HB 0587 2004
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, 112.363, 112.625, 112.63, 112.64,
9	112.658, 112.661, 112.665, 121.021, 121.025, 121.031,
10	121.051, 121.0511, 121.0515, 121.052, 121.055, 121.081,
11	121.085, 121.091, 121.095, 121.101, 121.111, 121.133,
12	121.135, 121.136, 121.1905, 121.192, 121.193, 121.22,
13	121.23, 121.24, 121.30, 121.35, 121.40, 121.45, 121.4501,
14	121.4503, 121.591, 121.5911, 121.72, 121.73, 121.74,
15	122.02, 122.03, 122.05, 122.06, 122.07, 122.08, 122.09,
16	122.10, 122.12, 122.13, 122.15, 122.16, 122.23, 122.30,
17	122.34, 122.351, 175.032, 175.121, 175.1215, 175.341,
18	185.02, 185.10, 185.105, 185.23, 215.20, 215.28, 215.44,
19	215.50, 215.52, 238.01, 238.02, 238.03, 238.05, 238.07,
20	238.08, 238.09, 238.10, 238.11, 238.12, 238.14, 238.15,
21	238.171, 238.181, 238.32, 650.02, 650.06, F.S., to conform
22	to such transfer; providing duties of the Department of
23	Financial Services with respect to issuing benefit
24	payments under retirement plans; providing an effective
25	date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1. The Division of Retirement of the Department of
30	Management Services is transferred to the State Board of
31	Administration. All powers, duties, functions, records,
32	personnel, property, and unexpended balances of appropriations,
33	allocations, and other funds relating to the Division of
34	Retirement are transferred by a type one transfer, as defined in
35	s. 20.06, Florida Statutes, to the State Board of
36	Administration. This act does not alter or amend the powers,
37	operations, or functions of the State Board of Administration
38	with respect to its duties, responsibilities, and authority
39	existing prior to the enactment of this legislation.
40	Section 2. Paragraphs (g) and (h) of subsection (2) of
41	section 20.22, Florida Statutes, are amended to read:
42	20.22 Department of Management Services.--There is created
43	a Department of Management Services.
44	(2) The following divisions and programs within the
45	Department of Management Services are established:
46	(g) Division of Retirement.
47	(g)(h)Division of State Group Insurance.
48	Section 3. Section 20.28, Florida Statutes, is amended to
49	read:
50	20.28 State Board of Administration.--The State Board of
51	Administration, continued by s. 4(e), Art. IV s. 9, Art. XIIof
52	the State Constitution, retains all of its powers, duties, and
53	functions as prescribed by law. There is established under the
54	State Board of Administration a Division of Retirement, which
55	shall be subject to the direction of the executive director of
56	the board who is the agency head of the division for purposes of
57	chapter 120.
58	Section 4. Paragraph (u) of subsection (2) of section
59	110.205, Florida Statutes, is amended to read:
60	110.205 Career service; exemptions.--
61	(2) EXEMPT POSITIONS.--The exempt positions that are not
62	covered by this part include the following:
63	(u) All officers and employees of the State Board of
64	Administration, including its Division of Retirement. The State
65	Board of Administration shall set the salaries and benefits of
66	these positions.
67	Section 5. Paragraph (b) of subsection (4) of section
68	112.05, Florida Statutes, is amended to read:
69	112.05 Retirement; cost-of-living adjustment; employment
70	after retirement.--
71	(4)
72	(b) Any person to whom the limitation in paragraph (a)
73	applies who violates such reemployment limitation and is
74	reemployed with any agency participating in the Florida
75	Retirement System prior to completion of the 12-month limitation
76	period shall give timely notice of this fact in writing to the
77	employer and to the Department of Management Services Division;
78	and the person's retirement benefits shall be suspended for the
79	balance of the 12-month limitation period. Any person employed
80	in violation of this subsection and any employing agency which
81	knowingly employs or appoints such person without notifying the
82	Department of Management Services to suspend retirement benefits
83	shall be jointly and severally liable for reimbursement to the
84	retirement trust fund of any benefits paid during the
85	reemployment limitation period. To avoid liability, such
86	employing agency shall have a written statement from the retiree
87	that he or she is not retired from a state-administered
88	retirement system. Any retirement benefits received by such
89	person while reemployed during this limitation period shall be
90	repaid to the retirement trust fund, and the retirement benefits
91	shall remain suspended until such repayment has been made. Any
92	benefits suspended beyond the reemployment limitation period
93	shall apply toward the repayment of benefits received in
94	violation of the reemployment limitation.
95	Section 6. Paragraph (d) of subsection (4) of section
96	112.3173, Florida Statutes, is amended to read:
97	112.3173 Felonies involving breach of public trust and
98	other specified offenses by public officers and employees;
99	forfeiture of retirement benefits.--
100	(4) NOTICE.--
101	(d) The Commission on Ethics shall forward any notice and
102	any other document received by it pursuant to this subsection to
103	the governing body of the public retirement system of which the
104	public officer or employee is a member or from which the public
105	officer or employee may be entitled to receive a benefit. When
106	called on by the Commission on Ethics, the Division of
107	Retirement of the State Board of Administration Department of
108	Management Servicesshall assist the commission in identifying
109	the appropriate public retirement system.
110	Section 7. Subsections (2), (4), (5), (7), and (8) of
111	section 112.363, Florida Statutes, are amended to read:
112	112.363 Retiree health insurance subsidy.--
113	(2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.--
114	(a) A person who is retired under a state-administered
115	retirement system, or a beneficiary who is a spouse or financial
116	dependent entitled to receive benefits under a state-
117	administered retirement system, is eligible for health insurance
118	subsidy payments provided under this section; except that
119	pension recipients under ss. 121.40, 238.07(16)(a), and 250.22,
120	recipients of health insurance coverage under s. 110.1232, or
121	any other special pension or relief act shall not be eligible
122	for such payments.
123	(b) For purposes of this section, a person is deemed
124	retired from a state-administered retirement system when he or
125	she terminates employment with all employers participating in
126	the Florida Retirement System as described in s. 121.021(39)
127	and:
128	1. For a participant of the Public Employee Optional
129	Retirement Program established under part II of chapter 121, the
130	participant meets the age or service requirements to qualify for
131	normal retirement as set forth in s. 121.021(29).
132	2. For a member of the Florida Retirement System defined
133	benefit program, or any employee who maintains creditable
134	service under both the defined benefit program and the Public
135	Employee Optional Retirement Program, the member begins drawing
136	retirement benefits from the defined benefit program of the
137	Florida Retirement System.
138	(c)1. Effective July 1, 2001, any person retiring on or
139	after such date as a member of the Florida Retirement System,
140	including any participant of the defined contribution program
141	administered pursuant to part II of chapter 121, must have
142	satisfied the vesting requirements for his or her membership
143	class under the Florida Retirement System defined benefit
144	program as administered under part I of chapter 121.
145	2. Notwithstanding the provisions of subparagraph 1., a
146	person retiring due to disability must either qualify for a
147	regular or in-line-of-duty disability benefit as provided in s.
148	121.091(4) or qualify for a disability benefit under a
149	disability plan established under part II of chapter 121, as
150	appropriate.
151	(d) Payment of the retiree health insurance subsidy shall
152	be made only after coverage for health insurance for the retiree
153	or beneficiary has been certified in writing to the Division of
154	Retirement of the State Board of Administration Department of
155	Management Services. Participation in a former employer's group
156	health insurance program is not a requirement for eligibility
157	under this section.
158	(e) Participants in the Senior Management Service Optional
159	Annuity Program as provided in s. 121.055(6) and the State
160	University System Optional Retirement Program as provided in s.
161	121.35 shall not receive the retiree health insurance subsidy
162	provided in this section. The employer of such participant shall
163	pay the contributions required in subsection (8) to the annuity
164	program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
165	applicable.
166	(4) PAYMENT OF RETIREE HEALTH INSURANCE
167	SUBSIDY.--Beginning January 1, 1988, any monthly retiree health
168	insurance subsidy amount due and payable under this section
169	shall be paid to retired members by the Division of Retirement
170	of the State Board of Administration Department of Management
171	Services or under the direction and control of the division
172	department.
173	(5) TRUST FUND ESTABLISHED.--There is hereby established a
174	trust fund in the state treasury to be entitled the Retiree
175	Health Insurance Subsidy Trust Fund, which shall be administered
176	by the State Board of Administration. Said trust fund shall be
177	used to account for all moneys received and disbursed pursuant
178	to this section. Should funding for the retiree health
179	insurance subsidy program fail to provide full benefits for all
180	participants, the benefits may be reduced or canceled at any
181	time.
182	(7) ADMINISTRATION OF SYSTEM.--The Division of Retirement
183	of the State Board of Administration Department of Management
184	Servicesmay adopt such rules and regulations as are necessary
185	for the effective and efficient administration of this section.
186	The cost of administration is shall beappropriated from the
187	trust fund.
188	(8) CONTRIBUTIONS.--For purposes of funding the insurance
189	subsidy provided by this section:
190	(a) Beginning October 1, 1987, the employer of each member
191	of a state-administered retirement plan shall contribute 0.24
192	percent of gross compensation each pay period.
193	(b) Beginning January 1, 1989, the employer of each member
194	of a state-administered retirement plan shall contribute 0.48
195	percent of gross compensation each pay period.
196	(c) Beginning January 1, 1994, the employer of each member
197	of a state-administered retirement plan shall contribute 0.56
198	percent of gross compensation each pay period.
199	(d) Beginning January 1, 1995, the employer of each member
200	of a state-administered retirement plan shall contribute 0.66
201	percent of gross compensation each pay period.
202	(e) Beginning July 1, 1998, the employer of each member of
203	a state-administered retirement plan shall contribute 0.94
204	percent of gross compensation each pay period.
205	(f) Beginning July 1, 2001, the employer of each member of
206	a state-administered plan shall contribute 1.11 percent of gross
207	compensation each pay period.
208
209	Such contributions shall be submitted to the Division of
210	Retirement of the State Board of Administration Department of
211	Management Servicesand deposited in the Retiree Health
212	Insurance Subsidy Trust Fund.
213	Section 8. Subsection (10) is added to section 112.625,
214	Florida Statutes, to read:
215	112.625 Definitions.--As used in this act:
216	(10) "Division" means the Division of Retirement of the
217	State Board of Administration.
218	Section 9. Subsections (2) and (4) of section 112.63,
219	Florida Statutes, are amended to read:
220	112.63 Actuarial reports and statements of actuarial
221	impact; review.--
222	(2) The frequency of actuarial reports must be at least
223	every 3 years commencing from the last actuarial report of the
224	plan or system or October 1, 1980, if no actuarial report has
225	been issued within the 3-year period prior to October 1, 1979.
226	The results of each actuarial report shall be filed with the
227	plan administrator within 60 days of certification. Thereafter,
228	the results of each actuarial report shall be made available for
229	inspection upon request. Additionally, each retirement system or
230	plan covered by this act which is not administered directly by
231	the division Department of Management Servicesshall furnish a
232	copy of each actuarial report to the division Department of
233	Management Serviceswithin 60 days after receipt from the
234	actuary. The requirements of this section are supplemental to
235	actuarial valuations necessary to comply with the requirements
236	of ss. 218.321 and 218.39.
237	(4) Upon receipt, pursuant to subsection (2), of an
238	actuarial report, or upon receipt, pursuant to subsection (3),
239	of a statement of actuarial impact, the division Department of
240	Management Servicesshall acknowledge such receipt, but shall
241	only review and comment on each retirement system's or plan's
242	actuarial valuations at least on a triennial basis. If the
243	division departmentfinds that the actuarial valuation is not
244	complete, accurate, or based on reasonable assumptions, or if
245	the division departmentdoes not receive the actuarial report or
246	statement of actuarial impact, the division departmentshall
247	notify the local government and request appropriate adjustment.
248	If, after a reasonable period of time, a satisfactory adjustment
249	is not made, the affected local government or the division
250	departmentmay petition for a hearing under the provisions of
251	ss. 120.569 and 120.57. If the administrative law judge
252	recommends in favor of the division department, the division
253	departmentshall perform an actuarial review or prepare the
254	statement of actuarial impact. The cost to the division
255	departmentof performing such actuarial review or preparing such
256	statement shall be charged to the governmental entity of which
257	the employees are covered by the retirement system or plan. If
258	payment of such costs is not received by the division department
259	within 60 days after receipt by the governmental entity of the
260	request for payment, the division departmentshall certify to
261	the Chief Financial Officer the amount due, and the Chief
262	Financial Officer shall pay such amount to the division
263	departmentfrom any funds payable to the governmental entity of
264	which the employees are covered by the retirement system or
265	plan. If the administrative law judge recommends in favor of the
266	local retirement system and the division departmentperforms an
267	actuarial review, the cost to the division departmentof
268	performing the actuarial review shall be paid by the division
269	department.
270	Section 10. Subsection (1) of section 112.64, Florida
271	Statutes, is amended to read:
272	112.64 Administration of funds; amortization of unfunded
273	liability.--
274	(1) Employee contributions shall be deposited in the
275	retirement system or plan at least monthly. Employer
276	contributions shall be deposited at least quarterly; however,
277	any revenues received from any source by an employer which are
278	specifically collected for the purpose of allocation for deposit
279	into a retirement system or plan shall be so deposited within 30
280	days of receipt by the employer. All employers and employees
281	participating in the Florida Retirement System and other
282	existing retirement systems which are administered by the
283	division Department of Management Servicesshall continue to
284	make contributions at least monthly.
285	Section 11. Subsections (1) and (3) of section 112.658,
286	Florida Statutes, are amended to read:
287	112.658 Office of Program Policy Analysis and Government
288	Accountability to determine compliance of the Florida Retirement
289	System.--
290	(1) The Office of Program Policy Analysis and Government
291	Accountability shall determine, through the examination of
292	actuarial reviews, financial statements, and the practices and
293	procedures of the Division of Retirement Department of
294	Management Services, the compliance of the Florida Retirement
295	System with the provisions of this act.
296	(3) The Office of Program Policy Analysis and Government
297	Accountability shall employ the same actuarial standards to
298	monitor the division Department of Management Services as the
299	division Department of Management Servicesuses to monitor local
300	governments.
301	Section 12. Subsections (9), (16), and (17) of section
302	112.661, Florida Statutes, are amended to read:
303	112.661 Investment policies.--Investment of the assets of
304	any local retirement system or plan must be consistent with a
305	written investment policy adopted by the board. Such policies
306	shall be structured to maximize the financial return to the
307	retirement system or plan consistent with the risks incumbent in
308	each investment and shall be structured to establish and
309	maintain an appropriate diversification of the retirement system
310	or plan's assets.
311	(9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy
312	shall require that, for each actuarial valuation, the board
313	determine the total expected annual rate of return for the
314	current year, for each of the next several years, and for the
315	long term thereafter. This determination must be filed promptly
316	with the division Department of Management Servicesand with the
317	plan's sponsor and the consulting actuary. The division
318	departmentshall use this determination only to notify the
319	board, the plan's sponsor, and consulting actuary of material
320	differences between the total expected annual rate of return and
321	the actuarial assumed rate of return.
322	(16) FILING OF INVESTMENT POLICY.--Upon adoption by the
323	board, the investment policy shall be promptly filed with the
324	division Department of Management Servicesand the plan's
325	sponsor and consulting actuary. The effective date of the
326	investment policy, and any amendment thereto, shall be the 31st
327	calendar day following the filing date with the plan sponsor.
328	(17) VALUATION OF ILLIQUID INVESTMENTS.--The investment
329	policy shall provide for the valuation of illiquid investments
330	for which a generally recognized market is not available or for
331	which there is no consistent or generally accepted pricing
332	mechanism. If those investments are utilized, the investment
333	policy must include the criteria set forth in s. 215.47(6),
334	except that submission to the Investment Advisory Council is not
335	required. The investment policy shall require that, for each
336	actuarial valuation, the board must verify the determination of
337	the fair market value for those investments and ascertain that
338	the determination complies with all applicable state and federal
339	requirements. The investment policy shall require that the board
340	disclose to the division Department of Management Servicesand
341	the plan's sponsor each such investment for which the fair
342	market value is not provided.
343	Section 13. Section 112.665, Florida Statutes, is amended
344	to read:
345	112.665 Duties of Division of Retirement Department of
346	Management Services.--
347	(1) The Division of Retirement Department of Management
348	Servicesshall:
349	(a) Gather, catalog, and maintain complete, computerized
350	data information on all public employee retirement systems or
351	plans in the state, based upon a review of audits, reports, and
352	other data pertaining to the systems or plans;
353	(b) Receive and comment upon all actuarial reviews of
354	retirement systems or plans maintained by units of local
355	government;
356	(c) Cooperate with local retirement systems or plans on
357	matters of mutual concern and provide technical assistance to
358	units of local government in the assessment and revision of
359	retirement systems or plans;
360	(d) Issue, by January 1 annually, a report to the
361	President of the Senate and the Speaker of the House of
362	Representatives, which report details division activities,
363	findings, and recommendations concerning all governmental
364	retirement systems. The report may include legislation proposed
365	to carry out such recommendations;
366	(e) Issue, by January 1 annually, a report to the Special
367	District Information Program of the Department of Community
368	Affairs that includes the participation in and compliance of
369	special districts with the local government retirement system
370	provisions in s. 112.63 and the state-administered retirement
371	system provisions as specified in part I of chapter 121; and
372	(f) Adopt reasonable rules to administer the provisions of
373	this part.
374	(2) The division departmentmay subpoena actuarial
375	witnesses, review books and records, hold hearings, and take
376	testimony. A witness shall have the right to be accompanied by
377	counsel.
378	Section 14. Subsections (4), (5), (32), and (36) and
379	paragraph (a) of subsection (39) of section 121.021, Florida
380	Statutes, are amended, and subsection (62) is added to said
381	section, to read:
382	121.021 Definitions.--The following words and phrases as
383	used in this chapter have the respective meanings set forth
384	unless a different meaning is plainly required by the context:
385	(4) "Division Department" means the Division of Retirement
386	of the State Board of Administration Department of Management
387	Services.
388	(5) "Administrator" means the executive director of the
389	State Board of Administration secretary of the Department of
390	Management Services.
391	(32) "State agency" means the Division of Retirement
392	Department of Management Serviceswithin the provisions and
393	contemplation of chapter 650.
394	(36) "System Trust Fund" means the trust fund established
395	in the State Treasury by this chapter and administered by the
396	State Board of Administrationfor the purpose of holding and
397	investing the contributions paid by members and employers and
398	paying the benefits to which members or their beneficiaries may
399	become entitled. Other trust funds may be established in the
400	State Treasury to administer the "System Trust Fund."
401	(39)(a) "Termination" occurs, except as provided in
402	paragraph (b), when a member ceases all employment relationships
403	with employers under this system, as defined in subsection (10),
404	but in the event a member should be employed by any such
405	employer within the next calendar month, termination shall be
406	deemed not to have occurred. A leave of absence shall constitute
407	a continuation of the employment relationship, except that a
408	leave of absence without pay due to disability may constitute
409	termination for a member, if such member makes application for
410	and is approved for disability retirement in accordance with s.
411	121.091(4). The division departmentmay require other evidence
412	of termination as it deems necessary.
413	(62) "Board" means the State Board of Administration.
414	Section 15. Section 121.025, Florida Statutes, is amended
415	to read:
416	121.025 Administrator; powers and duties.--The executive
417	director of the State Board of Administration secretary of the
418	Department of Management Servicesshall be the administrator of
419	the retirement and pension systems assigned or transferred to
420	the division Department of Management Services by law. The
421	executive director of the State Board of Administration is the
422	trustee of the System Trust Fundand shall have the authority to
423	sign the contracts necessary to carry out the duties and
424	responsibilities assigned by law to the division Department of
425	Management Services.
426	Section 16. Subsections (1), (2), and (5) and paragraph
427	(e) of subsection (3) of section 121.031, Florida Statutes, are
428	amended to read:
429	121.031 Administration of system; appropriation; oaths;
430	actuarial studies; public records.--
431	(1) The division Department of Management Serviceshas the
432	authority to adopt rules pursuant to ss. 120.536(1) and 120.54
433	to implement the provisions of law conferring duties upon the
434	division departmentand to adopt rules as are necessary for the
435	effective and efficient administration of this system. The funds
436	to pay the expenses for administration of the system are hereby
437	appropriated from the interest earned on investments made for
438	the retirement and social security trust funds and the
439	assessments allowed under chapter 650.
440	(2) The division Department of Management Servicesis
441	authorized to require oaths, by affidavit or otherwise, and
442	acknowledgments from persons in connection with the
443	administration of its duties and responsibilities under this
444	chapter.
445	(3) The administrator shall cause an actuarial study of
446	the system to be made at least annually and shall report the
447	results of such study to the Legislature by December 31 prior to
448	the next legislative session. The study shall, at a minimum,
449	conform to the requirements of s. 112.63, with the following
450	exceptions and additions:
451	(e) The study shall include measures of funding status and
452	funding progress designed to facilitate the assessment of trends
453	over several actuarial valuations with respect to the overall
454	solvency of the system. Such measures shall be adopted by the
455	division departmentand shall be used consistently in all
456	actuarial valuations performed on the system.
457	(5) The names and addresses of retirees are confidential
458	and exempt from the provisions of s. 119.07(1) to the extent
459	that no state or local governmental agency may provide the names
460	or addresses of such persons in aggregate, compiled, or list
461	form to any person except to a public agency engaged in official
462	business. However, a state or local government agency may
463	provide the names and addresses of retirees from that agency to
464	a bargaining agent as defined in s. 447.203(12) or to a retiree
465	organization for official business use. Lists of names or
466	addresses of retirees may be exchanged by public agencies, but
467	such lists shall not be provided to, or open for inspection by,
468	the public. Any person may view or copy any individual's
469	retirement records at the division Department of Management
470	Services, one record at a time, or may obtain information by a
471	separate written request for a named individual for which
472	information is desired.
473	Section 17. Paragraph (c) of subsection (1) and paragraphs
474	(b) and (f) of subsection (2) of section 121.051, Florida
475	Statutes, are amended to read:
476	121.051 Participation in the system.--
477	(1) COMPULSORY PARTICIPATION.--
478	(c)1. After June 30, 1983, a member of an existing system
479	who is reemployed after terminating employment shall have at the
480	time of reemployment the option of selecting to remain in the
481	existing retirement system or to transfer to the Florida
482	Retirement System. Failure to submit such selection in writing
483	to the division Department of Management Serviceswithin 6
484	months of reemployment shall result in compulsory membership in
485	the Florida Retirement System.
486	2. After June 30, 1988, the provisions of subparagraph 1.
487	shall not apply to a member of an existing system who is
488	reemployed within 12 months after terminating employment. Such
489	member shall continue to have membership in the existing system
490	upon reemployment and shall not be permitted to become a member
491	of the Florida Retirement System, except by transferring to that
492	system as provided in ss. 121.052 and 121.055.
493	(2) OPTIONAL PARTICIPATION.--
494	(b)1. The governing body of any municipality or special
495	district in the state may elect to participate in the system
496	upon proper application to the administrator and may cover all
497	or any of its units as approved by the Secretary of Health and
498	Human Services and the administrator. The division department
499	shall adopt rules establishing provisions for the submission of
500	documents necessary for such application. Prior to being
501	approved for participation in the Florida Retirement System, the
502	governing body of any such municipality or special district that
503	has a local retirement system shall submit to the administrator
504	a certified financial statement showing the condition of the
505	local retirement system as of a date within 3 months prior to
506	the proposed effective date of membership in the Florida
507	Retirement System. The statement must be certified by a
508	recognized accounting firm that is independent of the local
509	retirement system. All required documents necessary for
510	extending Florida Retirement System coverage must be received by
511	the division departmentfor consideration at least 15 days prior
512	to the proposed effective date of coverage. If the municipality
513	or special district does not comply with this requirement, the
514	division departmentmay require that the effective date of
515	coverage be changed.
516	2. Any city or special district that has an existing
517	retirement system covering the employees in the units that are
518	to be brought under the Florida Retirement System may
519	participate only after holding a referendum in which all
520	employees in the affected units have the right to participate.
521	Only those employees electing coverage under the Florida
522	Retirement System by affirmative vote in said referendum shall
523	be eligible for coverage under this chapter, and those not
524	participating or electing not to be covered by the Florida
525	Retirement System shall remain in their present systems and
526	shall not be eligible for coverage under this chapter. After the
527	referendum is held, all future employees shall be compulsory
528	members of the Florida Retirement System.
529	3. The governing body of any city or special district
530	complying with subparagraph 1. may elect to provide, or not
531	provide, benefits based on past service of officers and
532	employees as described in s. 121.081(1). However, if such
533	employer elects to provide past service benefits, such benefits
534	must be provided for all officers and employees of its covered
535	group.
536	4. Once this election is made and approved it may not be
537	revoked, except pursuant to subparagraphs 5. and 6., and all
538	present officers and employees electing coverage under this
539	chapter and all future officers and employees shall be
540	compulsory members of the Florida Retirement System.
541	5. Subject to the conditions set forth in subparagraph 6.,
542	the governing body of any hospital licensed under chapter 395
543	which is governed by the board of a special district as defined
544	in s. 189.403(1) or by the board of trustees of a public health
545	trust created under s. 154.07, hereinafter referred to as
546	"hospital district," and which participates in the system, may
547	elect to cease participation in the system with regard to future
548	employees in accordance with the following procedure:
549	a. No more than 30 days and at least 7 days before
550	adopting a resolution to partially withdraw from the Florida
551	Retirement System and establish an alternative retirement plan
552	for future employees, a public hearing must be held on the
553	proposed withdrawal and proposed alternative plan.
554	b. From 7 to 15 days before such hearing, notice of intent
555	to withdraw, specifying the time and place of the hearing, must
556	be provided in writing to employees of the hospital district
557	proposing partial withdrawal and must be published in a
558	newspaper of general circulation in the area affected, as
559	provided by ss. 50.011-50.031. Proof of publication of such
560	notice shall be submitted to the division Department of
561	Management Services.
562	c. The governing body of any hospital district seeking to
563	partially withdraw from the system must, before such hearing,
564	have an actuarial report prepared and certified by an enrolled
565	actuary, as defined in s. 112.625(3), illustrating the cost to
566	the hospital district of providing, through the retirement plan
567	that the hospital district is to adopt, benefits for new
568	employees comparable to those provided under the Florida
569	Retirement System.
570	d. Upon meeting all applicable requirements of this
571	subparagraph, and subject to the conditions set forth in
572	subparagraph 6., partial withdrawal from the system and adoption
573	of the alternative retirement plan may be accomplished by
574	resolution duly adopted by the hospital district board. The
575	hospital district board must provide written notice of such
576	withdrawal to the division by mailing a copy of the resolution
577	to the division, postmarked no later than December 15, 1995.
578	The withdrawal shall take effect January 1, 1996.
579	6. Following the adoption of a resolution under sub-
580	subparagraph 5.d., all employees of the withdrawing hospital
581	district who were participants in the Florida Retirement System
582	prior to January 1, 1996, shall remain as participants in the
583	system for as long as they are employees of the hospital
584	district, and all rights, duties, and obligations between the
585	hospital district, the system, and the employees shall remain in
586	full force and effect. Any employee who is hired or appointed on
587	or after January 1, 1996, may not participate in the Florida
588	Retirement System, and the withdrawing hospital district shall
589	have no obligation to the system with respect to such employees.
590	(f)1. Whenever an employer that participates in the
591	Florida Retirement System undertakes the transfer, merger, or
592	consolidation of governmental services or functions, the
593	employer must notify the division departmentat least 60 days
594	prior to such action and shall provide documentation as required
595	by the division department.
596	2. When the agency to which a member's employing unit is
597	transferred, merged, or consolidated does not participate in the
598	Florida Retirement System, a member shall elect in writing to
599	remain in the Florida Retirement System or to transfer to the
600	local retirement system operated by such agency. If such agency
601	does not participate in a local retirement system, the member
602	shall continue membership in the Florida Retirement System. In
603	either case, the membership shall continue for as long as the
604	member is employed by the agency to which his or her unit was
605	transferred, merged, or consolidated.
606	Section 18. Subsection (2) of section 121.0511, Florida
607	Statutes, is amended to read:
608	121.0511 Revocation of election and alternative plan.--The
609	governing body of any municipality or independent special
610	district that has elected to participate in the Florida
611	Retirement System may revoke its election in accordance with the
612	following procedure:
613	(2) At least 7 days, but not more than 15 days, before the
614	hearing, notice of intent to revoke, specifying the time and
615	place of the hearing, must be published in a newspaper of
616	general circulation in the area affected, as provided by ss.
617	50.011-50.031. Proof of publication of the notice must be
618	submitted to the division Department of Management Services.
619	Section 19. Subsections (3) and (4) and paragraph (c) of
620	subsection (7) of section 121.0515, Florida Statutes, are
621	amended to read:
622	121.0515 Special risk membership.--
623	(3) PROCEDURE FOR DESIGNATING.--
624	(a) Any member of the Florida Retirement System employed
625	by a county, city, or special district who feels that he or she
626	meets the criteria set forth in this section for membership in
627	the Special Risk Class may request that his or her employer
628	submit an application to the division departmentrequesting that
629	the division departmentdesignate him or her as a special risk
630	member. If the employer agrees that the member meets the
631	requirements for special risk membership, the employer shall
632	submit an application to the division departmentin behalf of
633	the employee containing a certification that the member meets
634	the criteria for special risk membership set forth in this
635	section and such other supporting documentation as may be
636	required by administrative rule. The division departmentshall,
637	within 90 days, either designate or refuse to designate the
638	member as a special risk member. If the employer declines to
639	submit the member's application to the division departmentor if
640	the division departmentdoes not designate the member as a
641	special risk member, the member or the employer may appeal to
642	the State Retirement Commission, as provided in s. 121.23, for
643	designation as a special risk member. A member who receives a
644	final affirmative ruling pursuant to such appeal for special
645	risk membership shall have special risk membership retroactive
646	to the date such member would have had special risk membership
647	had such membership been approved by the employer and the
648	division department, as determined by the division department,
649	and the employer contributions shall be paid in full within 1
650	year after such final ruling.
651	(b)1. Applying the criteria set forth in this section, the
652	division Department of Management Servicesshall specify which
653	current and newly created classes of positions under the uniform
654	classification plan established pursuant to chapter 110 entitle
655	the incumbents of positions in those classes to membership in
656	the Special Risk Class. Only employees employed in the classes
657	so specified shall be special risk members.
658	2. When a class is not specified by the division
659	departmentas provided in subparagraph 1., the employing agency
660	may petition the State Retirement Commission for approval in
661	accordance with s. 121.23.
662	(4) REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member who is
663	a special risk member on October 1, 1978, and who fails to meet
664	the criteria for special risk membership established by this
665	section shall have his or her special risk designation removed
666	and thereafter shall be a regular member and shall earn only
667	regular membership credit. The division departmentshall have
668	the authority to review the special risk designation of members
669	to determine whether or not those members continue to meet the
670	criteria for special risk membership.
671	(7) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE.--
672	(c) The division departmentshall adopt such rules as are
673	required to administer this subsection.
674	Section 20. Paragraph (e) of subsection (3) of section
675	121.052, Florida Statutes, is amended to read:
676	121.052 Membership class of elected officers.--
677	(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
678	July 1, 1990, participation in the Elected Officers' Class shall
679	be compulsory for elected officers listed in paragraphs (2)(a)-
680	(d) and (f) assuming office on or after said date, unless the
681	elected officer elects membership in another class or withdraws
682	from the Florida Retirement System as provided in
683	paragraphs(3)(a)-(d):
684	(e) Effective July 1, 2001, the governing body of a
685	municipality or special district may, by majority vote, elect to
686	designate all its elected positions for inclusion in the Elected
687	Officers' Class. Such election shall be made between July 1,
688	2001, and December 31, 2001, and shall be irrevocable. The
689	designation of such positions shall be effective the first day
690	of the month following receipt by the division departmentof the
691	ordinance or resolution passed by the governing body.
692	Section 21. Paragraphs (b) and (h) of subsection (1) and
693	paragraphs (a), (c), (d), and (f) of subsection (6) of section
694	121.055, Florida Statutes, are amended to read:
695	121.055 Senior Management Service Class.--There is hereby
696	established a separate class of membership within the Florida
697	Retirement System to be known as the "Senior Management Service
698	Class," which shall become effective February 1, 1987.
699	(1)
700	(b)1. Except as provided in subparagraph 2., effective
701	January 1, 1990, participation in the Senior Management Service
702	Class shall be compulsory for the president of each community
703	college, the manager of each participating city or county, and
704	all appointed district school superintendents. Effective
705	January 1, 1994, additional positions may be designated for
706	inclusion in the Senior Management Service Class of the Florida
707	Retirement System, provided that:
708	a. Positions to be included in the class shall be
709	designated by the local agency employer. Notice of intent to
710	designate positions for inclusion in the class shall be
711	published once a week for 2 consecutive weeks in a newspaper of
712	general circulation published in the county or counties
713	affected, as provided in chapter 50.
714	b. Up to 10 nonelective full-time positions may be
715	designated for each local agency employer reporting to the
716	division Department of Management Services; for local agencies
717	with 100 or more regularly established positions, additional
718	nonelective full-time positions may be designated, not to exceed
719	1 percent of the regularly established positions within the
720	agency.
721	c. Each position added to the class must be a managerial
722	or policymaking position filled by an employee who is not
723	subject to continuing contract and serves at the pleasure of the
724	local agency employer without civil service protection, and who:
725	(I) Heads an organizational unit; or
726	(II) Has responsibility to effect or recommend personnel,
727	budget, expenditure, or policy decisions in his or her areas of
728	responsibility.
729	2. In lieu of participation in the Senior Management
730	Service Class, members of the Senior Management Service Class
731	pursuant to the provisions of subparagraph 1. may withdraw from
732	the Florida Retirement System altogether. The decision to
733	withdraw from the Florida Retirement System shall be irrevocable
734	for as long as the employee holds such a position. Any service
735	creditable under the Senior Management Service Class shall be
736	retained after the member withdraws from the Florida Retirement
737	System; however, additional service credit in the Senior
738	Management Service Class shall not be earned after such
739	withdrawal. Such members shall not be eligible to participate
740	in the Senior Management Service Optional Annuity Program.
741	(h)1. Except as provided in subparagraph 3., effective
742	January 1, 1994, participation in the Senior Management Service
743	Class shall be compulsory for the State Courts Administrator and
744	the Deputy State Courts Administrators, the Clerk of the Supreme
745	Court, the Marshal of the Supreme Court, the Executive Director
746	of the Justice Administrative Commission, the Capital Collateral
747	Regional Counsels, the clerks of the district courts of appeals,
748	the marshals of the district courts of appeals, and the trial
749	court administrator and the Chief Deputy Court Administrator in
750	each judicial circuit. Effective January 1, 1994, additional
751	positions in the offices of the state attorney and public
752	defender in each judicial circuit may be designated for
753	inclusion in the Senior Management Service Class of the Florida
754	Retirement System, provided that:
755	a. Positions to be included in the class shall be
756	designated by the state attorney or public defender, as
757	appropriate. Notice of intent to designate positions for
758	inclusion in the class shall be published once a week for 2
759	consecutive weeks in a newspaper of general circulation
760	published in the county or counties affected, as provided in
761	chapter 50.
762	b. One nonelective full-time position may be designated
763	for each state attorney and public defender reporting to the
764	division Department of Management Services; for agencies with
765	200 or more regularly established positions under the state
766	attorney or public defender, additional nonelective full-time
767	positions may be designated, not to exceed 0.5 percent of the
768	regularly established positions within the agency.
769	c. Each position added to the class must be a managerial
770	or policymaking position filled by an employee who serves at the
771	pleasure of the state attorney or public defender without civil
772	service protection, and who:
773	(I) Heads an organizational unit; or
774	(II) Has responsibility to effect or recommend personnel,
775	budget, expenditure, or policy decisions in his or her areas of
776	responsibility.
777	2. Participation in this class shall be compulsory, except
778	as provided in subparagraph 3., for any judicial employee who
779	holds a position designated for coverage in the Senior
780	Management Service Class, and such participation shall continue
781	until the employee terminates employment in a covered position.
782	Effective January 1, 2001, participation in this class is
783	compulsory for assistant state attorneys, assistant statewide
784	prosecutors, assistant public defenders, and assistant capital
785	collateral regional counsels. Effective January 1, 2002,
786	participation in this class is compulsory for assistant
787	attorneys general.
788	3. In lieu of participation in the Senior Management
789	Service Class, such members, excluding assistant state
790	attorneys, assistant public defenders, assistant statewide
791	prosecutors, assistant attorneys general, and assistant capital
792	collateral regional counsels, may participate in the Senior
793	Management Service Optional Annuity Program as established in
794	subsection (6).
795	(6)(a) Senior Management Service Optional Annuity
796	Program.--The State Board of Administration Department of
797	Management Servicesshall establish a Senior Management Service
798	Optional Annuity Program under which contracts providing
799	retirement, death, and disability benefits may be purchased for
800	those employees who elect to participate in the optional annuity
801	program. The benefits to be provided for or on behalf of
802	participants in such optional annuity program shall be provided
803	through individual contracts or individual certificates issued
804	for group annuity contracts, which may be fixed, variable, or a
805	combination thereof, in accordance with s. 401(a) of the
806	Internal Revenue Code. Any such individual contract or
807	certificate shall state the annuity plan on its face page, and
808	shall include, but not be limited to, a statement of ownership,
809	the contract benefits, annuity income options, limitations,
810	expense charges, and surrender charges, if any. The employing
811	agency shall contribute, as provided in this section, toward the
812	purchase of such optional benefits which shall be fully and
813	immediately vested in the participants.
814	(c) Participation.--
815	1. Any eligible employee who is employed on or before
816	February 1, 1987, may elect to participate in the optional
817	annuity program in lieu of participation in the Senior
818	Management Service Class. Such election shall be made in
819	writing and filed with the board departmentand the personnel
820	officer of the employer on or before May 1, 1987. Any eligible
821	employee who is employed on or before February 1, 1987, and who
822	fails to make an election to participate in the optional annuity
823	program by May 1, 1987, shall be deemed to have elected
824	membership in the Senior Management Service Class.
825	2. Any employee who becomes eligible to participate in the
826	optional annuity program by reason of initial employment
827	commencing after February 1, 1987, may, within 90 days after the
828	date of commencement of employment, elect to participate in the
829	optional annuity program. Such election shall be made in
830	writing and filed with the personnel officer of the employer.
831	Any eligible employee who does not within 90 days after
832	commencement of such employment elect to participate in the
833	optional annuity program shall be deemed to have elected
834	membership in the Senior Management Service Class.
835	3. A person who is appointed to a position in the Senior
836	Management Service Class and who is a member of an existing
837	retirement system or the Special Risk or Special Risk
838	Administrative Support Classes of the Florida Retirement System
839	may elect to remain in such system or class in lieu of
840	participation in the Senior Management Service Class or optional
841	annuity program. Such election shall be made in writing and
842	filed with the board departmentand the personnel officer of the
843	employer within 90 days of such appointment. Any eligible
844	employee who fails to make an election to participate in the
845	existing system, the Special Risk Class of the Florida
846	Retirement System, the Special Risk Administrative Support Class
847	of the Florida Retirement System, or the optional annuity
848	program shall be deemed to have elected membership in the Senior
849	Management Service Class.
850	4. Except as provided in subparagraph 5., an employee's
851	election to participate in the optional annuity program is
852	irrevocable as long as such employee continues to be employed in
853	an eligible position and continues to meet the eligibility
854	requirements set forth in this paragraph.
855	5. Effective from July 1, 2002, through September 30,
856	2002, any active employee in a regularly established position
857	who has elected to participate in the Senior Management Service
858	Optional Annuity Program has one opportunity to choose to move
859	from the Senior Management Service Optional Annuity Program to
860	the Florida Retirement System defined benefit program.
861	a. The election must be made in writing and must be filed
862	with the board departmentand the personnel officer of the
863	employer before October 1, 2002, or, in the case of an active
864	employee who is on a leave of absence on July 1, 2002, within 90
865	days after the conclusion of the leave of absence. This election
866	is irrevocable.
867	b. The employee will receive service credit under the
868	defined benefit program of the Florida Retirement System equal
869	to his or her years of service under the Senior Management
870	Service Optional Annuity Program. The cost for such credit shall
871	be an amount representing the present value of that employee's
872	accumulated benefit obligation for the affected period of
873	service.
874	c. The employee must transfer the total accumulated
875	employer contributions and earnings on deposit in his or her
876	Senior Management Service Optional Annuity Program account. If
877	the transferred amount is not sufficient to pay the amount due,
878	the employee must pay a sum representing the remainder of the
879	amount due. In no case may the employee retain any employer
880	contributions or earnings thereon from the Senior Management
881	Service Optional Annuity Program account.
882	(d) Contributions.--
883	1. Through June 30, 2001, each employer shall contribute
884	on behalf of each participant in the Senior Management Service
885	Optional Annuity Program an amount equal to the normal cost
886	portion of the employer retirement contribution which would be
887	required if the participant were a Senior Management Service
888	Class member of the Florida Retirement System defined benefit
889	program, plus the portion of the contribution rate required in
890	s. 112.363(8) that would otherwise be assigned to the Retiree
891	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
892	each employer shall contribute on behalf of each participant in
893	the optional program an amount equal to 12.49 percent of the
894	participant's gross monthly compensation. The board department
895	shall deduct an amount approved by the board, pursuant to s.
896	215.44(4), Legislatureto provide for the administration of this
897	program. The payment of the contributions to the optional
898	program which is required by this subparagraph for each
899	participant shall be made by the employer to the board
900	department, which shall forward the contributions to the
901	designated company or companies contracting for payment of
902	benefits for the participant under the program.
903	2. Each employer shall contribute on behalf of each
904	participant in the Senior Management Service Optional Annuity
905	Program an amount equal to the unfunded actuarial accrued
906	liability portion of the employer contribution which would be
907	required for members of the Senior Management Service Class in
908	the Florida Retirement System. This contribution shall be paid
909	to the board departmentfor transfer to the Florida Retirement
910	System Trust Fund.
911	3. An Optional Annuity Program Trust Fund shall be
912	established in the State Treasury and administered by the board
913	departmentto make payments to provider companies on behalf of
914	the optional annuity program participants, and to transfer the
915	unfunded liability portion of the state optional annuity program
916	contributions to the Florida Retirement System Trust Fund.
917	4. Contributions required for social security by each
918	employer and each participant, in the amount required for social
919	security coverage as now or hereafter may be provided by the
920	federal Social Security Act shall be maintained for each
921	participant in the Senior Management Service retirement program
922	and shall be in addition to the retirement contributions
923	specified in this paragraph.
924	5. Each participant in the Senior Management Service
925	Optional Annuity Program may contribute by way of salary
926	reduction or deduction a percentage amount of the participant's
927	gross compensation not to exceed the percentage amount
928	contributed by the employer to the optional annuity program.
929	Payment of the participant's contributions shall be made by the
930	employer to the board department, which shall forward the
931	contributions to the designated company or companies contracting
932	for payment of benefits for the participant under the program.
933	(f) Administration.--
934	1. The Senior Management Service Optional Annuity Program
935	authorized by this section shall be administered by the board
936	department. The board departmentshall designate one or more
937	provider companies from which annuity contracts may be purchased
938	under the program and shall approve the form and content of the
939	contracts. The board departmentshall sign a contract with each
940	of the provider companies and shall evaluate the performance of
941	the provider companies on a continuing basis. The board
942	departmentmay terminate the services of a provider company for
943	reasons stated in the contract. The board departmentshall adopt
944	rules establishing its responsibilities and the responsibilities
945	of employers in administering the optional annuity program.
946	2. Effective July 1, 1997, the State Board of
947	Administration shall review and make recommendations to the
948	department on the acceptability of all investment products
949	proposed by provider companies of the optional annuity program
950	before such products are offered through annuity contracts to
951	the participants and may advise the department of any changes
952	deemed necessary to ensure that the optional annuity program
953	offers an acceptable mix of investment products. The board
954	department shall determine which make the final determination as
955	to whether an investment products product will be included in
956	approved forthe program.
957	3. The provisions of each contract applicable to a
958	participant in the Senior Management Service Optional Annuity
959	Program shall be contained in a written program description
960	which shall include a report of pertinent financial and
961	actuarial information on the solvency and actuarial soundness of
962	the program and the benefits applicable to the participant.
963	Such description shall be furnished by the company or companies
964	to each participant in the program and to the board department
965	upon commencement of participation in the program and annually
966	thereafter.
967	4. The board departmentshall ensure that each participant
968	in the Senior Management Service Optional Annuity Program is
969	provided an accounting of the total contribution and the annual
970	contribution made by and on behalf of such participants.
971	Section 22. Paragraph (h) of subsection (1) and paragraph
972	(e) of subsection (2) of section 121.081, Florida Statutes, are
973	amended to read:
974	121.081 Past service; prior service;
975	contributions.--Conditions under which past service or prior
976	service may be claimed and credited are:
977	(1)
978	(h) The following provisions apply to the purchase of past
979	service:
980	1. Notwithstanding any of the provisions of this
981	subsection, past-service credit may not be purchased under this
982	chapter for any service that is used to obtain a benefit from
983	any local retirement system.
984	2. A member may not receive past service credit under
985	paragraphs (a), (b),(e), or (f) for any leaves of absence
986	without pay, except that credit for active military service
987	leaves of absence may be claimed under paragraphs (a),(b), and
988	(f), in accordance with s. 121.111(1).
989	3. If a member does not desire to receive credit for all
990	of his or her past service, the period the member claims must be
991	the most recent past service prior to his or her participation
992	in the Florida Retirement System.
993	4. The cost of past service purchased by an employing
994	agency for its employees may be amortized over such period of
995	time as is provided in the agreement, but not to exceed 15
996	years, calculated in accordance with rule 60S-1.007(5)(f),
997	Florida Administrative Code.
998	5. The retirement account of each member for whom past
999	service is being provided by his or her employer shall be
1000	credited with all past service the employer agrees to purchase
1001	as soon as the agreement between the employer and the division
1002	departmentis executed. Pursuant thereto:
1003	a. Each such member's account shall also be posted with
1004	the total contribution his or her employer agrees to make in the
1005	member's behalf for past service earned prior to October 1,
1006	1975, excluding those contributions representing the employer's
1007	matching share and the compound interest calculation on the
1008	total contribution. However, a portion of any contributions paid
1009	by an employer for past service credit earned on and after
1010	October 1, 1975, may not be posted to a member's account.
1011	b. A refund of contributions payable after an employer has
1012	made a written agreement to purchase past service for employees
1013	of the covered group shall include contributions for past
1014	service which are posted to a member's account. However,
1015	contributions for past service earned on and after October 1,
1016	1975, are not refundable.
1017	(2) Prior service, as defined in s. 121.021(19), may be
1018	claimed as creditable service under the Florida Retirement
1019	System after a member has been reemployed for 1 complete year of
1020	creditable service within a period of 12 consecutive months,
1021	except as provided in paragraph (c). Service performed as a
1022	participant of the optional retirement program for the State
1023	University System under s. 121.35 or the Senior Management
1024	Service Optional Annuity Program under s. 121.055 may be used to
1025	satisfy the reemployment requirement of 1 complete year of
1026	creditable service. The member shall not be permitted to make
1027	any contributions for prior service until after completion of
1028	the 1 year of creditable service. If a member does not wish to
1029	claim credit for all of his or her prior service, the service
1030	the member claims must be the most recent period of service. The
1031	required contributions for claiming the various types of prior
1032	service are:
1033	(e) For service performed under the Florida Retirement
1034	System after December 1, 1970, that was never reported to the
1035	division or the departmentdue to error, retirement credit may
1036	be claimed by a member of the Florida Retirement System. The
1037	division departmentshall adopt rules establishing criteria for
1038	claiming such credit and detailing the documentation required to
1039	substantiate the error.
1040	Section 23. Subsection (1) of section 121.085, Florida
1041	Statutes, is amended to read:
1042	121.085 Creditable service.--The following provisions
1043	shall apply to creditable service as defined in s. 121.021(17):
1044	(1) The division departmentshall adopt rules establishing
1045	procedures for the submission of evidence or information
1046	necessary to establish a member's claim of creditable service.
1047	Section 24. Section 121.091, Florida Statutes, is amended
1048	to read:
1049	121.091 Benefits payable under the system.--Benefits may
1050	not be paid under this section unless the member has terminated
1051	employment as provided in s. 121.021(39)(a) or begun
1052	participation in the Deferred Retirement Option Program as
1053	provided in subsection (13), and a proper application has been
1054	filed in the manner prescribed by the division department. The
1055	division departmentmay cancel an application for retirement
1056	benefits when the member or beneficiary fails to timely provide
1057	the information and documents required by this chapter and the
1058	division's department's rules. The division departmentshall
1059	adopt rules establishing procedures for application for
1060	retirement benefits and for the cancellation of such application
1061	when the required information or documents are not received.
1062	(1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
1063	normal retirement date, the member, upon application to the
1064	administrator, shall receive a monthly benefit which shall begin
1065	to accrue on the first day of the month of retirement and be
1066	payable on the last day of that month and each month thereafter
1067	during his or her lifetime. The normal retirement benefit,
1068	including any past or additional retirement credit, may not
1069	exceed 100 percent of the average final compensation. The amount
1070	of monthly benefit shall be calculated as the product of A and
1071	B, subject to the adjustment of C, if applicable, as set forth
1072	below:
1073	(a)1. For creditable years of Regular Class service, A is
1074	1.60 percent of the member's average final compensation, up to
1075	the member's normal retirement date. Upon completion of the
1076	first year after the normal retirement date, A is 1.63 percent
1077	of the member's average final compensation. Following the
1078	second year after the normal retirement date, A is 1.65 percent
1079	of the member's average final compensation. Following the third
1080	year after the normal retirement date, and for subsequent years,
1081	A is 1.68 percent of the member's average final compensation.
1082	2. For creditable years of special risk service, A is:
1083	a. Two percent of the member's average final compensation
1084	for all creditable years prior to October 1, 1974;
1085	b. Three percent of the member's average final
1086	compensation for all creditable years after September 30, 1974,
1087	and before October 1, 1978;
1088	c. Two percent of the member's average final compensation
1089	for all creditable years after September 30, 1978, and before
1090	January 1, 1989;
1091	d. Two and two-tenths percent of the member's final
1092	monthly compensation for all creditable years after December 31,
1093	1988, and before January 1, 1990;
1094	e. Two and four-tenths percent of the member's average
1095	final compensation for all creditable years after December 31,
1096	1989, and before January 1, 1991;
1097	f. Two and six-tenths percent of the member's average
1098	final compensation for all creditable years after December 31,
1099	1990, and before January 1, 1992;
1100	g. Two and eight-tenths percent of the member's average
1101	final compensation for all creditable years after December 31,
1102	1991, and before January 1, 1993;
1103	h. Three percent of the member's average final
1104	compensation for all creditable years after December 31, 1992;
1105	and
1106	i. Three percent of the member's average final
1107	compensation for all creditable years of service after September
1108	30, 1978, and before January 1, 1993, for any special risk
1109	member who retires after July 1, 2000, or any member of the
1110	Special Risk Administrative Support Class entitled to retain the
1111	special risk normal retirement date who was a member of the
1112	Special Risk Class during the time period and who retires after
1113	July 1, 2000.
1114	3. For creditable years of Senior Management Service Class
1115	service after January 31, 1987, A is 2 percent;
1116	4. For creditable years of Elected Officers' Class service
1117	as a Supreme Court Justice, district court of appeal judge,
1118	circuit judge, or county court judge, A is 3 1/3 percent of the
1119	member's average final compensation, and for all other
1120	creditable service in such class, A is 3 percent of average
1121	final compensation;
1122	(b) B is the number of the member's years and any
1123	fractional part of a year of creditable service earned
1124	subsequent to November 30, 1970; and
1125	(c) C is the normal retirement benefit credit brought
1126	forward as of November 30, 1970, by a former member of an
1127	existing system. Such normal retirement benefit credit shall be
1128	determined as the product of X and Y when X is the percentage of
1129	average final compensation which the member would have been
1130	eligible to receive if the member had attained his or her normal
1131	retirement date as of November 30, 1970, all in accordance with
1132	the existing system under which the member is covered on
1133	November 30, 1970, and Y is average final compensation as
1134	defined in s. 121.021(25). However, any member of an existing
1135	retirement system who is eligible to retire and who does retire,
1136	become disabled, or die prior to April 15, 1971, may have his or
1137	her retirement benefits calculated on the basis of the best 5 of
1138	the last 10 years of service.
1139	(d) A member's average final compensation shall be
1140	determined by formula to obtain the coverage for the 5 highest
1141	fiscal years' salaries, calculated as provided by rule.
1142	(2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
1143	a member accumulates retirement benefits to commence at
1144	different normal retirement ages by virtue of having performed
1145	duties for an employer which would entitle him or her to
1146	benefits as both a member of the Special Risk Class and a member
1147	of either the Regular Class, Senior Management Service Class, or
1148	Elected Officers' Class, the amount of benefits payable shall be
1149	computed separately with respect to each such age and the sum of
1150	such computed amounts shall be paid as provided in this section.
1151	(3) EARLY RETIREMENT BENEFIT.--Upon retirement on his or
1152	her early retirement date, the member shall receive an immediate
1153	monthly benefit that shall begin to accrue on the first day of
1154	the month of the retirement date and be payable on the last day
1155	of that month and each month thereafter during his or her
1156	lifetime. Such benefit shall be calculated as follows:
1157	(a) The amount of each monthly payment shall be computed
1158	in the same manner as for a normal retirement benefit, in
1159	accordance with subsection (1), but shall be based on the
1160	member's average monthly compensation and creditable service as
1161	of the member's early retirement date. The benefit so computed
1162	shall be reduced by five-twelfths of 1 percent for each complete
1163	month by which the early retirement date precedes the normal
1164	retirement date of age 62 for a member of the Regular Class,
1165	Senior Management Service Class, or the Elected Officers' Class,
1166	and age 55 for a member of the Special Risk Class, or age 52 if
1167	a Special Risk member has completed 25 years of creditable
1168	service in accordance with s. 121.021(29)(b)3.
1169	(b) If the employment of a member is terminated by reason
1170	of death subsequent to the completion of 20 years of creditable
1171	service, the monthly benefit payable to the member's beneficiary
1172	shall be calculated in accordance with subsection (1), but shall
1173	be based on average monthly compensation and creditable service
1174	as of the date of death. The benefit so computed shall be
1175	reduced by five-twelfths of 1 percent for each complete month by
1176	which death precedes the normal retirement date specified above
1177	or the date on which the member would have attained 30 years of
1178	creditable service had he or she survived and continued his or
1179	her employment, whichever provides a higher benefit.
1180	(4) DISABILITY RETIREMENT BENEFIT.--
1181	(a) Disability retirement; entitlement and effective
1182	date.--
1183	1.a. A member who becomes totally and permanently
1184	disabled, as defined in paragraph (b), after completing 5 years
1185	of creditable service, or a member who becomes totally and
1186	permanently disabled in the line of duty regardless of service,
1187	shall be entitled to a monthly disability benefit; except that
1188	any member with less than 5 years of creditable service on July
1189	1, 1980, or any person who becomes a member of the Florida
1190	Retirement System on or after such date must have completed 10
1191	years of creditable service prior to becoming totally and
1192	permanently disabled in order to receive disability retirement
1193	benefits for any disability which occurs other than in the line
1194	of duty. However, if a member employed on July 1, 1980, with
1195	less than 5 years of creditable service as of that date, becomes
1196	totally and permanently disabled after completing 5 years of
1197	creditable service and is found not to have attained fully
1198	insured status for benefits under the federal Social Security
1199	Act, such member shall be entitled to a monthly disability
1200	benefit.
1201	b. Effective July 1, 2001, a member of the defined benefit
1202	retirement program who becomes totally and permanently disabled,
1203	as defined in paragraph (b), after completing 8 years of
1204	creditable service, or a member who becomes totally and
1205	permanently disabled in the line of duty regardless of service,
1206	shall be entitled to a monthly disability benefit.
1207	2. If the division has received from the employer the
1208	required documentation of the member's termination of
1209	employment, the effective retirement date for a member who
1210	applies and is approved for disability retirement shall be
1211	established by rule of the division.
1212	3. For a member who is receiving Workers' Compensation
1213	payments, the effective disability retirement date may not
1214	precede the date the member reaches Maximum Medical Improvement
1215	(MMI), unless the member terminates employment prior to reaching
1216	MMI.
1217	(b) Total and permanent disability.--A member shall be
1218	considered totally and permanently disabled if, in the opinion
1219	of the administrator, he or she is prevented, by reason of a
1220	medically determinable physical or mental impairment, from
1221	rendering useful and efficient service as an officer or
1222	employee.
1223	(c) Proof of disability.--The administrator, before
1224	approving payment of any disability retirement benefit, shall
1225	require proof that the member is totally and permanently
1226	disabled as provided herein:
1227	1. Such proof shall include the certification of the
1228	member's total and permanent disability by two licensed
1229	physicians of the state and such other evidence of disability as
1230	the administrator may require, including reports from vocational
1231	rehabilitation, evaluation, or testing specialists who have
1232	evaluated the applicant for employment.
1233	2. It must be documented that:
1234	a. The member's medical condition occurred or became
1235	symptomatic during the time the member was employed in an
1236	employee/employer relationship with his or her employer;
1237	b. The member was totally and permanently disabled at the
1238	time he or she terminated covered employment; and
1239	c. The member has not been employed with any other
1240	employer after such termination.
1241	3. If the application is for in-line-of-duty disability,
1242	in addition to the requirements of subparagraph 2., it must be
1243	documented by competent medical evidence that the disability was
1244	caused by a job-related illness or accident which occurred while
1245	the member was in an employee/employer relationship with his or
1246	her employer.
1247	4. The unavailability of an employment position that the
1248	member is physically and mentally capable of performing will not
1249	be considered as proof of total and permanent disability.
1250	(d) Election on appeal.--A member whose application for
1251	regular disability retirement has been denied and who has filed
1252	an appeal to the State Retirement Commission may, if eligible,
1253	elect to receive normal or early service retirement benefits
1254	while he or she is awaiting the decision on the appeal. However:
1255	1. If the member elects to receive service retirement
1256	benefits and disability benefits are later approved as a result
1257	of the appeal, the payment option chosen by the member may not
1258	be changed.
1259	2. If the member elects to receive early service
1260	retirement and the appeal is later denied, the member may not
1261	change his or her election of early retirement.
1262
1263	Before such regular or early retirement benefits may be paid by
1264	the division, the member must provide to the division a written
1265	statement indicating that the member understands that such
1266	changes are not permitted after he or she begins receiving the
1267	benefits.
1268	(e) Disability retirement benefit.--Upon the retirement of
1269	a member on his or her disability retirement date, the member
1270	shall receive a monthly benefit that shall begin to accrue on
1271	the first day of the month of disability retirement and shall be
1272	payable on the last day of that month and each month thereafter
1273	during his or her lifetime and continued disability.
1274	(f) Computation of disability retirement benefit.--The
1275	amount of each monthly payment shall be computed in the same
1276	manner as for a normal retirement benefit, in accordance with
1277	subsection (1), but shall be based on disability option
1278	actuarial equivalency tables and the average monthly
1279	compensation and creditable service of the member as of the
1280	disability retirement date, subject to the following conditions:
1281	1. If the member's disability occurred in the line of
1282	duty, the monthly Option 1 benefit shall not be less than:
1283	a. Forty-two percent of average monthly compensation as of
1284	the disability retirement date; or
1285	b. Sixty-five percent of the average monthly compensation
1286	as of the disability retirement date for a member of the special
1287	risk class who retires on or after July 1, 2000; or
1288	2. If the member's disability occurred other than in the
1289	line of duty, the monthly Option 1 benefit shall not be less
1290	than 25 percent of average monthly compensation as of the
1291	disability retirement date.
1292	(g) Reapplication.--A member, whose initial application
1293	for disability retirement has been denied, may reapply for
1294	disability benefits. However, such member's reapplication will
1295	be considered only if the member presents new medical evidence
1296	of a medical condition that existed prior to the member's
1297	termination of employment. The division may prescribe by rule
1298	procedures for reapplication and for review and approval or
1299	disapproval of reapplication.
1300	(h) Recovery from disability.--The administrator may
1301	require periodic reexaminations at the expense of the retirement
1302	fund. The division may adopt rules establishing procedures for
1303	conducting and review of such reexaminations.
1304	1. If the administrator finds that a member who is
1305	receiving disability benefits is, at any time prior to his or
1306	her normal retirement date, no longer disabled, the
1307	administrator shall direct that the benefits be discontinued.
1308	The decision of the administrator on this question shall be
1309	final and binding. If such member:
1310	a. Does not reenter the employ of an employer and was not
1311	vested as of the disability retirement date, he or she shall be
1312	entitled to the excess, if any, of his or her accumulated
1313	contributions over the total disability benefits received up to
1314	the date of recovery.
1315	b. Does not reenter the employ of an employer, but was
1316	vested as of the disability retirement date, he or she may elect
1317	to receive:
1318	(I) The excess, if any, of his or her accumulated
1319	contributions over the total disability benefits received up to
1320	the date of recovery; or
1321	(II) A deferred benefit commencing on the last day of the
1322	month of the normal retirement date which shall be payable on
1323	the last day of the month thereafter during his or her lifetime.
1324	The amount of such monthly benefit shall be computed in the
1325	same manner as for a normal retirement benefit, in accordance
1326	with subsection (1), but shall be based on average monthly
1327	compensation and creditable service as of the member's
1328	disability retirement date.
1329	c. Reenters employment of an employer within 6 months
1330	after recovery, the member's service will be deemed to have been
1331	continuous, but the period beginning with the first month for
1332	which he or she received a disability benefit payment and ending
1333	with the date he or she reentered employment will not be
1334	considered as creditable service for the purpose of computing
1335	benefits except as provided in sub-subparagraph d. As used in
1336	this section, the term "accumulated contributions" for such
1337	member means the excess of the member's accumulated
1338	contributions as of the disability retirement date over the
1339	total disability benefits received under paragraph (e).
1340	d. Terminates his or her disability benefit, reenters
1341	covered employment, and is continuously employed for a minimum
1342	of 1 year of creditable service, he or she may claim as
1343	creditable service the months during which he or she was
1344	receiving a disability benefit, upon payment of the required
1345	contributions. Contributions shall equal the total required
1346	employee and employer contribution rate applicable during the
1347	period the retiree received retirement benefits, multiplied
1348	times his or her rate of monthly compensation prior to the
1349	commencement of disability retirement for each month of the
1350	period claimed, plus 4 percent interest until July 1, 1975, and
1351	6.5 percent interest thereafter, compounded annually each June
1352	30 to the date of payment. If the member does not claim credit
1353	for all of the months he or she received disability benefits,
1354	the months claimed must be the most recent months of retirement.
1355	Such credit for periods of disability, when purchased under the
1356	Florida Retirement System, shall apply toward vesting
1357	requirements for eligibility to purchase additional credit for
1358	other service.
1359	2. Both the member receiving disability benefits who
1360	reenters employment and the employer employing such disability
1361	retiree shall notify the division immediately upon reemployment,
1362	and the division shall terminate such member's disability
1363	benefits, effective the first day of the month following the
1364	month in which notification of recovery is received. If the
1365	member is reemployed with a Florida Retirement System employer
1366	at the time of benefit termination, and he or she has received
1367	disability retirement benefit and salary payments concurrently
1368	prior to notifying the division, he or she may elect within 30
1369	days to:
1370	a. Retain the retirement benefits received prior to
1371	termination of disability benefits and begin receiving
1372	retirement service credit effective upon the date of termination
1373	of benefits; or
1374	b. Repay, within 12 months after his or her decision to
1375	receive service credit, the retirement benefits received for
1376	each month of reemployment prior to termination of disability
1377	benefits and begin receiving retirement service credit effective
1378	upon the date of reemployment. Any such unpaid benefits shall
1379	have compound interest of 6.5 percent added June 30.
1380
1381	A member may not receive both retirement service credit for
1382	employment and retirement benefits for the same month.
1383	3. If, after recovery of disability and reentry into
1384	covered employment, the member again becomes disabled and is
1385	again approved for disability retirement, the Option 1 monthly
1386	retirement benefit shall not be less than the Option 1 monthly
1387	benefit calculated at the time of the previous disability, plus
1388	any cost of living increases up to the time the disability
1389	benefit was terminated upon his or her reentry into covered
1390	employment.
1391	(i) Nonadmissible causes of disability.--A member shall
1392	not be entitled to receive any disability retirement benefit if
1393	the disability is a result of any of the following:
1394	1. Injury or disease sustained by the member while
1395	willfully participating in a riot, civil insurrection, or other
1396	act of violence or while committing a felony;
1397	2. Injury or disease sustained by the member after his or
1398	her employment has terminated; or
1399	3. Intentional, self-inflicted injury.
1400	(j) Disability retirement of justice or judge by order of
1401	Supreme Court.--
1402	1.If a member is a justice of the Supreme Court, judge of
1403	a district court of appeal, circuit judge, or judge of a county
1404	court who has served for 6 years or more as an elected
1405	constitutional judicial officer, including service as a judicial
1406	officer in any court abolished pursuant to Art. V of the State
1407	Constitution, and who is retired for disability by order of the
1408	Supreme Court upon recommendation of the Judicial Qualifications
1409	Commission pursuant to the provisions of Art. V of the State
1410	Constitution, the member's Option 1 monthly benefit as provided
1411	in subparagraph (6)(a)1. shall not be less than two-thirds of
1412	his or her monthly compensation as of the member's disability
1413	retirement date. Such a member may alternatively elect to
1414	receive a disability retirement benefit under any other option
1415	as provided in paragraph (6)(a).
1416	2. Should any justice or judge who is a member of the
1417	Florida Retirement System be retired for disability by order of
1418	the Supreme Court upon recommendation of the Judicial
1419	Qualifications Commission pursuant to the provisions of Art. V
1420	of the State Constitution, then all contributions to his or her
1421	account and all contributions made on his or her behalf by the
1422	employer shall be transferred to and deposited in the General
1423	Revenue Fund of the state, and there is hereby appropriated
1424	annually out of the General Revenue Fund, to be paid into the
1425	Florida Retirement System Fund, an amount necessary to pay the
1426	benefits of all justices and judges retired from the Florida
1427	Retirement System pursuant to Art. V of the State Constitution.
1428	(5) TERMINATION BENEFITS.--A member whose employment is
1429	terminated prior to retirement retains membership rights to
1430	previously earned member-noncontributory service credit, and to
1431	member-contributory service credit, if the member leaves the
1432	member contributions on deposit in his or her retirement
1433	account. If a terminated member receives a refund of member
1434	contributions, such member may reinstate membership rights to
1435	the previously earned service credit represented by the refund
1436	by completing 1 year of creditable service and repaying the
1437	refunded member contributions, plus interest.
1438	(a) A member whose employment is terminated for any reason
1439	other than death or retirement prior to becoming vested is
1440	entitled to the return of his or her accumulated contributions
1441	as of the date of termination.
1442	(b) A member whose employment is terminated for any reason
1443	other than death or retirement after becoming vested may elect
1444	to receive a deferred monthly benefit which shall begin to
1445	accrue on the first day of the month of normal or early
1446	retirement and shall be payable on the last day of that month
1447	and each month thereafter during his or her lifetime. The
1448	amount of monthly benefit shall be computed in the same manner
1449	as for a normal retirement benefit in accordance with subsection
1450	(1) or early retirement benefit in accordance with s.
1451	121.021(30), but based on average monthly compensation and
1452	creditable service as of the date of termination.
1453	(c) In lieu of the deferred monthly benefit provided in
1454	paragraph (b), the terminated member may elect to receive a
1455	lump-sum amount equal to his or her accumulated contributions as
1456	of the date of termination.
1457	(d) If any retired member dies without having received in
1458	benefit payments an amount equal to his or her accumulated
1459	contributions, there shall be payable to his or her designated
1460	beneficiary an amount equal to the excess, if any, of the
1461	member's accumulated contributions over the total monthly
1462	payments made to the member prior to the date of death.
1463	(e) A member shall be deemed a terminated member when
1464	termination of employment has occurred as provided in s.
1465	121.021(39).
1466	(f) Any member who has been found guilty by a verdict of a
1467	jury, or by the court trying the case without a jury, of
1468	committing, aiding, or abetting any embezzlement or theft from
1469	his or her employer, bribery in connection with the employment,
1470	or other felony specified in chapter 838, except ss. 838.15 and
1471	838.16, committed prior to retirement, or who has entered a plea
1472	of guilty or of nolo contendere to such crime, or any member
1473	whose employment is terminated by reason of the member's
1474	admitted commitment, aiding, or abetting of an embezzlement or
1475	theft from his or her employer, bribery, or other felony
1476	specified in chapter 838, except ss. 838.15 and 838.16, shall
1477	forfeit all rights and benefits under this chapter, except the
1478	return of his or her accumulated contributions as of the date of
1479	termination.
1480	(g) Any elected official who is convicted by the Senate of
1481	an impeachable offense shall forfeit all rights and benefits
1482	under this chapter, except the return of his or her accumulated
1483	contributions as of the date of the conviction.
1484	(h) Any member who, prior to retirement, is adjudged by a
1485	court of competent jurisdiction to have violated any state law
1486	against strikes by public employees, or who has been found
1487	guilty by such court of violating any state law prohibiting
1488	strikes by public employees, shall forfeit all rights and
1489	benefits under this chapter, except the return of his or her
1490	accumulated contributions as of the date of the conviction.
1491	(i) Any beneficiary who by a verdict of a jury or by the
1492	court trying the case without a jury is found guilty, or who has
1493	entered a plea of guilty or nolo contendere, of unlawfully and
1494	intentionally killing or procuring the death of the member
1495	forfeits all rights to the deceased member's benefits under this
1496	chapter, and the benefits will be paid as if such beneficiary
1497	had predeceased the decedent.
1498	(j) Benefits shall not be paid by the division pending
1499	final resolution of such charges against a member or beneficiary
1500	if the resolution of such charges could require the forfeiture
1501	of benefits as provided in paragraph (f), paragraph (g),
1502	paragraph (h), or paragraph (i).
1503	(6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY
1504	RETIREMENT BENEFITS.--
1505	(a) Prior to the receipt of the first monthly retirement
1506	payment, a member shall elect to receive the retirement benefits
1507	to which he or she is entitled under subsection (1), subsection
1508	(2), subsection (3), or subsection (4) in accordance with one of
1509	the following options:
1510	1. The maximum retirement benefit payable to the member
1511	during his or her lifetime.
1512	2. A decreased retirement benefit payable to the member
1513	during his or her lifetime and, in the event of his or her death
1514	within a period of 10 years after retirement, the same monthly
1515	amount payable for the balance of such 10-year period to his or
1516	her beneficiary or, in case the beneficiary is deceased, in
1517	accordance with subsection (8) as though no beneficiary had been
1518	named.
1519	3. A decreased retirement benefit payable during the joint
1520	lifetime of both the member and his or her joint annuitant and
1521	which, after the death of either, shall continue during the
1522	lifetime of the survivor in the same amount, subject to the
1523	provisions of subsection (12).
1524	4. A decreased retirement benefit payable during the joint
1525	lifetime of the member and his or her joint annuitant and which,
1526	after the death of either, shall continue during the lifetime of
1527	the survivor in an amount equal to 66 2/3 percent of the amount
1528	that was payable during the joint lifetime of the member and his
1529	or her joint annuitant, subject to the provisions of subsection
1530	(12).
1531
1532	The spouse of any member who elects to receive the benefit
1533	provided under subparagraph 1. or subparagraph 2. shall be
1534	notified of and shall acknowledge any such election. The
1535	division shall establish by rule a method for selecting the
1536	appropriate actuarial factor for optional forms of benefits
1537	selected under subparagraphs 3. and 4., based on the age of the
1538	member and the joint annuitant.
1539	(b) The benefit payable under any option stated above
1540	shall be the actuarial equivalent, based on tables adopted by
1541	the administrator for this purpose, of the amount to which the
1542	member was otherwise entitled.
1543	(c) A member who elects the option in subparagraph (a)2.
1544	shall, in accordance with subsection (8), designate one or more
1545	persons to receive the benefits payable in the event of his or
1546	her death. Such persons shall be the beneficiaries of the
1547	member. The member may also designate one or more contingent
1548	beneficiaries to receive any benefits remaining upon the death
1549	of the primary beneficiary.
1550	(d) A member who elects the option in subparagraph (a)3.
1551	or subparagraph (a)4. shall, on a form provided for that
1552	purpose, designate a joint annuitant to receive the benefits
1553	which continue to be payable upon the death of the member.
1554	After benefits have commenced under the option in subparagraph
1555	(a)3. or subparagraph (a)4., the following shall apply:
1556	1. A retired member may change his or her designation of a
1557	joint annuitant only twice. If such a retired member desires to
1558	change his or her designation of a joint annuitant, he or she
1559	shall file with the division a notarized "change of joint
1560	annuitant" form and shall notify the former joint annuitant in
1561	writing of such change. Effective the first day of the next
1562	month following receipt by the division of a completed change of
1563	joint annuitant form, the division shall adjust the member's
1564	monthly benefit by the application of actuarial tables and
1565	calculations developed to ensure that the benefit paid is the
1566	actuarial equivalent of the present value of the member's
1567	current benefit. The consent of a retired member's first
1568	designated joint annuitant to any such change shall not be
1569	required. However, if either the member or the joint annuitant
1570	dies before the effective date of the request for change of
1571	joint annuitant, the requested change shall be void, and
1572	survivor benefits, if any, shall be paid as if no request had
1573	been made.
1574	2. In the event of the dissolution of marriage of a
1575	retired member and a joint annuitant, such member may make an
1576	election to nullify the joint annuitant designation of the
1577	former spouse, unless there is an existing qualified domestic
1578	relations order preventing such action. The member shall file
1579	with the division a written, notarized nullification which shall
1580	be effective on the first day of the next month following
1581	receipt by the division. Benefits shall be paid as if the
1582	former spouse predeceased the member. A member who makes such
1583	an election may not reverse the nullification but may designate
1584	a new joint annuitant in accordance with subparagraph 1.
1585	(e) The election of an option shall be null and void if
1586	the member dies before the effective date of retirement.
1587	(f) A member who elects to receive benefits under the
1588	option in subparagraph (a)3. may designate one or more qualified
1589	persons, either a spouse or other dependent, as his or her joint
1590	annuitant to receive the benefits after the member's death in
1591	whatever proportion he or she so assigns to each person named as
1592	joint annuitant. The division shall adopt appropriate actuarial
1593	tables and calculations necessary to ensure that the benefit
1594	paid is the actuarial equivalent of the benefit to which the
1595	member is otherwise entitled under the option in subparagraph
1596	(a)1.
1597	(g) Upon the death of a retired member or beneficiary
1598	receiving monthly benefits under this chapter, the monthly
1599	benefits shall be paid through the last day of the month of
1600	death and shall terminate, or be adjusted, if applicable, as of
1601	that date in accordance with the optional form of benefit
1602	selected at the time of retirement.
1603	(h) The option selected or determined for payment of
1604	benefits as provided in this section shall be final and
1605	irrevocable at the time a benefit payment is cashed or deposited
1606	or credited to the Deferred Retirement Option Program as
1607	provided in subsection (13).
1608	(7) DEATH BENEFITS.--
1609	(a) If the employment of a member is terminated by reason
1610	of his or her death prior to being vested, except as provided in
1611	paragraph (f), there shall be payable to his or her designated
1612	beneficiary the member's accumulated contributions.
1613	(b) If the employment of an active member who may or may
1614	not have applied for retirement is terminated by reason of his
1615	or her death subsequent to becoming vested and prior to his or
1616	her effective date of retirement, if established, it shall be
1617	assumed that the member retired as of the date of death in
1618	accordance with subsection (1) if eligible for normal retirement
1619	benefits, subsection (2) if eligible for benefits payable for
1620	dual normal retirement, or subsection (3) if eligible for early
1621	retirement benefits. Benefits payable to the designated
1622	beneficiary shall be as follows:
1623	1. For a beneficiary who qualifies as a joint annuitant,
1624	the optional form of payment provided in accordance with
1625	subparagraph (6)(a)3. shall be paid for the joint annuitant's
1626	lifetime.
1627	2. For a beneficiary who does not qualify as a joint
1628	annuitant, no continuing monthly benefit shall be paid and the
1629	beneficiary shall be entitled only to the return of the member's
1630	personal contributions. If there is no monetary interest in the
1631	member's retirement account for which such beneficiary is
1632	eligible, the beneficiary shall be the next named beneficiary
1633	or, if no other beneficiary is named, the beneficiary shall be
1634	the next eligible beneficiary according to subsection (8).
1635	(c) If a retiring member dies on or after the effective
1636	date of retirement, but prior to a benefit payment being cashed
1637	or deposited, or credited to the Deferred Retirement Option
1638	Program, benefits shall be paid as follows:
1639	1. For a designated beneficiary who qualifies as a joint
1640	annuitant, benefits shall be paid in the optional form of
1641	payment provided in subparagraph (6)(a)3. for the joint
1642	annuitant's lifetime or, if the member chose the optional form
1643	of payment provided in subparagraph (6)(a)2., the joint
1644	annuitant may select the form provided in either subparagraph
1645	(6)(a)2. or subparagraph (6)(a)3.
1646	2. For a designated beneficiary who does not qualify as a
1647	joint annuitant, any benefits payable shall be paid as provided
1648	in the option selected by the member; or if the member has not
1649	selected an option, benefits shall be paid in the optional form
1650	of payment provided in subparagraph (6)(a)1.
1651	(d) Notwithstanding any other provision in this chapter to
1652	the contrary, with the exception of the Deferred Retirement
1653	Option Program, as provided in subsection (13):
1654	1. The surviving spouse of any member killed in the line
1655	of duty may receive a monthly pension equal to one-half of the
1656	monthly salary being received by the member at the time of death
1657	for the rest of the surviving spouse's lifetime or, if the
1658	member was vested, such surviving spouse may elect to receive a
1659	benefit as provided in paragraph (b). Benefits provided by this
1660	paragraph shall supersede any other distribution that may have
1661	been provided by the member's designation of beneficiary.
1662	2. If the surviving spouse of a member killed in the line
1663	of duty dies, the monthly payments which would have been payable
1664	to such surviving spouse had such surviving spouse lived shall
1665	be paid for the use and benefit of such member's child or
1666	children under 18 years of age and unmarried until the 18th
1667	birthday of the member's youngest child.
1668	3. If a member killed in the line of duty leaves no
1669	surviving spouse but is survived by a child or children under 18
1670	years of age, the benefits provided by subparagraph 1., normally
1671	payable to a surviving spouse, shall be paid for the use and
1672	benefit of such member's child or children under 18 years of age
1673	and unmarried until the 18th birthday of the member's youngest
1674	child.
1675	4. The surviving spouse of a member whose benefit
1676	terminated because of remarriage shall have the benefit
1677	reinstated beginning July 1, 1993, at an amount that would have
1678	been payable had the benefit not been terminated.
1679	(e) The surviving spouse or other dependent of any member,
1680	except a member who participated in the Deferred Retirement
1681	Option Program, whose employment is terminated by death shall,
1682	upon application to the administrator, be permitted to pay the
1683	required contributions for any service performed by the member
1684	which could have been claimed by the member at the time of his
1685	or her death. Such service shall be added to the creditable
1686	service of the member and shall be used in the calculation of
1687	any benefits which may be payable to the surviving spouse or
1688	other surviving dependent.
1689	(f) Notwithstanding any other provisions in this chapter
1690	to the contrary and upon application to the administrator, an
1691	eligible joint annuitant, of a member whose employment is
1692	terminated by death within 1 year of such member satisfying the
1693	service requirements for vesting and retirement eligibility,
1694	shall be permitted to purchase only the additional service
1695	credit necessary to vest and qualify for retirement benefits,
1696	not to exceed a total of 1 year of credit, by one or a
1697	combination of the following methods:
1698	1. Such eligible joint annuitant may use the deceased
1699	member's accumulated hours of annual, sick, and compensatory
1700	leave to purchase additional creditable service, on an hour by
1701	hour basis, provided that such deceased member's accumulated
1702	leave is sufficient to cover the additional months required.
1703	For each month of service credit needed prior to the final
1704	month, credit for the total number of work hours in that month
1705	must be purchased, using an equal number of the deceased
1706	member's accumulated leave hours. Service credit required for
1707	the final month in which the deceased member would have become
1708	vested shall be awarded upon the purchase of 1 hour of credit.
1709	Such eligible joint annuitant shall pay the contribution rate in
1710	effect for the period of time being claimed for the deceased
1711	member's class of membership, multiplied by such member's
1712	monthly salary at the time of death, plus 6.5 percent interest
1713	compounded annually. The accumulated leave payment used in the
1714	average final compensation shall not include that portion of the
1715	payment that represents any leave hours used in the purchase of
1716	such creditable service.
1717	2. Such eligible joint annuitant may purchase additional
1718	months of creditable service for any periods of out-of-state
1719	service as provided in s. 121.1115, and in-state service as
1720	provided in s. 121.1122, that the deceased member would have
1721	been eligible to purchase prior to his or her death.
1722
1723	Service purchased under this paragraph shall be added to the
1724	creditable service of the member and used to vest for retirement
1725	eligibility, and shall be used in the calculation of any
1726	benefits which may be payable to the eligible joint annuitant.
1727	Any benefits paid in accordance with this paragraph shall only
1728	be made prospectively.
1729	(g) Notwithstanding any other provisions in this chapter
1730	to the contrary, if any member who is vested dies and the
1731	surviving spouse receives a refund of the accumulated
1732	contributions made to the retirement trust fund, such spouse may
1733	pay to the Division of Retirement an amount equal to the sum of
1734	the amount of the deceased member's accumulated contributions
1735	previously refunded plus interest at 4 percent compounded
1736	annually each June 30 from the date of refund until July 1,
1737	1975, and 6.5 percent interest compounded annually thereafter,
1738	until full payment is made, and receive the monthly retirement
1739	benefit as provided in paragraph (b).
1740	(h) The designated beneficiary who is the surviving spouse
1741	or other dependent of a member whose employment is terminated by
1742	death subsequent to becoming vested, but prior to actual
1743	retirement, may elect to receive a deferred monthly benefit as
1744	if the member had lived and had elected a deferred monthly
1745	benefit, as provided in paragraph (5)(b), calculated on the
1746	basis of the average final compensation and creditable service
1747	of the member at his or her death and the age the member would
1748	have attained on the commencement date of the deferred benefit
1749	elected by the beneficiary, paid in accordance with option 3 of
1750	paragraph (6)(a).
1751	(8) DESIGNATION OF BENEFICIARIES.--
1752	(a) Each member may, on a form provided for that purpose,
1753	signed and filed with the division, designate a choice of one or
1754	more persons, named sequentially or jointly, as his or her
1755	beneficiary who shall receive the benefits, if any, which may be
1756	payable in the event of the member's death pursuant to the
1757	provisions of this chapter. If no beneficiary is named in the
1758	manner provided above, or if no beneficiary designated by the
1759	member survives the member, the beneficiary shall be the spouse
1760	of the deceased, if living. If the member's spouse is not alive
1761	at his or her death, the beneficiary shall be the living
1762	children of the member. If no children survive, the beneficiary
1763	shall be the member's father or mother, if living; otherwise,
1764	the beneficiary shall be the member's estate. The beneficiary
1765	most recently designated by a member on a form or letter filed
1766	with the division shall be the beneficiary entitled to any
1767	benefits payable at the time of the member's death, except that
1768	benefits shall be paid as provided in paragraph (7)(d) when
1769	death occurs in the line of duty. Notwithstanding any other
1770	provisions in this subsection to the contrary, for a member who
1771	dies prior to his or her effective date of retirement on or
1772	after January 1, 1999, the spouse at the time of death shall be
1773	the member's beneficiary unless such member designates a
1774	different beneficiary as provided herein subsequent to the
1775	member's most recent marriage.
1776	(b) A designated beneficiary of a retirement account for
1777	whom there is a monetary interest may disclaim his or her
1778	monetary interest as provided in s. 689.21, and in accordance
1779	with division rules governing such disclaimers. Such disclaimer
1780	must be filed within 24 months after the event that created the
1781	interest, that is, the death of the member or annuitant.
1782	(c) Notwithstanding the member's designation of benefits
1783	to be paid through a trust to a beneficiary that is a natural
1784	person as provided in s. 121.021(46), and notwithstanding the
1785	provisions of the trust, benefits shall be paid directly to the
1786	beneficiary if such person is no longer a minor or incapacitated
1787	as defined in s. 744.102(10) and (11).
1788	(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1789	(a) Any person who is retired under this chapter, except
1790	under the disability retirement provisions of subsection (4),
1791	may be employed by an employer that does not participate in a
1792	state-administered retirement system and may receive
1793	compensation from that employment without limiting or
1794	restricting in any way the retirement benefits payable to that
1795	person.
1796	(b)1. Any person who is retired under this chapter, except
1797	under the disability retirement provisions of subsection (4),
1798	may be reemployed by any private or public employer after
1799	retirement and receive retirement benefits and compensation from
1800	his or her employer without any limitations, except that a
1801	person may not receive both a salary from reemployment with any
1802	agency participating in the Florida Retirement System and
1803	retirement benefits under this chapter for a period of 12 months
1804	immediately subsequent to the date of retirement. However, a
1805	DROP participant shall continue employment and receive a salary
1806	during the period of participation in the Deferred Retirement
1807	Option Program, as provided in subsection (13).
1808	2. Any person to whom the limitation in subparagraph 1.
1809	applies who violates such reemployment limitation and who is
1810	reemployed with any agency participating in the Florida
1811	Retirement System before completion of the 12-month limitation
1812	period shall give timely notice of this fact in writing to the
1813	employer and to the division and shall have his or her
1814	retirement benefits suspended for the balance of the 12-month
1815	limitation period. Any person employed in violation of this
1816	paragraph and any employing agency which knowingly employs or
1817	appoints such person without notifying the Division of
1818	Retirement to suspend retirement benefits shall be jointly and
1819	severally liable for reimbursement to the retirement trust fund
1820	of any benefits paid during the reemployment limitation period.
1821	To avoid liability, such employing agency shall have a written
1822	statement from the retiree that he or she is not retired from a
1823	state-administered retirement system. Any retirement benefits
1824	received while reemployed during this reemployment limitation
1825	period shall be repaid to the retirement trust fund, and
1826	retirement benefits shall remain suspended until such repayment
1827	has been made. Benefits suspended beyond the reemployment
1828	limitation shall apply toward repayment of benefits received in
1829	violation of the reemployment limitation.
1830	3. A district school board may reemploy a retired member
1831	as a substitute or hourly teacher, education paraprofessional,
1832	transportation assistant, bus driver, or food service worker on
1833	a noncontractual basis after he or she has been retired for 1
1834	calendar month, in accordance with s. 121.021(39). A district
1835	school board may reemploy a retired member as instructional
1836	personnel, as defined in s. 1012.01(2)(a), on an annual
1837	contractual basis after he or she has been retired for 1
1838	calendar month, in accordance with s. 121.021(39). Any other
1839	retired member who is reemployed within 1 calendar month after
1840	retirement shall void his or her application for retirement
1841	benefits. District school boards reemploying such teachers,
1842	education paraprofessionals, transportation assistants, bus
1843	drivers, or food service workers are subject to the retirement
1844	contribution required by subparagraph 7.
1845	4. A community college board of trustees may reemploy a
1846	retired member as an adjunct instructor, that is, an instructor
1847	who is noncontractual and part-time, or as a participant in a
1848	phased retirement program within the Florida Community College
1849	System, after he or she has been retired for 1 calendar month,
1850	in accordance with s. 121.021(39). Any retired member who is
1851	reemployed within 1 calendar month after retirement shall void
1852	his or her application for retirement benefits. Boards of
1853	trustees reemploying such instructors are subject to the
1854	retirement contribution required in subparagraph 7. A retired
1855	member may be reemployed as an adjunct instructor for no more
1856	than 780 hours during the first 12 months of retirement. Any
1857	retired member reemployed for more than 780 hours during the
1858	first 12 months of retirement shall give timely notice in
1859	writing to the employer and to the division of the date he or
1860	she will exceed the limitation. The division shall suspend his
1861	or her retirement benefits for the remainder of the first 12
1862	months of retirement. Any person employed in violation of this
1863	subparagraph and any employing agency which knowingly employs or
1864	appoints such person without notifying the Division of
1865	Retirement to suspend retirement benefits shall be jointly and
1866	severally liable for reimbursement to the retirement trust fund
1867	of any benefits paid during the reemployment limitation period.
1868	To avoid liability, such employing agency shall have a written
1869	statement from the retiree that he or she is not retired from a
1870	state-administered retirement system. Any retirement benefits
1871	received by a retired member while reemployed in excess of 780
1872	hours during the first 12 months of retirement shall be repaid
1873	to the Retirement System Trust Fund, and retirement benefits
1874	shall remain suspended until repayment is made. Benefits
1875	suspended beyond the end of the retired member's first 12 months
1876	of retirement shall apply toward repayment of benefits received
1877	in violation of the 780-hour reemployment limitation.
1878	5. The State University System may reemploy a retired
1879	member as an adjunct faculty member or as a participant in a
1880	phased retirement program within the State University System
1881	after the retired member has been retired for 1 calendar month,
1882	in accordance with s. 121.021(39). Any retired member who is
1883	reemployed within 1 calendar month after retirement shall void
1884	his or her application for retirement benefits. The State
1885	University System is subject to the retired contribution
1886	required in subparagraph 7., as appropriate. A retired member
1887	may be reemployed as an adjunct faculty member or a participant
1888	in a phased retirement program for no more than 780 hours during
1889	the first 12 months of his or her retirement. Any retired
1890	member reemployed for more than 780 hours during the first 12
1891	months of retirement shall give timely notice in writing to the
1892	employer and to the division of the date he or she will exceed
1893	the limitation. The division shall suspend his or her
1894	retirement benefits for the remainder of the first 12 months of
1895	retirement. Any person employed in violation of this
1896	subparagraph and any employing agency which knowingly employs or
1897	appoints such person without notifying the Division of
1898	Retirement to suspend retirement benefits shall be jointly and
1899	severally liable for reimbursement to the retirement trust fund
1900	of any benefits paid during the reemployment limitation period.
1901	To avoid liability, such employing agency shall have a written
1902	statement from the retiree that he or she is not retired from a
1903	state-administered retirement system. Any retirement benefits
1904	received by a retired member while reemployed in excess of 780
1905	hours during the first 12 months of retirement shall be repaid
1906	to the Retirement System Trust Fund, and retirement benefits
1907	shall remain suspended until repayment is made. Benefits
1908	suspended beyond the end of the retired member's first 12 months
1909	of retirement shall apply toward repayment of benefits received
1910	in violation of the 780-hour reemployment limitation.
1911	6. The Board of Trustees of the Florida School for the
1912	Deaf and the Blind may reemploy a retired member as a substitute
1913	teacher, substitute residential instructor, or substitute nurse
1914	on a noncontractual basis after he or she has been retired for 1
1915	calendar month, in accordance with s. 121.021(39). Any retired
1916	member who is reemployed within 1 calendar month after
1917	retirement shall void his or her application for retirement
1918	benefits. The Board of Trustees of the Florida School for the
1919	Deaf and the Blind reemploying such teachers, residential
1920	instructors, or nurses is subject to the retirement contribution
1921	required by subparagraph 7. Reemployment of a retired member as
1922	a substitute teacher, substitute residential instructor, or
1923	substitute nurse is limited to 780 hours during the first 12
1924	months of his or her retirement. Any retired member reemployed
1925	for more than 780 hours during the first 12 months of retirement
1926	shall give timely notice in writing to the employer and to the
1927	division of the date he or she will exceed the limitation. The
1928	division shall suspend his or her retirement benefits for the
1929	remainder of the first 12 months of retirement. Any person
1930	employed in violation of this subparagraph and any employing
1931	agency which knowingly employs or appoints such person without
1932	notifying the Division of Retirement to suspend retirement
1933	benefits shall be jointly and severally liable for reimbursement
1934	to the retirement trust fund of any benefits paid during the
1935	reemployment limitation period. To avoid liability, such
1936	employing agency shall have a written statement from the retiree
1937	that he or she is not retired from a state-administered
1938	retirement system. Any retirement benefits received by a retired
1939	member while reemployed in excess of 780 hours during the first
1940	12 months of retirement shall be repaid to the Retirement System
1941	Trust Fund, and his or her retirement benefits shall remain
1942	suspended until payment is made. Benefits suspended beyond the
1943	end of the retired member's first 12 months of retirement shall
1944	apply toward repayment of benefits received in violation of the
1945	780-hour reemployment limitation.
1946	7. The employment by an employer of any retiree or DROP
1947	participant of any state-administered retirement system shall
1948	have no effect on the average final compensation or years of
1949	creditable service of the retiree or DROP participant. Prior to
1950	July 1, 1991, upon employment of any person, other than an
1951	elected officer as provided in s. 121.053, who has been retired
1952	under any state-administered retirement program, the employer
1953	shall pay retirement contributions in an amount equal to the
1954	unfunded actuarial liability portion of the employer
1955	contribution which would be required for regular members of the
1956	Florida Retirement System. Effective July 1, 1991, contributions
1957	shall be made as provided in s. 121.122 for retirees with
1958	renewed membership or subsection (13) with respect to DROP
1959	participants.
1960	8. Any person who has previously retired and who is
1961	holding an elective public office or an appointment to an
1962	elective public office eligible for the Elected Officers' Class
1963	on or after July 1, 1990, shall be enrolled in the Florida
1964	Retirement System as provided in s. 121.053(1)(b) or, if holding
1965	an elective public office that does not qualify for the Elected
1966	Officers' Class on or after July 1, 1991, shall be enrolled in
1967	the Florida Retirement System as provided in s. 121.122, and
1968	shall continue to receive retirement benefits as well as
1969	compensation for the elected officer's service for as long as he
1970	or she remains in elective office. However, any retired member
1971	who served in an elective office prior to July 1, 1990,
1972	suspended his or her retirement benefit, and had his or her
1973	Florida Retirement System membership reinstated shall, upon
1974	retirement from such office, have his or her retirement benefit
1975	recalculated to include the additional service and compensation
1976	earned.
1977	9. Any person who is holding an elective public office
1978	which is covered by the Florida Retirement System and who is
1979	concurrently employed in nonelected covered employment may elect
1980	to retire while continuing employment in the elective public
1981	office, provided that he or she shall be required to terminate
1982	his or her nonelected covered employment. Any person who
1983	exercises this election shall receive his or her retirement
1984	benefits in addition to the compensation of the elective office
1985	without regard to the time limitations otherwise provided in
1986	this subsection. No person who seeks to exercise the provisions
1987	of this subparagraph, as the same existed prior to May 3, 1984,
1988	shall be deemed to be retired under those provisions, unless
1989	such person is eligible to retire under the provisions of this
1990	subparagraph, as amended by chapter 84-11, Laws of Florida.
1991	10. The limitations of this paragraph apply to
1992	reemployment in any capacity with an "employer" as defined in s.
1993	121.021(10), irrespective of the category of funds from which
1994	the person is compensated.
1995	11. An employing agency may reemploy a retired member as a
1996	firefighter or paramedic after the retired member has been
1997	retired for 1 calendar month, in accordance with s. 121.021(39).
1998	Any retired member who is reemployed within 1 calendar month
1999	after retirement shall void his or her application for
2000	retirement benefits. The employing agency reemploying such
2001	firefighter or paramedic is subject to the retired contribution
2002	required in subparagraph 8. Reemployment of a retired
2003	firefighter or paramedic is limited to no more than 780 hours
2004	during the first 12 months of his or her retirement. Any retired
2005	member reemployed for more than 780 hours during the first 12
2006	months of retirement shall give timely notice in writing to the
2007	employer and to the division of the date he or she will exceed
2008	the limitation. The division shall suspend his or her retirement
2009	benefits for the remainder of the first 12 months of retirement.
2010	Any person employed in violation of this subparagraph and any
2011	employing agency which knowingly employs or appoints such person
2012	without notifying the Division of Retirement to suspend
2013	retirement benefits shall be jointly and severally liable for
2014	reimbursement to the Retirement System Trust Fund of any
2015	benefits paid during the reemployment limitation period. To
2016	avoid liability, such employing agency shall have a written
2017	statement from the retiree that he or she is not retired from a
2018	state-administered retirement system. Any retirement benefits
2019	received by a retired member while reemployed in excess of 780
2020	hours during the first 12 months of retirement shall be repaid
2021	to the Retirement System Trust Fund, and retirement benefits
2022	shall remain suspended until repayment is made. Benefits
2023	suspended beyond the end of the retired member's first 12 months
2024	of retirement shall apply toward repayment of benefits received
2025	in violation of the 780-hour reemployment limitation.
2026	(10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the
2027	intent of the Legislature that future benefit increases enacted
2028	into law in this chapter shall be financed concurrently by
2029	increased contributions or other adequate funding, and such
2030	funding shall be based on sound actuarial data as developed by
2031	the actuary or state retirement actuary, as provided in ss.
2032	121.021(6) and 121.192.
2033	(11) A member who becomes eligible to retire and has
2034	accumulated the maximum benefit of 100 percent of average final
2035	compensation may continue in active service, and, if upon the
2036	member's retirement the member elects to receive a retirement
2037	compensation pursuant to subsection (2), subsection (6), or
2038	subsection (7), the actuarial equivalent percentage factor
2039	applicable to the age of such member at the time the member
2040	reached the maximum benefit and to the age, at that time, of the
2041	member's spouse shall determine the amount of benefits to be
2042	paid.
2043	(12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR
2044	BENEFITS.--Notwithstanding any provision of this chapter to the
2045	contrary, for members with an effective date of retirement, or
2046	date of death if prior to retirement, on or after January 1,
2047	1996, the named joint annuitant, as defined in s.
2048	121.021(28)(b), who is eligible to receive benefits under
2049	subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive
2050	the maximum monthly retirement benefit that would have been
2051	payable to the member under subparagraph (6)(a)1.; however,
2052	payment of such benefit shall cease the month the joint
2053	annuitant attains age 25 unless such joint annuitant is disabled
2054	and incapable of self-support, in which case, benefits shall
2055	cease when the joint annuitant is no longer disabled. The
2056	administrator may require proof of disability or continued
2057	disability in the same manner as is provided for a member
2058	seeking or receiving a disability retirement benefit under
2059	subsection (4).
2060	(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
2061	subject to the provisions of this section, the Deferred
2062	Retirement Option Program, hereinafter referred to as the DROP,
2063	is a program under which an eligible member of the Florida
2064	Retirement System may elect to participate, deferring receipt of
2065	retirement benefits while continuing employment with his or her
2066	Florida Retirement System employer. The deferred monthly
2067	benefits shall accrue in the System Trust Fund on behalf of the
2068	participant, plus interest compounded monthly, for the specified
2069	period of the DROP participation, as provided in paragraph (c).
2070	Upon termination of employment, the participant shall receive
2071	the total DROP benefits and begin to receive the previously
2072	determined normal retirement benefits. Participation in the DROP
2073	does not guarantee employment for the specified period of DROP.
2074	Participation in the DROP by an eligible member beyond the
2075	initial 60-month period as authorized in this subsection shall
2076	be on an annual contractual basis for all participants.
2077	(a) Eligibility of member to participate in the DROP.--All
2078	active Florida Retirement System members in a regularly
2079	established position, and all active members of either the
2080	Teachers' Retirement System established in chapter 238 or the
2081	State and County Officers' and Employees' Retirement System
2082	established in chapter 122 which systems are consolidated within
2083	the Florida Retirement System under s. 121.011, are eligible to
2084	elect participation in the DROP provided that:
2085	1. The member is not a renewed member of the Florida
2086	Retirement System under s. 121.122, or a member of the State
2087	Community College System Optional Retirement Program under s.
2088	121.051, the Senior Management Service Optional Annuity Program
2089	under s. 121.055, or the optional retirement program for the
2090	State University System under s. 121.35.
2091	2. Except as provided in subparagraph 6., election to
2092	participate is made within 12 months immediately following the
2093	date on which the member first reaches normal retirement date,
2094	or, for a member who reaches normal retirement date based on
2095	service before he or she reaches age 62, or age 55 for Special
2096	Risk Class members, election to participate may be deferred to
2097	the 12 months immediately following the date the member attains
2098	57, or age 52 for Special Risk Class members. For a member who
2099	first reached normal retirement date or the deferred eligibility
2100	date described above prior to the effective date of this
2101	section, election to participate shall be made within 12 months
2102	after the effective date of this section. A member who fails to
2103	make an election within such 12-month limitation period shall
2104	forfeit all rights to participate in the DROP. The member shall
2105	advise his or her employer and the division in writing of the
2106	date on which the DROP shall begin. Such beginning date may be
2107	subsequent to the 12-month election period, but must be within
2108	the 60-month or, with respect to members who are instructional
2109	personnel employed by the Florida School for the Deaf and the
2110	Blind and who have received authorization by the Board of
2111	Trustees of the Florida School for the Deaf and the Blind to
2112	participate in the DROP beyond 60 months, or who are
2113	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
2114	grades K-12 and who have received authorization by the district
2115	school superintendent to participate in the DROP beyond 60
2116	months, the 96-month limitation period as provided in
2117	subparagraph (b)1. When establishing eligibility of the member
2118	to participate in the DROP for the 60-month or, with respect to
2119	members who are instructional personnel employed by the Florida
2120	School for the Deaf and the Blind and who have received
2121	authorization by the Board of Trustees of the Florida School for
2122	the Deaf and the Blind to participate in the DROP beyond 60
2123	months, or who are instructional personnel as defined in s.
2124	1012.01(2)(a)-(d) in grades K-12 and who have received
2125	authorization by the district school superintendent to
2126	participate in the DROP beyond 60 months, the 96-month maximum
2127	participation period, the member may elect to include or exclude
2128	any optional service credit purchased by the member from the
2129	total service used to establish the normal retirement date. A
2130	member with dual normal retirement dates shall be eligible to
2131	elect to participate in DROP within 12 months after attaining
2132	normal retirement date in either class.
2133	3. The employer of a member electing to participate in the
2134	DROP, or employers if dually employed, shall acknowledge in
2135	writing to the division the date the member's participation in
2136	the DROP begins and the date the member's employment and DROP
2137	participation will terminate.
2138	4. Simultaneous employment of a participant by additional
2139	Florida Retirement System employers subsequent to the
2140	commencement of participation in the DROP shall be permissible
2141	provided such employers acknowledge in writing a DROP
2142	termination date no later than the participant's existing
2143	termination date or the 60-month limitation period as provided
2144	in subparagraph (b)1.
2145	5. A DROP participant may change employers while
2146	participating in the DROP, subject to the following:
2147	a. A change of employment must take place without a break
2148	in service so that the member receives salary for each month of
2149	continuous DROP participation. If a member receives no salary
2150	during a month, DROP participation shall cease unless the
2151	employer verifies a continuation of the employment relationship
2152	for such participant pursuant to s. 121.021(39)(b).
2153	b. Such participant and new employer shall notify the
2154	division on forms required by the division as to the identity of
2155	the new employer.
2156	c. The new employer shall acknowledge, in writing, the
2157	participant's DROP termination date, which may be extended but
2158	not beyond the original 60-month or, with respect to members who
2159	are instructional personnel employed by the Florida School for
2160	the Deaf and the Blind and who have received authorization by
2161	the Board of Trustees of the Florida School for the Deaf and the
2162	Blind to participate in the DROP beyond 60 months, or who are
2163	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
2164	grades K-12 and who have received authorization by the district
2165	school superintendent to participate in the DROP beyond 60
2166	months, the 96-month period provided in subparagraph (b)1.,
2167	shall acknowledge liability for any additional retirement
2168	contributions and interest required if the participant fails to
2169	timely terminate employment, and shall be subject to the
2170	adjustment required in sub-subparagraph (c)5.d.
2171	6. Effective July 1, 2001, for instructional personnel as
2172	defined in s. 1012.01(2), election to participate in the DROP
2173	shall be made at any time following the date on which the member
2174	first reaches normal retirement date. The member shall advise
2175	his or her employer and the division in writing of the date on
2176	which the Deferred Retirement Option Program shall begin. When
2177	establishing eligibility of the member to participate in the
2178	DROP for the 60-month or, with respect to members who are
2179	instructional personnel employed by the Florida School for the
2180	Deaf and the Blind and who have received authorization by the
2181	Board of Trustees of the Florida School for the Deaf and the
2182	Blind to participate in the DROP beyond 60 months, or who are
2183	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
2184	grades K-12 and who have received authorization by the district
2185	school superintendent to participate in the DROP beyond 60
2186	months, the 96-month maximum participation period, as provided
2187	in subparagraph (b)1., the member may elect to include or
2188	exclude any optional service credit purchased by the member from
2189	the total service used to establish the normal retirement date.
2190	A member with dual normal retirement dates shall be eligible to
2191	elect to participate in either class.
2192	(b) Participation in the DROP.--
2193	1. An eligible member may elect to participate in the DROP
2194	for a period not to exceed a maximum of 60 calendar months or,
2195	with respect to members who are instructional personnel employed
2196	by the Florida School for the Deaf and the Blind and who have
2197	received authorization by the Board of Trustees of the Florida
2198	School for the Deaf and the Blind to participate in the DROP
2199	beyond 60 months, or who are instructional personnel as defined
2200	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
2201	authorization by the district school superintendent to
2202	participate in the DROP beyond 60 calendar months, 96 calendar
2203	months immediately following the date on which the member first
2204	reaches his or her normal retirement date or the date to which
2205	he or she is eligible to defer his or her election to
2206	participate as provided in subparagraph (a)2. However, a member
2207	who has reached normal retirement date prior to the effective
2208	date of the DROP shall be eligible to participate in the DROP
2209	for a period of time not to exceed 60 calendar months or, with
2210	respect to members who are instructional personnel employed by
2211	the Florida School for the Deaf and the Blind and who have
2212	received authorization by the Board of Trustees of the Florida
2213	School for the Deaf and the Blind to participate in the DROP
2214	beyond 60 months, or who are instructional personnel as defined
2215	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
2216	authorization by the district school superintendent to
2217	participate in the DROP beyond 60 calendar months, 96 calendar
2218	months immediately following the effective date of the DROP,
2219	except a member of the Special Risk Class who has reached normal
2220	retirement date prior to the effective date of the DROP and
2221	whose total accrued value exceeds 75 percent of average final
2222	compensation as of his or her effective date of retirement shall
2223	be eligible to participate in the DROP for no more than 36
2224	calendar months immediately following the effective date of the
2225	DROP.
2226	2. Upon deciding to participate in the DROP, the member
2227	shall submit, on forms required by the division:
2228	a. A written election to participate in the DROP;
2229	b. Selection of the DROP participation and termination
2230	dates, which satisfy the limitations stated in paragraph (a) and
2231	subparagraph 1. Such termination date shall be in a binding
2232	letter of resignation with the employer, establishing a deferred
2233	termination date. The member may change the termination date
2234	within the limitations of subparagraph 1., but only with the
2235	written approval of his or her employer;
2236	c. A properly completed DROP application for service
2237	retirement as provided in this section; and
2238	d. Any other information required by the division.
2239	3. The DROP participant shall be a retiree under the
2240	Florida Retirement System for all purposes, except for paragraph
2241	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
2242	and 121.122. However, participation in the DROP does not alter
2243	the participant's employment status and such employee shall not
2244	be deemed retired from employment until his or her deferred
2245	resignation is effective and termination occurs as provided in
2246	s. 121.021(39).
2247	4. Elected officers shall be eligible to participate in
2248	the DROP subject to the following:
2249	a. An elected officer who reaches normal retirement date
2250	during a term of office may defer the election to participate in
2251	the DROP until the next succeeding term in that office. Such
2252	elected officer who exercises this option may participate in the
2253	DROP for up to 60 calendar months or a period of no longer than
2254	such succeeding term of office, whichever is less.
2255	b. An elected or a nonelected participant may run for a
2256	term of office while participating in DROP and, if elected,
2257	extend the DROP termination date accordingly, except, however,
2258	if such additional term of office exceeds the 60-month
2259	limitation established in subparagraph 1., and the officer does
2260	not resign from office within such 60-month limitation, the
2261	retirement and the participant's DROP shall be null and void as
2262	provided in sub-subparagraph (c)5.d.
2263	c. An elected officer who is dually employed and elects to
2264	participate in DROP shall be required to satisfy the definition
2265	of termination within the 60-month or, with respect to members
2266	who are instructional personnel employed by the Florida School
2267	for the Deaf and the Blind and who have received authorization
2268	by the Board of Trustees of the Florida School for the Deaf and
2269	the Blind to participate in the DROP beyond 60 months, or who
2270	are instructional personnel as defined in s. 1012.01(2)(a)-(d)
2271	in grades K-12 and who have received authorization by the
2272	district school superintendent to participate in the DROP beyond
2273	60 months, the 96-month limitation period as provided in
2274	subparagraph 1. for the nonelected position and may continue
2275	employment as an elected officer as provided in s. 121.053. The
2276	elected officer will be enrolled as a renewed member in the
2277	Elected Officers' Class or the Regular Class, as provided in ss.
2278	121.053 and 121.22, on the first day of the month after
2279	termination of employment in the nonelected position and
2280	termination of DROP. Distribution of the DROP benefits shall be
2281	made as provided in paragraph (c).
2282	(c) Benefits payable under the DROP.--
2283	1. Effective with the date of DROP participation, the
2284	member's initial normal monthly benefit, including creditable
2285	service, optional form of payment, and average final
2286	compensation, and the effective date of retirement shall be
2287	fixed. The beneficiary established under the Florida Retirement
2288	System shall be the beneficiary eligible to receive any DROP
2289	benefits payable if the DROP participant dies prior to the
2290	completion of the period of DROP participation. In the event a
2291	joint annuitant predeceases the member, the member may name a
2292	beneficiary to receive accumulated DROP benefits payable. Such
2293	retirement benefit, the annual cost of living adjustments
2294	provided in s. 121.101, and interest shall accrue monthly in the
2295	System Trust Fund. Such interest shall accrue at an effective
2296	annual rate of 6.5 percent compounded monthly, on the prior
2297	month's accumulated ending balance, up to the month of
2298	termination or death.
2299	2. Each employee who elects to participate in the DROP
2300	shall be allowed to elect to receive a lump-sum payment for
2301	accrued annual leave earned in accordance with agency policy
2302	upon beginning participation in the DROP. Such accumulated leave
2303	payment certified to the division upon commencement of DROP
2304	shall be included in the calculation of the member's average
2305	final compensation. The employee electing such lump-sum payment
2306	upon beginning participation in DROP will not be eligible to
2307	receive a second lump-sum payment upon termination, except to
2308	the extent the employee has earned additional annual leave which
2309	combined with the original payment does not exceed the maximum
2310	lump-sum payment allowed by the employing agency's policy or
2311	rules. Such early lump-sum payment shall be based on the hourly
2312	wage of the employee at the time he or she begins participation
2313	in the DROP. If the member elects to wait and receive such
2314	lump-sum payment upon termination of DROP and termination of
2315	employment with the employer, any accumulated leave payment made
2316	at that time cannot be included in the member's retirement
2317	benefit, which was determined and fixed by law when the employee
2318	elected to participate in the DROP.
2319	3. The effective date of DROP participation and the
2320	effective date of retirement of a DROP participant shall be the
2321	first day of the month selected by the member to begin
2322	participation in the DROP, provided such date is properly
2323	established, with the written confirmation of the employer, and
2324	the approval of the division, on forms required by the division.
2325	4. Normal retirement benefits and interest thereon shall
2326	continue to accrue in the DROP until the established termination
2327	date of the DROP, or until the participant terminates employment
2328	or dies prior to such date. Although individual DROP accounts
2329	shall not be established, a separate accounting of each
2330	participant's accrued benefits under the DROP shall be
2331	calculated and provided to participants.
2332	5. At the conclusion of the participant's DROP, the
2333	division shall distribute the participant's total accumulated
2334	DROP benefits, subject to the following provisions:
2335	a. The division shall receive verification by the
2336	participant's employer or employers that such participant has
2337	terminated employment as provided in s. 121.021(39)(b).
2338	b. The terminated DROP participant or, if deceased, such
2339	participant's named beneficiary, shall elect on forms provided
2340	by the division to receive payment of the DROP benefits in
2341	accordance with one of the options listed below. For a
2342	participant or beneficiary who fails to elect a method of
2343	payment within 60 days of termination of the DROP, the division
2344	will pay a lump sum as provided in sub-sub-subparagraph (I).
2345	(I) Lump sum.--All accrued DROP benefits, plus interest,
2346	less withholding taxes remitted to the Internal Revenue Service,
2347	shall be paid to the DROP participant or surviving beneficiary.
2348	(II) Direct rollover.--All accrued DROP benefits, plus
2349	interest, shall be paid from the DROP directly to the custodian
2350	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
2351	the Internal Revenue Code. However, in the case of an eligible
2352	rollover distribution to the surviving spouse of a deceased
2353	participant, an eligible retirement plan is an individual
2354	retirement account or an individual retirement annuity as
2355	described in s. 402(c)(9) of the Internal Revenue Code.
2356	(III) Partial lump sum.--A portion of the accrued DROP
2357	benefits shall be paid to the DROP participant or surviving
2358	spouse, less withholding taxes remitted to the Internal Revenue
2359	Service, and the remaining DROP benefits shall be transferred
2360	directly to the custodian of an eligible retirement plan as
2361	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
2362	However, in the case of an eligible rollover distribution to the
2363	surviving spouse of a deceased participant, an eligible
2364	retirement plan is an individual retirement account or an
2365	individual retirement annuity as described in s. 402(c)(9) of
2366	the Internal Revenue Code. The proportions shall be specified by
2367	the DROP participant or surviving beneficiary.
2368	c. The form of payment selected by the DROP participant or
2369	surviving beneficiary complies with the minimum distribution
2370	requirements of the Internal Revenue Code.
2371	d. A DROP participant who fails to terminate employment as
2372	defined in s. 121.021(39)(b) shall be deemed not to be retired,
2373	and the DROP election shall be null and void. Florida
2374	Retirement System membership shall be reestablished
2375	retroactively to the date of the commencement of the DROP, and
2376	each employer with whom the participant continues employment
2377	shall be required to pay to the System Trust Fund the difference
2378	between the DROP contributions paid in paragraph (i) and the
2379	contributions required for the applicable Florida Retirement
2380	System class of membership during the period the member
2381	participated in the DROP, plus 6.5 percent interest compounded
2382	annually.
2383	6. The accrued benefits of any DROP participant, and any
2384	contributions accumulated under such program, shall not be
2385	subject to assignment, execution, attachment, or to any legal
2386	process whatsoever, except for qualified domestic relations
2387	orders by a court of competent jurisdiction, income deduction
2388	orders as provided in s. 61.1301, and federal income tax levies.
2389	7. DROP participants shall not be eligible for disability
2390	retirement benefits as provided in subsection (4).
2391	(d) Death benefits under the DROP.--
2392	1. Upon the death of a DROP participant, the named
2393	beneficiary shall be entitled to apply for and receive the
2394	accrued benefits in the DROP as provided in sub-subparagraph
2395	(c)5.b.
2396	2. The normal retirement benefit accrued to the DROP
2397	during the month of a participant's death shall be the final
2398	monthly benefit credited for such DROP participant.
2399	3. Eligibility to participate in the DROP terminates upon
2400	death of the participant. If the participant dies on or after
2401	the effective date of enrollment in the DROP, but prior to the
2402	first monthly benefit being credited to the DROP, Florida
2403	Retirement System benefits shall be paid in accordance with
2404	subparagraph (7)(c)1. or subparagraph 2.
2405	4. A DROP participants' survivors shall not be eligible to
2406	receive Florida Retirement System death benefits as provided in
2407	paragraph (7)(d).
2408	(e) Cost-of-living adjustment.--On each July 1, the
2409	participants' normal retirement benefit shall be increased as
2410	provided in s. 121.101.
2411	(f) Retiree health insurance subsidy.--DROP participants
2412	are not eligible to apply for the retiree health insurance
2413	subsidy payments as provided in s. 112.363 until such
2414	participants have terminated employment and participation in the
2415	DROP.
2416	(g) Renewed membership.--DROP participants shall not be
2417	eligible for renewed membership in the Florida Retirement System
2418	under ss. 121.053 and 121.122 until termination of employment is
2419	effectuated as provided in s. 121.021(39)(b).
2420	(h) Employment limitation after DROP participation.--Upon
2421	satisfying the definition of termination of employment as
2422	provided in s. 121.021(39)(b), DROP participants shall be
2423	subject to such reemployment limitations as other retirees.
2424	Reemployment restrictions applicable to retirees as provided in
2425	subsection (9) shall not apply to DROP participants until their
2426	employment and participation in the DROP are terminated.
2427	(i) Contributions.--
2428	1. All employers paying the salary of a DROP participant
2429	filling a regularly established position shall contribute 8.0
2430	percent of such participant's gross compensation for the period
2431	of July 1, 2002, through June 30, 2003, and 11.56 percent of
2432	such compensation thereafter, which shall constitute the entire
2433	employer DROP contribution with respect to such participant.
2434	Such contributions, payable to the System Trust Fund in the same
2435	manner as required in s. 121.071, shall be made as appropriate
2436	for each pay period and are in addition to contributions
2437	required for social security and the Retiree Health Insurance
2438	Subsidy Trust Fund. Such employer, social security, and health
2439	insurance subsidy contributions are not included in the DROP.
2440	2. The employer shall, in addition to subparagraph 1.,
2441	also withhold one-half of the entire social security
2442	contribution required for the participant. Contributions for
2443	social security by each participant and each employer, in the
2444	amount required for social security coverage as now or hereafter
2445	provided by the federal Social Security Act, shall be in
2446	addition to contributions specified in subparagraph 1.
2447	3. All employers paying the salary of a DROP participant
2448	filling a regularly established position shall contribute the
2449	percent of such participant's gross compensation required in s.
2450	121.071(4), which shall constitute the employer's health
2451	insurance subsidy contribution with respect to such participant.
2452	Such contributions shall be deposited by the administrator in
2453	the Retiree Health Insurance Subsidy Trust Fund.
2454	(j) Forfeiture of retirement benefits.--Nothing in this
2455	section shall be construed to remove DROP participants from the
2456	scope of s. 8(d), Art. II of the State Constitution, s.
2457	112.3173, and paragraph (5)(f). DROP participants who commit a
2458	specified felony offense while employed will be subject to
2459	forfeiture of all retirement benefits, including DROP benefits,
2460	pursuant to those provisions of law.
2461	(k) Administration of program.--The division shall make
2462	such rules as are necessary for the effective and efficient
2463	administration of this subsection. The division shall not be
2464	required to advise members of the federal tax consequences of an
2465	election related to the DROP but may advise members to seek
2466	independent advice.
2467	(14) PAYMENT OF BENEFITS.--This subsection applies to the
2468	payment of benefits to a payee (retiree or beneficiary) under
2469	the Florida Retirement System:
2470	(a) Federal income tax shall be withheld in accordance
2471	with federal law, unless the payee elects otherwise on Form W-
2472	4P. The division shall prepare and distribute to each recipient
2473	of monthly retirement benefits an appropriate income tax form
2474	that reflects the recipient's income and federal income tax
2475	withheld for the calendar year just ended.
2476	(b) Subject to approval by the division in accordance with
2477	rule 60S-4.015, Florida Administrative Code, a payee receiving
2478	retirement benefits under the Florida Retirement System may also
2479	have the following payments deducted from his or her monthly
2480	benefit:
2481	1. Premiums for life and health-related insurance policies
2482	from approved companies.
2483	2. Life insurance premiums for the State Group Life
2484	Insurance Plan, if authorized in writing by the payee and by the
2485	Department of Management Services.
2486	3. Repayment of overpayments from the Florida Retirement
2487	System Trust Fund, the State Employees' Health Insurance Trust
2488	Fund, or the State Employees' Life Insurance Trust Fund, upon
2489	notification of the payee.
2490	4. Payments to an alternate payee for alimony, child
2491	support, or division of marital assets pursuant to a qualified
2492	domestic relations order under s. 222.21 or an income deduction
2493	order under s. 61.1301.
2494	5. Payments to the Internal Revenue Service for federal
2495	income tax levies, upon notification of the division by the
2496	Internal Revenue Service.
2497	(c) A payee shall notify the division of any change in his
2498	or her address. The division may suspend benefit payments to a
2499	payee if correspondence sent to the payee's mailing address is
2500	returned due to an incorrect address. Benefit payments shall be
2501	resumed upon notification to the division of the payee's new
2502	address.
2503	(d) A payee whose retirement benefits are reduced by the
2504	application of maximum benefit limits under s. 415(b) of the
2505	Internal Revenue Code, as specified in s. 121.30(5), shall have
2506	the portion of his or her calculated benefit in the Florida
2507	Retirement System defined benefit plan which exceeds such
2508	federal limitation paid through the Florida Retirement System
2509	Preservation of Benefits Plan, as provided in s. 121.1001.
2510	(e) No benefit may be reduced for the purpose of
2511	preserving the member's eligibility for a federal program.
2512	(f) The division shall adopt rules establishing procedures
2513	for determining that the persons to whom benefits are being paid
2514	are still living. The division shall suspend the benefits being
2515	paid to any payee when it is unable to contact such payee and to
2516	confirm that he or she is still living.
2517	Section 25. Subsection (1) of section 121.095, Florida
2518	Statutes, is amended to read:
2519	121.095 Florida Retirement System Preservation of Benefits
2520	Plan Trust Fund.--
2521	(1) The Florida Retirement System Preservation of Benefits
2522	Plan Trust Fund is created in the State Treasury to be
2523	administered by the State Board of Administration within the
2524	Division of Retirement.
2525	(a) Funds to be credited to the trust fund shall consist
2526	of Florida Retirement System monthly retirement contributions
2527	required to meet the requirements for payment of restored
2528	benefits under the Florida Retirement System Preservation of
2529	Benefits Plan, as specified in s. 121.1001.
2530	(b) The trust fund shall be maintained and utilized solely
2531	for the purpose of providing benefits under the Preservation of
2532	Benefits Plan, as specified in s. 121.1001.
2533	(c) The trust fund shall be separate and apart from the
2534	Florida Retirement System Trust Fund. The trust fund moneys and
2535	assets shall not be commingled with nor ever receive a transfer
2536	of moneys and assets from the remainder of the Florida
2537	Retirement System, including, but not limited to, the Florida
2538	Retirement System Trust Fund, or any other qualified retirement
2539	plan administered by the Division of Retirement.
2540	(d) The trust fund shall be funded on a month-to-month
2541	basis. Trust fund assets shall not be accumulated to pay future
2542	benefits.
2543	Section 26. Paragraph (b) of subsection (7) of section
2544	121.101, Florida Statutes, is amended to read:
2545	121.101 Cost-of-living adjustment of benefits.--
2546	(7) The purpose of this subsection is to establish a
2547	supplemental cost-of-living adjustment for certain retirees and
2548	beneficiaries who receive monthly retirement benefits under the
2549	provisions of this chapter and the existing systems consolidated
2550	therein, s. 112.05 for certain state officers and employees, and
2551	s. 238.171 for certain elderly incapacitated teachers.
2552	(b) Application for the supplemental cost-of-living
2553	adjustment provided by this subsection shall include
2554	certification by the retiree or annuitant that he or she is not
2555	receiving, and is not eligible to receive, social security
2556	benefits and shall include written authorization for the
2557	division departmentto have access to information from the
2558	Social Security Administration concerning his or her entitlement
2559	to, or eligibility for, social security benefits. Such
2560	supplemental cost-of-living adjustment shall not be paid unless
2561	and until the application requirements of this paragraph are
2562	met.
2563	Section 27. Paragraph (e) of subsection (2) of section
2564	121.111, Florida Statutes, is amended to read:
2565	121.111 Credit for military service.--
2566	(2) Any member whose initial date of employment is before
2567	January 1, 1987, who has military service as defined in s.
2568	121.021(20)(b), and who does not claim such service under
2569	subsection (1) may receive creditable service for such military
2570	service if:
2571	(e) Any member claiming credit under this subsection must
2572	certify on the form prescribed by the division departmentthat
2573	credit for such service has not and will not be claimed for
2574	retirement purposes under any other federal, state, or local
2575	retirement or pension system where "length of service" is a
2576	factor in determining the amount of compensation received,
2577	except where credit for such service has been granted in a
2578	pension system providing retired pay for nonregular service as
2579	provided in paragraph (d). If the member dies prior to
2580	retirement, the member's beneficiary must make the required
2581	certification before credit may be claimed. If such
2582	certification is not made by the member or the member's
2583	beneficiary, credit for wartime military service shall not be
2584	allowed.
2585	Section 28. Section 121.133, Florida Statutes, is amended
2586	to read:
2587	121.133 Cancellation of uncashed
2588	warrants.--Notwithstanding the provisions of s. 17.26 or s.
2589	717.123 to the contrary, if any state warrant issued by the
2590	Chief Financial Officer for the payment of retirement benefits
2591	from the Florida Retirement System Trust Fund, or any other
2592	pension trust fund administered by the division department, is
2593	not presented for payment within 1 year after the last day of
2594	the month in which it was originally issued, the Chief Financial
2595	Officer shall cancel the benefit warrant and credit the amount
2596	of the warrant to the Florida Retirement System Trust Fund or
2597	other pension trust fund administered by the division
2598	department, as appropriate. The division departmentmay provide
2599	for issuance of a replacement warrant when deemed appropriate.
2600	Section 29. Section 121.135, Florida Statutes, is amended
2601	to read:
2602	121.135 Annual report to Legislature concerning the
2603	Florida Retirement System state-administered retirement
2604	systems.--The board departmentshall make to each regular
2605	session of the Legislature a written report on the operation and
2606	condition of the Florida Retirement System the state-
2607	administered retirement systems.
2608	Section 30. Section 121.136, Florida Statutes, is amended
2609	to read:
2610	121.136 Annual benefit statement to members.--Beginning
2611	January 1, 1993, and each January thereafter, the board
2612	departmentshall provide each active member of the Florida
2613	Retirement System with 5 or more years of creditable service an
2614	annual statement of benefits. Such statement should provide the
2615	member with basic data about the member's retirement account.
2616	Minimally, it shall include the member's retirement plan, the
2617	amount of funds on deposit in the retirement account, and an
2618	estimate of retirement benefits.
2619	Section 31. Section 121.1905, Florida Statutes, is amended
2620	to read:
2621	121.1905 Division of Retirement; mission creation.--
2622	(1) There is created the Division of Retirement within the
2623	Department of Management Services.
2624	(2)The mission of the Division of Retirement is to
2625	provide quality and cost-effective retirement services as
2626	measured by member satisfaction and by comparison with
2627	administrative costs of comparable retirement systems.
2628	Section 32. Section 121.192, Florida Statutes, is amended
2629	to read:
2630	121.192 State retirement actuary.--The division department
2631	may employ an actuary. Such actuary shall, together with such
2632	other duties as the administrator assigns secretary may assign,
2633	be responsible for:
2634	(1) Advising the administrator secretaryon actuarial
2635	matters of the state retirement systems.
2636	(2) Making periodic valuations of the retirement systems.
2637	(3) Providing actuarial analyses to the Legislature
2638	concerning proposed changes in the retirement systems.
2639	(4) Assisting the administrator secretaryin developing a
2640	sound and modern retirement system.
2641	Section 33. Section 121.193, Florida Statutes, is amended
2642	to read:
2643	121.193 External compliance audits.--
2644	(1) The division departmentshall conduct audits of the
2645	payroll and personnel records of participating agencies. These
2646	audits shall be made to determine the accuracy of reports
2647	submitted to the division departmentand to assess the degree of
2648	compliance with applicable statutes, rules, and coverage
2649	agreements. Audits shall be scheduled on a regular basis, as the
2650	result of concerns known to exist at an agency, or as a followup
2651	to ensure agency action was taken to correct deficiencies found
2652	in an earlier audit.
2653	(2) Upon request, participating agencies shall furnish the
2654	division department with information and documents that the
2655	division department requires to conduct the audit. The division
2656	departmentmay prescribe by rule the documents that may be
2657	requested.
2658	(3) The division departmentshall review the agency's
2659	operations concerning retirement and social security coverage.
2660	Preliminary findings shall be discussed with agency personnel at
2661	the close of the audit. An audit report of findings and
2662	recommendations shall be submitted to division department
2663	management and an audit summary letter shall be submitted to the
2664	agency noting any concerns and necessary corrective action.
2665	Section 34. Subsection (1) of section 121.22, Florida
2666	Statutes, is amended to read:
2667	121.22 State Retirement Commission; creation; membership;
2668	compensation.--
2669	(1) There is created within the Division of Retirement
2670	Department of Management Servicesa State Retirement Commission
2671	composed of three members: One member who is retired under a
2672	state-supported retirement system administered by the division
2673	department; one member who is an active member of a state-
2674	supported retirement system that is administered by the division
2675	department; and one member who is neither a retiree,
2676	beneficiary, or member of a state-supported retirement system
2677	administered by the division department. Each member shall have
2678	a different occupational background from the other members.
2679	Section 35. Subsection (1) of section 121.23, Florida
2680	Statutes, is amended to read:
2681	121.23 Disability retirement and special risk membership
2682	applications; Retirement Commission; powers and duties; judicial
2683	review.--The provisions of this section apply to all proceedings
2684	in which the administrator has made a written final decision on
2685	the merits respecting applications for disability retirement,
2686	reexamination of retired members receiving disability benefits,
2687	applications for special risk membership, and reexamination of
2688	special risk members in the Florida Retirement System. The
2689	jurisdiction of the State Retirement Commission under this
2690	section shall be limited to written final decisions of the
2691	administrator on the merits.
2692	(1) In accordance with the rules of procedure adopted by
2693	the division Department of Management Services, the
2694	administrator shall:
2695	(a) Give reasonable notice of his or her proposed action,
2696	or decision to refuse action, together with a summary of the
2697	factual, legal, and policy grounds therefor.
2698	(b) Give affected members, or their counsel, an
2699	opportunity to present to the division written evidence in
2700	opposition to the proposed action or refusal to act or a written
2701	statement challenging the grounds upon which the administrator
2702	has chosen to justify his or her action or inaction.
2703	(c) If the objections of the member are overruled, provide
2704	a written explanation within 21 days.
2705	Section 36. Subsections (2), (3), and (4) of section
2706	121.24, Florida Statutes, are amended to read:
2707	121.24 Conduct of commission business; legal and other
2708	assistance; compensation.--
2709	(2) Legal counsel for the commission may be provided by
2710	the Department of Legal Affairs or by the division Department of
2711	Management Services, with the concurrence of the commission, and
2712	shall be paid by the division Department of Management Services
2713	from the appropriate funds.
2714	(3) The division Department of Management Servicesshall
2715	provide timely and appropriate training for newly appointed
2716	members of the commission. Such training shall be designed to
2717	acquaint new members of the commission with the duties and
2718	responsibilities of the commission.
2719	(4) The division Department of Management Servicesshall
2720	furnish administrative and secretarial assistance to the
2721	commission and shall provide a place where the commission may
2722	hold its meetings.
2723	Section 37. Subsection (9) of section 121.30, Florida
2724	Statutes, is amended to read:
2725	121.30 Statements of purpose and intent and other
2726	provisions required for qualification under the Internal Revenue
2727	Code of the United States.--Any other provisions in this chapter
2728	to the contrary notwithstanding, it is specifically provided
2729	that:
2730	(9) The division departmentmay adopt any rule necessary
2731	to accomplish the purpose of the section which is not
2732	inconsistent with this chapter.
2733	Section 38. Paragraph (c) of subsection (2), paragraphs
2734	(c) and (e) of subsection (3), paragraphs (a), (b), and (c) of
2735	subsection (4), and subsection (6) of section 121.35, Florida
2736	Statutes, are amended to read:
2737	121.35 Optional retirement program for the State
2738	University System.--
2739	(2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.--
2740	(c) For purposes of this section, the State Board of
2741	Administration Department of Management Servicesis referred to
2742	as the "board department."
2743	(3) ELECTION OF OPTIONAL PROGRAM.--
2744	(c) Any employee who becomes eligible to participate in
2745	the optional retirement program on or after January 1, 1993,
2746	shall be a compulsory participant of the program unless such
2747	employee elects membership in the Florida Retirement System.
2748	Such election shall be made in writing and filed with the
2749	personnel officer of the employer. Any eligible employee who
2750	fails to make such election within the prescribed time period
2751	shall be deemed to have elected to participate in the optional
2752	retirement program.
2753	1. Any employee whose optional retirement program
2754	eligibility results from initial employment shall be enrolled in
2755	the program at the commencement of employment. If, within 90
2756	days after commencement of employment, the employee elects
2757	membership in the Florida Retirement System, such membership
2758	shall be effective retroactive to the date of commencement of
2759	employment.
2760	2. Any employee whose optional retirement program
2761	eligibility results from a change in status due to the
2762	subsequent designation of the employee's position as one of
2763	those specified in paragraph (2)(a) or due to the employee's
2764	appointment, promotion, transfer, or reclassification to a
2765	position specified in paragraph (2)(a) shall be enrolled in the
2766	optional retirement program upon such change in status and shall
2767	be notified by the employer of such action. If, within 90 days
2768	after the date of such notification, the employee elects to
2769	retain membership in the Florida Retirement System, such
2770	continuation of membership shall be retroactive to the date of
2771	the change in status.
2772	3. Notwithstanding the provisions of this paragraph,
2773	effective July 1, 1997, any employee who is eligible to
2774	participate in the Optional Retirement Program and who fails to
2775	execute a contract with one of the approved companies and to
2776	notify the board departmentin writing as provided in subsection
2777	(4) within 90 days after the date of eligibility shall be deemed
2778	to have elected membership in the Florida Retirement System,
2779	except as provided in s. 121.051(1)(a). This provision shall
2780	also apply to any employee who terminates employment in an
2781	eligible position before executing the required annuity contract
2782	and notifying the board department. Such membership shall be
2783	retroactive to the date of eligibility, and all appropriate
2784	contributions shall be transferred to the Florida Retirement
2785	System Trust Fund and the Health Insurance Subsidy Trust Fund.
2786	(e) The election by an eligible employee to participate in
2787	the optional retirement program shall be irrevocable for so long
2788	as the employee continues to meet the eligibility requirements
2789	specified in subsection (2), except as provided in paragraph
2790	(h). In the event that an employee participates in the optional
2791	retirement program for 90 days or more and is subsequently
2792	employed in an administrative or professional position which has
2793	been determined by the board department, under subparagraph
2794	(2)(a)2., to be not otherwise eligible for participation in the
2795	optional retirement program, the employee shall continue
2796	participation in the optional program so long as the employee
2797	meets the other eligibility requirements for the program, except
2798	as provided in paragraph (h).
2799	(4) CONTRIBUTIONS.--
2800	(a) Through June 30, 2001, each employer shall contribute
2801	on behalf of each participant in the optional retirement program
2802	an amount equal to the normal cost portion of the employer
2803	retirement contribution which would be required if the
2804	participant were a regular member of the Florida Retirement
2805	System defined benefit program, plus the portion of the
2806	contribution rate required in s. 112.363(8) that would otherwise
2807	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
2808	Effective July 1, 2001, each employer shall contribute on behalf
2809	of each participant in the optional program an amount equal to
2810	10.43 percent of the participant's gross monthly compensation.
2811	The board, pursuant to s. 215.44(4), departmentshall deduct an
2812	amount approved by the Legislatureto provide for the
2813	administration of this program. The payment of the contributions
2814	to the optional program which is required by this paragraph for
2815	each participant shall be made by the employer to the board
2816	department, which shall forward the contributions to the
2817	designated company or companies contracting for payment of
2818	benefits for the participant under the program. However, such
2819	contributions paid on behalf of an employee described in
2820	paragraph (3)(c) shall not be forwarded to a company and shall
2821	not begin to accrue interest until the employee has executed an
2822	annuity contract and notified the board department.
2823	(b) Each employer shall contribute on behalf of each
2824	participant in the optional retirement program an amount equal
2825	to the unfunded actuarial accrued liability portion of the
2826	employer contribution which would be required for members of the
2827	Florida Retirement System. This contribution shall be paid to
2828	the board departmentfor transfer to the Florida Retirement
2829	System Trust Fund.
2830	(c) An Optional Retirement Program Trust Fund shall be
2831	established in the State Treasury and administered by the board
2832	departmentto make payments to the provider companies on behalf
2833	of the optional retirement program participants, and to transfer
2834	the unfunded liability portion of the state optional retirement
2835	program contributions to the Florida Retirement System Trust
2836	Fund.
2837	(6) ADMINISTRATION OF PROGRAM.--
2838	(a) The optional retirement program authorized by this
2839	section shall be administered by the board department. The board
2840	departmentshall adopt rules establishing the responsibilities
2841	of the State Board of Education and institutions in the State
2842	University System in administering the optional retirement
2843	program. The State Board of Education shall, no more than 90
2844	days after July 1, 1983, submit to the board departmentits
2845	recommendations for the contracts to be offered by the companies
2846	chosen by the board department. The recommendations of the State
2847	Board of Educationshall include the following:
2848	1. The nature and extent of the rights and benefits in
2849	relation to the required contributions; and
2850	2. The suitability of the rights and benefits to the needs
2851	of the participants and the interests of the institutions in the
2852	recruitment and retention of eligible employees.
2853	(b) After receiving and considering the recommendations of
2854	the State Board of Education, the board departmentshall
2855	designate no more than four companies from which contracts may
2856	be purchased under the program and shall approve the form and
2857	content of the optional retirement program contracts. Upon
2858	application by a qualified Florida domestic company, the board
2859	departmentshall give reasonable notice to all other such
2860	companies that it intends to designate one of such companies as
2861	a fifth company from which contracts may be purchased pursuant
2862	to this section and that they may apply for such designation
2863	prior to the deadline established by said notice. At least 60
2864	days after giving such notice and upon receipt of the
2865	recommendation of the State Board of Education, the board
2866	departmentshall so designate one of such companies as the fifth
2867	company from which such contracts may be purchased.
2868	(c) Effective July 1, 1997, the State Board of
2869	Administration shall review and make recommendations to the
2870	department on the acceptability of all investment products
2871	proposed by provider companies of the optional retirement
2872	program before they are offered through annuity contracts to the
2873	participants and may advise the department of any changes
2874	necessary to ensure that the optional retirement program offers
2875	an acceptable mix of investment products. The board department
2876	shall determine which make the final determination as to whether
2877	an investment products product will be included in approved for
2878	the program.
2879	(d) The provisions of each contract applicable to a
2880	participant in the optional retirement program shall be
2881	contained in a written program description which shall include a
2882	report of pertinent financial and actuarial information on the
2883	solvency and actuarial soundness of the program and the benefits
2884	applicable to the participant. Such description shall be
2885	furnished by the companies to each participant in the program
2886	and to the board departmentupon commencement of participation
2887	in the program and annually thereafter.
2888	(e) The board departmentshall ensure that each
2889	participant in the optional retirement program is provided an
2890	accounting of the total contribution and the annual contribution
2891	made by and on behalf of such participant.
2892	Section 39. Paragraph (b) of subsection (3), paragraph (a)
2893	of subsection (12), and paragraphs (a) and (b) of subsection
2894	(14) of section 121.40, Florida Statutes, are amended to read:
2895	121.40 Cooperative extension personnel at the Institute of
2896	Food and Agricultural Sciences; supplemental retirement
2897	benefits.--
2898	(3) DEFINITIONS.--The definitions provided in s. 121.021
2899	shall not apply to this section except when specifically cited.
2900	For the purposes of this section, the following words or
2901	phrases have the respective meanings set forth:
2902	(b) "Division Department" means the Division of Retirement
2903	of the State Board of Administration Department of Management
2904	Services.
2905	(12) CONTRIBUTIONS.--
2906	(a) For the purposes of funding the supplemental benefits
2907	provided by this section, the institute is authorized and
2908	required to pay, commencing July 1, 1985, the necessary monthly
2909	contributions from its appropriated budget. These amounts shall
2910	be paid into the Institute of Food and Agricultural Sciences
2911	Supplemental Retirement Trust Fund, which is hereby created in
2912	the State Treasury to be administered by the State Board of
2913	Administration.
2914	(14) ADMINISTRATION OF SYSTEM.--
2915	(a) The division departmentshall make such rules as are
2916	necessary for the effective and efficient administration of this
2917	system. The executive director of the State Board of
2918	Administration secretary of the departmentshall be the
2919	administrator of the system. The funds to pay the expenses for
2920	such administration are shall beappropriated from the interest
2921	earned on investments made for the trust fund.
2922	(b) The division departmentis authorized to require
2923	oaths, by affidavit or otherwise, and acknowledgments from
2924	persons in connection with the administration of its duties and
2925	responsibilities under this section.
2926	Section 40. Subsection (3) of section 121.45, Florida
2927	Statutes, is amended to read:
2928	121.45 Interstate compacts relating to pension
2929	portability.--
2930	(3) ESTABLISHMENT OF COMPACTS.--
2931	(a) The division Department of Management Servicesis
2932	authorized and directed to survey other state retirement systems
2933	to determine if such retirement systems are interested in
2934	developing an interstate compact with Florida.
2935	(b) If any such state is interested in pursuing the
2936	matter, the division departmentshall confer with the other
2937	state and the consulting actuaries of both states, and shall
2938	present its findings to the committees having jurisdiction over
2939	retirement matters in the Legislature, and to representatives of
2940	affected certified bargaining units, in order to determine the
2941	feasibility of developing a portability compact, what groups
2942	should be covered, and the goals and priorities which should
2943	guide such development.
2944	(c) Upon a determination that such a compact is feasible
2945	and upon request of the Legislature, the division department,
2946	together with its consulting actuaries, shall, in accordance
2947	with such saidgoals and priorities, develop a proposal under
2948	which retirement credit may be transferred to or from Florida in
2949	an actuarially sound manner.
2950	(d) Once a proposal has been developed, the division
2951	departmentshall contract with its consulting actuaries to
2952	conduct an actuarial study of the proposal to determine the cost
2953	to the Florida Retirement System Trust Fund and the State of
2954	Florida.
2955	(e) After the actuarial study has been completed, the
2956	division departmentshall present its findings and the actuarial
2957	study to the Legislature for consideration. If either house of
2958	the Legislature elects to enter into such a compact, it shall be
2959	introduced in the form of a proposed committee bill to the full
2960	Legislature during the same or next regular session.
2961	Section 41. Subsection (2), paragraph (a) of subsection
2962	(5), paragraphs (a), (b), (c), and (e) of subsection (8),
2963	paragraph (c) of subsection (9), paragraphs (a), (c), and (f) of
2964	subsection (10), subsection (11), and subsection (19) of section
2965	121.4501, Florida Statutes, are amended to read:
2966	121.4501 Public Employee Optional Retirement Program.--
2967	(2) DEFINITIONS.--As used in this part, the term:
2968	(a) "Approved provider" or "provider" means a private
2969	sector company that is selected and approved by the stateboard
2970	to offer one or more investment products or services to the
2971	Public Employee Optional Retirement Program. The term includes a
2972	bundled provider that offers participants a range of
2973	individually allocated or unallocated investment products and
2974	may offer a range of administrative and customer services, which
2975	may include accounting and administration of individual
2976	participant benefits and contributions; individual participant
2977	recordkeeping; asset purchase, control, and safekeeping; direct
2978	execution of the participant's instructions as to asset and
2979	contribution allocation; calculation of daily net asset values;
2980	direct access to participant account information; periodic
2981	reporting to participants, at least quarterly, on account
2982	balances and transactions; guidance, advice, and allocation
2983	services directly relating to its own investment options or
2984	products, but only if the bundled provider complies with the
2985	standard of care of s. 404(a)(1)(A-B) of the Employee Retirement
2986	Income Security Act of 1974 (ERISA) and if providing such
2987	guidance, advice, or allocation services does not constitute a
2988	prohibited transaction under s. 4975(c)(1) of the Internal
2989	Revenue Code or s. 406 of ERISA, notwithstanding that such
2990	prohibited transaction provisions do not apply to the optional
2991	retirement program; a broad array of distribution options; asset
2992	allocation; and retirement counseling and education. Private
2993	sector companies include investment management companies,
2994	insurance companies, depositories, and mutual fund companies.
2995	(b) "Average monthly compensation" means one-twelfth of
2996	average final compensation as defined in s. 121.021(24).
2997	(c) "Covered employment" means employment in a regularly
2998	established position as defined in s. 121.021(52).
2999	(d) "Department" means the Department of Management
3000	Services.
3001	(d)(e) "Division" means the Division of Retirement of the
3002	State Board of Administration within the Department of
3003	Management Services.
3004	(e)(f)"Eligible employee" means an officer or employee,
3005	as defined in s. 121.021(11), who:
3006	1. Is a member of, or is eligible for membership in, the
3007	Florida Retirement System, including any renewed member of the
3008	Florida Retirement System;
3009	2. Participates in, or is eligible to participate in, the
3010	Senior Management Service Optional Annuity Program as
3011	established under s. 121.055(6) or the State Community College
3012	Optional Retirement Program as established under s.
3013	121.051(2)(c); or
3014	3. Is eligible to participate in, but does not participate
3015	in, the State University System Optional Retirement Program
3016	established under s. 121.35.
3017
3018	The term does not include any member participating in the
3019	Deferred Retirement Option Program established under s.
3020	121.091(13) or any employee participating in an optional
3021	retirement program established under s. 121.051(2)(c) or s.
3022	121.35.
3023	(f)(g)"Employer" means an employer, as defined in s.
3024	121.021(10), of an eligible employee.
3025	(g)(h)"Participant" means an eligible employee who elects
3026	to participate in the Public Employee Optional Retirement
3027	Program and enrolls in such optional program as provided in
3028	subsection (4).
3029	(h)(i)"Public Employee Optional Retirement Program,"
3030	"optional program," or "optional retirement program" means the
3031	alternative defined contribution retirement program established
3032	under this section.
3033	(i)(j)"State board" or "board" means the State Board of
3034	Administration.
3035	(j)(k)"Trustees" means Trustees of the State Board of
3036	Administration.
3037	(k)(l)"Vested" or "vesting" means the guarantee that a
3038	participant is eligible to receive a retirement benefit upon
3039	completion of the required years of service under the Public
3040	Employee Optional Retirement Program.
3041	(5) CONTRIBUTIONS.--
3042	(a) Each employer shall contribute on behalf of each
3043	participant in the Public Employee Optional Retirement Program,
3044	as provided in part III of this chapter. The state board, acting
3045	as plan fiduciary, shall ensure that all plan assets are held in
3046	a trust, pursuant to s. 401 of the Internal Revenue Code. The
3047	fiduciary shall ensure that said contributions are allocated as
3048	follows:
3049	1. The portion earmarked for participant accounts shall be
3050	used to purchase interests in the appropriate investment
3051	vehicles for the accounts of each participant as specified by
3052	the participant, or in accordance with paragraph (4)(d).
3053	2. The portion earmarked for administrative and
3054	educational expenses shall be transferred to the board.
3055	3. The portion earmarked for disability benefits shall be
3056	transferred to the division department.
3057	(8) ADMINISTRATION OF PROGRAM.--
3058	(a) The Public Employee Optional Retirement Program shall
3059	be administered by the state board and affected employers. The
3060	board is authorized to require oaths, by affidavit or otherwise,
3061	and acknowledgments from persons in connection with the
3062	administration of its duties and responsibilities under this
3063	chapter. No oath, by affidavit or otherwise, shall be required
3064	of an employee participant at the time of election.
3065	Acknowledgment of an employee's election to participate in the
3066	program shall be no greater than necessary to confirm the
3067	employee's election. The board shall adopt rules establishing
3068	the role and responsibilities of affected state, local
3069	government, and education-related employers, the state board,
3070	the department,and third-party contractors in administering the
3071	Public Employee Optional Retirement Program. The division
3072	departmentshall adopt rules necessary to implement the optional
3073	program in coordination with the defined benefit retirement
3074	program and the disability benefits available under the optional
3075	program.
3076	(b)1. The state board shall select and contract with one
3077	third-party administrator to provide administrative services if
3078	those services cannot be competitively and contractually
3079	provided by the division of Retirement within the Department of
3080	Management Services. With the approval of the state board, the
3081	third-party administrator may subcontract with other
3082	organizations or individuals to provide components of the
3083	administrative services. As a cost of administration, the board
3084	may compensate any such contractor for its services, in
3085	accordance with the terms of the contract, as is deemed
3086	necessary or proper by the board. The third-party administrator
3087	may not be an approved provider or be affiliated with an
3088	approved provider.
3089	2. These administrative services may include, but are not
3090	limited to, enrollment of eligible employees, collection of
3091	employer contributions, disbursement of such contributions to
3092	approved providers in accordance with the allocation directions
3093	of participants; services relating to consolidated billing;
3094	individual and collective recordkeeping and accounting; asset
3095	purchase, control, and safekeeping; and direct disbursement of
3096	funds to and from the third-party administrator, the division,
3097	the board, employers, participants, approved providers, and
3098	beneficiaries. This section does not prevent or prohibit a
3099	bundled provider from providing any administrative or customer
3100	service, including accounting and administration of individual
3101	participant benefits and contributions; individual participant
3102	recordkeeping; asset purchase, control, and safekeeping; direct
3103	execution of the participant's instructions as to asset and
3104	contribution allocation; calculation of daily net asset values;
3105	direct access to participant account information; or periodic
3106	reporting to participants, at least quarterly, on account
3107	balances and transactions, if these services are authorized by
3108	the board as part of the contract.
3109	3. The state board shall select and contract with one or
3110	more organizations to provide educational services. With
3111	approval of the board, the organizations may subcontract with
3112	other organizations or individuals to provide components of the
3113	educational services. As a cost of administration, the board may
3114	compensate any such contractor for its services in accordance
3115	with the terms of the contract, as is deemed necessary or proper
3116	by the board. The education organization may not be an approved
3117	provider or be affiliated with an approved provider.
3118	4. Educational services shall be designed by the board and
3119	departmentto assist employers, eligible employees,
3120	participants, and beneficiaries in order to maintain compliance
3121	with United States Department of Labor regulations under s.
3122	404(c) of the Employee Retirement Income Security Act of 1974
3123	and to assist employees in their choice of defined benefit or
3124	defined contribution retirement alternatives. Educational
3125	services include, but are not limited to, disseminating
3126	educational materials; providing retirement planning education;
3127	explaining the differences between the defined benefit
3128	retirement plan and the defined contribution retirement plan;
3129	and offering financial planning guidance on matters such as
3130	investment diversification, investment risks, investment costs,
3131	and asset allocation. An approved provider may also provide
3132	educational information, including retirement planning and
3133	investment allocation information concerning its products and
3134	services.
3135	(c)1. In evaluating and selecting a third-party
3136	administrator, the board shall establish criteria under which it
3137	shall consider the relative capabilities and qualifications of
3138	each proposed administrator. In developing such criteria, the
3139	board shall consider:
3140	a. The administrator's demonstrated experience in
3141	providing administrative services to public or private sector
3142	retirement systems.
3143	b. The administrator's demonstrated experience in
3144	providing daily valued recordkeeping to defined contribution
3145	plans.
3146	c. The administrator's ability and willingness to
3147	coordinate its activities with the Florida Retirement System
3148	employers, the board, and the division, and to supply to such
3149	employers, the board, and the division the information and data
3150	they require, including, but not limited to, monthly management
3151	reports, quarterly participant reports, and ad hoc reports
3152	requested by the department orboard.
3153	d. The cost-effectiveness and levels of the administrative
3154	services provided.
3155	e. The administrator's ability to interact with the
3156	participants, the employers, the board, the division, and the
3157	providers; the means by which participants may access account
3158	information, direct investment of contributions, make changes to
3159	their accounts, transfer moneys between available investment
3160	vehicles, and transfer moneys between investment products; and
3161	any fees that apply to such activities.
3162	f. Any other factor deemed necessary by the Trustees of
3163	the State Board of Administration.
3164	g. The recommendations of the Public Employee Optional
3165	Retirement Program Advisory Committee established in subsection
3166	(12).
3167	2. In evaluating and selecting an educational provider,
3168	the board shall establish criteria under which it shall consider
3169	the relative capabilities and qualifications of each proposed
3170	educational provider. In developing such criteria, the board
3171	shall consider:
3172	a. Demonstrated experience in providing educational
3173	services to public or private sector retirement systems.
3174	b. Ability and willingness to coordinate its activities
3175	with the Florida Retirement System employers, the board, and the
3176	division, and to supply to such employers, the board, and the
3177	division the information and data they require, including, but
3178	not limited to, reports on educational contacts.
3179	c. The cost-effectiveness and levels of the educational
3180	services provided.
3181	d. Ability to provide educational services via different
3182	media, including, but not limited to, the Internet, personal
3183	contact, seminars, brochures, and newsletters.
3184	e. Any other factor deemed necessary by the Trustees of
3185	the State Board of Administration.
3186	f. The recommendations of the Public Employee Optional
3187	Retirement Program Advisory Committee established in subsection
3188	(12).
3189	3. The establishment of the criteria shall be solely
3190	within the discretion of the board.
3191	(e)1.The board may contract with any consultant for
3192	professional services, including legal, consulting, accounting,
3193	and actuarial services, deemed necessary to implement and
3194	administer the optional program by the Trustees of the State
3195	Board of Administration. The board may enter into a contract
3196	with one or more vendors to provide low-cost investment advice
3197	to participants, supplemental to education provided by the
3198	third-party administrator. All fees under any such contract
3199	shall be paid by those participants who choose to use the
3200	services of the vendor.
3201	2. The department may contract with consultants for
3202	professional services, including legal, consulting, accounting,
3203	and actuarial services, deemed necessary to implement and
3204	administer the optional program in coordination with the defined
3205	benefit program of the Florida Retirement System. The
3206	department, in coordination with the board, may enter into a
3207	contract with the third-party administrator in order to
3208	coordinate services common to the various programs within the
3209	Florida Retirement System.
3210	(9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.--
3211	(c) In evaluating and selecting approved providers and
3212	products, the board shall establish criteria under which it
3213	shall consider the relative capabilities and qualifications of
3214	each proposed provider company and product. In developing such
3215	criteria, the board shall consider the following to the extent
3216	such factors may be applied in connection with investment
3217	products, services, or providers:
3218	1. Experience in the United States providing retirement
3219	products and related financial services under defined
3220	contribution retirement plans.
3221	2. Financial strength and stability which shall be
3222	evidenced by the highest ratings assigned by nationally
3223	recognized rating services when comparing proposed providers
3224	that are so rated.
3225	3. Intrastate and interstate portability of the product
3226	offered, including early withdrawal options.
3227	4. Compliance with the Internal Revenue Code.
3228	5. The cost-effectiveness of the product provided and the
3229	levels of service supporting the product relative to its
3230	benefits and its characteristics, including, without limitation,
3231	the level of risk borne by the provider.
3232	6. The provider company's ability and willingness to
3233	coordinate its activities with Florida Retirement System
3234	employers, the division department, and the board, and to supply
3235	to such employers, the division department, and the board the
3236	information and data they require.
3237	7. The methods available to participants to interact with
3238	the provider company; the means by which participants may access
3239	account information, direct investment of contributions, make
3240	changes to their accounts, transfer moneys between available
3241	investment vehicles, and transfer moneys between provider
3242	companies; and any fees that apply to such activities.
3243	8. The provider company's policies with respect to the
3244	transfer of individual account balances, contributions, and
3245	earnings thereon, both internally among investment products
3246	offered by the provider company and externally between approved
3247	providers, as well as any fees, charges, reductions, or
3248	penalties that may be applied.
3249	9. An evaluation of specific investment products, taking
3250	into account each product's experience in meeting its investment
3251	return objectives net of all related fees, expenses, and
3252	charges, including, but not limited to, investment management
3253	fees, loads, distribution and marketing fees, custody fees,
3254	recordkeeping fees, education fees, annuity expenses, and
3255	consulting fees.
3256	10. Organizational factors, including, but not limited to,
3257	financial solvency, organizational depth, and experience in
3258	providing institutional and retail investment services.
3259	(10) EDUCATION COMPONENT.--
3260	(a) The board, in coordination with the department,shall
3261	provide for an education component for system members in a
3262	manner consistent with the provisions of this section. The
3263	education component must be available to eligible employees at
3264	least 90 days prior to the beginning date of the election period
3265	for the employees of the respective types of employers.
3266	(c) The board, in coordination with the department,shall
3267	provide for an initial and ongoing transfer education component
3268	to provide system members with information necessary to make
3269	informed plan choice decisions. The transfer education component
3270	must include, but is not limited to, information on:
3271	1. The amount of money available to a member to transfer
3272	to the defined contribution program.
3273	2. The features of and differences between the defined
3274	benefit program and the defined contribution program, both
3275	generally and specifically, as those differences may affect the
3276	member.
3277	3. The expected benefit available if the member were to
3278	retire under each of the retirement programs, based on
3279	appropriate alternative sets of assumptions.
3280	4. The rate of return from investments in the defined
3281	contribution program and the period of time over which such rate
3282	of return must be achieved to equal or exceed the expected
3283	monthly benefit payable to the member under the defined benefit
3284	program.
3285	5. The historical rates of return for the investment
3286	alternatives available in the defined contribution programs.
3287	6. The benefits and historical rates of return on
3288	investments available in a typical deferred compensation plan or
3289	a typical plan under s. 403(b) of the Internal Revenue Code for
3290	which the employee may be eligible.
3291	7. The program choices available to employees of the State
3292	University System and the comparative benefits of each available
3293	program, if applicable.
3294	8. Payout options available in each of the retirement
3295	programs.
3296	(f) The board and the departmentshall also establish a
3297	communication component to provide program information to
3298	participating employers and the employers' personnel and payroll
3299	officers and to explain their respective responsibilities in
3300	conjunction with the retirement programs.
3301	(11) PARTICIPANT INFORMATION REQUIREMENTS.--The board
3302	shall ensure that each participant is provided a quarterly
3303	statement that accounts for the contributions made on behalf of
3304	such participant; the interest and investment earnings thereon;
3305	and any fees, penalties, or other deductions that apply thereto.
3306	At a minimum, such statements must:
3307	(a) Indicate the participant's investment options.
3308	(b) State the market value of the account at the close of
3309	the current quarter and previous quarter.
3310	(c) Show account gains and losses for the period and
3311	changes in account accumulation unit values for the period.
3312	(d) Itemize account contributions for the quarter.
3313	(e) Indicate any account changes due to adjustment of
3314	contribution levels, reallocation of contributions, balance
3315	transfers, or withdrawals.
3316	(f) Set forth any fees, charges, penalties, and deductions
3317	that apply to the account.
3318	(g) Indicate the amount of the account in which the
3319	participant is fully vested and the amount of the account in
3320	which the participant is not vested.
3321	(h) Indicate each investment product's performance
3322	relative to an appropriate market benchmark.
3323
3324	The third-party administrator shall provide quarterly and annual
3325	summary reports to the board and any other reports requested by
3326	the department orthe board. In any solicitation or offer of
3327	coverage under an optional retirement program, a provider
3328	company shall be governed by the contract readability provisions
3329	of s. 627.4145, notwithstanding s. 627.4145(6)(c). In addition,
3330	all descriptive materials must be prepared under the assumption
3331	that the participant is an unsophisticated investor. Provider
3332	companies must maintain an internal system of quality assurance,
3333	have proven functional systems that are date-calculation
3334	compliant, and be subject to a due-diligence inquiry that proves
3335	their capacity and fitness to undertake service
3336	responsibilities.
3337	(19) PARTICIPANT RECORDS.--All personal identifying
3338	information regarding a participant in the Public Employee
3339	Optional Retirement Program contained in Florida Retirement
3340	System records held by the State Board of Administration or the
3341	Department of Management Services, or its theiragents,
3342	employees, or contractors is exempt from the provisions of s.
3343	119.07(1) and s. 24(a), Art. I of the State Constitution. The
3344	department orboard may use such exempt information as necessary
3345	in any legal or administrative proceeding. This subsection is
3346	subject to the Open Government Sunset Review Act of 1995 in
3347	accordance with s. 119.15, and shall stand repealed October 2,
3348	2007, unless reviewed and saved from repeal through reenactment
3349	by the Legislature.
3350	Section 42. Section 121.4503, Florida Statutes, is amended
3351	to read:
3352	121.4503 Florida Retirement System Contributions Clearing
3353	Trust Fund.--
3354	(1) The Florida Retirement System Contributions Clearing
3355	Trust Fund is created in the State Treasuryas a clearing fund
3356	for disbursing employer contributions to the component plans of
3357	the Florida Retirement System and shall be administered by the
3358	State Board of Administration Department of Management Services.
3359	Funds shall be credited to the trust fund as provided in this
3360	chapter and shall be held in trust for the contributing
3361	employers until such time as the assets are transferred by the
3362	board departmentto the Florida Retirement System Trust Fund,
3363	the Public Employee Optional Retirement Program Trust Fund, or
3364	other trust funds as authorized by law, to be used for the
3365	purposes of this chapter. The trust fund is exempt from the
3366	service charges imposed by s. 215.20.
3367	(2) The Florida Retirement System Contributions Clearing
3368	Trust Fund is a clearing trust fund of the State Board of
3369	Administration Department of Management Servicespursuant to s.
3370	19(f), Art. III of the State Constitution, and is not subject to
3371	termination.
3372	(3) The State Board of Administration Department of
3373	Management Servicesmay adopt rules governing the receipt and
3374	disbursement of amounts received by the Florida Retirement
3375	System Contributions Clearing Trust Fund from employers
3376	contributing to the component plans of the Florida Retirement
3377	System.
3378	Section 43. Section 121.591, Florida Statutes, is amended
3379	to read:
3380	121.591 Benefits payable under the Public Employee
3381	Optional Retirement Program of the Florida Retirement
3382	System.--Benefits may not be paid under this section unless the
3383	member has terminated employment as provided in s.
3384	121.021(39)(a) or is deceased and a proper application has been
3385	filed in the manner prescribed by the state board or the
3386	division department. The state board or division department, as
3387	appropriate, may cancel an application for retirement benefits
3388	when the member or beneficiary fails to timely provide the
3389	information and documents required by this chapter and the rules
3390	of the state board and division department. In accordance with
3391	their respective responsibilities as provided herein, the State
3392	Board of Administration and the division Department of
3393	Management Servicesshall adopt rules establishing procedures
3394	for application for retirement benefits and for the cancellation
3395	of such application when the required information or documents
3396	are not received.
3397	(1) NORMAL BENEFITS.--Under the Public Employee Optional
3398	Retirement Program:
3399	(a) Benefits in the form of vested accumulations as
3400	described in s. 121.4501(6) shall be payable under this
3401	subsection in accordance with the following terms and
3402	conditions:
3403	1. To the extent vested, benefits shall be payable only to
3404	a participant.
3405	2. Benefits shall be paid by the third-party administrator
3406	or designated approved providers in accordance with the law, the
3407	contracts, and any applicable board rule or policy.
3408	3. To receive benefits under this subsection, the
3409	participant must be terminated from all employment with all
3410	Florida Retirement System employers, as provided in s.
3411	121.021(39).
3412	(b) If a participant elects to receive his or her benefits
3413	upon termination of employment, the participant must submit a
3414	written application to the third-party administrator indicating
3415	his or her preferred distribution date and selecting an
3416	authorized method of distribution as provided in paragraph (c).
3417	The participant may defer receipt of benefits until he or she
3418	chooses to make such application, subject to federal
3419	requirements.
3420	(c) Upon receipt by the third-party administrator of a
3421	properly executed application for distribution of benefits, the
3422	total accumulated benefit shall be payable to the participant,
3423	as:
3424	1. A lump-sum distribution to the participant;
3425	2. A lump-sum direct rollover distribution whereby all
3426	accrued benefits, plus interest and investment earnings, are
3427	paid from the participant's account directly to the custodian of
3428	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
3429	the Internal Revenue Code, on behalf of the participant; or
3430	3. Periodic distributions, as authorized by the state
3431	board.
3432	(2) DISABILITY RETIREMENT BENEFITS.--Benefits provided
3433	under this subsection are payable in lieu of the benefits which
3434	would otherwise be payable under the provisions of subsection
3435	(1). Such benefits shall be funded entirely from employer
3436	contributions made under s. 121.571, transferred participant
3437	funds accumulated pursuant to paragraph (a), and interest and
3438	earnings thereon. Pursuant thereto:
3439	(a) Transfer of funds.--To qualify to receive monthly
3440	disability benefits under this subsection:
3441	1. All moneys accumulated in the participant's Public
3442	Employee Optional Retirement Program accounts, including vested
3443	and nonvested accumulations as described in s. 121.4501(6),
3444	shall be transferred from such individual accounts to the
3445	Division of Retirement for deposit in the disability account of
3446	the Florida Retirement System Trust Fund. Such moneys shall be
3447	separately accounted for. Earnings shall be credited on an
3448	annual basis for amounts held in the disability accounts of the
3449	Florida Retirement System Trust Fund based on actual earnings of
3450	the Florida Retirement System Trust Fund.
3451	2. If the participant has retained retirement credit he or
3452	she had earned under the defined benefit program of the Florida
3453	Retirement System as provided in s. 121.4501(3)(b), a sum
3454	representing the actuarial present value of such credit within
3455	the Florida Retirement System Trust Fund shall be reassigned by
3456	the Division of Retirement from the defined benefit program to
3457	the disability program as implemented under this subsection and
3458	shall be deposited in the disability account of the Florida
3459	Retirement System Trust Fund. Such moneys shall be separately
3460	accounted for.
3461	(b) Disability retirement; entitlement.--
3462	1. A participant of the Public Employee Optional
3463	Retirement Program who becomes totally and permanently disabled,
3464	as defined in s. 121.091(4)(b), after completing 8 years of
3465	creditable service, or a participant who becomes totally and
3466	permanently disabled in the line of duty regardless of his or
3467	her length of service, shall be entitled to a monthly disability
3468	benefit as provided herein.
3469	2. In order for service to apply toward the 8 years of
3470	service required to vest for regular disability benefits, or
3471	toward the creditable service used in calculating a service-
3472	based benefit as provided for under paragraph (g), the service
3473	must be creditable service as described below:
3474	a. The participant's period of service under the Public
3475	Employee Optional Retirement Program will be considered
3476	creditable service, except as provided in subparagraph d.
3477	b. If the participant has elected to retain credit for his
3478	or her service under the defined benefit program of the Florida
3479	Retirement System as provided under s. 121.4501(3)(b), all such
3480	service will be considered creditable service.
3481	c. If the participant has elected to transfer to his or
3482	her participant accounts a sum representing the present value of
3483	his or her retirement credit under the defined benefit program
3484	as provided under s. 121.4501(3)(c), the period of service under
3485	the defined benefit program represented in the present value
3486	amounts transferred will be considered creditable service for
3487	purposes of vesting for disability benefits, except as provided
3488	in subparagraph d.
3489	d. Whenever a participant has terminated employment and
3490	has taken distribution of his or her funds as provided in
3491	subsection (1), all creditable service represented by such
3492	distributed funds is forfeited for purposes of this subsection.
3493	(c) Disability retirement effective date.--The effective
3494	retirement date for a participant who applies and is approved
3495	for disability retirement shall be established as provided under
3496	s. 121.091(4)(a)2. and 3.
3497	(d) Total and permanent disability.--A participant shall
3498	be considered totally and permanently disabled if, in the
3499	opinion of the division, he or she is prevented, by reason of a
3500	medically determinable physical or mental impairment, from
3501	rendering useful and efficient service as an officer or
3502	employee.
3503	(e) Proof of disability.--The division, before approving
3504	payment of any disability retirement benefit, shall require
3505	proof that the participant is totally and permanently disabled
3506	in the same manner as provided for members of the defined
3507	benefit program of the Florida Retirement System under s.
3508	121.091(4)(c).
3509	(f) Disability retirement benefit.--Upon the disability
3510	retirement of a participant under this subsection, the
3511	participant shall receive a monthly benefit that shall begin to
3512	accrue on the first day of the month of disability retirement,
3513	as approved by the division, and shall be payable on the last
3514	day of that month and each month thereafter during his or her
3515	lifetime and continued disability. All disability benefits
3516	payable to such member shall be paid out of the disability
3517	account of the Florida Retirement System Trust Fund established
3518	under this subsection.
3519	(g) Computation of disability retirement benefit.--The
3520	amount of each monthly payment shall be calculated in the same
3521	manner as provided for members of the defined benefit program of
3522	the Florida Retirement System under s. 121.091(4)(f). For such
3523	purpose, creditable service under both the defined benefit
3524	program and the Public Employee Optional Retirement Program of
3525	the Florida Retirement System shall be applicable as provided
3526	under paragraph (b).
3527	(h) Reapplication.--A participant whose initial
3528	application for disability retirement has been denied may
3529	reapply for disability benefits in the same manner, and under
3530	the same conditions, as provided for members of the defined
3531	benefit program of the Florida Retirement System under s.
3532	121.091(4)(g).
3533	(i) Membership.--Upon approval of an application for
3534	disability benefits under this subsection, the applicant shall
3535	be transferred to the defined benefit program of the Florida
3536	Retirement System, effective upon his or her disability
3537	retirement effective date.
3538	(j) Option to cancel.--Any participant whose application
3539	for disability benefits is approved may cancel his or her
3540	application for disability benefits, provided that the
3541	cancellation request is received by the division before a
3542	disability retirement warrant has been deposited, cashed, or
3543	received by direct deposit. Upon such cancellation:
3544	1. The participant's transfer to the defined benefit
3545	program under paragraph (i) shall be nullified;
3546	2. The participant shall be retroactively reinstated in
3547	the Public Employee Optional Retirement Program without hiatus;
3548	3. All funds transferred to the Florida Retirement System
3549	Trust Fund under paragraph (a) shall be returned to the
3550	participant accounts from which such funds were drawn; and
3551	4. The participant may elect to receive the benefit
3552	payable under the provisions of subsection (1) in lieu of
3553	disability benefits as provided under this subsection.
3554	(k) Recovery from disability.--
3555	1. The division may require periodic reexaminations at the
3556	expense of the disability program account of the Florida
3557	Retirement System Trust Fund. Except as otherwise provided in
3558	subparagraph 2., the requirements, procedures, and restrictions
3559	relating to the conduct and review of such reexaminations,
3560	discontinuation or termination of benefits, reentry into
3561	employment, disability retirement after reentry into covered
3562	employment, and all other matters relating to recovery from
3563	disability shall be the same as are set forth under s.
3564	121.091(4)(h).
3565	2. Upon recovery from disability, any recipient of
3566	disability retirement benefits under this subsection shall be a
3567	compulsory member of the Public Employee Optional Retirement
3568	Program of the Florida Retirement System. The net difference
3569	between the recipient's original account balance transferred to
3570	the Florida Retirement System Trust Fund, including earnings,
3571	under paragraph (a) and total disability benefits paid to such
3572	recipient, if any, shall be determined as provided in sub-
3573	subparagraph a.
3574	a. An amount equal to the total benefits paid shall be
3575	subtracted from that portion of the transferred account balance
3576	consisting of vested accumulations as described under s.
3577	121.4501(6), if any, and an amount equal to the remainder of
3578	benefit amounts paid, if any, shall then be subtracted from any
3579	remaining portion consisting of nonvested accumulations as
3580	described under s. 121.4501(6).
3581	b. Amounts subtracted under sub-subparagraph a. shall be
3582	retained within the disability account of the Florida Retirement
3583	System Trust Fund. Any remaining account balance shall be
3584	transferred to the third-party administrator for disposition as
3585	provided under sub-subparagraph c. or sub-subparagraph d., as
3586	appropriate.
3587	c. If the recipient returns to covered employment,
3588	transferred amounts shall be deposited in individual accounts
3589	under the Public Employee Optional Retirement Program, as
3590	directed by the participant. Vested and nonvested amounts shall
3591	be separately accounted for as provided in s. 121.4501(6).
3592	d. If the recipient fails to return to covered employment
3593	upon recovery from disability:
3594	(I) Any remaining vested amount shall be deposited in
3595	individual accounts under the Public Employee Optional
3596	Retirement Program, as directed by the participant, and shall be
3597	payable as provided in subsection (1).
3598	(II) Any remaining nonvested amount shall be held in a
3599	suspense account and shall be forfeitable after 5 years as
3600	provided in s. 121.4501(6).
3601	3. If present value was reassigned from the defined
3602	benefit program to the disability program of the Florida
3603	Retirement System as provided under subparagraph (a)2., the full
3604	present value amount shall be returned to the defined benefit
3605	account within the Florida Retirement System Trust Fund and the
3606	affected individual's associated retirement credit under the
3607	defined benefit program shall be reinstated in full. Any benefit
3608	based upon such credit shall be calculated as provided in s.
3609	121.091(4)(h)1.
3610	(l) Nonadmissible causes of disability.--A participant
3611	shall not be entitled to receive a disability retirement benefit
3612	if the disability results from any injury or disease sustained
3613	or inflicted as described in s. 121.091(4)(i).
3614	(m) Disability retirement of justice or judge by order of
3615	Supreme Court.--
3616	1. If a participant is a justice of the Supreme Court,
3617	judge of a district court of appeal, circuit judge, or judge of
3618	a county court who has served for 6 years or more as an elected
3619	constitutional judicial officer, including service as a judicial
3620	officer in any court abolished pursuant to Art. V of the State
3621	Constitution, and who is retired for disability by order of the
3622	Supreme Court upon recommendation of the Judicial Qualifications
3623	Commission pursuant to the provisions of Art. V of the State
3624	Constitution, the participant's Option 1 monthly disability
3625	benefit amount as provided in s. 121.091(6)(a)1. shall be two-
3626	thirds of his or her monthly compensation as of the
3627	participant's disability retirement date. Such a participant
3628	may alternatively elect to receive an actuarially adjusted
3629	disability retirement benefit under any other option as provided
3630	in s. 121.091(6)(a), or to receive the normal benefit payable
3631	under the Public Employee Optional Retirement Program as set
3632	forth in subsection (1).
3633	2. If any justice or judge who is a participant of the
3634	Public Employee Optional Retirement Program of the Florida
3635	Retirement System is retired for disability by order of the
3636	Supreme Court upon recommendation of the Judicial Qualifications
3637	Commission pursuant to the provisions of Art. V of the State
3638	Constitution and elects to receive a monthly disability benefit
3639	under the provisions of this paragraph:
3640	a. Any present value amount that was transferred to his or
3641	her program account and all employer contributions made to such
3642	account on his or her behalf, plus interest and earnings
3643	thereon, shall be transferred to and deposited in the disability
3644	account of the Florida Retirement System Trust Fund; and
3645	b. The monthly benefits payable under this paragraph for
3646	any affected justice or judge retired from the Florida
3647	Retirement System pursuant to Art. V of the State Constitution
3648	shall be paid from the disability account of the Florida
3649	Retirement System Trust Fund.
3650	(n) Death of retiree or beneficiary.--Upon the death of a
3651	disabled retiree or beneficiary thereof who is receiving monthly
3652	benefits under this subsection, the monthly benefits shall be
3653	paid through the last day of the month of death and shall
3654	terminate, or be adjusted, if applicable, as of that date in
3655	accordance with the optional form of benefit selected at the
3656	time of retirement. The deceased disabled retiree's beneficiary
3657	shall also receive the amount of the participant's remaining
3658	account balance, if any, in the Florida Retirement System Trust
3659	Fund. The Division of Retirement Department of Management
3660	Servicesmay adopt rules necessary to administer this paragraph.
3661	(3) DEATH BENEFITS.--Under the Public Employee Optional
3662	Retirement Program:
3663	(a) Survivor benefits shall be payable in accordance with
3664	the following terms and conditions:
3665	1. To the extent vested, benefits shall be payable only to
3666	a participant's beneficiary or beneficiaries as designated by
3667	the participant. If a participant designates a primary
3668	beneficiary other than the participant's spouse, the
3669	participant's spouse shall be notified of the designation. This
3670	requirement shall not apply to the designation of one or more
3671	contingent beneficiaries to receive any benefits remaining upon
3672	the death of the primary beneficiary or beneficiaries.
3673	2. Benefits shall be paid by the third-party administrator
3674	or designated approved providers in accordance with the law, the
3675	contracts, and any applicable board rule or policy.
3676	3. To receive benefits under this subsection, the
3677	participant must be deceased.
3678	(b) In the event of a participant's death, all vested
3679	accumulations as described in s. 121.4501(6), less withholding
3680	taxes remitted to the Internal Revenue Service, shall be
3681	distributed, as provided in paragraph (c), to the participant's
3682	designated beneficiary or beneficiaries, or to the participant's
3683	estate, as if the participant retired on the date of death. No
3684	other death benefits shall be available for survivors of
3685	participants under the Public Employee Optional Retirement
3686	Program, except for such benefits, or coverage for such
3687	benefits, as are otherwise provided by law or are separately
3688	afforded by the employer, at the employer's discretion.
3689	(c) Upon receipt by the third-party administrator of a
3690	properly executed application for distribution of benefits, the
3691	total accumulated benefit shall be payable by the third-party
3692	administrator to the participant's surviving beneficiary or
3693	beneficiaries, as:
3694	1. A lump-sum distribution payable to the beneficiary or
3695	beneficiaries, or to the deceased participant's estate;
3696	2. An eligible rollover distribution on behalf of the
3697	surviving spouse of a deceased participant, whereby all accrued
3698	benefits, plus interest and investment earnings, are paid from
3699	the deceased participant's account directly to the custodian of
3700	an eligible retirement plan, as described in s. 402(c)(8)(B) of
3701	the Internal Revenue Code, on behalf of the surviving spouse; or
3702	3. A partial lump-sum payment whereby a portion of the
3703	accrued benefit is paid to the deceased participant's surviving
3704	spouse or other designated beneficiaries, less withholding taxes
3705	remitted to the Internal Revenue Service, and the remaining
3706	amount is transferred directly to the custodian of an eligible
3707	retirement plan, as described in s. 402(c)(8)(B) of the Internal
3708	Revenue Code, on behalf of the surviving spouse. The proportions
3709	must be specified by the participant or the surviving
3710	beneficiary.
3711
3712	This paragraph does not abrogate other applicable provisions of
3713	state or federal law providing for payment of death benefits.
3714	(4) LIMITATION ON LEGAL PROCESS.--The benefits payable to
3715	any person under the Public Employee Optional Retirement
3716	Program, and any contributions accumulated under such program,
3717	are not subject to assignment, execution, attachment, or any
3718	legal process, except for qualified domestic relations orders by
3719	a court of competent jurisdiction, income deduction orders as
3720	provided in s. 61.1301, and federal income tax levies.
3721	Section 44. Section 121.5911, Florida Statutes, is amended
3722	to read:
3723	121.5911 Disability retirement program; qualified status;
3724	rulemaking authority.--It is the intent of the Legislature that
3725	the disability retirement program for participants of the Public
3726	Employee Optional Retirement Program as created in this act must
3727	meet all applicable requirements of federal law for a qualified
3728	plan. The Department of Management Services or the Division of
3729	Retirementshall seek a private letter ruling from the Internal
3730	Revenue Service on the disability retirement program for
3731	participants of the Public Employee Optional Retirement Program.
3732	Consistent with the private letter ruling, the division
3733	Department of Management Servicesshall adopt any necessary
3734	rules required to maintain the qualified status of the
3735	disability retirement program and the Florida Retirement System
3736	defined benefit plan.
3737	Section 45. Subsection (1) of section 121.72, Florida
3738	Statutes, is amended to read:
3739	121.72 Allocations to optional retirement program
3740	participant accounts; percentage amounts.--
3741	(1) The allocations established in subsection (4) shall
3742	fund retirement benefits under the optional retirement program
3743	and shall be transferred monthly by the State Board of
3744	Administration Division of Retirementfrom the Florida
3745	Retirement System Contributions Clearing Trust Fund to the
3746	third-party administrator for deposit in each participating
3747	employee's individual account based on the membership class of
3748	the participant.
3749	Section 46. Subsection (1) of section 121.73, Florida
3750	Statutes, is amended to read:
3751	121.73 Allocations for optional retirement program
3752	participant disability coverage; percentage amounts.--
3753	(1) The allocations established in subsection (3) shall be
3754	used to provide disability coverage for participants in the
3755	optional retirement program and shall be transferred monthly by
3756	the State Board of Administration Division of Retirementfrom
3757	the Florida Retirement System Contributions Clearing Trust Fund
3758	to the disability account of the Florida Retirement System Trust
3759	Fund.
3760	Section 47. Section 121.74, Florida Statutes, is amended
3761	to read:
3762	121.74 Administrative and educational expenses.--Effective
3763	July 1, 2003, in addition to contributions required under s.
3764	121.71, employers participating in the Florida Retirement System
3765	shall contribute an amount equal to 0.10 percent of the payroll
3766	reported for each class or subclass of Florida Retirement System
3767	membership, which amount shall be transferred by the State Board
3768	of Administration Division of Retirementfrom the Florida
3769	Retirement System Contributions Clearing Trust Fund to the
3770	board's State Board of Administration'sAdministrative Trust
3771	Fund to offset the costs of administering the optional
3772	retirement program and the costs of providing educational
3773	services to participants in the defined benefit program and the
3774	optional retirement program. Approval of the Trustees of the
3775	State Board of Administration is required prior to the
3776	expenditure of these funds. Payments for third-party
3777	administrative or educational expenses shall be made only
3778	pursuant to the terms of the approved contracts for such
3779	services.
3780	Section 48. Subsections (1) and (6) of section 122.02,
3781	Florida Statutes, are amended to read:
3782	122.02 Definitions.--The following words and phrases as
3783	used in this chapter shall have the following meaning unless a
3784	different meaning is plainly required by the context:
3785	(1) "State and county officers and employees" shall
3786	include all full-time officers or employees who receive
3787	compensation for services rendered from state or county funds,
3788	or from funds of drainage districts or mosquito control
3789	districts of a county or counties, or from funds of the State
3790	Board of Administration or from funds of closed bank
3791	receivership accounts or from funds of any state institution or
3792	who receive compensation for employment or service from any
3793	agency, branch, department, institution or board of the state,
3794	or any county of the state, for service rendered the state or
3795	county from funds from any source provided for their employment
3796	or service regardless of whether the same is paid by state or
3797	county warrant or not; provided that such compensation in
3798	whatever form paid shall be specified in terms of fixed monthly
3799	salaries by the employing state or county agency or state or
3800	county official and shall not include amounts allowed for
3801	professional employees for special or particular service or for
3802	subsistence or travel expenses; provided further the division
3803	departmentshall prescribe appropriate procedure for
3804	contribution deduction out of such compensation in accordance
3805	with the provisions of this chapter, provided further that such
3806	officers and employees defined herein shall not include those
3807	officers and employees excepted from the provisions by s. 122.18
3808	of this law.
3809	(6) "Division" means the Division of Retirement of the
3810	State Board of Administration "Department" means the Department
3811	of Management Services.
3812	Section 49. Paragraph (d) of subsection (6) and subsection
3813	(9) of section 122.03, Florida Statutes, are amended to read:
3814	122.03 Contributions; participants; prior service
3815	credit.--
3816	(6) Any officer or employee who held office or was
3817	employed by the state or a county of the state continuously from
3818	May 1, 1959, and who has not previously received credit for, or
3819	is not eligible to claim credit for, prior years of service
3820	under subsection (2); or any officer or employee who holds
3821	office or is employed by the state or a county of the state on
3822	June 1, 1961, and is continuously employed; or any officer or
3823	employee who holds office or is employed by the state or county
3824	of the state after June 1, 1961, and who is continuously
3825	employed for 3 years, during which period of time no back
3826	payments may be made:
3827	(d) Prior service allowance may be made only for those
3828	periods in which state or county records of service and salary
3829	are available, or at least three affidavits and such other
3830	information as might be required by the division departmentto
3831	meet the provisions of this law.
3832	(9) The surviving spouse or other dependent of any member
3833	whose employment is terminated by death shall, upon application
3834	to the division department, be permitted to pay the required
3835	contributions for any service performed by the member which
3836	could have been claimed by the member at the time of death. Such
3837	service shall be added to the creditable service of the member
3838	and shall be used in the calculation of any benefits which may
3839	be payable to the surviving spouse or other surviving dependent.
3840	Section 50. Subsection (2) of section 122.05, Florida
3841	Statutes, is amended to read:
3842	122.05 Legislator services included.--
3843	(2) The division departmentand state officials
3844	administering such saidretirement system shall make the
3845	contribution deductions required by law from the compensation
3846	hereafter received by any of the saidparticipating members of
3847	the Legislature for service rendered the State Legislature in
3848	the same manner as in the case of other state employment.
3849	Section 51. Subsection (2) of section 122.06, Florida
3850	Statutes, is amended to read:
3851	122.06 Legislative employee services included.--
3852	(2) The division departmentand other state officials
3853	administering such saidretirement system shall make the
3854	contribution deductions required by law from the compensation
3855	hereafter received by any of the such saidparticipating
3856	attaches for service rendered the State Legislature in the same
3857	manner as in the case of other state employment.
3858	Section 52. Subsection (2) of section 122.07, Florida
3859	Statutes, is amended to read:
3860	122.07 Seasonal state employment included; time limit and
3861	procedure for claiming.--
3862	(2) Any state employee as described in subsection (1) in
3863	the classification set forth in s. 122.01 may elect to receive
3864	credit as a state employee under the State and County Officers
3865	and Employees' Retirement System by providing to the division
3866	departmenta statement from the state in which he or she was
3867	employed, listing days employed and monthly earnings and such
3868	other information as may, in the opinion of the division
3869	department, be necessary or appropriate in the carrying out of
3870	this section. Credit shall be granted upon payment to the
3871	division departmentby such employee of an amount equal to the
3872	total retirement contribution that would have been required had
3873	the member worked in this state during the period based on the
3874	salary drawn by such employee during his or her last full month
3875	of employment by the state or any department thereof for each
3876	month during said fiscal year for which such employee was not
3877	employed by the state or any department thereof, but was
3878	employed by some other state, plus interest compounded annually
3879	each June 30 from the date of the service in another state to
3880	the date of payment at the rate of 4 percent until July 1, 1975,
3881	and 6.5 percent thereafter. The member shall have until his or
3882	her date of retirement to claim and purchase credit for such
3883	employment in another state.
3884	Section 53. Paragraph (a) of subsection (1), paragraph (b)
3885	of subsection (4), and subsections (5) and (9) of section
3886	122.08, Florida Statutes, are amended to read:
3887	122.08 Requirements for retirement;
3888	classifications.--There shall be two retirement classifications
3889	for all state and county officers and employees participating
3890	herein as hereafter provided in this section:
3891	(1)(a) Any state or county officer or employee who has
3892	attained normal retirement age, which shall be age 60 for a
3893	person who had become a member prior to July 1, 1963, and age 62
3894	for a person who had or shall become a member on or after July
3895	1, 1963, and has accumulated at least 10 years' service in the
3896	aggregate within the contemplation of this law, and who has made
3897	or makes contributions to the State and County Officers and
3898	Employees' Retirement Trust Fund for 5 or more years as
3899	prescribed in this law, may voluntarily retire from office or
3900	employment and be entitled to receive retirement compensation,
3901	the amount of which shall be 2 percent for each year of service
3902	rendered, based upon the average final compensation, payable in
3903	equal monthly installments, upon his or her own requisition.
3904	Requisition requirements shall be set by the division
3905	department.
3906	(4)
3907	(b) A member who elects an option in paragraph (a) shall
3908	on a form provided for that purpose designate his or her spouse
3909	as beneficiary to receive the benefits which continue to be
3910	payable upon the death of the member. After such benefits have
3911	commenced under an option in paragraph (a), the retired member
3912	may change the designation of his or her spouse as beneficiary
3913	only twice. If such a retired member remarries and wishes to
3914	make such a change, he or she may do so by filing with the
3915	division departmenta notarized change of spouse designation
3916	form and shall notify the former spouse in writing of such
3917	change. Upon receipt of a completed change of spouse designation
3918	form, the division departmentshall adjust the member's monthly
3919	benefit by the application of actuarial tables and calculations
3920	developed to ensure that the benefit paid is the actuarial
3921	equivalent of the present value of the member's current benefit.
3922	The consent of a retired member's formerly designated spouse as
3923	beneficiary to any such change shall not be required.
3924	(5) Tables for computing the actuarial equivalent shall be
3925	approved by the division department.
3926	(9) Notwithstanding any other provision in this chapter to
3927	the contrary, the following provisions shall apply to any
3928	officer or employee who has accumulated at least 10 years of
3929	service and dies:
3930	(a) If the deceased member's surviving spouse has
3931	previously received a refund of the member's contributions made
3932	to the retirement trust fund, such spouse may pay to the
3933	division departmentan amount equal to the sum of the amount of
3934	the deceased member's contributions previously refunded and
3935	interest at 3 percent compounded annually on the amount of such
3936	refunded contributions from the date of refund until July 1,
3937	1975, and thereafter at the rate of 6.5 percent interest
3938	compounded annually to the date of payment to the division
3939	department, and by so doing be entitled to receive the monthly
3940	retirement benefit provided in paragraph (c).
3941	(b) If the deceased member's surviving spouse has not
3942	received a refund of the deceased member's contributions, such
3943	spouse shall, upon application to the division department,
3944	receive the monthly retirement benefit provided in paragraph
3945	(c).
3946	(c) The monthly benefit payable to the spouse described in
3947	paragraph (a) or paragraph (b) shall be the amount which would
3948	have been payable to the deceased member's spouse, assuming that
3949	the member retired on the date of death and had selected the
3950	option in subsection (4) which would afford the surviving spouse
3951	the greatest amount of benefits, such benefit to be based on the
3952	ages of the spouse and member as of the date of death of the
3953	member. Such benefit shall commence on the first day of the
3954	month following the payment of the aforesaid amount to the
3955	division department, if paragraph (a) is applicable, or on the
3956	first day of the month following the receipt of the spouse's
3957	application by the division department, if paragraph (b) is
3958	applicable.
3959	Section 54. Section 122.09, Florida Statutes, is amended
3960	to read:
3961	122.09 Disability retirement; medical
3962	examinations.--Whenever any officer or employee of the state or
3963	county of the state has service credit as such officer or
3964	employee for 10 years within the contemplation of this law, the
3965	last 5 years of which, except for a single break not to exceed 1
3966	year, must be continuous, unbroken service and who is regularly
3967	contributing to the State and County Officers and Employees'
3968	Retirement Trust Fund and shall while holding such office or
3969	employment become permanently and totally disabled, physically
3970	or mentally, or both, from rendering useful and efficient
3971	service as such officer or employee, such officer or employee
3972	may retire from his or her office or employment, and upon such
3973	retirement the officer or employee shall be paid, so long as the
3974	permanent and total disability continues, on his or her own
3975	monthly requisition, from the State and County Officers and
3976	Employees' Retirement Trust Fund hereinafter established,
3977	retirement compensation as provided in s. 122.08; provided that
3978	no officer or employee retiring under this section shall receive
3979	less than 50 percent of his or her average final compensation
3980	not to exceed $75. No officer or employee of the state and
3981	county of the state shall be permitted to retire under the
3982	provisions of this section until examined by a duly qualified
3983	physician or surgeon or board of physicians and surgeons, to be
3984	selected by the Governor for that purpose, and found to be
3985	disabled in the degree and in the manner specified in this
3986	section. Any officer or employee retiring under this section
3987	shall be examined periodically by a duly qualified physician or
3988	surgeon or board of physicians and surgeons to be selected by
3989	the Governor for that purpose and paid from the retirement trust
3990	fund herein provided for, at such time as the division
3991	Department of Management Servicesshall direct to determine if
3992	such total disability has continued and in the event it be
3993	disclosed by said examination that said total disability has
3994	ceased to exist, then such officer or employee shall forthwith
3995	cease to be paid benefits under this section. Reference to s.
3996	122.08 is for the purpose of computing benefits only. Any
3997	person heretofore retired under this section shall be eligible
3998	to qualify for the minimum benefits provided herein; however,
3999	minimum benefits shall not be paid retroactively.
4000	Section 55. Subsection (4) of section 122.10, Florida
4001	Statutes, is amended to read:
4002	122.10 Separation from service; refund of contributions.--
4003	(4) Should any officer or employee elect to receive a
4004	refund as provided in this section, his or her application for
4005	refund shall be submitted in the manner prescribed by the
4006	regulations adopted by the division departmentand shall
4007	accompany the payroll certification, submitted to the division
4008	department, on which he or she was last paid prior to
4009	termination. The division departmentshall pay the entire
4010	refund due within 45 days after the first day of the month
4011	subsequent to receipt of such application for refund and said
4012	payroll certification.
4013	Section 56. Subsection (1) of section 122.12, Florida
4014	Statutes, is amended to read:
4015	122.12 Designation of beneficiary; death of participant;
4016	forfeiture of contributions after benefits paid; survivor
4017	benefits.--
4018	(1) Any officer or employee may file, in writing, a
4019	designation of beneficiary and it shall be the duty of the
4020	division departmentto refund 100 percent, without interest, of
4021	the contributions made to the retirement trust fund by such
4022	deceased officer or employee to such designated beneficiary.
4023	The officer or employee shall have the privilege of changing, in
4024	writing, the designated beneficiary at any time. Upon failure to
4025	designate a beneficiary, the refund shall be made to the persons
4026	in the same order as designated in s. 222.15, for wages due
4027	deceased employees. If the deceased officer or employee has
4028	received any benefits under this law, no refund shall be made
4029	unless such officer or employee has elected to accept benefits
4030	under s. 122.08(3) or (4).
4031	Section 57. Section 122.13, Florida Statutes, is amended
4032	to read:
4033	122.13 Administration of law; appropriation.--The division
4034	departmentshall make such rules as are necessary for the
4035	effective administration of this chapter, and the cost is hereby
4036	annually appropriated and shall be paid into the State and
4037	County Officers and Employees' Retirement Trust Fund out of the
4038	Intangible Tax Fund in the State Treasury in the amount
4039	necessary to administer efficiently the state and county
4040	retirement law. At the end of each fiscal year, beginning with
4041	fiscal year 1959-1960, the administrative cost of the state and
4042	county retirement system for the fiscal year just ended shall be
4043	refunded to the General Revenue Fund from interest earned on
4044	investments made subsequent to June 30, 1959.
4045	Section 58. Subsection (2) of section 122.15, Florida
4046	Statutes, is amended to read:
4047	122.15 Benefits exempt from taxes and execution.--
4048	(2) This subsection shall have no effect upon this section
4049	except that the division departmentmay, upon written request
4050	from the retired member, deduct premiums for group
4051	hospitalization insurance from the retirement benefit paid such
4052	retired member.
4053	Section 59. Paragraph (b) of subsection (2) of section
4054	122.16, Florida Statutes, is amended to read:
4055	122.16 Employment after retirement.--
4056	(2)
4057	(b) Any person to whom the limitation in paragraph (a)
4058	applies who violates such reemployment limitation and is
4059	reemployed with any agency participating in the Florida
4060	Retirement System prior to completion of the 12-month limitation
4061	period shall give timely notice of this fact in writing to his
4062	or her employer and to the division department; and his or her
4063	retirement benefits shall be suspended for the balance of the
4064	12-month limitation period. Any person employed in violation of
4065	this subsection and any employing agency which knowingly employs
4066	or appoints such person without notifying the division
4067	departmentto suspend retirement benefits shall be jointly and
4068	severally liable for reimbursement to the retirement trust fund
4069	of any benefits paid during the reemployment limitation period.
4070	To avoid liability, such employing agency shall have a written
4071	statement from the retiree that he or she is not retired from a
4072	state-administered retirement system. Any retirement benefits
4073	received by such person while he or she is reemployed during
4074	this reemployment limitation period shall be repaid to the
4075	retirement trust fund, and his or her retirement benefits shall
4076	remain suspended until such repayment has been made. Any
4077	benefits suspended beyond the reemployment limitation period
4078	shall apply toward the repayment of benefits received in
4079	violation of the reemployment limitation.
4080	Section 60. Subsection (3) of section 122.23, Florida
4081	Statutes, is amended to read:
4082	122.23 Definitions; ss. 122.21-122.321.--In addition to
4083	those definitions set forth in s. 122.02 the following words and
4084	phrases used in ss. 122.21-122.24, 122.26 to 122.321, inclusive,
4085	have the respective meanings set forth:
4086	(3) "Division" means the Division of Retirement of the
4087	State Board of Administration "Department" means the Department
4088	of Management Services.
4089	Section 61. Subsections (1) and (5) of section 122.30,
4090	Florida Statutes, are amended to read:
4091	122.30 Appropriations.--
4092	(1) There is hereby annually appropriated from the
4093	intangible tax fund of the state to the division departmentas
4094	the state agency designated in chapter 650, a sum not to exceed
4095	$10,000 to defray the expenses of such agency in connection with
4096	its continuing duties in relation to the social security
4097	coverage provided by this law.
4098	(5) In addition to amounts appropriated by other
4099	provisions of this chapter or other laws to defray cost of
4100	administration of this system, there is hereby appropriated out
4101	of the Intangible Tax Fund of the state for use of the division
4102	departmentin its administration of the two divisions of this
4103	system, the sum of $100,000, or so much thereof as may be
4104	required for that purpose.
4105	Section 62. Paragraphs (b) and (c) of subsection (1) and
4106	subsection (11) of section 122.34, Florida Statutes, are amended
4107	to read:
4108	122.34 Special provisions for certain sheriffs and full-
4109	time deputy sheriffs.--
4110	(1)
4111	(b) Only those members who are full-time criminal law
4112	enforcement officers or agents, as certified by the employing
4113	authority, who perform duties according to rule, order, or
4114	established custom as full-time criminal law enforcement
4115	officers or agents shall be certified to the division department
4116	as high hazard members, and only such members will be approved
4117	by the division department.
4118	(c) The division departmentshall make such rules as are
4119	necessary for the effective administration of the intent of this
4120	section.
4121	(11) No high hazard member shall be permitted to receive
4122	benefits under this section until examined by a duly qualified
4123	physician or surgeon, or board of physicians and surgeons, to be
4124	selected by the Governor for that purpose, and found to be
4125	disabled in the degree and in the manner specified in this
4126	section. At such time as the division Department of Management
4127	Servicesdirects, any high hazard member receiving disability
4128	benefits under this section shall submit to a medical
4129	examination to determine if such disability has continued, and
4130	the cost of such examination shall be paid from the retirement
4131	trust fund herein provided for; and in the event it is declared
4132	by said examination that said disability has cleared, such
4133	member shall be ordered to return to active duty with the same
4134	rank and salary that he or she had at the time of disability.
4135	Any such member who shall fail to return to duty following such
4136	order shall forfeit all rights and claims under this law. Every
4137	high hazard member retiring under this provision shall be paid
4138	so long as the member's permanent total or partial disability
4139	continues, on his or her own requisition.
4140	Section 63. Section 122.351, Florida Statutes, is amended
4141	to read:
4142	122.351 Funding by local agencies.--Commencing on July 1,
4143	1969, all county and local agencies covered under the provisions
4144	of s. 122.35 shall accumulate and be responsible for the payment
4145	of social security and retirement matching costs as required
4146	under s. 122.35, from the intangible tax allocation of that
4147	county and any other source available to the local governmental
4148	units, except that all agencies, other than the school boards,
4149	shall be given credit for 50 percent of their 1967-1969 actual
4150	employer matching cost, actual cost being that cost in cash
4151	actually paid by the employer for matching retirement and social
4152	security into the fund by the agency for said biennium. The
4153	above credit of 50 percent shall be calculated by the division
4154	department.
4155	Section 64. Subsection (6) of section 175.032, Florida
4156	Statutes, is amended to read:
4157	175.032 Definitions.--For any municipality, special fire
4158	control district, chapter plan, local law municipality, local
4159	law special fire control district, or local law plan under this
4160	chapter, the following words and phrases have the following
4161	meanings:
4162	(6) "Division" means the Division of Retirement of the
4163	State Board of Administration Department of Management Services.
4164	Section 65. Subsection (1) of section 175.121, Florida
4165	Statutes, is amended to read:
4166	175.121 Department of Revenue and Division of Retirement
4167	to keep accounts of deposits; disbursements.--For any
4168	municipality or special fire control district having a chapter
4169	or local law plan established pursuant to this chapter:
4170	(1) The Department of Revenue shall keep a separate
4171	account of all moneys collected for each municipality and each
4172	special fire control district under the provisions of this
4173	chapter. Seven and three-tenths percent of all moneys so
4174	collected shall be transferred to the General Revenue Fund. The
4175	balance of all moneys so collected shall mustbe transferred to
4176	the Police and Firefighters' Premium Tax Trust Fund and shall be
4177	separately accounted for by the division. The moneys budgeted as
4178	necessary to pay the expenses of the division for the daily
4179	oversight and monitoring of the firefighters' pension plans
4180	under this chapter and for the oversight and actuarial reviews
4181	conducted under part VII of chapter 112 are annually
4182	appropriated from the interest and investment income earned on
4183	the moneys collected for each municipality or special fire
4184	control district and deposited in the Police and Firefighters'
4185	Premium Tax Trust Fund. Interest and investment income remaining
4186	thereafter in the trust fund which is unexpended and otherwise
4187	unallocated by law shall be transferred revertto the General
4188	Revenue Fund on June 30 of each year.
4189	Section 66. Section 175.1215, Florida Statutes, is amended
4190	to read:
4191	175.1215 Police and Firefighters' Premium Tax Trust
4192	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
4193	created in the State Treasury, to be administered by the
4194	Division of Retirement of the Department of Management Services.
4195	Funds credited to the trust fund, as provided in chapter 95-250,
4196	Laws of Florida, or similar legislation, shall be expended for
4197	the purposes set forth in that legislation.
4198	Section 67. Subsection (1) of section 175.341, Florida
4199	Statutes, is amended to read:
4200	175.341 Duties of Division of Retirement; rulemaking
4201	authority; investments by State Board of Administration.--
4202	(1) The division shall be responsible for the daily
4203	oversight and monitoring for actuarial soundness of the
4204	firefighters' pension plans, whether chapter or local law plans,
4205	established under this chapter, for receiving and holding the
4206	premium tax moneys collected under this chapter, and, upon
4207	determining compliance with the provisions of this chapter, for
4208	disbursing those moneys to the firefighters' pension plans. The
4209	funds necessary to pay expenses for such administration are
4210	shall beannually appropriated from the interest and investment
4211	income earned on moneys deposited in the trust fund.
4212	Section 68. Subsection (7) of section 185.02, Florida
4213	Statutes, is amended to read:
4214	185.02 Definitions.--For any municipality, chapter plan,
4215	local law municipality, or local law plan under this chapter,
4216	the following words and phrases as used in this chapter shall
4217	have the following meanings, unless a different meaning is
4218	plainly required by the context:
4219	(7) "Division" means the Division of Retirement of the
4220	State Board of Administration Department of Management Services.
4221	Section 69. Subsection (1) of section 185.10, Florida
4222	Statutes, is amended to read:
4223	185.10 Department of Revenue and Division of Retirement to
4224	keep accounts of deposits; disbursements.--For any municipality
4225	having a chapter plan or local law plan under this chapter:
4226	(1) The Department of Revenue shall keep a separate
4227	account of all moneys collected for each municipality under the
4228	provisions of this chapter. Seven and three-tenths percent of
4229	all moneys so collected shall be transferred to the General
4230	Revenue Fund. The balance of all moneys so collected shall must
4231	be transferred to the Police and Firefighters' Premium Tax Trust
4232	Fund and shall be separately accounted for by the division. The
4233	moneys budgeted as necessary to pay the expenses of the division
4234	for the daily oversight and monitoring of the police officers'
4235	retirement plans under this chapter and for the oversight and
4236	actuarial reviews conducted under part VII of chapter 112 are
4237	annually appropriated from the interest and investment income
4238	earned on the moneys collected for each municipality or special
4239	fire control district and deposited in the Police and
4240	Firefighters' Premium Tax Trust Fund. Interest and investment
4241	income remaining thereafter in the trust fund which is
4242	unexpended and otherwise unallocated by law shall be transferred
4243	revertto the General Revenue Fund on June 30 of each year.
4244	Section 70. Section 185.105, Florida Statutes, is amended
4245	to read:
4246	185.105 Police and Firefighters' Premium Tax Trust
4247	Fund.--The Police and Firefighters' Premium Tax Trust Fund is
4248	created in the State Treasury, to be administered by the
4249	Division of Retirement of the Department of Management Services.
4250	Funds credited to the trust fund, as provided in chapter 95-250,
4251	Laws of Florida, or similar legislation, shall be expended for
4252	the purposes set forth in that legislation.
4253	Section 71. Subsection (1) of section 185.23, Florida
4254	Statutes, is amended to read:
4255	185.23 Duties of Division of Retirement; rulemaking
4256	authority; investments by State Board of Administration.--
4257	(1) The division shall be responsible for the daily
4258	oversight and monitoring for actuarial soundness of the
4259	municipal police officers' retirement plans, whether chapter or
4260	local law plans, established under this chapter, for receiving
4261	and holding the premium tax moneys collected under this chapter,
4262	and, upon determining compliance with the provisions of this
4263	chapter, for disbursing those moneys to the municipal police
4264	officers' retirement plans. The funds to pay the expenses for
4265	such administration are shall be annuallyappropriated from the
4266	interest and investment income earned on moneys deposited in the
4267	trust fund.
4268	Section 72. Paragraph (o) of subsection (4) of section
4269	215.20, Florida Statutes, is amended to read:
4270	215.20 Certain income and certain trust funds to
4271	contribute to the General Revenue Fund.--
4272	(4) The income of a revenue nature deposited in the
4273	following described trust funds, by whatever name designated, is
4274	that from which the appropriations authorized by subsection (3)
4275	shall be made:
4276	(o) Within the Department of Management Services:
4277	1. The Administrative Trust Fund.
4278	2. The Architects Incidental Trust Fund.
4279	3. The Bureau of Aircraft Trust Fund.
4280	4. The Florida Facilities Pool Working Capital Trust Fund.
4281	5. The Grants and Donations Trust Fund.
4282	6. The Motor Vehicle Operating Trust Fund.
4283	7. The Police and Firefighters' Premium Tax Trust Fund.
4284	7.8.The Public Employees Relations Commission Trust Fund.
4285	8.9.The State Personnel System Trust Fund.
4286	9.10.The Supervision Trust Fund.
4287	10.11.The Working Capital Trust Fund.
4288
4289	The enumeration of the foregoing moneys or trust funds shall not
4290	prohibit the applicability thereto of s. 215.24 should the
4291	Governor determine that for the reasons mentioned in s. 215.24
4292	the money or trust funds should be exempt herefrom, as it is the
4293	purpose of this law to exempt income from its force and effect
4294	when, by the operation of this law, federal matching funds or
4295	contributions or private grants to any trust fund would be lost
4296	to the state.
4297	Section 73. Subsection (3) of section 215.28, Florida
4298	Statutes, is amended to read:
4299	215.28 United States securities, purchase by state and
4300	county officers and employees; deductions from salary.--
4301	(3) All deductions so made by any such disbursing
4302	authority shall be deposited in a trust account separate and
4303	apart from the funds of the state, county, or subordinate
4304	agency. Such trust account shall be created in the State
4305	Treasury and shall be administered by the State Board of
4306	Administration.Such account will be subject to withdrawal only
4307	for the purchase of United States securities on behalf of
4308	officers and employees, or for refunds to such persons in
4309	accordance with the provisions of this law. Whenever the sum of
4310	$18.75 or the purchase price of the security requested to be
4311	purchased is accumulated from deductions so made from the
4312	salaries or wages of an officer or employee, such disbursing
4313	agent shall arrange the purchase of the bond or security applied
4314	for and have it registered in the name or names requested in the
4315	deduction authorization. Securities so purchased will be
4316	delivered in such manner as may be convenient for the issuing
4317	agent and the purchaser. Any interest earned on moneys in such
4318	account while awaiting the accumulation of the purchase price of
4319	the security shall be transferred to the Florida Retirement
4320	System Trust Fund as reimbursement for administrative costs
4321	incurred by the Division of Retirement of the State Board of
4322	Administration Department of Management Servicesunder this
4323	section.
4324	Section 74. Subsection (7) of section 215.44, Florida
4325	Statutes, is amended to read:
4326	215.44 Board of Administration; powers and duties in
4327	relation to investment of trust funds.--
4328	(7) Investment and debt purchasing procedures and
4329	contracts of funds held in trust by the State Board of
4330	Administration, whether directly or incidentally related to the
4331	investment or debt transactions, and purchases of commodities or
4332	services related to the administration of pension benefitsare
4333	exempt from the provisions of chapter 287.
4334	Section 75. Subsection (3) of section 215.50, Florida
4335	Statutes, is amended to read:
4336	215.50 Custody of securities purchased; income.--
4337	(3) The Chief Financial Officer, as custodian of
4338	securities owned by the Florida Retirement System Trust Fund and
4339	the Florida Survivor Benefit Trust Fund, shall collect the
4340	interest, dividends, prepayments, maturities, proceeds from
4341	sales, and other income accruing from such assets. As such
4342	income is collected by the Chief Financial Officer, it shall be
4343	deposited directly into a commercial bank to the credit of the
4344	State Board of Administration. Such bank accounts as may be
4345	required for this purpose shall offer satisfactory collateral
4346	security as provided by chapter 280. In the event funds so
4347	deposited according to the provisions of this section are
4348	required for the purpose of paying benefits or other operational
4349	needs, the State Board of Administration shall remit to the
4350	Florida Retirement System Trust Fund in the State Treasury such
4351	amounts as are required may be requested by the Department of
4352	Management Services.
4353	Section 76. Section 215.52, Florida Statutes, is amended
4354	to read:
4355	215.52 Rules and regulations.--The board may adopt shall
4356	have the power and authority to make reasonable rules and
4357	regulations necessary to implement general law conferring powers
4358	and duties upon it carry out the provisions of ss. 215.44-
4359	215.53.
4360	Section 77. Subsections (2), (3), (11), and (13) of
4361	section 238.01, Florida Statutes, are amended to read:
4362	238.01 Definitions.--The following words and phrases as
4363	used in this chapter shall have the following meanings unless a
4364	different meaning is plainly required by the context:
4365	(2) "Division" means the Division of Retirement of the
4366	State Board of Administration "Department" means the Department
4367	of Management Services.
4368	(3) "Teacher" means any member of the teaching or
4369	professional staff and any certificated employee of any public
4370	free school, of any district school system and vocational
4371	school, any member of the teaching or professional staff of the
4372	Florida School for the Deaf and Blind, child training schools of
4373	the Department of Juvenile Justice, the Department of
4374	Corrections, and any tax-supported institution of higher
4375	learning of the state, and any member and any certified employee
4376	of the Department of Education, any certified employee of the
4377	retirement system, any full-time employee of any nonprofit
4378	professional association or corporation of teachers functioning
4379	in Florida on a statewide basis, which seeks to protect and
4380	improve public school opportunities for children and advance the
4381	professional and welfare status of its members, any person now
4382	serving as superintendent, or who was serving as county
4383	superintendent of public instruction on July 1, 1939, and any
4384	hereafter duly elected or appointed superintendent, who holds a
4385	valid Florida teachers' certificate. In all cases of doubt the
4386	division Department of Management Servicesshall determine
4387	whether any person is a teacher as defined herein.
4388	(11) "Regular interest" means interest at such rate as may
4389	be set from time to time by the division Department of
4390	Management Services.
4391	(13) "Earnable compensation" means the full compensation
4392	payable to a teacher working the full working time for his or
4393	her position. In respect to plans A, B, C, and D only, in cases
4394	where compensation includes maintenance, the division Department
4395	of Management Servicesshall fix the value of that part of the
4396	compensation not paid in money; provided that all members shall
4397	from July 1, 1955, make contributions to the retirement system
4398	on the basis of "earnable compensation" as defined herein and
4399	all persons who are members on July 1, 1955, may, upon
4400	application, have their "earnable compensation" for the time
4401	during which they have been members prior to that date
4402	determined on the basis of "earnable compensation" as defined in
4403	this law, upon paying to the retirement system, on or before the
4404	date of retirement, a sum equal to the additional contribution
4405	with accumulated regular interest thereon they would have made
4406	if "earnable compensation" had been defined, at the time they
4407	became members, as it is now defined. However, earnable
4408	compensation for all plan years beginning on or after July 1,
4409	1990, shall not include any amounts in excess of the
4410	compensation limitation (originally $200,000) established by s.
4411	401(a)(17) of the Internal Revenue Code prior to the Omnibus
4412	Budget Reconciliation Act of 1993, which limitation shall be
4413	adjusted for changes in the cost of living since 1989, in the
4414	manner provided by s. 401(a)(17) of the Internal Revenue Code of
4415	1991. This limitation, which has been part of the Teachers'
4416	Retirement System since plan years beginning on or after July 1,
4417	1990, shall be adjusted as required by federal law for qualified
4418	government plans.
4419	Section 78. Section 238.02, Florida Statutes, is amended
4420	to read:
4421	238.02 Name and date of establishment.--A retirement
4422	system is established and placed under the management of the
4423	division Department of Management Servicesfor the purpose of
4424	providing retirement allowances and other benefits for teachers
4425	of the state. The retirement system shall begin operations on
4426	July 1, 1939. It has such powers and privileges of a
4427	corporation as may be necessary to carry out effectively the
4428	provisions of this chapter and shall be known as the "Teachers'
4429	Retirement System of the State," and by such name all of its
4430	business shall be transacted, all of its funds invested, and all
4431	of its cash and securities and other property held in trust for
4432	the purpose for which received.
4433	Section 79. Section 238.03, Florida Statutes, is amended
4434	to read:
4435	238.03 Administration.--
4436	(1) The general administration and the responsibility for
4437	the proper operation of the retirement system and for making
4438	effective the provisions of this chapter are vested in the
4439	division Department of Management Services. Subject to the
4440	limitation of this chapter, the division departmentshall, from
4441	time to time, establish rules and regulations for the
4442	administration and transaction of the business of the retirement
4443	system and shall perform such other functions as are required
4444	for the execution of this chapter.
4445	(2) The division departmentshall keep in convenient form
4446	such data as shall be necessary for actuarial valuation of the
4447	various funds created by this chapter and for checking the
4448	experience of the retirement system.
4449	(3) The Department of Legal Affairs, at the option of the
4450	State Board of Administration, shall be the legal adviser of the
4451	division department.
4452	(4) The division departmentshall employ such agents,
4453	servants and employees as in its judgment may be necessary to
4454	carry out the terms and provisions of this chapter and shall
4455	provide for their compensation. Among the employees of the
4456	division departmentshall be an actuary who shall be the
4457	technical adviser of the division departmenton matters
4458	regarding the operation of the funds created by the provisions
4459	of this chapter and who shall perform such other duties as are
4460	required in connection therewith.
4461	(5) In the year 1943 and at least once in each 5-year
4462	period thereafter, the actuary shall make an actuarial
4463	investigation of the mortality, service and salary experience of
4464	the members and beneficiaries as defined in this chapter, and
4465	shall make a valuation of the various funds created by the
4466	chapter, and having regard to such investigation and valuation,
4467	the division departmentshall adopt such mortality and service
4468	tables as shall be deemed necessary, and shall certify the rates
4469	of contribution payable under the provisions of this chapter.
4470	(6) The actuary shall make an annual valuation of the
4471	assets and liabilities of the funds of the retirement system on
4472	the basis of the tables adopted by the division departmentin
4473	accordance with the requirements of this section, and shall
4474	prepare an annual statement of the amounts to be contributed by
4475	the state in accordance with s. 238.09.
4476	(7) The division departmentshall publish annually the
4477	valuation, as certified by the actuary, of the assets and
4478	liabilities of the various funds created by this chapter, a
4479	statement as to the receipts and disbursements of the funds, and
4480	a statement as to the accumulated cash and securities of the
4481	funds.
4482	(8) The division departmentshall keep a record of all of
4483	its proceedings and such record shall be open to inspection by
4484	the public.
4485	(9) The division departmentis authorized to photograph
4486	and reduce to microfilm as a permanent record, its ledger sheets
4487	showing the salary and contributions of members of the
4488	retirement system, also the records of deceased members of the
4489	system and thereupon to destroy the documents from which such
4490	films are photographed.
4491	Section 80. Paragraph (b) of subsection (1), paragraphs
4492	(a) and (b) of subsection (3), and subsection (4) of section
4493	238.05, Florida Statutes, are amended to read:
4494	238.05 Membership.--
4495	(1) The membership of the retirement system shall consist
4496	of the following:
4497	(b) All persons who became or who become teachers on or
4498	after July 1, 1939, except as provided in paragraph (a) and
4499	subsection (5) hereof, shall become members of the retirement
4500	system by virtue of their appointment as teachers. However,
4501	employees who are not members of the teaching or professional
4502	staff shall only become members of the retirement system by
4503	filing a notice with the division departmentof their election
4504	to become members.
4505	(3) Except as otherwise provided in s. 238.07(9),
4506	membership of any person in the retirement system will cease if
4507	he or she is continuously unemployed as a teacher for a period
4508	of more than 5 consecutive years, or upon the withdrawal by the
4509	member of his or her accumulated contributions as provided in s.
4510	238.07(13), or upon retirement, or upon death; provided that the
4511	adjustments prescribed below are to be made for persons who
4512	enter the Armed Forces of the United States during a period of
4513	war or national emergency and for persons who are granted leaves
4514	of absence. Any member of the retirement system who within 1
4515	year before the time of entering the Armed Forces of the United
4516	States was a teacher, as defined in s. 238.01, or was engaged in
4517	other public educational work within the state, and member of
4518	the Teachers' Retirement System at the time of induction, or who
4519	has been or is granted leave of absence, shall be permitted to
4520	elect to continue his or her membership in the Teachers'
4521	Retirement System; and membership service shall be allowed for
4522	the period covered by service in the Armed Forces of the United
4523	States or by leave of absence under the following conditions:
4524	(a) A person who has been granted leave of absence shall
4525	file with the division departmentbefore his or her next
4526	contribution is due an application to continue his or her
4527	membership during the period covered by the person's leave of
4528	absence and, if such application is filed, shall make his or her
4529	contribution to the retirement system on the basis of his or her
4530	last previous annual salary as a teacher, and shall, prior to
4531	retirement, pay in full to the system such contributions with
4532	accumulated regular interest. Such contributions with interest
4533	may be paid at one time or in monthly, quarterly, semiannual, or
4534	annual payments in the person's discretion.
4535	(b) A person who enters or who has entered the Armed
4536	Forces of the United States may either continue his or her
4537	membership according to the plan outlined under paragraph (a)
4538	or, in lieu thereof, may file with the division departmentat
4539	any time following the close of his or her military service an
4540	application that his or her membership be continued and that
4541	membership service be allowed for not more than 5 years of his
4542	or her period of service in the Armed Forces of the United
4543	States during any period of war or national emergency; provided
4544	that any such person shall, prior to retirement, pay in full his
4545	or her contributions with accumulated regular interest to the
4546	retirement system for the period for which he or she is entitled
4547	to membership service on the basis of his or her last previous
4548	annual salary as a teacher. Such contributions with interest
4549	may be paid to the division departmentat one time or in
4550	monthly, quarterly, semiannual, or annual payments in the
4551	person's discretion.
4552	(4) The division departmentmay in its discretion deny the
4553	right to become members to any class of teachers who are serving
4554	on a temporary or any other than a per annum basis, and it may
4555	also in its discretion make optional with members in any such
4556	class their individual entrance into membership.
4557	Section 81. Subsections (3), (10), (12), (13), (15A), and
4558	(16) of section 238.07, Florida Statutes, are amended to read:
4559	238.07 Regular benefits; survivor benefits.--
4560	(3) Any member who, prior to July 1, 1955, elected to
4561	retire under one of plans A, B, C, or D may elect, prior to
4562	retirement, to retire under plan E in accordance with the terms
4563	hereof. Any person who became a member on or after July 1,
4564	1955, shall retire under plan E, except as provided for under s.
4565	238.31. With respect to plans A, B, C, or D, any member shall
4566	have the right at any time to change to a plan of retirement
4567	requiring a lower rate of contribution. The division Department
4568	of Management Servicesshall also notify the member of the rate
4569	of contribution such member must make from and after selecting
4570	such plan of retirement. Any member in service may retire upon
4571	reaching the age of retirement formerly selected by him or her,
4572	upon the member's written application to the division department
4573	setting forth at which time, not more than 90 days subsequent to
4574	the execution and filing of such application, it is his or her
4575	desire to retire notwithstanding that during such period of
4576	notification he or she may have separated from service. Upon
4577	receipt of such application for retirement, the division
4578	departmentshall retire such member not more than 90 days
4579	thereafter. Before such member may retire he or she must file
4580	with the division departmenthis or her written selection of one
4581	of the optional benefits provided in s. 238.08.
4582	(10) Any member in service, who has 10 or more years of
4583	creditable service, may upon the application of his or her
4584	employer or upon his or her own application, be retired by the
4585	division departmentnot less than 30 nor more than 90 days next
4586	following the date of filing such application, on a disability
4587	retirement allowance; provided that a physician licensed by this
4588	state examines and certifies that such member is mentally or
4589	physically incapacitated for the further performance of duty,
4590	that such incapacity is likely to be permanent, and that such
4591	member should be retired, and the division departmentconcurs.
4592	In making the determination, the division departmentmay require
4593	other evidence of disability as deemed appropriate.
4594	(12)(a) Once each year during the first 5 years following
4595	the retirement of a member on a disability retirement allowance,
4596	and once in every 3-year period thereafter, the division
4597	departmentmay require any disability beneficiary who has not
4598	yet attained his or her minimum service retirement age to
4599	undergo a medical examination by a physician licensed by this
4600	state and to submit any other evidence of disability as required
4601	by the division department. Should a disability beneficiary who
4602	has not yet attained his or her minimum service retirement age
4603	refuse to submit to any such medical examination, his or her
4604	retirement allowance shall be discontinued until his or her
4605	withdrawal of such refusal, and should such refusal continue for
4606	1 year, all of the disability beneficiary's rights in and to his
4607	or her pension shall be forfeited.
4608	(b) If the division departmentfinds that a disability
4609	beneficiary is engaged in or is able to engage in a gainful
4610	occupation paying more than the difference between his or her
4611	disability retirement allowance and his or her average final
4612	compensation, the amount of the beneficiary's pension shall be
4613	reduced to an amount which, together with his or her annuity and
4614	the amount earnable by him or her, shall equal the amount of his
4615	or her average final compensation. Should the beneficiary's
4616	earning capacity later be changed, the amount of his or her
4617	pension may be further modified; provided that the pension so
4618	modified shall not exceed the amount of the pension allowable
4619	under subsection (11), at the time of retirement, nor an amount
4620	which, when added to the amount earnable by the beneficiary,
4621	together with his or her annuity, equals the amount of his or
4622	her average final compensation. A beneficiary restored to
4623	active service at a salary less than the average final
4624	compensation upon the basis of which he or she was retired shall
4625	not become a member of the retirement system at that time.
4626	(c) Should a disability beneficiary under his or her
4627	minimum service retirement age be at any time in service at a
4628	salary equal to or greater than his or her average final
4629	compensation upon the basis of which he or she was retired, the
4630	beneficiary's disability retirement allowance shall cease and he
4631	or she shall again become a member of the retirement system and
4632	shall contribute thereafter at the same rate at which he or she
4633	paid prior to disability. Any prior service certificate, on the
4634	basis of which his or her allowance was computed at the time of
4635	his or her disability retirement, shall be restored to full
4636	force and effect; and, in addition, upon his or her subsequent
4637	retirement he or she shall be credited with all his or her
4638	membership service on the basis of which his or her allowance
4639	was computed at the time of his or her disability retirement.
4640	(13) Should a member cease to be a teacher except by death
4641	or by retirement under the provisions of this chapter, the
4642	member shall be paid the amount of his or her accumulated
4643	contributions. Should a member die before retirement, the
4644	amount of his or her accumulated contributions shall be paid to
4645	such person, if any, as he or she shall have nominated by
4646	written designation duly executed and filed with the division
4647	department; otherwise, to his or her executors or
4648	administrators.
4649	(15A)(a) Any member of the Teachers' Retirement System who
4650	has heretofore, or who hereafter, retires with no less than 10
4651	years of creditable service and who has passed his or her 65th
4652	birthday, may, upon application to the division department, have
4653	his or her retirement allowance redetermined and thereupon shall
4654	be entitled to a monthly service retirement allowance which
4655	shall be equal to $4 multiplied by the number of years of the
4656	member's creditable service which shall be payable monthly
4657	during his or her retirement; provided, that the amount of
4658	retirement allowance as determined hereunder, shall be reduced
4659	by an amount equal to:
4660	1. Any social security benefits received by the member,
4661	and
4662	2. Any social security benefits that the member is
4663	eligible to receive by reason of his or her own right or through
4664	his or her spouse.
4665	(b) No payment shall be made to a member of the Teachers'
4666	Retirement System under this act, until the division department
4667	has determined the social security status of such member.
4668	(c) Eligibility of a member of the Teachers' Retirement
4669	System shall be determined under the social security laws and
4670	regulations; provided, however, that a member shall be
4671	considered eligible if the member or the member's spouse has
4672	reached 65 years of age and would draw social security if the
4673	member or the member's spouse were not engaged in activity that
4674	results in the member or the member's spouse receiving income
4675	that would make him or her ineligible to receive social security
4676	benefits. A member of the Teachers' Retirement System shall be
4677	deemed to be eligible for social security benefits if the member
4678	has this eligibility in his or her own right or through his or
4679	her spouse.
4680	(d) The division departmentshall review, at least
4681	annually, the social security status of all members of the
4682	Teachers' Retirement System receiving payment under this act and
4683	shall increase or decrease payments to such members as shall be
4684	necessary to carry out the intent of this act.
4685	(e) No member of the Teachers' Retirement System shall
4686	have his or her retirement allowance reduced or any of his or
4687	her rights impaired by reason of this act.
4688	(f) This subsection shall take effect on January 1, 1962.
4689	(16)(a) Definitions under survivor benefits are:
4690	1. A dependent is a child, widow, widower, or parent of
4691	the deceased member who was receiving not less than one-half of
4692	his or her support from the deceased member at the time of the
4693	death of such member.
4694	2. A child is a natural or legally adopted child of a
4695	member, who:
4696	a. Is under 18 years of age, or
4697	b. Is over 18 years of age but not over 22 years of age
4698	and is enrolled as a student in an accredited educational
4699	institution, or
4700	c. Is 18 years of age or older and is physically or
4701	mentally incapable of self-support, when such mental and
4702	physical incapacity occurred prior to such child obtaining the
4703	age of 18 years. Such person shall cease to be regarded as a
4704	child upon the termination of such physical or mental
4705	disability. The determination as to such physical or mental
4706	incapability shall be vested in the division department.
4707
4708	No person shall be considered a child who has married or, except
4709	as provided in sub-subparagraph 2.b. or as to a child who is
4710	physically or mentally incapable of self-support as hereinbefore
4711	set forth, has become 18 years of age.
4712	3. A parent is a natural parent of a member and includes a
4713	lawful spouse of a natural parent.
4714	4. A beneficiary is a person who is entitled to benefits
4715	under this subsection by reason of his or her relation to a
4716	deceased member during the lifetime of such member.
4717	(b) In addition to all other benefits to which a member
4718	shall, subject to the conditions set out below, be entitled, the
4719	beneficiary of such member shall, upon the death of such member,
4720	receive the following benefits:
4721
4722	Minimum period of paid service of member in Florida as regular full-time teacher Beneficiaries of deceased member Benefits
4723
4724	1. One calendar day Widow or widower who has care of dependent child or children of deceased member. $190 per month for one child. $250 per month if more than one child, maximum benefits $250 per month.
4725
4726	2. One calendar day One or more dependent children if there is no surviving widow or widower. $190 per month per child; maximum benefits $250 per month if more than one child.
4727
4728	3. One calendar day Dependent parents 65 years or older. For each parent, $100 per month for life.
4729
4730	4. One calendar day Designated beneficiary and, if no designated beneficiary, then the executor or administrator of deceased member. $500 lump-sum death benefits payable only once.
4731
4732	5. One calendar day Dependent widow or widower 50 years of age and less than 65 years of age. $150 per month for life.
4733
4734	6. Ten years Widow or widower 65 years of age or older. $175 per month for life.
4735
4736	7. Retired member Designated beneficiary and if no designated beneficiary, then the executor or administrator of deceased retired member. $500 lump-sum death benefits payable only once.
4737	Beginning on July 1, 1971, the lump-sum death benefit, provided
4738	in item 7 above for the retired teacher, shall apply to all
4739	present and future retirees of the systems.
4740	(c) The payment of survivor benefits shall begin as of the
4741	month immediately following the death of the member except where
4742	the beneficiary has not reached the age required to receive
4743	benefits under paragraph (b), in which event the payment of
4744	survivor benefits shall begin as of the month immediately
4745	following the month in which the beneficiary reaches the
4746	required age. Provided that if death occurs during the first 3
4747	years of employment, the payment of survivor benefits shall be
4748	reduced by the amount of monthly benefits the member's survivors
4749	are entitled to receive under federal social security as either
4750	a survivor of the member or as a covered worker under federal
4751	social security.
4752	(d) Limitations on rights of beneficiary are:
4753	1. The person named as beneficiary in paragraph (b) shall,
4754	in no event, be entitled to receive the benefits set out in such
4755	paragraph unless the death of the member under whom such
4756	beneficiary claims occurs within the period of time after the
4757	member has served in Florida as follows:
4758
4759	Minimum number of years Period after serving in
4760	of service in Florida Florida in which death
4761	of member occurs
4762
4763	3 to 5.... 2 years
4764	6 to 9.... 5 years
4765	10 or more.... 10 years
4766
4767	2. Upon the death of a member, the division department
4768	shall make a determination of the beneficiary or beneficiaries
4769	of the deceased member and shall pay survivor benefits to such
4770	beneficiary or beneficiaries beginning 1 month immediately
4771	following the death of the member except where the beneficiary
4772	has not reached the age required to receive benefits under
4773	paragraph (b), in which event the payment of survivor benefits
4774	shall begin as of the month immediately following the month in
4775	which the beneficiary reaches the required age. When required
4776	by the division department, the beneficiary or beneficiaries
4777	shall file an application for survivor benefits upon forms
4778	prescribed by the division department.
4779	3. The beneficiaries of a member to receive survivor
4780	benefits are fixed by this subsection, and a member may not buy
4781	or otherwise change such benefits. He or she may, however,
4782	designate the beneficiary to receive the $500 death benefits.
4783	If a member fails to make this designation, the $500 death
4784	benefits shall be paid to his or her executor or administrator.
4785	4. The beneficiary or beneficiaries of a member whose
4786	death occurs while he or she is in service or while he or she is
4787	receiving a disability allowance under subsection (11), shall
4788	receive survivor benefits under this subsection determined by
4789	the years of service in Florida of the deceased member as set
4790	out in paragraph (b). The requirement that the death of a
4791	member must occur within a certain period of time after service
4792	in Florida as set out in subparagraph (d)1. shall not apply to a
4793	member receiving a disability benefit at the time of his or her
4794	death.
4795	Section 82. Subsection (2), paragraph (b) of subsection
4796	(5), and subsections (6) and (7) of section 238.08, Florida
4797	Statutes, are amended to read:
4798	238.08 Optional benefits.--A member may elect to receive
4799	his or her benefits under the terms of this chapter according to
4800	the provisions of any one of the following options:
4801	(2) Option two. A member may elect to receive on
4802	retirement the actuarial equivalent (at that time) of his or her
4803	retirement allowance in a reduced retirement allowance payable
4804	throughout life, with the provisions that if the member dies
4805	before he or she has received in payment of his or her annuity
4806	the amount of his or her accumulated contributions, as they were
4807	at the time of his or her retirement, the balance shall be paid
4808	to such person, if any, as he or she shall nominate by written
4809	designation duly acknowledged and filed with the division
4810	department; otherwise, to his or her executors or
4811	administrators.
4812	(5)
4813	(b) A member who elects Option three or Option four shall,
4814	on a form provided for that purpose, designate his or her spouse
4815	as beneficiary to receive the benefits which continue to be
4816	payable upon the death of the member. After such benefits have
4817	commenced under Option three or Option four, the retired member
4818	may change the designation of his or her spouse as beneficiary
4819	only twice. If such a retired member remarries and wishes to
4820	make such a change, he or she may do so by filing with the
4821	division departmenta notarized change of spouse designation
4822	form and shall notify the former spouse in writing of such
4823	change. Upon receipt of a completed change of spouse
4824	designation form, the division departmentshall adjust the
4825	member's monthly benefit by the application of actuarial tables
4826	and calculations developed to ensure that the benefit paid is
4827	the actuarial equivalent of the present value of the member's
4828	current benefit. The consent of a retired member's formerly
4829	designated spouse as beneficiary to any such change shall not be
4830	required.
4831	(6) Notwithstanding any provision in this chapter to the
4832	contrary, the following provisions shall apply to any member of
4833	the retirement system who has accumulated at least 10 years of
4834	service and dies prior to retirement:
4835	(a) If the deceased member's surviving spouse has
4836	previously received a refund of the member's accumulated
4837	contributions made to the retirement system, such spouse may pay
4838	to the division departmentan amount equal to the sum of the
4839	amount of the deceased member's contributions previously
4840	refunded and regular interest compounded annually on the amount
4841	of such refunded contributions from the date of refund to the
4842	date of payment to the division department, and by so doing be
4843	entitled to receive the monthly retirement benefit provided in
4844	paragraph (c).
4845	(b) If the deceased member's surviving spouse has not
4846	received a refund of the deceased member's accumulated
4847	contributions, such spouse shall, upon application to the
4848	division departmentwithin 30 days of the death of the member,
4849	receive the monthly retirement benefit provided in paragraph
4850	(c).
4851	(c) The monthly benefit payable to the spouse described in
4852	paragraph (a) or paragraph (b) shall be the amount which would
4853	have been payable to the deceased member's spouse, assuming that
4854	the member retired on the date of his or her death and had
4855	selected the option in subsection (3), such benefit to be based
4856	on the ages of the spouse and member as of the date of death of
4857	the member. The benefit shall commence on the first day of the
4858	month following the payment of the aforesaid amount to the
4859	division department, if paragraph (a) is applicable, or on the
4860	first day of the month following the receipt of the spouse's
4861	application by the division department, if paragraph (b) is
4862	applicable.
4863	(7) The surviving spouse or other dependent of any member
4864	whose employment is terminated by death shall, upon application
4865	to the division department, be permitted to pay the required
4866	contributions for any service performed by the member which
4867	could have been claimed by the member at the time of his or her
4868	death. Such service shall be added to the creditable service of
4869	the member and shall be used in the calculation of any benefits
4870	which may be payable to the surviving spouse or other surviving
4871	dependent.
4872	Section 83. Paragraphs (a), (c), and (d) of subsection
4873	(1), paragraphs (b) and (c) of subsection (3), subsection (4),
4874	and paragraph (b) of subsection (5) of section 238.09, Florida
4875	Statutes, are amended to read:
4876	238.09 Method of financing.--All of the assets of the
4877	retirement system shall be credited, according to the purposes
4878	for which they are held, to one of four funds; namely, the
4879	Annuity Savings Trust Fund, the Pension Accumulation Trust Fund,
4880	the Expense Trust Fund, and the Survivors' Benefit Trust Fund.
4881	(1) The Annuity Savings Trust Fund shall be a fund in
4882	which shall be accumulated contributions made from the salaries
4883	of members under the provisions of paragraph (c) or paragraph
4884	(f). Contribution to, payments from, the Annuity Savings Trust
4885	Fund shall be made as follows:
4886	(a) With respect to plan A, B, C, or D, upon the basis of
4887	such tables as the division Department of Management Services
4888	shall adopt, and regular interest, the actuary of the retirement
4889	system shall determine for each member the proportion of
4890	earnable compensation which, when deducted from each payment of
4891	his or her prospective earnable annual compensation prior to his
4892	or her minimum service retirement age, and accumulated at
4893	regular interest until such age, shall be computed to provide at
4894	such age:
4895	1. An annuity equal to one one-hundred-fortieth of his or
4896	her average final compensation multiplied by the number of his
4897	or her years of membership in the case of each member electing
4898	to retire under the provisions of plan A or B.
4899	2. An annuity equal to one one-hundred-twentieth of his or
4900	her average final compensation multiplied by the number of his
4901	or her years of membership service in the case of each member
4902	electing to retire under the provisions of plan C.
4903	3. An annuity equal to one one-hundredth of his or her
4904	average final compensation multiplied by the number of his or
4905	her years of membership service in the case of each member
4906	electing to retire under the provisions of plan D.
4907
4908	In the case of any member who has attained his or her minimum
4909	service retirement age prior to becoming a member, the
4910	proportion of salary applicable to such member, with respect to
4911	plan A, B, C, or D, shall be the proportion computed for the age
4912	1 year younger than his or her minimum service retirement age.
4913	(c) The division departmentshall certify to each employer
4914	the proportion of the earnable compensation of each member who
4915	is compensated by the employer, and the employer shall cause to
4916	be deducted from the salary of each member on each and every
4917	payroll for each and every payroll period an amount equal to the
4918	proportion of the member's earnable compensation so computed.
4919	With respect to plan A, B, C, or D, the employer shall not make
4920	any deduction for annuity purposes from the compensation of a
4921	member who has attained the age of 60 years, if such member
4922	elects not to contribute.
4923	(d) In determining the amount earnable by a member in a
4924	payroll period, the division departmentmay consider the rate of
4925	compensation payable to such member on the first day of the
4926	payroll period as continuing throughout such payroll period, and
4927	it may omit deductions from compensation for any period less
4928	than a full payroll period if a teacher was not a member on the
4929	first day of the payroll period, and to facilitate the making of
4930	deductions, it may modify any deduction required of any member
4931	by such an amount as shall not exceed one-tenth of 1 percent of
4932	the annual salary from which said deduction is to be made.
4933	(3) The Pension Accumulation Trust Fund shall be the fund
4934	in which shall be accumulated all reserves for the payment of
4935	all annuities or benefits in lieu of annuities on retired
4936	members and all pensions and other benefits payable from
4937	contributions made by the members and by the employers, from
4938	which annuities, pensions and benefits in lieu thereof shall be
4939	paid. Contributions to, and payments from, the Pension
4940	Accumulation Trust Fund, other than as set forth in subsections
4941	(2) and (3) herein, shall be made as follows:
4942	(b) On the basis of regular interest and of such mortality
4943	and other tables as shall be adopted by the division department,
4944	the actuary engaged by the division departmentto make each
4945	valuation required by this chapter shall, during the period over
4946	which the accrued liability contribution is payable, determine,
4947	immediately after making such valuation, the uniform and
4948	constant percentage of the earnable compensation of the average
4949	new entrant, which, if contributed on the basis of his or her
4950	compensation throughout his or her entire period of service,
4951	would be sufficient to provide for the payment of any pension
4952	payable by the state on his or her account. The rate percent so
4953	determined shall be known as the normal contribution rate.
4954	After the accrued liability contribution has ceased to be
4955	payable, the normal contribution rate shall be the rate percent
4956	of the earnable compensation of all members, obtained by
4957	deducting from the total liabilities of the Pension Accumulation
4958	Trust Fund the amount of the funds in hand to the credit of that
4959	fund and dividing the remainder by 1 percent of the present
4960	value of the prospective future salaries of all members as
4961	computed on the basis of the mortality and service tables
4962	adopted by the division departmentand on the basis of regular
4963	interest. The normal rate of contribution shall be determined
4964	and certified to the division departmentby the actuary after
4965	each valuation and shall continue in force until a new valuation
4966	and certification are made.
4967	(c) Immediately succeeding the first valuation, the
4968	actuary engaged by the division departmentshall compute the
4969	rate percent of the total earnable compensation of all members
4970	which is equivalent to 4 percent of the amount of the total
4971	liability for pensions on account of all members and
4972	beneficiaries and not dischargeable by the present assets of the
4973	Pension Accumulation Trust Fund and by the aforesaid normal
4974	contribution if made on account of such members during the
4975	remainder of their active service. The rate percent, originally
4976	so determined, shall be known as the accrued liability
4977	contribution rate.
4978	(4) The Expense Trust Fund shall be the fund to which
4979	shall be credited all moneys contributed for the administrative
4980	expenses of the retirement system and from which shall be paid
4981	all expenses incurred in connection with the administration and
4982	operation of the retirement system. Contribution to the Expense
4983	Trust Fund shall be made by transfer from interest earnings on
4984	investments in the Annuity Savings Trust Fund. Such transfers
4985	shall be approved by the State Board of Administration in
4986	accordance with s. 215.44(4) regulated by the Legislature
4987	pursuant to budgets filed in accordance with the provisions of
4988	chapter 216.
4989	(5)
4990	(b) The division departmentshall annually certify to each
4991	employer, at the time it makes the certification to the employer
4992	under paragraph (1)(c), the rate of twenty-five-hundredths
4993	percent to be applied by the employer to the salary of each
4994	member who is compensated by the employer, and the employer
4995	shall cause to be deducted from the salary of each member on
4996	each and every payroll for each and every payroll period an
4997	amount equal to twenty-five-hundredths percent of the member's
4998	salary paid by the employer and the employer shall remit monthly
4999	such deducted amounts to the division departmentwhich shall
5000	place the same in the Survivors' Benefit Trust Fund of the
5001	Teachers' Retirement System of the state. The amount of
5002	contributions by a member to the Survivors' Benefit Trust Fund
5003	shall, in no event, be refundable to the member or his or her
5004	beneficiaries.
5005	Section 84. Section 238.10, Florida Statutes, is amended
5006	to read:
5007	238.10 Management of funds.--The division Department of
5008	Management Services, annually, shall allow regular interest on
5009	the amount for the preceding year to the credit of each of the
5010	funds of the retirement system, and to the credit of the
5011	individual account therein, if any, with the exception of the
5012	expense fund, from the interest and dividends earned from
5013	investments.
5014	Section 85. Paragraph (b) of subsection (1) and
5015	subsections (2) and (3) of section 238.11, Florida Statutes, are
5016	amended to read:
5017	238.11 Collection of contributions.--
5018	(1) The collection of contributions shall be as follows:
5019	(b) Each employer shall transmit monthly to the division
5020	Department of Management Servicesa warrant for the total amount
5021	of such deductions. Each employer shall also transmit monthly to
5022	the division departmenta warrant for such employer contribution
5023	set aside as provided for in paragraph (a) of this subsection.
5024	The division department, after making records of all such
5025	warrants, shall transmit them to the Department of Financial
5026	Services for delivery to the Chief Financial Officer, who shall
5027	collect them.
5028	(2) The collection of the state contribution shall be made
5029	as follows:
5030	(a) The amounts required to be paid by the state into the
5031	Teachers' Retirement System in this chapter shall be provided
5032	therefor in the General Appropriations Act. However, in the
5033	event a sufficient amount is not included in the General
5034	Appropriations Act to meet the full amount needed to pay the
5035	retirement compensation provided for in this chapter, the
5036	additional amount needed for such retirement compensation is
5037	hereby appropriated from the General Revenue Fund as approved by
5038	the division Department of Management Services.
5039	(b) The division Department of Management Servicesshall
5040	certify one-fourth of the amount so ascertained for each year to
5041	the Chief Financial Officer on or before the last day of July,
5042	October, January, and April of each year. The Chief Financial
5043	Officer shall, on or before the first day of August, November,
5044	February, and May of each year, immediately transfer to the
5045	several funds of the retirement system the amounts due.
5046	(3) All collection of contributions of a nonprofit
5047	professional association or corporation of teachers as referred
5048	to in s. 238.01(3) and (5) shall be made by such association or
5049	corporation in the following manner:
5050	(a) On April 1 of each year, the division Department of
5051	Management Servicesshall certify to any such nonprofit
5052	professional association or corporation of teachers the amounts
5053	which will become due and payable during the ensuing fiscal year
5054	to each of the funds of the retirement system to which such
5055	contributions are payable as set forth in this law.
5056	(b) The division Department of Management Servicesshall
5057	certify one-fourth of the amount so ascertained for each year to
5058	the nonprofit professional association or corporation of
5059	teachers on or before the last day of July, October, January,
5060	and April of each year. The nonprofit professional association
5061	or corporation of teachers shall, on or before the first day of
5062	August, November, February, and May of each year, draw its check
5063	payable to the division departmentfor the respective amounts
5064	due the several funds of the retirement system. Upon receipt of
5065	the check, the division departmentshall immediately transfer to
5066	the several funds of the retirement system the amounts due,
5067	provided, however, that the amounts due the several funds of the
5068	retirement system from any such association or corporation for
5069	creditable service accruing to any such member before July 1,
5070	1947, shall be paid prior to the retirement of any such member.
5071	Section 86. Section 238.12, Florida Statutes, is amended
5072	to read:
5073	238.12 Duties of employers.--
5074	(1) Each employer shall keep such records and, from time
5075	to time, shall furnish such information as the division
5076	Department of Management Servicesmay require in the discharge
5077	of its duties. Upon the employment of any teacher to whom this
5078	chapter may apply, the teacher shall be informed by his or her
5079	employer of his or her duties and obligations in connection with
5080	the retirement system as a condition of his or her employment.
5081	Every teacher accepting employment shall be deemed to consent
5082	and agree to any deductions from his or her compensation
5083	required in this chapter and to all other provisions of this
5084	chapter.
5085	(2) During September of each year, or at such other time
5086	as the division departmentshall approve, each employer shall
5087	certify to the division departmentthe names of all teachers to
5088	whom this chapter applies.
5089	(3) Each employer shall, on the first day of each calendar
5090	month, or at such less frequent intervals as the division
5091	department may approve, notify the division departmentof the
5092	employment of new teachers, removals, withdrawals and changes in
5093	salary of members that have occurred during the preceding month,
5094	or the period covered since the last notification.
5095	Section 87. Section 238.14, Florida Statutes, is amended
5096	to read:
5097	238.14 Protection against fraud.--Any person who shall
5098	knowingly make any false statement, or shall falsify or permit
5099	to be falsified any record or records of this retirement system
5100	in any attempt to defraud such system as a result of such act,
5101	shall be guilty of a misdemeanor of the second degree,
5102	punishable as provided in s. 775.082 or s. 775.083. Should any
5103	change or error in records result in any member or beneficiary
5104	receiving from the retirement system more or less than he or she
5105	would have been entitled to receive had the records been
5106	correct, then on discovery of any such error the division
5107	departmentshall correct such error, and, as far as practicable,
5108	shall adjust the payments in such a manner that the actuarial
5109	equivalent of the benefit, to which such member or beneficiary
5110	was correctly entitled, shall be paid.
5111	Section 88. Section 238.15, Florida Statutes, is amended
5112	to read:
5113	238.15 Exemption of funds from taxation, execution, and
5114	assignment.--The pensions, annuities or any other benefits
5115	accrued or accruing to any person under the provisions of this
5116	chapter and the accumulated contributions and cash securities in
5117	the funds created under this chapter are exempted from any
5118	state, county or municipal tax of the state, and shall not be
5119	subject to execution or attachment or to any legal process
5120	whatsoever, and shall be unassignable, except:
5121	(1) That any teacher who has retired shall have the right
5122	and power to authorize in writing the division Department of
5123	Management Servicesto deduct from his or her monthly retirement
5124	allowance money for the payment of the premiums on group
5125	insurance for hospital, medical and surgical benefits, under a
5126	plan or plans for such benefits approved in writing by the Chief
5127	Financial Officer, and upon receipt of such request the division
5128	departmentshall make the monthly payments as directed; and
5129	(2) As may be otherwise specifically provided for in this
5130	chapter.
5131	Section 89. Paragraph (a) of subsection (3) of section
5132	238.171, Florida Statutes, is amended to read:
5133	238.171 Monthly allowance; when made.--
5134	(3)(a) On July 1, 1974, the Department of Management
5135	Services director of the Division of Retirementshall adjust the
5136	monthly allowance provided for incapacitated teachers under this
5137	section by increasing said allowance by a percentage which shall
5138	be equal to the percentage change in the average cost-of-living
5139	index, as defined in chapter 121, over the period between April
5140	1, 1967, and March 31, 1973. The percent of increase, as of July
5141	1, 1974, shall be 25.4 percent, which is the average cost-of-
5142	living increase percentage from April 1, 1967, through March 31,
5143	1973.
5144	Section 90. Subsection (2) of section 238.181, Florida
5145	Statutes, is amended to read:
5146	238.181 Reemployment after retirement; conditions and
5147	limitations.--
5148	(2)(a) Any person retired under this chapter, except under
5149	the disability retirement provisions of s. 238.07, may be
5150	reemployed by any private or public employer after retirement
5151	and receive retirement benefits and compensation from his or her
5152	employer without limitation, except that no person may receive
5153	both a salary from reemployment with any agency participating in
5154	the Florida Retirement System and retirement benefits under this
5155	chapter for a period of 12 months immediately subsequent to the
5156	date of retirement.
5157	(b) Any person to whom the limitation in paragraph (a)
5158	applies who violates such reemployment limitation and who is
5159	reemployed with any agency participating in the Florida
5160	Retirement System before completion of the 12-month limitation
5161	period shall give timely notice of this fact in writing to his
5162	or her employer and to the division Department of Management
5163	Servicesand shall have his or her retirement benefits suspended
5164	for the balance of the 12-month limitation period. Any person
5165	employed in violation of this paragraph and any employing agency
5166	which knowingly employs or appoints such person without
5167	notifying the division departmentto suspend retirement benefits
5168	shall be jointly and severally liable for reimbursement to the
5169	retirement trust fund of any benefits paid during the
5170	reemployment limitation period. To avoid liability, such
5171	employing agency shall have a written statement from the retiree
5172	that he or she is not retired from a state-administered
5173	retirement system. Any retirement benefits received while
5174	reemployed during this reemployment limitation period shall be
5175	repaid to the retirement trust fund, and retirement benefits
5176	shall remain suspended until such repayment has been made.
5177	Benefits suspended beyond the reemployment limitation shall
5178	apply toward repayment of benefits received in violation of the
5179	reemployment limitation.
5180	(c) A district school board may reemploy a retired member
5181	as a substitute or hourly teacher on a noncontractual basis
5182	after he or she has been retired for 1 calendar month, in
5183	accordance with s. 121.021(39). Any retired member who is
5184	reemployed within 1 calendar month after retirement shall void
5185	his or her application for retirement benefits. District school
5186	boards reemploying such teachers are subject to the retirement
5187	contribution required by paragraph (g). Reemployment of a
5188	retired member as a substitute or hourly teacher is limited to
5189	780 hours during the first 12 months of his or her retirement.
5190	Any retired member reemployed for more than 780 hours during his
5191	or her first 12 months of retirement shall give timely notice in
5192	writing to his or her employer and to the division departmentof
5193	the date he or she will exceed the limitation. The division
5194	departmentshall suspend his or her retirement benefits for the
5195	remainder of his or her first 12 months of retirement. Any
5196	person employed in violation of this paragraph and any employing
5197	agency which knowingly employs or appoints such person without
5198	notifying the division departmentto suspend retirement benefits
5199	shall be jointly and severally liable for reimbursement to the
5200	retirement trust fund of any benefits paid during the
5201	reemployment limitation period. To avoid liability, such
5202	employing agency shall have a written statement from the retiree
5203	that he or she is not retired from a state-administered
5204	retirement system. Any retirement benefits received by a
5205	retired member while reemployed in excess of 780 hours during
5206	his or her first 12 months of retirement shall be repaid to the
5207	Retirement System Trust Fund, and his or her retirement benefits
5208	shall remain suspended until repayment is made. Benefits
5209	suspended beyond the end of the retired member's first 12 months
5210	of retirement shall apply toward repayment of benefits received
5211	in violation of the 780-hour reemployment limitation.
5212	(d) A community college board of trustees may reemploy a
5213	retired member as an adjunct instructor, that is, an instructor
5214	who is noncontractual and part time, or as a participant in a
5215	phased retirement program within a community college, after he
5216	or she has been retired for 1 calendar month, in accordance with
5217	s. 121.021(39). Any retired member who is reemployed within 1
5218	calendar month after retirement shall void his or her
5219	application for retirement benefits. Boards of trustees
5220	reemploying such instructors are subject to the retirement
5221	contribution required in paragraph (g). A retired member may be
5222	reemployed as an adjunct instructor for no more than 780 hours
5223	during the first 12 months of his or her retirement. Any
5224	retired member reemployed for more than 780 hours during his or
5225	her first 12 months of retirement shall give timely notice in
5226	writing to his or her employer and to the division departmentof
5227	the date he or she will exceed the limitation. The division
5228	departmentshall suspend his or her retirement benefits for the
5229	remainder of his or her first 12 months of retirement. Any
5230	person employed in violation of this paragraph and any employing
5231	agency which knowingly employs or appoints such person without
5232	notifying the division departmentto suspend retirement benefits
5233	shall be jointly and severally liable for reimbursement to the
5234	retirement trust fund of any benefits paid during the
5235	reemployment limitation period. To avoid liability, such
5236	employing agency shall have a written statement from the retiree
5237	that he or she is not retired from a state-administered
5238	retirement system. Any retirement benefits received by a
5239	retired member while reemployed in excess of 780 hours during
5240	his or her first 12 months of retirement shall be repaid to the
5241	Retirement System Trust Fund, and retirement benefits shall
5242	remain suspended until repayment is made. Benefits suspended
5243	beyond the end of the retired member's first 12 months of
5244	retirement shall apply toward repayment of benefits received in
5245	violation of the 780-hour reemployment limitation.
5246	(e) The Board of Trustees of the Florida School for the
5247	Deaf and the Blind may reemploy a retired member as a substitute
5248	teacher, substitute residential instructor, or substitute nurse
5249	on a noncontractual basis after he or she has been retired for 1
5250	calendar month, in accordance with s. 121.021(39). Any retired
5251	member who is reemployed within 1 calendar month after
5252	retirement shall void his or her application for retirement
5253	benefits. The Board of Trustees of the Florida School for the
5254	Deaf and the Blind reemploying such teachers, residential
5255	instructors, or nurses is subject to the retirement contribution
5256	required by paragraph (g). Reemployment of a retired member as
5257	a substitute teacher, substitute residential instructor, or
5258	substitute nurse is limited to 780 hours during the first 12
5259	months of his or her retirement. Any retired member reemployed
5260	for more than 780 hours during his or her first 12 months of
5261	retirement shall give timely notice in writing to his or her
5262	employer and to the division departmentof the date he or she
5263	will exceed the limitation. The division departmentshall
5264	suspend his or her retirement benefits for the remainder of his
5265	or her first 12 months of retirement. Any person employed in
5266	violation of this paragraph and any employing agency which
5267	knowingly employs or appoints such person without notifying the
5268	division departmentto suspend retirement benefits shall be
5269	jointly and severally liable for reimbursement to the retirement
5270	trust fund of any benefits paid during the reemployment
5271	limitation period. To avoid liability, such employing agency
5272	shall have a written statement from the retiree that he or she
5273	is not retired from a state-administered retirement system. Any
5274	retirement benefits received by a retired member while
5275	reemployed in excess of 780 hours during his or her first 12
5276	months of retirement shall be repaid to the Retirement System
5277	Trust Fund, and his or her retirement benefits shall remain
5278	suspended until payment is made. Benefits suspended beyond the
5279	end of the retired member's first 12 months of retirement shall
5280	apply toward repayment of benefits received in violation of the
5281	780-hour reemployment limitation.
5282	(f) The State University System may reemploy a retired
5283	member as an adjunct faculty member or as a participant in a
5284	phased retirement program within the State University System
5285	after the retired member has been retired for 1 calendar month,
5286	in accordance with s. 121.021(39). Any retired member who is
5287	reemployed within 1 calendar month after retirement shall void
5288	his or her application for retirement benefits. The State
5289	University System is subject to the retired contribution
5290	required in paragraph (g), as appropriate. A retired member may
5291	be reemployed as an adjunct faculty member or a participant in a
5292	phased retirement program for no more than 780 hours during the
5293	first 12 months of his or her retirement. Any retired member
5294	reemployed for more than 780 hours during his or her first 12
5295	months of retirement shall give timely notice in writing to his
5296	or her employer and to the division departmentof the date he or
5297	she will exceed the limitation. The division departmentshall
5298	suspend his or her retirement benefits for the remainder of his
5299	or her first 12 months of retirement. Any person employed in
5300	violation of this paragraph and any employing agency which
5301	knowingly employs or appoints such person without notifying the
5302	division departmentto suspend retirement benefits shall be
5303	jointly and severally liable for reimbursement to the retirement
5304	trust fund of any benefits paid during the reemployment
5305	limitation period. To avoid liability, such employing agency
5306	shall have a written statement from the retiree that he or she
5307	is not retired from a state-administered retirement system. Any
5308	retirement benefits received by a retired member while
5309	reemployed in excess of 780 hours during his or her first 12
5310	months of retirement shall be repaid to the Retirement System
5311	Trust Fund, and retirement benefits shall remain suspended until
5312	repayment is made. Benefits suspended beyond the end of the
5313	retired member's first 12 months of retirement shall apply
5314	toward repayment of benefits received in violation of the 780-
5315	hour reemployment limitation.
5316	(g) The employment by an employer of any retiree of a
5317	state-administered retirement system shall have no effect on the
5318	average final compensation or years of creditable service of
5319	such retiree. Prior to July 1, 1991, upon employment of any
5320	person, other than an elected officer as provided in s. 121.053,
5321	who has been retired under any state-administered retirement
5322	program, the employer shall pay retirement contributions in an
5323	amount equal to the unfunded actuarial accrued liability portion
5324	of the employer contribution which would be required for a
5325	regular member of the Florida Retirement System. Effective July
5326	1, 1991, contributions shall be made as provided in s. 121.122
5327	for renewed membership.
5328	(h) The limitations of this subsection apply to
5329	reemployment in any capacity with an "employer" as defined in s.
5330	121.021(10), irrespective of the category of funds from which
5331	the person is compensated.
5332	Section 91. Section 238.32, Florida Statutes, is amended
5333	to read:
5334	238.32 Service credit in disputed cases.--The division
5335	Department of Management Servicesmay in its discretion allow or
5336	deny a member service credit in disputed or doubtful cases for
5337	employment in Florida and out-of-state schools in order to serve
5338	the best interests of the state and the member, subject to the
5339	membership dates set forth in s. 238.06(4).
5340	Section 92. Subsection (4) of section 650.02, Florida
5341	Statutes, is amended to read:
5342	650.02 Definitions.--For the purpose of this chapter:
5343	(4) The term "state agency" means the Division of
5344	Retirement of the State Board of Administration Department of
5345	Management Services.
5346	Section 93. Subsection (1) of section 650.06, Florida
5347	Statutes, is amended to read:
5348	650.06 Social Security Contribution Trust Fund.--
5349	(1) There is hereby established in the State Treasury to
5350	be administered by the State Board of Administrationa special
5351	fund to be known as the "Social Security Contribution Trust
5352	Fund." Such fund shall consist of and there shall be deposited
5353	in such fund:
5354	(a) All contributions, interest, and penalties collected
5355	under ss. 650.04 and 650.05;
5356	(b) All moneys appropriated thereto under this chapter;
5357	(c) Any property or securities and earnings thereof
5358	acquired through the use of moneys belonging to the fund;
5359	(d) Interest earned upon any moneys in the fund; and
5360	(e) All sums recovered upon the bond of the custodian or
5361	otherwise for losses sustained by the fund and all other moneys
5362	received for the fund from any other source. All moneys in the
5363	fund shall be mingled and undivided. Subject to the provisions
5364	of this chapter, the state agency is vested with full power,
5365	authority and jurisdiction over the fund, including all moneys
5366	and property or securities belonging thereto, and may perform
5367	any and all acts whether or not specifically designated, which
5368	are necessary to the administration thereof and are consistent
5369	with the provisions of this chapter.
5370	Section 94. The Department of Management Services may
5371	contract with the State Board of Administration to administer
5372	ss. 112.05, 121.1815, 238.171, 250.22, and 112.351-112.362,
5373	Florida Statutes.
5374	Section 95. The Division of Retirement of the State Board
5375	of Administration is a state agency for the purpose of making
5376	payments under the retirement plans and other benefit programs
5377	administered by the board and the Division of Retirement. The
5378	Department of Financial Services shall issue benefit payments to
5379	persons or governmental entities eligible for such payments
5380	under the retirement plans and other benefit programs
5381	administered by the board and the Division of Retirement. The
5382	board is authorized to requisition the appropriate amounts from
5383	trust funds in the State Treasury established for this purpose.
5384	Section 96. This act shall take effect July 1, 2004.