
268	divisiondepartmentperforms an actuarial review, the cost to
269	the divisiondepartmentof performing the actuarial review shall
270	be paid by the divisiondepartment.
271	Section 10. Subsection (1) of section 112.64, Florida
272	Statutes, is amended to read:
273	112.64 Administration of funds; amortization of unfunded
274	liability.--
275	(1) Employee contributions shall be deposited in the
276	retirement system or plan at least monthly. Employer
277	contributions shall be deposited at least quarterly; however,
278	any revenues received from any source by an employer which are
279	specifically collected for the purpose of allocation for deposit
280	into a retirement system or plan shall be so deposited within 30
281	days of receipt by the employer. All employers and employees
282	participating in the Florida Retirement System and other
283	existing retirement systems which are administered by the
284	divisionDepartment of Management Servicesshall continue to
285	make contributions at least monthly.
286	Section 11. Subsections (1) and (3) of section 112.658,
287	Florida Statutes, are amended to read:
288	112.658 Office of Program Policy Analysis and Government
289	Accountability to determine compliance of the Florida Retirement
290	System.--
291	(1) The Office of Program Policy Analysis and Government
292	Accountability shall determine, through the examination of
293	actuarial reviews, financial statements, and the practices and
294	procedures of the Division of RetirementDepartment of
295	Management Services, the compliance of the Florida Retirement
296	System with the provisions of this act.
297	(3) The Office of Program Policy Analysis and Government
298	Accountability shall employ the same actuarial standards to
299	monitor the divisionDepartment of Management Services as the
300	divisionDepartment of Management Servicesuses to monitor local
301	governments.
302	Section 12. Subsections (9), (16), and (17) of section
303	112.661, Florida Statutes, are amended to read:
304	112.661 Investment policies.--Investment of the assets of
305	any local retirement system or plan must be consistent with a
306	written investment policy adopted by the board. Such policies
307	shall be structured to maximize the financial return to the
308	retirement system or plan consistent with the risks incumbent in
309	each investment and shall be structured to establish and
310	maintain an appropriate diversification of the retirement system
311	or plan's assets.
312	(9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy
313	shall require that, for each actuarial valuation, the board
314	determine the total expected annual rate of return for the
315	current year, for each of the next several years, and for the
316	long term thereafter. This determination must be filed promptly
317	with the divisionDepartment of Management Servicesand with the
318	plan's sponsor and the consulting actuary. The division
319	departmentshall use this determination only to notify the
320	board, the plan's sponsor, and consulting actuary of material
321	differences between the total expected annual rate of return and
322	the actuarial assumed rate of return.
323	(16) FILING OF INVESTMENT POLICY.--Upon adoption by the
324	board, the investment policy shall be promptly filed with the
325	divisionDepartment of Management Servicesand the plan's
326	sponsor and consulting actuary. The effective date of the
327	investment policy, and any amendment thereto, shall be the 31st
328	calendar day following the filing date with the plan sponsor.
329	(17) VALUATION OF ILLIQUID INVESTMENTS.--The investment
330	policy shall provide for the valuation of illiquid investments
331	for which a generally recognized market is not available or for
332	which there is no consistent or generally accepted pricing
333	mechanism. If those investments are utilized, the investment
334	policy must include the criteria set forth in s. 215.47(6),
335	except that submission to the Investment Advisory Council is not
336	required. The investment policy shall require that, for each
337	actuarial valuation, the board must verify the determination of
338	the fair market value for those investments and ascertain that
339	the determination complies with all applicable state and federal
340	requirements. The investment policy shall require that the board
341	disclose to the divisionDepartment of Management Servicesand
342	the plan's sponsor each such investment for which the fair
343	market value is not provided.
344	Section 13. Section 112.665, Florida Statutes, is amended
345	to read:
346	112.665 Duties of Division of RetirementDepartment of
347	Management Services.--
348	(1) The Division of RetirementDepartment of Management
349	Servicesshall:
350	(a) Gather, catalog, and maintain complete, computerized
351	data information on all public employee retirement systems or
352	plans in the state, based upon a review of audits, reports, and
353	other data pertaining to the systems or plans;
354	(b) Receive and comment upon all actuarial reviews of
355	retirement systems or plans maintained by units of local
356	government;
357	(c) Cooperate with local retirement systems or plans on
358	matters of mutual concern and provide technical assistance to
359	units of local government in the assessment and revision of
360	retirement systems or plans;
361	(d) Issue, by January 1 annually, a report to the
362	President of the Senate and the Speaker of the House of
363	Representatives, which report details division activities,
364	findings, and recommendations concerning all governmental
365	retirement systems. The report may include legislation proposed
366	to carry out such recommendations;
367	(e) Issue, by January 1 annually, a report to the Special
368	District Information Program of the Department of Community
369	Affairs that includes the participation in and compliance of
370	special districts with the local government retirement system
371	provisions in s. 112.63 and the state-administered retirement
372	system provisions as specified in part I of chapter 121; and
373	(f) Adopt reasonable rules to administer the provisions of
374	this part.
375	(2) The divisiondepartmentmay subpoena actuarial
376	witnesses, review books and records, hold hearings, and take
377	testimony. A witness shall have the right to be accompanied by
378	counsel.
379	Section 14. Subsections (4), (5), (32), and (36) and
380	paragraph (a) of subsection (39) of section 121.021, Florida
381	Statutes, are amended, and subsection (62) is added to that
382	section, to read:
383	121.021 Definitions.--The following words and phrases as
384	used in this chapter have the respective meanings set forth
385	unless a different meaning is plainly required by the context:
386	(4) "DivisionDepartment" means the Division of Retirement
387	of the State Board of AdministrationDepartment of Management
388	Services.
389	(5) "Administrator" means the executive director of the
390	State Board of Administrationsecretary of the Department of
391	Management Services.
392	(32) "State agency" means the Division of Retirement
393	Department of Management Serviceswithin the provisions and
394	contemplation of chapter 650.
395	(36) "System Trust Fund" means the trust fund established
396	in the State Treasury by this chapter and administered by the
397	State Board of Administrationfor the purpose of holding and
398	investing the contributions paid by members and employers and
399	paying the benefits to which members or their beneficiaries may
400	become entitled. Other trust funds may be established in the
401	State Treasury to administer the "System Trust Fund."
402	(39)(a) "Termination" occurs, except as provided in
403	paragraph (b), when a member ceases all employment relationships
404	with employers under this system, as defined in subsection (10),
405	but in the event a member should be employed by any such
406	employer within the next calendar month, termination shall be
407	deemed not to have occurred. A leave of absence shall constitute
408	a continuation of the employment relationship, except that a
409	leave of absence without pay due to disability may constitute
410	termination for a member, if such member makes application for
411	and is approved for disability retirement in accordance with s.
412	121.091(4). The divisiondepartmentmay require other evidence
413	of termination as it deems necessary.
414	(62) "Board" means the State Board of Administration.
415	Section 15. Section 121.025, Florida Statutes, is amended
416	to read:
417	121.025 Administrator; powers and duties.--The executive
418	director of the State Board of Administrationsecretary of the
419	Department of Management Servicesshall be the administrator of
420	the retirement and pension systems assigned or transferred to
421	the divisionDepartment of Management Services by law. The
422	executive director of the State Board of Administration is the
423	trustee of the System Trust Fundand shall have the authority to
424	sign the contracts necessary to carry out the duties and
425	responsibilities assigned by law to the divisionDepartment of
426	Management Services.
427	Section 16. Subsections (1), (2), and (5) and paragraph
428	(e) of subsection (3) of section 121.031, Florida Statutes, are
429	amended to read:
430	121.031 Administration of system; appropriation; oaths;
431	actuarial studies; public records.--
432	(1) The divisionDepartment of Management Serviceshas the
433	authority to adopt rules pursuant to ss. 120.536(1) and 120.54
434	to implement the provisions of law conferring duties upon the
435	divisiondepartmentand to adopt rules as are necessary for the
436	effective and efficient administration of this system. The funds
437	to pay the expenses for administration of the system are hereby
438	appropriated from the interest earned on investments made for
439	the retirement and social security trust funds and the
440	assessments allowed under chapter 650.
441	(2) The divisionDepartment of Management Servicesis
442	authorized to require oaths, by affidavit or otherwise, and
443	acknowledgments from persons in connection with the
444	administration of its duties and responsibilities under this
445	chapter.
446	(3) The administrator shall cause an actuarial study of
447	the system to be made at least annually and shall report the
448	results of such study to the Legislature by December 31 prior to
449	the next legislative session. The study shall, at a minimum,
450	conform to the requirements of s. 112.63, with the following
451	exceptions and additions:
452	(e) The study shall include measures of funding status and
453	funding progress designed to facilitate the assessment of trends
454	over several actuarial valuations with respect to the overall
455	solvency of the system. Such measures shall be adopted by the
456	divisiondepartmentand shall be used consistently in all
457	actuarial valuations performed on the system.
458	(5) The names and addresses of retirees are confidential
459	and exempt from the provisions of s. 119.07(1) to the extent
460	that no state or local governmental agency may provide the names
461	or addresses of such persons in aggregate, compiled, or list
462	form to any person except to a public agency engaged in official
463	business. However, a state or local government agency may
464	provide the names and addresses of retirees from that agency to
465	a bargaining agent as defined in s. 447.203(12) or to a retiree
466	organization for official business use. Lists of names or
467	addresses of retirees may be exchanged by public agencies, but
468	such lists shall not be provided to, or open for inspection by,
469	the public. Any person may view or copy any individual's
470	retirement records at the divisionDepartment of Management
471	Services, one record at a time, or may obtain information by a
472	separate written request for a named individual for which
473	information is desired.
474	Section 17. Paragraph (c) of subsection (1) and paragraphs
475	(b) and (f) of subsection (2) of section 121.051, Florida
476	Statutes, are amended to read:
477	121.051 Participation in the system.--
478	(1) COMPULSORY PARTICIPATION.--
479	(c)1. After June 30, 1983, a member of an existing system
480	who is reemployed after terminating employment shall have at the
481	time of reemployment the option of selecting to remain in the
482	existing retirement system or to transfer to the Florida
483	Retirement System. Failure to submit such selection in writing
484	to the divisionDepartment of Management Serviceswithin 6
485	months of reemployment shall result in compulsory membership in
486	the Florida Retirement System.
487	2. After June 30, 1988, the provisions of subparagraph 1.
488	shall not apply to a member of an existing system who is
489	reemployed within 12 months after terminating employment. Such
490	member shall continue to have membership in the existing system
491	upon reemployment and shall not be permitted to become a member
492	of the Florida Retirement System, except by transferring to that
493	system as provided in ss. 121.052 and 121.055.
494	(2) OPTIONAL PARTICIPATION.--
495	(b)1. The governing body of any municipality or special
496	district in the state may elect to participate in the system
497	upon proper application to the administrator and may cover all
498	or any of its units as approved by the Secretary of Health and
499	Human Services and the administrator. The divisiondepartment
500	shall adopt rules establishing provisions for the submission of
501	documents necessary for such application. Prior to being
502	approved for participation in the Florida Retirement System, the
503	governing body of any such municipality or special district that
504	has a local retirement system shall submit to the administrator
505	a certified financial statement showing the condition of the
506	local retirement system as of a date within 3 months prior to
507	the proposed effective date of membership in the Florida
508	Retirement System. The statement must be certified by a
509	recognized accounting firm that is independent of the local
510	retirement system. All required documents necessary for
511	extending Florida Retirement System coverage must be received by
512	the divisiondepartmentfor consideration at least 15 days prior
513	to the proposed effective date of coverage. If the municipality
514	or special district does not comply with this requirement, the
515	divisiondepartmentmay require that the effective date of
516	coverage be changed.
517	2. Any city or special district that has an existing
518	retirement system covering the employees in the units that are
519	to be brought under the Florida Retirement System may
520	participate only after holding a referendum in which all
521	employees in the affected units have the right to participate.
522	Only those employees electing coverage under the Florida
523	Retirement System by affirmative vote in said referendum shall
524	be eligible for coverage under this chapter, and those not
525	participating or electing not to be covered by the Florida
526	Retirement System shall remain in their present systems and
527	shall not be eligible for coverage under this chapter. After the
528	referendum is held, all future employees shall be compulsory
529	members of the Florida Retirement System.
530	3. The governing body of any city or special district
531	complying with subparagraph 1. may elect to provide, or not
532	provide, benefits based on past service of officers and
533	employees as described in s. 121.081(1). However, if such
534	employer elects to provide past service benefits, such benefits
535	must be provided for all officers and employees of its covered
536	group.
537	4. Once this election is made and approved it may not be
538	revoked, except pursuant to subparagraphs 5. and 6., and all
539	present officers and employees electing coverage under this
540	chapter and all future officers and employees shall be
541	compulsory members of the Florida Retirement System.
542	5. Subject to the conditions set forth in subparagraph 6.,
543	the governing body of any hospital licensed under chapter 395
544	which is governed by the board of a special district as defined
545	in s. 189.403(1) or by the board of trustees of a public health
546	trust created under s. 154.07, hereinafter referred to as
547	"hospital district," and which participates in the system, may
548	elect to cease participation in the system with regard to future
549	employees in accordance with the following procedure:
550	a. No more than 30 days and at least 7 days before
551	adopting a resolution to partially withdraw from the Florida
552	Retirement System and establish an alternative retirement plan
553	for future employees, a public hearing must be held on the
554	proposed withdrawal and proposed alternative plan.
555	b. From 7 to 15 days before such hearing, notice of intent
556	to withdraw, specifying the time and place of the hearing, must
557	be provided in writing to employees of the hospital district
558	proposing partial withdrawal and must be published in a
559	newspaper of general circulation in the area affected, as
560	provided by ss. 50.011-50.031. Proof of publication of such
561	notice shall be submitted to the divisionDepartment of
562	Management Services.
563	c. The governing body of any hospital district seeking to
564	partially withdraw from the system must, before such hearing,
565	have an actuarial report prepared and certified by an enrolled
566	actuary, as defined in s. 112.625(3), illustrating the cost to
567	the hospital district of providing, through the retirement plan
568	that the hospital district is to adopt, benefits for new
569	employees comparable to those provided under the Florida
570	Retirement System.
571	d. Upon meeting all applicable requirements of this
572	subparagraph, and subject to the conditions set forth in
573	subparagraph 6., partial withdrawal from the system and adoption
574	of the alternative retirement plan may be accomplished by
575	resolution duly adopted by the hospital district board. The
576	hospital district board must provide written notice of such
577	withdrawal to the division by mailing a copy of the resolution
578	to the division, postmarked no later than December 15, 1995. The
579	withdrawal shall take effect January 1, 1996.
580	6. Following the adoption of a resolution under sub-
581	subparagraph 5.d., all employees of the withdrawing hospital
582	district who were participants in the Florida Retirement System
583	prior to January 1, 1996, shall remain as participants in the
584	system for as long as they are employees of the hospital
585	district, and all rights, duties, and obligations between the
586	hospital district, the system, and the employees shall remain in
587	full force and effect. Any employee who is hired or appointed on
588	or after January 1, 1996, may not participate in the Florida
589	Retirement System, and the withdrawing hospital district shall
590	have no obligation to the system with respect to such employees.
591	(f)1. Whenever an employer that participates in the
592	Florida Retirement System undertakes the transfer, merger, or
593	consolidation of governmental services or functions, the
594	employer must notify the divisiondepartmentat least 60 days
595	prior to such action and shall provide documentation as required
596	by the divisiondepartment.
597	2. When the agency to which a member's employing unit is
598	transferred, merged, or consolidated does not participate in the
599	Florida Retirement System, a member shall elect in writing to
600	remain in the Florida Retirement System or to transfer to the
601	local retirement system operated by such agency. If such agency
602	does not participate in a local retirement system, the member
603	shall continue membership in the Florida Retirement System. In
604	either case, the membership shall continue for as long as the
605	member is employed by the agency to which his or her unit was
606	transferred, merged, or consolidated.
607	Section 18. Subsection (2) of section 121.0511, Florida
608	Statutes, is amended to read:
609	121.0511 Revocation of election and alternative plan.--The
610	governing body of any municipality or independent special
611	district that has elected to participate in the Florida
612	Retirement System may revoke its election in accordance with the
613	following procedure:
614	(2) At least 7 days, but not more than 15 days, before the
615	hearing, notice of intent to revoke, specifying the time and
616	place of the hearing, must be published in a newspaper of
617	general circulation in the area affected, as provided by ss.
618	50.011-50.031. Proof of publication of the notice must be
619	submitted to the divisionDepartment of Management Services.
620	Section 19. Subsections (3) and (4) and paragraph (c) of
621	subsection (7) of section 121.0515, Florida Statutes, are
622	amended to read:
623	121.0515 Special risk membership.--
624	(3) PROCEDURE FOR DESIGNATING.--
625	(a) Any member of the Florida Retirement System employed
626	by a county, city, or special district who feels that he or she
627	meets the criteria set forth in this section for membership in
628	the Special Risk Class may request that his or her employer
629	submit an application to the divisiondepartmentrequesting that
630	the divisiondepartmentdesignate him or her as a special risk
631	member. If the employer agrees that the member meets the
632	requirements for special risk membership, the employer shall
633	submit an application to the divisiondepartmentin behalf of
634	the employee containing a certification that the member meets
635	the criteria for special risk membership set forth in this
636	section and such other supporting documentation as may be
637	required by administrative rule. The divisiondepartmentshall,
638	within 90 days, either designate or refuse to designate the
639	member as a special risk member. If the employer declines to
640	submit the member's application to the divisiondepartmentor if
641	the divisiondepartmentdoes not designate the member as a
642	special risk member, the member or the employer may appeal to
643	the State Retirement Commission, as provided in s. 121.23, for
644	designation as a special risk member. A member who receives a
645	final affirmative ruling pursuant to such appeal for special
646	risk membership shall have special risk membership retroactive
647	to the date such member would have had special risk membership
648	had such membership been approved by the employer and the
649	divisiondepartment, as determined by the divisiondepartment,
650	and the employer contributions shall be paid in full within 1
651	year after such final ruling.
652	(b)1. Applying the criteria set forth in this section, the
653	divisionDepartment of Management Servicesshall specify which
654	current and newly created classes of positions under the uniform
655	classification plan established pursuant to chapter 110 entitle
656	the incumbents of positions in those classes to membership in
657	the Special Risk Class. Only employees employed in the classes
658	so specified shall be special risk members.
659	2. When a class is not specified by the division
660	departmentas provided in subparagraph 1., the employing agency
661	may petition the State Retirement Commission for approval in
662	accordance with s. 121.23.
663	(4) REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member who is
664	a special risk member on October 1, 1978, and who fails to meet
665	the criteria for special risk membership established by this
666	section shall have his or her special risk designation removed
667	and thereafter shall be a regular member and shall earn only
668	regular membership credit. The divisiondepartmentshall have
669	the authority to review the special risk designation of members
670	to determine whether or not those members continue to meet the
671	criteria for special risk membership.
672	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.--
673	(c) The divisiondepartmentshall adopt such rules as are
674	required to administer this subsection.
675	Section 20. Paragraph (e) of subsection (3) of section
676	121.052, Florida Statutes, is amended to read:
677	121.052 Membership class of elected officers.--
678	(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
679	July 1, 1990, participation in the Elected Officers' Class shall
680	be compulsory for elected officers listed in paragraphs (2)(a)-
681	(d) and (f) assuming office on or after said date, unless the
682	elected officer elects membership in another class or withdraws
683	from the Florida Retirement System as provided in paragraphs
684	(3)(a)-(d):
685	(e) Effective July 1, 2001, the governing body of a
686	municipality or special district may, by majority vote, elect to
687	designate all its elected positions for inclusion in the Elected
688	Officers' Class. Such election shall be made between July 1,
689	2001, and December 31, 2001, and shall be irrevocable. The
690	designation of such positions shall be effective the first day
691	of the month following receipt by the divisiondepartmentof the
692	ordinance or resolution passed by the governing body.
693	Section 21. Paragraphs (b) and (h) of subsection (1) and
694	paragraphs (a), (c), (d), and (f) of subsection (6) of section
695	121.055, Florida Statutes, are amended to read:
696	121.055 Senior Management Service Class.--There is hereby
697	established a separate class of membership within the Florida
698	Retirement System to be known as the "Senior Management Service
699	Class," which shall become effective February 1, 1987.
700	(1)
701	(b)1. Except as provided in subparagraph 2., effective
702	January 1, 1990, participation in the Senior Management Service
703	Class shall be compulsory for the president of each community
704	college, the manager of each participating city or county, and
705	all appointed district school superintendents. Effective January
706	1, 1994, additional positions may be designated for inclusion in
707	the Senior Management Service Class of the Florida Retirement
708	System, provided that:
709	a. Positions to be included in the class shall be
710	designated by the local agency employer. Notice of intent to
711	designate positions for inclusion in the class shall be
712	published once a week for 2 consecutive weeks in a newspaper of
713	general circulation published in the county or counties
714	affected, as provided in chapter 50.
715	b. Up to 10 nonelective full-time positions may be
716	designated for each local agency employer reporting to the
717	divisionDepartment of Management Services; for local agencies
718	with 100 or more regularly established positions, additional
719	nonelective full-time positions may be designated, not to exceed
720	1 percent of the regularly established positions within the
721	agency.
722	c. Each position added to the class must be a managerial
723	or policymaking position filled by an employee who is not
724	subject to continuing contract and serves at the pleasure of the
725	local agency employer without civil service protection, and who:
726	(I) Heads an organizational unit; or
727	(II) Has responsibility to effect or recommend personnel,
728	budget, expenditure, or policy decisions in his or her areas of
729	responsibility.
730	2. In lieu of participation in the Senior Management
731	Service Class, members of the Senior Management Service Class
732	pursuant to the provisions of subparagraph 1. may withdraw from
733	the Florida Retirement System altogether. The decision to
734	withdraw from the Florida Retirement System shall be irrevocable
735	for as long as the employee holds such a position. Any service
736	creditable under the Senior Management Service Class shall be
737	retained after the member withdraws from the Florida Retirement
738	System; however, additional service credit in the Senior
739	Management Service Class shall not be earned after such
740	withdrawal. Such members shall not be eligible to participate in
741	the Senior Management Service Optional Annuity Program.
742	(h)1. Except as provided in subparagraph 3., effective
743	January 1, 1994, participation in the Senior Management Service
744	Class shall be compulsory for the State Courts Administrator and
745	the Deputy State Courts Administrators, the Clerk of the Supreme
746	Court, the Marshal of the Supreme Court, the Executive Director
747	of the Justice Administrative Commission, the Capital Collateral
748	Regional Counsels, the clerks of the district courts of appeals,
749	the marshals of the district courts of appeals, and the trial
750	court administrator and the Chief Deputy Court Administrator in
751	each judicial circuit. Effective January 1, 1994, additional
752	positions in the offices of the state attorney and public
753	defender in each judicial circuit may be designated for
754	inclusion in the Senior Management Service Class of the Florida
755	Retirement System, provided that:
756	a. Positions to be included in the class shall be
757	designated by the state attorney or public defender, as
758	appropriate. Notice of intent to designate positions for
759	inclusion in the class shall be published once a week for 2
760	consecutive weeks in a newspaper of general circulation
761	published in the county or counties affected, as provided in
762	chapter 50.
763	b. One nonelective full-time position may be designated
764	for each state attorney and public defender reporting to the
765	divisionDepartment of Management Services; for agencies with
766	200 or more regularly established positions under the state
767	attorney or public defender, additional nonelective full-time
768	positions may be designated, not to exceed 0.5 percent of the
769	regularly established positions within the agency.
770	c. Each position added to the class must be a managerial
771	or policymaking position filled by an employee who serves at the
772	pleasure of the state attorney or public defender without civil
773	service protection, and who:
774	(I) Heads an organizational unit; or
775	(II) Has responsibility to effect or recommend personnel,
776	budget, expenditure, or policy decisions in his or her areas of
777	responsibility.
778	2. Participation in this class shall be compulsory, except
779	as provided in subparagraph 3., for any judicial employee who
780	holds a position designated for coverage in the Senior
781	Management Service Class, and such participation shall continue
782	until the employee terminates employment in a covered position.
783	Effective January 1, 2001, participation in this class is
784	compulsory for assistant state attorneys, assistant statewide
785	prosecutors, assistant public defenders, and assistant capital
786	collateral regional counsels. Effective January 1, 2002,
787	participation in this class is compulsory for assistant
788	attorneys general.
789	3. In lieu of participation in the Senior Management
790	Service Class, such members, excluding assistant state
791	attorneys, assistant public defenders, assistant statewide
792	prosecutors, assistant attorneys general, and assistant capital
793	collateral regional counsels, may participate in the Senior
794	Management Service Optional Annuity Program as established in
795	subsection (6).
796	(6)(a) Senior Management Service Optional Annuity
797	Program.--The State Board of AdministrationDepartment of
798	Management Servicesshall establish a Senior Management Service
799	Optional Annuity Program under which contracts providing
800	retirement, death, and disability benefits may be purchased for
801	those employees who elect to participate in the optional annuity
802	program. The benefits to be provided for or on behalf of
803	participants in such optional annuity program shall be provided
804	through individual contracts or individual certificates issued
805	for group annuity contracts, which may be fixed, variable, or a
806	combination thereof, in accordance with s. 401(a) of the
807	Internal Revenue Code. Any such individual contract or
808	certificate shall state the annuity plan on its face page, and
809	shall include, but not be limited to, a statement of ownership,
810	the contract benefits, annuity income options, limitations,
811	expense charges, and surrender charges, if any. The employing
812	agency shall contribute, as provided in this section, toward the
813	purchase of such optional benefits which shall be fully and
814	immediately vested in the participants.
815	(c) Participation.--
816	1. Any eligible employee who is employed on or before
817	February 1, 1987, may elect to participate in the optional
818	annuity program in lieu of participation in the Senior
819	Management Service Class. Such election shall be made in writing
820	and filed with the boarddepartmentand the personnel officer of
821	the employer on or before May 1, 1987. Any eligible employee who
822	is employed on or before February 1, 1987, and who fails to make
823	an election to participate in the optional annuity program by
824	May 1, 1987, shall be deemed to have elected membership in the
825	Senior Management Service Class.
826	2. Any employee who becomes eligible to participate in the
827	optional annuity program by reason of initial employment
828	commencing after February 1, 1987, may, within 90 days after the
829	date of commencement of employment, elect to participate in the
830	optional annuity program. Such election shall be made in writing
831	and filed with the personnel officer of the employer. Any
832	eligible employee who does not within 90 days after commencement
833	of such employment elect to participate in the optional annuity
834	program shall be deemed to have elected membership in the Senior
835	Management Service Class.
836	3. A person who is appointed to a position in the Senior
837	Management Service Class and who is a member of an existing
838	retirement system or the Special Risk or Special Risk
839	Administrative Support Classes of the Florida Retirement System
840	may elect to remain in such system or class in lieu of
841	participation in the Senior Management Service Class or optional
842	annuity program. Such election shall be made in writing and
843	filed with the boarddepartmentand the personnel officer of the
844	employer within 90 days of such appointment. Any eligible
845	employee who fails to make an election to participate in the
846	existing system, the Special Risk Class of the Florida
847	Retirement System, the Special Risk Administrative Support Class
848	of the Florida Retirement System, or the optional annuity
849	program shall be deemed to have elected membership in the Senior
850	Management Service Class.
851	4. Except as provided in subparagraph 5., an employee's
852	election to participate in the optional annuity program is
853	irrevocable as long as such employee continues to be employed in
854	an eligible position and continues to meet the eligibility
855	requirements set forth in this paragraph.
856	5. Effective from July 1, 2002, through September 30,
857	2002, any active employee in a regularly established position
858	who has elected to participate in the Senior Management Service
859	Optional Annuity Program has one opportunity to choose to move
860	from the Senior Management Service Optional Annuity Program to
861	the Florida Retirement System defined benefit program.
862	a. The election must be made in writing and must be filed
863	with the department and the personnel officer of the employer
864	before October 1, 2002, or, in the case of an active employee
865	who is on a leave of absence on July 1, 2002, within 90 days
866	after the conclusion of the leave of absence. This election is
867	irrevocable.
868	b. The employee will receive service credit under the
869	defined benefit program of the Florida Retirement System equal
870	to his or her years of service under the Senior Management
871	Service Optional Annuity Program. The cost for such credit shall
872	be an amount representing the present value of that employee's
873	accumulated benefit obligation for the affected period of
874	service.
875	c. The employee must transfer the total accumulated
876	employer contributions and earnings on deposit in his or her
877	Senior Management Service Optional Annuity Program account. If
878	the transferred amount is not sufficient to pay the amount due,
879	the employee must pay a sum representing the remainder of the
880	amount due. In no case may the employee retain any employer
881	contributions or earnings thereon from the Senior Management
882	Service Optional Annuity Program account.
883	(d) Contributions.--
884	1. Through June 30, 2001, each employer shall contribute
885	on behalf of each participant in the Senior Management Service
886	Optional Annuity Program an amount equal to the normal cost
887	portion of the employer retirement contribution which would be
888	required if the participant were a Senior Management Service
889	Class member of the Florida Retirement System defined benefit
890	program, plus the portion of the contribution rate required in
891	s. 112.363(8) that would otherwise be assigned to the Retiree
892	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
893	each employer shall contribute on behalf of each participant in
894	the optional program an amount equal to 12.49 percent of the
895	participant's gross monthly compensation. The boarddepartment
896	shall deduct an amount approved by the board, pursuant to s.
897	215.44(4),Legislatureto provide for the administration of this
898	program. The payment of the contributions to the optional
899	program which is required by this subparagraph for each
900	participant shall be made by the employer to the board
901	department, which shall forward the contributions to the
902	designated company or companies contracting for payment of
903	benefits for the participant under the program.
904	2. Each employer shall contribute on behalf of each
905	participant in the Senior Management Service Optional Annuity
906	Program an amount equal to the unfunded actuarial accrued
907	liability portion of the employer contribution which would be
908	required for members of the Senior Management Service Class in
909	the Florida Retirement System. This contribution shall be paid
910	to the boarddepartmentfor transfer to the Florida Retirement
911	System Trust Fund.
912	3. An Optional Annuity Program Trust Fund shall be
913	established in the State Treasury and administered by the board
914	departmentto make payments to provider companies on behalf of
915	the optional annuity program participants, and to transfer the
916	unfunded liability portion of the state optional annuity program
917	contributions to the Florida Retirement System Trust Fund.
918	4. Contributions required for social security by each
919	employer and each participant, in the amount required for social
920	security coverage as now or hereafter may be provided by the
921	federal Social Security Act shall be maintained for each
922	participant in the Senior Management Service retirement program
923	and shall be in addition to the retirement contributions
924	specified in this paragraph.
925	5. Each participant in the Senior Management Service
926	Optional Annuity Program may contribute by way of salary
927	reduction or deduction a percentage amount of the participant' s
928	gross compensation not to exceed the percentage amount
929	contributed by the employer to the optional annuity program.
930	Payment of the participant's contributions shall be made by the
931	employer to the boarddepartment, which shall forward the
932	contributions to the designated company or companies contracting
933	for payment of benefits for the participant under the program.
934	(f) Administration.--
935	1. The Senior Management Service Optional Annuity Program
936	authorized by this section shall be administered by the board
937	department. The boarddepartmentshall designate one or more
938	provider companies from which annuity contracts may be purchased
939	under the program and shall approve the form and content of the
940	contracts. The boarddepartmentshall sign a contract with each
941	of the provider companies and shall evaluate the performance of
942	the provider companies on a continuing basis. The board
943	departmentmay terminate the services of a provider company for
944	reasons stated in the contract. The boarddepartmentshall adopt
945	rules establishing its responsibilities and the responsibilities
946	of employers in administering the optional annuity program.
947	2. Effective July 1, 1997, the State Board of
948	Administration shall review and make recommendations to the
949	department on the acceptability of all investment products
950	proposed by provider companies of the optional annuity program
951	before such products are offered through annuity contracts to
952	the participants and may advise the department of any changes
953	deemed necessary to ensure that the optional annuity program
954	offers an acceptable mix of investment products. The board
955	department shall determine whichmake the final determination as
956	to whether an investment productsproduct will be included in
957	approved forthe program.
958	3. The provisions of each contract applicable to a
959	participant in the Senior Management Service Optional Annuity
960	Program shall be contained in a written program description
961	which shall include a report of pertinent financial and
962	actuarial information on the solvency and actuarial soundness of
963	the program and the benefits applicable to the participant. Such
964	description shall be furnished by the company or companies to
965	each participant in the program and to the boarddepartmentupon
966	commencement of participation in the program and annually
967	thereafter.
968	4. The boarddepartmentshall ensure that each participant
969	in the Senior Management Service Optional Annuity Program is
970	provided an accounting of the total contribution and the annual
971	contribution made by and on behalf of such participants.
972	Section 22. Paragraph (h) of subsection (1) and paragraph
973	(e) of subsection (2) of section 121.081, Florida Statutes, are
974	amended to read:
975	121.081 Past service; prior service;
976	contributions.--Conditions under which past service or prior
977	service may be claimed and credited are:
978	(1)
979	(h) The following provisions apply to the purchase of past
980	service:
981	1. Notwithstanding any of the provisions of this
982	subsection, past-service credit may not be purchased under this
983	chapter for any service that is used to obtain a benefit from
984	any local retirement system.
985	2. A member may not receive past service credit under
986	paragraphs (a), (b), (e), or (f) for any leaves of absence
987	without pay, except that credit for active military service
988	leaves of absence may be claimed under paragraphs (a), (b), and
989	(f), in accordance with s. 121.111(1).
990	3. If a member does not desire to receive credit for all
991	of his or her past service, the period the member claims must be
992	the most recent past service prior to his or her participation
993	in the Florida Retirement System.
994	4. The cost of past service purchased by an employing
995	agency for its employees may be amortized over such period of
996	time as is provided in the agreement, but not to exceed 15
997	years, calculated in accordance with rule 60S-1.007(5)(f),
998	Florida Administrative Code.
999	5. The retirement account of each member for whom past
1000	service is being provided by his or her employer shall be
1001	credited with all past service the employer agrees to purchase
1002	as soon as the agreement between the employer and the division
1003	departmentis executed. Pursuant thereto:
1004	a. Each such member's account shall also be posted with
1005	the total contribution his or her employer agrees to make in the
1006	member's behalf for past service earned prior to October 1,
1007	1975, excluding those contributions representing the employer's
1008	matching share and the compound interest calculation on the
1009	total contribution. However, a portion of any contributions paid
1010	by an employer for past service credit earned on and after
1011	October 1, 1975, may not be posted to a member's account.
1012	b. A refund of contributions payable after an employer has
1013	made a written agreement to purchase past service for employees
1014	of the covered group shall include contributions for past
1015	service which are posted to a member's account. However,
1016	contributions for past service earned on and after October 1,
1017	1975, are not refundable.
1018	(2) Prior service, as defined in s. 121.021(19), may be
1019	claimed as creditable service under the Florida Retirement
1020	System after a member has been reemployed for 1 complete year of
1021	creditable service within a period of 12 consecutive months,
1022	except as provided in paragraph (c). Service performed as a
1023	participant of the optional retirement program for the State
1024	University System under s. 121.35 or the Senior Management
1025	Service Optional Annuity Program under s. 121.055 may be used to
1026	satisfy the reemployment requirement of 1 complete year of
1027	creditable service. The member shall not be permitted to make
1028	any contributions for prior service until after completion of
1029	the 1 year of creditable service. If a member does not wish to
1030	claim credit for all of his or her prior service, the service
1031	the member claims must be the most recent period of service. The
1032	required contributions for claiming the various types of prior
1033	service are:
1034	(e) For service performed under the Florida Retirement
1035	System after December 1, 1970, that was never reported to the
1036	division or the departmentdue to error, retirement credit may
1037	be claimed by a member of the Florida Retirement System. The
1038	divisiondepartmentshall adopt rules establishing criteria for
1039	claiming such credit and detailing the documentation required to
1040	substantiate the error.
1041	Section 23. Subsection (1) of section 121.085, Florida
1042	Statutes, is amended to read:
1043	121.085 Creditable service.--The following provisions
1044	shall apply to creditable service as defined in s. 121.021(17):
1045	(1) The divisiondepartmentshall adopt rules establishing
1046	procedures for the submission of evidence or information
1047	necessary to establish a member's claim of creditable service.
1048	Section 24. Section 121.091, Florida Statutes, is amended
1049	to read:
1050	121.091 Benefits payable under the system.--Benefits may
1051	not be paid under this section unless the member has terminated
1052	employment as provided in s. 121.021(39)(a) or begun
1053	participation in the Deferred Retirement Option Program as
1054	provided in subsection (13), and a proper application has been
1055	filed in the manner prescribed by the divisiondepartment. The
1056	divisiondepartmentmay cancel an application for retirement
1057	benefits when the member or beneficiary fails to timely provide
1058	the information and documents required by this chapter and the
1059	division'sdepartment's rules. The divisiondepartmentshall
1060	adopt rules establishing procedures for application for
1061	retirement benefits and for the cancellation of such application
1062	when the required information or documents are not received.
1063	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
1064	normal retirement date, the member, upon application to the
1065	administrator, shall receive a monthly benefit which shall begin
1066	to accrue on the first day of the month of retirement and be
1067	payable on the last day of that month and each month thereafter
1068	during his or her lifetime. The normal retirement benefit,
1069	including any past or additional retirement credit, may not
1070	exceed 100 percent of the average final compensation. The amount
1071	of monthly benefit shall be calculated as the product of A and
1072	B, subject to the adjustment of C, if applicable, as set forth
1073	below:
1074	(a)1. For creditable years of Regular Class service, A is
1075	1.60 percent of the member's average final compensation, up to
1076	the member's normal retirement date. Upon completion of the
1077	first year after the normal retirement date, A is 1.63 percent
1078	of the member's average final compensation. Following the second
1079	year after the normal retirement date, A is 1.65 percent of the
1080	member's average final compensation. Following the third year
1081	after the normal retirement date, and for subsequent years, A is
1082	1.68 percent of the member's average final compensation.
1083	2. For creditable years of special risk service, A is:
1084	a. Two percent of the member's average final compensation
1085	for all creditable years prior to October 1, 1974;
1086	b. Three percent of the member's average final
1087	compensation for all creditable years after September 30, 1974,
1088	and before October 1, 1978;
1089	c. Two percent of the member's average final compensation
1090	for all creditable years after September 30, 1978, and before
1091	January 1, 1989;
1092	d. Two and two-tenths percent of the member's final
1093	monthly compensation for all creditable years after December 31,
1094	1988, and before January 1, 1990;
1095	e. Two and four-tenths percent of the member's average
1096	final compensation for all creditable years after December 31,
1097	1989, and before January 1, 1991;
1098	f. Two and six-tenths percent of the member's average
1099	final compensation for all creditable years after December 31,
1100	1990, and before January 1, 1992;
1101	g. Two and eight-tenths percent of the member's average
1102	final compensation for all creditable years after December 31,
1103	1991, and before January 1, 1993;
1104	h. Three percent of the member's average final
1105	compensation for all creditable years after December 31, 1992;
1106	and
1107	i. Three percent of the member's average final
1108	compensation for all creditable years of service after September
1109	30, 1978, and before January 1, 1993, for any special risk
1110	member who retires after July 1, 2000, or any member of the
1111	Special Risk Administrative Support Class entitled to retain the
1112	special risk normal retirement date who was a member of the
1113	Special Risk Class during the time period and who retires after
1114	July 1, 2000.
1115	3. For creditable years of Senior Management Service Class
1116	service after January 31, 1987, A is 2 percent;
1117	4. For creditable years of Elected Officers' Class service
1118	as a Supreme Court Justice, district court of appeal judge,
1119	circuit judge, or county court judge, A is 31/3 percent of the
1120	member's average final compensation, and for all other
1121	creditable service in such class, A is 3 percent of average
1122	final compensation;
1123	(b) B is the number of the member's years and any
1124	fractional part of a year of creditable service earned
1125	subsequent to November 30, 1970; and
1126	(c) C is the normal retirement benefit credit brought
1127	forward as of November 30, 1970, by a former member of an
1128	existing system. Such normal retirement benefit credit shall be
1129	determined as the product of X and Y when X is the percentage of
1130	average final compensation which the member would have been
1131	eligible to receive if the member had attained his or her normal
1132	retirement date as of November 30, 1970, all in accordance with
1133	the existing system under which the member is covered on
1134	November 30, 1970, and Y is average final compensation as
1135	defined in s. 121.021(25). However, any member of an existing
1136	retirement system who is eligible to retire and who does retire,
1137	become disabled, or die prior to April 15, 1971, may have his or
1138	her retirement benefits calculated on the basis of the best 5 of
1139	the last 10 years of service.
1140	(d) A member's average final compensation shall be
1141	determined by formula to obtain the coverage for the 5 highest
1142	fiscal years' salaries, calculated as provided by rule.
1143	(2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
1144	a member accumulates retirement benefits to commence at
1145	different normal retirement ages by virtue of having performed
1146	duties for an employer which would entitle him or her to
1147	benefits as both a member of the Special Risk Class and a member
1148	of either the Regular Class, Senior Management Service Class, or
1149	Elected Officers' Class, the amount of benefits payable shall be
1150	computed separately with respect to each such age and the sum of
1151	such computed amounts shall be paid as provided in this section.
1152	(3) EARLY RETIREMENT BENEFIT.--Upon retirement on his or
1153	her early retirement date, the member shall receive an immediate
1154	monthly benefit that shall begin to accrue on the first day of
1155	the month of the retirement date and be payable on the last day
1156	of that month and each month thereafter during his or her
1157	lifetime. Such benefit shall be calculated as follows:
1158	(a) The amount of each monthly payment shall be computed
1159	in the same manner as for a normal retirement benefit, in
1160	accordance with subsection (1), but shall be based on the
1161	member's average monthly compensation and creditable service as
1162	of the member's early retirement date. The benefit so computed
1163	shall be reduced by five-twelfths of 1 percent for each complete
1164	month by which the early retirement date precedes the normal
1165	retirement date of age 62 for a member of the Regular Class,
1166	Senior Management Service Class, or the Elected Officers' Class,
1167	and age 55 for a member of the Special Risk Class, or age 52 if
1168	a Special Risk member has completed 25 years of creditable
1169	service in accordance with s. 121.021(29)(b)3.
1170	(b) If the employment of a member is terminated by reason
1171	of death subsequent to the completion of 20 years of creditable
1172	service, the monthly benefit payable to the member's beneficiary
1173	shall be calculated in accordance with subsection (1), but shall
1174	be based on average monthly compensation and creditable service
1175	as of the date of death. The benefit so computed shall be
1176	reduced by five-twelfths of 1 percent for each complete month by
1177	which death precedes the normal retirement date specified above
1178	or the date on which the member would have attained 30 years of
1179	creditable service had he or she survived and continued his or
1180	her employment, whichever provides a higher benefit.
1181	(4) DISABILITY RETIREMENT BENEFIT.--
1182	(a) Disability retirement; entitlement and effective
1183	date.--
1184	1.a. A member who becomes totally and permanently
1185	disabled, as defined in paragraph (b), after completing 5 years
1186	of creditable service, or a member who becomes totally and
1187	permanently disabled in the line of duty regardless of service,
1188	shall be entitled to a monthly disability benefit; except that
1189	any member with less than 5 years of creditable service on July
1190	1, 1980, or any person who becomes a member of the Florida
1191	Retirement System on or after such date must have completed 10
1192	years of creditable service prior to becoming totally and
1193	permanently disabled in order to receive disability retirement
1194	benefits for any disability which occurs other than in the line
1195	of duty. However, if a member employed on July 1, 1980, with
1196	less than 5 years of creditable service as of that date, becomes
1197	totally and permanently disabled after completing 5 years of
1198	creditable service and is found not to have attained fully
1199	insured status for benefits under the federal Social Security
1200	Act, such member shall be entitled to a monthly disability
1201	benefit.
1202	b. Effective July 1, 2001, a member of the defined benefit
1203	retirement program who becomes totally and permanently disabled,
1204	as defined in paragraph (b), after completing 8 years of
1205	creditable service, or a member who becomes totally and
1206	permanently disabled in the line of duty regardless of service,
1207	shall be entitled to a monthly disability benefit.
1208	2. If the division has received from the employer the
1209	required documentation of the member's termination of
1210	employment, the effective retirement date for a member who
1211	applies and is approved for disability retirement shall be
1212	established by rule of the division.
1213	3. For a member who is receiving Workers' Compensation
1214	payments, the effective disability retirement date may not
1215	precede the date the member reaches Maximum Medical Improvement
1216	(MMI), unless the member terminates employment prior to reaching
1217	MMI.
1218	(b) Total and permanent disability.--A member shall be
1219	considered totally and permanently disabled if, in the opinion
1220	of the administrator, he or she is prevented, by reason of a
1221	medically determinable physical or mental impairment, from
1222	rendering useful and efficient service as an officer or
1223	employee.
1224	(c) Proof of disability.--The administrator, before
1225	approving payment of any disability retirement benefit, shall
1226	require proof that the member is totally and permanently
1227	disabled as provided herein:
1228	1. Such proof shall include the certification of the
1229	member's total and permanent disability by two licensed
1230	physicians of the state and such other evidence of disability as
1231	the administrator may require, including reports from vocational
1232	rehabilitation, evaluation, or testing specialists who have
1233	evaluated the applicant for employment.
1234	2. It must be documented that:
1235	a. The member's medical condition occurred or became
1236	symptomatic during the time the member was employed in an
1237	employee/employer relationship with his or her employer;
1238	b. The member was totally and permanently disabled at the
1239	time he or she terminated covered employment; and
1240	c. The member has not been employed with any other
1241	employer after such termination.
1242	3. If the application is for in-line-of-duty disability,
1243	in addition to the requirements of subparagraph 2., it must be
1244	documented by competent medical evidence that the disability was
1245	caused by a job-related illness or accident which occurred while
1246	the member was in an employee/employer relationship with his or
1247	her employer.
1248	4. The unavailability of an employment position that the
1249	member is physically and mentally capable of performing will not
1250	be considered as proof of total and permanent disability.
1251	(d) Election on appeal.--A member whose application for
1252	regular disability retirement has been denied and who has filed
1253	an appeal to the State Retirement Commission may, if eligible,
1254	elect to receive normal or early service retirement benefits
1255	while he or she is awaiting the decision on the appeal. However:
1256	1. If the member elects to receive service retirement
1257	benefits and disability benefits are later approved as a result
1258	of the appeal, the payment option chosen by the member may not
1259	be changed.
1260	2. If the member elects to receive early service
1261	retirement and the appeal is later denied, the member may not
1262	change his or her election of early retirement.
1263
1264	Before such regular or early retirement benefits may be paid by
1265	the division, the member must provide to the division a written
1266	statement indicating that the member understands that such
1267	changes are not permitted after he or she begins receiving the
1268	benefits.
1269	(e) Disability retirement benefit.--Upon the retirement of
1270	a member on his or her disability retirement date, the member
1271	shall receive a monthly benefit that shall begin to accrue on
1272	the first day of the month of disability retirement and shall be
1273	payable on the last day of that month and each month thereafter
1274	during his or her lifetime and continued disability.
1275	(f) Computation of disability retirement benefit.--The
1276	amount of each monthly payment shall be computed in the same
1277	manner as for a normal retirement benefit, in accordance with
1278	subsection (1), but shall be based on disability option
1279	actuarial equivalency tables and the average monthly
1280	compensation and creditable service of the member as of the
1281	disability retirement date, subject to the following conditions:
1282	1. If the member's disability occurred in the line of
1283	duty, the monthly Option 1 benefit shall not be less than:
1284	a. Forty-two percent of average monthly compensation as of
1285	the disability retirement date; or
1286	b. Sixty-five percent of the average monthly compensation
1287	as of the disability retirement date for a member of the special
1288	risk class who retires on or after July 1, 2000; or
1289	2. If the member's disability occurred other than in the
1290	line of duty, the monthly Option 1 benefit shall not be less
1291	than 25 percent of average monthly compensation as of the
1292	disability retirement date.
1293	(g) Reapplication.--A member, whose initial application
1294	for disability retirement has been denied, may reapply for
1295	disability benefits. However, such member's reapplication will
1296	be considered only if the member presents new medical evidence
1297	of a medical condition that existed prior to the member's
1298	termination of employment. The division may prescribe by rule
1299	procedures for reapplication and for review and approval or
1300	disapproval of reapplication.
1301	(h) Recovery from disability.--The administrator may
1302	require periodic reexaminations at the expense of the retirement
1303	fund. The division may adopt rules establishing procedures for
1304	conducting and review of such reexaminations.
1305	1. If the administrator finds that a member who is
1306	receiving disability benefits is, at any time prior to his or
1307	her normal retirement date, no longer disabled, the
1308	administrator shall direct that the benefits be discontinued.
1309	The decision of the administrator on this question shall be
1310	final and binding. If such member:
1311	a. Does not reenter the employ of an employer and was not
1312	vested as of the disability retirement date, he or she shall be
1313	entitled to the excess, if any, of his or her accumulated
1314	contributions over the total disability benefits received up to
1315	the date of recovery.
1316	b. Does not reenter the employ of an employer, but was
1317	vested as of the disability retirement date, he or she may elect
1318	to receive:
1319	(I) The excess, if any, of his or her accumulated
1320	contributions over the total disability benefits received up to
1321	the date of recovery; or
1322	(II) A deferred benefit commencing on the last day of the
1323	month of the normal retirement date which shall be payable on
1324	the last day of the month thereafter during his or her lifetime.
1325	The amount of such monthly benefit shall be computed in the same
1326	manner as for a normal retirement benefit, in accordance with
1327	subsection (1), but shall be based on average monthly
1328	compensation and creditable service as of the member's
1329	disability retirement date.
1330	c. Reenters employment of an employer within 6 months
1331	after recovery, the member's service will be deemed to have been
1332	continuous, but the period beginning with the first month for
1333	which he or she received a disability benefit payment and ending
1334	with the date he or she reentered employment will not be
1335	considered as creditable service for the purpose of computing
1336	benefits except as provided in sub-subparagraph d. As used in
1337	this section, the term "accumulated contributions" for such
1338	member means the excess of the member's accumulated
1339	contributions as of the disability retirement date over the
1340	total disability benefits received under paragraph (e).
1341	d. Terminates his or her disability benefit, reenters
1342	covered employment, and is continuously employed for a minimum
1343	of 1 year of creditable service, he or she may claim as
1344	creditable service the months during which he or she was
1345	receiving a disability benefit, upon payment of the required
1346	contributions. Contributions shall equal the total required
1347	employee and employer contribution rate applicable during the
1348	period the retiree received retirement benefits, multiplied
1349	times his or her rate of monthly compensation prior to the
1350	commencement of disability retirement for each month of the
1351	period claimed, plus 4 percent interest until July 1, 1975, and
1352	6.5 percent interest thereafter, compounded annually each June
1353	30 to the date of payment. If the member does not claim credit
1354	for all of the months he or she received disability benefits,
1355	the months claimed must be the most recent months of retirement.
1356	Such credit for periods of disability, when purchased under the
1357	Florida Retirement System, shall apply toward vesting
1358	requirements for eligibility to purchase additional credit for
1359	other service.
1360	2. Both the member receiving disability benefits who
1361	reenters employment and the employer employing such disability
1362	retiree shall notify the division immediately upon reemployment,
1363	and the division shall terminate such member's disability
1364	benefits, effective the first day of the month following the
1365	month in which notification of recovery is received. If the
1366	member is reemployed with a Florida Retirement System employer
1367	at the time of benefit termination, and he or she has received
1368	disability retirement benefit and salary payments concurrently
1369	prior to notifying the division, he or she may elect within 30
1370	days to:
1371	a. Retain the retirement benefits received prior to
1372	termination of disability benefits and begin receiving
1373	retirement service credit effective upon the date of termination
1374	of benefits; or
1375	b. Repay, within 12 months after his or her decision to
1376	receive service credit, the retirement benefits received for
1377	each month of reemployment prior to termination of disability
1378	benefits and begin receiving retirement service credit effective
1379	upon the date of reemployment. Any such unpaid benefits shall
1380	have compound interest of 6.5 percent added June 30.
1381
1382	A member may not receive both retirement service credit for
1383	employment and retirement benefits for the same month.
1384	3. If, after recovery of disability and reentry into
1385	covered employment, the member again becomes disabled and is
1386	again approved for disability retirement, the Option 1 monthly
1387	retirement benefit shall not be less than the Option 1 monthly
1388	benefit calculated at the time of the previous disability, plus
1389	any cost of living increases up to the time the disability
1390	benefit was terminated upon his or her reentry into covered
1391	employment.
1392	(i) Nonadmissible causes of disability.--A member shall
1393	not be entitled to receive any disability retirement benefit if
1394	the disability is a result of any of the following:
1395	1. Injury or disease sustained by the member while
1396	willfully participating in a riot, civil insurrection, or other
1397	act of violence or while committing a felony;
1398	2. Injury or disease sustained by the member after his or
1399	her employment has terminated; or
1400	3. Intentional, self-inflicted injury.
1401	(j) Disability retirement of justice or judge by order of
1402	Supreme Court.--
1403	1.If a member is a justice of the Supreme Court, judge of
1404	a district court of appeal, circuit judge, or judge of a county
1405	court who has served for 6 years or more as an elected
1406	constitutional judicial officer, including service as a judicial
1407	officer in any court abolished pursuant to Art. V of the State
1408	Constitution, and who is retired for disability by order of the
1409	Supreme Court upon recommendation of the Judicial Qualifications
1410	Commission pursuant to the provisions of Art. V of the State
1411	Constitution, the member's Option 1 monthly benefit as provided
1412	in subparagraph (6)(a)1. shall not be less than two-thirds of
1413	his or her monthly compensation as of the member's disability
1414	retirement date. Such a member may alternatively elect to
1415	receive a disability retirement benefit under any other option
1416	as provided in paragraph (6)(a).
1417	2. Should any justice or judge who is a member of the
1418	Florida Retirement System be retired for disability by order of
1419	the Supreme Court upon recommendation of the Judicial
1420	Qualifications Commission pursuant to the provisions of Art. V
1421	of the State Constitution, then all contributions to his or her
1422	account and all contributions made on his or her behalf by the
1423	employer shall be transferred to and deposited in the General
1424	Revenue Fund of the state, and there is hereby appropriated
1425	annually out of the General Revenue Fund, to be paid into the
1426	Florida Retirement System Fund, an amount necessary to pay the
1427	benefits of all justices and judges retired from the Florida
1428	Retirement System pursuant to Art. V of the State Constitution.
1429	(5) TERMINATION BENEFITS.--A member whose employment is
1430	terminated prior to retirement retains membership rights to
1431	previously earned member-noncontributory service credit, and to
1432	member-contributory service credit, if the member leaves the
1433	member contributions on deposit in his or her retirement
1434	account. If a terminated member receives a refund of member
1435	contributions, such member may reinstate membership rights to
1436	the previously earned service credit represented by the refund
1437	by completing 1 year of creditable service and repaying the
1438	refunded member contributions, plus interest.
1439	(a) A member whose employment is terminated for any reason
1440	other than death or retirement prior to becoming vested is
1441	entitled to the return of his or her accumulated contributions
1442	as of the date of termination.
1443	(b) A member whose employment is terminated for any reason
1444	other than death or retirement after becoming vested may elect
1445	to receive a deferred monthly benefit which shall begin to
1446	accrue on the first day of the month of normal or early
1447	retirement and shall be payable on the last day of that month
1448	and each month thereafter during his or her lifetime. The amount
1449	of monthly benefit shall be computed in the same manner as for a
1450	normal retirement benefit in accordance with subsection (1) or
1451	early retirement benefit in accordance with s. 121.021(30), but
1452	based on average monthly compensation and creditable service as
1453	of the date of termination.
1454	(c) In lieu of the deferred monthly benefit provided in
1455	paragraph (b), the terminated member may elect to receive a
1456	lump-sum amount equal to his or her accumulated contributions as
1457	of the date of termination.
1458	(d) If any retired member dies without having received in
1459	benefit payments an amount equal to his or her accumulated
1460	contributions, there shall be payable to his or her designated
1461	beneficiary an amount equal to the excess, if any, of the
1462	member's accumulated contributions over the total monthly
1463	payments made to the member prior to the date of death.
1464	(e) A member shall be deemed a terminated member when
1465	termination of employment has occurred as provided in s.
1466	121.021(39).
1467	(f) Any member who has been found guilty by a verdict of a
1468	jury, or by the court trying the case without a jury, of
1469	committing, aiding, or abetting any embezzlement or theft from
1470	his or her employer, bribery in connection with the employment,
1471	or other felony specified in chapter 838, except ss. 838.15 and
1472	838.16, committed prior to retirement, or who has entered a plea
1473	of guilty or of nolo contendere to such crime, or any member
1474	whose employment is terminated by reason of the member's
1475	admitted commitment, aiding, or abetting of an embezzlement or
1476	theft from his or her employer, bribery, or other felony
1477	specified in chapter 838, except ss. 838.15 and 838.16, shall
1478	forfeit all rights and benefits under this chapter, except the
1479	return of his or her accumulated contributions as of the date of
1480	termination.
1481	(g) Any elected official who is convicted by the Senate of
1482	an impeachable offense shall forfeit all rights and benefits
1483	under this chapter, except the return of his or her accumulated
1484	contributions as of the date of the conviction.
1485	(h) Any member who, prior to retirement, is adjudged by a
1486	court of competent jurisdiction to have violated any state law
1487	against strikes by public employees, or who has been found
1488	guilty by such court of violating any state law prohibiting
1489	strikes by public employees, shall forfeit all rights and
1490	benefits under this chapter, except the return of his or her
1491	accumulated contributions as of the date of the conviction.
1492	(i) Any beneficiary who by a verdict of a jury or by the
1493	court trying the case without a jury is found guilty, or who has
1494	entered a plea of guilty or nolo contendere, of unlawfully and
1495	intentionally killing or procuring the death of the member
1496	forfeits all rights to the deceased member's benefits under this
1497	chapter, and the benefits will be paid as if such beneficiary
1498	had predeceased the decedent.
1499	(j) Benefits shall not be paid by the division pending
1500	final resolution of such charges against a member or beneficiary
1501	if the resolution of such charges could require the forfeiture
1502	of benefits as provided in paragraph (f), paragraph (g),
1503	paragraph (h), or paragraph (i).
1504	(6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY
1505	RETIREMENT BENEFITS.--
1506	(a) Prior to the receipt of the first monthly retirement
1507	payment, a member shall elect to receive the retirement benefits
1508	to which he or she is entitled under subsection (1), subsection
1509	(2), subsection (3), or subsection (4) in accordance with one of
1510	the following options:
1511	1. The maximum retirement benefit payable to the member
1512	during his or her lifetime.
1513	2. A decreased retirement benefit payable to the member
1514	during his or her lifetime and, in the event of his or her death
1515	within a period of 10 years after retirement, the same monthly
1516	amount payable for the balance of such 10-year period to his or
1517	her beneficiary or, in case the beneficiary is deceased, in
1518	accordance with subsection (8) as though no beneficiary had been
1519	named.
1520	3. A decreased retirement benefit payable during the joint
1521	lifetime of both the member and his or her joint annuitant and
1522	which, after the death of either, shall continue during the
1523	lifetime of the survivor in the same amount, subject to the
1524	provisions of subsection (12).
1525	4. A decreased retirement benefit payable during the joint
1526	lifetime of the member and his or her joint annuitant and which,
1527	after the death of either, shall continue during the lifetime of
1528	the survivor in an amount equal to 662/3 percent of the amount
1529	that was payable during the joint lifetime of the member and his
1530	or her joint annuitant, subject to the provisions of subsection
1531	(12).
1532
1533	The spouse of any member who elects to receive the benefit
1534	provided under subparagraph 1. or subparagraph 2. shall be
1535	notified of and shall acknowledge any such election. The
1536	division shall establish by rule a method for selecting the
1537	appropriate actuarial factor for optional forms of benefits
1538	selected under subparagraphs 3. and 4., based on the age of the
1539	member and the joint annuitant.
1540	(b) The benefit payable under any option stated above
1541	shall be the actuarial equivalent, based on tables adopted by
1542	the administrator for this purpose, of the amount to which the
1543	member was otherwise entitled.
1544	(c) A member who elects the option in subparagraph (a)2.
1545	shall, in accordance with subsection (8), designate one or more
1546	persons to receive the benefits payable in the event of his or
1547	her death. Such persons shall be the beneficiaries of the
1548	member. The member may also designate one or more contingent
1549	beneficiaries to receive any benefits remaining upon the death
1550	of the primary beneficiary.
1551	(d) A member who elects the option in subparagraph (a)3.
1552	or subparagraph (a)4. shall, on a form provided for that
1553	purpose, designate a joint annuitant to receive the benefits
1554	which continue to be payable upon the death of the member. After
1555	benefits have commenced under the option in subparagraph (a)3.
1556	or subparagraph (a)4., the following shall apply:
1557	1. A retired member may change his or her designation of a
1558	joint annuitant only twice. If such a retired member desires to
1559	change his or her designation of a joint annuitant, he or she
1560	shall file with the division a notarized "change of joint
1561	annuitant" form and shall notify the former joint annuitant in
1562	writing of such change. Effective the first day of the next
1563	month following receipt by the division of a completed change of
1564	joint annuitant form, the division shall adjust the member's
1565	monthly benefit by the application of actuarial tables and
1566	calculations developed to ensure that the benefit paid is the
1567	actuarial equivalent of the present value of the member's
1568	current benefit. The consent of a retired member's first
1569	designated joint annuitant to any such change shall not be
1570	required. However, if either the member or the joint annuitant
1571	dies before the effective date of the request for change of
1572	joint annuitant, the requested change shall be void, and
1573	survivor benefits, if any, shall be paid as if no request had
1574	been made.
1575	2. In the event of the dissolution of marriage of a
1576	retired member and a joint annuitant, such member may make an
1577	election to nullify the joint annuitant designation of the
1578	former spouse, unless there is an existing qualified domestic
1579	relations order preventing such action. The member shall file
1580	with the division a written, notarized nullification which shall
1581	be effective on the first day of the next month following
1582	receipt by the division. Benefits shall be paid as if the former
1583	spouse predeceased the member. A member who makes such an
1584	election may not reverse the nullification but may designate a
1585	new joint annuitant in accordance with subparagraph 1.
1586	(e) The election of an option shall be null and void if
1587	the member dies before the effective date of retirement.
1588	(f) A member who elects to receive benefits under the
1589	option in subparagraph (a)3. may designate one or more qualified
1590	persons, either a spouse or other dependent, as his or her joint
1591	annuitant to receive the benefits after the member's death in
1592	whatever proportion he or she so assigns to each person named as
1593	joint annuitant. The division shall adopt appropriate actuarial
1594	tables and calculations necessary to ensure that the benefit
1595	paid is the actuarial equivalent of the benefit to which the
1596	member is otherwise entitled under the option in subparagraph
1597	(a)1.
1598	(g) Upon the death of a retired member or beneficiary
1599	receiving monthly benefits under this chapter, the monthly
1600	benefits shall be paid through the last day of the month of
1601	death and shall terminate, or be adjusted, if applicable, as of
1602	that date in accordance with the optional form of benefit
1603	selected at the time of retirement.
1604	(h) The option selected or determined for payment of
1605	benefits as provided in this section shall be final and
1606	irrevocable at the time a benefit payment is cashed or deposited
1607	or credited to the Deferred Retirement Option Program as
1608	provided in subsection (13).
1609	(7) DEATH BENEFITS.--
1610	(a) If the employment of a member is terminated by reason
1611	of his or her death prior to being vested, except as provided in
1612	paragraph (f), there shall be payable to his or her designated
1613	beneficiary the member's accumulated contributions.
1614	(b) If the employment of an active member who may or may
1615	not have applied for retirement is terminated by reason of his
1616	or her death subsequent to becoming vested and prior to his or
1617	her effective date of retirement, if established, it shall be
1618	assumed that the member retired as of the date of death in
1619	accordance with subsection (1) if eligible for normal retirement
1620	benefits, subsection (2) if eligible for benefits payable for
1621	dual normal retirement, or subsection (3) if eligible for early
1622	retirement benefits. Benefits payable to the designated
1623	beneficiary shall be as follows:
1624	1. For a beneficiary who qualifies as a joint annuitant,
1625	the optional form of payment provided in accordance with
1626	subparagraph (6)(a)3. shall be paid for the joint annuitant's
1627	lifetime.
1628	2. For a beneficiary who does not qualify as a joint
1629	annuitant, no continuing monthly benefit shall be paid and the
1630	beneficiary shall be entitled only to the return of the member's
1631	personal contributions. If there is no monetary interest in the
1632	member's retirement account for which such beneficiary is
1633	eligible, the beneficiary shall be the next named beneficiary
1634	or, if no other beneficiary is named, the beneficiary shall be
1635	the next eligible beneficiary according to subsection (8).
1636	(c) If a retiring member dies on or after the effective
1637	date of retirement, but prior to a benefit payment being cashed
1638	or deposited, or credited to the Deferred Retirement Option
1639	Program, benefits shall be paid as follows:
1640	1. For a designated beneficiary who qualifies as a joint
1641	annuitant, benefits shall be paid in the optional form of
1642	payment provided in subparagraph (6)(a)3. for the joint
1643	annuitant's lifetime or, if the member chose the optional form
1644	of payment provided in subparagraph (6)(a)2., the joint
1645	annuitant may select the form provided in either subparagraph
1646	(6)(a)2. or subparagraph (6)(a)3.
1647	2. For a designated beneficiary who does not qualify as a
1648	joint annuitant, any benefits payable shall be paid as provided
1649	in the option selected by the member; or if the member has not
1650	selected an option, benefits shall be paid in the optional form
1651	of payment provided in subparagraph (6)(a)1.
1652	(d) Notwithstanding any other provision in this chapter to
1653	the contrary, with the exception of the Deferred Retirement
1654	Option Program, as provided in subsection (13):
1655	1. The surviving spouse of any member killed in the line
1656	of duty may receive a monthly pension equal to one-half of the
1657	monthly salary being received by the member at the time of death
1658	for the rest of the surviving spouse's lifetime or, if the
1659	member was vested, such surviving spouse may elect to receive a
1660	benefit as provided in paragraph (b). Benefits provided by this
1661	paragraph shall supersede any other distribution that may have
1662	been provided by the member's designation of beneficiary.
1663	2. If the surviving spouse of a member killed in the line
1664	of duty dies, the monthly payments which would have been payable
1665	to such surviving spouse had such surviving spouse lived shall
1666	be paid for the use and benefit of such member's child or
1667	children under 18 years of age and unmarried until the 18th
1668	birthday of the member's youngest child.
1669	3. If a member killed in the line of duty leaves no
1670	surviving spouse but is survived by a child or children under 18
1671	years of age, the benefits provided by subparagraph 1., normally
1672	payable to a surviving spouse, shall be paid for the use and
1673	benefit of such member's child or children under 18 years of age
1674	and unmarried until the 18th birthday of the member's youngest
1675	child.
1676	4. The surviving spouse of a member whose benefit
1677	terminated because of remarriage shall have the benefit
1678	reinstated beginning July 1, 1993, at an amount that would have
1679	been payable had the benefit not been terminated.
1680	(e) The surviving spouse or other dependent of any member,
1681	except a member who participated in the Deferred Retirement
1682	Option Program, whose employment is terminated by death shall,
1683	upon application to the administrator, be permitted to pay the
1684	required contributions for any service performed by the member
1685	which could have been claimed by the member at the time of his
1686	or her death. Such service shall be added to the creditable
1687	service of the member and shall be used in the calculation of
1688	any benefits which may be payable to the surviving spouse or
1689	other surviving dependent.
1690	(f) Notwithstanding any other provisions in this chapter
1691	to the contrary and upon application to the administrator, an
1692	eligible joint annuitant, of a member whose employment is
1693	terminated by death within 1 year of such member satisfying the
1694	service requirements for vesting and retirement eligibility,
1695	shall be permitted to purchase only the additional service
1696	credit necessary to vest and qualify for retirement benefits,
1697	not to exceed a total of 1 year of credit, by one or a
1698	combination of the following methods:
1699	1. Such eligible joint annuitant may use the deceased
1700	member's accumulated hours of annual, sick, and compensatory
1701	leave to purchase additional creditable service, on an hour by
1702	hour basis, provided that such deceased member's accumulated
1703	leave is sufficient to cover the additional months required. For
1704	each month of service credit needed prior to the final month,
1705	credit for the total number of work hours in that month must be
1706	purchased, using an equal number of the deceased member's
1707	accumulated leave hours. Service credit required for the final
1708	month in which the deceased member would have become vested
1709	shall be awarded upon the purchase of 1 hour of credit. Such
1710	eligible joint annuitant shall pay the contribution rate in
1711	effect for the period of time being claimed for the deceased
1712	member's class of membership, multiplied by such member's
1713	monthly salary at the time of death, plus 6.5 percent interest
1714	compounded annually. The accumulated leave payment used in the
1715	average final compensation shall not include that portion of the
1716	payment that represents any leave hours used in the purchase of
1717	such creditable service.
1718	2. Such eligible joint annuitant may purchase additional
1719	months of creditable service for any periods of out-of-state
1720	service as provided in s. 121.1115, and in-state service as
1721	provided in s. 121.1122, that the deceased member would have
1722	been eligible to purchase prior to his or her death.
1723
1724	Service purchased under this paragraph shall be added to the
1725	creditable service of the member and used to vest for retirement
1726	eligibility, and shall be used in the calculation of any
1727	benefits which may be payable to the eligible joint annuitant.
1728	Any benefits paid in accordance with this paragraph shall only
1729	be made prospectively.
1730	(g) Notwithstanding any other provisions in this chapter
1731	to the contrary, if any member who is vested dies and the
1732	surviving spouse receives a refund of the accumulated
1733	contributions made to the retirement trust fund, such spouse may
1734	pay to the Division of Retirement an amount equal to the sum of
1735	the amount of the deceased member's accumulated contributions
1736	previously refunded plus interest at 4 percent compounded
1737	annually each June 30 from the date of refund until July 1,
1738	1975, and 6.5 percent interest compounded annually thereafter,
1739	until full payment is made, and receive the monthly retirement
1740	benefit as provided in paragraph (b).
1741	(h) The designated beneficiary who is the surviving spouse
1742	or other dependent of a member whose employment is terminated by
1743	death subsequent to becoming vested, but prior to actual
1744	retirement, may elect to receive a deferred monthly benefit as
1745	if the member had lived and had elected a deferred monthly
1746	benefit, as provided in paragraph (5)(b), calculated on the
1747	basis of the average final compensation and creditable service
1748	of the member at his or her death and the age the member would
1749	have attained on the commencement date of the deferred benefit
1750	elected by the beneficiary, paid in accordance with option 3 of
1751	paragraph (6)(a).
1752	(8) DESIGNATION OF BENEFICIARIES.--
1753	(a) Each member may, on a form provided for that purpose,
1754	signed and filed with the division, designate a choice of one or
1755	more persons, named sequentially or jointly, as his or her
1756	beneficiary who shall receive the benefits, if any, which may be
1757	payable in the event of the member's death pursuant to the
1758	provisions of this chapter. If no beneficiary is named in the
1759	manner provided above, or if no beneficiary designated by the
1760	member survives the member, the beneficiary shall be the spouse
1761	of the deceased, if living. If the member's spouse is not alive
1762	at his or her death, the beneficiary shall be the living
1763	children of the member. If no children survive, the beneficiary
1764	shall be the member's father or mother, if living; otherwise,
1765	the beneficiary shall be the member's estate. The beneficiary
1766	most recently designated by a member on a form or letter filed
1767	with the division shall be the beneficiary entitled to any
1768	benefits payable at the time of the member's death, except that
1769	benefits shall be paid as provided in paragraph (7)(d) when
1770	death occurs in the line of duty. Notwithstanding any other
1771	provisions in this subsection to the contrary, for a member who
1772	dies prior to his or her effective date of retirement on or
1773	after January 1, 1999, the spouse at the time of death shall be
1774	the member's beneficiary unless such member designates a
1775	different beneficiary as provided herein subsequent to the
1776	member's most recent marriage.
1777	(b) A designated beneficiary of a retirement account for
1778	whom there is a monetary interest may disclaim his or her
1779	monetary interest as provided in s. 689.21, and in accordance
1780	with division rules governing such disclaimers. Such disclaimer
1781	must be filed within 24 months after the event that created the
1782	interest, that is, the death of the member or annuitant.
1783	(c) Notwithstanding the member's designation of benefits
1784	to be paid through a trust to a beneficiary that is a natural
1785	person as provided in s. 121.021(46), and notwithstanding the
1786	provisions of the trust, benefits shall be paid directly to the
1787	beneficiary if such person is no longer a minor or incapacitated
1788	as defined in s. 744.102(10) and (11).
1789	(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1790	(a) Any person who is retired under this chapter, except
1791	under the disability retirement provisions of subsection (4),
1792	may be employed by an employer that does not participate in a
1793	state-administered retirement system and may receive
1794	compensation from that employment without limiting or
1795	restricting in any way the retirement benefits payable to that
1796	person.
1797	(b)1. Any person who is retired under this chapter, except
1798	under the disability retirement provisions of subsection (4),
1799	may be reemployed by any private or public employer after
1800	retirement and receive retirement benefits and compensation from
1801	his or her employer without any limitations, except that a
1802	person may not receive both a salary from reemployment with any
1803	agency participating in the Florida Retirement System and
1804	retirement benefits under this chapter for a period of 12 months
1805	immediately subsequent to the date of retirement. However, a
1806	DROP participant shall continue employment and receive a salary
1807	during the period of participation in the Deferred Retirement
1808	Option Program, as provided in subsection (13).
1809	2. Any person to whom the limitation in subparagraph 1.
1810	applies who violates such reemployment limitation and who is
1811	reemployed with any agency participating in the Florida
1812	Retirement System before completion of the 12-month limitation
1813	period shall give timely notice of this fact in writing to the
1814	employer and to the division and shall have his or her
1815	retirement benefits suspended for the balance of the 12-month
1816	limitation period. Any person employed in violation of this
1817	paragraph and any employing agency which knowingly employs or
1818	appoints such person without notifying the Division of
1819	Retirement to suspend retirement benefits shall be jointly and
1820	severally liable for reimbursement to the retirement trust fund
1821	of any benefits paid during the reemployment limitation period.
1822	To avoid liability, such employing agency shall have a written
1823	statement from the retiree that he or she is not retired from a
1824	state-administered retirement system. Any retirement benefits
1825	received while reemployed during this reemployment limitation
1826	period shall be repaid to the retirement trust fund, and
1827	retirement benefits shall remain suspended until such repayment
1828	has been made. Benefits suspended beyond the reemployment
1829	limitation shall apply toward repayment of benefits received in
1830	violation of the reemployment limitation.
1831	3. A district school board may reemploy a retired member
1832	as a substitute or hourly teacher, education paraprofessional,
1833	transportation assistant, bus driver, or food service worker on
1834	a noncontractual basis after he or she has been retired for 1
1835	calendar month, in accordance with s. 121.021(39). Any retired
1836	member who is reemployed within 1 calendar month after
1837	retirement shall void his or her application for retirement
1838	benefits. District school boards reemploying such teachers,
1839	education paraprofessionals, transportation assistants, bus
1840	drivers, or food service workers are subject to the retirement
1841	contribution required by subparagraph 7. Reemployment of a
1842	retired member as a substitute or hourly teacher, education
1843	paraprofessional, transportation assistant, bus driver, or food
1844	service worker is limited to 780 hours during the first 12
1845	months of his or her retirement. Any retired member reemployed
1846	for more than 780 hours during his or her first 12 months of
1847	retirement shall give timely notice in writing to the employer
1848	and to the division of the date he or she will exceed the
1849	limitation. The division shall suspend his or her retirement
1850	benefits for the remainder of the first 12 months of retirement.
1851	Any person employed in violation of this subparagraph and any
1852	employing agency which knowingly employs or appoints such person
1853	without notifying the Division of Retirement to suspend
1854	retirement benefits shall be jointly and severally liable for
1855	reimbursement to the retirement trust fund of any benefits paid
1856	during the reemployment limitation period. To avoid liability,
1857	such employing agency shall have a written statement from the
1858	retiree that he or she is not retired from a state-administered
1859	retirement system. Any retirement benefits received by a retired
1860	member while reemployed in excess of 780 hours during the first
1861	12 months of retirement shall be repaid to the Retirement System
1862	Trust Fund, and his or her retirement benefits shall remain
1863	suspended until repayment is made. Benefits suspended beyond the
1864	end of the retired member's first 12 months of retirement shall
1865	apply toward repayment of benefits received in violation of the
1866	780-hour reemployment limitation.
1867	4. A community college board of trustees may reemploy a
1868	retired member as an adjunct instructor, that is, an instructor
1869	who is noncontractual and part-time, or as a participant in a
1870	phased retirement program within the Florida Community College
1871	System, after he or she has been retired for 1 calendar month,
1872	in accordance with s. 121.021(39). Any retired member who is
1873	reemployed within 1 calendar month after retirement shall void
1874	his or her application for retirement benefits. Boards of
1875	trustees reemploying such instructors are subject to the
1876	retirement contribution required in subparagraph 7. A retired
1877	member may be reemployed as an adjunct instructor for no more
1878	than 780 hours during the first 12 months of retirement. Any
1879	retired member reemployed for more than 780 hours during the
1880	first 12 months of retirement shall give timely notice in
1881	writing to the employer and to the division of the date he or
1882	she will exceed the limitation. The division shall suspend his
1883	or her retirement benefits for the remainder of the first 12
1884	months of retirement. Any person employed in violation of this
1885	subparagraph and any employing agency which knowingly employs or
1886	appoints such person without notifying the Division of
1887	Retirement to suspend retirement benefits shall be jointly and
1888	severally liable for reimbursement to the retirement trust fund
1889	of any benefits paid during the reemployment limitation period.
1890	To avoid liability, such employing agency shall have a written
1891	statement from the retiree that he or she is not retired from a
1892	state-administered retirement system. Any retirement benefits
1893	received by a retired member while reemployed in excess of 780
1894	hours during the first 12 months of retirement shall be repaid
1895	to the Retirement System Trust Fund, and retirement benefits
1896	shall remain suspended until repayment is made. Benefits
1897	suspended beyond the end of the retired member's first 12 months
1898	of retirement shall apply toward repayment of benefits received
1899	in violation of the 780-hour reemployment limitation.
1900	5. The State University System may reemploy a retired
1901	member as an adjunct faculty member or as a participant in a
1902	phased retirement program within the State University System
1903	after the retired member has been retired for 1 calendar month,
1904	in accordance with s. 121.021(39). Any retired member who is
1905	reemployed within 1 calendar month after retirement shall void
1906	his or her application for retirement benefits. The State
1907	University System is subject to the retired contribution
1908	required in subparagraph 7., as appropriate. A retired member
1909	may be reemployed as an adjunct faculty member or a participant
1910	in a phased retirement program for no more than 780 hours during
1911	the first 12 months of his or her retirement. Any retired member
1912	reemployed for more than 780 hours during the first 12 months of
1913	retirement shall give timely notice in writing to the employer
1914	and to the division of the date he or she will exceed the
1915	limitation. The division shall suspend his or her retirement
1916	benefits for the remainder of the first 12 months of retirement.
1917	Any person employed in violation of this subparagraph and any
1918	employing agency which knowingly employs or appoints such person
1919	without notifying the Division of Retirement to suspend
1920	retirement benefits shall be jointly and severally liable for
1921	reimbursement to the retirement trust fund of any benefits paid
1922	during the reemployment limitation period. To avoid liability,
1923	such employing agency shall have a written statement from the
1924	retiree that he or she is not retired from a state-administered
1925	retirement system. Any retirement benefits received by a retired
1926	member while reemployed in excess of 780 hours during the first
1927	12 months of retirement shall be repaid to the Retirement System
1928	Trust Fund, and retirement benefits shall remain suspended until
1929	repayment is made. Benefits suspended beyond the end of the
1930	retired member's first 12 months of retirement shall apply
1931	toward repayment of benefits received in violation of the 780-
1932	hour reemployment limitation.
1933	6. The Board of Trustees of the Florida School for the
1934	Deaf and the Blind may reemploy a retired member as a substitute
1935	teacher, substitute residential instructor, or substitute nurse
1936	on a noncontractual basis after he or she has been retired for 1
1937	calendar month, in accordance with s. 121.021(39). Any retired
1938	member who is reemployed within 1 calendar month after
1939	retirement shall void his or her application for retirement
1940	benefits. The Board of Trustees of the Florida School for the
1941	Deaf and the Blind reemploying such teachers, residential
1942	instructors, or nurses is subject to the retirement contribution
1943	required by subparagraph 7. Reemployment of a retired member as
1944	a substitute teacher, substitute residential instructor, or
1945	substitute nurse is limited to 780 hours during the first 12
1946	months of his or her retirement. Any retired member reemployed
1947	for more than 780 hours during the first 12 months of retirement
1948	shall give timely notice in writing to the employer and to the
1949	division of the date he or she will exceed the limitation. The
1950	division shall suspend his or her retirement benefits for the
1951	remainder of the first 12 months of retirement. Any person
1952	employed in violation of this subparagraph and any employing
1953	agency which knowingly employs or appoints such person without
1954	notifying the Division of Retirement to suspend retirement
1955	benefits shall be jointly and severally liable for reimbursement
1956	to the retirement trust fund of any benefits paid during the
1957	reemployment limitation period. To avoid liability, such
1958	employing agency shall have a written statement from the retiree
1959	that he or she is not retired from a state-administered
1960	retirement system. Any retirement benefits received by a retired
1961	member while reemployed in excess of 780 hours during the first
1962	12 months of retirement shall be repaid to the Retirement System
1963	Trust Fund, and his or her retirement benefits shall remain
1964	suspended until payment is made. Benefits suspended beyond the
1965	end of the retired member's first 12 months of retirement shall
1966	apply toward repayment of benefits received in violation of the
1967	780-hour reemployment limitation.
1968	7. The employment by an employer of any retiree or DROP
1969	participant of any state-administered retirement system shall
1970	have no effect on the average final compensation or years of
1971	creditable service of the retiree or DROP participant. Prior to
1972	July 1, 1991, upon employment of any person, other than an
1973	elected officer as provided in s. 121.053, who has been retired
1974	under any state-administered retirement program, the employer
1975	shall pay retirement contributions in an amount equal to the
1976	unfunded actuarial liability portion of the employer
1977	contribution which would be required for regular members of the
1978	Florida Retirement System. Effective July 1, 1991, contributions
1979	shall be made as provided in s. 121.122 for retirees with
1980	renewed membership or subsection (13) with respect to DROP
1981	participants.
1982	8. Any person who has previously retired and who is
1983	holding an elective public office or an appointment to an
1984	elective public office eligible for the Elected Officers' Class
1985	on or after July 1, 1990, shall be enrolled in the Florida
1986	Retirement System as provided in s. 121.053(1)(b) or, if holding
1987	an elective public office that does not qualify for the Elected
1988	Officers' Class on or after July 1, 1991, shall be enrolled in
1989	the Florida Retirement System as provided in s. 121.122, and
1990	shall continue to receive retirement benefits as well as
1991	compensation for the elected officer's service for as long as he
1992	or she remains in elective office. However, any retired member
1993	who served in an elective office prior to July 1, 1990,
1994	suspended his or her retirement benefit, and had his or her
1995	Florida Retirement System membership reinstated shall, upon
1996	retirement from such office, have his or her retirement benefit
1997	recalculated to include the additional service and compensation
1998	earned.
1999	9. Any person who is holding an elective public office
2000	which is covered by the Florida Retirement System and who is
2001	concurrently employed in nonelected covered employment may elect
2002	to retire while continuing employment in the elective public
2003	office, provided that he or she shall be required to terminate
2004	his or her nonelected covered employment. Any person who
2005	exercises this election shall receive his or her retirement
2006	benefits in addition to the compensation of the elective office
2007	without regard to the time limitations otherwise provided in
2008	this subsection. No person who seeks to exercise the provisions
2009	of this subparagraph, as the same existed prior to May 3, 1984,
2010	shall be deemed to be retired under those provisions, unless
2011	such person is eligible to retire under the provisions of this
2012	subparagraph, as amended by chapter 84-11, Laws of Florida.
2013	10. The limitations of this paragraph apply to
2014	reemployment in any capacity with an "employer" as defined in s.
2015	121.021(10), irrespective of the category of funds from which
2016	the person is compensated.
2017	11. An employing agency may reemploy a retired member as a
2018	firefighter or paramedic after the retired member has been
2019	retired for 1 calendar month, in accordance with s. 121.021(39).
2020	Any retired member who is reemployed within 1 calendar month
2021	after retirement shall void his or her application for
2022	retirement benefits. The employing agency reemploying such
2023	firefighter or paramedic is subject to the retired contribution
2024	required in subparagraph 8. Reemployment of a retired
2025	firefighter or paramedic is limited to no more than 780 hours
2026	during the first 12 months of his or her retirement. Any retired
2027	member reemployed for more than 780 hours during the first 12
2028	months of retirement shall give timely notice in writing to the
2029	employer and to the division of the date he or she will exceed
2030	the limitation. The division shall suspend his or her retirement
2031	benefits for the remainder of the first 12 months of retirement.
2032	Any person employed in violation of this subparagraph and any
2033	employing agency which knowingly employs or appoints such person
2034	without notifying the Division of Retirement to suspend
2035	retirement benefits shall be jointly and severally liable for
2036	reimbursement to the Retirement System Trust Fund of any
2037	benefits paid during the reemployment limitation period. To
2038	avoid liability, such employing agency shall have a written
2039	statement from the retiree that he or she is not retired from a
2040	state-administered retirement system. Any retirement benefits
2041	received by a retired member while reemployed in excess of 780
2042	hours during the first 12 months of retirement shall be repaid
2043	to the Retirement System Trust Fund, and retirement benefits
2044	shall remain suspended until repayment is made. Benefits
2045	suspended beyond the end of the retired member's first 12 months
2046	of retirement shall apply toward repayment of benefits received
2047	in violation of the 780-hour reemployment limitation.
2048	(10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the
2049	intent of the Legislature that future benefit increases enacted
2050	into law in this chapter shall be financed concurrently by
2051	increased contributions or other adequate funding, and such
2052	funding shall be based on sound actuarial data as developed by
2053	the actuary or state retirement actuary, as provided in ss.
2054	121.021(6) and 121.192.
2055	(11) A member who becomes eligible to retire and has
2056	accumulated the maximum benefit of 100 percent of average final
2057	compensation may continue in active service, and, if upon the
2058	member's retirement the member elects to receive a retirement
2059	compensation pursuant to subsection (2), subsection (6), or
2060	subsection (7), the actuarial equivalent percentage factor
2061	applicable to the age of such member at the time the member
2062	reached the maximum benefit and to the age, at that time, of the
2063	member's spouse shall determine the amount of benefits to be
2064	paid.
2065	(12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR
2066	BENEFITS.--Notwithstanding any provision of this chapter to the
2067	contrary, for members with an effective date of retirement, or
2068	date of death if prior to retirement, on or after January 1,
2069	1996, the named joint annuitant, as defined in s.
2070	121.021(28)(b), who is eligible to receive benefits under
2071	subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive
2072	the maximum monthly retirement benefit that would have been
2073	payable to the member under subparagraph (6)(a)1.; however,
2074	payment of such benefit shall cease the month the joint
2075	annuitant attains age 25 unless such joint annuitant is disabled
2076	and incapable of self-support, in which case, benefits shall
2077	cease when the joint annuitant is no longer disabled. The
2078	administrator may require proof of disability or continued
2079	disability in the same manner as is provided for a member
2080	seeking or receiving a disability retirement benefit under
2081	subsection (4).
2082	(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
2083	subject to the provisions of this section, the Deferred
2084	Retirement Option Program, hereinafter referred to as the DROP,
2085	is a program under which an eligible member of the Florida
2086	Retirement System may elect to participate, deferring receipt of
2087	retirement benefits while continuing employment with his or her
2088	Florida Retirement System employer. The deferred monthly
2089	benefits shall accrue in the System Trust Fund on behalf of the
2090	participant, plus interest compounded monthly, for the specified
2091	period of the DROP participation, as provided in paragraph (c).
2092	Upon termination of employment, the participant shall receive
2093	the total DROP benefits and begin to receive the previously
2094	determined normal retirement benefits. Participation in the DROP
2095	does not guarantee employment for the specified period of DROP.
2096	(a) Eligibility of member to participate in the DROP.--All
2097	active Florida Retirement System members in a regularly
2098	established position, and all active members of either the
2099	Teachers' Retirement System established in chapter 238 or the
2100	State and County Officers' and Employees' Retirement System
2101	established in chapter 122 which systems are consolidated within
2102	the Florida Retirement System under s. 121.011, are eligible to
2103	elect participation in the DROP provided that:
2104	1. The member is not a renewed member of the Florida
2105	Retirement System under s. 121.122, or a member of the State
2106	Community College System Optional Retirement Program under s.
2107	121.051, the Senior Management Service Optional Annuity Program
2108	under s. 121.055, or the optional retirement program for the
2109	State University System under s. 121.35.
2110	2. Except as provided in subparagraph 6., election to
2111	participate is made within 12 months immediately following the
2112	date on which the member first reaches normal retirement date,
2113	or, for a member who reaches normal retirement date based on
2114	service before he or she reaches age 62, or age 55 for Special
2115	Risk Class members, election to participate may be deferred to
2116	the 12 months immediately following the date the member attains
2117	57, or age 52 for Special Risk Class members. For a member who
2118	first reached normal retirement date or the deferred eligibility
2119	date described above prior to the effective date of this
2120	section, election to participate shall be made within 12 months
2121	after the effective date of this section. A member who fails to
2122	make an election within such 12-month limitation period shall
2123	forfeit all rights to participate in the DROP. The member shall
2124	advise his or her employer and the division in writing of the
2125	date on which the DROP shall begin. Such beginning date may be
2126	subsequent to the 12-month election period, but must be within
2127	the 60-month limitation period as provided in subparagraph (b)1.
2128	When establishing eligibility of the member to participate in
2129	the DROP for the 60-month maximum participation period, the
2130	member may elect to include or exclude any optional service
2131	credit purchased by the member from the total service used to
2132	establish the normal retirement date. A member with dual normal
2133	retirement dates shall be eligible to elect to participate in
2134	DROP within 12 months after attaining normal retirement date in
2135	either class.
2136	3. The employer of a member electing to participate in the
2137	DROP, or employers if dually employed, shall acknowledge in
2138	writing to the division the date the member's participation in
2139	the DROP begins and the date the member's employment and DROP
2140	participation will terminate.
2141	4. Simultaneous employment of a participant by additional
2142	Florida Retirement System employers subsequent to the
2143	commencement of participation in the DROP shall be permissible
2144	provided such employers acknowledge in writing a DROP
2145	termination date no later than the participant's existing
2146	termination date or the 60-month limitation period as provided
2147	in subparagraph (b)1.
2148	5. A DROP participant may change employers while
2149	participating in the DROP, subject to the following:
2150	a. A change of employment must take place without a break
2151	in service so that the member receives salary for each month of
2152	continuous DROP participation. If a member receives no salary
2153	during a month, DROP participation shall cease unless the
2154	employer verifies a continuation of the employment relationship
2155	for such participant pursuant to s. 121.021(39)(b).
2156	b. Such participant and new employer shall notify the
2157	division on forms required by the division as to the identity of
2158	the new employer.
2159	c. The new employer shall acknowledge, in writing, the
2160	participant's DROP termination date, which may be extended but
2161	not beyond the original 60-month period provided in subparagraph
2162	(b)1., shall acknowledge liability for any additional retirement
2163	contributions and interest required if the participant fails to
2164	timely terminate employment, and shall be subject to the
2165	adjustment required in sub-subparagraph (c)5.d.
2166	6. Effective July 1, 2001, for instructional personnel as
2167	defined in s. 1012.01(2), election to participate in the DROP
2168	shall be made at any time following the date on which the member
2169	first reaches normal retirement date. The member shall advise
2170	his or her employer and the division in writing of the date on
2171	which the Deferred Retirement Option Program shall begin. When
2172	establishing eligibility of the member to participate in the
2173	DROP for the 60-month maximum participation period, as provided
2174	in subparagraph (b)1., the member may elect to include or
2175	exclude any optional service credit purchased by the member from
2176	the total service used to establish the normal retirement date.
2177	A member with dual normal retirement dates shall be eligible to
2178	elect to participate in either class.
2179	(b) Participation in the DROP.--
2180	1. An eligible member may elect to participate in the DROP
2181	for a period not to exceed a maximum of 60 calendar months
2182	immediately following the date on which the member first reaches
2183	his or her normal retirement date or the date to which he or she
2184	is eligible to defer his or her election to participate as
2185	provided in subparagraph (a)2. However, a member who has reached
2186	normal retirement date prior to the effective date of the DROP
2187	shall be eligible to participate in the DROP for a period of
2188	time not to exceed 60 calendar months immediately following the
2189	effective date of the DROP, except a member of the Special Risk
2190	Class who has reached normal retirement date prior to the
2191	effective date of the DROP and whose total accrued value exceeds
2192	75 percent of average final compensation as of his or her
2193	effective date of retirement shall be eligible to participate in
2194	the DROP for no more than 36 calendar months immediately
2195	following the effective date of the DROP.
2196	2. Upon deciding to participate in the DROP, the member
2197	shall submit, on forms required by the division:
2198	a. A written election to participate in the DROP;
2199	b. Selection of the DROP participation and termination
2200	dates, which satisfy the limitations stated in paragraph (a) and
2201	subparagraph 1. Such termination date shall be in a binding
2202	letter of resignation with the employer, establishing a deferred
2203	termination date. The member may change the termination date
2204	within the limitations of subparagraph 1., but only with the
2205	written approval of his or her employer;
2206	c. A properly completed DROP application for service
2207	retirement as provided in this section; and
2208	d. Any other information required by the division.
2209	3. The DROP participant shall be a retiree under the
2210	Florida Retirement System for all purposes, except for paragraph
2211	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
2212	and 121.122. However, participation in the DROP does not alter
2213	the participant's employment status and such employee shall not
2214	be deemed retired from employment until his or her deferred
2215	resignation is effective and termination occurs as provided in
2216	s. 121.021(39).
2217	4. Elected officers shall be eligible to participate in
2218	the DROP subject to the following:
2219	a. An elected officer who reaches normal retirement date
2220	during a term of office may defer the election to participate in
2221	the DROP until the next succeeding term in that office. Such
2222	elected officer who exercises this option may participate in the
2223	DROP for up to 60 calendar months or a period of no longer than
2224	such succeeding term of office, whichever is less.
2225	b. An elected or a nonelected participant may run for a
2226	term of office while participating in DROP and, if elected,
2227	extend the DROP termination date accordingly, except, however,
2228	if such additional term of office exceeds the 60-month
2229	limitation established in subparagraph 1., and the officer does
2230	not resign from office within such 60-month limitation, the
2231	retirement and the participant' s DROP shall be null and void as
2232	provided in sub-subparagraph (c)5.d.
2233	c. An elected officer who is dually employed and elects to
2234	participate in DROP shall be required to satisfy the definition
2235	of termination within the 60-month limitation period as provided
2236	in subparagraph 1. for the nonelected position and may continue
2237	employment as an elected officer as provided in s. 121.053. The
2238	elected officer will be enrolled as a renewed member in the
2239	Elected Officers' Class or the Regular Class, as provided in ss.
2240	121.053 and 121.22, on the first day of the month after
2241	termination of employment in the nonelected position and
2242	termination of DROP. Distribution of the DROP benefits shall be
2243	made as provided in paragraph (c).
2244	(c) Benefits payable under the DROP.--
2245	1. Effective with the date of DROP participation, the
2246	member's initial normal monthly benefit, including creditable
2247	service, optional form of payment, and average final
2248	compensation, and the effective date of retirement shall be
2249	fixed. The beneficiary established under the Florida Retirement
2250	System shall be the beneficiary eligible to receive any DROP
2251	benefits payable if the DROP participant dies prior to the
2252	completion of the period of DROP participation. In the event a
2253	joint annuitant predeceases the member, the member may name a
2254	beneficiary to receive accumulated DROP benefits payable. Such
2255	retirement benefit, the annual cost of living adjustments
2256	provided in s. 121.101, and interest shall accrue monthly in the
2257	System Trust Fund. Such interest shall accrue at an effective
2258	annual rate of 6.5 percent compounded monthly, on the prior
2259	month's accumulated ending balance, up to the month of
2260	termination or death.
2261	2. Each employee who elects to participate in the DROP
2262	shall be allowed to elect to receive a lump-sum payment for
2263	accrued annual leave earned in accordance with agency policy
2264	upon beginning participation in the DROP. Such accumulated leave
2265	payment certified to the division upon commencement of DROP
2266	shall be included in the calculation of the member's average
2267	final compensation. The employee electing such lump-sum payment
2268	upon beginning participation in DROP will not be eligible to
2269	receive a second lump-sum payment upon termination, except to
2270	the extent the employee has earned additional annual leave which
2271	combined with the original payment does not exceed the maximum
2272	lump-sum payment allowed by the employing agency's policy or
2273	rules. Such early lump-sum payment shall be based on the hourly
2274	wage of the employee at the time he or she begins participation
2275	in the DROP. If the member elects to wait and receive such lump-
2276	sum payment upon termination of DROP and termination of
2277	employment with the employer, any accumulated leave payment made
2278	at that time cannot be included in the member's retirement
2279	benefit, which was determined and fixed by law when the employee
2280	elected to participate in the DROP.
2281	3. The effective date of DROP participation and the
2282	effective date of retirement of a DROP participant shall be the
2283	first day of the month selected by the member to begin
2284	participation in the DROP, provided such date is properly
2285	established, with the written confirmation of the employer, and
2286	the approval of the division, on forms required by the division.
2287	4. Normal retirement benefits and interest thereon shall
2288	continue to accrue in the DROP until the established termination
2289	date of the DROP, or until the participant terminates employment
2290	or dies prior to such date. Although individual DROP accounts
2291	shall not be established, a separate accounting of each
2292	participant's accrued benefits under the DROP shall be
2293	calculated and provided to participants.
2294	5. At the conclusion of the participant's DROP, the
2295	division shall distribute the participant's total accumulated
2296	DROP benefits, subject to the following provisions:
2297	a. The division shall receive verification by the
2298	participant's employer or employers that such participant has
2299	terminated employment as provided in s. 121.021(39)(b).
2300	b. The terminated DROP participant or, if deceased, such
2301	participant's named beneficiary, shall elect on forms provided
2302	by the division to receive payment of the DROP benefits in
2303	accordance with one of the options listed below. For a
2304	participant or beneficiary who fails to elect a method of
2305	payment within 60 days of termination of the DROP, the division
2306	will pay a lump sum as provided in sub-sub-subparagraph (I).
2307	(I) Lump sum.--All accrued DROP benefits, plus interest,
2308	less withholding taxes remitted to the Internal Revenue Service,
2309	shall be paid to the DROP participant or surviving beneficiary.
2310	(II) Direct rollover.--All accrued DROP benefits, plus
2311	interest, shall be paid from the DROP directly to the custodian
2312	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
2313	the Internal Revenue Code. However, in the case of an eligible
2314	rollover distribution to the surviving spouse of a deceased
2315	participant, an eligible retirement plan is an individual
2316	retirement account or an individual retirement annuity as
2317	described in s. 402(c)(9) of the Internal Revenue Code.
2318	(III) Partial lump sum.--A portion of the accrued DROP
2319	benefits shall be paid to the DROP participant or surviving
2320	spouse, less withholding taxes remitted to the Internal Revenue
2321	Service, and the remaining DROP benefits shall be transferred
2322	directly to the custodian of an eligible retirement plan as
2323	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
2324	However, in the case of an eligible rollover distribution to the
2325	surviving spouse of a deceased participant, an eligible
2326	retirement plan is an individual retirement account or an
2327	individual retirement annuity as described in s. 402(c)(9) of
2328	the Internal Revenue Code. The proportions shall be specified by
2329	the DROP participant or surviving beneficiary.
2330	c. The form of payment selected by the DROP participant or
2331	surviving beneficiary complies with the minimum distribution
2332	requirements of the Internal Revenue Code.
2333	d. A DROP participant who fails to terminate employment as
2334	defined in s. 121.021(39)(b) shall be deemed not to be retired,
2335	and the DROP election shall be null and void. Florida Retirement
2336	System membership shall be reestablished retroactively to the
2337	date of the commencement of the DROP, and each employer with
2338	whom the participant continues employment shall be required to
2339	pay to the System Trust Fund the difference between the DROP
2340	contributions paid in paragraph (i) and the contributions
2341	required for the applicable Florida Retirement System class of
2342	membership during the period the member participated in the
2343	DROP, plus 6.5 percent interest compounded annually.
2344	6. The accrued benefits of any DROP participant, and any
2345	contributions accumulated under such program, shall not be
2346	subject to assignment, execution, attachment, or to any legal
2347	process whatsoever, except for qualified domestic relations
2348	orders by a court of competent jurisdiction, income deduction
2349	orders as provided in s. 61.1301, and federal income tax levies.
2350	7. DROP participants shall not be eligible for disability
2351	retirement benefits as provided in subsection (4).
2352	(d) Death benefits under the DROP.--
2353	1. Upon the death of a DROP participant, the named
2354	beneficiary shall be entitled to apply for and receive the
2355	accrued benefits in the DROP as provided in sub-subparagraph
2356	(c)5.b.
2357	2. The normal retirement benefit accrued to the DROP
2358	during the month of a participant's death shall be the final
2359	monthly benefit credited for such DROP participant.
2360	3. Eligibility to participate in the DROP terminates upon
2361	death of the participant. If the participant dies on or after
2362	the effective date of enrollment in the DROP, but prior to the
2363	first monthly benefit being credited to the DROP, Florida
2364	Retirement System benefits shall be paid in accordance with
2365	subparagraph (7)(c)1. or subparagraph 2.
2366	4. A DROP participants' survivors shall not be eligible to
2367	receive Florida Retirement System death benefits as provided in
2368	paragraph (7)(d).
2369	(e) Cost-of-living adjustment.--On each July 1, the
2370	participants' normal retirement benefit shall be increased as
2371	provided in s. 121.101.
2372	(f) Retiree health insurance subsidy.--DROP participants
2373	are not eligible to apply for the retiree health insurance
2374	subsidy payments as provided in s. 112.363 until such
2375	participants have terminated employment and participation in the
2376	DROP.
2377	(g) Renewed membership.--DROP participants shall not be
2378	eligible for renewed membership in the Florida Retirement System
2379	under ss. 121.053 and 121.122 until termination of employment is
2380	effectuated as provided in s. 121.021(39)(b).
2381	(h) Employment limitation after DROP participation.--Upon
2382	satisfying the definition of termination of employment as
2383	provided in s. 121.021(39)(b), DROP participants shall be
2384	subject to such reemployment limitations as other retirees.
2385	Reemployment restrictions applicable to retirees as provided in
2386	subsection (9) shall not apply to DROP participants until their
2387	employment and participation in the DROP are terminated.
2388	(i) Contributions.--
2389	1. All employers paying the salary of a DROP participant
2390	filling a regularly established position shall contribute 8.0
2391	percent of such participant's gross compensation for the period
2392	of July 1, 2002, through June 30, 2003, and 11.56 percent of
2393	such compensation thereafter, which shall constitute the entire
2394	employer DROP contribution with respect to such participant.
2395	Such contributions, payable to the System Trust Fund in the same
2396	manner as required in s. 121.071, shall be made as appropriate
2397	for each pay period and are in addition to contributions
2398	required for social security and the Retiree Health Insurance
2399	Subsidy Trust Fund. Such employer, social security, and health
2400	insurance subsidy contributions are not included in the DROP.
2401	2. The employer shall, in addition to subparagraph 1.,
2402	also withhold one-half of the entire social security
2403	contribution required for the participant. Contributions for
2404	social security by each participant and each employer, in the
2405	amount required for social security coverage as now or hereafter
2406	provided by the federal Social Security Act, shall be in
2407	addition to contributions specified in subparagraph 1.
2408	3. All employers paying the salary of a DROP participant
2409	filling a regularly established position shall contribute the
2410	percent of such participant's gross compensation required in s.
2411	121.071(4), which shall constitute the employer's health
2412	insurance subsidy contribution with respect to such participant.
2413	Such contributions shall be deposited by the administrator in
2414	the Retiree Health Insurance Subsidy Trust Fund.
2415	(j) Forfeiture of retirement benefits.--Nothing in this
2416	section shall be construed to remove DROP participants from the
2417	scope of s. 8(d), Art. II of the State Constitution, s.
2418	112.3173, and paragraph (5)(f). DROP participants who commit a
2419	specified felony offense while employed will be subject to
2420	forfeiture of all retirement benefits, including DROP benefits,
2421	pursuant to those provisions of law.
2422	(k) Administration of program.--The division shall make
2423	such rules as are necessary for the effective and efficient
2424	administration of this subsection. The division shall not be
2425	required to advise members of the federal tax consequences of an
2426	election related to the DROP but may advise members to seek
2427	independent advice.
2428	(14) PAYMENT OF BENEFITS.--This subsection applies to the
2429	payment of benefits to a payee (retiree or beneficiary) under
2430	the Florida Retirement System:
2431	(a) Federal income tax shall be withheld in accordance
2432	with federal law, unless the payee elects otherwise on Form W-
2433	4P. The division shall prepare and distribute to each recipient
2434	of monthly retirement benefits an appropriate income tax form
2435	that reflects the recipient's income and federal income tax
2436	withheld for the calendar year just ended.
2437	(b) Subject to approval by the division in accordance with
2438	rule 60S-4.015, Florida Administrative Code, a payee receiving
2439	retirement benefits under the Florida Retirement System may also
2440	have the following payments deducted from his or her monthly
2441	benefit:
2442	1. Premiums for life and health-related insurance policies
2443	from approved companies.
2444	2. Life insurance premiums for the State Group Life
2445	Insurance Plan, if authorized in writing by the payee and by the
2446	Department of Management Services.
2447	3. Repayment of overpayments from the Florida Retirement
2448	System Trust Fund, the State Employees' Health Insurance Trust
2449	Fund, or the State Employees' Life Insurance Trust Fund, upon
2450	notification of the payee.
2451	4. Payments to an alternate payee for alimony, child
2452	support, or division of marital assets pursuant to a qualified
2453	domestic relations order under s. 222.21 or an income deduction
2454	order under s. 61.1301.
2455	5. Payments to the Internal Revenue Service for federal
2456	income tax levies, upon notification of the division by the
2457	Internal Revenue Service.
2458	(c) A payee shall notify the division of any change in his
2459	or her address. The division may suspend benefit payments to a
2460	payee if correspondence sent to the payee's mailing address is
2461	returned due to an incorrect address. Benefit payments shall be
2462	resumed upon notification to the division of the payee's new
2463	address.
2464	(d) A payee whose retirement benefits are reduced by the
2465	application of maximum benefit limits under s. 415(b) of the
2466	Internal Revenue Code, as specified in s. 121.30(5), shall have
2467	the portion of his or her calculated benefit in the Florida
2468	Retirement System defined benefit plan which exceeds such
2469	federal limitation paid through the Florida Retirement System
2470	Preservation of Benefits Plan, as provided in s. 121.1001.
2471	(e) No benefit may be reduced for the purpose of
2472	preserving the member's eligibility for a federal program.
2473	(f) The division shall adopt rules establishing procedures
2474	for determining that the persons to whom benefits are being paid
2475	are still living. The division shall suspend the benefits being
2476	paid to any payee when it is unable to contact such payee and to
2477	confirm that he or she is still living.
2478	Section 25. Subsection (1) of section 121.095, Florida
2479	Statutes, is amended to read:
2480	121.095 Florida Retirement System Preservation of Benefits
2481	Plan Trust Fund.--
2482	(1) The Florida Retirement System Preservation of Benefits
2483	Plan Trust Fund is created in the State Treasury to be
2484	administered by the State Board of Administrationwithin the
2485	Division of Retirement.
2486	(a) Funds to be credited to the trust fund shall consist
2487	of Florida Retirement System monthly retirement contributions
2488	required to meet the requirements for payment of restored
2489	benefits under the Florida Retirement System Preservation of
2490	Benefits Plan, as specified in s. 121.1001.
2491	(b) The trust fund shall be maintained and utilized solely
2492	for the purpose of providing benefits under the Preservation of
2493	Benefits Plan, as specified in s. 121.1001.
2494	(c) The trust fund shall be separate and apart from the
2495	Florida Retirement System Trust Fund. The trust fund moneys and
2496	assets shall not be commingled with nor ever receive a transfer
2497	of moneys and assets from the remainder of the Florida
2498	Retirement System, including, but not limited to, the Florida
2499	Retirement System Trust Fund, or any other qualified retirement
2500	plan administered by the Division of Retirement.
2501	(d) The trust fund shall be funded on a month-to-month
2502	basis. Trust fund assets shall not be accumulated to pay future
2503	benefits.
2504	Section 26. Paragraph (b) of subsection (7) of section
2505	121.101, Florida Statutes, is amended to read:
2506	121.101 Cost-of-living adjustment of benefits.--
2507	(7) The purpose of this subsection is to establish a
2508	supplemental cost-of-living adjustment for certain retirees and
2509	beneficiaries who receive monthly retirement benefits under the
2510	provisions of this chapter and the existing systems consolidated
2511	therein, s. 112.05 for certain state officers and employees, and
2512	s. 238.171 for certain elderly incapacitated teachers.
2513	(b) Application for the supplemental cost-of-living
2514	adjustment provided by this subsection shall include
2515	certification by the retiree or annuitant that he or she is not
2516	receiving, and is not eligible to receive, social security
2517	benefits and shall include written authorization for the
2518	divisiondepartmentto have access to information from the
2519	Social Security Administration concerning his or her entitlement
2520	to, or eligibility for, social security benefits. Such
2521	supplemental cost-of-living adjustment shall not be paid unless
2522	and until the application requirements of this paragraph are
2523	met.
2524	Section 27. Paragraph (e) of subsection (2) of section
2525	121.111, Florida Statutes, is amended to read:
2526	121.111 Credit for military service.--
2527	(2) Any member whose initial date of employment is before
2528	January 1, 1987, who has military service as defined in s.
2529	121.021(20)(b), and who does not claim such service under
2530	subsection (1) may receive creditable service for such military
2531	service if:
2532	(e) Any member claiming credit under this subsection must
2533	certify on the form prescribed by the divisiondepartmentthat
2534	credit for such service has not and will not be claimed for
2535	retirement purposes under any other federal, state, or local
2536	retirement or pension system where "length of service" is a
2537	factor in determining the amount of compensation received,
2538	except where credit for such service has been granted in a
2539	pension system providing retired pay for nonregular service as
2540	provided in paragraph(d). If the member dies prior to
2541	retirement, the member's beneficiary must make the required
2542	certification before credit may be claimed. If such
2543	certification is not made by the member or the member's
2544	beneficiary, credit for wartime military service shall not be
2545	allowed.
2546	Section 28. Section 121.133, Florida Statutes, is amended
2547	to read:
2548	121.133 Cancellation of uncashed
2549	warrants.--Notwithstanding the provisions of s. 17.26 or s.
2550	717.123 to the contrary, effective July 1, 1998, if any state
2551	warrant issued by the Comptroller for the payment of retirement
2552	benefits from the Florida Retirement System Trust Fund, or any
2553	other pension trust fund administered by the division
2554	department, is not presented for payment within 1 year after the
2555	last day of the month in which it was originally issued, the
2556	Comptroller shall cancel the benefit warrant and credit the
2557	amount of the warrant to the Florida Retirement System Trust
2558	Fund or other pension trust fund administered by the division
2559	department, as appropriate. The divisiondepartmentmay provide
2560	for issuance of a replacement warrant when deemed appropriate.
2561	Section 29. Section 121.135, Florida Statutes, is amended
2562	to read:
2563	121.135 Annual report to Legislature concerning the
2564	Florida Retirement Systemstate-administered retirement
2565	systems.--The boarddepartmentshall make to each regular
2566	session of the Legislature a written report on the operation and
2567	condition of the Florida Retirement Systemthe state-
2568	administered retirement systems.
2569	Section 30. Section 121.136, Florida Statutes, is amended
2570	to read:
2571	121.136 Annual benefit statement to members.--Beginning
2572	January 1, 1993, and each January thereafter, the board
2573	departmentshall provide each active member of the Florida
2574	Retirement System with 5 or more years of creditable service an
2575	annual statement of benefits. Such statement should provide the
2576	member with basic data about the member's retirement account.
2577	Minimally, it shall include the member's retirement plan, the
2578	amount of funds on deposit in the retirement account, and an
2579	estimate of retirement benefits.
2580	Section 31. Section 121.1905, Florida Statutes, is amended
2581	to read:
2582	121.1905 Division of Retirement; missioncreation.--
2583	(1) There is created the Division of Retirement within the
2584	Department of Management Services.
2585	(2)The mission of the Division of Retirement is to
2586	provide quality and cost-effective retirement services as
2587	measured by member satisfaction and by comparison with
2588	administrative costs of comparable retirement systems.
2589	Section 32. Section 121.192, Florida Statutes, is amended
2590	to read:
2591	121.192 State retirement actuary.--The divisiondepartment
2592	may employ an actuary. Such actuary shall, together with such
2593	other duties as the administrator assignssecretary may assign,
2594	be responsible for:
2595	(1) Advising the administratorsecretaryon actuarial
2596	matters of the state retirement systems.
2597	(2) Making periodic valuations of the retirement systems.
2598	(3) Providing actuarial analyses to the Legislature
2599	concerning proposed changes in the retirement systems.
2600	(4) Assisting the administratorsecretaryin developing a
2601	sound and modern retirement system.
2602	Section 33. Section 121.193, Florida Statutes, is amended
2603	to read:
2604	121.193 External compliance audits.--
2605	(1) The divisiondepartmentshall conduct audits of the
2606	payroll and personnel records of participating agencies. These
2607	audits shall be made to determine the accuracy of reports
2608	submitted to the divisiondepartmentand to assess the degree of
2609	compliance with applicable statutes, rules, and coverage
2610	agreements. Audits shall be scheduled on a regular basis, as the
2611	result of concerns known to exist at an agency, or as a followup
2612	to ensure agency action was taken to correct deficiencies found
2613	in an earlier audit.
2614	(2) Upon request, participating agencies shall furnish the
2615	divisiondepartment with information and documents that the
2616	divisiondepartment requires to conduct the audit. The division
2617	departmentmay prescribe by rule the documents that may be
2618	requested.
2619	(3) The divisiondepartmentshall review the agency's
2620	operations concerning retirement and social security coverage.
2621	Preliminary findings shall be discussed with agency personnel at
2622	the close of the audit. An audit report of findings and
2623	recommendations shall be submitted to divisiondepartment
2624	management and an audit summary letter shall be submitted to the
2625	agency noting any concerns and necessary corrective action.
2626	Section 34. Subsection (1) of section 121.22, Florida
2627	Statutes, is amended to read:
2628	121.22 State Retirement Commission; creation; membership;
2629	compensation.--
2630	(1) There is created within the Division of Retirement
2631	Department of Management Servicesa State Retirement Commission
2632	composed of three members: One member who is retired under a
2633	state-supported retirement system administered by the division
2634	department; one member who is an active member of a state-
2635	supported retirement system that is administered by the division
2636	department; and one member who is neither a retiree,
2637	beneficiary, or member of a state-supported retirement system
2638	administered by the divisiondepartment. Each member shall have
2639	a different occupational background from the other members.
2640	Section 35. Subsection (1) of section 121.23, Florida
2641	Statutes, is amended to read:
2642	121.23 Disability retirement and special risk membership
2643	applications; Retirement Commission; powers and duties; judicial
2644	review.--The provisions of this section apply to all proceedings
2645	in which the administrator has made a written final decision on
2646	the merits respecting applications for disability retirement,
2647	reexamination of retired members receiving disability benefits,
2648	applications for special risk membership, and reexamination of
2649	special risk members in the Florida Retirement System. The
2650	jurisdiction of the State Retirement Commission under this
2651	section shall be limited to written final decisions of the
2652	administrator on the merits.
2653	(1) In accordance with the rules of procedure adopted by
2654	the divisionDepartment of Management Services, the
2655	administrator shall:
2656	(a) Give reasonable notice of his or her proposed action,
2657	or decision to refuse action, together with a summary of the
2658	factual, legal, and policy grounds therefor.
2659	(b) Give affected members, or their counsel, an
2660	opportunity to present to the division written evidence in
2661	opposition to the proposed action or refusal to act or a written
2662	statement challenging the grounds upon which the administrator
2663	has chosen to justify his or her action or inaction.
2664	(c) If the objections of the member are overruled, provide
2665	a written explanation within 21 days.
2666	Section 36. Subsections (2), (3), and (4) of section
2667	121.24, Florida Statutes, are amended to read:
2668	121.24 Conduct of commission business; legal and other
2669	assistance; compensation.--
2670	(2) Legal counsel for the commission may be provided by
2671	the Department of Legal Affairs or by the divisionDepartment of
2672	Management Services, with the concurrence of the commission, and
2673	shall be paid by the divisionDepartment of Management Services
2674	from the appropriate funds.
2675	(3) The divisionDepartment of Management Servicesshall
2676	provide timely and appropriate training for newly appointed
2677	members of the commission. Such training shall be designed to
2678	acquaint new members of the commission with the duties and
2679	responsibilities of the commission.
2680	(4) The divisionDepartment of Management Servicesshall
2681	furnish administrative and secretarial assistance to the
2682	commission and shall provide a place where the commission may
2683	hold its meetings.
2684	Section 37. Subsection (9) of section 121.30, Florida
2685	Statutes, is amended to read:
2686	121.30 Statements of purpose and intent and other
2687	provisions required for qualification under the Internal Revenue
2688	Code of the United States.--Any other provisions in this chapter
2689	to the contrary notwithstanding, it is specifically provided
2690	that:
2691	(9) The divisiondepartmentmay adopt any rule necessary
2692	to accomplish the purpose of the section which is not
2693	inconsistent with this chapter.
2694	Section 38. Paragraph (c) of subsection (2), paragraphs
2695	(c) and (e) of subsection (3), paragraphs (a), (b), and (c) of
2696	subsection (4), and subsection (6) of section 121.35, Florida
2697	Statutes, are amended to read:
2698	121.35 Optional retirement program for the State
2699	University System.--
2700	(2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.--
2701	(c) For purposes of this section, the State Board of
2702	AdministrationDepartment of Management Servicesis referred to
2703	as the "boarddepartment."
2704	(3) ELECTION OF OPTIONAL PROGRAM.--
2705	(c) Any employee who becomes eligible to participate in
2706	the optional retirement program on or after January 1, 1993,
2707	shall be a compulsory participant of the program unless such
2708	employee elects membership in the Florida Retirement System.
2709	Such election shall be made in writing and filed with the
2710	personnel officer of the employer. Any eligible employee who
2711	fails to make such election within the prescribed time period
2712	shall be deemed to have elected to participate in the optional
2713	retirement program.
2714	1. Any employee whose optional retirement program
2715	eligibility results from initial employment shall be enrolled in
2716	the program at the commencement of employment. If, within 90
2717	days after commencement of employment, the employee elects
2718	membership in the Florida Retirement System, such membership
2719	shall be effective retroactive to the date of commencement of
2720	employment.
2721	2. Any employee whose optional retirement program
2722	eligibility results from a change in status due to the
2723	subsequent designation of the employee's position as one of
2724	those specified in paragraph (2)(a) or due to the employee's
2725	appointment, promotion, transfer, or reclassification to a
2726	position specified in paragraph (2)(a) shall be enrolled in the
2727	optional retirement program upon such change in status and shall
2728	be notified by the employer of such action. If, within 90 days
2729	after the date of such notification, the employee elects to
2730	retain membership in the Florida Retirement System, such
2731	continuation of membership shall be retroactive to the date of
2732	the change in status.
2733	3. Notwithstanding the provisions of this paragraph,
2734	effective July 1, 1997, any employee who is eligible to
2735	participate in the Optional Retirement Program and who fails to
2736	execute a contract with one of the approved companies and to
2737	notify the boarddepartmentin writing as provided in subsection
2738	(4) within 90 days after the date of eligibility shall be deemed
2739	to have elected membership in the Florida Retirement System,
2740	except as provided in s. 121.051(1)(a). This provision shall
2741	also apply to any employee who terminates employment in an
2742	eligible position before executing the required annuity contract
2743	and notifying the boarddepartment. Such membership shall be
2744	retroactive to the date of eligibility, and all appropriate
2745	contributions shall be transferred to the Florida Retirement
2746	System Trust Fund and the Health Insurance Subsidy Trust Fund.
2747	(e) The election by an eligible employee to participate in
2748	the optional retirement program shall be irrevocable for so long
2749	as the employee continues to meet the eligibility requirements
2750	specified in subsection (2), except as provided in paragraph
2751	(h). In the event that an employee participates in the optional
2752	retirement program for 90 days or more and is subsequently
2753	employed in an administrative or professional position which has
2754	been determined by the boarddepartment, under subparagraph
2755	(2)(a)2., to be not otherwise eligible for participation in the
2756	optional retirement program, the employee shall continue
2757	participation in the optional program so long as the employee
2758	meets the other eligibility requirements for the program, except
2759	as provided in paragraph (h).
2760	(4) CONTRIBUTIONS.--
2761	(a) Through June 30, 2001, each employer shall contribute
2762	on behalf of each participant in the optional retirement program
2763	an amount equal to the normal cost portion of the employer
2764	retirement contribution which would be required if the
2765	participant were a regular member of the Florida Retirement
2766	System defined benefit program, plus the portion of the
2767	contribution rate required in s. 112.363(8) that would otherwise
2768	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
2769	Effective July 1, 2001, each employer shall contribute on behalf
2770	of each participant in the optional program an amount equal to
2771	10.43 percent of the participant's gross monthly compensation.
2772	The board, pursuant to s. 215.44(4),departmentshall deduct an
2773	amount approved by the Legislatureto provide for the
2774	administration of this program. The payment of the contributions
2775	to the optional program which is required by this paragraph for
2776	each participant shall be made by the employer to the board
2777	department, which shall forward the contributions to the
2778	designated company or companies contracting for payment of
2779	benefits for the participant under the program. However, such
2780	contributions paid on behalf of an employee described in
2781	paragraph (3)(c) shall not be forwarded to a company and shall
2782	not begin to accrue interest until the employee has executed an
2783	annuity contract and notified the boarddepartment.
2784	(b) Each employer shall contribute on behalf of each
2785	participant in the optional retirement program an amount equal
2786	to the unfunded actuarial accrued liability portion of the
2787	employer contribution which would be required for members of the
2788	Florida Retirement System. This contribution shall be paid to
2789	the boarddepartmentfor transfer to the Florida Retirement
2790	System Trust Fund.
2791	(c) An Optional Retirement Program Trust Fund shall be
2792	established in the State Treasury and administered by the board
2793	departmentto make payments to the provider companies on behalf
2794	of the optional retirement program participants, and to transfer
2795	the unfunded liability portion of the state optional retirement
2796	program contributions to the Florida Retirement System Trust
2797	Fund.
2798	(6) ADMINISTRATION OF PROGRAM.--
2799	(a) The optional retirement program authorized by this
2800	section shall be administered by the boarddepartment. The board
2801	departmentshall adopt rules establishing the responsibilities
2802	of the State Board of Education and institutions in the State
2803	University System in administering the optional retirement
2804	program. The State Board of Education shall, no more than 90
2805	days after July 1, 1983, submit to the boarddepartmentits
2806	recommendations for the contracts to be offered by the companies
2807	chosen by the boarddepartment. The recommendations of the State
2808	Board of Educationshall include the following:
2809	1. The nature and extent of the rights and benefits in
2810	relation to the required contributions; and
2811	2. The suitability of the rights and benefits to the needs
2812	of the participants and the interests of the institutions in the
2813	recruitment and retention of eligible employees.
2814	(b) After receiving and considering the recommendations of
2815	the State Board of Education, the boarddepartmentshall
2816	designate no more than four companies from which contracts may
2817	be purchased under the program and shall approve the form and
2818	content of the optional retirement program contracts. Upon
2819	application by a qualified Florida domestic company, the board
2820	departmentshall give reasonable notice to all other such
2821	companies that it intends to designate one of such companies as
2822	a fifth company from which contracts may be purchased pursuant
2823	to this section and that they may apply for such designation
2824	prior to the deadline established by said notice. At least 60
2825	days after giving such notice and upon receipt of the
2826	recommendation of the State Board of Education, the board
2827	departmentshall so designate one of such companies as the fifth
2828	company from which such contracts may be purchased.
2829	(c) Effective July 1, 1997, the State Board of
2830	Administration shall review and make recommendations to the
2831	department on the acceptability of all investment products
2832	proposed by provider companies of the optional retirement
2833	program before they are offered through annuity contracts to the
2834	participants and may advise the department of any changes
2835	necessary to ensure that the optional retirement program offers
2836	an acceptable mix of investment products. The boarddepartment
2837	shall determine whichmake the final determination as to whether
2838	an investment productsproduct will be included inapproved for
2839	the program.
2840	(d) The provisions of each contract applicable to a
2841	participant in the optional retirement program shall be
2842	contained in a written program description which shall include a
2843	report of pertinent financial and actuarial information on the
2844	solvency and actuarial soundness of the program and the benefits
2845	applicable to the participant. Such description shall be
2846	furnished by the companies to each participant in the program
2847	and to the boarddepartmentupon commencement of participation
2848	in the program and annually thereafter.
2849	(e) The boarddepartmentshall ensure that each
2850	participant in the optional retirement program is provided an
2851	accounting of the total contribution and the annual contribution
2852	made by and on behalf of such participant.
2853	Section 39. Paragraph (b) of subsection (3), paragraph (a)
2854	of subsection (12), and paragraphs (a) and (b) of subsection
2855	(14) of section 121.40, Florida Statutes, are amended to read:
2856	121.40 Cooperative extension personnel at the Institute of
2857	Food and Agricultural Sciences; supplemental retirement
2858	benefits.--
2859	(3) DEFINITIONS.--The definitions provided in s. 121.021
2860	shall not apply to this section except when specifically cited.
2861	For the purposes of this section, the following words or phrases
2862	have the respective meanings set forth:
2863	(b) "DivisionDepartment" means the Division of Retirement
2864	of the State Board of AdministrationDepartment of Management
2865	Services.
2866	(12) CONTRIBUTIONS.--
2867	(a) For the purposes of funding the supplemental benefits
2868	provided by this section, the institute is authorized and
2869	required to pay, commencing July 1, 1985, the necessary monthly
2870	contributions from its appropriated budget. These amounts shall
2871	be paid into the Institute of Food and Agricultural Sciences
2872	Supplemental Retirement Trust Fund, which is hereby created in
2873	the State Treasury to be administered by the State Board of
2874	Administration.
2875	(14) ADMINISTRATION OF SYSTEM.--
2876	(a) The divisiondepartmentshall make such rules as are
2877	necessary for the effective and efficient administration of this
2878	system. The executive director of the State Board of
2879	Administrationsecretary of the departmentshall be the
2880	administrator of the system. The funds to pay the expenses for
2881	such administration areshall beappropriated from the interest
2882	earned on investments made for the trust fund.
2883	(b) The divisiondepartmentis authorized to require
2884	oaths, by affidavit or otherwise, and acknowledgments from
2885	persons in connection with the administration of its duties and
2886	responsibilities under this section.
2887	Section 40. Subsection (3) of section 121.45, Florida
2888	Statutes, is amended to read:
2889	121.45 Interstate compacts relating to pension
2890	portability.--
2891	(3) ESTABLISHMENT OF COMPACTS.--
2892	(a) The divisionDepartment of Management Servicesis
2893	authorized and directed to survey other state retirement systems
2894	to determine if such retirement systems are interested in
2895	developing an interstate compact with Florida.
2896	(b) If any such state is interested in pursuing the
2897	matter, the divisiondepartmentshall confer with the other
2898	state and the consulting actuaries of both states, and shall
2899	present its findings to the committees having jurisdiction over
2900	retirement matters in the Legislature, and to representatives of
2901	affected certified bargaining units, in order to determine the
2902	feasibility of developing a portability compact, what groups
2903	should be covered, and the goals and priorities which should
2904	guide such development.
2905	(c) Upon a determination that such a compact is feasible
2906	and upon request of the Legislature, the divisiondepartment,
2907	together with its consulting actuaries, shall, in accordance
2908	with suchsaidgoals and priorities, develop a proposal under
2909	which retirement credit may be transferred to or from Florida in
2910	an actuarially sound manner.
2911	(d) Once a proposal has been developed, the division
2912	departmentshall contract with its consulting actuaries to
2913	conduct an actuarial study of the proposal to determine the cost
2914	to the Florida Retirement System Trust Fund and the State of
2915	Florida.
2916	(e) After the actuarial study has been completed, the
2917	divisiondepartmentshall present its findings and the actuarial
2918	study to the Legislature for consideration. If either house of
2919	the Legislature elects to enter into such a compact, it shall be
2920	introduced in the form of a proposed committee bill to the full
2921	Legislature during the same or next regular session.
2922	Section 41. Subsection (2), paragraph (a) of subsection
2923	(5), paragraphs (a), (b), (c), and(e) of subsection (8),
2924	paragraph (c) of subsection (9), paragraphs (a), (c), and (f) of
2925	subsection (10), subsection (11), and paragraph (b) of
2926	subsection (12) and subsection (19) of section 121.4501, Florida
2927	Statutes, are amended to read:
2928	121.4501 Public Employee Optional Retirement Program.--
2929	(2) DEFINITIONS.--As used in this part, the term:
2930	(a) "Approved provider" or "provider" means a private
2931	sector company that is selected and approved by the stateboard
2932	to offer one or more investment products or services to the
2933	Public Employee Optional Retirement Program. The term includes a
2934	bundled provider that offers participants a range of
2935	individually allocated or unallocated investment products and
2936	may offer a range of administrative and customer services, which
2937	may include accounting and administration of individual
2938	participant benefits and contributions; individual participant
2939	recordkeeping; asset purchase, control, and safekeeping; direct
2940	execution of the participant's instructions as to asset and
2941	contribution allocation; calculation of daily net asset values;
2942	direct access to participant account information; periodic
2943	reporting to participants, at least quarterly, on account
2944	balances and transactions; guidance, advice, and allocation
2945	services directly relating to its own investment options or
2946	products, but only if the bundled provider complies with the
2947	standard of care of s. 404(a)(1)(A-B) of the Employee Retirement
2948	Income Security Act of 1974 (ERISA) and if providing such
2949	guidance, advice, or allocation services does not constitute a
2950	prohibited transaction under s. 4975(c)(1) of the Internal
2951	Revenue Code or s. 406 of ERISA, notwithstanding that such
2952	prohibited transaction provisions do not apply to the optional
2953	retirement program; a broad array of distribution options; asset
2954	allocation; and retirement counseling and education. Private
2955	sector companies include investment management companies,
2956	insurance companies, depositories, and mutual fund companies.
2957	(b) "Average monthly compensation" means one-twelfth of
2958	average final compensation as defined in s. 121.021(24).
2959	(c) "Covered employment" means employment in a regularly
2960	established position as defined in s. 121.021(52).
2961	(d) "Department" means the Department of Management
2962	Services.
2963	(d)(e) "Division" means the Division of Retirement of the
2964	State Board of Administrationwithin the Department of
2965	Management Services.
2966	(e)(f)"Eligible employee" means an officer or employee,
2967	as defined in s. 121.021(11), who:
2968	1. Is a member of, or is eligible for membership in, the
2969	Florida Retirement System, including any renewed member of the
2970	Florida Retirement System;
2971	2. Participates in, or is eligible to participate in, the
2972	Senior Management Service Optional Annuity Program as
2973	established under s. 121.055(6); or
2974	3. Is eligible to participate in, but does not participate
2975	in, the State University System Optional Retirement Program
2976	established under s. 121.35 or the State Community College
2977	System Optional Retirement Program established under s.
2978	121.051(2)(c).
2979
2980	The term does not include any member participating in the
2981	Deferred Retirement Option Program established under s.
2982	121.091(13) or any employee participating in an optional
2983	retirement program established under s. 121.051(2)(c) or s.
2984	121.35.
2985	(f)(g)"Employer" means an employer, as defined in s.
2986	121.021(10), of an eligible employee.
2987	(g)(h)"Participant" means an eligible employee who elects
2988	to participate in the Public Employee Optional Retirement
2989	Program and enrolls in such optional program as provided in
2990	subsection (4).
2991	(h)(i)"Public Employee Optional Retirement Program,"
2992	"optional program," or "optional retirement program" means the
2993	alternative defined contribution retirement program established
2994	under this section.
2995	(i)(j)"State board" or "board" means the State Board of
2996	Administration.
2997	(j)(k)"Trustees" means Trustees of the State Board of
2998	Administration.
2999	(k)(l)"Vested" or "vesting" means the guarantee that a
3000	participant is eligible to receive a retirement benefit upon
3001	completion of the required years of service under the Public
3002	Employee Optional Retirement Program.
3003	(5) CONTRIBUTIONS.--
3004	(a) Each employer shall contribute on behalf of each
3005	participant in the Public Employee Optional Retirement Program,
3006	as provided in part III of this chapter. The state board, acting
3007	as plan fiduciary, shall ensure that all plan assets are held in
3008	a trust, pursuant to s. 401 of the Internal Revenue Code. The
3009	fiduciary shall ensure that said contributions are allocated as
3010	follows:
3011	1. The portion earmarked for participant accounts shall be
3012	used to purchase interests in the appropriate investment
3013	vehicles for the accounts of each participant as specified by
3014	the participant, or in accordance with paragraph (4)(d).
3015	2. The portion earmarked for administrative and
3016	educational expenses shall be transferred to the board.
3017	3. The portion earmarked for disability benefits shall be
3018	transferred to the divisiondepartment.
3019	(8) ADMINISTRATION OF PROGRAM.--
3020	(a) The Public Employee Optional Retirement Program shall
3021	be administered by the state board and affected employers. The
3022	board is authorized to require oaths, by affidavit or otherwise,
3023	and acknowledgments from persons in connection with the
3024	administration of its duties and responsibilities under this
3025	chapter. No oath, by affidavit or otherwise, shall be required
3026	of an employee participant at the time of election.
3027	Acknowledgment of an employee's election to participate in the
3028	program shall be no greater than necessary to confirm the
3029	employee's election. The board shall adopt rules establishing
3030	the role and responsibilities of affected state, local
3031	government, and education-related employers, the state board,
3032	the department,and third-party contractors in administering the
3033	Public Employee Optional Retirement Program. The division
3034	departmentshall adopt rules necessary to implement the optional
3035	program in coordination with the defined benefit retirement
3036	program and the disability benefits available under the optional
3037	program.
3038	(b)1. The state board shall select and contract with one
3039	third-party administrator to provide administrative services if
3040	those services cannot be competitively and contractually
3041	provided by the division of Retirement within the Department of
3042	Management Services. With the approval of the state board, the
3043	third-party administrator may subcontract with other
3044	organizations or individuals to provide components of the
3045	administrative services. As a cost of administration, the board
3046	may compensate any such contractor for its services, in
3047	accordance with the terms of the contract, as is deemed
3048	necessary or proper by the board. The third-party administrator
3049	may not be an approved provider or be affiliated with an
3050	approved provider.
3051	2. These administrative services may include, but are not
3052	limited to, enrollment of eligible employees, collection of
3053	employer contributions, disbursement of such contributions to
3054	approved providers in accordance with the allocation directions
3055	of participants; services relating to consolidated billing;
3056	individual and collective recordkeeping and accounting; asset
3057	purchase, control, and safekeeping; and direct disbursement of
3058	funds to and from the third-party administrator, the division,
3059	the board, employers, participants, approved providers, and
3060	beneficiaries. This section does not prevent or prohibit a
3061	bundled provider from providing any administrative or customer
3062	service, including accounting and administration of individual
3063	participant benefits and contributions; individual participant
3064	recordkeeping; asset purchase, control, and safekeeping; direct
3065	execution of the participant' s instructions as to asset and
3066	contribution allocation; calculation of daily net asset values;
3067	direct access to participant account information; or periodic
3068	reporting to participants, at least quarterly, on account
3069	balances and transactions, if these services are authorized by
3070	the board as part of the contract.
3071	3. The state board shall select and contract with one or
3072	more organizations to provide educational services. With
3073	approval of the board, the organizations may subcontract with
3074	other organizations or individuals to provide components of the
3075	educational services. As a cost of administration, the board may
3076	compensate any such contractor for its services in accordance
3077	with the terms of the contract, as is deemed necessary or proper
3078	by the board. The education organization may not be an approved
3079	provider or be affiliated with an approved provider.
3080	4. Educational services shall be designed by the board and
3081	departmentto assist employers, eligible employees,
3082	participants, and beneficiaries in order to maintain compliance
3083	with United States Department of Labor regulations under s.
3084	404(c) of the Employee Retirement Income Security Act of 1974
3085	and to assist employees in their choice of defined benefit or
3086	defined contribution retirement alternatives. Educational
3087	services include, but are not limited to, disseminating
3088	educational materials; providing retirement planning education;
3089	explaining the differences between the defined benefit
3090	retirement plan and the defined contribution retirement plan;
3091	and offering financial planning guidance on matters such as
3092	investment diversification, investment risks, investment costs,
3093	and asset allocation. An approved provider may also provide
3094	educational information, including retirement planning and
3095	investment allocation information concerning its products and
3096	services.
3097	(c)1. In evaluating and selecting a third-party
3098	administrator, the board shall establish criteria under which it
3099	shall consider the relative capabilities and qualifications of
3100	each proposed administrator. In developing such criteria, the
3101	board shall consider:
3102	a. The administrator's demonstrated experience in
3103	providing administrative services to public or private sector
3104	retirement systems.
3105	b. The administrator's demonstrated experience in
3106	providing daily valued recordkeeping to defined contribution
3107	plans.
3108	c. The administrator's ability and willingness to
3109	coordinate its activities with the Florida Retirement System
3110	employers, the board, and the division, and to supply to such
3111	employers, the board, and the division the information and data
3112	they require, including, but not limited to, monthly management
3113	reports, quarterly participant reports, and ad hoc reports
3114	requested by the department orboard.
3115	d. The cost-effectiveness and levels of the administrative
3116	services provided.
3117	e. The administrator's ability to interact with the
3118	participants, the employers, the board, the division, and the
3119	providers; the means by which participants may access account
3120	information, direct investment of contributions, make changes to
3121	their accounts, transfer moneys between available investment
3122	vehicles, and transfer moneys between investment products; and
3123	any fees that apply to such activities.
3124	f. Any other factor deemed necessary by the Trustees of
3125	the State Board of Administration.
3126	g. The recommendations of the Public Employee Optional
3127	Retirement Program Advisory Committee established in subsection
3128	(12).
3129	2. In evaluating and selecting an educational provider,
3130	the board shall establish criteria under which it shall consider
3131	the relative capabilities and qualifications of each proposed
3132	educational provider. In developing such criteria, the board
3133	shall consider:
3134	a. Demonstrated experience in providing educational
3135	services to public or private sector retirement systems.
3136	b. Ability and willingness to coordinate its activities
3137	with the Florida Retirement System employers, the board, and the
3138	division, and to supply to such employers, the board, and the
3139	division the information and data they require, including, but
3140	not limited to, reports on educational contacts.
3141	c. The cost-effectiveness and levels of the educational
3142	services provided.
3143	d. Ability to provide educational services via different
3144	media, including, but not limited to, the Internet, personal
3145	contact, seminars, brochures, and newsletters.
3146	e. Any other factor deemed necessary by the Trustees of
3147	the State Board of Administration.
3148	f. The recommendations of the Public Employee Optional
3149	Retirement Program Advisory Committee established in subsection
3150	(12).
3151	3. The establishment of the criteria shall be solely
3152	within the discretion of the board.
3153	(e)1.The board may contract with any consultant for
3154	professional services, including legal, consulting, accounting,
3155	and actuarial services, deemed necessary to implement and
3156	administer the optional program by the Trustees of the State
3157	Board of Administration. The board may enter into a contract
3158	with one or more vendors to provide low-cost investment advice
3159	to participants, supplemental to education provided by the
3160	third-party administrator. All fees under any such contract
3161	shall be paid by those participants who choose to use the
3162	services of the vendor.
3163	2. The department may contract with consultants for
3164	professional services, including legal, consulting, accounting,
3165	and actuarial services, deemed necessary to implement and
3166	administer the optional program in coordination with the defined
3167	benefit program of the Florida Retirement System. The
3168	department, in coordination with the board, may enter into a
3169	contract with the third-party administrator in order to
3170	coordinate services common to the various programs within the
3171	Florida Retirement System.
3172	(9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.--
3173	(c) In evaluating and selecting approved providers and
3174	products, the board shall establish criteria under which it
3175	shall consider the relative capabilities and qualifications of
3176	each proposed provider company and product. In developing such
3177	criteria, the board shall consider the following to the extent
3178	such factors may be applied in connection with investment
3179	products, services, or providers:
3180	1. Experience in the United States providing retirement
3181	products and related financial services under defined
3182	contribution retirement plans.
3183	2. Financial strength and stability which shall be
3184	evidenced by the highest ratings assigned by nationally
3185	recognized rating services when comparing proposed providers
3186	that are so rated.
3187	3. Intrastate and interstate portability of the product
3188	offered, including early withdrawal options.
3189	4. Compliance with the Internal Revenue Code.
3190	5. The cost-effectiveness of the product provided and the
3191	levels of service supporting the product relative to its
3192	benefits and its characteristics, including, without limitation,
3193	the level of risk borne by the provider.
3194	6. The provider company's ability and willingness to
3195	coordinate its activities with Florida Retirement System
3196	employers, the divisiondepartment, and the board, and to
3197	supply to such employers, the divisiondepartment, and the board
3198	the information and data they require.
3199	7. The methods available to participants to interact with
3200	the provider company; the means by which participants may access
3201	account information, direct investment of contributions, make
3202	changes to their accounts, transfer moneys between available
3203	investment vehicles, and transfer moneys between provider
3204	companies; and any fees that apply to such activities.
3205	8. The provider company's policies with respect to the
3206	transfer of individual account balances, contributions, and
3207	earnings thereon, both internally among investment products
3208	offered by the provider company and externally between approved
3209	providers, as well as any fees, charges, reductions, or
3210	penalties that may be applied.
3211	9. An evaluation of specific investment products, taking
3212	into account each product's experience in meeting its investment
3213	return objectives net of all related fees, expenses, and
3214	charges, including, but not limited to, investment management
3215	fees, loads, distribution and marketing fees, custody fees,
3216	recordkeeping fees, education fees, annuity expenses, and
3217	consulting fees.
3218	10. Organizational factors, including, but not limited to,
3219	financial solvency, organizational depth, and experience in
3220	providing institutional and retail investment services.
3221	(10) EDUCATION COMPONENT.--
3222	(a) The board, in coordination with the department,shall
3223	provide for an education component for system members in a
3224	manner consistent with the provisions of this section. The
3225	education component must be available to eligible employees at
3226	least 90 days prior to the beginning date of the election period
3227	for the employees of the respective types of employers.
3228	(c) The board, in coordination with the department,shall
3229	provide for an initial and ongoing transfer education component
3230	to provide system members with information necessary to make
3231	informed plan choice decisions. The transfer education component
3232	must include, but is not limited to, information on:
3233	1. The amount of money available to a member to transfer
3234	to the defined contribution program.
3235	2. The features of and differences between the defined
3236	benefit program and the defined contribution program, both
3237	generally and specifically, as those differences may affect the
3238	member.
3239	3. The expected benefit available if the member were to
3240	retire under each of the retirement programs, based on
3241	appropriate alternative sets of assumptions.
3242	4. The rate of return from investments in the defined
3243	contribution program and the period of time over which such rate
3244	of return must be achieved to equal or exceed the expected
3245	monthly benefit payable to the member under the defined benefit
3246	program.
3247	5. The historical rates of return for the investment
3248	alternatives available in the defined contribution programs.
3249	6. The benefits and historical rates of return on
3250	investments available in a typical deferred compensation plan or
3251	a typical plan under s. 403(b) of the Internal Revenue Code for
3252	which the employee may be eligible.
3253	7. The program choices available to employees of the State
3254	University System and the comparative benefits of each available
3255	program, if applicable.
3256	8. Payout options available in each of the retirement
3257	programs.
3258	(f) The board and the departmentshall also establish a
3259	communication component to provide program information to
3260	participating employers and the employers' personnel and payroll
3261	officers and to explain their respective responsibilities in
3262	conjunction with the retirement programs.
3263	(11) PARTICIPANT INFORMATION REQUIREMENTS.--The board
3264	shall ensure that each participant is provided a quarterly
3265	statement that accounts for the contributions made on behalf of
3266	such participant; the interest and investment earnings thereon;
3267	and any fees, penalties, or other deductions that apply thereto.
3268	At a minimum, such statements must:
3269	(a) Indicate the participant's investment options.
3270	(b) State the market value of the account at the close of
3271	the current quarter and previous quarter.
3272	(c) Show account gains and losses for the period and
3273	changes in account accumulation unit values for the period.
3274	(d) Itemize account contributions for the quarter.
3275	(e) Indicate any account changes due to adjustment of
3276	contribution levels, reallocation of contributions, balance
3277	transfers, or withdrawals.
3278	(f) Set forth any fees, charges, penalties, and deductions
3279	that apply to the account.
3280	(g) Indicate the amount of the account in which the
3281	participant is fully vested and the amount of the account in
3282	which the participant is not vested.
3283	(h) Indicate each investment product's performance
3284	relative to an appropriate market benchmark.
3285
3286	The third-party administrator shall provide quarterly and annual
3287	summary reports to the board and any other reports requested by
3288	the department orthe board. In any solicitation or offer of
3289	coverage under an optional retirement program, a provider
3290	company shall be governed by the contract readability provisions
3291	of s. 627.4145, notwithstanding s. 627.4145(6)(c). In addition,
3292	all descriptive materials must be prepared under the assumption
3293	that the participant is an unsophisticated investor. Provider
3294	companies must maintain an internal system of quality assurance,
3295	have proven functional systems that are date-calculation
3296	compliant, and be subject to a due-diligence inquiry that proves
3297	their capacity and fitness to undertake service
3298	responsibilities.
3299	(12) ADVISORY COMMITTEES TO PROVIDE ADVICE AND
3300	ASSISTANCE.--The Investment Advisory Council and the Public
3301	Employee Optional Retirement Program Advisory Committee shall
3302	assist the board in implementing and administering the Public
3303	Employee Optional Retirement Program.
3304	(b)1. The Public Employee Optional Retirement Program
3305	Advisory Committee shall be composed of seven members. The
3306	President of the Senate shall appoint two members, the Speaker
3307	of the House of Representatives shall appoint two members, the
3308	Governor shall appoint one member, the Treasurer shall appoint
3309	one member, and the Comptroller shall appoint one member. The
3310	members of the advisory committee shall elect a member as chair.
3311	The appointments shall be made by September 1, 2000, and the
3312	committee shall meet to organize by October 1, 2000. The initial
3313	appointments shall be for a term of 24 months. Each appointing
3314	authority shall fill any vacancy occurring among its appointees
3315	for the remainder of the original term.
3316	2. The advisory committee shall make recommendations on
3317	the selection of the third-party administrator, the education
3318	providers, and the investment products and providers. The
3319	committee's recommendations on the third-party administrator
3320	must be forwarded to the Trustees of the State Board of
3321	Administration by January 1, 2001. The recommendations on the
3322	education providers must be forwarded to the trustees by April
3323	1, 2001.
3324	3. The advisory committee's recommendations and activities
3325	shall be guided by the best interests of the employees,
3326	considering the interests of employers, and the intent of the
3327	Legislature in establishing the Public Employee Optional
3328	Retirement Program.
3329	4. The staff of the state board and the departmentshall
3330	assist the advisory committee.
3331	(19) PARTICIPANT RECORDS.--All personal identifying
3332	information regarding a participant in the Public Employee
3333	Optional Retirement Program contained in Florida Retirement
3334	System records held by the State Board of Administration or the
3335	Department of Management Services, or itstheiragents,
3336	employees, or contractors is exempt from the provisions of s.
3337	119.07(1) and s. 24(a), Art. I of the State Constitution. The
3338	department orboard may use such exempt information as necessary
3339	in any legal or administrative proceeding. This subsection is
3340	subject to the Open Government Sunset Review Act of 1995 in
3341	accordance with s. 119.15, and shall stand repealed October 2,
3342	2007, unless reviewed and saved from repeal through reenactment
3343	by the Legislature.
3344	Section 42. Section 121.4503, Florida Statutes, is amended
3345	to read:
3346	121.4503 Florida Retirement System Contributions Clearing
3347	Trust Fund.--
3348	(1) The Florida Retirement System Contributions Clearing
3349	Trust Fund is created in the State Treasuryas a clearing fund
3350	for disbursing employer contributions to the component plans of
3351	the Florida Retirement System and shall be administered by the
3352	State Board of AdministrationDepartment of Management Services.
3353	Funds shall be credited to the trust fund as provided in this
3354	chapter and shall be held in trust for the contributing
3355	employers until such time as the assets are transferred by the
3356	boarddepartmentto the Florida Retirement System Trust Fund,
3357	the Public Employee Optional Retirement Program Trust Fund, or
3358	other trust funds as authorized by law, to be used for the
3359	purposes of this chapter. The trust fund is exempt from the
3360	service charges imposed by s. 215.20.
3361	(2) The Florida Retirement System Contributions Clearing
3362	Trust Fund is a clearing trust fund of the State Board of
3363	AdministrationDepartment of Management Servicespursuant to s.
3364	19(f), Art. III of the State Constitution, and is not subject to
3365	termination.
3366	(3) The State Board of AdministrationDepartment of
3367	Management Servicesmay adopt rules governing the receipt and
3368	disbursement of amounts received by the Florida Retirement
3369	System Contributions Clearing Trust Fund from employers
3370	contributing to the component plans of the Florida Retirement
3371	System.
3372	Section 43. Section 121.591, Florida Statutes, is amended
3373	to read:
3374	121.591 Benefits payable under the Public Employee
3375	Optional Retirement Program of the Florida Retirement
3376	System.--Benefits may not be paid under this section unless the
3377	member has terminated employment as provided in s.
3378	121.021(39)(a) or is deceased and a proper application has been
3379	filed in the manner prescribed by the state board or the
3380	divisiondepartment. The state board or divisiondepartment, as
3381	appropriate, may cancel an application for retirement benefits
3382	when the member or beneficiary fails to timely provide the
3383	information and documents required by this chapter and the rules
3384	of the state board and divisiondepartment. In accordance with
3385	their respective responsibilities as provided herein, the State
3386	Board of Administration and the divisionDepartment of
3387	Management Servicesshall adopt rules establishing procedures
3388	for application for retirement benefits and for the cancellation
3389	of such application when the required information or documents
3390	are not received.
3391	(1) NORMAL BENEFITS.--Under the Public Employee Optional
3392	Retirement Program:
3393	(a) Benefits in the form of vested accumulations as
3394	described in s. 121.4501(6) shall be payable under this
3395	subsection in accordance with the following terms and
3396	conditions:
3397	1. To the extent vested, benefits shall be payable only to
3398	a participant.
3399	2. Benefits shall be paid by the third-party administrator
3400	or designated approved providers in accordance with the law, the
3401	contracts, and any applicable board rule or policy.
3402	3. To receive benefits under this subsection, the
3403	participant must be terminated from all employment with all
3404	Florida Retirement System employers, as provided in s.
3405	121.021(39).
3406	(b) If a participant elects to receive his or her benefits
3407	upon termination of employment, the participant must submit a
3408	written application to the third-party administrator indicating
3409	his or her preferred distribution date and selecting an
3410	authorized method of distribution as provided in paragraph (c).
3411	The participant may defer receipt of benefits until he or she
3412	chooses to make such application, subject to federal
3413	requirements.
3414	(c) Upon receipt by the third-party administrator of a
3415	properly executed application for distribution of benefits, the
3416	total accumulated benefit shall be payable to the participant,
3417	as:
3418	1. A lump-sum distribution to the participant;
3419	2. A lump-sum direct rollover distribution whereby all
3420	accrued benefits, plus interest and investment earnings, are
3421	paid from the participant's account directly to the custodian of
3422	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
3423	the Internal Revenue Code, on behalf of the participant; or
3424	3. Periodic distributions, as authorized by the state
3425	board.
3426	(2) DISABILITY RETIREMENT BENEFITS.--Benefits provided
3427	under this subsection are payable in lieu of the benefits which
3428	would otherwise be payable under the provisions of subsection
3429	(1). Such benefits shall be funded entirely from employer
3430	contributions made under s. 121.571, transferred participant
3431	funds accumulated pursuant to paragraph (a), and interest and
3432	earnings thereon. Pursuant thereto:
3433	(a) Transfer of funds.--To qualify to receive monthly
3434	disability benefits under this subsection:
3435	1. All moneys accumulated in the participant's Public
3436	Employee Optional Retirement Program accounts, including vested
3437	and nonvested accumulations as described in s. 121.4501(6),
3438	shall be transferred from such individual accounts to the
3439	Division of Retirement for deposit in the disability account of
3440	the Florida Retirement System Trust Fund. Such moneys shall be
3441	separately accounted for. Earnings shall be credited on an
3442	annual basis for amounts held in the disability accounts of the
3443	Florida Retirement System Trust Fund based on actual earnings of
3444	the Florida Retirement System Trust Fund.
3445	2. If the participant has retained retirement credit he or
3446	she had earned under the defined benefit program of the Florida
3447	Retirement System as provided in s. 121.4501(3)(b), a sum
3448	representing the actuarial present value of such credit within
3449	the Florida Retirement System Trust Fund shall be reassigned by
3450	the Division of Retirement from the defined benefit program to
3451	the disability program as implemented under this subsection and
3452	shall be deposited in the disability account of the Florida
3453	Retirement System Trust Fund. Such moneys shall be separately
3454	accounted for.
3455	(b) Disability retirement; entitlement.--
3456	1. A participant of the Public Employee Optional
3457	Retirement Program who becomes totally and permanently disabled,
3458	as defined in s. 121.091(4)(b), after completing 8 years of
3459	creditable service, or a participant who becomes totally and
3460	permanently disabled in the line of duty regardless of his or
3461	her length of service, shall be entitled to a monthly disability
3462	benefit as provided herein.
3463	2. In order for service to apply toward the 8 years of
3464	service required to vest for regular disability benefits, or
3465	toward the creditable service used in calculating a service-
3466	based benefit as provided for under paragraph (g), the service
3467	must be creditable service as described below:
3468	a. The participant's period of service under the Public
3469	Employee Optional Retirement Program will be considered
3470	creditable service, except as provided in subparagraph d.
3471	b. If the participant has elected to retain credit for his
3472	or her service under the defined benefit program of the Florida
3473	Retirement System as provided under s. 121.4501(3)(b), all such
3474	service will be considered creditable service.
3475	c. If the participant has elected to transfer to his or
3476	her participant accounts a sum representing the present value of
3477	his or her retirement credit under the defined benefit program
3478	as provided under s. 121.4501(3)(c), the period of service under
3479	the defined benefit program represented in the present value
3480	amounts transferred will be considered creditable service for
3481	purposes of vesting for disability benefits, except as provided
3482	in subparagraph d.
3483	d. Whenever a participant has terminated employment and
3484	has taken distribution of his or her funds as provided in
3485	subsection (1), all creditable service represented by such
3486	distributed funds is forfeited for purposes of this subsection.
3487	(c) Disability retirement effective date.--The effective
3488	retirement date for a participant who applies and is approved
3489	for disability retirement shall be established as provided under
3490	s. 121.091(4)(a)2. and 3.
3491	(d) Total and permanent disability.--A participant shall
3492	be considered totally and permanently disabled if, in the
3493	opinion of the division, he or she is prevented, by reason of a
3494	medically determinable physical or mental impairment, from
3495	rendering useful and efficient service as an officer or
3496	employee.
3497	(e) Proof of disability.--The division, before approving
3498	payment of any disability retirement benefit, shall require
3499	proof that the participant is totally and permanently disabled
3500	in the same manner as provided for members of the defined
3501	benefit program of the Florida Retirement System under s.
3502	121.091(4)(c).
3503	(f) Disability retirement benefit.--Upon the disability
3504	retirement of a participant under this subsection, the
3505	participant shall receive a monthly benefit that shall begin to
3506	accrue on the first day of the month of disability retirement,
3507	as approved by the division, and shall be payable on the last
3508	day of that month and each month thereafter during his or her
3509	lifetime and continued disability. All disability benefits
3510	payable to such member shall be paid out of the disability
3511	account of the Florida Retirement System Trust Fund established
3512	under this subsection.
3513	(g) Computation of disability retirement benefit.--The
3514	amount of each monthly payment shall be calculated in the same
3515	manner as provided for members of the defined benefit program of
3516	the Florida Retirement System under s. 121.091(4)(f). For such
3517	purpose, creditable service under both the defined benefit
3518	program and the Public Employee Optional Retirement Program of
3519	the Florida Retirement System shall be applicable as provided
3520	under paragraph (b).
3521	(h) Reapplication.--A participant whose initial
3522	application for disability retirement has been denied may
3523	reapply for disability benefits in the same manner, and under
3524	the same conditions, as provided for members of the defined
3525	benefit program of the Florida Retirement System under s.
3526	121.091(4)(g).
3527	(i) Membership.--Upon approval of an application for
3528	disability benefits under this subsection, the applicant shall
3529	be transferred to the defined benefit program of the Florida
3530	Retirement System, effective upon his or her disability
3531	retirement effective date.
3532	(j) Option to cancel.--Any participant whose application
3533	for disability benefits is approved may cancel his or her
3534	application for disability benefits, provided that the
3535	cancellation request is received by the division before a
3536	disability retirement warrant has been deposited, cashed, or
3537	received by direct deposit. Upon such cancellation:
3538	1. The participant's transfer to the defined benefit
3539	program under paragraph (i) shall be nullified;
3540	2. The participant shall be retroactively reinstated in
3541	the Public Employee Optional Retirement Program without hiatus;
3542	3. All funds transferred to the Florida Retirement System
3543	Trust Fund under paragraph (a) shall be returned to the
3544	participant accounts from which such funds were drawn; and
3545	4. The participant may elect to receive the benefit
3546	payable under the provisions of subsection (1) in lieu of
3547	disability benefits as provided under this subsection.
3548	(k) Recovery from disability.--
3549	1. The division may require periodic reexaminations at the
3550	expense of the disability program account of the Florida
3551	Retirement System Trust Fund. Except as otherwise provided in
3552	subparagraph 2., the requirements, procedures, and restrictions
3553	relating to the conduct and review of such reexaminations,
3554	discontinuation or termination of benefits, reentry into
3555	employment, disability retirement after reentry into covered
3556	employment, and all other matters relating to recovery from
3557	disability shall be the same as are set forth under s.
3558	121.091(4)(h).
3559	2. Upon recovery from disability, any recipient of
3560	disability retirement benefits under this subsection shall be a
3561	compulsory member of the Public Employee Optional Retirement
3562	Program of the Florida Retirement System. The net difference
3563	between the recipient's original account balance transferred to
3564	the Florida Retirement System Trust Fund, including earnings,
3565	under paragraph (a) and total disability benefits paid to such
3566	recipient, if any, shall be determined as provided in sub-
3567	subparagraph a.
3568	a. An amount equal to the total benefits paid shall be
3569	subtracted from that portion of the transferred account balance
3570	consisting of vested accumulations as described under s.
3571	121.4501(6), if any, and an amount equal to the remainder of
3572	benefit amounts paid, if any, shall then be subtracted from any
3573	remaining portion consisting of nonvested accumulations as
3574	described under s. 121.4501(6).
3575	b. Amounts subtracted under sub-subparagraph a. shall be
3576	retained within the disability account of the Florida Retirement
3577	System Trust Fund. Any remaining account balance shall be
3578	transferred to the third-party administrator for disposition as
3579	provided under sub-subparagraph c. or sub-subparagraph d., as
3580	appropriate.
3581	c. If the recipient returns to covered employment,
3582	transferred amounts shall be deposited in individual accounts
3583	under the Public Employee Optional Retirement Program, as
3584	directed by the participant. Vested and nonvested amounts shall
3585	be separately accounted for as provided in s. 121.4501(6).
3586	d. If the recipient fails to return to covered employment
3587	upon recovery from disability:
3588	(I) Any remaining vested amount shall be deposited in
3589	individual accounts under the Public Employee Optional
3590	Retirement Program, as directed by the participant, and shall be
3591	payable as provided in subsection (1).
3592	(II) Any remaining nonvested amount shall be held in a
3593	suspense account and shall be forfeitable after 5 years as
3594	provided in s. 121.4501(6).
3595	3. If present value was reassigned from the defined
3596	benefit program to the disability program of the Florida
3597	Retirement System as provided under subparagraph (a)2., the full
3598	present value amount shall be returned to the defined benefit
3599	account within the Florida Retirement System Trust Fund and the
3600	affected individual's associated retirement credit under the
3601	defined benefit program shall be reinstated in full. Any benefit
3602	based upon such credit shall be calculated as provided in s.
3603	121.091(4)(h)1.
3604	(l) Nonadmissible causes of disability.--A participant
3605	shall not be entitled to receive a disability retirement benefit
3606	if the disability results from any injury or disease sustained
3607	or inflicted as described in s. 121.091(4)(i).
3608	(m) Disability retirement of justice or judge by order of
3609	Supreme Court.--
3610	1. If a participant is a justice of the Supreme Court,
3611	judge of a district court of appeal, circuit judge, or judge of
3612	a county court who has served for 6 years or more as an elected
3613	constitutional judicial officer, including service as a judicial
3614	officer in any court abolished pursuant to Art. V of the State
3615	Constitution, and who is retired for disability by order of the
3616	Supreme Court upon recommendation of the Judicial Qualifications
3617	Commission pursuant to the provisions of Art. V of the State
3618	Constitution, the participant's Option 1 monthly disability
3619	benefit amount as provided in s. 121.091(6)(a)1. shall be two-
3620	thirds of his or her monthly compensation as of the
3621	participant's disability retirement date. Such a participant
3622	may alternatively elect to receive an actuarially adjusted
3623	disability retirement benefit under any other option as provided
3624	in s. 121.091(6)(a), or to receive the normal benefit payable
3625	under the Public Employee Optional Retirement Program as set
3626	forth in subsection (1).
3627	2. If any justice or judge who is a participant of the
3628	Public Employee Optional Retirement Program of the Florida
3629	Retirement System is retired for disability by order of the
3630	Supreme Court upon recommendation of the Judicial Qualifications
3631	Commission pursuant to the provisions of Art. V of the State
3632	Constitution and elects to receive a monthly disability benefit
3633	under the provisions of this paragraph:
3634	a. Any present value amount that was transferred to his or
3635	her program account and all employer contributions made to such
3636	account on his or her behalf, plus interest and earnings
3637	thereon, shall be transferred to and deposited in the disability
3638	account of the Florida Retirement System Trust Fund; and
3639	b. The monthly benefits payable under this paragraph for
3640	any affected justice or judge retired from the Florida
3641	Retirement System pursuant to Art. V of the State Constitution
3642	shall be paid from the disability account of the Florida
3643	Retirement System Trust Fund.
3644	(n) Death of retiree or beneficiary.--Upon the death of a
3645	disabled retiree or beneficiary thereof who is receiving monthly
3646	benefits under this subsection, the monthly benefits shall be
3647	paid through the last day of the month of death and shall
3648	terminate, or be adjusted, if applicable, as of that date in
3649	accordance with the optional form of benefit selected at the
3650	time of retirement. The deceased disabled retiree's beneficiary
3651	shall also receive the amount of the participant's remaining
3652	account balance, if any, in the Florida Retirement System Trust
3653	Fund. The Division of RetirementDepartment of Management
3654	Servicesmay adopt rules necessary to administer this paragraph.
3655	(3) DEATH BENEFITS.--Under the Public Employee Optional
3656	Retirement Program:
3657	(a) Survivor benefits shall be payable in accordance with
3658	the following terms and conditions:
3659	1. To the extent vested, benefits shall be payable only to
3660	a participant's beneficiary or beneficiaries as designated by
3661	the participant. If a participant designates a primary
3662	beneficiary other than the participant's spouse, the
3663	participant's spouse shall be notified of the designation. This
3664	requirement shall not apply to the designation of one or more
3665	contingent beneficiaries to receive any benefits remaining upon
3666	the death of the primary beneficiary or beneficiaries.
3667	2. Benefits shall be paid by the third-party administrator
3668	or designated approved providers in accordance with the law, the
3669	contracts, and any applicable board rule or policy.
3670	3. To receive benefits under this subsection, the
3671	participant must be deceased.
3672	(b) In the event of a participant's death, all vested
3673	accumulations as described in s. 121.4501(6), less withholding
3674	taxes remitted to the Internal Revenue Service, shall be
3675	distributed, as provided in paragraph (c), to the participant's
3676	designated beneficiary or beneficiaries, or to the participant's
3677	estate, as if the participant retired on the date of death. No
3678	other death benefits shall be available for survivors of
3679	participants under the Public Employee Optional Retirement
3680	Program, except for such benefits, or coverage for such
3681	benefits, as are otherwise provided by law or are separately
3682	afforded by the employer, at the employer's discretion.
3683	(c) Upon receipt by the third-party administrator of a
3684	properly executed application for distribution of benefits, the
3685	total accumulated benefit shall be payable by the third-party
3686	administrator to the participant's surviving beneficiary or
3687	beneficiaries, as:
3688	1. A lump-sum distribution payable to the beneficiary or
3689	beneficiaries, or to the deceased participant's estate;
3690	2. An eligible rollover distribution on behalf of the
3691	surviving spouse of a deceased participant, whereby all accrued
3692	benefits, plus interest and investment earnings, are paid from
3693	the deceased participant's account directly to the custodian of
3694	an eligible retirement plan, as described in s. 402(c)(8)(B) of
3695	the Internal Revenue Code, on behalf of the surviving spouse; or
3696	3. A partial lump-sum payment whereby a portion of the
3697	accrued benefit is paid to the deceased participant's surviving
3698	spouse or other designated beneficiaries, less withholding taxes
3699	remitted to the Internal Revenue Service, and the remaining
3700	amount is transferred directly to the custodian of an eligible
3701	retirement plan, as described in s. 402(c)(8)(B) of the Internal
3702	Revenue Code, on behalf of the surviving spouse. The proportions
3703	must be specified by the participant or the surviving
3704	beneficiary.
3705
3706	This paragraph does not abrogate other applicable provisions of
3707	state or federal law providing for payment of death benefits.
3708	(4) LIMITATION ON LEGAL PROCESS.--The benefits payable to
3709	any person under the Public Employee Optional Retirement
3710	Program, and any contributions accumulated under such program,
3711	are not subject to assignment, execution, attachment, or any
3712	legal process, except for qualified domestic relations orders by
3713	a court of competent jurisdiction, income deduction orders as
3714	provided in s. 61.1301, and federal income tax levies.
3715	Section 44. Section 121.5911, Florida Statutes, is amended
3716	to read:
3717	121.5911 Disability retirement program; qualified status;
3718	rulemaking authority.--It is the intent of the Legislature that
3719	the disability retirement program for participants of the Public
3720	Employee Optional Retirement Program as created in this act must
3721	meet all applicable requirements of federal law for a qualified
3722	plan. The Department of Management Services or the Division of
3723	Retirementshall seek a private letter ruling from the Internal
3724	Revenue Service on the disability retirement program for
3725	participants of the Public Employee Optional Retirement Program.
3726	Consistent with the private letter ruling, the division
3727	Department of Management Servicesshall adopt any necessary
3728	rules required to maintain the qualified status of the
3729	disability retirement program and the Florida Retirement System
3730	defined benefit plan.
3731	Section 45. Subsection (1) of section 121.72, Florida
3732	Statutes, is amended to read:
3733	121.72 Allocations to optional retirement program
3734	participant accounts; percentage amounts.--
3735	(1) The allocations established in subsection (4) shall
3736	fund retirement benefits under the optional retirement program
3737	and shall be transferred monthly by the State Board of
3738	AdministrationDivision of Retirementfrom the Florida
3739	Retirement System Contributions Clearing Trust Fund to the
3740	third-party administrator for deposit in each participating
3741	employee's individual account based on the membership class of
3742	the participant.
3743	Section 46. Subsection (1) of section 121.73, Florida
3744	Statutes, is amended to read:
3745	121.73 Allocations for optional retirement program
3746	participant disability coverage; percentage amounts.--
3747	(1) The allocations established in subsection (3) shall be
3748	used to provide disability coverage for participants in the
3749	optional retirement program and shall be transferred monthly by
3750	the State Board of AdministrationDivision of Retirementfrom
3751	the Florida Retirement System Contributions Clearing Trust Fund
3752	to the disability account of the Florida Retirement System Trust
3753	Fund.
3754	Section 47. Section 121.74, Florida Statutes, is amended
3755	to read:
3756	121.74 Administrative and educational expenses.--Effective
3757	July 1, 2002, in addition to contributions required under s.
3758	121.71, employers participating in the Florida Retirement System
3759	shall contribute an amount equal to 0.15 percent of the payroll
3760	reported for each class or subclass of Florida Retirement System
3761	membership, which amount shall be transferred by the State Board
3762	of AdministrationDivision of Retirementfrom the Florida
3763	Retirement System Contributions Clearing Trust Fund to the
3764	board'sState Board of Administration'sAdministrative Trust
3765	Fund to offset the costs of administering the optional
3766	retirement program and the costs of providing educational
3767	services to participants in the defined benefit program and the
3768	optional retirement program. Approval of the Trustees of the
3769	State Board of Administration is required prior to the
3770	expenditure of these funds. Payments for third-party
3771	administrative or educational expenses shall be made only
3772	pursuant to the terms of the approved contracts for such
3773	services.
3774	Section 48. Subsection (6) of section 175.032, Florida
3775	Statutes, is amended to read:
3776	175.032 Definitions.--For any municipality, special fire
3777	control district, chapter plan, local law municipality, local
3778	law special fire control district, or local law plan under this
3779	chapter, the following words and phrases have the following
3780	meanings:
3781	(6) "Division" means the Division of Retirement of the
3782	State Board of AdministrationDepartment of Management Services.
3783	Section 49. Subsection (1) of section 175.121, Florida
3784	Statutes, is amended to read:
3785	175.121 Department of Revenue and Division of Retirement
3786	to keep accounts of deposits; disbursements.--For any
3787	municipality or special fire control district having a chapter
3788	or local law plan established pursuant to this chapter:
3789	(1) The Department of Revenue shall keep a separate
3790	account of all moneys collected for each municipality and each
3791	special fire control district under the provisions of this
3792	chapter. Seven and three-tenths percent of all moneys so
3793	collected shall be transferred to the General Revenue Fund. The
3794	balance of all moneys so collected shallmustbe transferred to
3795	the Police and Firefighters' Premium Tax Trust Fund and shall be
3796	separately accounted for by the division. The moneys budgeted as
3797	necessary to pay the expenses of the division for the daily
3798	oversight and monitoring of the firefighters' pension plans
3799	under this chapter and for the oversight and actuarial reviews
3800	conducted under part VII of chapter 112 are annually
3801	appropriated from the interest and investment income earned on
3802	the moneys collected for each municipality or special fire
3803	control district and deposited in the Police and Firefighters'
3804	Premium Tax Trust Fund. Interest and investment income
3805	remaining thereafter in the trust fund which is unexpended and
3806	otherwise unallocated by law shall be transferredrevertto the
3807	General Revenue Fund on June 30 of each year.
3808	Section 50. Section 175.1215, Florida Statutes, is amended
3809	to read:
3810	175.1215 Police and Firefighters' Premium Tax Trust
3811	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3812	created in the State Treasury, to be administered by the
3813	Division of Retirement of the Department of Management Services.
3814	Funds credited to the trust fund, as provided in chapter 95-250,
3815	Laws of Florida, or similar legislation, shall be expended for
3816	the purposes set forth in that legislation.
3817	Section 51. Subsection (1) of section 175.341, Florida
3818	Statutes, is amended to read:
3819	175.341 Duties of Division of Retirement; rulemaking
3820	authority; investments by State Board of Administration.--
3821	(1) The division shall be responsible for the daily
3822	oversight and monitoring for actuarial soundness of the
3823	firefighters' pension plans, whether chapter or local law plans,
3824	established under this chapter, for receiving and holding the
3825	premium tax moneys collected under this chapter, and, upon
3826	determining compliance with the provisions of this chapter, for
3827	disbursing those moneys to the firefighters' pension plans. The
3828	funds necessary to pay expenses for such administration are
3829	shall beannually appropriated from the interest and investment
3830	income earned on moneys deposited in the trust fund.
3831	Section 52. Subsection (7) of section 185.02, Florida
3832	Statutes, is amended to read:
3833	185.02 Definitions.--For any municipality, chapter plan,
3834	local law municipality, or local law plan under this chapter,
3835	the following words and phrases as used in this chapter shall
3836	have the following meanings, unless a different meaning is
3837	plainly required by the context:
3838	(7) "Division" means the Division of Retirement of the
3839	State Board of AdministrationDepartment of Management Services.
3840	Section 53. Subsection (1) of section 185.10, Florida
3841	Statutes, is amended to read:
3842	185.10 Department of Revenue and Division of Retirement to
3843	keep accounts of deposits; disbursements.--For any municipality
3844	having a chapter plan or local law plan under this chapter:
3845	(1) The Department of Revenue shall keep a separate
3846	account of all moneys collected for each municipality under the
3847	provisions of this chapter. Seven and three-tenths percent of
3848	all moneys so collected shall be transferred to the General
3849	Revenue Fund. The balance of all moneys so collected shallmust
3850	be transferred to the Police and Firefighters' Premium Tax Trust
3851	Fund and shall be separately accounted for by the division. The
3852	moneys budgeted as necessary to pay the expenses of the division
3853	for the daily oversight and monitoring of the police officers'
3854	retirement plans under this chapter and for the oversight and
3855	actuarial reviews conducted under part VII of chapter 112 are
3856	annually appropriated from the interest and investment income
3857	earned on the moneys collected for each municipality or special
3858	fire control district and deposited in the Police and
3859	Firefighters' Premium Tax Trust Fund. Interest and investment
3860	income remaining thereafter in the trust fund which is
3861	unexpended and otherwise unallocated by law shall be transferred
3862	revertto the General Revenue Fund on June 30 of each year.
3863	Section 54. Section 185.105, Florida Statutes, is amended
3864	to read:
3865	185.105 Police and Firefighters' Premium Tax Trust
3866	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
3867	created in the State Treasury, to be administered by the
3868	Division of Retirement of the Department of Management Services.
3869	Funds credited to the trust fund, as provided in chapter 95-250,
3870	Laws of Florida, or similar legislation, shall be expended for
3871	the purposes set forth in that legislation.
3872	Section 55. Subsection (1) of section 185.23, Florida
3873	Statutes, is amended to read:
3874	185.23 Duties of Division of Retirement; rulemaking
3875	authority; investments by State Board of Administration.--
3876	(1) The division shall be responsible for the daily
3877	oversight and monitoring for actuarial soundness of the
3878	municipal police officers' retirement plans, whether chapter or
3879	local law plans, established under this chapter, for receiving
3880	and holding the premium tax moneys collected under this chapter,
3881	and, upon determining compliance with the provisions of this
3882	chapter, for disbursing those moneys to the municipal police
3883	officers' retirement plans. The funds to pay the expenses for
3884	such administration areshall be annuallyappropriated from the
3885	interest and investment income earned on moneys deposited in the
3886	trust fund.
3887	Section 56. Paragraph (ii) of subsection (4) of section
3888	215.20, Florida Statutes, is amended to read:
3889	215.20 Certain income and certain trust funds to
3890	contribute to the General Revenue Fund.--
3891	(4) The income of a revenue nature deposited in the
3892	following described trust funds, by whatever name designated, is
3893	that from which the deductions authorized by subsection (3)
3894	shall be made:
3895	(ii) The Police and Firefighters' Premium Tax Trust Fund
3896	established within the Department of Management Services.
3897
3898	The enumeration of the foregoing moneys or trust funds shall not
3899	prohibit the applicability thereto of s. 215.24 should the
3900	Governor determine that for the reasons mentioned in s. 215.24
3901	the money or trust funds should be exempt herefrom, as it is the
3902	purpose of this law to exempt income from its force and effect
3903	when, by the operation of this law, federal matching funds or
3904	contributions or private grants to any trust fund would be lost
3905	to the state.
3906	Section 57. Subsection (3) of section 215.28, Florida
3907	Statutes, is amended to read:
3908	215.28 United States securities, purchase by state and
3909	county officers and employees; deductions from salary.--
3910	(3) All deductions so made by any such disbursing
3911	authority shall be deposited in a trust account separate and
3912	apart from the funds of the state, county, or subordinate
3913	agency. Such trust account shall be created in the State
3914	Treasury and shall be administered by the State Board of
3915	Administration.Such account will be subject to withdrawal only
3916	for the purchase of United States securities on behalf of
3917	officers and employees, or for refunds to such persons in
3918	accordance with the provisions of this law. Whenever the sum of
3919	$18.75 or the purchase price of the security requested to be
3920	purchased is accumulated from deductions so made from the
3921	salaries or wages of an officer or employee, such disbursing
3922	agent shall arrange the purchase of the bond or security applied
3923	for and have it registered in the name or names requested in the
3924	deduction authorization. Securities so purchased will be
3925	delivered in such manner as may be convenient for the issuing
3926	agent and the purchaser. Any interest earned on moneys in such
3927	account while awaiting the accumulation of the purchase price of
3928	the security shall be transferred to the Florida Retirement
3929	System Trust Fund as reimbursement for administrative costs
3930	incurred by the Division of Retirement of the State Board of
3931	AdministrationDepartment of Management Servicesunder this
3932	section.
3933	Section 58. Subsection (7) of section 215.44, Florida
3934	Statutes, is amended to read:
3935	215.44 Board of Administration; powers and duties in
3936	relation to investment of trust funds.--
3937	(7) Investment and debt purchasing procedures and
3938	contracts of funds held in trust by the State Board of
3939	Administration, whether directly or incidentally related to the
3940	investment or debt transactions, and purchases of commodities or
3941	services related to the administration of pension benefits,are
3942	exempt from the provisions of chapter 287.
3943	Section 59. Subsection (3) of section 215.50, Florida
3944	Statutes, is amended to read:
3945	215.50 Custody of securities purchased; income.--
3946	(3) The Treasurer, as custodian of securities owned by the
3947	Florida Retirement System Trust Fund and the Florida Survivor
3948	Benefit Trust Fund, shall collect the interest, dividends,
3949	prepayments, maturities, proceeds from sales, and other income
3950	accruing from such assets. As such income is collected by the
3951	Treasurer, it shall be deposited directly into a commercial bank
3952	to the credit of the State Board of Administration. Such bank
3953	accounts as may be required for this purpose shall offer
3954	satisfactory collateral security as provided by chapter 280. In
3955	the event funds so deposited according to the provisions of this
3956	section are required for the purpose of paying benefits or other
3957	operational needs, the State Board of Administration shall remit
3958	to the Florida Retirement System Trust Fund in the State
3959	Treasury such amounts as are requiredmay be requested by the
3960	Department of Management Services.
3961	Section 60. Section 215.52, Florida Statutes, is amended
3962	to read:
3963	215.52 Rules and regulations.--The board may adoptshall
3964	have the power and authority to make reasonable rules and
3965	regulations necessary to implement general law conferring powers
3966	and duties upon itcarry out the provisions of ss. 215.44-
3967	215.53.
3968	Section 61. Subsections (2), (3), (11), and (13) of
3969	section 238.01, Florida Statutes, are amended to read:
3970	238.01 Definitions.--The following words and phrases as
3971	used in this chapter shall have the following meanings unless a
3972	different meaning is plainly required by the context:
3973	(2) "Division" means the Division of Retirement of the
3974	State Board of Administration"Department" means the Department
3975	of Management Services.
3976	(3) "Teacher" means any member of the teaching or
3977	professional staff and any certificated employee of any public
3978	free school, of any district school system and vocational
3979	school, any member of the teaching or professional staff of the
3980	Florida School for the Deaf and Blind, child training schools of
3981	the Department of Juvenile Justice, the Department of
3982	Corrections, and any tax-supported institution of higher
3983	learning of the state, and any member and any certified employee
3984	of the Department of Education, any certified employee of the
3985	retirement system, any full-time employee of any nonprofit
3986	professional association or corporation of teachers functioning
3987	in Florida on a statewide basis, which seeks to protect and
3988	improve public school opportunities for children and advance the
3989	professional and welfare status of its members, any person now
3990	serving as superintendent, or who was serving as county
3991	superintendent of public instruction on July 1, 1939, and any
3992	hereafter duly elected or appointed superintendent, who holds a
3993	valid Florida teachers' certificate. In all cases of doubt the
3994	divisionDepartment of Management Servicesshall determine
3995	whether any person is a teacher as defined herein.
3996	(11) "Regular interest" means interest at such rate as may
3997	be set from time to time by the divisionDepartment of
3998	Management Services.
3999	(13) "Earnable compensation" means the full compensation
4000	payable to a teacher working the full working time for his or
4001	her position. In respect to plans A, B, C, and D only, in cases
4002	where compensation includes maintenance, the divisionDepartment
4003	of Management Servicesshall fix the value of that part of the
4004	compensation not paid in money; provided that all members shall
4005	from July 1, 1955, make contributions to the retirement system
4006	on the basis of "earnable compensation" as defined herein and
4007	all persons who are members on July 1, 1955, may, upon
4008	application, have their "earnable compensation" for the time
4009	during which they have been members prior to that date
4010	determined on the basis of "earnable compensation" as defined in
4011	this law, upon paying to the retirement system, on or before the
4012	date of retirement, a sum equal to the additional contribution
4013	with accumulated regular interest thereon they would have made
4014	if "earnable compensation" had been defined, at the time they
4015	became members, as it is now defined. However, earnable
4016	compensation for all plan years beginning on or after July 1,
4017	1990, shall not include any amounts in excess of the
4018	compensation limitation (originally $200,000) established by s.
4019	401(a)(17) of the Internal Revenue Code prior to the Omnibus
4020	Budget Reconciliation Act of 1993, which limitation shall be
4021	adjusted for changes in the cost of living since 1989, in the
4022	manner provided by s. 401(a)(17) of the Internal Revenue Code of
4023	1991. This limitation, which has been part of the Teachers'
4024	Retirement System since plan years beginning on or after July 1,
4025	1990, shall be adjusted as required by federal law for qualified
4026	government plans.
4027	Section 62. Section 238.02, Florida Statutes, is amended
4028	to read:
4029	238.02 Name and date of establishment.--A retirement
4030	system is established and placed under the management of the
4031	divisionDepartment of Management Servicesfor the purpose of
4032	providing retirement allowances and other benefits for teachers
4033	of the state. The retirement system shall begin operations on
4034	July 1, 1939. It has such powers and privileges of a
4035	corporation as may be necessary to carry out effectively the
4036	provisions of this chapter and shall be known as the "Teachers'
4037	Retirement System of the State," and by such name all of its
4038	business shall be transacted, all of its funds invested, and all
4039	of its cash and securities and other property held in trust for
4040	the purpose for which received.
4041	Section 63. Section 238.03, Florida Statutes, is amended
4042	to read:
4043	238.03 Administration.--
4044	(1) The general administration and the responsibility for
4045	the proper operation of the retirement system and for making
4046	effective the provisions of this chapter are vested in the
4047	divisionDepartment of Management Services. Subject to the
4048	limitation of this chapter, the divisiondepartmentshall, from
4049	time to time, establish rules and regulations for the
4050	administration and transaction of the business of the retirement
4051	system and shall perform such other functions as are required
4052	for the execution of this chapter.
4053	(2) The divisiondepartmentshall keep in convenient form
4054	such data as shall be necessary for actuarial valuation of the
4055	various funds created by this chapter and for checking the
4056	experience of the retirement system.
4057	(3) The Department of Legal Affairs, at the option of the
4058	State Board of Administration, shall be the legal adviser of the
4059	divisiondepartment.
4060	(4) The divisiondepartmentshall employ such agents,
4061	servants and employees as in its judgment may be necessary to
4062	carry out the terms and provisions of this chapter and shall
4063	provide for their compensation. Among the employees of the
4064	divisiondepartmentshall be an actuary who shall be the
4065	technical adviser of the divisiondepartmenton matters
4066	regarding the operation of the funds created by the provisions
4067	of this chapter and who shall perform such other duties as are
4068	required in connection therewith.
4069	(5) In the year 1943 and at least once in each 5-year
4070	period thereafter, the actuary shall make an actuarial
4071	investigation of the mortality, service and salary experience of
4072	the members and beneficiaries as defined in this chapter, and
4073	shall make a valuation of the various funds created by the
4074	chapter, and having regard to such investigation and valuation,
4075	the divisiondepartmentshall adopt such mortality and service
4076	tables as shall be deemed necessary, and shall certify the rates
4077	of contribution payable under the provisions of this chapter.
4078	(6) The actuary shall make an annual valuation of the
4079	assets and liabilities of the funds of the retirement system on
4080	the basis of the tables adopted by the divisiondepartmentin
4081	accordance with the requirements of this section, and shall
4082	prepare an annual statement of the amounts to be contributed by
4083	the state in accordance with s. 238.09.
4084	(7) The divisiondepartmentshall publish annually the
4085	valuation, as certified by the actuary, of the assets and
4086	liabilities of the various funds created by this chapter, a
4087	statement as to the receipts and disbursements of the funds, and
4088	a statement as to the accumulated cash and securities of the
4089	funds.
4090	(8) The divisiondepartmentshall keep a record of all of
4091	its proceedings and such record shall be open to inspection by
4092	the public.
4093	(9) The divisiondepartmentis authorized to photograph
4094	and reduce to microfilm as a permanent record, its ledger sheets
4095	showing the salary and contributions of members of the
4096	retirement system, also the records of deceased members of the
4097	system and thereupon to destroy the documents from which such
4098	films are photographed.
4099	Section 64. Paragraph (b) of subsection (1), paragraphs
4100	(a) and (b) of subsection (3), and subsection (4) of section
4101	238.05, Florida Statutes, are amended to read:
4102	238.05 Membership.--
4103	(1) The membership of the retirement system shall consist
4104	of the following:
4105	(b) All persons who became or who become teachers on or
4106	after July 1, 1939, except as provided in paragraph (a) and
4107	subsection (5) hereof, shall become members of the retirement
4108	system by virtue of their appointment as teachers. However,
4109	employees who are not members of the teaching or professional
4110	staff shall only become members of the retirement system by
4111	filing a notice with the divisiondepartmentof their election
4112	to become members.
4113	(3) Except as otherwise provided in s. 238.07(9),
4114	membership of any person in the retirement system will cease if
4115	he or she is continuously unemployed as a teacher for a period
4116	of more than 5 consecutive years, or upon the withdrawal by the
4117	member of his or her accumulated contributions as provided in s.
4118	238.07(13), or upon retirement, or upon death; provided that the
4119	adjustments prescribed below are to be made for persons who
4120	enter the Armed Forces of the United States during a period of
4121	war or national emergency and for persons who are granted leaves
4122	of absence. Any member of the retirement system who within 1
4123	year before the time of entering the Armed Forces of the United
4124	States was a teacher, as defined in s. 238.01, or was engaged in
4125	other public educational work within the state, and member of
4126	the Teachers' Retirement System at the time of induction, or who
4127	has been or is granted leave of absence, shall be permitted to
4128	elect to continue his or her membership in the Teachers'
4129	Retirement System; and membership service shall be allowed for
4130	the period covered by service in the Armed Forces of the United
4131	States or by leave of absence under the following conditions:
4132	(a) A person who has been granted leave of absence shall
4133	file with the divisiondepartmentbefore his or her next
4134	contribution is due an application to continue his or her
4135	membership during the period covered by the person's leave of
4136	absence and, if such application is filed, shall make his or her
4137	contribution to the retirement system on the basis of his or her
4138	last previous annual salary as a teacher, and shall, prior to
4139	retirement, pay in full to the system such contributions with
4140	accumulated regular interest. Such contributions with interest
4141	may be paid at one time or in monthly, quarterly, semiannual, or
4142	annual payments in the person's discretion.
4143	(b) A person who enters or who has entered the Armed
4144	Forces of the United States may either continue his or her
4145	membership according to the plan outlined under paragraph (a)
4146	or, in lieu thereof, may file with the divisiondepartmentat
4147	any time following the close of his or her military service an
4148	application that his or her membership be continued and that
4149	membership service be allowed for not more than 5 years of his
4150	or her period of service in the Armed Forces of the United
4151	States during any period of war or national emergency; provided
4152	that any such person shall, prior to retirement, pay in full his
4153	or her contributions with accumulated regular interest to the
4154	retirement system for the period for which he or she is entitled
4155	to membership service on the basis of his or her last previous
4156	annual salary as a teacher. Such contributions with interest may
4157	be paid to the divisiondepartmentat one time or in monthly,
4158	quarterly, semiannual, or annual payments in the person's
4159	discretion.
4160	(4) The divisiondepartmentmay in its discretion deny the
4161	right to become members to any class of teachers who are serving
4162	on a temporary or any other than a per annum basis, and it may
4163	also in its discretion make optional with members in any such
4164	class their individual entrance into membership.
4165	Section 65. Subsections (3), (10), (12), (13), (15A), and
4166	(16) of section 238.07, Florida Statutes, are amended to read:
4167	238.07 Regular benefits; survivor benefits.--
4168	(3) Any member who, prior to July 1, 1955, elected to
4169	retire under one of plans A, B, C, or D may elect, prior to
4170	retirement, to retire under plan E in accordance with the terms
4171	hereof. Any person who became a member on or after July 1,
4172	1955, shall retire under plan E, except as provided for under s.
4173	238.31. With respect to plans A, B, C, or D, any member shall
4174	have the right at any time to change to a plan of retirement
4175	requiring a lower rate of contribution. The divisionDepartment
4176	of Management Servicesshall also notify the member of the rate
4177	of contribution such member must make from and after selecting
4178	such plan of retirement. Any member in service may retire upon
4179	reaching the age of retirement formerly selected by him or her,
4180	upon the member's written application to the divisiondepartment
4181	setting forth at which time, not more than 90 days subsequent to
4182	the execution and filing of such application, it is his or her
4183	desire to retire notwithstanding that during such period of
4184	notification he or she may have separated from service. Upon
4185	receipt of such application for retirement, the division
4186	departmentshall retire such member not more than 90 days
4187	thereafter. Before such member may retire he or she must file
4188	with the divisiondepartmenthis or her written selection of one
4189	of the optional benefits provided in s. 238.08.
4190	(10) Any member in service, who has 10 or more years of
4191	creditable service, may upon the application of his or her
4192	employer or upon his or her own application, be retired by the
4193	divisiondepartmentnot less than 30 nor more than 90 days next
4194	following the date of filing such application, on a disability
4195	retirement allowance; provided that a physician licensed by this
4196	state examines and certifies that such member is mentally or
4197	physically incapacitated for the further performance of duty,
4198	that such incapacity is likely to be permanent, and that such
4199	member should be retired, and the divisiondepartmentconcurs.
4200	In making the determination, the divisiondepartmentmay require
4201	other evidence of disability as deemed appropriate.
4202	(12)(a) Once each year during the first 5 years following
4203	the retirement of a member on a disability retirement allowance,
4204	and once in every 3-year period thereafter, the division
4205	departmentmay require any disability beneficiary who has not
4206	yet attained his or her minimum service retirement age to
4207	undergo a medical examination by a physician licensed by this
4208	state and to submit any other evidence of disability as required
4209	by the divisiondepartment. Should a disability beneficiary who
4210	has not yet attained his or her minimum service retirement age
4211	refuse to submit to any such medical examination, his or her
4212	retirement allowance shall be discontinued until his or her
4213	withdrawal of such refusal, and should such refusal continue for
4214	1 year, all of the disability beneficiary's rights in and to his
4215	or her pension shall be forfeited.
4216	(b) If the divisiondepartmentfinds that a disability
4217	beneficiary is engaged in or is able to engage in a gainful
4218	occupation paying more than the difference between his or her
4219	disability retirement allowance and his or her average final
4220	compensation, the amount of the beneficiary's pension shall be
4221	reduced to an amount which, together with his or her annuity and
4222	the amount earnable by him or her, shall equal the amount of his
4223	or her average final compensation. Should the beneficiary's
4224	earning capacity later be changed, the amount of his or her
4225	pension may be further modified; provided that the pension so
4226	modified shall not exceed the amount of the pension allowable
4227	under subsection (11), at the time of retirement, nor an amount
4228	which, when added to the amount earnable by the beneficiary,
4229	together with his or her annuity, equals the amount of his or
4230	her average final compensation. A beneficiary restored to
4231	active service at a salary less than the average final
4232	compensation upon the basis of which he or she was retired shall
4233	not become a member of the retirement system at that time.
4234	(c) Should a disability beneficiary under his or her
4235	minimum service retirement age be at any time in service at a
4236	salary equal to or greater than his or her average final
4237	compensation upon the basis of which he or she was retired, the
4238	beneficiary's disability retirement allowance shall cease and he
4239	or she shall again become a member of the retirement system and
4240	shall contribute thereafter at the same rate at which he or she
4241	paid prior to disability. Any prior service certificate, on the
4242	basis of which his or her allowance was computed at the time of
4243	his or her disability retirement, shall be restored to full
4244	force and effect; and, in addition, upon his or her subsequent
4245	retirement he or she shall be credited with all his or her
4246	membership service on the basis of which his or her allowance
4247	was computed at the time of his or her disability retirement.
4248	(13) Should a member cease to be a teacher except by death
4249	or by retirement under the provisions of this chapter, the
4250	member shall be paid the amount of his or her accumulated
4251	contributions. Should a member die before retirement, the
4252	amount of his or her accumulated contributions shall be paid to
4253	such person, if any, as he or she shall have nominated by
4254	written designation duly executed and filed with the division
4255	department; otherwise, to his or her executors or
4256	administrators.
4257	(15A)(a) Any member of the Teachers' Retirement System who
4258	has heretofore, or who hereafter, retires with no less than 10
4259	years of creditable service and who has passed his or her 65th
4260	birthday, may, upon application to the divisiondepartment, have
4261	his or her retirement allowance redetermined and thereupon shall
4262	be entitled to a monthly service retirement allowance which
4263	shall be equal to $4 multiplied by the number of years of the
4264	member's creditable service which shall be payable monthly
4265	during his or her retirement; provided, that the amount of
4266	retirement allowance as determined hereunder, shall be reduced
4267	by an amount equal to:
4268	1. Any social security benefits received by the member,
4269	and
4270	2. Any social security benefits that the member is
4271	eligible to receive by reason of his or her own right or through
4272	his or her spouse.
4273	(b) No payment shall be made to a member of the Teachers'
4274	Retirement System under this act, until the divisiondepartment
4275	has determined the social security status of such member.
4276	(c) Eligibility of a member of the Teachers' Retirement
4277	System shall be determined under the social security laws and
4278	regulations; provided, however, that a member shall be
4279	considered eligible if the member or the member's spouse has
4280	reached 65 years of age and would draw social security if the
4281	member or the member's spouse were not engaged in activity that
4282	results in the member or the member's spouse receiving income
4283	that would make him or her ineligible to receive social security
4284	benefits. A member of the Teachers' Retirement System shall be
4285	deemed to be eligible for social security benefits if the member
4286	has this eligibility in his or her own right or through his or
4287	her spouse.
4288	(d) The divisiondepartmentshall review, at least
4289	annually, the social security status of all members of the
4290	Teachers' Retirement System receiving payment under this act and
4291	shall increase or decrease payments to such members as shall be
4292	necessary to carry out the intent of this act.
4293	(e) No member of the Teachers' Retirement System shall
4294	have his or her retirement allowance reduced or any of his or
4295	her rights impaired by reason of this act.
4296	(f) This subsection shall take effect on January 1, 1962.
4297	(16)(a) Definitions under survivor benefits are:
4298	1. A dependent is a child, widow, widower, or parent of
4299	the deceased member who was receiving not less than one-half of
4300	his or her support from the deceased member at the time of the
4301	death of such member.
4302	2. A child is a natural or legally adopted child of a
4303	member, who:
4304	a. Is under 18 years of age, or
4305	b. Is over 18 years of age but not over 22 years of age
4306	and is enrolled as a student in an accredited educational
4307	institution, or
4308	c. Is 18 years of age or older and is physically or
4309	mentally incapable of self-support, when such mental and
4310	physical incapacity occurred prior to such child obtaining the
4311	age of 18 years. Such person shall cease to be regarded as a
4312	child upon the termination of such physical or mental
4313	disability. The determination as to such physical or mental
4314	incapability shall be vested in the divisiondepartment.
4315
4316
4317	No person shall be considered a child who has married or, except
4318	as provided in sub-subparagraph 2.b. or as to a child who is
4319	physically or mentally incapable of self-support as hereinbefore
4320	set forth, has become 18 years of age.
4321	3. A parent is a natural parent of a member and includes a
4322	lawful spouse of a natural parent.
4323	4. A beneficiary is a person who is entitled to benefits
4324	under this subsection by reason of his or her relation to a
4325	deceased member during the lifetime of such member.
4326	(b) In addition to all other benefits to which a member
4327	shall, subject to the conditions set out below, be entitled, the
4328	beneficiary of such member shall, upon the death of such member,
4329	receive the following benefits:
4330
4331	Minimum period of paid service of member in Florida as regular full-time teacher Beneficiaries of deceased member Benefits
4332	Beginning on July 1, 1971, the lump-sum death benefit, provided
4333	in item 7 above for the retired teacher, shall apply to all
4334	present and future retirees of the systems.
4335	(c) The payment of survivor benefits shall begin as of the
4336	month immediately following the death of the member except where
4337	the beneficiary has not reached the age required to receive
4338	benefits under paragraph (b), in which event the payment of
4339	survivor benefits shall begin as of the month immediately
4340	following the month in which the beneficiary reaches the
4341	required age. Provided that if death occurs during the first 3
4342	years of employment, the payment of survivor benefits shall be
4343	reduced by the amount of monthly benefits the member's survivors
4344	are entitled to receive under federal social security as either
4345	a survivor of the member or as a covered worker under federal
4346	social security.
4347	(d) Limitations on rights of beneficiary are:
4348	1. The person named as beneficiary in paragraph (b) shall,
4349	in no event, be entitled to receive the benefits set out in such
4350	paragraph unless the death of the member under whom such
4351	beneficiary claims occurs within the period of time after the
4352	member has served in Florida as follows:
4353
4354	Minimum number of years Period after serving in
4355	of service in Florida Florida in which
4356	death of member
4357	occurs
4358
4359	3 to 5...................................................2 years
4360	6 to 9...................................................5 years
4361	10 or more..............................................10 years
4362
4363	2. Upon the death of a member, the divisiondepartment
4364	shall make a determination of the beneficiary or beneficiaries
4365	of the deceased member and shall pay survivor benefits to such
4366	beneficiary or beneficiaries beginning 1 month immediately
4367	following the death of the member except where the beneficiary
4368	has not reached the age required to receive benefits under
4369	paragraph (b), in which event the payment of survivor benefits
4370	shall begin as of the month immediately following the month in
4371	which the beneficiary reaches the required age. When required
4372	by the divisiondepartment, the beneficiary or beneficiaries
4373	shall file an application for survivor benefits upon forms
4374	prescribed by the divisiondepartment.
4375	3. The beneficiaries of a member to receive survivor
4376	benefits are fixed by this subsection, and a member may not buy
4377	or otherwise change such benefits. He or she may, however,
4378	designate the beneficiary to receive the $500 death benefits.
4379	If a member fails to make this designation, the $500 death
4380	benefits shall be paid to his or her executor or administrator.
4381	4. The beneficiary or beneficiaries of a member whose
4382	death occurs while he or she is in service or while he or she is
4383	receiving a disability allowance under subsection (11), shall
4384	receive survivor benefits under this subsection determined by
4385	the years of service in Florida of the deceased member as set
4386	out in paragraph (b). The requirement that the death of a
4387	member must occur within a certain period of time after service
4388	in Florida as set out in subparagraph (d)1. shall not apply to a
4389	member receiving a disability benefit at the time of his or her
4390	death.
4391	Section 66. Subsection (2), paragraph (b) of subsection
4392	(5), and subsections (6) and (7) of section 238.08, Florida
4393	Statutes, are amended to read:
4394	238.08 Optional benefits.--A member may elect to receive
4395	his or her benefits under the terms of this chapter according to
4396	the provisions of any one of the following options:
4397	(2) Option two. A member may elect to receive on
4398	retirement the actuarial equivalent (at that time) of his or her
4399	retirement allowance in a reduced retirement allowance payable
4400	throughout life, with the provisions that if the member dies
4401	before he or she has received in payment of his or her annuity
4402	the amount of his or her accumulated contributions, as they were
4403	at the time of his or her retirement, the balance shall be paid
4404	to such person, if any, as he or she shall nominate by written
4405	designation duly acknowledged and filed with the division
4406	department; otherwise, to his or her executors or
4407	administrators.
4408	(5)
4409	(b) A member who elects Option three or Option four shall,
4410	on a form provided for that purpose, designate his or her spouse
4411	as beneficiary to receive the benefits which continue to be
4412	payable upon the death of the member. After such benefits have
4413	commenced under Option three or Option four, the retired member
4414	may change the designation of his or her spouse as beneficiary
4415	only twice. If such a retired member remarries and wishes to
4416	make such a change, he or she may do so by filing with the
4417	divisiondepartmenta notarized change of spouse designation
4418	form and shall notify the former spouse in writing of such
4419	change. Upon receipt of a completed change of spouse
4420	designation form, the divisiondepartmentshall adjust the
4421	member's monthly benefit by the application of actuarial tables
4422	and calculations developed to ensure that the benefit paid is
4423	the actuarial equivalent of the present value of the member's
4424	current benefit. The consent of a retired member's formerly
4425	designated spouse as beneficiary to any such change shall not be
4426	required.
4427	(6) Notwithstanding any provision in this chapter to the
4428	contrary, the following provisions shall apply to any member of
4429	the retirement system who has accumulated at least 10 years of
4430	service and dies prior to retirement:
4431	(a) If the deceased member's surviving spouse has
4432	previously received a refund of the member's accumulated
4433	contributions made to the retirement system, such spouse may pay
4434	to the divisiondepartmentan amount equal to the sum of the
4435	amount of the deceased member's contributions previously
4436	refunded and regular interest compounded annually on the amount
4437	of such refunded contributions from the date of refund to the
4438	date of payment to the divisiondepartment, and by so doing be
4439	entitled to receive the monthly retirement benefit provided in
4440	paragraph (c).
4441	(b) If the deceased member's surviving spouse has not
4442	received a refund of the deceased member's accumulated
4443	contributions, such spouse shall, upon application to the
4444	divisiondepartmentwithin 30 days of the death of the member,
4445	receive the monthly retirement benefit provided in paragraph
4446	(c).
4447	(c) The monthly benefit payable to the spouse described in
4448	paragraph (a) or paragraph (b) shall be the amount which would
4449	have been payable to the deceased member's spouse, assuming that
4450	the member retired on the date of his or her death and had
4451	selected the option in subsection (3), such benefit to be based
4452	on the ages of the spouse and member as of the date of death of
4453	the member. The benefit shall commence on the first day of the
4454	month following the payment of the aforesaid amount to the
4455	divisiondepartment, if paragraph (a) is applicable, or on the
4456	first day of the month following the receipt of the spouse's
4457	application by the divisiondepartment, if paragraph (b) is
4458	applicable.
4459	(7) The surviving spouse or other dependent of any member
4460	whose employment is terminated by death shall, upon application
4461	to the divisiondepartment, be permitted to pay the required
4462	contributions for any service performed by the member which
4463	could have been claimed by the member at the time of his or her
4464	death. Such service shall be added to the creditable service of
4465	the member and shall be used in the calculation of any benefits
4466	which may be payable to the surviving spouse or other surviving
4467	dependent.
4468	Section 67. Paragraphs (a), (c), and (d) of subsection
4469	(1), paragraphs (b) and (c) of subsection (3), subsection (4),
4470	and paragraph (b) of subsection (5) of section 238.09, Florida
4471	Statutes, are amended to read:
4472	238.09 Method of financing.--All of the assets of the
4473	retirement system shall be credited, according to the purposes
4474	for which they are held, to one of four funds; namely, the
4475	Annuity Savings Trust Fund, the Pension Accumulation Trust Fund,
4476	the Expense Trust Fund, and the Survivors' Benefit Trust Fund.
4477	(1) The Annuity Savings Trust Fund shall be a fund in
4478	which shall be accumulated contributions made from the salaries
4479	of members under the provisions of paragraph (c) or paragraph
4480	(f). Contribution to, payments from, the Annuity Savings Trust
4481	Fund shall be made as follows:
4482	(a) With respect to plan A, B, C, or D, upon the basis of
4483	such tables as the divisionDepartment of Management Services
4484	shall adopt, and regular interest, the actuary of the retirement
4485	system shall determine for each member the proportion of
4486	earnable compensation which, when deducted from each payment of
4487	his or her prospective earnable annual compensation prior to his
4488	or her minimum service retirement age, and accumulated at
4489	regular interest until such age, shall be computed to provide at
4490	such age:
4491	1. An annuity equal to one one-hundred-fortieth of his or
4492	her average final compensation multiplied by the number of his
4493	or her years of membership in the case of each member electing
4494	to retire under the provisions of plan A or B.
4495	2. An annuity equal to one one-hundred-twentieth of his or
4496	her average final compensation multiplied by the number of his
4497	or her years of membership service in the case of each member
4498	electing to retire under the provisions of plan C.
4499	3. An annuity equal to one one-hundredth of his or her
4500	average final compensation multiplied by the number of his or
4501	her years of membership service in the case of each member
4502	electing to retire under the provisions of plan D.
4503
4504	In the case of any member who has attained his or her minimum
4505	service retirement age prior to becoming a member, the
4506	proportion of salary applicable to such member, with respect to
4507	plan A, B, C, or D, shall be the proportion computed for the age
4508	1 year younger than his or her minimum service retirement age.
4509	(c) The divisiondepartmentshall certify to each employer
4510	the proportion of the earnable compensation of each member who
4511	is compensated by the employer, and the employer shall cause to
4512	be deducted from the salary of each member on each and every
4513	payroll for each and every payroll period an amount equal to the
4514	proportion of the member's earnable compensation so computed.
4515	With respect to plan A, B, C, or D, the employer shall not make
4516	any deduction for annuity purposes from the compensation of a
4517	member who has attained the age of 60 years, if such member
4518	elects not to contribute.
4519	(d) In determining the amount earnable by a member in a
4520	payroll period, the divisiondepartmentmay consider the rate of
4521	compensation payable to such member on the first day of the
4522	payroll period as continuing throughout such payroll period, and
4523	it may omit deductions from compensation for any period less
4524	than a full payroll period if a teacher was not a member on the
4525	first day of the payroll period, and to facilitate the making of
4526	deductions, it may modify any deduction required of any member
4527	by such an amount as shall not exceed one-tenth of 1 percent of
4528	the annual salary from which said deduction is to be made.
4529	(3) The Pension Accumulation Trust Fund shall be the fund
4530	in which shall be accumulated all reserves for the payment of
4531	all annuities or benefits in lieu of annuities on retired
4532	members and all pensions and other benefits payable from
4533	contributions made by the members and by the employers, from
4534	which annuities, pensions and benefits in lieu thereof shall be
4535	paid. Contributions to, and payments from, the Pension
4536	Accumulation Trust Fund, other than as set forth in subsections
4537	(2) and (3) herein, shall be made as follows:
4538	(b) On the basis of regular interest and of such mortality
4539	and other tables as shall be adopted by the divisiondepartment,
4540	the actuary engaged by the divisiondepartmentto make each
4541	valuation required by this chapter shall, during the period over
4542	which the accrued liability contribution is payable, determine,
4543	immediately after making such valuation, the uniform and
4544	constant percentage of the earnable compensation of the average
4545	new entrant, which, if contributed on the basis of his or her
4546	compensation throughout his or her entire period of service,
4547	would be sufficient to provide for the payment of any pension
4548	payable by the state on his or her account. The rate percent so
4549	determined shall be known as the normal contribution rate. After
4550	the accrued liability contribution has ceased to be payable, the
4551	normal contribution rate shall be the rate percent of the
4552	earnable compensation of all members, obtained by deducting from
4553	the total liabilities of the Pension Accumulation Trust Fund the
4554	amount of the funds in hand to the credit of that fund and
4555	dividing the remainder by 1 percent of the present value of the
4556	prospective future salaries of all members as computed on the
4557	basis of the mortality and service tables adopted by the
4558	divisiondepartmentand on the basis of regular interest. The
4559	normal rate of contribution shall be determined and certified to
4560	the divisiondepartmentby the actuary after each valuation and
4561	shall continue in force until a new valuation and certification
4562	are made.
4563	(c) Immediately succeeding the first valuation, the
4564	actuary engaged by the divisiondepartmentshall compute the
4565	rate percent of the total earnable compensation of all members
4566	which is equivalent to 4 percent of the amount of the total
4567	liability for pensions on account of all members and
4568	beneficiaries and not dischargeable by the present assets of the
4569	Pension Accumulation Trust Fund and by the aforesaid normal
4570	contribution if made on account of such members during the
4571	remainder of their active service. The rate percent, originally
4572	so determined, shall be known as the accrued liability
4573	contribution rate.
4574	(4) The Expense Trust Fund shall be the fund to which
4575	shall be credited all moneys contributed for the administrative
4576	expenses of the retirement system and from which shall be paid
4577	all expenses incurred in connection with the administration and
4578	operation of the retirement system. Contribution to the Expense
4579	Trust Fund shall be made by transfer from interest earnings on
4580	investments in the Annuity Savings Trust Fund. Such transfers
4581	shall be approved by the State Board of Administration in
4582	accordance with s. 215.44(4)regulated by the Legislature
4583	pursuant to budgets filed in accordance with the provisions of
4584	chapter 216.
4585	(5)
4586	(b) The divisiondepartmentshall annually certify to each
4587	employer, at the time it makes the certification to the employer
4588	under paragraph (1)(c), the rate of twenty-five-hundredths
4589	percent to be applied by the employer to the salary of each
4590	member who is compensated by the employer, and the employer
4591	shall cause to be deducted from the salary of each member on
4592	each and every payroll for each and every payroll period an
4593	amount equal to twenty-five-hundredths percent of the member's
4594	salary paid by the employer and the employer shall remit monthly
4595	such deducted amounts to the divisiondepartmentwhich shall
4596	place the same in the Survivors' Benefit Trust Fund of the
4597	Teachers' Retirement System of the state. The amount of
4598	contributions by a member to the Survivors' Benefit Trust Fund
4599	shall, in no event, be refundable to the member or his or her
4600	beneficiaries.
4601	Section 68. Section 238.10, Florida Statutes, is amended
4602	to read:
4603	238.10 Management of funds.--The divisionDepartment of
4604	Management Services, annually, shall allow regular interest on
4605	the amount for the preceding year to the credit of each of the
4606	funds of the retirement system, and to the credit of the
4607	individual account therein, if any, with the exception of the
4608	expense fund, from the interest and dividends earned from
4609	investments.
4610	Section 69. Paragraph (b) of subsection (1) and
4611	subsections (2) and (3) of section 238.11, Florida Statutes, are
4612	amended to read:
4613	238.11 Collection of contributions.--
4614	(1) The collection of contributions shall be as follows:
4615	(b) Each employer shall transmit monthly to the division
4616	Department of Management Servicesa warrant for the total amount
4617	of such deductions. Each employer shall also transmit monthly to
4618	the divisiondepartmenta warrant for such employer contribution
4619	set aside as provided for in paragraph (a) of this subsection.
4620	The divisiondepartment, after making records of all such
4621	warrants, shall transmit them to the Department of Banking and
4622	Finance for delivery to the Treasurer of the state who shall
4623	collect them.
4624	(2) The collection of the state contribution shall be made
4625	as follows:
4626	(a) The amounts required to be paid by the state into the
4627	Teachers' Retirement System in this chapter shall be provided
4628	therefor in the General Appropriations Act. However, in the
4629	event a sufficient amount is not included in the General
4630	Appropriations Act to meet the full amount needed to pay the
4631	retirement compensation provided for in this chapter, the
4632	additional amount needed for such retirement compensation is
4633	hereby appropriated from the General Revenue Fund as approved by
4634	the divisionDepartment of Management Services.
4635	(b) The divisionDepartment of Management Servicesshall
4636	certify one-fourth of the amount so ascertained for each year to
4637	the Comptroller on or before the last day of July, October,
4638	January, and April of each year. The Comptroller shall, on or
4639	before the first day of August, November, February, and May of
4640	each year, draw his or her warrant or warrants on the Treasurer
4641	for the respective amounts due the several funds of the
4642	retirement system. On the receipt of the warrant or warrants of
4643	the Comptroller, the Treasurer shall immediately transfer to the
4644	several funds of the retirement system the amounts due.
4645	(3) All collection of contributions of a nonprofit
4646	professional association or corporation of teachers as referred
4647	to in s. 238.01(3) and (5) shall be made by such association or
4648	corporation in the following manner:
4649	(a) On April 1 of each year, the divisionDepartment of
4650	Management Servicesshall certify to any such nonprofit
4651	professional association or corporation of teachers the amounts
4652	which will become due and payable during the ensuing fiscal year
4653	to each of the funds of the retirement system to which such
4654	contributions are payable as set forth in this law.
4655	(b) The divisionDepartment of Management Servicesshall
4656	certify one-fourth of the amount so ascertained for each year to
4657	the nonprofit professional association or corporation of
4658	teachers on or before the last day of July, October, January,
4659	and April of each year. The nonprofit professional association
4660	or corporation of teachers shall, on or before the first day of
4661	August, November, February, and May of each year, draw its check
4662	payable to the divisiondepartmentfor the respective amounts
4663	due the several funds of the retirement system. Upon receipt of
4664	the check, the divisiondepartmentshall immediately transfer to
4665	the several funds of the retirement system the amounts due,
4666	provided, however, that the amounts due the several funds of the
4667	retirement system from any such association or corporation for
4668	creditable service accruing to any such member before July 1,
4669	1947, shall be paid prior to the retirement of any such member.
4670	Section 70. Section 238.12, Florida Statutes, is amended
4671	to read:
4672	238.12 Duties of employers.--
4673	(1) Each employer shall keep such records and, from time
4674	to time, shall furnish such information as the division
4675	Department of Management Servicesmay require in the discharge
4676	of its duties. Upon the employment of any teacher to whom this
4677	chapter may apply, the teacher shall be informed by his or her
4678	employer of his or her duties and obligations in connection with
4679	the retirement system as a condition of his or her employment.
4680	Every teacher accepting employment shall be deemed to consent
4681	and agree to any deductions from his or her compensation
4682	required in this chapter and to all other provisions of this
4683	chapter.
4684	(2) During September of each year, or at such other time
4685	as the divisiondepartmentshall approve, each employer shall
4686	certify to the divisiondepartmentthe names of all teachers to
4687	whom this chapter applies.
4688	(3) Each employer shall, on the first day of each calendar
4689	month, or at such less frequent intervals as the division
4690	department may approve, notify the divisiondepartmentof the
4691	employment of new teachers, removals, withdrawals and changes in
4692	salary of members that have occurred during the preceding month,
4693	or the period covered since the last notification.
4694	Section 71. Section 238.14, Florida Statutes, is amended
4695	to read:
4696	238.14 Protection against fraud.--Any person who shall
4697	knowingly make any false statement, or shall falsify or permit
4698	to be falsified any record or records of this retirement system
4699	in any attempt to defraud such system as a result of such act,
4700	shall be guilty of a misdemeanor of the second degree,
4701	punishable as provided in s. 775.082 or s. 775.083. Should any
4702	change or error in records result in any member or beneficiary
4703	receiving from the retirement system more or less than he or she
4704	would have been entitled to receive had the records been
4705	correct, then on discovery of any such error the division
4706	departmentshall correct such error, and, as far as practicable,
4707	shall adjust the payments in such a manner that the actuarial
4708	equivalent of the benefit, to which such member or beneficiary
4709	was correctly entitled, shall be paid.
4710	Section 72. Section 238.15, Florida Statutes, is amended
4711	to read:
4712	238.15 Exemption of funds from taxation, execution, and
4713	assignment.--The pensions, annuities or any other benefits
4714	accrued or accruing to any person under the provisions of this
4715	chapter and the accumulated contributions and cash securities in
4716	the funds created under this chapter are exempted from any
4717	state, county or municipal tax of the state, and shall not be
4718	subject to execution or attachment or to any legal process
4719	whatsoever, and shall be unassignable, except:
4720	(1) That any teacher who has retired shall have the right
4721	and power to authorize in writing the divisionDepartment of
4722	Management Servicesto deduct from his or her monthly retirement
4723	allowance money for the payment of the premiums on group
4724	insurance for hospital, medical and surgical benefits, under a
4725	plan or plans for such benefits approved in writing by the
4726	Insurance Commissioner and Treasurer of the state, and upon
4727	receipt of such request the divisiondepartmentshall make the
4728	monthly payments as directed; and
4729	(2) As may be otherwise specifically provided for in this
4730	chapter.
4731	Section 73. Paragraph (a) of subsection (3) of section
4732	238.171, Florida Statutes, is amended to read:
4733	238.171 Monthly allowance; when made.--
4734	(3)(a) On July 1, 1974, the Department of Management
4735	Servicesdirector of the Division of Retirementshall adjust the
4736	monthly allowance provided for incapacitated teachers under this
4737	section by increasing said allowance by a percentage which shall
4738	be equal to the percentage change in the average cost-of-living
4739	index, as defined in chapter 121, over the period between April
4740	1, 1967, and March 31, 1973. The percent of increase, as of July
4741	1, 1974, shall be 25.4 percent, which is the average cost-of-
4742	living increase percentage from April 1, 1967, through March 31,
4743	1973.
4744	Section 74. Subsection (2) of section 238.181, Florida
4745	Statutes, is amended to read:
4746	238.181 Reemployment after retirement; conditions and
4747	limitations.--
4748	(2)(a) Any person retired under this chapter, except under
4749	the disability retirement provisions of s. 238.07, may be
4750	reemployed by any private or public employer after retirement
4751	and receive retirement benefits and compensation from his or her
4752	employer without limitation, except that no person may receive
4753	both a salary from reemployment with any agency participating in
4754	the Florida Retirement System and retirement benefits under this
4755	chapter for a period of 12 months immediately subsequent to the
4756	date of retirement.
4757	(b) Any person to whom the limitation in paragraph (a)
4758	applies who violates such reemployment limitation and who is
4759	reemployed with any agency participating in the Florida
4760	Retirement System before completion of the 12-month limitation
4761	period shall give timely notice of this fact in writing to his
4762	or her employer and to the divisionDepartment of Management
4763	Servicesand shall have his or her retirement benefits suspended
4764	for the balance of the 12-month limitation period. Any person
4765	employed in violation of this paragraph and any employing agency
4766	which knowingly employs or appoints such person without
4767	notifying the divisiondepartmentto suspend retirement benefits
4768	shall be jointly and severally liable for reimbursement to the
4769	retirement trust fund of any benefits paid during the
4770	reemployment limitation period. To avoid liability, such
4771	employing agency shall have a written statement from the retiree
4772	that he or she is not retired from a state-administered
4773	retirement system. Any retirement benefits received while
4774	reemployed during this reemployment limitation period shall be
4775	repaid to the retirement trust fund, and retirement benefits
4776	shall remain suspended until such repayment has been made.
4777	Benefits suspended beyond the reemployment limitation shall
4778	apply toward repayment of benefits received in violation of the
4779	reemployment limitation.
4780	(c) A district school board may reemploy a retired member
4781	as a substitute or hourly teacher on a noncontractual basis
4782	after he or she has been retired for 1 calendar month, in
4783	accordance with s. 121.021(39). Any retired member who is
4784	reemployed within 1 calendar month after retirement shall void
4785	his or her application for retirement benefits. District school
4786	boards reemploying such teachers are subject to the retirement
4787	contribution required by paragraph (g). Reemployment of a
4788	retired member as a substitute or hourly teacher is limited to
4789	780 hours during the first 12 months of his or her retirement.
4790	Any retired member reemployed for more than 780 hours during his
4791	or her first 12 months of retirement shall give timely notice in
4792	writing to his or her employer and to the divisiondepartmentof
4793	the date he or she will exceed the limitation. The division
4794	departmentshall suspend his or her retirement benefits for the
4795	remainder of his or her first 12 months of retirement. Any
4796	person employed in violation of this paragraph and any employing
4797	agency which knowingly employs or appoints such person without
4798	notifying the divisiondepartmentto suspend retirement benefits
4799	shall be jointly and severally liable for reimbursement to the
4800	retirement trust fund of any benefits paid during the
4801	reemployment limitation period. To avoid liability, such
4802	employing agency shall have a written statement from the retiree
4803	that he or she is not retired from a state-administered
4804	retirement system. Any retirement benefits received by a retired
4805	member while reemployed in excess of 780 hours during his or her
4806	first 12 months of retirement shall be repaid to the Retirement
4807	System Trust Fund, and his or her retirement benefits shall
4808	remain suspended until repayment is made. Benefits suspended
4809	beyond the end of the retired member's first 12 months of
4810	retirement shall apply toward repayment of benefits received in
4811	violation of the 780-hour reemployment limitation.
4812	(d) A community college board of trustees may reemploy a
4813	retired member as an adjunct instructor, that is, an instructor
4814	who is noncontractual and part time, or as a participant in a
4815	phased retirement program within a community college, after he
4816	or she has been retired for 1 calendar month, in accordance with
4817	s. 121.021(39). Any retired member who is reemployed within 1
4818	calendar month after retirement shall void his or her
4819	application for retirement benefits. Boards of trustees
4820	reemploying such instructors are subject to the retirement
4821	contribution required in paragraph (g). A retired member may be
4822	reemployed as an adjunct instructor for no more than 780 hours
4823	during the first 12 months of his or her retirement. Any retired
4824	member reemployed for more than 780 hours during his or her
4825	first 12 months of retirement shall give timely notice in
4826	writing to his or her employer and to the divisiondepartmentof
4827	the date he or she will exceed the limitation. The division
4828	departmentshall suspend his or her retirement benefits for the
4829	remainder of his or her first 12 months of retirement. Any
4830	person employed in violation of this paragraph and any employing
4831	agency which knowingly employs or appoints such person without
4832	notifying the divisiondepartmentto suspend retirement benefits
4833	shall be jointly and severally liable for reimbursement to the
4834	retirement trust fund of any benefits paid during the
4835	reemployment limitation period. To avoid liability, such
4836	employing agency shall have a written statement from the retiree
4837	that he or she is not retired from a state-administered
4838	retirement system. Any retirement benefits received by a retired
4839	member while reemployed in excess of 780 hours during his or her
4840	first 12 months of retirement shall be repaid to the Retirement
4841	System Trust Fund, and retirement benefits shall remain
4842	suspended until repayment is made. Benefits suspended beyond the
4843	end of the retired member's first 12 months of retirement shall
4844	apply toward repayment of benefits received in violation of the
4845	780-hour reemployment limitation.
4846	(e) The Board of Trustees of the Florida School for the
4847	Deaf and the Blind may reemploy a retired member as a substitute
4848	teacher, substitute residential instructor, or substitute nurse
4849	on a noncontractual basis after he or she has been retired for 1
4850	calendar month, in accordance with s. 121.021(39). Any retired
4851	member who is reemployed within 1 calendar month after
4852	retirement shall void his or her application for retirement
4853	benefits. The Board of Trustees of the Florida School for the
4854	Deaf and the Blind reemploying such teachers, residential
4855	instructors, or nurses is subject to the retirement contribution
4856	required by paragraph (g). Reemployment of a retired member as a
4857	substitute teacher, substitute residential instructor, or
4858	substitute nurse is limited to 780 hours during the first 12
4859	months of his or her retirement. Any retired member reemployed
4860	for more than 780 hours during his or her first 12 months of
4861	retirement shall give timely notice in writing to his or her
4862	employer and to the divisiondepartmentof the date he or she
4863	will exceed the limitation. The divisiondepartmentshall
4864	suspend his or her retirement benefits for the remainder of his
4865	or her first 12 months of retirement. Any person employed in
4866	violation of this paragraph and any employing agency which
4867	knowingly employs or appoints such person without notifying the
4868	divisiondepartmentto suspend retirement benefits shall be
4869	jointly and severally liable for reimbursement to the retirement
4870	trust fund of any benefits paid during the reemployment
4871	limitation period. To avoid liability, such employing agency
4872	shall have a written statement from the retiree that he or she
4873	is not retired from a state-administered retirement system. Any
4874	retirement benefits received by a retired member while
4875	reemployed in excess of 780 hours during his or her first 12
4876	months of retirement shall be repaid to the Retirement System
4877	Trust Fund, and his or her retirement benefits shall remain
4878	suspended until payment is made. Benefits suspended beyond the
4879	end of the retired member's first 12 months of retirement shall
4880	apply toward repayment of benefits received in violation of the
4881	780-hour reemployment limitation.
4882	(f) The State University System may reemploy a retired
4883	member as an adjunct faculty member or as a participant in a
4884	phased retirement program within the State University System
4885	after the retired member has been retired for 1 calendar month,
4886	in accordance with s. 121.021(39). Any retired member who is
4887	reemployed within 1 calendar month after retirement shall void
4888	his or her application for retirement benefits. The State
4889	University System is subject to the retired contribution
4890	required in paragraph (g), as appropriate. A retired member may
4891	be reemployed as an adjunct faculty member or a participant in a
4892	phased retirement program for no more than 780 hours during the
4893	first 12 months of his or her retirement. Any retired member
4894	reemployed for more than 780 hours during his or her first 12
4895	months of retirement shall give timely notice in writing to his
4896	or her employer and to the divisiondepartmentof the date he or
4897	she will exceed the limitation. The divisiondepartmentshall
4898	suspend his or her retirement benefits for the remainder of his
4899	or her first 12 months of retirement. Any person employed in
4900	violation of this paragraph and any employing agency which
4901	knowingly employs or appoints such person without notifying the
4902	divisiondepartmentto suspend retirement benefits shall be
4903	jointly and severally liable for reimbursement to the retirement
4904	trust fund of any benefits paid during the reemployment
4905	limitation period. To avoid liability, such employing agency
4906	shall have a written statement from the retiree that he or she
4907	is not retired from a state-administered retirement system. Any
4908	retirement benefits received by a retired member while
4909	reemployed in excess of 780 hours during his or her first 12
4910	months of retirement shall be repaid to the Retirement System
4911	Trust Fund, and retirement benefits shall remain suspended until
4912	repayment is made. Benefits suspended beyond the end of the
4913	retired member's first 12 months of retirement shall apply
4914	toward repayment of benefits received in violation of the 780-
4915	hour reemployment limitation.
4916	(g) The employment by an employer of any retiree of a
4917	state-administered retirement system shall have no effect on the
4918	average final compensation or years of creditable service of
4919	such retiree. Prior to July 1, 1991, upon employment of any
4920	person, other than an elected officer as provided in s. 121.053,
4921	who has been retired under any state-administered retirement
4922	program, the employer shall pay retirement contributions in an
4923	amount equal to the unfunded actuarial accrued liability portion
4924	of the employer contribution which would be required for a
4925	regular member of the Florida Retirement System. Effective July
4926	1, 1991, contributions shall be made as provided in s. 121.122
4927	for renewed membership.
4928	(h) The limitations of this subsection apply to
4929	reemployment in any capacity with an "employer" as defined in s.
4930	121.021(10), irrespective of the category of funds from which
4931	the person is compensated.
4932	Section 75. Section 238.32, Florida Statutes, is amended
4933	to read:
4934	238.32 Service credit in disputed cases.--The division
4935	Department of Management Servicesmay in its discretion allow or
4936	deny a member service credit in disputed or doubtful cases for
4937	employment in Florida and out-of-state schools in order to serve
4938	the best interests of the state and the member, subject to the
4939	membership dates set forth in s. 238.06(4).
4940	Section 76. Subsection (4) of section 650.02, Florida
4941	Statutes, is amended to read:
4942	650.02 Definitions.--For the purpose of this chapter:
4943	(4) The term "state agency" means the Division of
4944	Retirement of the State Board of AdministrationDepartment of
4945	Management Services.
4946	Section 77. Subsection (1) of section 650.06, Florida
4947	Statutes, is amended to read:
4948	650.06 Social Security Contribution Trust Fund.--
4949	(1) There is hereby established in the State Treasury to
4950	be administered by the State Board of Administrationa special
4951	fund to be known as the "Social Security Contribution Trust
4952	Fund." Such fund shall consist of and there shall be deposited
4953	in such fund:
4954	(a) All contributions, interest, and penalties collected
4955	under ss. 650.04 and 650.05;
4956	(b) All moneys appropriated thereto under this chapter;
4957	(c) Any property or securities and earnings thereof
4958	acquired through the use of moneys belonging to the fund;
4959	(d) Interest earned upon any moneys in the fund; and
4960	(e) All sums recovered upon the bond of the custodian or
4961	otherwise for losses sustained by the fund and all other moneys
4962	received for the fund from any other source. All moneys in the
4963	fund shall be mingled and undivided. Subject to the provisions
4964	of this chapter, the state agency is vested with full power,
4965	authority and jurisdiction over the fund, including all moneys
4966	and property or securities belonging thereto, and may perform
4967	any and all acts whether or not specifically designated, which
4968	are necessary to the administration thereof and are consistent
4969	with the provisions of this chapter.
4970	Section 78. The Department of Management Services may
4971	contract with the State Board of Administration to administer
4972	sections 112.05, 121.1815, 238.171, 250.22, and 112.351-112.362,
4973	Florida Statutes.
4974	Section 79. The Division of Retirement of the State Board
4975	of Administration is a state agency for the purpose of making
4976	payments under the retirement plans and other benefit programs
4977	administered by the board and the Division of Retirement. The
4978	Department of Financial Services shall issue benefit payments to
4979	persons or governmental entities eligible for such payments
4980	under the retirement plans and other benefit programs
4981	administered by the board and the Division of Retirement. The
4982	board is authorized to requisition the appropriate amounts from
4983	trust funds in the State Treasury established for this purpose.
4984	Section 80. Subsections (1) and (6) of section 122.02,
4985	Florida Statutes, are amended to read:
4986	122.02 Definitions.--The following words and phrases as
4987	used in this chapter shall have the following meaning unless a
4988	different meaning is plainly required by the context:
4989	(1) "State and county officers and employees" shall
4990	include all full-time officers or employees who receive
4991	compensation for services rendered from state or county funds,
4992	or from funds of drainage districts or mosquito control
4993	districts of a county or counties, or from funds of the State
4994	Board of Administration or from funds of closed bank
4995	receivership accounts or from funds of any state institution or
4996	who receive compensation for employment or service from any
4997	agency, branch, department, institution or board of the state,
4998	or any county of the state, for service rendered the state or
4999	county from funds from any source provided for their employment
5000	or service regardless of whether the same is paid by state or
5001	county warrant or not; provided that such compensation in
5002	whatever form paid shall be specified in terms of fixed monthly
5003	salaries by the employing state or county agency or state or
5004	county official and shall not include amounts allowed for
5005	professional employees for special or particular service or for
5006	subsistence or travel expenses; provided further the division
5007	departmentshall prescribe appropriate procedure for
5008	contribution deduction out of such compensation in accordance
5009	with the provisions of this chapter, provided further that such
5010	officers and employees defined herein shall not include those
5011	officers and employees excepted from the provisions by s. 122.18
5012	of this law.
5013	(6) "Division" means the Division of Retirement of the
5014	State Board of Administration"Department" means the Department
5015	of Management Services.
5016	Section 81. Paragraph (d) of subsection (6) and subsection
5017	(9) of section 122.03, Florida Statutes, are amended to read:
5018	122.03 Contributions; participants; prior service
5019	credit.--
5020	(6) Any officer or employee who held office or was
5021	employed by the state or a county of the state continuously from
5022	May 1, 1959, and who has not previously received credit for, or
5023	is not eligible to claim credit for, prior years of service
5024	under subsection (2); or any officer or employee who holds
5025	office or is employed by the state or a county of the state on
5026	June 1, 1961, and is continuously employed; or any officer or
5027	employee who holds office or is employed by the state or county
5028	of the state after June 1, 1961, and who is continuously
5029	employed for 3 years, during which period of time no back
5030	payments may be made:
5031	(d) Prior service allowance may be made only for those
5032	periods in which state or county records of service and salary
5033	are available, or at least three affidavits and such other
5034	information as might be required by the divisiondepartmentto
5035	meet the provisions of this law.
5036	(9) The surviving spouse or other dependent of any member
5037	whose employment is terminated by death shall, upon application
5038	to the divisiondepartment, be permitted to pay the required
5039	contributions for any service performed by the member which
5040	could have been claimed by the member at the time of death. Such
5041	service shall be added to the creditable service of the member
5042	and shall be used in the calculation of any benefits which may
5043	be payable to the surviving spouse or other surviving dependent.
5044	Section 82. Subsection (2) of section 122.05, Florida
5045	Statutes, is amended to read:
5046	122.05 Legislator services included.--
5047	(2) The divisiondepartmentand state officials
5048	administering suchsaidretirement system shall make the
5049	contribution deductions required by law from the compensation
5050	hereafter received by any of the saidparticipating members of
5051	the Legislature for service rendered the State Legislature in
5052	the same manner as in the case of other state employment.
5053	Section 83. Subsection (2) of section 122.06, Florida
5054	Statutes, is amended to read:
5055	122.06 Legislative employee services included.--
5056	(2) The divisiondepartmentand other state officials
5057	administering said retirement system shall make the contribution
5058	deductions required by law from the compensation hereafter
5059	received by any of the said participating attaches for service
5060	rendered the State Legislature in the same manner as in the case
5061	of other state employment.
5062	Section 84. Subsection (2) of section 122.07, Florida
5063	Statutes, is amended to read:
5064	122.07 Seasonal state employment included; time limit and
5065	procedure for claiming.--
5066	(2) Any state employee as described in subsection (1) in
5067	the classification set forth in s. 122.01 may elect to receive
5068	credit as a state employee under the State and County Officers
5069	and Employees' Retirement System by providing to the division
5070	departmenta statement from the state in which he or she was
5071	employed, listing days employed and monthly earnings and such
5072	other information as may, in the opinion of the division
5073	department, be necessary or appropriate in the carrying out of
5074	this section. Credit shall be granted upon payment to the
5075	divisiondepartmentby such employee of an amount equal to the
5076	total retirement contribution that would have been required had
5077	the member worked in this state during the period based on the
5078	salary drawn by such employee during his or her last full month
5079	of employment by the state or any department thereof for each
5080	month during said fiscal year for which such employee was not
5081	employed by the state or any department thereof, but was
5082	employed by some other state, plus interest compounded annually
5083	each June 30 from the date of the service in another state to
5084	the date of payment at the rate of 4 percent until July 1, 1975,
5085	and 6.5 percent thereafter. The member shall have until his or
5086	her date of retirement to claim and purchase credit for such
5087	employment in another state.
5088	Section 85. Paragraph (a) of subsection (1), paragraph (b)
5089	of subsection (4), and subsections (5) and (9) of section
5090	122.08, Florida Statutes, are amended to read:
5091	122.08 Requirements for retirement;
5092	classifications.--There shall be two retirement classifications
5093	for all state and county officers and employees participating
5094	herein as hereafter provided in this section:
5095	(1)(a) Any state or county officer or employee who has
5096	attained normal retirement age, which shall be age 60 for a
5097	person who had become a member prior to July 1, 1963, and age 62
5098	for a person who had or shall become a member on or after July
5099	1, 1963, and has accumulated at least 10 years' service in the
5100	aggregate within the contemplation of this law, and who has made
5101	or makes contributions to the State and County Officers and
5102	Employees' Retirement Trust Fund for 5 or more years as
5103	prescribed in this law, may voluntarily retire from office or
5104	employment and be entitled to receive retirement compensation,
5105	the amount of which shall be 2 percent for each year of service
5106	rendered, based upon the average final compensation, payable in
5107	equal monthly installments, upon his or her own requisition.
5108	Requisition requirements shall be set by the division
5109	department.
5110	(4)
5111	(b) A member who elects an option in paragraph (a) shall
5112	on a form provided for that purpose designate his or her spouse
5113	as beneficiary to receive the benefits which continue to be
5114	payable upon the death of the member. After such benefits have
5115	commenced under an option in paragraph (a), the retired member
5116	may change the designation of his or her spouse as beneficiary
5117	only twice. If such a retired member remarries and wishes to
5118	make such a change, he or she may do so by filing with the
5119	divisiondepartmenta notarized change of spouse designation
5120	form and shall notify the former spouse in writing of such
5121	change. Upon receipt of a completed change of spouse designation
5122	form, the divisiondepartmentshall adjust the member's monthly
5123	benefit by the application of actuarial tables and calculations
5124	developed to ensure that the benefit paid is the actuarial
5125	equivalent of the present value of the member's current benefit.
5126	The consent of a retired member's formerly designated spouse as
5127	beneficiary to any such change shall not be required.
5128	(5) Tables for computing the actuarial equivalent shall be
5129	approved by the divisiondepartment.
5130	(9) Notwithstanding any other provision in this chapter to
5131	the contrary, the following provisions shall apply to any
5132	officer or employee who has accumulated at least 10 years of
5133	service and dies:
5134	(a) If the deceased member's surviving spouse has
5135	previously received a refund of the member's contributions made
5136	to the retirement trust fund, such spouse may pay to the
5137	divisiondepartmentan amount equal to the sum of the amount of
5138	the deceased member's contributions previously refunded and
5139	interest at 3 percent compounded annually on the amount of such
5140	refunded contributions from the date of refund until July 1,
5141	1975, and thereafter at the rate of 6.5 percent interest
5142	compounded annually to the date of payment to the division
5143	department, and by so doing be entitled to receive the monthly
5144	retirement benefit provided in paragraph (c).
5145	(b) If the deceased member's surviving spouse has not
5146	received a refund of the deceased member's contributions, such
5147	spouse shall, upon application to the divisiondepartment,
5148	receive the monthly retirement benefit provided in paragraph
5149	(c).
5150	(c) The monthly benefit payable to the spouse described in
5151	paragraph (a) or paragraph (b) shall be the amount which would
5152	have been payable to the deceased member's spouse, assuming that
5153	the member retired on the date of death and had selected the
5154	option in subsection (4) which would afford the surviving spouse
5155	the greatest amount of benefits, such benefit to be based on the
5156	ages of the spouse and member as of the date of death of the
5157	member. Such benefit shall commence on the first day of the
5158	month following the payment of the aforesaid amount to the
5159	divisiondepartment, if paragraph (a) is applicable, or on the
5160	first day of the month following the receipt of the spouse's
5161	application by the divisiondepartment, if paragraph (b) is
5162	applicable.
5163	Section 86. Section 122.09, Florida Statutes, is amended
5164	to read:
5165	122.09 Disability retirement; medical
5166	examinations.--Whenever any officer or employee of the state or
5167	county of the state has service credit as such officer or
5168	employee for 10 years within the contemplation of this law, the
5169	last 5 years of which, except for a single break not to exceed 1
5170	year, must be continuous, unbroken service and who is regularly
5171	contributing to the State and County Officers and Employees'
5172	Retirement Trust Fund and shall while holding such office or
5173	employment become permanently and totally disabled, physically
5174	or mentally, or both, from rendering useful and efficient
5175	service as such officer or employee, such officer or employee
5176	may retire from his or her office or employment, and upon such
5177	retirement the officer or employee shall be paid, so long as the
5178	permanent and total disability continues, on his or her own
5179	monthly requisition, from the State and County Officers and
5180	Employees' Retirement Trust Fund hereinafter established,
5181	retirement compensation as provided in s. 122.08; provided that
5182	no officer or employee retiring under this section shall receive
5183	less than 50 percent of his or her average final compensation
5184	not to exceed $75. No officer or employee of the state and
5185	county of the state shall be permitted to retire under the
5186	provisions of this section until examined by a duly qualified
5187	physician or surgeon or board of physicians and surgeons, to be
5188	selected by the Governor for that purpose, and found to be
5189	disabled in the degree and in the manner specified in this
5190	section. Any officer or employee retiring under this section
5191	shall be examined periodically by a duly qualified physician or
5192	surgeon or board of physicians and surgeons to be selected by
5193	the Governor for that purpose and paid from the retirement trust
5194	fund herein provided for, at such time as the division
5195	Department of Management Servicesshall direct to determine if
5196	such total disability has continued and in the event it be
5197	disclosed by said examination that said total disability has
5198	ceased to exist, then such officer or employee shall forthwith
5199	cease to be paid benefits under this section. Reference to s.
5200	122.08 is for the purpose of computing benefits only. Any person
5201	heretofore retired under this section shall be eligible to
5202	qualify for the minimum benefits provided herein; however,
5203	minimum benefits shall not be paid retroactively.
5204	Section 87. Subsection (4) of section 122.10, Florida
5205	Statutes, is amended to read:
5206	122.10 Separation from service; refund of contributions.--
5207	(4) Should any officer or employee elect to receive a
5208	refund as provided in this section, his or her application for
5209	refund shall be submitted in the manner prescribed by the
5210	regulations adopted by the divisiondepartmentand shall
5211	accompany the payroll certification, submitted to the division
5212	department, on which he or she was last paid prior to
5213	termination. The divisiondepartmentshall pay the entire refund
5214	due within 45 days after the first day of the month subsequent
5215	to receipt of such application for refund and said payroll
5216	certification.
5217	Section 88. Subsection (1) of section 122.12, Florida
5218	Statutes, is amended to read:
5219	122.12 Designation of beneficiary; death of participant;
5220	forfeiture of contributions after benefits paid; survivor
5221	benefits.--
5222	(1) Any officer or employee may file, in writing, a
5223	designation of beneficiary and it shall be the duty of the
5224	divisiondepartmentto refund 100 percent, without interest, of
5225	the contributions made to the retirement trust fund by such
5226	deceased officer or employee to such designated beneficiary.
5227	The officer or employee shall have the privilege of changing, in
5228	writing, the designated beneficiary at any time. Upon failure to
5229	designate a beneficiary, the refund shall be made to the persons
5230	in the same order as designated in s. 222.15, for wages due
5231	deceased employees. If the deceased officer or employee has
5232	received any benefits under this law, no refund shall be made
5233	unless such officer or employee has elected to accept benefits
5234	under s. 122.08(3) or (4).
5235	Section 89. Section 122.13, Florida Statutes, is amended
5236	to read:
5237	122.13 Administration of law; appropriation.--The division
5238	departmentshall make such rules as are necessary for the
5239	effective administration of this chapter, and the cost is hereby
5240	annually appropriated and shall be paid into the State and
5241	County Officers and Employees' Retirement Trust Fund out of the
5242	Intangible Tax Fund in the State Treasury in the amount
5243	necessary to administer efficiently the state and county
5244	retirement law. At the end of each fiscal year, beginning with
5245	fiscal year 1959-1960, the administrative cost of the state and
5246	county retirement system for the fiscal year just ended shall be
5247	refunded to the General Revenue Fund from interest earned on
5248	investments made subsequent to June 30, 1959.
5249	Section 90. Subsection (2) of section 122.15, Florida
5250	Statutes, is amended to read:
5251	122.15 Benefits exempt from taxes and execution.--
5252	(2) This subsection shall have no effect upon this section
5253	except that the divisiondepartmentmay, upon written request
5254	from the retired member, deduct premiums for group
5255	hospitalization insurance from the retirement benefit paid such
5256	retired member.
5257	Section 91. Paragraph (b) of subsection (2) of section
5258	122.16, Florida Statutes, is amended to read:
5259	122.16 Employment after retirement.--
5260	(2)
5261	(b) Any person to whom the limitation in paragraph (a)
5262	applies who violates such reemployment limitation and is
5263	reemployed with any agency participating in the Florida
5264	Retirement System prior to completion of the 12-month limitation
5265	period shall give timely notice of this fact in writing to his
5266	or her employer and to the divisiondepartment; and his or her
5267	retirement benefits shall be suspended for the balance of the
5268	12-month limitation period. Any person employed in violation of
5269	this subsection and any employing agency which knowingly employs
5270	or appoints such person without notifying the division
5271	departmentto suspend retirement benefits shall be jointly and
5272	severally liable for reimbursement to the retirement trust fund
5273	of any benefits paid during the reemployment limitation period.
5274	To avoid liability, such employing agency shall have a written
5275	statement from the retiree that he or she is not retired from a
5276	state-administered retirement system. Any retirement benefits
5277	received by such person while he or she is reemployed during
5278	this reemployment limitation period shall be repaid to the
5279	retirement trust fund, and his or her retirement benefits shall
5280	remain suspended until such repayment has been made. Any
5281	benefits suspended beyond the reemployment limitation period
5282	shall apply toward the repayment of benefits received in
5283	violation of the reemployment limitation.
5284	Section 92. Subsection (3) of section 122.23, Florida
5285	Statutes, is amended to read:
5286	122.23 Definitions; ss. 122.21-122.321.--In addition to
5287	those definitions set forth in s. 122.02 the following words and
5288	phrases used in ss. 122.21-122.24, 122.26 to 122.321, inclusive,
5289	have the respective meanings set forth:
5290	(3) "Division" means the Division of Retirement of the
5291	State Board of Administration"Department" means the Department
5292	of Management Services.
5293	Section 93. Subsections (1) and (5) of section 122.30,
5294	Florida Statutes, are amended to read:
5295	122.30 Appropriations.--
5296	(1) There is hereby annually appropriated from the
5297	intangible tax fund of the state to the divisiondepartmentas
5298	the state agency designated in chapter 650, a sum not to exceed
5299	$10,000 to defray the expenses of such agency in connection with
5300	its continuing duties in relation to the social security
5301	coverage provided by this law.
5302	(5) In addition to amounts appropriated by other
5303	provisions of this chapter or other laws to defray cost of
5304	administration of this system, there is hereby appropriated out
5305	of the Intangible Tax Fund of the state for use of the division
5306	departmentin its administration of the two divisions of this
5307	system, the sum of $100,000, or so much thereof as may be
5308	required for that purpose.
5309	Section 94. Paragraphs (b) and (c) of subsection (1) and
5310	subsection (11) of section 122.34, Florida Statutes, are amended
5311	to read:
5312	122.34 Special provisions for certain sheriffs and full-
5313	time deputy sheriffs.--
5314	(1)
5315	(b) Only those members who are full-time criminal law
5316	enforcement officers or agents, as certified by the employing
5317	authority, who perform duties according to rule, order, or
5318	established custom as full-time criminal law enforcement
5319	officers or agents shall be certified to the divisiondepartment
5320	as high hazard members, and only such members will be approved
5321	by the divisiondepartment.
5322	(c) The divisiondepartmentshall make such rules as are
5323	necessary for the effective administration of the intent of this
5324	section.
5325	(11) No high hazard member shall be permitted to receive
5326	benefits under this section until examined by a duly qualified
5327	physician or surgeon, or board of physicians and surgeons, to be
5328	selected by the Governor for that purpose, and found to be
5329	disabled in the degree and in the manner specified in this
5330	section. At such time as the divisionDepartment of Management
5331	Servicesdirects, any high hazard member receiving disability
5332	benefits under this section shall submit to a medical
5333	examination to determine if such disability has continued, and
5334	the cost of such examination shall be paid from the retirement
5335	trust fund herein provided for; and in the event it is declared
5336	by said examination that said disability has cleared, such
5337	member shall be ordered to return to active duty with the same
5338	rank and salary that he or she had at the time of disability.
5339	Any such member who shall fail to return to duty following such
5340	order shall forfeit all rights and claims under this law. Every
5341	high hazard member retiring under this provision shall be paid
5342	so long as the member's permanent total or partial disability
5343	continues, on his or her own requisition.
5344	Section 95. Section 122.351, Florida Statutes, is amended
5345	to read:
5346	122.351 Funding by local agencies.--Commencing on July 1,
5347	1969, all county and local agencies covered under the provisions
5348	of s. 122.35 shall accumulate and be responsible for the payment
5349	of social security and retirement matching costs as required
5350	under s. 122.35, from the intangible tax allocation of that
5351	county and any other source available to the local governmental
5352	units, except that all agencies, other than the school boards,
5353	shall be given credit for 50 percent of their 1967-1969 actual
5354	employer matching cost, actual cost being that cost in cash
5355	actually paid by the employer for matching retirement and social
5356	security into the fund by the agency for said biennium. The
5357	above credit of 50 percent shall be calculated by the division
5358	department.
5359	Section 96. The Department of Management Services shall,
5360	at the request of the Division of Retirement of the State Board
5361	of Administration, include within its annual budget request
5362	those general revenue appropriations necessary for providing
5363	retirement or other benefit payments to persons or governmental
5364	entities pursuant to ss. 112.05, 121.1815, 238.171, and 250.22,
5365	Florida Statutes, and any other provision of law authorizing or
5366	requiring general revenue funding for said purpose. The
5367	department shall transfer all moneys so appropriated into the
5368	Florida Retirement System Contributions Clearing Trust Fund
5369	created in s. 121.4503, Florida Statutes, wherefrom payments for
5370	said benefits and associated costs shall be made by the
5371	division.
5372	Section 97. This act shall take effect July 1, 2003.